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Jewett-Cameron Announces Fiscal 2023 Financial Results

Tuesday, November 28, 2023 05:30 PM | PR Newswire via QuoteMedia

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Jewett-Cameron Announces Fiscal 2023 Financial Results
Jewett-Cameron Announces Fiscal 2023 Financial Results

PR Newswire

NORTH PLAINS, Ore. , Nov. 28, 2023 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2023 .

For the fiscal year ended August 31, 2023 , Jewett-Cameron had sales of $54.3 million and a net loss of ($20,626) , or ($0.01) per share, compared to sales of $62.9 million and net income of $1,164,123 , or $0.33 per share, for fiscal 2022.

Sales for the fourth quarter of fiscal 2023 totaled $14,6 million compared to sales of $15.0 million in Q4 2022. Net income in the current fourth quarter was $290,221 , or $0.08 per share, compared to a net loss of ($208,666) , or ($0.06) per share, in the fourth quarter of fiscal 2022.

"Our results were hurt by the extended winter weather across the US which delayed, and then reduced, purchases of our outdoor lines" said CEO Chad Summers . "Inflationary pressures also negatively affected results as consumers reduced their discretionary spending, particularly on home improvement and pet products. During the year, we improved our operations and favorably adjusted key supply and logistic agreements. We are continuing the launch of our new MyEcoWorld® sustainable bag products as a less seasonal product line while firmly focusing on our strengths and core product lines."

The Company has successfully ended cleaning operations at its Jewett-Cameron Seed segment effective August 31, 2023 . Full closure of the facility is expected to be completed by the end of calendar 2023.

As of August 31, 2023 , the Company's cash position was approximately $84 thousand and had borrowed $1.26 million against its $10 million line of credit. Subsequent to the end of the fiscal year, the Company repaid the remaining balance borrowed against the line of credit.

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 and sustainable bag products, and wholesale distribution of wood products. 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; MyEcoWorld® for sustainable bag products; 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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31



2023


2022







ASSETS






Current assets






Cash and cash equivalents

$

83,696


$

484,463

Accounts receivable, net of allowance of $0 (August 31, 2022 - $0)


5,634,924



7,191,646

Inventory, net of allowance of $497,884 (August 31, 2022 - $800,000)


18,339,048



20,632,313

Prepaid expenses


630,788



1,112,575

Prepaid income taxes


-



208,963







Total current assets


24,688,456



29,629,960







Property, plant and equipment, net


4,655,427



4,828,420







Intangible assets, net


134,845



33,358







Deferred tax assets


319,875



24,998







Total assets

$

29,798,603


$

34,516,736







LIABILITIES AND STOCKHOLDERS' EQUITY






Current liabilities












Accounts payable

$

2,181,194


$

1,566,047

Bank indebtedness


1,259,259



7,000,000

Income taxes payable


147,629



-

Accrued liabilities


2,113,194



1,856,039







Total liabilities


5,701,276



10,422,086







Stockholders' equity






Capital stock

Authorized

21,567,564 common shares, no par value

10,000,000 preferred shares, no par value

Issued

3,498,899 common shares (August 31, 2022 – 3,495,342 )


825,468



824,629

Additional paid-in capital


765,055



742,591

Retained earnings


22,506,804



22,527,430







Total stockholders' equity


24,097,327



24,094,650







Total liabilities and stockholders' equity

$

29,798,603


$

34,516,736











JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2023


2022












SALES

$

54,289,303


$

62,901,831







COST OF SALES


42,042,178



49,108,772







GROSS PROFIT


12,247,125



13,793,059







OPERATING EXPENSES






Selling, general and administrative


3,973,055



4,008,166

Depreciation and amortization (notes 4, 5)


397,922



319,617

Wages and employee benefits


7,445,464



7,495,723









11,816,441



11,823,506







Income from operations


430,684



1,969,553







OTHER ITEMS






Gain on sale of property, plant and equipment


70,250



4,526

Other income (loss) (note 14)


-



(230,034)

Interest expense


(458,463)



(163,045)



(388,213)



(388,553)







Income before income taxes


42,471



1,581,000







Income taxes (note 6)






Current


(63,097)



(558,820)

Deferred recovery


-



141,943







Net (loss) income for the year

$

(20,626)


$

1,164,123







Basic (loss) earnings per common share

$

(0.01)


$

0.33







Diluted (loss) earnings per common share

$

(0.01)


$

0.33







Weighted average number of common shares outstanding:






Basic


3,498,236



3,493,807

Diluted


3,498,236



3,493,807

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2023


2022













CASH FLOWS FROM OPERATING ACTIVITIES






Net (loss) income for the year

$

(20,626)


$

1,164,123

Items not affecting cash:






Depreciation and amortization


397,922



319,617

Stock-based compensation expense


23,303



56,838

Gain on sale of property, plant and equipment


(70,250)



(4,526)

Deferred income taxes


(294,877)



(141,943)







Changes in non-cash working capital items:






Decrease (increase) in accounts receivable


1,556,722



(105,143)

Decrease (increase) in inventory


2,293,265



(6,240,948)

Decrease in prepaid expenses


481,787



1,193,245

Decrease in prepaid income taxes


208,963



43,995

Increase in accounts payable and accrued liabilities


872,302



274,321

Increase in income taxes payable


147,629



-







Net cash and cash equivalents provided by (used by) operating activities


5,596,140



(3,440,421)







CASH FLOWS FROM INVESTING ACTIVITIES






Increase in intangible assets


(102,500)



(3,535)

Proceeds on sale of property, plant and equipment


70,250



-

Purchase of property, plant and equipment


(223,916)



(1,255,894)







Net cash and cash equivalents used in investing activities


(256,166)



(1,259,429)







CASH FLOWS FROM FINANCING ACTIVITIES






(Repayment) proceeds from bank indebtedness


(5,740,741)



4,000,000







Net cash and cash equivalents provided by (used in) financing activities


(5,740,741)



4,000,000







Net (decrease) in cash and cash equivalents


(400,767)



(699,850)







Cash and cash equivalents, beginning of year


484,463



1,184,313







Cash and cash equivalents, end of year

$

83,696


$

484,463

Contact: Chad Summers , Chief Executive Officer, (503) 647-0110

Cision View original content: https://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2023-financial-results-301999862.html

SOURCE Jewett-Cameron Trading Company Ltd.

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