Company: Jewett-Cameron Trading Company Ltd.
Ticker: NASDAQ: JCTC
Sector: Industrials
Investor Contact: Robert Blum

Jewett-Cameron Announces 1st Quarter Financial Results

NORTH PLAINS, Ore., Jan. 16, 2024 — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2024 ended November 30, 2023.

Sales for the first quarter of fiscal 2024 totaled $9.8 million compared to sales of $12.5 million for the first quarter of fiscal 2023. Loss from operations was ($789,224) compared to a loss of ($6,798) in the year ago period. After a one-time gain from a favorable arbitration settlement and other items, net income for the current quarter was $1,291,541, or $0.37 per share, compared to a net loss of ($73,760), or ($0.02) per share, in the year-ago quarter.

“We are continuing to work through the effects of the pandemic and the high rate of inflation that has caused price disruptions and negatively affected consumer buying,” said CEO Chad Summers. “The pet segment continues to lag, but sales of our fencing products are meeting expectations. We officially launched our new MyEcoWorld® line of sustainable bag products in the 4th quarter and sales are growing. With the exception of pet products, we are approaching the desired inventory levels for most of our primary products as we sharpen our focus on our operational strengths and core product lines.”

As of November 30, 2023, the Company’s cash position was $3.5 million, and there was no borrowing against its $10.0 million line of credit. Based on the timing of accounts receivable and the available line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 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 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.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

November 30,

2023

August 31,

2023

ASSETS

Current assets

Cash and cash equivalents

$

3,558,168

$

83,696

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

3,365,430

5,634,924

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

17,513,417

18,339,048

Prepaid expenses

613,358

630,788

Total current assets

25,050,373

24,688,456

Property, plant and equipment, net

4,545,687

4,655,427

Intangible assets, net

112,847

134,845

Deferred tax assets

229,062

319,875

Total assets

$

29,937,969

$

29,798,603

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

2,802,837

$

2,181,194

Bank indebtedness

1,259,259

Income taxes payable

349,745

147,629

Accrued liabilities

1,396,519

2,113,194

Total liabilities

4,549,101

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

3,498,899 common shares (August 31, 2023 – 3,498,899)

825,468

825,468

Additional paid-in capital

765,055

765,055

Retained earnings

23,798,345

22,506,804

Total stockholders’ equity

25,388,868

24,097,327

Total liabilities and stockholders’ equity

$

29,937,969

$

29,798,603

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months

Ended

November 30,

2023

Three Months

Ended

November 30,

2022

SALES

$

9,805,841

$

12,577,500

COST OF SALES

7,849,760

9,717,800

GROSS PROFIT

1,956,081

2,859,700

OPERATING EXPENSES

Selling, general and administrative expenses

948,481

826,807

Depreciation and amortization

97,903

111,536

Wages and employee benefits

1,698,920

1,928,155

2,745,305

2,866,498

Loss from operations

(789,224)

(6,798)

OTHER ITEMS

Gain on sale of property, plant and equipment

89,655

Other income

2,450,000

Interest expense

(6,855)

(86,552)

Total other items

2,532,800

(86,552)

Income (loss) before income taxes

1,743,576

(93,350)

Income tax (expense) recovery

(452,035)

19,590

Net income (loss)

$

1,291,541

$

(73,760)

Basic income (loss) per common share

$

0.37

$

(0.02)

Diluted income (loss) per common share

$

0.37

$

(0.02)

Weighted average number of common shares outstanding:

Basic

3,498,899

3,496,202

Diluted

3,498,899

3,496,202

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months

Ended

November 30,

2023

Three Months

Ended

November 30,

2022

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

$

1,291,541

$

(73,760)

Items not involving an outlay of cash:

Depreciation and amortization

97,903

111,536

Stock-based compensation expense

23,303

Gain on sale of property, plant and equipment

(89,655)

Write-down of intangible assets

21,790

Deferred income taxes

90,813

(20,002)

Changes in non-cash working capital items:

Decrease in accounts receivable

2,269,494

1,954,249

Decrease (increase) in inventory

825,631

(1,370,146)

Decrease in prepaid expenses

17,430

488,461

Decrease in prepaid income taxes

412

(Decrease) in accounts payable and accrued liabilities

(95,032)

(419,811)

Increase in income taxes payable

202,116

Net cash provided by (used by) operating activities

4,632,031

694,242

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment

101,700

Purchase of property, plant and equipment

(36,223)

Net cash provided by (used in) investing activities

101,700

(36,223)

CASH FLOWS FROM FINANCING ACTIVITIES

(Repayment of) proceeds from bank indebtedness

(1,259,259)

600,000

Net cash (used) provided by financing activities

(1,259,259)

600,000

Net increase in cash

3,474,472

1,258,019

Cash, beginning of period

83,696

484,463

Cash, end of period

$

3,558,168

$

1,742,482

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

Cision View original content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-1st-quarter-financial-results-302036292.html

SOURCE Jewett-Cameron Trading Company Ltd.

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