PR Newswire | Jan 14, 2022 04:45PM EST

01/14 15:45 CST

Jewett-Cameron Announces 1st Quarter Financial Results NORTH PLAINS, Ore., Jan. 14, 2022

NORTH PLAINS, Ore., Jan. 14, 2022 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for the first quarter of fiscal 2022 ended November 30, 2021.

Sales for the first quarter of fiscal 2022 totaled $12.9 million compared to sales of $10.3 million for the first quarter of fiscal 2021. Net loss for the current quarter was ($391,141), or ($0.11) per share, compared to net income of $488,527, or $0.14 per share, in the year-ago quarter.

"Our sales quarter over quarter increased by 25%, reflecting the continued strong demand for our products, but higher costs for raw materials and global logistical issues significantly reduced our margins," said CEO Chad Summers. "In response, we have now successfully increased our selling prices with our customers, but these inflationary pressures will remain an issue affecting our margins throughout fiscal 2022."

As of November 30, 2021, the Company's cash position was approximately $1.2 million, and there was $5.0 million borrowed against its $10.0 million line of credit. Based on the timing of accounts receivable and the unused portion of the line of credit, the Company believes it has sufficient working capital available for the remainder of fiscal 2022.

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(r), for pet products; Adjust-A-Gate(tm), Fit-Right(r), Perimeter Patrol(r), and Lifetime Post(tm) for gates and fencing; and Early Start, Spring Gardner(tm), Greenline(r), 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, August 31, 2021 2021

ASSETS

Current assets

Cash and cash equivalents $ 1,235,445 $ 1,184,313

Accounts receivable, net of allowance of $0 (August 31, 2021 - $0) 5,806,987 7,086,503

Inventory, net of allowance of $250,000 (August 31, 2021 - $250,000) 17,223,927 14,391,365

Prepaid expenses 2,267,341 2,305,820

Prepaid income taxes 355,163 252,958

Total current assets 26,888,863 25,220,959

Property, plant and equipment, net 4,407,548 3,886,543

Intangible assets, net 30,629 30,897

Total assets $ 31,327,040 $ 29,138,399

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 2,084,438 $ 1,349,677

Bank indebtedness 5,000,000 3,000,000

Accrued liabilities 1,594,834 1,798,088

Total current liabilities 8,679,272 6,147,765

Deferred tax liability 125,834 116,945

Total liabilities 8,805,106 6,264,710

Stockholders' equity

Capital stock

Authorized

21,567,564 common shares, no par value 824,039 823,171 10,000,000 preferred shares, no par value

Issued

3,492,842 common shares (August 31, 2021 -3,489,161)

Additional paid-in capital 725,729 687,211

Retained earnings 20,972,166 21,363,307

Total stockholders' equity 22,521,934 22,873,689

Total liabilities and stockholders' equity $ 31,327,040 $ 29,138,399



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,

2021 2020

SALES $ 12,917,724 $ 10,316,284

COST OF SALES 10,452,861 7,353,385

GROSS PROFIT 2,464,863 2,962,899

OPERATING EXPENSES

Selling, general and administrative expenses 988,288 694,628

Depreciation and amortization 69,638 50,529

Wages and employee benefits 1,874,118 1,593,959

2,932,044 2,339,116

(Loss) income from operations (467,181) 623,783

OTHER ITEMS

Other income 3,000 3,000

Interest expense (20,276) -

Total other items (17,276) 3,000

(Loss) income before income taxes (484,457) 626,783

Income tax recovery (expense) 93,316 (138,256)

Net (loss) income $ (391,141) $ 488,527

Basic (loss) earnings per common share $ (0.11) $ 0.14

Diluted (loss) earnings per common share $ (0.11) $ 0.14

Weighted average number of common sharesoutstanding:

Basic 3,491,103 3,481,162

Diluted 3,491,103 3,481,162



JEWETT-CAMERON TRADING COMPANY LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

(Prepared by Management)

(Unaudited)



Three Three Months Months

Ended Ended

November 30, November 30, 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) income $ (391,141) $ 488,527

Items not involving an outlay of cash:

Depreciation and amortization 69,638 50,529

Stock-based compensation expense 39,386 -

Deferred income taxes 8,889 (40,784)

Changes in non-cash working capital items:

Decrease in accounts receivable 1,279,516 2,027,469

(Increase) in inventory (2,832,562) (223,013)

Decrease in prepaid expenses 38,479 196,255

Increase (decrease) in accounts payable and 531,507 (454,861)accrued liabilities

(Increase) in prepaid income taxes (102,205) -

Increase in income taxes payable - 179,040

Net cash (used by) provided by operating activities (1,358,493) 2,223,162

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (590,375) (184,247)

Net cash used in investing activities (590,375) (184,247)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank indebtedness 2,000,000 -

Net cash provided by financing activities 2,000,000 -

Net increase in cash 51,132 2,038,915

Cash, beginning of period 1,184,313 3,801,037

Cash, end of period $ 1,235,445 $ 5,839,952

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

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SOURCE Jewett-Cameron Trading Company Ltd.