NORTH PLAINS, Ore., July 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 third quarter and nine-month period ended May 31, 2026.
Management Discussion
"We made measurable progress again during the third quarter, even as the reported year-over-year comparison was impacted by the cancellation of a low-margin cedar fencing supply agreement which reduced revenue by over $3 million compared to the third quarter of last year," commented Chad Summers, CEO of Jewett-Cameron. "The underlying progress was led by metal fencing, where we saw improved quarterly traction across Adjust-A-Gate$(R)$, Fit-Right(R), Lifetime Steel Post(R) and Perimeter Patrol(R), supported by our focus on in-store display programs and core product expansion. Greenwood also delivered another strong quarter, reflecting continued recovery in transit-related demand and growth from non-transit customers, while pet remains soft as consumer discretionary spending remains pressured."
"We also made significant progress strengthening the balance sheet and improving liquidity," Summers continued. "Through the first nine months of fiscal 2026, we reduced inventory by more than $8 million, increased cash, reduced accounts payable and accrued liabilities, and lowered bank indebtedness. Sequentially from Q2 2026, we also materially reduced borrowings under our line of credit as receivables were collected and excess inventory was converted into cash. These actions are an important part of our broader effort to simplify the business, improve cash conversion and create greater financial flexibility as we move through the remainder of fiscal 2026."
"Margin contribution remains under pressure from tariffs, higher product costs, and logistics costs, but we have seen some stabilization from earlier in fiscal 2026 as customers accepted initial tariff-related price increases," Summers continued. "That said, stabilization does not equate to a return to pre-tariff margins, and most fence categories remain below historical norms. We continue to focus on cash conversion, completing the monetization of remaining excess non-core inventory, pursuing tariff refunds where available, and evaluating strategic partnerships, collaborations and potential divestitures involving select businesses and real estate assets. Our priority remains to unlock value from non-core assets while exiting fiscal 2026 with a sustainable long-term business model," Summers concluded.
Financial Results
Revenue for Q3 2026 was $9.9 million compared to $12.6 million in Q3 2025, a decrease of 22%. The decline was driven primarily by the reduction of more than $3 million in sales from the discontinued low-margin cedar fencing supply agreement compared to the third quarter of last year. Sales growth in metal fencing was led by Adjust-A-Gate(R), Fit-Right(R), Lifetime Steel Post(R) and Perimeter Patrol(R). Pet products remained soft as consumers continued to restrain discretionary spending and retailers remained cautious with inventory purchases. Greenwood revenue increased to $1.1 million compared to $705,000 in Q3 2025, an increase of 58%, driven by continued recovery in transit-related demand and higher sales from non-transit customers.
Gross profit margins during Q3 2026 were 18.0% compared to 15.0% in Q3 2025 and 15.7% in Q2 2026. The improvement reflected customer acceptance of initial tariff-related price increases and a higher mix of metal fencing products compared to lower-margin wood fencing. The Company continues to experience significant margin stress from tariffs, higher raw material costs, shipping costs and logistics costs, and most fence categories remain below historical norms by approximately 5% to 15%. During Q3 2026, the Company filed claims totaling approximately $904,000 for refunds of tariffs paid under the International Emergency Economic Powers Act (IEEPA). Of this amount, approximately $286,000 was recorded as a receivable as of May 31, 2026, while approximately $17,000 was rejected and may be appealed. The full amount of the refund plus interest was received subsequent to the fiscal quarter. The Company will continue to pursue available refunds; however, management cautions that the refunds represent only a small portion of the overall tariffs paid and that tariffs remain a significant ongoing cost.
Operating expenses during Q3 2026 were $2.5 million compared to $2.6 million in Q3 2025. Wages and employee benefits declined to $1.2 million from $1.5 million as the Company adjusted employee headcount to focus on core products. Year to date, wages and employee benefits have decreased by more than $1 million. For the quarter, Selling, General and Administrative (SG&A) expenses rose to $1.3 million from $1.0 million primarily due to higher professional fees related to the engagement of outside consultants in the period.
Net loss for Q3 2026 was $(814,000) or $(0.23) per basic and diluted share compared to net loss of $(650,000) or $(0.18) per basic and diluted share in Q3 2025.
Cash and cash equivalents were $1.1 million at May 31, 2026 compared to $547,000 at February 28, 2026 and $226,213 at August 31, 2025. Inventory declined to $7.5 million at May 31, 2026 from $15.9 million at August 31, 2025 as the Company sold most of its excess cedar fencing and liquidated certain older pet inventory. Bank indebtedness declined to $1.3 million at May 31, 2026 from $4.3 million at February 28, 2026 as cash generated from inventory monetization was used to reduce borrowings under the Company's credit facility. In June 2026, the Company revised and extended its borrowing agreement with Northrim Funding Services through June 30, 2027, with revised borrowing limits reflecting the Company's reduced need to maintain significant lumber inventory.
Continual Strategic Review
As previously announced, the Company is in the process of implementing its strategic realignment to promote growth and profitability following a challenging second half of fiscal 2025 and first nine months of fiscal 2026, which was marked by significant volatility primarily due to the uncertain tariff and global economic situation. Management and the Board have evaluated, and continue to evaluate, a variety of strategic options for the Company, as well as its individual operating segments and assets, that prioritize the Company's overall value. No definitive agreements have been reached as of the date of this release, and the Company does not intend to provide further updates on these discussions unless and until definitive agreements are reached.
This comprehensive strategy includes, but is not limited to:
-- Concentrating on the Company's core metal fencing products, its largest
and most successful product category, and optimizing sales of other
product categories.
-- Significantly improving operational efficiencies and cost structure with
a commitment to reduce annual operating expenses. It is the Company's
intent to exit fiscal 2026 with a business model that is sustainable in
the long term, leveraging the current value of non-core assets to fund
its core growth strategy and deliver enhanced value to shareholders.
-- Completing the monetization of remaining excess non-core inventory while
exploring collaborative alliances, business partnerships and potential
divestitures to best monetize non-core assets and business lines which
may include the Company's industrial lumber subsidiary, selective pet
assets, its wood fencing business, and sale of certain real estate
assets.
Strategic options under consideration may include mergers, acquisitions, divestitures, joint ventures and other business collaborations and partnerships that would potentially involve specific assets or business lines of the Company. The Company engages in preliminary discussions with third parties from time to time regarding a variety of potential transactions. There can be no assurance that these discussions will result in definitive agreements or the completion of any transaction.
Conference Call Details
Date and Time: Tuesday, July 14, 2026, at 4:30 p.m. Eastern time
Webcast Information: The webcast will be accessible live and will be archived at https://app.webinar.net/lKQZLJ4nPaG and accessible on the Investors section of the Company's website at https://jewettcameron.com/pages/investor-relations. To submit questions, please send them to JCTC@lythampartners.com.
About Jewett-Cameron Trading Company Ltd. (JCTC)
Jewett-Cameron Trading Company Ltd. is a trusted provider of innovative, high-quality products that enrich outdoor spaces. Jewett-Cameron Company's business consists of the manufacturing and distribution of patented and patent-pending specialty metal and sustainable bag products and the wholesale distribution of wood products. The Company's brands include Lucky Dog(R) for pet products; Jewett Cameron Fence for brands such as Adjust-A-Gate(R), Fit-Right(R), Perimeter Patrol(R), Euro Fence, Lifetime Steel Post(R), and Jewett Cameron Lumber for gates and fencing; MyEcoWorld(R) for sustainable bag products; and Early Start, Spring Gardner, Greenline(R) and Weatherguard for greenhouses. Additional information about the Company and its products can be found on the Company's website at www.jewettcameron.com.
Forward-looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words like "plans", "expects", "aims", "believes", "projects", "anticipates", "intends", "estimates", "will", "should", "could" and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict, including but not limited to the fact that our business is highly competitive, we are continually seeking ways to expand our business, we may seek additional financing or other ways to expand operations and improve margins, the uncertainties of the Company's new product introductions, the risks of increased competition and technological change, customer concentration risk, supply chain delays, governmental and regulatory risks, and uncertain tariff and transport rates, as well as the other risk factors that are set forth in more detail in our Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We may not actually achieve the goals or plans described in our forward-looking statements, and investors should not place undue reliance on these statements. Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise, except as required by law.
Investor Contact:
Robert Blum
Lytham Partners
Phone: (602) 889-9700
JCTC@lythampartners.com
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
May 31, August 31,
2026 2025
============================================ ========== ==========
ASSETS
Current assets
Cash and cash equivalents $ 1,063,801 $ 226,213
Accounts receivable, net of allowance of
$0 (August 31, 2025 - $0) 4,232,247 3,863,678
Inventory, net of allowance of $719,573
(August 31, 2025 - $1,200,000) (note
3) 7,452,636 15,885,589
Assets held for sale (note 4) 901,811 566,022
Prepaid expenses 1,186,176 1,000,439
Prepaid income taxes 204,526 180,151
Tariff refund receivable (note 12) 286,274 -
---------- ----------
Total current assets 15,327,471 21,722,092
Property, plant and equipment, net (note
4) 2,967,393 3,643,114
Intangible assets, net (note 5) 110,764 111,389
Deferred tax assets (Note 6) - 3
---------- ----------
Total assets $18,405,628 $25,476,598
============================================ ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,305,959 $ 1,510,173
Bank indebtedness (note 7) 1,328,270 2,101,835
Accrued liabilities 997,042 1,083,612
---------- ----------
Total liabilities 3,631,271 4,695,620
---------- ----------
Stockholders' equity
Capital stock (notes 8, 9) Authorized
21,567,564 common shares, no par value
10,000,000 preferred shares, no par value
Issued 3,520,113 common shares (August
31, 2025 -- 3,518,119) 830,473 830,003
Additional paid-in capital 852,816 852,510
Retained earnings 13,091,068 19,098,465
---------- ----------
Total stockholders' equity 14,774,357 20,780,978
---------- ----------
Total liabilities and stockholders'
equity $18,405,628 $25,476,598
============================================ ========== ==========
The notes are an integral part of the financial statements and are available in the Form10-Q available on the Company's website.
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Three Month Nine Month
Period Ended Period Ended
May 31, May 31,
2026 2025 2026 2025
----------- ------------ ------------ --------------
SALES $9,852,338 $12,605,344 $29,043,015 $30,927,295
COST OF SALES 8,078,128 10,716,337 26,698,473 25,528,678
GROSS PROFIT 1,774,210 1,889,007 2,344,542 5,398,617
OPERATING
EXPENSES
Selling,
general and
administrative
expenses 1,302,396 1,008,334 4,138,524 2,757,714
Depreciation
and
amortization 60,408 80,008 200,253 242,303
Wages and
employee
benefits 1,179,687 1,488,446 3,670,490 4,715,013
2,542,491 2,576,788 8,009,267 7,715,030
Loss from
operations (768,281) (687,781) (5,664,725) (2,316,413)
OTHER ITEMS
Other income - - - 306
Gain on sale of
assets 200 - 200 800
Interest
(expense)
income (75,151) (74,147) (341,759) (43,053)
(74,951) (74,147) (341,559) (41,947)
Loss before
income taxes (843,232) (761,928) (6,006,284) (2,358,360)
Income tax
recovery
(expense) 28,902 112,294 (1,113) 476,915
Net loss $ (814,330) $ (649,634) $(6,007,397) $(1,881,445)
Basic (loss)
earnings per
common share $ (0.23) $ (0.18) $ (1.71) $ (0.54)
Diluted (loss)
earnings per
common share $ (0.23) $ (0.18) $ (1.71) $ (0.54)
Weighted average
number of common
shares
outstanding:
Basic 3,520,113 3,518,119 3,519,368 3,512,733
Diluted 3,520,113 3,518,119 3,519,368 3,512,733
JEWETT-CAMERON TRADING COMPANY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. Dollars)
(Prepared by Management)
(Unaudited)
Nine Month
Period Ended
May 31,
2026 2025
------------ --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(6,007,397) $(1,881,445)
Items not involving an outlay of cash:
Depreciation and amortization 200,253 242,303
Stock-based compensation expense 776 59,926
Gain on sale of assets (200) (800)
Write-off of property, plant and
equipment 140,304 -
Deferred income tax expense 3 (561,066)
Changes in non-cash working capital
items:
(Increase) in accounts receivable (368,569) (3,120,767)
(Increase) decrease in inventory 8,432,953 (2,100,674)
Decrease (increase) in prepaid
expenses (185,737) 186,242
(Increase) in tariff refund receivable (286,274) -
Increase (decrease) in accounts
payable and accrued liabilities (290,784) 1,133,160
(Increase) decrease in prepaid income
taxes (24,375) 50,326
Increase in income taxes payable - 14,426
Net cash provided by (used in) operating
activities 1,610,953 (5,978,369)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of property, plant
and equipment 200 800
Purchase of property, plant and
equipment (93,384)
Net cash provided by (used in) investing
activities 200 (92,584)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from (repayment to) bank
indebtedness (773,565) 2,422,305
Net cash provided by (used in) financing
activities (773,565) 2,422,305
Net (decrease) increase in cash and cash
equivalents 837,588 (3,648,648)
Cash and cash equivalents, beginning of period 226,213 4,853,367 Cash and cash equivalents, end of period $ 1,063,801 $ 1,204,719
(END) Dow Jones Newswires
July 14, 2026 16:05 ET