PR Newswire | Jan 14, 2021 04:25PM EST

01/14 15:25 CST

Jewett-Cameron Announces 1st Quarter Financial Results NORTH PLAINS, Ore., Jan. 14, 2021

NORTH PLAINS, Ore., Jan. 14, 2021 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2021 ended November 30, 2020.

Sales for the first quarter of fiscal 2021 totaled $10.3 million compared to sales of $7.1 million for the first quarter of fiscal 2020. Net income for the current quarter was $488,527, or $0.14 per share, compared to a net loss of ($6,621), or ($0.00) per share, in the year-ago quarter.

"We continue to see strong demand from the DIY and pet product sectors which is elevating our brand and market presence. We feel the pandemic has bolstered our market penetration and accelerated our strategic campaign to rebrand our products to connect directly with consumers and expand our presence in more sales channels" said CEO Charlie Hopewell. "Even though the economic effects of the ongoing COVID-19 pandemic are uncertain, we remain committed to this strategy in fiscal 2021."

As of November 30, 2020, the Company's cash position was approximately $5.8 million, and there was no borrowing against its $3.0 million line of credit.

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, Animal House and AKC licensed products in the expanding pet market; fencing products under the Adjust-A-Gates, Fit-Right, Perimeter Patrol, and LIFETIME POST(tm) 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.

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

November 30, August 31, 2020 2020

ASSETS

Current assets

Cash and cash equivalents $ 5,839,952 $ 3,801,037

Accounts receivable, net of allowance of $Nil 4,246,957 6,274,426(August 31, 2020 - $Nil)

Inventory, net of allowance of $65,000 (August 31, 9,421,159 9,198,1462020 - $65,000)

Prepaid expenses 839,873 1,036,128

Total current assets 20,347,941 20,309,737

Property, plant and equipment, net 3,101,343 2,967,565

Intangible assets, net 599 659

Total assets $ 23,449,883 $ 23,277,961

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 974,176 $ 1,095,061

Current portion of notes payable 415,988 342,326

Income taxes payable 219,636 40,596

Accrued liabilities 1,682,324 2,016,300

Total current liabilities 3,292,124 3,494,283

Long-term liabilities

Notes payable (note 8) 264,719 338,381

Deferred tax liability 56,168 96,952

Total liabilities 3,613,011 3,929,616

Stockholders' equity

Capital stock

Authorized

21,567,564 common shares, without par value

10,000,000 preferred shares, without par value

Issued

3,481,162 common shares (August 31, 2020 - 821,284 821,2843,481,162)

Additional paid-in capital 618,707 618,707

Retained earnings 18,396,881 17,908,354

Total stockholders' equity 19,836,872 19,348,345

Total liabilities and stockholders' equity $ 23,449,883 $ 23,277,961

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months Three Months

Ended Ended

November 30, November 30,

2020 2019

SALES $ 10,316,284 $ 7,055,178

COST OF SALES 7,353,385 5,006,835

GROSS PROFIT 2,962,899 2,048,343

OPERATING EXPENSES

Selling, general and administrative expenses 694,628 649,010

Depreciation and amortization 50,529 48,148

Wages and employee benefits 1,593,959 1,362,059

2,339,116 2,059,217

Income from operations 623,783 (10,874)

OTHER ITEMS

Interest and other income 3,000 11,615

Income before income taxes 626,783 741

Income tax expense (138,256) (7,362)

Net income (loss) $ 488,527 $ (6,621)

Basic earnings per common share $ 0.14 $ (0.00)

Diluted earnings per common share $ 0.14 $ (0.00)

Weighted average number of common sharesoutstanding:

Basic 3,481,162 3,971,282

Diluted 3,481,162 3,971,282

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Months Three Months

Ended Ended

November 30, November 30,

2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 488,527 $ (6,621)

Items not involving an outlay of cash:

Depreciation and amortization 50,529 48,148

Deferred income taxes (40,784) (14,101)

Changes in non-cash working capital items:

Decrease in accounts receivable 2,027,469 671,926

(Increase) in inventory (223,013) (902,321)

Decrease in note receivable - 200

Decrease (increase) in prepaid expenses 196,255 (175,276)

Decrease in accounts payable and accrued (454,861) (297,730)liabilities

Decrease in prepaid income taxes - 21,464

Increase in income taxes payable 179,040 -

Net cash provided by (used by) operating activities 2,223,162 (654,311)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (184,247) (28,750)

Net cash used in investing activities (184,247) (28,750)

Net increase (decrease) in cash 2,038,915 (683,061)

Cash, beginning of period 3,801,037 9,652,310

Cash, end of period $ 5,839,952 $ 8,969,249

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

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SOURCE Jewett-Cameron Trading Company Ltd.