Jewett-Cameron Announces Fiscal 2021 Financial Results

Published: Nov. 29, 2021 at 3:20 PM CST

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

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SOURCE Jewett-Cameron Trading Company Ltd.

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