Jewett-Cameron Reports Fiscal 2024 Full Year and Fourth Quarter Operational and Financial Results
Rhea-AI Summary
Jewett-Cameron Trading Company reported fiscal 2024 results with Q4 revenue of $13.2 million, down from $14.6 million in Q4 2023. Full-year revenue was $47.1 million compared to $54.3 million in FY 2023. The company experienced growth in pet and fence products, offset by the termination of seed cleaning operations. Net income for FY 2024 was $0.7 million ($0.21 per share) compared to a net loss of $(0.0) million in FY 2023. Cash balance improved to $4.9 million, with no long-term debt. The company implemented strategic initiatives including new supply partnerships and product launches, while listing its 11.6-acre Hillsboro property for $9 million.
Positive
- Cash balance increased significantly to $4.9 million from $0.1 million YoY
- Received one-time settlement payment of $2.45 million from arbitration dispute
- Operating expenses reduced to $10.7 million from $11.8 million YoY
- Improved inventory management, reducing balance to $13.2 million from $18.3 million
- No long-term debt on balance sheet
Negative
- Q4 2024 revenue declined to $13.2 million from $14.6 million YoY
- FY 2024 revenue decreased to $47.1 million from $54.3 million YoY
- Gross profit margins dropped to 14.5% in Q4 2024 from 20.9% in Q4 2023
- FY 2024 gross margins declined to 18.8% from 22.6% YoY
- One-time inventory writedowns of $570,000 impacted profitability
News Market Reaction – JCTC
In the trading session that priced this news, JCTC gained 7.04%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
NORTH PLAINS, Ore., Nov. 20, 2024 (GLOBE NEWSWIRE) -- Jewett-Cameron Trading Company Ltd. (Nasdaq: JCTC), a company committed to innovative products that enrich outdoor spaces, today announced operational and financial results for the fiscal 2024 full year and fourth quarter for the period ended August 31, 2024.
Recent Financial Operational Highlights
- Experienced year-over-year growth in Q4 2024 in several product categories within its pet, fence and other segment as well as its industrial wood products segment. This growth was offset by the termination of the Company’s seed cleaning operations and a decrease in the Company’s lower margin wood fence business. Overall, Q4 2024 revenue was
$13.2 million compared to$14.6 million in Q4 2023. - Created and launched a scalable process for Lifetime Steel Post® (LTP) displayers and refresh of Adjust-A-Gate® merchandisers for Home Depot and Lowes. First initiated in May 2024 in one region, the LTP displayers quickly expanded into over 100 stores in multiple regions by the end of August with more regions scheduled to be set up in fiscal year 2025. With the Company’s increased emphasis on appropriate product placement, it expects this growth will continue to increase throughout the year and likely provide greater contribution to future growth.
- Partnered with Continental Sales & Marketing, Inc., a nationally recognized logistics and supply chain services company, to expand distribution with key national and regional home improvement retailers across its various product lines with a particular focus on the metal and composite Jewett-Cameron fence products.
- Completed a significant step forward in its strategic plan to expand and diversify the Company’s supply sourcing adding three new supply partners. With the implementation of the new multi-source, multi-country, strategic sourcing plan, the Company is less dependent on one specific supply source for any single product or component and believes it will mitigate the burden of tariffs placed on various steel products coming into the U.S. from China and other countries.
- Extensive internal development of new products and product line extensions planned for the next twelve months, including a new and improved Lucky Dog® Chain Link Kennel, a new low-profile, no-sag Adjust-A-Gate® Unlimited gate kit, and enhancements to the Company’s Lifetime Steel Post®, Euro Fence composite fence product, as well as improvements to the Adjust-A-Gate® Original.
- Listed for sale the Company’s 11.6-acre property based in Hillsboro, Oregon that was previously a seed processing and storage facility at a current listing price of
$9 million (1). The property currently has a book value of$566,022 and is unencumbered by any loans. - Updated the Company’s Nasdaq ticker symbol from “JCTCF” to “JCTC” to remove confusion surrounding the location of the Company’s operations, which have always been, and continue to be, located in Oregon.
- Retained Lytham Partners to lead a strategic investor relations and shareholder communication program. The Company recently participated in Lytham Fall 2024 Investor Conference.
[1] This is the current asking price, and there is no guarantee the property will sell for this amount. If we are able to complete a sale, the net proceeds will be reduced by brokers’ commissions, expenses related to the sale, and taxes.
Management Discussion
“During the past two years, the team at Jewett-Cameron has successfully navigated through the aftermath of the pandemic, which initially provided a strong boost to our fence and pet product categories due to the surge in home remodels and influx in pet ownership, but thereafter resulted in higher channel inventory levels and a return to more normalized demand,” commented Chad Summers, CEO of Jewett-Cameron. “We believe we are well positioned to drive profitable growth with the implementation of a number of key strategic initiatives aimed at increasing revenue of our highest margin fence and pet products; improving our supply chain reliability and overall operational efficiencies; and through the launch of a series of innovative new products. We also made the strategic decision to exit certain non-core operations which has led to the listing for sale of our 11.6-acre seed cleaning facility and property.”
“With these strategic initiatives underway, a talented and committed leadership team, and a clear vision for the future direction of Jewett-Cameron in place, the timing is appropriate to move beyond our historical roots and broaden our exposure within the investment community and work towards increasing shareholder value. We have begun a process of improving transparency and our interaction with investors through conference participation, enhanced press releases, an improved website, new corporate presentations, and an updated trading symbol. We believe continued execution of our strategic plan, coupled with enhanced visibility to our progress, will have a positive impact on our shares, which currently trade at a significant discount to book value.”
“The operational pillars of Jewett-Cameron remain strong. We have exceptional quality products, an elite customer base that includes the world’s largest home improvement retailers, and a team that is dedicated to continuously delivering value for our customers. I look forward to delivering on our growth and financial objectives in fiscal 2025 and beyond,” Summers concluded.
Financial Results
Revenue for Q4 2024 was
Revenue for FY 2024 was
Gross profit margins for Q4 2024 were
For FY 2024, operating expenses were
During the first quarter of fiscal 2024, the Company successfully settled an arbitration dispute with a former distributor and received a one-time cash payment of
Net loss for Q4 2024 was
As part of the Company’s initiatives to improve working capital, the inventory balances decreased to
Conference Call Details
Date and Time: Wednesday, November 20, 2024, at 4:30 p.m. Eastern time
Call-in Information: Interested parties can access the conference call by dialing (844) 836-8745 for United States callers or +1 (412) 317-6797.
Webcast Information: The webcast will be accessible live and archived at https://app.webinar.net/pR0mNLJElyz, and accessible on the Investors section of the Company's website at https://jewettcameron.com/pages/investor-relations.
Replay: A teleconference replay of the call will be available until November 27, 2024 at (877) 344-7529 for U.S. callers or +1 (412) 317-0088 for international callers and using replay access code 4989201.
About Jewett-Cameron Trading Company Ltd. (JCTC)
Jewett-Cameron Trading Company is a holding company that, through its subsidiaries, operates out of facilities located in North Plains, Oregon. The Company's businesses consist 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 on the Company's website at www.jewettcameron.com.
Forward-looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words like “plans”, “expects”, “aims”, “believes”, “projects”, “anticipates”, “intends”, “estimates”, “will”, “should”, “could” and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict, including but not limited to, the fact that our business is highly competitive, we are continually seeking ways to expand our business, we may seek additional financing or other ways to expand operations and improve margins, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change, customer concentration risk, supply chain delays, governmental and regulatory risks, as well as the other risk factors that are set forth in more detail in our Annual Report on Form 10-K and other documents filed with the SEC. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We may not actually achieve the goals or plans described in our forward-looking statements, and investors should not place undue reliance on these statements. Any forward-looking statements speak only as of the date on which they are made and we undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise, except as required by law.
Investor Contact:
Robert Blum
Lytham Partners
Phone: (602) 889-9700
JCTC@lythampartners.com
| JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) AS OF AUGUST 31 | ||||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 4,853,367 | $ | 83,696 | ||||
| Accounts receivable, net of allowance of | 3,668,815 | 5,634,924 | ||||||
| Inventory, net of allowance of | 13,157,243 | 18,339,048 | ||||||
| Asset held for sale | 566,022 | — | ||||||
| Prepaid expenses | 891,690 | 630,788 | ||||||
| Prepaid income taxes | 50,326 | — | ||||||
| Total current assets | 23,187,463 | 24,688,456 | ||||||
| Property, plant and equipment, net | 3,849,800 | 4,655,427 | ||||||
| Intangible assets, net | 112,222 | 134,845 | ||||||
| Deferred tax assets | 341,029 | 319,875 | ||||||
| Total assets | $ | 27,490,514 | $ | 29,798,603 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,237,988 | $ | 2,181,194 | ||||
| Bank indebtedness | — | 1,259,259 | ||||||
| Income taxes payable | — | 147,629 | ||||||
| Accrued liabilities | 1,401,382 | 2,113,194 | ||||||
| Total liabilities | 2,639,370 | 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 | 23,228,557 | 22,506,804 | ||||||
| Total stockholders’ equity | 24,851,144 | 24,097,327 | ||||||
| Total liabilities and stockholders’ equity | $ | 27,490,514 | $ | 29,798,603 | ||||
| JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31 | ||||||||
| 2024 | 2023 | |||||||
| SALES | $ | 47,145,176 | $ | 54,289,303 | ||||
| COST OF SALES | 38,261,532 | 42,042,178 | ||||||
| GROSS PROFIT | 8,883,644 | 12,247,125 | ||||||
| OPERATING EXPENSES | ||||||||
| Selling, general and administrative | 3,887,769 | 3,973,055 | ||||||
| Depreciation and amortization | 352,866 | 397,922 | ||||||
| Wages and employee benefits | 6,413,419 | 7,445,464 | ||||||
| 10,654,054 | 11,816,441 | |||||||
| (Loss) income from operations | (1,770,410 | ) | 430,684 | |||||
| OTHER ITEMS | ||||||||
| Other income | 2,450,000 | — | ||||||
| Gain on sale of property, plant and equipment | 90,787 | 70,250 | ||||||
| Interest income (expense) | 33,446 | (458,463 | ) | |||||
| 2,574,233 | (388,213 | ) | ||||||
| Income before income taxes | 803,823 | 42,471 | ||||||
| Income taxes | ||||||||
| Current | (103,224 | ) | (357,974 | ) | ||||
| Deferred recovery | 21,154 | 294,877 | ||||||
| Net income (loss) for the year | $ | 721,753 | $ | (20,626 | ) | |||
| Basic earnings (loss) per common share | $ | 0.21 | $ | (0.01 | ) | |||
| Diluted earnings (loss) per common share | $ | 0.21 | $ | (0.01 | ) | |||
| Weighted average number of common shares outstanding: | ||||||||
| Basic | 3,503,221 | 3,498,236 | ||||||
| Diluted | 3,503,221 | 3,498,236 | ||||||
| JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31 | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income (loss) for the year | $ | 721,753 | $ | (20,626 | ) | |||
| Items not affecting cash: | ||||||||
| Depreciation and amortization | 352,866 | 397,922 | ||||||
| Stock-based compensation expense | 32,064 | 23,303 | ||||||
| Gain on sale of property, plant and equipment | (90,787 | ) | (70,250 | ) | ||||
| Deferred income taxes | (21,154 | ) | (294,877 | ) | ||||
| Changes in non-cash working capital items: | ||||||||
| Decrease in accounts receivable | 1,966,109 | 1,556,722 | ||||||
| Decrease in inventory | 5,181,805 | 2,293,265 | ||||||
| (Increase) decrease in prepaid expenses | (260,902 | ) | 481,787 | |||||
| (Increase) decrease in prepaid income taxes | (50,326 | ) | 208,963 | |||||
| (Decrease) increase in accounts payable and accrued liabilities | (1,655,018 | ) | 872,302 | |||||
| (Decrease) increase in income taxes payable | (147,629 | ) | 147,629 | |||||
| Net cash and cash equivalents provided by operating activities | 6,028,781 | 5,596,140 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Increase in intangible assets | — | (102,500 | ) | |||||
| Proceeds on sale of property, plant and equipment | 110,689 | 70,250 | ||||||
| Purchase of property, plant and equipment | (110,540 | ) | (223,916 | ) | ||||
| Net cash and cash equivalents provided by (used in) investing activities | 149 | (256,166 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Repayment of bank indebtedness | (1,259,259 | ) | (5,740,741 | ) | ||||
| Net cash and cash equivalents used in financing activities | (1,259,259 | ) | (5,740,741 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 4,769,671 | (400,767 | ) | |||||
| Cash and cash equivalents, beginning of year | 83,696 | 484,463 | ||||||
| Cash and cash equivalents, end of year | $ | 4,853,367 | $ | 83,696 | ||||
