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 Related Quotes
 Jewett-cameron Trading Companyhares  5.48   0.0125  0.23%
 Enter Symbols: 
Jewett-Cameron Announces 2nd Quarter Financial Results

NORTH PLAINS, Ore., April 15, 2024 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2024 ended February 29, 2024.

Sales for the second quarter of fiscal 2024 were $8.23 million compared to sales of $8.14 million for the second quarter of fiscal 2023. Loss from operations was ($726,687) compared to a loss of ($1,210,085) for the quarter ended February 28, 2023. Net loss was ($534,145), or ($0.15) per share compared to a net loss of ($972,038), or ($0.28) per share, in the year-ago quarter.

For the six months ended February 29, 2024, sales totaled $18.0 million compared to sales of $20.7 million for the six months ended February 28, 2023. Loss from operations was ($1,515,911) compared to a loss of ($1,216,883) for the six months ending February 28, 2023. After a one-time gain from a favorable arbitration settlement, net income of the current six months was $757,395, or $0.22 per share, compared to a net loss of ($1,045,798), or ($0.30) per share, for the first six months of fiscal 2023.

"Consumer spending continues to be negatively affected by inflation and general economic pressures," said CEO Chad Summers. "In response, we are focusing on innovation and growing our core product lines of fencing, pet containment and the new MyEcoWorld® line of sustainable bag products. These efforts include the addition of new customers and complementary new products, while working to identify cost reductions and improving our margins."

As of February 29, 2024, the Company's cash position was approximately $1.15 million, and there was no borrowing against our bank line of credit. We requested the bank reduce our line of credit from $10 million to $5 million as our forecasts do not anticipate the need to borrow above that level. Our bank has decided that we do not currently meet their criteria for a line of credit, and the revised $5 million line will expire on June 30, 2024. We are currently in negotiations with other lenders, including asset based lenders, on establishing a new line of credit of $5 million or less. We anticipate having one or more new funding and banking arrangements in place by May 31, 2024.

Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. Jewett-Cameron Company's business consists of the manufacturing and distribution of patented and patent pending specialty metal products, wholesale distribution of wood products, and seed processing and sales. The Company's brands include Lucky Dog®, for pet products; Adjust-A-Gate®, Fit-Right®, Perimeter Patrol®, Infinity Euro Fence, and Lifetime Post® for gates and fencing; and Early Start, Spring Gardner™, Greenline®, and Weatherguard for greenhouses. Additional information about the Company and its products can be found the Company's website at www.jewettcameron.com.

Forward-looking Statements

The information in this release contains certain forward-looking statements that anticipate future trends and events. These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks, including but not limited to, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change in the Company's industry, and other factors detailed in the Company's SEC filings. Accordingly, actual results may differ, possibly materially, from predictions contained herein.

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



February 29,

2024


August 31,

2023





ASSETS






Current assets






Cash and cash equivalents

$

1,149,316


$

83,696

Accounts receivable, net of allowance of $0 (August 31, 2023 - $0)


4,676,317



5,634,924

Inventory, net of allowance of $410,325 (August 31, 2023 - $497,884)


17,576,787



18,339,048

Prepaid expenses


796,393



630,788







Total current assets


24,198,813



24,688,456







Property, plant and equipment, net


4,450,788



4,655,427







Intangible assets, net


112,639



134,845







Deferred tax assets


226,148



319,875







Total assets

$

28,988,388


$

29,798,603







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












Accounts payable

$

2,190,006


$

2,181,194

Bank indebtedness


-



1,259,259

Income taxes payable


172,722



147,629

Accrued liabilities


1,738,874



2,113,194







Total liabilities


4,101,602



5,701,276







Stockholders' equity






Capital stock

Authorized

21,567,564 common shares, no par value

10,000,000 preferred shares, no par value

Issued

3,504,802 common shares (August 31, 2023 - 3,498,899)


826,861



825,468

Additional paid-in capital


795,726



765,055

Retained earnings


23,264,199



22,506,804







Total stockholders' equity


24,886,786



24,097,327







Total liabilities and stockholders' equity

$

28,988,388


$

29,798,603

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Month

Periods to the end

of February


Six Month

Periods to the end

of February


2024

2023


2024

2023











SALES

$

8,229,192

$

8,143,421


$

18,035,033

$

20,720,921











COST OF SALES


6,164,676


6,222,879



14,014,436


15,940,679











GROSS PROFIT


2,064,516


1,920,542



4,020,597


4,780,242











OPERATING EXPENSES










Selling, general and administrative expenses


967,426


1,096,090



1,915,907


1,922,897

Depreciation and amortization


91,039


88,079



188,943


199,615

Wages and employee benefits


1,732,738


1,946,458



3,431,658


3,874,613



2,791,203


3,130,627



5,536,508


5,997,125











(Loss) income from operations


(726,687)


(1,210,085)



(1,515,911)


(1,216,883)











OTHER ITEMS










Other income


-


-



2,450,000


-

Interest income (expense)


19,819


(114,530)



12,964


(201,082)

(Loss) gain on sale of assets


(568)


-



89,087


-



19,251


(114,530)



2,552,051


(201,082)











(Loss) income before income taxes


(707,436)


(1,324,615)



1,036,140


(1,417,965)











Income tax recovery (expense)


173,291


352,577



(278,745)


372,167











Net (loss) income


(534,145)

$

(972,038)



757,395

$

(1,045,798)











Basic (loss) earnings per common share

$

(0.15)

$

(0.28)



0.22

$

(0.30)











Diluted (loss) earnings per common share

$

(0.15)

$

(0.28)



0.22

$

(0.30)











Weighted average number of common shares outstanding:










Basic


3,504,348


3,498,899



3,501,623


3,497,543

Diluted


3,504,348


3,498,899



3,501,623


3,497,543











JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Six Month Period

at the end of February,


Six Month Period

at the end of February,


2024


2023







CASH FLOWS FROM OPERATING ACTIVITIES






Net income (loss)

$

757,395


$

(1,045,798)

Items not involving an outlay of cash:






Depreciation and amortization


188,943



199,615

Stock-based compensation expense


32,064



23,303

Gain on sale of property, plant and equipment


(89,087)



-

Write-down of intangible assets


21,790



-

Deferred income taxes


93,727



(372,992)







Changes in non-cash working capital items:






Decrease in accounts receivable


958,607



2,930,390

Decrease (increase) in inventory


762,261



(2,447,334)

(Increase) decrease in prepaid expenses


(165,605)



318,009

(Decrease) in accounts payable and accrued liabilities


(365,508)



(1,020,411)

Decrease (increase) in prepaid income taxes


-



825

Increase in income taxes payable


25,093



-







Net cash provided by (used in) operating activities


2,219,680



(1,414,393)







CASH FLOWS FROM INVESTING ACTIVITIES






Proceeds on sale of property, plant and equipment


105,199



-

Purchase of property, plant and equipment


-



(301,681)







Net cash used in investing activities


105,199



(301,681)







CASH FLOWS FROM FINANCING ACTIVITIES






(Repayment) proceeds from bank indebtedness


(1,259,259)



1,500,000







Net cash provided by (used in) financing activities


(1,259,259)



1,500,000







Net increase (decrease) in cash


1,065,620



(216,074)







Cash, beginning of period


83,696



484,463







Cash, end of period

$

1,149,316


$

268,389

Contact: Chad Summers, President & CEO, (503) 647-0110

Cision src=https://c212.net/c/img/favicon.png?sn=LA88212&sd=2024-04-15 View original content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-2nd-quarter-financial-results-302117151.html

SOURCE Jewett-Cameron Trading Company Ltd.

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