Jewett-Cameron Announces 1st Quarter Financial Results

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Jan 14, 2021, 16:25 ET

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™ 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, 2020		August 31, 2020

ASSETS

Current assets
Cash and cash equivalents	$	5,839,952	$	3,801,037
Accounts receivable, net of allowance of $Nil (August 31, 2020 - $Nil)		4,246,957		6,274,426
Inventory, net of allowance of $65,000 (August 31, 2020 - $65,000)		9,421,159		9,198,146
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 – 3,481,162)		821,284		821,284
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 Ended November 30, 2020		Three Months Ended November 30, 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 shares outstanding:
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 Ended November 30, 2020		Three Months Ended November 30, 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 liabilities		(454,861)		(297,730)
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