Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $12.6 million, down from $15.9 million in Q3 2024, but up from $9.1 million in Q2 2025, indicating a seasonal recovery [24] - Gross profit margins decreased to 15% from 18.6% in Q3 2024, primarily due to higher tariff and shipping costs [25] - Net loss for Q3 2025 was $600,000, or negative $0.18 per share, compared to net income of $200,000, or $0.04 per share in Q3 2024 [27] Business Line Data and Key Metrics Changes - Metal fence business only saw a 4% decline year-over-year, attributed to the expansion of the lifetime steel post business, which increased by 85% in product sales [6][24] - Pet business experienced a significant decline of 44% compared to Q3 2024, although it showed slight improvement from the previous quarter [7] - Wood fencing product sales decreased due to material constraints, impacting the ability to fulfill cedar fence orders [9] Market Data and Key Metrics Changes - The uncertainty surrounding tariffs has led to deferred purchases of imported metal products, affecting overall sales [5][11] - Sales of MyECO World products increased by 265% over the comparative period in fiscal 2024, indicating strong demand for sustainable products [18] - Sales in the Greenwood operating segment decreased by 24% to $700,000 compared to $900,000 in Q3 2024, due to supply issues [19] Company Strategy and Development Direction - The company is focusing on four key areas: growth drivers, product innovation, supply chain and operational efficiency, and asset monetization [30] - A multi-sourcing strategy has been implemented to reduce dependence on suppliers from high-tariff countries, enhancing supply chain resilience [13] - The company is actively managing production capacity constraints and logistical issues to support existing display replenishment demand [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism that resolution to ongoing tariff negotiations will lead to normalized customer purchasing patterns [6][12] - The company anticipates that challenges experienced in Q3 will likely extend into Q4, with continued uncertainty affecting demand [21][22] - Demand for metal goods has started to pick up as customers adjust to new pricing, although it is not expected to return to normalized levels immediately [22] Other Important Information - The company is marketing a 6-acre seed processing facility in Oregon, which has a book value of just over $550,000 [20] - The cash balance at May 31, 2025, was $1.2 million, and stockholders' equity decreased to $23.1 million due to the net loss during the quarter [29] Q&A Session Summary Question: Can you elaborate on your tariff mitigation strategies? - The company began multi-sourcing production to countries other than China in early 2023, which helped reduce dependence on a single supplier and mitigate higher tariffs [32][33] Question: What are your revised operating expense expectations? - The company aims to be more efficient across operations and continues to evaluate technology to enhance efficiency [34] Question: Any updates on the property for sale? - The company is actively marketing the property and will provide updates when a definitive arrangement is secured [35] Question: What percentage of total sales are the lifetime steel fence posts? - Currently, lifetime steel fence posts account for 8% of gross sales [38] Question: Is there overlap between customers purchasing different product lines? - There is likely some overlap in target audiences, but definitive evidence of the same consumers is not available [39] Question: Have you considered cutting support for underperforming products? - The company continuously evaluates product performance and its contribution to shareholder value [41]

(Exact Name of Registrant as Specified in its Charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MAY 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ________ TO ________ COMMISSION FILE NUMBER 000-19954 JEWETT-CAMERON TRADING COMPANY LTD. BRITISH COLUMBIA NON ...

Core Insights - Jewett-Cameron Trading Company Ltd. reported a significant decline in revenue and net loss for Q3 2025, primarily due to the impact of tariffs on imported metal products and supply chain disruptions [1][9][12]. Operational Highlights - The company experienced a 21% decrease in total revenue for Q3 2025, amounting to $12.6 million compared to $15.9 million in Q3 2024, largely due to deferred purchases by retailers amid tariff uncertainties [6][9]. - Sales of Lifetime Steel Posts® products grew by 85% compared to Q3 2024, driven by the rollout of displayers, which increased by approximately 88% since November 2024 [6][9]. Tariff Impact and Response - The company faced increased tariffs on Chinese goods, with a 25% tariff implemented in 2019 and further increases announced in 2025, leading to a 50% global tariff on steel and aluminum imports as of June 2025 [3][4]. - Retailers have deferred purchases of imported metal products due to tariff volatility, causing significant turmoil in the company's markets and stressing logistics [4][5]. - The company is diversifying suppliers to mitigate tariff impacts and is implementing price increases across its product portfolio to align with rising costs [7][8]. Financial Results - Gross profit margins decreased to 15.0% in Q3 2025 from 18.6% in Q3 2024, attributed to higher tariff and shipping costs, as well as a shift towards lower-margin products [10]. - Operating expenses decreased to $2.6 million in Q3 2025 from $2.9 million in Q3 2024, due to operational efficiency initiatives and a 20% workforce reduction [11]. - The net loss for Q3 2025 was $(0.6) million, or $(0.18) per share, compared to a net income of $0.2 million, or $0.04 per share, in Q3 2024 [12][20]. Strategic Initiatives - The company is developing multi-source, multi-country strategic sourcing partnerships to reduce dependence on high-tariff countries and enhance production flexibility [7]. - Initiatives to improve operational efficiency and customer satisfaction are being enacted, including process improvements and technology enhancements [7][8].

Company Overview - Jewett-Cameron Trading Company Ltd. is a holding company based in North Plains, Oregon, focusing on innovative products that enhance outdoor spaces [3] - The company operates through subsidiaries, manufacturing and distributing specialty metal and sustainable bag products, as well as wholesale distribution of wood products [3] - Key brands include Lucky Dog for pet products, Jewett Cameron Fence for fencing solutions, MyEcoWorld for sustainable bags, and various brands for greenhouse products [3] Financial Reporting - Jewett-Cameron will report its operational and financial results for the fiscal 2025 third quarter on July 14, 2025, after market close [1] - A webcast is scheduled for the same day at 4:30 p.m. Eastern time to review the results and conduct a Q&A session [1][2] Investor Relations - The webcast will be accessible live and archived on the company's investor relations webpage [2] - For further inquiries, investors can contact Robert Blum at Lytham Partners [4]

Summary of Jewett-Cameron Trading Company (JCTC) Conference Call Company Overview - Jewett-Cameron Trading Company (JCTC) is a small-cap company with significant growth potential, focusing on durable markets and functional products [3][4] - The company has a 70-year history and is listed on NASDAQ, primarily offering fencing, pet containment, and sustainable home products [4] Core Business and Product Offerings - JCTC is undergoing a strategic transformation, evolving from a lean operation to a growth-oriented platform with product leadership in outdoor living and home improvement [5] - Key product categories include: - **Fencing Products**: Includes fence boards, pickets, steel access accessories, and composite EuroFence products [8] - **Pet Containment**: Focuses on durable solutions like welded wire and chain link dog kennels [8] - **Sustainable Products**: Compostable and post-consumer recycled products, including bags for waste [8] - **Greenwood**: A subsidiary specializing in industrial wood products, particularly proprietary plywood for transit buses [8] Market Position and Growth Strategy - JCTC has established strong retail relationships with major retailers like Home Depot, Lowe's, and Costco, enhancing shelf presence and growth momentum [6] - The company is actively transitioning to growth mode by optimizing pricing, expanding distribution, and reducing overhead [8] - The introduction of innovative products, such as the lifetime steel post and adjustable gates, has driven significant sales growth [10][12] Financial Position - JCTC is trading at a steep discount to book value, has no long-term debt, and possesses a valuable 11.6-acre property that could enhance equity upon sale [7] - The company has reduced inventory levels to align with growth plans, improving cash flow and operational efficiency [16][17] Supply Chain and Tariff Mitigation - JCTC has diversified its supply chain to include sourcing from countries like Vietnam, Bangladesh, Malaysia, and Indonesia, reducing dependency on China [21][22] - The company has implemented a comprehensive multisourcing strategy to mitigate tariff impacts, particularly the 25% global steel tariff [21][22] - Ongoing landed cost comparisons and dual tooling strategies are in place to maintain competitive pricing and ensure supply continuity [25][26] Customer Response and Pricing Strategy - Customers have responded positively to recent price adjustments, which have been modest due to proactive sourcing strategies [27][28] - JCTC aims to maintain competitive pricing while ensuring product quality and reliability, reinforcing its position as a trusted supplier [28] Property Sale and Future Outlook - The company is selling an 11-acre property in Oregon, which has faced a slower sales timeline due to market uncertainties and zoning constraints [30][31] - The property is valued at $9 million, with significant potential upside upon sale [32] - JCTC envisions a dominant presence in the fencing market and plans to expand its product range and distribution channels over the next five to ten years [33][34] Final Takeaways - JCTC is executing a focused strategy with strong momentum in key product categories and strategic sourcing initiatives [36] - The management team is committed to creating value for shareholders, making it an opportune time for investors to consider the company [36]

NORTH PLAINS, Ore., May 27, 2025 (GLOBE NEWSWIRE) -- Jewett-Cameron Trading Company Ltd. (“Jewett-Cameron”) (Nasdaq: JCTC), a company committed to innovative products that enrich outdoor spaces, today announced that it will participate in a webcast presentation and host one-on-one meetings with investors at the Lytham Partners Spring 2025 Investor Conference, taking place virtually on Thursday, May 29, 2025. Company Webcast The webcast presentation will take place at 12:30 p.m. ET on Thursday, May 29, 2025. ...

Core Viewpoint - Jewett-Cameron Trading Company Ltd. is enhancing operational efficiency through organizational changes, process improvements, and global sourcing expansion to adapt to global tariff uncertainties and reduce costs [1][6]. Operational Efficiency - The company has reduced staffing by approximately 20% in the third fiscal quarter of 2025 [2]. - Upgraded technology is being implemented in warehouse operations to improve receiving, cycle counting, and shipping activities, utilizing scanners and QR codes for enhanced accuracy [3]. - The integration of Artificial Intelligence (AI) will improve forecasting, demand planning, and stocking strategies, leading to better cash flow and customer satisfaction [3]. Sourcing Strategy - Jewett-Cameron has added Indonesia to its international manufacturing sources, expanding its multi-sourcing strategy initiated in 2023, which now includes suppliers from Vietnam, Malaysia, Bangladesh, Taiwan, and Indonesia [5][6]. - This sourcing expansion aims to mitigate tariff impacts and enhance supply chain flexibility and resilience [5][6]. Leadership Insights - CEO Chad Summers emphasized the proactive measures taken to increase productivity and reduce costs without compromising quality or service [4]. - The company is committed to building a resilient and cost-effective supply chain to navigate evolving tariff environments while maintaining high-quality products [6]. Long-term Growth Strategy - The combination of operational improvements and continued investment in innovation and channel expansion is expected to lay a stronger foundation for profitable growth in the long term [7].

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $9.1 million, an increase from $8.2 million in Q2 2024, reflecting a growth in metal fencing products and other categories [28][30] - Gross margins for Q2 2025 were 20.1%, down from 25.1% in Q2 2024, primarily due to a shift in sales mix and higher costs associated with in-store display units [33] - Net loss for Q2 2025 was $0.6 million or $0.16 per share, compared to a net income of $0.5 million or $0.15 per share in Q2 2024 [35] Business Line Data and Key Metrics Changes - Sales of metal fencing products increased due to the ongoing load-in of new Lifetime Steel Post displayers [29] - Wood fencing product sales decreased due to material constraints, while pet product sales continued to decline [20][31] - Sales at Greenwood increased by 31% to $1.1 million compared to $0.8 million in Q2 2024 [24] Market Data and Key Metrics Changes - Online sales for several pet products have started to pick up recently, indicating a potential recovery in that segment [21] - The company has seen a reduction in pet inventory by over 17% from a year ago, which may improve sales dynamics [22] Company Strategy and Development Direction - The company is focused on four key areas: growth drivers, product innovation, supply chain and operational efficiency, and asset monetization [41] - The successful growth in the metal fence category and traction of MyEcoWorld products validate the execution of the strategic focus [41] - The company is enhancing systems and processes to improve profitability and has initiated multi-sourcing strategies to mitigate tariff impacts [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the evolving tariff landscape but expressed confidence in the company's positioning due to prior supply chain initiatives [19] - The company is optimistic about future growth driven by new product launches and improved marketing efforts [32] Other Important Information - The company has reduced inventory balances by 23% to $14.9 million as of February 28, 2025 [36] - The carrying balance of the seed facility is less than $600,000, with a listing price of $9 million, which could significantly enhance shareholder value upon sale [38][25] Q&A Session Summary Question: Why haven't executives purchased shares in the open market? - Management indicated that they are often restricted from purchasing shares due to material information and will review the situation further [46] Question: Are there any additional questions? - No further questions were raised during the session, and the call concluded with closing remarks from management [47]

Sales Performance - Sales increased by 10% in the current fiscal second quarter compared to the second quarter of fiscal 2024, driven by strength in fencing products, particularly Lifetime Steel Posts®[104] - Sales for the three months ended February 28, 2025, were $9,054,951, an increase of $825,759, or 10% compared to the same period last year[120] - Sales at JCC rose to $7,943,319 for the three months ended February 28, 2025, representing an increase of $559,354, or 8%[121] - Sales at Greenwood increased by $287,559, or 35%, to $1,111,632 for the three months ended February 28, 2025[122] - Sales for the six months ended February 28, 2025, were $18,321,951, an increase of $286,918, or 2% compared to the prior year[128] Product Development and Launches - The Adjust-A-Gate® Unlimited, a fully adjustable complete gate kit, was launched in December, enhancing the fencing product line[107] - MyEcoWorld® secured its first grocery store placement with the launch of Pet Waste Bags into 59 Tops Friendly Markets across the Northeast[110] - The company has successfully installed new in-store displayers for Lifetime Steel Posts® in 334 Home Depot and Lowe's stores, exceeding the original goal of 300 installations[105] - The company anticipates replenishment orders for in-store displayers during the second half of fiscal 2025 as initial supplies are sold through[106] Financial Performance - Gross margin for the three months ended February 28, 2025, was 20.1%, down from 25.1% in the prior year due to a less favorable product mix and higher logistics costs[124] - Operating expenses decreased by $205,008 to $2,586,195 compared to the same quarter last year, primarily due to lower wages and employee benefits[125] - Net loss for the quarter ended February 28, 2025, was ($573,094), or ($0.16) per share, compared to a net loss of ($534,145), or ($0.15) per share, for the same period last year[127] - Gross margin for the six-month period ended February 28, 2025, was 19.2%, down from 22.3% in the prior year[133] - Net loss for the six months ended February 28, 2025, was ($1,231,811), or ($0.35) per share, compared to net income of $757,395, or $0.22 per share, for the same period last year[137] Inventory and Working Capital - Pet product inventory has decreased by 17% year-over-year from February 2024 and nearly 60% from February 2023, reflecting efforts to reduce overall inventory levels[109] - As of February 28, 2025, the company had working capital of $19,086,483, a decrease of $1,461,610 from the previous period[138] - As of February 28, 2025, accounts receivable and inventory represented 89% of current assets and 74% of total assets, up from 73% and 61% respectively as of August 31, 2024[141] - The accounts receivable collection period (DSO) increased to 55 days for the three months ended February 28, 2025, compared to 52 days for the same period in 2024; inventory turnover improved to 175 days from 258 days[142] Competition and Market Conditions - The company is facing significant competition, which could reduce demand for its products and impact revenue and profitability[163] - Tariff rates on steel products imported from China reached 70% as of March 2025, due to a combination of existing tariffs and new rates imposed by the U.S. government[148] - The company is shifting to suppliers outside of China to mitigate tariff impacts, but faces uncertainty regarding the interpretation and applicability of new tariffs[149] - Inflation has led to increased costs for raw materials, energy, and logistics, negatively affecting gross margins; the company expects continued pressure on margins in fiscal 2025[150] Financing and Credit - The company has drawn approximately $3,000,000 against its asset-based line of credit to fund inventory purchases ahead of the busy Spring and Summer sales season[143] - The interest rate on the current line of credit rose to approximately 12.25% as of March 2025, following an increase in the Prime Interest Rate from 3.25% in January 2022 to about 7.50% in February 2025[151] - The company has a line of credit with a maximum draw amount of $6,000,000, which is set to expire on June 30, 2025[171] - The company is exposed to interest rate risk as its interest expense is computed at the prime rate plus 4.75%, with a floor of 11%[179] Compliance and Risk Management - The company has committed to ensuring compliance with the Uyghur Forced Labor Prevention Act, ensuring that none of its products are sourced from regions associated with forced labor[157] - The company faces risks related to product liability claims, which could have a material negative effect on its financial condition[170] - The company operates primarily in the U.S., but may experience foreign currency risk as it expands international sales[181] - The company relies on its intellectual property rights, and any infringement could lead to significant litigation costs[169] - The company has completed a management assessment of internal controls and did not identify any material weaknesses or significant deficiencies[173] Operational Changes - The company ended regular operations at JCSC effective August 31, 2023, and is currently working to sell the remaining equipment and property[91] - The company is exploring options to optimize importing Sugi Cedar from Asia to improve margins and offer competitive pricing[108] - The company's outdoor product sales are highly seasonal, with the majority of revenues occurring during the third and fourth quarters of the fiscal year[168]

Core Viewpoint - Jewett-Cameron Trading Company Ltd. reported a 10% increase in total revenue for Q2 2025 compared to Q2 2024, driven by growth in metal fence products and strategic initiatives to enhance visibility and accessibility of its products in retail stores [4][6]. Operational Highlights - The company achieved a 65% sequential growth in the installation of Lifetime Steel Post (LTP) displayers in The Home Depot and Lowe's stores, enhancing product visibility for consumers [3][4]. - New product offerings were introduced, including the Adjust-A-Gate Unlimited, which emphasizes adaptability and customization for gate construction [4]. - The expansion of MyEcoWorld products into 59 Tops Friendly Markets marks a significant step towards sustainability [4]. - Strategic sourcing initiatives have reduced dependence on a single supplier in China, potentially mitigating tariff impacts [3][4]. Financial Results - Revenue for Q2 2025 was $9.1 million, up from $8.2 million in Q2 2024, with notable sales growth in metal fencing products [6][18]. - Gross profit margins decreased to 20.1% in Q2 2025 from 25.1% in Q2 2024, attributed to a less favorable product mix and increased logistics costs [7]. - Operating expenses decreased to $2.6 million in Q2 2025 from $2.8 million in Q2 2024 due to operational efficiencies [8]. - The net loss for Q2 2025 was $(0.6) million, or $(0.16) per share, compared to a net loss of $(0.5) million, or $(0.15) per share in Q2 2024 [8][19]. Asset Management - The company listed an 11.6-acre property in Hillsboro, Oregon for sale or lease at a price of $9 million, with a book value of $566,022 [10][16]. Investor Relations - The company has initiated quarterly conference calls and updated its NASDAQ trading symbol to enhance investor communication and awareness [4][11].