Core Viewpoint - Jewett-Cameron Trading Company Ltd. reported operational and financial results for fiscal year 2024, highlighting a decrease in revenue primarily due to the exit from seed cleaning operations and a decline in lower-margin wood fence products, while also emphasizing growth in higher-margin segments and strategic initiatives for future growth [1][5][6]. Financial Performance - Q4 2024 revenue was $13.2 million, down from $14.6 million in Q4 2023, attributed to the termination of seed cleaning operations and reduced revenues from lower-margin wood fence products [2][5]. - FY 2024 revenue totaled $47.1 million, a decrease of $7.2 million from $54.3 million in FY 2023, mainly due to a $2.4 million drop from seed cleaning operations and a $3.3 million decline in pet product sales [6]. - Gross profit margins for Q4 2024 were 14.5%, down from 20.9% in Q4 2023, while FY 2024 gross profit margins were 18.8%, compared to 22.6% in FY 2023, reflecting higher inventory costs and increased shipping expenses [7]. - Operating expenses decreased to $10.7 million in FY 2024 from $11.8 million in FY 2023, due to reduced professional fees and operational efficiencies [8]. Strategic Initiatives - The company launched a scalable process for Lifetime Steel Post® displayers and AdjustA-Gate® merchandisers, expanding into over 100 stores by the end of August 2024 [2]. - A partnership with Continental Sales & Marketing, Inc. was established to enhance distribution with key home improvement retailers, focusing on metal and composite fence products [2]. - The company added three new supply partners to diversify sourcing and reduce dependency on single suppliers, aiming to mitigate tariff impacts on steel products [2]. Management Insights - The CEO noted the company's successful navigation through post-pandemic challenges and emphasized a focus on profitable growth through strategic initiatives and innovative product launches [3][4]. - The company aims to improve transparency and investor relations through enhanced communication and participation in investor conferences [4]. Asset Management - The company listed its 11.6-acre property in Hillsboro, Oregon for sale at $9 million, with a book value of $566,022 [2]. - Inventory balances decreased to $13.2 million as of August 31, 2024, from $18.3 million a year earlier, while cash balances increased to $4.9 million from $0.1 million [11]. Earnings and Losses - The net loss for Q4 2024 was $(0.2) million, or $(0.05) per share, compared to a net income of $0.3 million, or $0.08 per share in Q4 2023 [10]. - For FY 2024, net income was $0.7 million, or $0.21 per share, compared to a net loss of $(0.0) million, or $(0.01) per share in FY 2023 [10].
Jewett-Cameron Reports Fiscal 2024 Full Year and Fourth Quarter Operational and Financial Results