Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $9.1 million compared to $8.2 million in Q2 2024, representing a year-over-year increase of 11% [29] - Net loss for Q2 2025 was $0.6 million or $0.16 per share, compared to net income of $0.5 million or $0.15 per share in Q2 2024 [35] - Gross margins for Q2 2025 were 22.1% compared to 24.1% in Q2 2024 and 23.3% in Q1 2025, indicating a decrease primarily due to a shift in sales mix to lower margin products [33][34] Business Line Data and Key Metrics Changes - Sales of metal fencing products increased due to the ongoing load-in of new lifetime steel post in-store displayers [30] - Wood fencing product sales decreased due to material constraints compared to the same period last year [31] - Sales in the pet products segment declined due to inventory congestion, although online sales for several pet products have started to pick up recently [21][32] Market Data and Key Metrics Changes - Sales at the Greenwood operating segment increased by 31% to $1.1 million compared to $0.9 million in Q2 2024, driven by tariff uncertainty accelerating customer purchases [24][31] - Inventory balances were reduced by 23% to $14.9 million at February 28, 2025, from $17.6 million at February 29, 2024 [36] Company Strategy and Development Direction - The company is focused on four key areas: growth drivers, product innovation, supply chain, and operational efficiency [40] - The successful growth in the metal fence category and traction of My Eco World products validate the execution of the strategic focus [40] - The company is enhancing systems, improving processes, and expanding supply sourcing to better serve customers [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the rapidly changing geopolitical landscape impacting importers [41] - The company is optimistic about the potential positive impact from supply chain strategies initiated two years ago, which have diversified sourcing and reduced dependence on a single supplier [19] - Future growth initiatives, particularly in the metal fence category, are expected to offset softness in the pet solutions business [33] Other Important Information - The company has no long-term debt and has access to a $6 million revolving line of credit for seasonal working capital needs [37] - The carrying balance of the seed facility is less than $600,000, with plans to monetize the asset for shareholder value [25][26] Q&A Session Summary Question: Why haven't executives purchased shares in the open market? - Management often faces restrictions on purchasing shares due to material information, which is a factor to consider [44] Question: Are there any additional questions? - No further questions were submitted during the session [45]
Jewett-Cameron Trading pany .(JCTCF) - 2025 Q2 - Earnings Call Transcript