Jewett-Cameron Announces 1st Quarter Financial Results
01/14/2022 - 04:45 PM
NORTH PLAINS, Ore. , Jan. 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2022 ended November 30, 2021 .
Sales for the first quarter of fiscal 2022 totaled $12.9 million $10.3 million ($391,141) , or ($0.11) per share, compared to net income of $488,527 $0.14
"Our sales quarter over quarter increased by 25% , reflecting the continued strong demand for our products, but higher costs for raw materials and global logistical issues significantly reduced our margins," said CEO Chad Summers . "In response, we have now successfully increased our selling prices with our customers, but these inflationary pressures will remain an issue affecting our margins throughout fiscal 2022."
As of November 30, 2021 , the Company's cash position was approximately $1.2 million $5.0 million $10.0 million
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®, 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)
November 30, 2021
August 31, 2021
ASSETS
Current assets
Cash and cash equivalents
$
1,235,445
$
1,184,313
Accounts receivable, net of allowance of $0 (August 31, 2021 - $0)
5,806,987
7,086,503
Inventory, net of allowance of $250,000 (August 31, 2021 - $250,000)
17,223,927
14,391,365
Prepaid expenses
2,267,341
2,305,820
Prepaid income taxes
355,163
252,958
Total current assets
26,888,863
25,220,959
Property, plant and equipment, net
4,407,548
3,886,543
Intangible assets, net
30,629
30,897
Total assets
$
31,327,040
$
29,138,399
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
2,084,438
$
1,349,677
Bank indebtedness
5,000,000
3,000,000
Accrued liabilities
1,594,834
1,798,088
Total current liabilities
8,679,272
6,147,765
Deferred tax liability
125,834
116,945
Total liabilities
8,805,106
6,264,710
Stockholders' equity
Capital stock
Authorized
21,567,564 common shares, no par value
10,000,000 preferred shares, no par value
Issued
3,492,842 common shares (August 31, 2021 –3,489,161)
824,039
823,171
Additional paid-in capital
725,729
687,211
Retained earnings
20,972,166
21,363,307
Total stockholders' equity
22,521,934
22,873,689
Total liabilities and stockholders' equity
$
31,327,040
$
29,138,399
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months
Ended
November 30,
2021
Three Months
Ended
November 30,
2020
SALES
$
12,917,724
$
10,316,284
COST OF SALES
10,452,861
7,353,385
GROSS PROFIT
2,464,863
2,962,899
OPERATING EXPENSES
Selling, general and administrative expenses
988,288
694,628
Depreciation and amortization
69,638
50,529
Wages and employee benefits
1,874,118
1,593,959
2,932,044
2,339,116
(Loss) income from operations
(467,181)
623,783
OTHER ITEMS
Other income
3,000
3,000
Interest expense
(20,276)
-
Total other items
(17,276)
3,000
(Loss) income before income taxes
(484,457)
626,783
Income tax recovery (expense)
93,316
(138,256)
Net (loss) income
$
(391,141)
$
488,527
Basic (loss) earnings per common share
$
(0.11)
$
0.14
Diluted (loss) earnings per common share
$
(0.11)
$
0.14
Weighted average number of common shares outstanding:
Basic
3,491,103
3,481,162
Diluted
3,491,103
3,481,162
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Months
Ended
November 30,
2021
Three Months
Ended
November 30,
2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income
$
(391,141)
$
488,527
Items not involving an outlay of cash:
Depreciation and amortization
69,638
50,529
Stock-based compensation expense
39,386
-
Deferred income taxes
8,889
(40,784)
Changes in non-cash working capital items:
Decrease in accounts receivable
1,279,516
2,027,469
(Increase) in inventory
(2,832,562)
(223,013)
Decrease in prepaid expenses
38,479
196,255
Increase (decrease) in accounts payable and accrued liabilities
531,507
(454,861)
(Increase) in prepaid income taxes
(102,205)
-
Increase in income taxes payable
-
179,040
Net cash (used by) provided by operating activities
(1,358,493)
2,223,162
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
(590,375)
(184,247)
Net cash used in investing activities
(590,375)
(184,247)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank indebtedness
2,000,000
-
Net cash provided by financing activities
2,000,000
-
Net increase in cash
51,132
2,038,915
Cash, beginning of period
1,184,313
3,801,037
Cash, end of period
$
1,235,445
$
5,839,952
Contact: Chad Summers , President & CEO, (503) 647-0110
https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-301461465.html
SOURCE Jewett-Cameron Trading Company Ltd.
