PR Newswire | Apr 14, 2021 04:20PM EDT

04/14 15:20 CDT

Jewett-Cameron Announces 2nd Quarter Financial Results NORTH PLAINS, Ore., April 14, 2021

NORTH PLAINS, Ore., April 14, 2021 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the second quarter and six month periods of fiscal 2021 ended February 28, 2021.

Sales for the second quarter of fiscal 2021 totaled $10.46 million compared to sales of $7.62 million for the second quarter of fiscal 2020. Loss from operations was ($63,162) compared to a loss of ($163,020) for the quarter ended February 29, 2020. Net loss was ($53,164), or ($0.02) per share, compared to a net loss of ($174,262), or ($0.05) per share, in the year-ago quarter.

For the six months ended February 28, 2021, sales totaled $20.8 million compared to sales of $14.7 million for the six months ended February 29, 2020. Income from operations was $560,621 compared to income of $536,634 for the six months ending in February 29, 2020. Net income was $435,363, or $0.12 per share, compared to net loss of ($180,884), or ($0.05) per share, in the first six months of fiscal 2020.

"Our increased sales in the current six months reflect the success of our ongoing corporate strategy to expand our sales channels and introduce new products," said CEO Charlie Hopewell. "We remain committed to this strategy. However, COVID-19 issues continue to cause uncertainly for the remainder of fiscal 2021. The pandemic has also caused a shortage of shipping containers and seaborne shipping space. This is now causing some delivery delays of our China manufactured products and is increasing our shipping costs, which may continue through the remainder of fiscal 2021".

As of February 28, 2021, the Company's cash position was approximately $2.89 million, and there was no borrowing against its $3.0 million line of credit. The Company has historically utilized its cash position by implementing share repurchase programs as an effective method of enhancing shareholder value.

Jewett-Cameron Trading Company is a holding company that, through its subsidiaries (Jewett-Cameron Companies), operate out of facilities located in North Plains, Oregon. Those businesses consist 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 Gardener, 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)

February 28, August 31, 2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 2,891,734 $ 3,801,037

Accounts receivable, net of allowance of $Nil (August 31, 2020 - $Nil) 5,089,561 6,274,426

Inventory, net of allowance of $250,000 (August 31, 2020 - $65,000) 10,035,546 9,198,146

Prepaid expenses 1,498,213 1,036,128

Prepaid income taxes 307,433 -

Total current assets 19,822,487 20,309,737

Property, plant and equipment, net 3,411,132 2,967,565

Intangible assets, net 539 659

Total assets $ 23,234,158 $ 23,277,961

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 756,881 $ 1,095,061

Current portion of notes payable 529,439 342,326

Income taxes payable - 40,596

Accrued liabilities 1,929,599 2,016,300

Total current liabilities 3,215,919 3,494,283

Long-term liabilities

Notes payable 151,268 338,381

Deferred tax liability 12,872 96,952

Total liabilities 3,380,059 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

3,489,161 common shares (August 31, 2020 - 3,481,162) 823,171 821,284

Additional paid-in capital 618,707 618,707

Retained earnings 18,412,221 17,908,354

Total stockholders' equity 19,854,099 19,348,345

Total liabilities and stockholders' equity $ 23,234,158 $ 23,277,961

JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)

Three Month Six Month Periods at the Periods at the end of February end of February

2021 2020 2021 2020

SALES $ 10,460,355 $ 7,621,927 $ 20,776,639 $ 14,677,105

COST OF SALES 7,848,779 5,616,672 15,202,164 10,623,507

GROSS PROFIT 2,611,576 2,005,255 5,574,475 4,053,598

OPERATING EXPENSES

Selling, general and 895,974 763,910 1,590,603 1,412,920administrative expenses

Depreciation and 55,290 58,063 105,818 106,211amortization

Wages and employee 1,723,474 1,346,302 3,317,433 2,708,361benefits

2,674,738 2,168,275 5,013,854 4,227,492

(Loss) income from (63,162) (163,020) 560,621 (173,894)operations

OTHER ITEMS

Gain on sale ofproperty, plant - 400 - 400and equipment

Interest and other 3,000 6,584 6,000 18,198income

3,000 6,984 6,000 18,598

(Loss) income before income (60,162) (156,036) 566,621 (155,296)taxes

Income tax recovery 6,998 (18,226) (131,258) (25,588)(expense)

Net (loss) income $ (53,164) (174,262) $ 435,363 $ (180,884)

Basic (loss) earnings per $ (0.02) (0.05) $ 0.12 $ (0.05)common share

Diluted (loss) earnings per $ (0.02) (0.05) $ 0.12 $ (0.05)common share

Weighted average number ofcommon shares outstanding:

Basic 3,486,495 3,562,630 3,483,814 3,811,956

Diluted 3,486,495 3,562,630 3,483,814 3,811,956

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,

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) $ 435,363 $ (180,884)

Items not involving an outlay of cash:

Depreciation and amortization 105,818 106,211

(Gain) on sale of property, plant and equipment - (400)

Deferred income taxes (84,080) 24,592

Changes in non-cash working capital items:

Decrease in accounts receivable 1,184,865 135,288

(Increase) in inventory (837,400) (870,743)

Decrease in note receivable - 300

(Increase) in prepaid expenses (462,085) (474,253)

(Increase) in prepaid income taxes (307,433) (146,582)

(Decrease) in accounts payable and (424,881) (351,259) accrued liabilities

Net cash used in operating activities (389,833) (1,757,730)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (519,470) (152,403)

Proceeds from sale of property, plant and equipment - 400

Net cash used in investing activities (519,470) (152,003)

CASH FLOWS FROM FINANCING ACTIVITIES

Redemption of common stock - (3,867,046)

Net cash used in financing activities - (3,867,046)

Net decrease in cash (909,303) (5,776,779)

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

Cash, end of period $ 2,891,734 $ 3,875,531

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

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SOURCE Jewett-Cameron Trading Company Ltd.