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

Jewett-Cameron Announces Fiscal 2019 Financial Results

NORTH PLAINS, Ore., Nov. 13, 2019 — Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2019.

For the fiscal year ended August 31, 2019, Jewett-Cameron reported sales of $45.4 million and net income of $2,100,452, or $0.50 per shares, compared to sales of $53.9 million and net income of $2,920,639, or $0.66 per share, for fiscal 2018.

Sales for the fourth quarter of fiscal 2019 totaled $11.8 million compared to sales of $11.2 in the prior year’s fourth quarter.

Net income was $532,918, or $0.13 per share, compared to net income of $700,699, or $0.16 per share, in the fourth quarter of fiscal 2018.

“The prolonged wet weather during the spring and early summer across North America delayed the purchase of lawn and garden products,” said CEO Charlie Hopewell. “The poor weather, combined with the increase in US tariffs on many of our Chinese manufactured metal products, were primarily responsible for the decline in our 2019 sales and earnings. However, we were notified in September 2019 that many of our Chinese manufactured products will be exempted from tariffs going forward. This reclassification should help the Company’s products to remain competitive in the marketplace.”

As of August 31, 2019, the Company’s cash position was $9.65 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2019, the Company repurchased for cancellation a total of 345,671 common shares at a cost of $3,061,441, which represents an average price of $8.86 per share. The Board may consider utilizing a portion of the Company’s cash position to repurchase additional shares in the future.

About Jewett-Cameron Trading Company Ltd.

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, seed processing and sales, and sales of industrial tools and clamps. The Company’s brands include Lucky Dog, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and INFINITY Euro fence systems brands; Early Start, Spring Gardner, and Weatherguard for greenhouses; and TrueShade for patio umbrellas, furniture covers and canopies. 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

2019

2018

ASSETS

Current assets

Cash and cash equivalents

$

9,652,310

$

6,097,463

Accounts receivable, net of allowance of $Nil (August 31, 2018 – $Nil)

2,835,952

4,152,492

Inventory, net of allowance of $119,357 (August 31, 2018 – $75,336)

6,377,805

9,803,197

Note receivable

1,197

4,000

Prepaid expenses

393,539

347,251

Prepaid income taxes

223,420

114,310

Total current assets

19,484,223

20,518,713

Property, plant and equipment, net

2,727,406

3,105,260

Intangible assets, net

3,048

3,590

Total assets

$

22,214,677

$

23,627,563

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

410,027

$

377,092

Accrued liabilities

1,312,580

1,795,207

Total current liabilities

1,722,607

2,172,299

Deferred tax liability

61,204

81,853

Total liabilities

1,783,811

2,254,152

Stockholders’ equity

Capital stock

Authorized

21,567,564 common shares, without par value

10,000,000 preferred shares, without par value

Issued

3,971,282 common shares (August 31, 2018 – 4,314,659)

936,903

1,017,908

Additional paid-in capital

618,707

600,804

Retained earnings

18,875,256

19,754,699

Total stockholders’ equity

20,430,866

21,373,411

Total liabilities and stockholders’ equity

$

22,214,677

$

23,627,563

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2019

2018

SALES

$

45,446,362

$

53,923,152

COST OF SALES

35,481,931

42,325,338

GROSS PROFIT

9,964,431

11,597,814

OPERATING EXPENSES

Selling, general and administrative

2,127,296

2,103,899

Depreciation and amortization

191,819

274,065

Wages and employee benefits

4,907,766

4,943,431

7,226,881

7,321,395

Income from operations

2,737,550

4,276,419

OTHER ITEMS

Gain (loss) on sale of property, plant and equipment

105,366

(27,022)

Interest and other income

45,228

30,026

150,594

3,004

Income before income taxes

2,888,144

4,279,423

Income taxes

Current

808,341

1,288,275

Deferred (recovery)

(20,649)

70,509

Net income for the year

$

2,100,452

$

2,920,639

Basic earnings per common share

$

0.50

$

0.66

Diluted earnings per common share

$

0.50

$

0.66

Weighted average number of common shares outstanding:

Basic

4,233,304

4,430,940

Diluted

4,233,304

4,430,940

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2019

2018

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year

$

2,100,452

$

2,920,639

Items not affecting cash:

Depreciation and amortization

191,819

274,065

(Gain) loss on sale of property, plant and equipment

(105,366)

27,022

Deferred income taxes

(20,649)

70,509

Changes in non-cash working capital items:

Decrease (increase) in accounts receivable

1,316,540

(587,437)

Decrease (increase) in note receivable

2,803

(4,000)

Decrease (increase) in inventory

3,425,392

(995,652)

(Increase) decrease in prepaid expenses

(46,288)

248,525

(Increase) in prepaid income taxes

(109,110)

(114,310)

(Decrease) in accounts payable and accrued liabilities

(449,692)

(273,021)

Net cash provided by operating activities

6,305,901

1,566,340

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment

324,675

1,000

Purchase of property, plant and equipment

(32,732)

(110,528)

Net cash used in investing activities

291,943

(109,528)

CASH FLOWS FROM FINANCING ACTIVITIES

Issuance of common stock

18,444

Redemption of common stock

(3,061,441)

(1,271,599)

Net cash used in financing activities

(3,042,997)

(1,271,599)

Net increase in cash

3,554,847

185,213

Cash, beginning of year

6,097,463

5,912,250

Cash, end of year

$

9,652,310

$

6,097,463

Contact: Charlie Hopewell, President & CEO, (503) 647-0110

Cision View original content:http://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2019-financial-results-300957831.html

SOURCE Jewett-Cameron Trading Company Ltd.

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