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 of $Nil (August 31, 2020 -
$Nil)
|
|
7,086,503
|
|
|
6,274,426
|
Inventory, net
of allowance of $250,000 (August
31, 2020 - $65,000)
|
|
14,391,365
|
|
|
9,198,146
|
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
View original
content:https://www.prnewswire.com/news-releases/jewett-cameron-announces-fiscal-2021-financial-results-301433220.html
SOURCE Jewett-Cameron Trading Company Ltd.