Jewett-Cameron Announces 2nd Quarter Financial Results
Rhea-AI Summary
Jewett-Cameron Trading Company (NASDAQ: JCTCF) reported robust sales growth for Q2 and H1 of fiscal 2022. Q2 sales reached $14.06 million, up from $10.46 million year-over-year. Operational income soared to $696,740, reversing a loss of ($63,162) from the previous year. However, H1 results show a net loss of ($121,322), influenced by a $300,000 legal claim expense. The company maintains a solid inventory position and expects to reduce its $9.5 million credit line borrowing in Q3, keeping sufficient working capital for fiscal 2022.
Positive
- Q2 sales increased to $14.06 million, a 34% rise from $10.46 million the previous year.
- Operational income for Q2 rose to $696,740, a significant recovery from a prior loss.
- Inventory levels improved, positioning the company well for upcoming busy seasons.
Negative
- Net loss of ($121,322) for the first six months, a decline from net income of $435,363 in H1 fiscal 2021.
- Legal expenses of $300,000 impacted net income in both the current quarter and six-month periods.
News Market Reaction – JCTCF
In the trading session that priced this news, JCTCF gained 10.88%, reflecting a significant 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., April 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2022 ended February 28, 2022.
Sales for the second quarter of fiscal 2022 totaled
For the six months ended February 28, 2022, sales totaled
Net income in both the current quarter and six month periods was negatively affected by the accrual of
"We are pleased with the sales increases for both the quarter and six months, which continues to reflect the strong demand for our products" said CEO Chad Summers. "We feel well positioned to navigate the rising raw material and shipping costs and continuing worldwide logistic disruptions. Entering the third quarter, we have more months of inventory on hand of our most strategically important products compared to prior years. Our decision to optimize our inventory on hand mitigates the risk of not having enough goods to fulfill expected orders during our traditionally busy Spring and Summer seasons."
As of February 28, 2022, the Company's cash position was approximately
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. | |||||
February 28, 2022 | August 31, 2021 | ||||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | $ | 899,055 | $ | 1,184,313 | |
Accounts receivable, net of allowance of $Nil (August 31, 2021 - | 9,137,254 | 7,086,503 | |||
Inventory, net of allowance of |
18,630,148 | 14,391,365 | |||
Prepaid expenses | 2,559,893 | 2,305,820 | |||
Prepaid income taxes | 258,205 | 252,958 | |||
Total current assets | 31,484,555 | 25,220,959 | |||
Property, plant and equipment, net | 4,638,238 | 3,886,543 | |||
Intangible assets, net | 33,894 | 30,897 | |||
Total assets | $ | 36,156,687 | $ | 29,138,399 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 1,660,664 | $ | 1,349,677 | |
Bank indebtedness | 9,500,000 | 3,000,000 | |||
Accrued liabilities | 2,078,436 | 1,798,088 | |||
Total current liabilities | 13,239,100 | 6,147,765 | |||
Deferred tax liability | 125,834 | 116,945 | |||
Total liabilities | 13,364,934 | 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 | 21,241,985 | 21,363,307 | |||
Total stockholders' equity | 22,791,753 | 22,873,689 | |||
Total liabilities and stockholders' equity | $ | 36,156,687 | $ | 29,138,399 | |
JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) | |||||||||
Three Month Periods at the end of February | Six Month Periods at the end of February | ||||||||
2022 | 2021 | 2022 | 2021 | ||||||
SALES | $ | 14,060,751 | $ | 10,460,355 | $ | 26,978,475 | $ | 20,776,639 | |
COST OF SALES | 10,636,524 | 7,848,779 | 21,089,386 | 15,202,164 | |||||
GROSS PROFIT | 3,424,227 | 2,611,576 | 5,889,089 | 5,574,475 | |||||
OPERATING EXPENSES | |||||||||
Selling, general and administrative expenses | 684,116 | 895,974 | 1,672,403 | 1,590,603 | |||||
Depreciation and amortization | 84,071 | 55,290 | 153,709 | 105,818 | |||||
Wages and employee benefits | 1,959,300 | 1,723,474 | 3,833,418 | 3,317,433 | |||||
2,727,487 | 2,674,738 | 5,659,530 | 5,013,854 | ||||||
Income (loss) from operations | 696,740 | (63,162) | 229,559 | 560,621 | |||||
OTHER ITEMS | |||||||||
Other income | 2,000 | 3,000 | 5,000 | 6,000 | |||||
Interest expense | (30,620) | - | (50,896) | - | |||||
Accrual for legal claim | (300,000) | - | (300,000) | ||||||
(328,620) | 3,000 | (345,896) | 6,000 | ||||||
Income (loss) before income taxes | 368,120 | (60,162) | (116,337) | 566,621 | |||||
Income tax (expense) recovery | (98,300) | 6,998 | (4,985) | (131,258) | |||||
Net income (loss) | $ | 269,820 | $ | (53,164) | $ | (121,322) | $ | 435,363 | |
Basic earnings (loss) per common share | $ | 0.08 | $ | (0.02) | $ | (0.03) | $ | 0.12 | |
Diluted earnings (loss) per common share | $ | 0.08 | $ | (0.02) | $ | (0.03) | $ | 0.12 | |
Weighted average number of common | |||||||||
Basic | 3,492,842 | 3,486,495 | 3,491,969 | 3,483,814 | |||||
Diluted | 3,492,842 | 3,486,495 | 3,491,969 | 3,483,814 | |||||
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, | |||||
2022 | 2021 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net (loss) income | $ | (121,322) | $ | 435,363 | |
Items not involving an outlay of cash: | |||||
Depreciation and amortization | 153,709 | 105,818 | |||
Stock-based compensation expense | 39,386 | - | |||
Deferred income taxes | 8,889 | (84,080) | |||
Changes in non-cash working capital items: | |||||
(Increase) decrease in accounts receivable | (2,050,751) | 1,184,865 | |||
(Increase) in inventory | (4,238,783) | (837,400) | |||
(Increase) in prepaid expenses | (254,073) | (462,085) | |||
Increase (decrease) in accounts payable and accrued liabilities | 591,335 |
(424,881) | |||
(Increase) in prepaid income taxes | (5,247) | (307,433) | |||
Net cash used in operating activities | (5,876,857) | (389,833) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchase of property, plant and equipment | (908,401) | (519,470) | |||
Net cash used in investing activities | (908,401) | (519,470) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Proceeds from bank indebtedness | 6,500,000 | - | |||
Net cash provided by financing activities | 6,500,000 | - | |||
Net decrease in cash | (285,258) | (909,303) | |||
Cash, beginning of period | 1,184,313 | 3,801,037 | |||
Cash, end of period | $ | 899,055 | $ | 2,891,734 | |
Contact: Chad Summers, President & CEO, (503) 647-0110
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SOURCE Jewett-Cameron Trading Company Ltd.