PR Newswire | Nov 29, 2021 04:20PM EST

11/29 15:20 CST

Jewett-Cameron Announces Fiscal 2021 Financial Results NORTH PLAINS, Ore., Nov. 29, 2021

NORTH PLAINS, Ore., Nov. 29, 2021 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2021.

For the fiscal year ended August 31, 2021, Jewett-Cameron had sales of $57.5 million and net income of $3,454,953, or $0.99 per share, compared to sales of $44.9 million and net income of $2,784,525, or $0.77 per share, for fiscal 2020.

Sales for the fourth quarter of fiscal 2021 totaled $15.1 million compared to sales of $14.0 million in Q4 2020. Net income was $605,114, or $0.18 per share, compared to net income of $1,568,436, or $0.43 per share, in the fourth quarter of fiscal 2020.

"The continuing successful implementation of our corporate strategy is reflected in the higher sales and net income for fiscal 2021", said CEO and Chairman Charlie Hopewell. "Our fourth quarter, however, was adversely affected by the ongoing disorder in the worldwide supply chain. This caused some shortages of some of our most popular products and a higher level of backorders, which had a negative effect on our operations and margins. Although we have taken steps to diversify our shipping arrangements and add to our logistics partners, we anticipate these logistical challenges to continue into fiscal 2022."

As of August 31, 2021, the Company's cash position was approximately $1.8 million. Due to the continuing uncertainty caused by the worldwide shipping and logistical issues, the Company has recently increased its line of credit to $10 million, of which $5 million is available. The Board of Directors is discussing potential alternative sources of capital, which could include a future public offering of common shares. The proceeds from such an offering could be utilized both for short-term capital needs and to complement the Company's future growth plans.

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, 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 INFINITY Euro fence systems brands; and Early Start, Spring Gardner 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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. Dollars)

AS OF AUGUST 31

2021 2020

ASSETS

Current assets

Cash and cash equivalents $ 1,184,313 $ 3,801,037

Accounts receivable, net of allowance 7,086,503 6,274,426 of $Nil (August 31, 2020 - $Nil)

Inventory, net of allowance 14,391,365 9,198,146 of $250,000 (August 31, 2020 - $65,000)

Prepaid expenses 2,305,820 1,036,128

Prepaid income taxes 252,958 -

Total current assets 25,220,959 20,309,737

Property, plant and equipment, net 3,886,543 2,967,565

Intangible assets, net 30,897 659

Total assets $ 29,138,399 $ 23,277,961

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 1,349,677 $ 1,095,061

Bank indebtedness 3,000,000 -

Current portion of notes payable - 342,326

Income taxes payable - 40,596

Accrued liabilities 1,798,088 2,016,300

Total current liabilities 6,147,765 3,494,283

Long-term liabilities

Notes payable - 338,381

Deferred tax liability 116,945 96,952

Total liabilities 6,264,710 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 687,211 618,707

Retained earnings 21,363,307 17,908,354

Total stockholders' equity 22,873,689 19,348,345

Total liabilities and stockholders' equity $ 29,138,399 $ 23,277,961

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) YEARS ENDED AUGUST 31



2021 2020



SALES $57,501,543$44,945,263



COST OF SALES 43,354,897 32,472,080



GROSS PROFIT 14,146,646 12,473,183



OPERATING EXPENSES

Selling, general and administrative 3,204,945 2,502,989

Depreciation and amortization 244,279 217,712

Wages and employee benefits 6,957,730 5,894,346



10,406,954 8,615,047



Income from operations 3,739,692 3,858,136



OTHER ITEMS

Gain on sale of property, plant and equipment - 6,600

Gain on extinguishment of debt 687,387 -

Interest and other income (expense) (2,871) 24,420

684,516 31,020



Income before income taxes 4,424,208 3,889,156



Income taxes

Current 949,262 1,068,883

Deferred (recovery) 19,993 35,748



Net income for the year $3,454,953 $2,784,525



Basic earnings per common share $0.99 $0.77



Diluted earnings per common share $0.99 $0.77



Weighted average number of common shares outstanding:

Basic 3,486,537 3,623,413

Diluted 3,486,537 3,623,413

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year $ 3,454,953 $ 2,784,525

Items not affecting cash:

Depreciation and amortization 244,279 217,712

Stock-based compensation expense 70,391 -

(Gain) on sale of property, plant and equipment - (6,600)

Gain on extinguishment of debt (680,707) -

Deferred income taxes 19,993 35,748

Changes in non-cash working capital items:

(Increase) in accounts receivable (812,077) (3,438,474)

Decrease in note receivable - 1,197

(Increase) in inventory (5,193,219) (2,820,341)

(Increase) in prepaid expenses (1,269,692) (642,589)

(Increase) decrease in prepaid income taxes (252,959) 223,420

Increase in accounts payable and accrued liabilities 36,404 1,388,754

(Decrease) increase in income taxes payable (40,596) 40,596

Net cash (used by) operating activities (4,423,230) (2,216,052)

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment - 400

Increase in intangible assets (30,755) -

Purchase of property, plant and equipment (1,162,739) (449,282)

Net cash (used in) provided by investing activities (1,193,494) (448,882)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank indebtedness 3,000,000 -

(Decrease) increase in notes payable - 680,707

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

Net cash provided (used) in financing activities 3,000,000 (3,186,339)

Net (decrease) in cash (2,616,724) (5,851,273)

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

Cash, end of year $ 1,184,313 $ 3,801,037

Contact: Charlie Hopewell, Chief Executive Officer, (503) 647-0110

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SOURCE Jewett-Cameron Trading Company Ltd.