Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $8.3 million, a decrease of 7% compared to $9.3 million in Q1 2025 [13] - Gross operating profit margins were negative 12.5% in Q1 2026, down from positive 18.3% in Q1 2025, primarily due to $2.2 million in additional inventory write-downs [15] - Net loss for Q1 2026 was $3.9 million or negative $1.12 per share, compared to a net loss of $658,000 or negative $0.19 per share in Q1 2025 [17] Business Line Data and Key Metrics Changes - Sales in the core metal fence business increased slightly year-over-year despite challenges, indicating resilience [14] - The Greenwood industrial wood business saw a 45% increase in sales, driven by demand from municipalities and new customers [14] - Decreased sales were noted in lumber and PET products due to market conditions and customer program changes [15] Market Data and Key Metrics Changes - The company faced ongoing challenges from tariffs and negative consumer sentiment, impacting purchasing behavior [11] - The operational environment remains uncertain, with weak consumer sentiment affecting discretionary spending [11] Company Strategy and Development Direction - The company aims to exit fiscal 2026 with a sustainable business model focused on core product categories and operational efficiency [12] - There is a strong emphasis on the metal fencing business as a competitive advantage and a primary focus for capital allocation and innovation [7] - Initiatives to streamline operations and reduce costs are ongoing, with a target to reduce annual operating expenses by $1 million to $3 million [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in Q1 but expresses optimism about long-term growth potential, particularly in the metal fencing business [4][7] - The company is making progress in pricing alignment with customers to improve margins, despite the difficulties posed by tariff volatility [16] - Future strategies include monetizing non-core assets and exploring partnerships to strengthen liquidity [10][21] Other Important Information - The company has amended its lending agreement to increase borrowing capacity, providing additional flexibility for operational realignment [19] - Inventory balance decreased to $13.5 million from $15.9 million, with an increased allowance for inventory reflecting market value adjustments [18] Q&A Session Summary Question: Can you expand upon the renegotiated pricing agreements you've entered into? - Management reported successful negotiations for price increases to minimize margin erosion due to tariffs, with implementation beginning in Q1 of fiscal 2026 [24] Question: Can you provide a general breakdown of your inventory by product category? - Management indicated that metal fencing remains the highest velocity inventory, while some PET inventory is slow-moving, with efforts ongoing to move excess lumber inventory [25]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $8.3 million, a decrease of 7% compared to $9.3 million in Q1 2025 [13] - Gross operating profit margins were negative 12.5% in Q1 2026, down from positive 18.3% in Q1 2025, primarily due to $2.2 million in additional inventory write-downs [15] - Net loss for Q1 2026 was $3.9 million, or negative $1.12 per share, compared to a net loss of $658,000, or negative $0.19 per share in Q1 2025 [17] Business Line Data and Key Metrics Changes - Sales in the core metal fence business increased slightly year-over-year, despite challenges from tariffs and negative consumer sentiment [14] - The Greenwood industrial wood business saw a 45% increase in sales, driven by demand from municipalities and the addition of a new non-transit industrial customer [14] - Sales of lumber and Pet products decreased, leading to initiatives to sell off excess inventory due to challenging market conditions [15] Market Data and Key Metrics Changes - The company faced ongoing headwinds from tariffs and weak consumer sentiment, impacting purchasing behavior across the market [11] - The company is actively working to monetize non-core assets and evaluate strategic partnerships to strengthen its market position [10] Company Strategy and Development Direction - The company aims to exit fiscal 2026 with a sustainable business model focused on its strongest product categories and operational efficiency [12] - There is a strong emphasis on the metal fencing business as a primary focus for operations, capital allocation, and innovation efforts [7] - The company is working to align costs with pricing to improve margins and has successfully renegotiated agreements with most customers [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges faced in Q1 but believes that positive developments will become evident in future quarters [6] - The company is committed to reducing annual operating expenses by $1 million to $3 million and aims to streamline operations [9] - Management expresses optimism about the long-term growth potential of the metal fencing business as global trade conditions stabilize [7] Other Important Information - The company has amended its lending agreement to increase borrowing capacity, providing additional flexibility for operational realignment [19] - Inventory balance as of November 30, 2025, was $13.5 million, down from $15.9 million at the end of August [17] Q&A Session Summary Question: Can you expand upon the renegotiated pricing agreements you've entered into? - Management reported successful negotiations for new pricing to minimize margin erosion from increased tariffs, with implementation beginning in Q1 of fiscal 2026 [24] Question: Can you provide a general breakdown of your inventory by product category? - Management indicated that metal fencing remains the highest velocity inventory, while some Pet inventory has been slow-moving [25]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $8.3 million, a decrease of 7% compared to $9.3 million in Q1 2025 [14] - Gross operating profit margins were negative 12.5% in Q1 2026, down from positive 18.3% in Q1 2025, primarily due to $2.2 million in additional inventory write-downs [15] - Net loss for Q1 2026 was $3.9 million, or negative $1.12 per share, compared to a net loss of $658,000, or negative $0.19 per share in Q1 2025 [17] Business Line Data and Key Metrics Changes - Sales in the core metal fence business increased slightly year-over-year, despite challenges from tariffs and negative consumer sentiment [14] - The Greenwood industrial wood business saw a 45% increase in sales, driven by demand from municipalities and the addition of a new non-transit industrial customer [14] - Sales of lumber and PET products decreased due to initiatives to sell excess inventory amid challenging market conditions [15] Market Data and Key Metrics Changes - The company faced ongoing headwinds from tariffs and weak consumer sentiment, impacting purchasing behavior across the market [12] - The company is optimistic about renewed momentum in the metal fencing business as global trade conditions stabilize [14] Company Strategy and Development Direction - The company aims to exit fiscal 2026 with a sustainable business model focused on core product categories and operational efficiency [12][21] - There is a strong emphasis on the metal fencing business as a competitive advantage, with plans to optimize sales across other product categories [8] - The company is actively working to monetize non-core assets and exploring strategic partnerships and potential divestitures [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the operating environment but believes that strategic initiatives are strengthening the company's foundation and long-term outlook [7][12] - The company is focused on reducing annual operating expenses by $1 million to $3 million and improving margins through pricing alignment with customers [10][17] Other Important Information - The company has amended its lending agreement to increase borrowing capacity, providing additional flexibility for operational realignment [19] - Inventory balance as of November 30, 2025, was $13.5 million, down from $15.9 million at the end of August [18] Q&A Session Questions and Answers Question: Can you expand upon the renegotiated pricing agreements you've entered into? - Management reported successful negotiations for new pricing to minimize margin erosion from increased tariffs, with implementation beginning in Q1 of fiscal 2026 [23] Question: Can you provide a general breakdown of your inventory by product category? - Management indicated that metal fencing remains the highest velocity inventory, while a portion of PET inventory has been slow-moving, with progress being made in moving excess lumber inventory [24]

Financial Performance - Sales declined by 7% in the first quarter, resulting in a net loss of $3,944,139, or $1.12 per share[121] - Sales for the three months ended November 30, 2025, were $8,653,467, a decrease of $613,534, or 7%, compared to $9,267,001 for the same period in 2024[133] - The operating loss for JCC was ($3,893,158) for the quarter ended November 30, 2025, compared to an operating loss of ($920,237) for the same quarter in 2024, including a $2,208,813 inventory write-down[134] - Gross margin for the three-month period ended November 30, 2025, was negative 12.5%, down from a positive 18.3% for the same period in 2024, primarily due to increased inventory write-downs and a shift to lower-margin products[137] - The company is facing challenges from negative consumer buying trends and operational issues, which are expected to continue affecting margins and demand for products throughout fiscal 2026[122] Inventory and Supply Chain - The company experienced a write-down of inventory amounting to $2,208,813, primarily related to excess lumber and certain pet inventory[121] - The new import tariffs have significantly increased supply chain costs and logistics, leading to a double-digit reduction in overall gross margins across most product lines[122] - Approximately 5% of the company's metal products are currently imported from China, down from previous levels due to tariff adjustments[120] - The company recorded an additional $550,000 inventory allowance in the first quarter of fiscal 2026 due to continued liquidation of older inventory in a sluggish pet market[125] Working Capital and Liquidity - As of November 30, 2025, working capital decreased to $13,636,039 from $17,026,472 as of August 31, 2025, a decrease of $3,390,433[143] - Cash and cash equivalents increased to $1,036,218, up $810,005 from $226,213 as of August 31, 2025, due to timing of accounts receivable collections[144] - The Company expects sufficient liquidity to meet working capital requirements for the next 12 months based on current working capital position and revised credit arrangement[149] - The maximum amount of accounts receivable invoices Northrim will purchase is now limited to 90% of the maximum eligible accounts, not exceeding $8,000,000, increased from a previous limit of $6,000,000[147] - Borrowing against the Company's inventory has increased to 50% of all eligible inventory, with a maximum borrowing amount raised to $6,500,000 from $4,000,000[147] Costs and Expenses - Inflation has led to increased product costs, negatively affecting gross margins, with management expecting continued pressure on margins in fiscal 2026[151] - The Prime Interest Rate has risen from 3.25% in January 2022 to approximately 7.50% in August 2025, impacting interest expenses on borrowings[152] - The company is actively seeking to reduce operating and administrative costs, achieving a 26% reduction in wages and employee expenses compared to the first quarter of fiscal 2025[128] Market and Competition - Significant competition exists in the market, which could lead to reduced demand for the company's products and potential loss of market share[172] - The top ten customers accounted for 97% of total sales for the fiscal year ended August 31, 2025, with the largest customer representing 39% and the two largest customers together accounting for 74% of total sales[170] - The fencing business is seasonal, with higher sales occurring between February and August, leading to inventory buildup prior to the season[96] - Outdoor product sales are highly seasonal, with the majority of revenue generated during the spring and summer months, making the company vulnerable to adverse weather conditions[176] Risks and Compliance - The company has identified significant deficiencies in internal controls related to financial reporting, which could impact the accuracy of financial results and investor confidence[190] - A recent cybersecurity incident involved unauthorized access to the company's IT environment, leading to potential data exfiltration and operational disruptions[183] - Compliance with evolving privacy laws, such as GDPR and CCPA, may result in increased costs and liabilities for the company[188] - The company may require additional funding to strengthen liquidity, which could involve selling real estate assets and increasing borrowing capacity[160] - The ongoing tariff and global economic situation has created challenges in managing supply chain and product costs, necessitating immediate steps to strengthen liquidity[160] Shareholder and Stock Information - The company may face dilution of existing stockholders' shares if additional common stock is issued in the future[194] - The average daily trading volume of the company's common stock was approximately 9,300 shares on NASDAQ for the fiscal year ended August 31, 2025[196] - Future sales of common stock by shareholders could cause the stock price to decline significantly, leading to potential dilution for existing shareholders[198] Interest Rate and Financial Instruments - The company is exposed to interest rate risk, with interest computed at the prime rate plus 4.75%, with a floor of 11%[203] - The company does not have any derivative financial instruments as of November 30, 2025, but is still exposed to interest rate risk[202] - Changes in U.S. interest rates affect the interest earned on the company's cash, impacting its interest income and expense[202] - The company is subject to reporting obligations under Canadian securities laws and SEC rules, which place significant demands on its resources[201] - The company anticipates that new regulations will continue to increase its legal and financial costs[199]

Company to host webcast today, January 14, 2026, at 4:30 p.m. Eastern timeNORTH PLAINS, Ore., Jan. 14, 2026 (GLOBE NEWSWIRE) -- Jewett-Cameron Trading Company Ltd. (the “Company”; Nasdaq: JCTC), a company committed to innovative products that enrich outdoor spaces, today announced operational and financial results for the fiscal 2026 first quarter for the period ended November 30, 2025. Management Discussion “Many of the broader headwinds impacting our business that we have discussed for the past nine month ...

Industry Overview - Home improvement stocks are closely tied to housing activity, consumer spending, interest rates, and seasonality, making them sensitive to economic cycles and mortgage market conditions [2] - The five notable companies in this sector include Home Depot, Lowe's Companies, Masco, Medallion Financial, and Jewett-Cameron Trading, which had the highest dollar trading volume recently [2] Company Summaries - **Home Depot (HD)**: Operates as a home improvement retailer, selling building materials, home improvement products, lawn and garden products, and offering installation services for various home improvement projects [3] - **Lowe's Companies (LOW)**: Functions as a home improvement retailer, providing products for construction, maintenance, repair, remodeling, and decorating, including appliances, tools, and building materials [4] - **Masco (MAS)**: Designs, manufactures, and distributes home improvement and building products, with a focus on plumbing products such as faucets, showerheads, and other related items [5] - **Medallion Financial (MFIN)**: A specialty finance company operating in segments including Home Improvement Lending, offering loans for home improvement projects like window and roof replacements [6] - **Jewett-Cameron Trading (JCTC)**: Supplies value-added building materials to major home improvement center chains, focusing on the residential repair and remodeling segment [8]

Core Insights - The company aims to enhance visibility in the investment community and drive shareholder value through strategic initiatives focused on profitability and growth [2][37] - The first quarter of fiscal 2025 saw a revenue of $9.3 million, a slight decrease from $9.8 million in the same quarter of 2024, with metal fencing products showing a 19% increase in sales [29][31] Financial Performance - Revenue for Q1 2025 was $9.3 million compared to $9.8 million in Q1 2024, with metal fencing products up 19% and wood fencing products up 4% [29] - Gross profit margins for Q1 2025 were 18.3%, down from 19.9% in Q1 2024, primarily due to increased shipping costs and higher production costs for in-store display units [31] - Operating expenses decreased to $2.6 million in Q1 2025 from $2.7 million in Q1 2024, attributed to reduced professional fees and operational efficiencies [32] Strategic Initiatives - The company has focused on innovative in-aisle displayers in major home centers like Home Depot and Lowe's to drive profitable sales growth [6][8] - The Adjust-A-Gate Unlimited product was launched, designed for adaptability and simplicity in gate construction, supporting various gate designs [17][18] - The company is working on diversifying its customer base for sustainable products and has plans for load-ins in multiple regional grocery chains in 2025 [22][23] Market Dynamics - The company is experiencing a seasonal demand pattern, with higher sales expected in the second half of the fiscal year [28] - The demand for pet products has declined by 31% compared to Q1 2024, indicating a need for strategic marketing adjustments [29][21] - The company is also addressing the softness in the retail channel for pet containment products following a pandemic-related surge in pet ownership [21] Asset Management - The company is in the process of selling its seed processing facility, listed for $9 million, which is expected to enhance shareholder value significantly [26][27] - The facility is currently on the market, and discussions with potential buyers are ongoing [26]

Core Viewpoint - The company is facing significant challenges due to the impact of tariffs on imported products, which has led to deferred purchases by retailers and consumers, negatively affecting third-quarter results. However, proactive measures have been implemented to mitigate these impacts and improve operational efficiency. Group 1: Tariff Impact - The uncertainty surrounding tariffs has negatively impacted third-quarter results, with many retailers and consumers deferring purchases of imported metal products until clarity on prices is available [1] - Tariffs on Chinese goods were initially set at 25% in 2019, with additional increases announced in early 2025, leading to a doubling of the tariff rate to 50% [12][14] - The rapid and unpredictable changes in tariff rates have caused customers to pause their purchasing decisions, leading to a significant decline in sales [15][16] Group 2: Financial Performance - Revenue for Q3 2025 was $12.6 million, down from $15.9 million in Q3 2024, reflecting a 21% decline overall, although the metal fence business only saw a 4% decrease [7][34] - Gross profit margins for Q3 2025 were 15%, down from 18.6% in Q3 2024, primarily due to higher tariff and shipping costs [36] - The net loss for Q3 2025 was $600,000, compared to a net income of $200,000 in Q3 2024, attributed to deferred purchases and lower gross margins [39] Group 3: Strategic Initiatives - The company has implemented a multi-sourcing strategy to reduce dependence on high-tariff countries, expanding sourcing to Vietnam, Malaysia, and Bangladesh [19][20] - Price adjustments are being made to align with increased costs due to tariffs, although the rapid changes in rates have complicated this process [21] - Operational efficiency initiatives have included a 20% reduction in personnel to better align with new business processes [22] Group 4: Product Performance - The metal fence business showed resilience with an 85% increase in product sales of lifetime steel posts compared to Q3 2024 [24] - The pet business experienced a 44% decline compared to last year's Q3, continuing to be affected by supply chain issues [9] - Sales of the MyEcoWorld product line increased by 265% over the comparative period in fiscal 2024, indicating strong demand for sustainable products [26] Group 5: Future Outlook - The company expects that resolution of ongoing tariff negotiations will lead to more normalized customer purchasing patterns in the future [6][17] - Demand for metal goods has begun to pick up as customers adjust to new pricing, although it is not expected to return to normalized levels immediately [32] - The company remains committed to enhancing operational efficiencies and leveraging technology to navigate the evolving tariff environment [20][32]

Sales Performance - Total Company sales were $41.3 million and $47.1 million during fiscal years ended August 31, 2025 and 2024, respectively, representing a decrease of approximately 15.5%[15] - The company experienced a decrease in sales due to worldwide tariffs imposed in 2025, which eroded margins and increased supply chain costs[52] - The top ten customers accounted for 97% of total sales in 2025, highlighting significant customer concentration risk[67] Segment Performance - The Industrial Wood Products segment, represented by Greenwood, accounted for 9% of total Company sales in fiscal 2025, compared to 8% in fiscal 2024[32] - The Company operates in four segments: Pet, Fencing and Other; Industrial wood products; Seed processing and sales; and corporate and administrative services[27] - Fencing remains the largest product category, with 422 in-store display units for the Lifetime Steel Post® (LTP) product, indicating significant growth opportunities[51] Strategic Initiatives - The Company is focusing on its fencing product lines while monetizing non-core assets and disposing of excess inventory to combat challenges faced in fiscal 2025[48] - The Company aims to lower costs, increase sales, and improve margins while introducing innovative products[48] - The company plans to focus on improving margins on core fencing products through reestablished partnerships and new sales channels[52] - The company is exploring strategic options, including potential mergers, acquisitions, and partnerships to enhance shareholder value[58] Operational Changes - The JCSC seed division was closed effective August 31, 2023, with all remaining seed inventory sold by early October 2023[25][47] - The JCSC seed division's closure was due to declining demand and rising costs, with significant capital investment required to maintain operations[25] - The Company has relisted the surplus property of the JCSC seed division at a reduced price of $7.223 million[38] - Excess inventory includes approximately $5 million in lumber and slow-moving pet products, with efforts underway to liquidate these assets[53] - The company reduced its workforce by 27% year-over-year to align with strategic objectives and improve operational efficiency[55] Financial Position - As of August 31, 2025, the company had borrowed $4,304,853 against a credit line with a maximum borrowing limit of $6 million[64] Supply Chain Management - The new strategic sourcing program established suppliers in Bangladesh and Vietnam to mitigate the impact of 85% tariffs on Chinese steel products[26] - The company is shifting to suppliers outside of China, with only 5% of metal products currently imported from China, to mitigate tariff impacts[62] Future Outlook - Fiscal 2026 is expected to remain challenging due to high tariff levels, with ongoing efforts to reduce costs and improve sales margins[65]

Core Viewpoint - Jewett-Cameron Trading Company Ltd. reported a challenging fiscal 2025, with a strategic realignment underway to enhance growth and profitability amid significant market volatility due to tariffs and global economic conditions [1][2]. Management Discussion - The company started fiscal 2025 with a positive outlook, achieving revenue growth in the first half driven by successful product lines and expanded retail placements [2]. - However, the introduction of new tariffs in February 2025 led to market disruptions, affecting sales and increasing costs, particularly in the lumber business [2][9]. - The company has engaged new resources to mitigate the financial impact of tariffs, including a 27% reduction in headcount and a focus on core strengths in metal fencing products [3][4]. Financial Results - Fiscal 2025 sales totaled $41.3 million, a 12% decrease from $47.1 million in fiscal 2024, with gross margins declining to 15.1% from 18.8% [9][10]. - Operating expenses were reduced to $10.0 million from $10.7 million, while the company reported a net loss of $4.1 million, or $1.18 per share, compared to a net income of $722,000, or $0.21 per share, in fiscal 2024 [11][14]. Recent Key Activities - The company is executing plans to reduce operating expenses by $1 to $3 million annually and is in discussions to sell excess lumber and pet inventory [8]. - The company has listed its seed processing and storage facility for sale at $7.223 million and its innovation studio property at $795,000 [8]. - As of August 31, 2025, the company had borrowed $2.1 million against its credit line, with ongoing discussions to increase borrowing capacity for financial flexibility [8]. Strategic Review - The management is evaluating various strategic options, including focusing on core metal fencing products, improving operational efficiencies, and monetizing non-core assets [4][5]. - The company aims to exit fiscal 2026 with a sustainable business model, leveraging non-core assets to fund core growth strategies [4].