PR Newswire | Nov 12, 2020 04:20PM EST

11/12 15:20 CST

Jewett-Cameron Announces Fiscal 2020 Financial Results NORTH PLAINS, Ore., Nov. 12, 2020

NORTH PLAINS, Ore., Nov. 12, 2020 /PRNewswire/ -- Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF) today reported financial results for its fourth quarter and fiscal year ended August 31, 2020.

For the fiscal year ended August 31, 2020, Jewett-Cameron had sales of $44.9 million and net income of $2,784,525, or $0.77 per share, compared to sales of $45.4 million and net income of $2,100,452, or $0.50 per share, for fiscal 2019.

Sales for the fourth quarter of fiscal 2020 totaled $14.0 million compared to sales of $11.8 million in Q4 2019. Net income was $1,568,436, or $0.43 per share, compared to net income of $532,918, or $0.13 per share, in the fourth quarter of fiscal 2019.

"2020 has been a year to further invest in our core businesses by adding to our facilities, staff, products and brand awareness," said CEO Charlie Hopewell. "However, the COVID-19 pandemic presented tremendous challenges beginning in January. Due to our strict safety protocols, we have had no cases of COVID-19 among our personnel and we have been able to operate effectively throughout calendar 2020 to date. This allowed us to meet the increased demand for certain of our products during the second half of fiscal 2020, particularly in our DIY and pet lines."

As of August 31, 2020, the Company's cash position was $3.8 million, and currently there is no borrowing against its $3.0 million line of credit. During fiscal 2020, the Company privately repurchased for cancelation a total of 490,120 common shares from two large shareholders, including an officer and director of the Company, at a price of $7.89 per share. The total cost of the share repurchases was $3,867,046.

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; 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

2020 2019

ASSETS

Current assets

Cash and cash equivalents $ 3,801,037 $ 9,652,310

Accounts receivable, net of allowance 6,274,426 2,835,952 of $Nil (August 31, 2019 - $Nil)

Inventory, net of allowance 9,198,146 6,377,805 of $65,000 (August 31, 2019 - $119,357)

Note receivable - 1,197

Prepaid expenses 1,036,128 393,539

Prepaid income taxes - 223,420

Total current assets 20,309,737 19,484,223

Property, plant and equipment, net 2,967,565 2,727,406

Intangible assets, net 659 3,048

Total assets $ 23,277,961 $ 22,214,677

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable $ 1,095,061 $ 410,027

Current portion of notes payable 342,326 -

Income taxes payable 40,596 -

Accrued liabilities 2,016,300 1,312,580

Total current liabilities 3,494,283 1,722,607

Long-term liabilities

Notes payable 338,381 -

Deferred tax liability 96,952 61,204

Total liabilities 3,929,616 1,783,811

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, 2019 - 3,971,282) 821,284 936,903

Additional paid-in capital 618,707 618,707

Retained earnings 17,908,354 18,875,256

Total stockholders' equity 19,348,345 20,430,866

Total liabilities and stockholders' equity $ 23,277,961 $ 22,214,677

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31



2020 2019





SALES $44,945,263$45,446,362



COST OF SALES 32,472,080 35,481,931



GROSS PROFIT 12,473,183 9,964,431



OPERATING EXPENSES

Selling, general and administrative 2,502,989 2,127,296

Depreciation and amortization 217,712 191,819

Wages and employee benefits 5,894,346 4,907,766



8,615,047 7,226,881





Income from operations 3,858,136 2,737,550



OTHER ITEMS

Gain on sale of property, plant and equipment 6,600 105,366

Interest and other income 24,420 45,228

31,020 150,594



Income before income taxes 3,889,156 2,888,144



Income taxes

Current 1,068,883 808,341

Deferred (recovery) 35,748 (20,649)



Net income for the year $2,784,525 $2,100,452



Basic earnings per common share $0.77 $0.50



Diluted earnings per common share $0.77 $0.50



Weighted average number of common shares outstanding:

Basic 3,623,413 4,233,304

Diluted 3,623,413 4,233,304

JEWETT-CAMERON TRADING COMPANY LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. Dollars)

YEARS ENDED AUGUST 31

2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net income for the year $ 2,784,525 $ 2,100,452

Items not affecting cash:

Depreciation and amortization 217,712 191,819

(Gain) on sale of property, plant and equipment (6,600) (105,366)

Deferred income taxes 35,748 (20,649)

Changes in non-cash working capital items:

(Increase) decrease in accounts receivable (3,438,474) 1,316,540

Decrease in note receivable 1,197 2,803

(Increase) decrease in inventory (2,820,341) 3,425,392

(Increase) in prepaid expenses (642,589) (46,288)

Decrease (increase) in prepaid income taxes 223,420 (109,110)

Increase (decrease) in accounts payable and accrued liabilities 1,388,754 (449,692)

Increase in income taxes payable 40,596 -

Net cash (used by) provided by operating activities (2,216,052) 6,305,901

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds on sale of property, plant and equipment 400 324,675

Purchase of property, plant and equipment (449,282) (32,732)

Net cash (used in) provided by investing activities (448,882) 291,943

CASH FLOWS FROM FINANCING ACTIVITIES

Increase in notes payable 680,707 -

Issuance of common stock - 18,444

Redemption of common stock (3,867,046) (3,061,441)

Net cash used in financing activities (3,186,339) (3,042,997)

Net (decrease) increase in cash (5,851,273) 3,554,847

Cash, beginning of year 9,652,310 6,097,463

Cash, end of year $ 3,801,037 $ 9,652,310

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

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SOURCE Jewett-Cameron Trading Company Ltd.