JCTC

This article first appeared on GuruFocus. Revenue: $9.9 million in Q3 2026, down 22% from $12.6 million in Q3 2025. Gross Margin: 18% in Q3 2026, up from 15% in Q3 2025. Net Loss: $814,000 in Q3 2026, or $0.23 loss per share, compared to $650,000 loss in Q3 2025. Greenwood Sales: $1.1 million in Q3 2026, up 58% from $705,000 in Q3 2025. Inventory: Reduced to $7.5 million at May 31, 2026, from $15.9 million at August 31, 2025. Cash and Cash Equivalents: $1.1 million at May 31, 2026, up from $226,000 at August 31, 2025. Bank Indebtedness: Reduced to $1.3 million at May 31, 2026, from $4.3 million at February 28, 2026. Operating Expenses: $2.5 million in Q3 2026, compared to $2.6 million in Q3 2025. Interest Expense: $75,000 in Q3 2026, consistent with the prior year. Net Cash Provided by Operating Activities: $1.6 million for the first nine months of fiscal 2026. Warning! GuruFocus has detected 4 Warning Signs with JCTC. Is JCTC fairly valued? Test your thesis with our free DCF calculator. Release Date: July 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jewett-Cameron Trading Co Ltd (NASDAQ:JCTC) made significant progress in improving its balance sheet and liquidity, with substantial reductions in inventory and bank indebtedness. The core metal fencing business showed year-over-year growth in key product lines such as Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol. Greenwood delivered a strong quarter with a 58% increase in sales, benefiting from recovering demand from transit customers and higher sales to non-transit customers. The company successfully reduced wages and employment benefits by 21% year-over-year in the third quarter, demonstrating cost discipline. Jewett-Cameron Trading Co Ltd (NASDAQ:JCTC) received a partial tariff refund, which contributed to an improvement in gross profit margins compared to the previous year. Revenue for the third quarter of fiscal 2026 declined by 22% year-over-year, primarily due to the absence of sales from a discontinued cedar fencing supply agreement. Margins remain under pressure due to higher raw material costs, shipping, logistics, and tariffs, with most fence categories below historical norms. The pet product segment continues to face weak demand, impacting overall revenue performance. The company reported a net loss of $814,000 for the third quarter, compared to a net loss of $650,000 in the same period the previous year. Tariffs remain a significant cost burden, with the majority of tariffs related to Section 232 steel and aluminum tariffs still in effect, creating ongoing financial pressure. Q: How should investors think about the tariff refunds? A: The tariff refunds due to the Supreme Court decision on the IEEPA tariffs represent only a small portion of the overall tariffs that we paid and continue to pay. We filed claims earlier in the fiscal year totaling about $900,000, and approximately $286,000 of that was accepted and recorded as a receivable in the third-quarter. Subsequent to the end of the period, we received a payment from US Customs and Border Protection for the outstanding amount, including remaining claims that had yet to be approved at the end of the third-quarter. There was approximately $40,000 in interest and a few other post-summary corrections that were collected as well. While we're pleased to receive the refund, it's important to stress the tariffs remain a significant additional cost to the organization, and they'll continue to place significant pressure. - Mitch Van Domelen, CFO Q: What is happening in general within the pet products component of the business? A: Pet remains soft, as we stated earlier. We are approaching our Lucky Dog pet containment products with stronger demand characteristics while continuing to reduce the exposure to older slow-moving inventory. So that's pretty much our approach right now with the pet product category. - Chad Summers, CEO Q: Can you provide more details on the strategic options being considered for the company? A: Management and the Board continue to evaluate a variety of strategic options for the company, as well as for individual operating segments and assets that prioritize overall value. This includes completing the monetization of remaining excess non-core inventory, exploring collaborative alliances, business partnerships, and potential divestitures. Potential areas under review include Greenwood, selected pet assets, the wood fencing business, and certain real estate assets. - Chad Summers, CEO Q: How is the company addressing the challenges posed by tariffs and higher costs? A: Tariffs remain one of the most significant issues affecting our business. We filed claims for refunds of tariffs paid under IEEPA, and a portion of those claims has been accepted. However, the larger issue is that most of the tariffs affecting our imported steel and aluminum products remain in place. We continue to focus on disciplined pricing, reducing complexity, cash conversion, and product categories where we have stronger differentiation. - Chad Summers, CEO Q: What progress has been made in the core metal fencing business? A: During the third-quarter, Metal Fencing delivered year-over-year growth on a quarterly basis across Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol. This demonstrates that the core business is responding to the actions we have taken around merchandising, in-store display programs, and focused product expansion. Our focus remains on consistent execution, additional store penetration where appropriate, better merchandising, and disciplined expansion of our core product lineup. - Chad Summers, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company to host webcast today, July 14, 2026, at 4:30 p.m. Eastern time 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®, Fit-Right®, Lifetime Steel Post® and Perimeter Patrol®, 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®, Fit-Right®, Lifetime Steel Post® and Perimeter Patrol®. 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 [email protected]. 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® for pet products; Jewett Cameron Fence for brands such as Adjust-A-Gate®, Fit-Right®, Perimeter Patrol®, Euro Fence, Lifetime Steel Post®, and Jewett Cameron Lumber for gates and fencing; MyEcoWorld® for sustainable bag products; and Early Start, Spring Gardner, Greenline® 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 BlumLytham PartnersPhone: (602) [email protected] JEWETT-CAMERON TRADING COMPANY LTD.CONSOLIDATED BALANCE SHEETS(Expressed in U.S. Dollars)(Prepared by Management)(Unaudited) 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) JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in U.S. Dollars)(Prepared by Management)(Unaudited)

Image source: The Motley Fool. Wednesday, January 14, 2026 at 4:30 p.m. ET Chief Executive Officer — Chad Summers Chief Financial Officer — Mitch Van Domelen Chad Summers: Well, good afternoon, and thank you for joining us today. Given that we conducted our year-end conference just 45 days ago, I will keep my remarks a bit more brief. I certainly encourage everyone to listen to a replay of our December 1 call as we went into a deep dive on many aspects of the business and our strategic plans. I will dive into a few of the updates we have since that call. But first, let me provide a couple of key financial highlights to start things off. First, our metal fence business showed year-over-year growth, albeit small, for the first quarter. This is despite the challenges of tariffs and continuing negative consumer sentiment throughout the year. Our Greenwood subsidiary experienced growth as well in the first quarter. This growth was offset by decreased sales of lumber and pet, two areas in which we previously announced initiatives to sell off excess inventory due to challenging market conditions and changes in customer programs. In addition to the tariff impacts, our reported gross margins were further negatively affected by a write-down on certain pet and lumber inventory, along with liquidation sales of already reserved inventory that, in essence, carried zero margin. Without these factors, our gross margins would have shown improvement. We are also making progress in pricing alignment with customers, which, when fully implemented, should better highlight the opportunity for margin improvement going forward. Third, our wages and employee benefits dropped significantly to $1.2 million from $1.7 million as we continue to reduce our headcount. We did incur some one-time fees during the quarter associated with the engagement of consultants and increases in our lumber warehousing costs, which impacted overall OpEx. But we are making the necessary moves to align our go-forward cost structure with our efficiency strategy. So certainly, a lot of challenges in the first quarter financial results, some of which are a continuation from earlier in the calendar year. But we believe that there are positive developments that will be more evident in the quarters to come. Mitch will go into more detail on the financials in a moment. Let us turn to an update on how the initiatives we outlined on that year-end call are progressing and how we are positioning the company as we navigate a challenging operating environment. While many of the broader headwinds impacting the business over the past nine months continue to persist, we believe the actions we have taken, and continue to take, are strengthening the foundation of the company and improving our long-term outlook. At the center of our strategy remains our strong metal fence business, which continues to be our largest, most successful product category. As discussed previously, this category has demonstrated resilience across market cycles and remains an area where we believe we have a clear competitive advantage. Importantly, we saw encouraging signs of renewed momentum in this business, reinforcing our confidence in its long-term growth potential and providing optimism as global trade conditions gradually stabilize. Metal fencing will continue to be a primary focus of our operations, capital allocation, and innovation efforts, while we work to optimize sales of our other product categories. Building on the initiatives outlined in the fourth quarter, we remain focused on expanding our retail footprint and enhancing our in-store presence. We continue to work closely with retail partners to deploy additional display units, improve product visibility, and strengthen merchandising execution. Programs such as Lifetime Steel Post and Adjust-A-Gate displays exemplify how differentiated products combined with effective in-store presentation can drive engagement and adoption. While we have made meaningful progress, we continue to view our current footprint as being at an early stage relative to the broader opportunity ahead. We continue to align our costs with the prices we charge for our differentiated offerings. We have successfully renegotiated agreements with most of our customers. While this work has taken time and careful collaboration, it represents a meaningful step toward improving margin and building a more durable and resilient operating model. Operational efficiency and organizational alignment also remain key priorities. Over the past several months, we have accelerated initiatives designed to streamline the business, reduce complexity, and improve execution. Disciplined cost control and effective inventory management remain central to how we are navigating current conditions. I mentioned a moment ago the significant decrease in our wages and employee benefits, to $1.2 million from $1.7 million, as we reduce our headcount. It remains our commitment to reduce annual operating expenses by $1 million to $3 million and our intent to exit fiscal 2026 with a business model that is sustainable in the long term. Further, as we reduce our inventory in several of our business lines, mainly pet and lumber, we will reduce our warehouse expenses, which will have a beneficial impact on cost as well as bolster our balance sheet. In addition, as announced previously, we are actively working to monetize non-core assets. This includes evaluating strategic partnerships and collaborations and exploring potential divestitures along select businesses and real estate assets. These efforts are primarily focused on our industrial lumber subsidiary, selected pet assets, our wood fencing business, and sale of our seed processing and storage facility and innovation studio property. There is not a lot to report since early December given the holiday season, but we are highly engaged in advancing these initiatives in the new calendar year. We recently entered into a revised lending agreement that provides additional flexibility to support our operational realignment. This increased flexibility is important as we continue to streamline the organization, prioritize core initiatives, and thoughtfully deploy resources in support of our long-term strategy. The revised structure enhances our ability to execute planned changes while maintaining stability as we navigate an uncertain external environment. Mitch will provide more details on the specifics in just a moment. Uncertainty surrounding tariffs remains a significant factor influencing cost and purchasing behavior across the market, and weak consumer sentiment continues to weigh on discretionary spending. That said, we have made progress on a number of the strategic activities we presented in early December, and those efforts are beginning to take shape as we move forward into the new calendar year. As we look ahead, our objective is clear: to exit fiscal 2026 with a business model that is sustainable over the long term, focused on our strongest product categories, supported by disciplined operations, and positioned to deliver enhanced value to shareholders. While the external environment remains complex, we believe the progress we are making across our strategic initiatives reinforces the direction we are taking and the opportunities ahead. I will now turn the call over to Mitch Van Domelen for the financial results. Mitch Van Domelen: Thank you, Chad, and good afternoon to everyone on the call today. My comments will focus on adding a little color to the key areas and events that had material influence on the first quarter. Let us start on the revenue line. Revenue for 2026 was $8.3 million compared to $9.3 million in 2025, a decrease of 7%. Sales in our core metal fence business, our largest product category, were up slightly compared to a year-ago first quarter, despite the challenges of tariffs and continuing negative consumer sentiment, providing optimism as global trade conditions stabilize. Sales of our Greenwood industrial wood business increased 45% as demand by municipalities and transit operators continues to strengthen and were further boosted by the addition of a new non-transit industrial customer. This growth was offset by decreased sales of lumber and pet products, two areas in which we previously announced initiatives to sell excess inventory due to challenging market conditions and changes in customer arrangements. As we discussed last quarter, our primary lumber customer gave notice of their intention to transition away from our consignment arrangement in calendar 2026. We are currently in discussions with this customer, as well as other third parties, regarding the purchase of our excess lumber inventory. Gross operating profit margins during Q1 2026 were negative 12.5% compared to a positive 18.3% in 2025. The largest impact on the change in gross operating margins was $2.2 million in additional inventory write-downs taken during the current quarter, primarily related to the reduction in the fair market value of pet and lumber inventory. Without these negative impacts, we believe that our gross operating margins would be significantly improved, but are still not where they need to be. Chad mentioned, but I will reiterate, we have made strenuous efforts to adjust our selling prices to appropriately recapture the additional new tariff costs, but the rapid and unpredictable announcements of new rates have made that process extremely difficult, which is largely dependent on our customers consenting to these higher prices in a timely manner. Progress has been made, and we expect prices to normalize as the global economic situation stabilizes. Operating expenses during 2026 were $2.7 million compared to $2.6 million in 2025. Breaking it down, wages and employee benefits dropped significantly to $1.2 million from $1.7 million as we continue to reduce headcount. SG&A expenses rose to $1.4 million from $809,000, primarily due to higher professional fees related to the engagement of some additional consultants in the period and increases to our lumber warehouse costs, primarily as a result of excess inventory. As Chad mentioned, we have initiated a plan to further reduce annual operational expenses by $1 million to $3 million going forward. Primarily as a result of inventory write-downs, net loss for 2026 was $3.9 million, or $1.12 per basic and diluted share, compared to a net loss of $658,000, or $0.19 per basic and diluted share, in 2025. Finally, a few comments on the balance sheet. Our inventory balance at 11/30/2025 was $13.5 million, which compares to $15.9 million at August. As mentioned, we increased the allowance of our inventory to $3.05 million, which is up $1.85 million from August. This increase reflects a reserve adjustment of $2.2 million, partially offset by usage during the first quarter. As discussed in December, we remain in discussions with the lumber customer as well as other third parties regarding the purchase of our remaining lumber inventory. We are also working with third-party liquidators to sell our high-quality but slow-moving inventory, which will provide us with cash, clear our warehouse, and reduce warehousing and maintenance costs for these products. One of the key initiatives we have completed since our call in December was the amendment to our agreement with NorthRim to increase our borrowing capacity under the credit line. Under the amended agreement, the maximum amount of accounts receivable that NorthRim will purchase at one time is increased from 80% to 90% of the maximum eligible accounts and is not to exceed $8 million, which has increased from $6 million. Advances against the company's inventory were increased from 25% to 50% of eligible inventory, and the maximum amount the company may borrow was increased from $4 million to $6.5 million. Amounts provided by NorthRim will be secured by certain of the company's real estate assets, and proceeds from the sale of any such assets will be used to pay down the credit line, and therefore, the funding arrangement will revert to the original conditions and limits set forth prior to the recent amendments. The increase in the company's line provides us with temporary additional flexibility to provide funds to help our operational realignment and the purchase of inventory ahead of our traditionally busier spring and summer seasons. All that said, as of 11/30/2025, we had borrowed $4.2 million against our credit line with NorthRim. This is consistent with what we communicated back in our December call. As Chad discussed, we will continue to focus on our operational strengths while reducing costs where possible in our efforts to increase our sales and margins and return to profitability. In addition, we are currently evaluating several different strategies to strengthen our liquidity position, many of which we discussed during this call and are otherwise detailed in our public reports. I will now turn the call back to Chad Summers for closing remarks. Chad Summers: Thanks, Mitch, for the overview. To reiterate, our clear objective is 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 our core growth strategy and deliver enhanced value to shareholders. We remain focused on steady progress, thoughtful decision-making, and building a stronger, more focused company for the future. I want to thank our employees for their continued commitment and execution as well as our customers, partners, and investors for their collaboration during a period of significant challenge and change. We will now open the call for questions. Robert, can you let me know if there are any questions? Robert Blum: Yes, Chad, just a couple of questions here. First off, can you expand upon the renegotiated pricing agreements you have entered into? Chad Summers: Certainly. We shared previously that negotiating price increases, especially with our larger customers, takes time, and the adoption takes time for their adoption. The volatility of the changes throughout the summer, with the tariffs coming and changing so rapidly, definitely increased that challenge. However, I am pleased to report that we were successful in getting new pricing accepted to minimize the margin erosion of the increased tariffs going forward, and most of that implementation began in 2026. Robert Blum: Okay. Now one other question here. If you could provide a general breakdown of your inventory by product category. Chad Summers: Certainly. We do not disclose that detail exactly, but I can say that our metal fence remains our highest-velocity inventory, and a portion of our pet inventory has been our slow-moving inventory. We have been disclosing that for quite some time. I also shared previously in other disclosures that we have been making progress in moving some of that pet inventory. Mitch highlighted that we are beginning to move some of the lumber excess inventory. It did increase the lumber that was highlighted in our December call, to support that customer program throughout the summer, and it was a good portion of our inventory in Q1. Robert Blum: All right. Very good. Well, Chad, I will turn it over to you for any closing remarks. Chad Summers: Great. Thank you again for your interest in Jewett-Cameron Trading Company Ltd., and I look forward to communicating with you all in the months to come as we continue on these reformulated strategic initiatives. Operator: The conference has now concluded. 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See the 10 stocks » *Stock Advisor returns as of April 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jewett-Cameron (JCTC) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: Increased 16% year-over-year to $10.5 million for Q2; 5% increase for the first six months to $19.2 million. Gross Margin: Improved to 15.7% in Q2 from negative 12.5% in Q1; down from 20.1% in Q2 2025. Net Loss: $1.2 million or $0.35 loss per share for Q2; $5.2 million or $1.48 loss per share for the first six months. Operating Expenses: Increased to $2.8 million in Q2 from $2.6 million in Q2 2025; $5.5 million for the first six months, up from $5.1 million in the prior year. Inventory: Reduced to $9.6 million at the end of Q2 from $13.5 million at the end of November 2025. Cash and Cash Equivalents: $547,000 at the end of Q2, up from $226,000 at August 31, 2025. Accounts Receivable: $6.5 million at the end of Q2, compared to $3.9 million at August 31, 2025. SG&A Expenses: Increased due to higher professional fees and warehousing costs. Wages and Employee Benefits: Declined 19% year-over-year to $1.3 million in Q2. Warning! GuruFocus has detected 5 Warning Signs with JCTC. Is JCTC fairly valued? Test your thesis with our free DCF calculator. Release Date: April 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue for the second quarter increased 16% year-over-year to $10.5 million, driven by the liquidation of excess inventory and stronger sales at Greenwood. Gross margins improved significantly from negative 12.5% in Q1 to 15.7% in Q2, despite liquidation activities. The company successfully reduced wages and employee benefits by 19% year-over-year, aligning costs with current revenue levels. Jewett-Cameron Trading Co Ltd (NASDAQ:JCTC) made substantial progress in selling excess cedar fencing and pet inventory, converting stranded capital back into cash. The company remains committed to reducing annual operating expenses by $1 million to $3 million, aiming for a sustainable business model by the end of fiscal 2026. Gross profit margins declined year-over-year from 20.1% in Q2 2025 to 15.7% in Q2 2026, impacted by liquidation sales at or below cost. Net loss for Q2 2026 was $1.2 million, compared to a net loss of $573,000 in Q2 2025, primarily due to margin pressures. The company faces ongoing challenges from tariffs, which continue to create cost pressures and disrupt purchasing patterns. Higher shipping and logistics costs, along with import tariffs, have kept costs elevated, limiting the ability to pass through higher costs quickly. The liquidation of certain pet inventory and excess cedar fencing, which contributed to revenue growth, will not repeat in future periods, potentially impacting future revenue. Q: Can you quantify the volume and impact of lumber liquidation and excess pet inventory in Q2 versus Q1, and indicate how much of this inventory remains outstanding? A: Approximately $2.5 million of second quarter sales came from liquidating certain pet inventory and selling excess cedar fencing. Most of the excess lumber inventory was sold, converting stranded capital back into cash, reducing warehouse costs, and reducing the need for additional borrowing. Q: Do you have any updates on the sale of Jewett-Cameron Seed property in Hillsboro and the Innovation Studio property in North Plains? A: They remain listed for sale, and additional information will be provided when a sale document is executed. Q: Can you expand upon tariff refunds and the April 2026 Section 232 change? A: The refund related to IEEPA-related tariffs is not expected to be material, and the timing and method remain uncertain. The April 2026 Section 232 steel tariff change will calculate tariffs on the full value of imported products, potentially increasing tariff expenses. We are still evaluating the product-by-product impact. Q: What is the latest on the cost reduction program? A: We continue to reduce headcount and align the cost structure to current revenue levels. Wages and employee benefits were down 19% year-over-year in Q2 and 23% in the six-month period. We remain committed to reducing annual operating expenses by $1 million to $3 million as part of exiting fiscal 2026 with a more sustainable model. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company to host webcast today, April 13, 2026, at 4:30 p.m. Eastern time NORTH PLAINS, Ore., April 13, 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 second quarter for the six-month period ended February 28, 2026. Management Discussion “We made progress on many of the actions outlined last quarter, including selling through substantial portions of the excess cedar fencing inventory accumulated before the consignment sales agreement was terminated, liquidating a significant portion of slow-moving pet inventory, and continuing to reduce overhead and administrative costs,” commented Chad Summers, CEO of Jewett-Cameron. “Tariff uncertainty continues to create cost pressure and disrupt purchasing patterns, while soft consumer sentiment has weighed on discretionary spending creating broader impacts on the Company’s do-it-yourself and home improvement professional customer base.” “We remain focused on completing the monetization of our remaining excess non-core inventory while evaluating strategic partnerships and collaborations, and exploring potential divestitures involving select businesses and real estate assets. We remain committed to executing a dual approach of unlocking value from non-core assets while exiting fiscal 2026 with a sustainable long-term business model,” Summers concluded. Financial Results Revenue for Q2 2026 was $10.5 million compared to $9.1 million in Q2 2025, an increase of 16%. The growth in revenue was driven primarily by the liquidation of certain slow-moving pet inventory and excess cedar fencing which was acquired prior to the termination of a consignment sales agreement with a major retailer, and those sales will not be repeated in future periods. In certain cases, the Company sold inventory at, or below, carrying value to accelerate cash conversion, contributing to inventory reductions of 30% ($9.6 million vs.$13.5 million) from the prior quarter and down 36% ($9.6 million vs. $14.9 million) from a year ago. While the sales drove higher accounts receivable at period end, substantially all amounts due have since been collected and used to reduce borrowings under our credit facility since quarter end. The Company also experienced stronger sales at Greenwood as demand from transit customers continue to recover from workers returning to offices and the receipt of higher sales from non-transit customers. Within metal fencing, higher Lifetime Steel Post sales were offset by lower sales of Adjust-A-Gate and other metal fence products. Gross profit margins during Q2 2026 were 15.7% compared to 20.1% in Q2 2025 and (12.5)% in Q1 2026. The decrease was primarily due to the liquidation of certain pet inventory and surplus cedar fencing at prices at or below cost. The Company also sold higher volumes of lower margin products in the current period. The Company’s costs have continued to rise, due to higher raw material costs, higher shipping and logistic costs, and the new import tariffs which began in March 2025. While progress is being made to align costs with end-market pricing, it is still below historical levels. Operating expenses during Q2 2026 were $2.8 million compared to $2.6 million in Q2 2025. Wages and employee benefits dropped to $1.3 million from $1.6 million as the Company continued its strategic realignment and reduced its headcount. Selling, General and Administrative (SG&A) expenses rose to $1.4 million from $940,000 primarily due to higher professional fees related to the engagement of additional consultants in the period and increases to the Company’s lumber warehousing costs. Net loss for Q2 2026 was $(1.2) million or $(0.35) per basic and diluted share compared to net loss of $(573,000) million or $(0.16) per basic and diluted share in Q2 2025. 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 half 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. This comprehensive strategy includes: 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 by $1 million to $3 million. 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. The Company is pursuing opportunities to sell excess inventory, and explore collaborative alliances and business partnerships 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. The Company does not intend to provide further updates on these discussions unless and until a definitive agreement is reached. Conference Call Details Date and Time: Monday, April 13, 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/6Ar1Wn78DGa 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 [email protected]. 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® for pet products; Jewett Cameron Fence for brands such as Adjust-A-Gate®, Fit-Right®, Perimeter Patrol®, Euro Fence, Lifetime Steel Post®, and Jewett Cameron Lumber for gates and fencing; MyEcoWorld® for sustainable bag products; and Early Start, Spring Gardner, Greenline® 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 [email protected] JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) The accompanying notes are an integral part of these consolidated financial statements.

Image source: The Motley Fool. Monday, Dec. 1, 2025 at 4:30 p.m. ET Chief Executive Officer — Chad Summers Chief Financial Officer — Mitch Van Domelen Investor Relations — Robert Blum Need a quote from a Motley Fool analyst? Email [email protected] Chad Summers: Thank you, Robert, and good afternoon. I appreciate the opportunity to speak with everyone here today. As I stated in the press release, we began fiscal 2025 with a positive outlook and a focus on continuing to increase sales, improve margins, lower costs, introduce innovative products and monetize surplus assets. Throughout the first 2 quarters of the fiscal year, many of management's key objectives were achieved. Specifically, our metal fence business was on a clear growth trajectory, resulting in first half 2025 revenue growth compared to the first half of 2024. This momentum was driven by the continued success of our Lifetime Steel Post and Adjust-A-Gate products, the expansion of our innovative in-store display placements and the launch of new offerings. Further, our new supply source partners were increasing production to support our sales, lessening our dependence on China and the higher tariff impacts. With new Lifetime Steel Post displayers in place in the right stores in the right aisles, we were set for seasonally strong second half of the year when professionals and do-it-yourselfers are most active leveraging our products to enrich outdoor spaces. Unfortunately, the rapidly escalating and unpredictable across-the-board tariffs first announced in February of 2025 on sourced goods created unprecedented market turmoil, which resulted in deferring retailer purchases, straining logistics and driving higher costs, all of which significantly impacted our second half results. It was not just our ability to understand and calculate the complex and rapidly changing executive orders, but also getting our customers to accept price increases in a timely manner. For the past number of months, we have taken aggressive steps to mitigate the impacts of the tariffs in the short term. Some of these, we were able to move quickly and decisively on, including realignment of our workforce through the reassignment of some employees to new roles and an overall headcount reduction in 2025 of 27% year-over-year. Further, the actions taken over the past couple of years to institute multi-country sourcing initiatives have allowed us to somewhat mitigate a portion of these new tariff costs by shifting production away from China as the highest tariff country. We believe that retailers are becoming acclimated to the new tariff environment and the realities of new associated costs. Our customers are increasingly accepting the new prices, which will help alleviate a portion of this cost pressure going forward. We will continue to work with our suppliers and customers to find solutions to these tariff challenges while reducing our cost as much as possible. Furthermore, we are working with our customers to better align our costs with the price we charge for our products. This structural alignment is critical to ensuring our long-term profitability and minimizing the risk to the business against future volatility. While the tariffs had a short-term impact on our business during the second half of fiscal 2025, it further forced us to accelerate our internal strategic review. For years, Jewett-Cameron Trading Company had been a collection of businesses, products and brands that included pneumatic tools, seed cleaning, engineered plywood flooring as well as dog kennels, gates and fence sports. As the world evolved, we began to shift our long-term strategic focus to the business we felt could scale and deliver meaningful profits. We shut down the pneumatic tool business, closed down our seed cleaning facility and rebranded Jewett-Cameron to capitalize on our strengths of differentiation, innovation and channel presence with a focus on improving the lives of pros and do-it-yourselfers in the backyard. Our metal fence products remain our best margin-producing category and not only maintained their growth trajectory post pandemic, but matched last year's sales even with the tariff volatility this year. Jewett-Cameron fence will continue to be the primary focus of our operations and resources as we expand our in-store presence and introduce innovative products. With thousands of display units already deployed and our Lifetime Steel Post program on track to be in over 500 stores, a small fraction of its potential, we see significant opportunities to grow through broader retail placement, new channels and continued product enhancement. As global conditions stabilize, we believe a significant opportunity remains to accelerate growth and rebuild margins by deepening key partnerships, improving purchasing discipline and bringing our core fencing products to more customers than ever before. Mitch will touch more on this section -- in his section, but it's important to note that despite the challenges from tariffs for the year, metal fence products were essentially flat compared to the previous year. Let me expand on each of these actions just a bit more. First off, on the overhead and administrative expense reductions, we are executing on a plan to initially reduce operating expenses by approximately $1 million to $3 million. It is our intent to match our operating expense level with our gross profit levels to achieve profitability in the long term. Jewett-Cameron was originally founded as a lumber brokerage business and has maintained strong lumber sales for many years. In 2023, we had the opportunity to help one of our larger customers who had recently lost their primary source of Western Red Cedar fence tickets, and they asked us to assist by participating in their lumber consignment program. This program helped stabilize the year-over-year lumber sales fluctuations we were commonly experiencing as a secondary supplier to multiple big box retailers. However, the increased demand to keep sufficient quantities of inventory on hand, the inflexibility to accept price increases and longer cash conversion cycle greatly reduced the profitability of our lumber program. Under the consignment arrangement, we were required to purchase and warehouse increased volumes of inventory to support the quick replenishment of stock at our customers' distribution centers, which placed a significant liquidity burden on the company as it had to outlay cash, but would not receive payment until store supplies were replenished. Our lumber consignment customer recently provided notice of their intention to transition away from our consignment arrangement in calendar 2026. Although the consignment arrangement provided us with meaningful revenue, it was low margin, demanding of internal resources and not as profitable as we would like. We are currently in discussions with this customer as well as other third parties regarding the purchase of our remaining lumber inventory, which is -- which, as mentioned, adds warehousing and other costs to maintain. On the pet product front, as we have communicated for the past few years, demand for certain of our pet products remains slow as the pet market continues its overall weakness. As a result, we continue to have excess pet inventory at our warehouse. This excess inventory has placed a strain with working capital tied up in inventory. In recent months, we have successfully implemented programs that are beginning to accelerate sales of our pet products. Additionally, we are working with third-party liquidators to sell the remaining high-quality but slow-moving inventory, which will provide us with cash and clear our warehousing costs for these products. We are working to sell most, if not all, over the next few months. Because we expect to sell this inventory at lower prices, we have increased our allowance for obsolete inventory by $650,000 in fiscal 2025 over our allowance in fiscal 2024. Going forward, we are reviewing potential changes to our pet business as we expect the overall pet industry to remain challenging in the foreseeable future. At Greenwood, sales in fiscal 2025 rose by 2% over our sales in fiscal 2024. Although demand for transit-focused products continues to rebound from the pandemic lows as more workers return to the office, a transit seat shortage during fiscal 2025 restricted new bus construction and orders for our transit products. Demand for these transit products improved as the stat shortage was largely resolved by the fourth quarter of fiscal 2025. We have recently realigned some personnel to provide support to Greenwood by working to open new sales channels and add new customers. We believe this segment has significant growth potential in both our primary transit sector and in new industrial markets. While our Greenwood subsidiary is generally a lower risk profitable business, it is somewhat outside of our core differentiated operations and may present more value to us as part of a strategic collaboration. Thus, we are in the process of reviewing transactions that would enhance overall value for our industrial wood products subsidiary and our company. If our preliminary discussions materialize into something more definitive, we will provide appropriate additional disclosures at that time. Transitioning to MyEcoWorld. While we have seen good growth since we rebranded, we have not matched our $2.5 million in sales when we first launched our compostable dog waste bags a few short years ago. One part of our growth strategy for this line was to enter the grocery store segment. During fiscal 2025, we secured our first placement with the launch of pet waste bags into 59 tops friendly markets across the Northeast beginning in late February. However, the imposition of the new tariffs first announced in February 2025 made our products less price competitive and growth in the grocery segment much more challenging. Instead, we will be focusing on expanding upon our successful introductions into big box stores where we have existing strong supplier relationships and into foreign markets that are unburdened by the U.S. tariffs, making these products more competitive. A big value opportunity is clearly our seed cleaning property. It sits on our books for just $566,000 unencumbered, and it is our belief that the value of this facility is much higher. That said, the current sluggish economic conditions within both the nearby cities and in Greater Portland has reduced the previously perceived need among the nearby cities to quickly expand the urban growth boundary, which prioritize our property throughout the consideration process. Therefore, any inclusion of this property in expanded urban growth boundary or reclassification of the property from its limited rural industrial classification now appears less likely in the short term, given the prevailing economic and political environment in the surrounding area. Accordingly, we have relisted the property based on comps, its corner location along a major highway and its unique zoning classification at a price of $7.223 million. In addition to our seed cleaning property, we also own a property in North Plains, Oregon, we refer to as our innovation studio that contains a photo studio and meeting space, which we are listing at a price of $795,000. This property is also unencumbered. After a promising start to our fiscal year 2025, the second half experienced unprecedented challenges that required us to shift our focus. As I hope you can hear, management and the Board are highly focused on evaluating strategic alternatives that prioritize the company's and shareholders' overall value. Obviously, there can be no assurance that any strategic discussion with third parties will result in definitive agreements or the completion of any transaction, but we recognize that the status quo is not an option. We will provide further updates on these preliminary discussions if and when a definitive agreement is reached, of which there can be no assurance. As we look forward, we believe there is value to be created in our business. Our goal, first and foremost, is to create an operating structure that gets us to operating profitability as quickly as possible. While the market is still tough, we believe the best pathway forward is by focusing on our core strengths by improving the lives of professionals and do-it-yourselfers with innovative products that enrich outdoor spaces and leveraging our extensive distribution footprint with the industry's leading home improvement retail locations. Through a focused approach that allow for a better correlation between our cost and the prices we sell our products for, reduction in our exposure to carrying excess levels of inventory by adding direct import sales, which reduces our working capital needs and a lean operating structure, we can exit fiscal 2026 in a dramatically improved financial position. And then as we monetize certain noncore assets, we can deliver added value to shareholders. With that, let me now turn the call over to Mitch to review the financials in a bit more detail. We will then look to address your questions. Mitch? Mitch Van Domelen: Thank you, Chad. Good afternoon to everyone on the call today. My comments will focus on adding some color to key areas and events that had material influence on the fiscal year and the fourth quarter. Now let's start on the revenue line. For the year, total revenue was $41.3 million, down $5.8 million compared to the $47.1 million from last year. For the fourth quarter, revenue was $10.4 million versus $13.2 million for the fourth quarter of last year. Despite the impact from the tariffs, our metal fence business was essentially flat from last year. This highlights our rationale to lean into our differentiated metal fence operations as the normalization in the market occurs, and we come to the other side of this with better contractual structures with our retail customers. Looking at the remainder of our operations, our lumber sales were down due to supply challenges and profitability to support this program remain undesirably low due to the customer resistance to accept new prices in a timely fashion. As Chad mentioned, our primary lumber customer gave notice of their intention to transition away from our consignment arrangement in calendar 2026. We currently have about $5 million in excess lumber inventory, which we acquired to meet the needs of the customer under our consignment arrangement. We are currently in discussions with this customer as well as other third parties regarding the purchase of this excess lumber inventory. Our pet business was $4.3 million compared to $7.6 million last year, reflecting the overall weakness in the pet industry in general. Our Greenwood industrial wood business saw 2% growth for the year, coming in at $3.8 million compared to $3.7 million, while the sustainable or MyEcoWorld business had revenue of $800,000 versus $1.5 million in last fiscal year. Turning to gross margins. Overall, gross profit margins for the year were 15.1% compared to 18.8% in fiscal 2024. For the fourth quarter, gross margins were 8.2% compared to 14.5% in Q4 of last year. The decline in gross margins were due to a combination of higher tariff costs, higher shipping costs, expenditures on the continued rollout of in-store display units and a shift by customers towards lower-margin products during the quarter. Our 2025 margins were also negatively affected by an increase in our obsolete inventory reserve of $650,000 to $1.2 million from the $550,000 in fiscal 2024. We've made strenuous efforts to adjust our selling prices to correctly reflect the new tariff rates, but the rapid and unpredictable announcements of new rates has made that process extremely difficult, which is largely dependent on our customers consenting to these higher prices in a timely manner. Chad had mentioned this process in his remarks, but progress has been made, and we expect prices to normalize as the global economic situation stabilizes. Turning to operating expenses. As a result of our cost reduction initiatives implemented through fiscal year '25, operating expenses decreased from $10.7 million last year to $10 million this year. For the fourth quarter, operating expenses were $2.3 million compared to $2.2 million in Q4 of 2024. As Chad mentioned, we have initiated a plan to further reduce operational expenses by an additional $1 million to $3 million annually moving forward. Net loss for the year was $4.1 million compared to $722,000 net income last year. Looking specifically at the fourth quarter, net loss was $2.2 million compared to $191,000 net loss for the fourth quarter of fiscal year 2024. For the year, the impact of tariffs was the primary driver that impacted the decrease in both sales and gross margins. Please remember that the last fiscal year also included a $2.45 million gain from a settled arbitration case against one of our former distributors. Finally, a few comments on the balance sheet. Our inventory balance at August 31, 2025, was $15.9 million. And yes, that does include the obsolete inventory reserve of $1.2 million. We are currently in discussions with the lumber customer as well as other third parties regarding the purchase of the remaining lumber inventory. We are also working with third-party liquidators to sell our high-quality but slow-moving pet inventory, which will provide us with cash and clear our warehousing and maintenance costs for these products. As I communicated last quarter, based on the seasonality of our normal cash cycle, we typically see our working capital needs spike in the early spring as we transition our inventory to sales and collection. For this reason, coupled with the slower movement of certain inventories, we once again draw on our credit line at the end of fiscal year. We had drawn $2.1 million against the credit line. However, as of November 28, 2025, our borrowing under the credit line was about $4.3 million. Under the current terms of the credit line, our lender, Northrim, provides a short-term operating capital by purchasing the company's accounts receivable invoices and as a loan against our inventory position. The maximum we may borrow against the line is $6 million. We are currently discussing with Northrim to adjust the credit line to increase the maximum borrowing computation, which would provide us with additional financial flexibility and to raise the maximum amount available to us. As Chad discussed, we will continue to focus on our operational strengths while reducing costs where possible in our efforts to increase our sales and margins and return to profitability. In addition, we are currently evaluating several different strategies to strengthen our liquidity position, many of which we discussed during this call and are otherwise detailed in our public reports. With that, let me turn it back over to Chad. Chad Summers: Thanks, Mitch, for the overview. Clearly, fiscal 2025 didn't go as we or anyone else expected. The results of the first half of the year versus the second half show a tale of 2 stories: one pre-tariffs where we were in a growth trajectory and one post tariffs, which highlighted a significant slowdown in sales and impact on our gross margins. Our goal, first and foremost, is to create an operating structure that gets us to operating profitability as quickly as possible. We are executing on a plan to further reduce operating expenses by approximately $1 million to $3 million annually and through a lean operating structure, we can exit fiscal 2026 in a dramatically improved financial position. I look forward to communicating with you in the months to come as we continue to execute on these reformulated strategic initiatives. I thank you all for your continued interest and support of Jewett-Cameron, and we'll now be happy to take any questions. Robert, can you let me know if there are any questions? Robert Blum: Yes, Chad, there's a couple of questions here. First off, can you provide maybe some more details about the customer slow adoption of your price adjustments? Anything you can expand upon there? Chad Summers: Yes, absolutely. Our customer relationships are such that any of our price increases must be consented to by the customer. The customer may not agree to any increase or negotiate lower price increases and any change may only be accepted after 30 to 90 days or longer, if at all. Ultimately, many of our customers did not immediately accept higher prices for our products, which we adjusted in response to the increased costs associated with the tariffs and global trade disruption. The frequent changes to tariff rates since February also caused some of the price changes we instituted in response to become obsolete before we could even pass them on to our customers. This forced us to spend time to recalculate the new prices and begin the process of presenting them to and negotiating with our customers again, which further affected our ability to recapture our higher costs through increasing our sales prices. Robert Blum: All right. The next question here is, maybe you can discuss why your lumber customer decided to move forward without you. Chad Summers: Yes. Good question. At Jewett-Cameron, we have a long history of being a reliable secondary supplier of cedar fence boards, able to step in and fill gaps if and when primary suppliers face delays or challenges. We were honored to be able to step in and help our customer in a time of crisis when they were in need of a primary supplier for multiple distribution centers. However, as I mentioned earlier, the consignment model slowed our cash flow, reduced our margins and demanded additional internal resource to support the program, in addition to greatly increasing our lumber inventory requirements and tying up our capital. I presume their decision to switch suppliers aligns with their long-term strategic direction for the category. while the program did provide meaningful revenue for our business, we believe this transition will reduce our inventory burdens and allow us greater focus on our metal fence products moving forward. Robert Blum: All right. Maybe you could expand on your decision to focus on the metal fence business as sort of the go-forward strategy here. Chad Summers: Yes. Well, the Jewett-Cameron fence products best represent our innovative abilities to deliver functional solutions to both pros and do-it-yourselfers. For example, our patented Adjust-A-Gate family of products is virtually unrivaled as it prevents gates from sagging and provides an adjustable gate frame kit to perfectly fit the opening. Our latest innovation, the Adjust-A-Gate Unlimited, is the only complete four-corner gate on the market and its low-profile design offers a no-sag technology that is low profile, so the metal is barely noticeable on a wood gate. Developing these differentiated products that deliver value to end users is something Jewett-Cameron has excelled at throughout our history. Jewett-Cameron fence continued to grow post pandemic, as I mentioned earlier, and held steady in the midst of the tariffs this past year. We believe there's room to grow. Our existing customers are requesting us to expand our fence products into thousands of stores. Our sales team is actively pursuing expanding channels and prospecting to make our products available wherever pros and do-it-yourselfers want to buy these products. I would add too, that our fence category offers diversity of products that are well positioned for growth, such as our perimeter patrol, temporary fencing and our high-quality, low-maintenance composite Euro fence products in both existing and new sales channels. Robert Blum: All right. Thank you for that, Chad. Maybe we could talk a little bit about the time line for any asset sales. Chad Summers: Yes, asset sales. As I mentioned earlier in my prepared remarks, we are engaged in a variety of preliminary discussions, and we'll provide additional disclosures if and when definitive arrangements are entered into. Robert Blum: All right. There's a couple of additional questions here. Maybe we could expand a little bit on the increase in the credit line usage from $2 million to $4 million. Is there anything that could be expanded upon there? Mitch Van Domelen: Well, I can take that. What I'd say is to fully capitalize on reformulated business strategy, we're actively pursuing strategic financing to accelerate our business plan to fund the core growth initiatives and to ensure robust operational capacity in the face of continuing global economic volatility. So securing the capital is key to maintaining our ability to consistently purchase and deliver products, thereby supporting our customers in the normal course of our business and their business. Robert Blum: All right. Very good. Next question here is specifically as it relates to collateral for the Northrim line of credit. Is there anything you can expand upon there on what specifically is the collateral? Mitch Van Domelen: Currently, our agreement with Northrim provides for the sale of accounts receivable and an advance against current inventory. And that's how we currently have that structured and that would remain in place. Robert Blum: All right. Very good. Maybe you could discuss what range of cash do you estimate freeing up in the next 6 months from pet product liquidation and excess lumber inventory to the extent that you're able to provide any details on any of that? Chad Summers: Yes. Mitch, I can speak to that. We won't be able to disclose that beyond what we've already kind of highlighted in the 10-K. I can't guarantee the value we're going to receive for that. But again, as previously mentioned, we are motivated and we'll be able to share that at a later date. Robert Blum: All right. Very good. I think we're sort of at top of the hour here on questions. If there's any additional questions, we'll look to get these addressed directly. I guess with that, I will turn it over to management for any closing remarks. Chad Summers: Well, again, thank you again for your interest in Jewett-Cameron, and I look forward to communicating with you in the months to come as we continue to execute on these reformulated strategic initiatives. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Jewett-Cameron Trading, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Jewett-Cameron Trading wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jewett-Cameron (JCTC) Q4 2025 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: January 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jewett-Cameron Trading Co Ltd (NASDAQ:JCTC)'s metal fence business showed year-over-year growth in the first quarter, despite challenges such as tariffs and negative consumer sentiment. The Greenwood subsidiary experienced a 45% increase in sales, driven by demand from municipalities and transit operators, as well as a new industrial customer. Wages and employee benefits dropped significantly from $1.7 million to $1.2 million due to headcount reduction, aligning with the company's efficiency strategy. The company successfully renegotiated pricing agreements with most customers, which is expected to improve margins and build a more resilient operating model. Jewett-Cameron Trading Co Ltd (NASDAQ:JCTC) increased its borrowing capacity under a revised lending agreement, providing additional flexibility to support operational realignment. Revenue for the first quarter of fiscal 2026 decreased by 7% compared to the same period in 2025, from $9.3 million to $8.3 million. Gross operating profit margins were negative at -12.5% in Q1 2026, compared to a positive 18.3% in Q1 2025, primarily due to $2.2 million in inventory writedowns. Sales of lumber and pet products decreased, impacted by challenging market conditions and changes in customer arrangements. Operating expenses increased slightly to $2.7 million from $2.6 million in Q1 2025, with higher professional fees and increased warehousing costs. Net loss for Q1 2026 was $3.9 million, significantly higher than the net loss of $658,000 in Q1 2025, largely due to inventory writedowns. Warning! GuruFocus has detected 4 Warning Signs with JCTC. Is JCTC fairly valued? Test your thesis with our free DCF calculator. Q: Can you expand upon the renegotiated pricing agreements you've entered into? A: Chad Summers, CEO: We have successfully negotiated new pricing agreements with our larger customers to minimize margin erosion due to increased tariffs. This process took time, especially with the rapid changes in tariffs, but most of the new pricing was implemented in Q1 of fiscal 2026. Q: Could you provide a general breakdown of your inventory by product category? A: Chad Summers, CEO: While we don't disclose exact details, our metal fence inventory remains our highest velocity category. Our pet inventory has been slower moving, but we are making progress in reducing it. Additionally, we are working on moving excess lumber inventory, which was increased to support a customer program. Q: What were the main factors affecting your gross margins in Q1 2026? A: Mitch Van Domlin, CFO: The largest impact on our gross margins was a $2.2 million inventory writedown, primarily related to pet and lumber inventory. Without these writedowns, our gross margins would have shown improvement. Q: How are you addressing the challenges posed by tariffs and consumer sentiment? A: Chad Summers, CEO: We are aligning our pricing with customers to better manage tariff impacts and are focusing on our strong metal fencing business, which has shown resilience. We are also working on operational efficiency and cost control to navigate these challenges. Q: What steps are being taken to improve operational efficiency and reduce costs? A: Chad Summers, CEO: We have reduced headcount, resulting in a significant drop in wages and employee benefits. We are also working on reducing annual operating expenses by $1 to $3 million and are actively monetizing non-core assets to support our core growth strategy. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Company to host webcast today, January 14, 2026, at 4:30 p.m. Eastern time NORTH 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 months or so continue to persist. Uncertainty surrounding tariffs continues to pressure costs and disrupt purchasing behavior, while weak consumer sentiment has restrained discretionary spending. That said, we made progress on a number of the strategic activities we presented in early December 2025 that prioritize the Company’s overall value, including the return to growth of our core metal fencing products, our largest and most successful product category, providing optimism for the future as global trade conditions stabilize. We also made progress on renegotiating several customer agreements to better align our costs with the prices we charge for our differentiated products to improve future profitability. Further, we entered into a revised lending agreement which provides additional flexibility to fund our operational realignment,” commented Chad Summers, CEO of Jewett-Cameron. “During the first quarter, our metal fence business showed year-over-year growth and we experienced growth in Greenwood during the quarter. This growth was offset by decreased sales in lumber and pet, two areas which we previously announced initiatives to sell-off excess inventory due to challenging market conditions and changes in customer arrangements. Our reported gross profit margins were further negatively affected by a write-down on certain pet and lumber inventory, along with liquidation sales of already reserved inventory that, in essence, carried zero margin; without these factors, our gross profit margins would have shown improvement year over year. On the cost side, we continue to reduce headcount to align our operations. While the first quarter results reflect a number of challenges—some continuing from earlier in the year—we believe there are positive developments underway that will become more evident in the quarters to come.” “We are actively working to monetize non-core assets by pursuing the sale of excess inventory, evaluating strategic partnerships and collaborations, and exploring potential divestitures across select businesses and real estate assets, allowing us to sharpen our focus on our core operations and strengthen our financial position. It is our clear objective 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 our core growth strategy and deliver enhanced value to shareholders,” Summers concluded. Financial Results Revenue for Q1 2026 was $8.7 million compared to $9.3 million in Q1 2025, a decrease of 7%. Sales of the Company’s core metal fence business, its largest and most successful product category, were up slightly compared to the year ago first quarter despite the challenges of tariffs and continuing negative consumer sentiment, providing optimism as global trade conditions stabilize. Sales of the Company’s Greenwood industrial wood business increased 45% year-over-year as demand by municipalities and transit operators continues to strengthen, while revenues were further boosted by the addition of a new non-transit industrial customer. This growth was offset by decreased sales in lumber and pet, two areas which the Company has previously announced initiatives to sell excess inventory due to challenging market conditions and changes in customer arrangements. Gross profit margins during Q1 2026 were (12.5)% compared to 18.3% in Q1 2025. The largest impacts on the change in the Company’s gross profit margins was due to $2.2 million in additional inventory write-downs taken during the current quarter primarily related to pet and lumber inventory. Operating expenses during Q1 2026 were $2.7 million compared to $2.6 million in Q1 2025. Wages and employee benefits dropped significantly to $1.2 million from $1.7 million as the Company continued to reduce its headcount. Selling, General and Administrative (SG&A) expenses rose to $1.4 million from $809,000 primarily due to higher professional fees related to the engagement of additional consultants in the period and increases to the Company’s lumber warehousing costs. Net loss for Q1 2026 was $(3.9) million or $(1.12) per basic and diluted share compared to net loss of $(659,000) million or $(0.19) per basic and diluted share in Q1 2025. Key impacts on net loss for the quarter were a $2.2 inventory write-down and engagement of additional consultants, as well as increases to the Company’s lumber warehousing costs. As of November 30, 2025, the Company had borrowed $4.2 million against its credit line with Northrim Funding Services (“Northrim”). In December 2025, subsequent to the end of the first quarter, the Company amended its original agreement with Northrim to increase its borrowing capacity to $8,000,000, up from $6,000,000. In addition to increasing advance rates against accounts receivable (from 80% to 90%) and inventory (from 25% to 50%), amounts provided by Northrim will be secured by certain of the Company’s real estate assets. Proceeds from the sale of any such assets will be used to pay down the credit line and thereafter the funding arrangement will revert to the original conditions and limits set forth prior to the recent amendments. The Company believes that the increase in the Company’s credit line provides it with additional flexibility to provide funds to help our operational realignment and the purchase of inventory ahead of our traditionally busier Spring and Summer seasons. Continual Strategic Review As previously announced on December 1, 2025, the Company has begun implementation of its strategic realignment to promote growth and profitability following a challenging second half of fiscal 2025 and first quarter of fiscal 2026, which was marked by significant volatility primarily due to the uncertain tariff and global economic situation over the past several months. 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. This comprehensive strategy includes: 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 by $1 million to $3 million. 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. The Company is pursuing opportunities to sell excess inventory, and explore collaborative alliances and business partnerships 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. The Company does not intend to provide further updates on these discussions unless and until a definitive agreement is reached. Conference Call Details Date and Time: Wednesday, January 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/j7W3pWOp41Q 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 [email protected]. 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® for pet products; Jewett Cameron Fence for brands such as Adjust-A-Gate®, Fit-Right®, Perimeter Patrol®, Euro Fence, Lifetime Steel Post®, and Jewett Cameron Lumber for gates and fencing; MyEcoWorld® for sustainable bag products; and Early Start, Spring Gardner, Greenline® 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 [email protected] JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) Subsequent events (Note 14) The accompanying notes are an integral part of these consolidated financial statements. JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF OPERATIONS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) The accompanying notes are an integral part of these consolidated financial statements. JEWETT-CAMERON TRADING COMPANY LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. Dollars) (Prepared by Management) (Unaudited) Supplemental disclosure with respect to cash flows (Note 13)

Image source: The Motley Fool. Tuesday, January 14, 2025 at 4:30 p.m. ET Chief Executive Officer — Chad Summers Chief Financial Officer — Mitch Van Domelen Need a quote from a Motley Fool analyst? Email [email protected] Chad Summers, Jewett-Cameron's Chief Executive Officer; and Mitch Van Domelen, the Company's Chief Financial Officer. At the conclusion of today's prepared remarks, we'll open the call for a question-and-answer session. [Operator Instructions]. Before we begin with our prepared remarks, please note that statements made by the management team of Jewett-Cameron during the course of this conference call may contain forward looking statements within the meaning of U.S. Securities laws. Forward looking statements describe future expectations, plans, results or strategies and are generally preceded by words such as may, future, planned, will, should, expected, anticipates or similar words. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those identified in the forward-looking statements as a result of various factors and other risks identified in the Company's 10-K for the fiscal year ended August 31, 2024 and other filings made with the Securities and Exchange Commission. An audio recording and webcast replay for today's conference call will also be available online on the Company's Investor Relations page. With that said, let me turn the call over to Chad Summers, Chief Executive Officer for Jewett-Cameron. Chad, please proceed. Chad Summers: Thank you, Robert, and good afternoon to all of you. I'm excited to speak with you all again today. One of our key strategic initiatives this past year has been to improve the visibility of Jewett-Cameron in the investment community, and today's call is an important part of that effort. During our first ever earnings call back in November, we spent quite a bit of time walking through the history of Jewett-Cameron as well as our initiatives to drive shareholder value in the years to come. For today's call, I will provide updates on those initiatives and how we are positioned to execute on our ultimate goal to drive profitability in the business and improve shareholder value. As Robert mentioned, Mitch Van Domelen, Jewett-Cameron's CFO, is with me again today and will dive into the key drivers of our first quarter financial results. And at the conclusion of our prepared remarks, we'll be happy to answer any questions you might have. Over the past few years, we have been guided here at Jewett-Cameron by our mission to improve the lives of professionals and do-it-yourselfers with innovative products that enrich outdoor spaces. We offer quality products that solve problems and fulfill unmet needs at competitive prices. As we mentioned during our last call, Jewett-Cameron was founded over 70 years ago and was owner-operated and managed for nearly 40 years. The Company was lean and opportunistic acquiring an eclectic combination of businesses, but we had aging technology and operational processes unable to scale. It has been my focus since taking over as CEO a few years ago to become a more focused company that can scale profitably. This has required us to aggressively improve our systems and processes in everything from supply sourcing to product marketing, all of which are well underway. Chad Summers: Let me provide some updates on these initiatives, and let's start with the end in mind, profitable sales growth. One of our biggest near-term initiatives to drive profitable sales growth has been our innovative in-aisle displayers in major home centers, including the two largest in the United States, The Home Depot and Lowe's. With approximately 4,000 stores across the country between Home Depot and Lowe's, we are able to meet the needs of professionals and DIYers wherever they most want our products. We first introduced our innovative Adjust-A-Gate product years ago, and we're able to place them conveniently in displayers adjacent to the lumber aisles where people were purchasing their wood fence supplies. Last year, we were successful in developing an in-aisle displayer for our Lifetime Steel Post to also be placed in the lumber aisle. This has opened up a tremendous growth opportunity to better serve anyone building a fence with the option to use a Lifetime Steel Post, which can be driven directly into the ground in many parts of the country. If installed similar to a traditional fence post, it requires a smaller fence post hole and less concrete and will never rot, which is an issue with treated wood fence post overtime. Chad Summers: So let me add a little more color on how we anticipate these fence product displayers to contribute to our second half results fiscal 2025. An in-aisle displayer is similar to a vending machine in that they are loaded up with our product and they sell, and as they sell, more product is replenished or reloaded into them. Getting these displayers in the right stores, in the correct locations, especially ahead of the spring and summer seasons is expected to drive increased sales volume. Typical fence projects often include 1 or 2 gates and dozens of fence posts, so it is critical to replenish or reload the displayers with more product to meet the need the fence builders. The way these displayers impact our financial performance is initially when they are loaded into the store with a displayer and the products loaded in them. In order to meet the demand from our customers for these displayers for the upcoming season, we produce them domestically. While this accelerated getting those displayers into the stores in various reasons, it came at an increased cost per displayer, which impacts our gross margin to some extent. For the Adjust-A-Gate products, as I mentioned, we have thousands of in-aisle displayers across primarily Home Depot and Lowe's. Some of these have been in use for a dozen years or more, while others have, relatively new. We also will move them from store-to-store based on regional demand. Overall, we installed over 1,500 new displayers in just the last six months. For the Lifetime Steel Post displayers, we are just getting started. Our first in-aisle displayers were only installed in May of 2024 in Southern California. In the five months from May through August, we installed displayers in approximately 100 stores up and down the West Coast and Northwest region. In the three months of our Q1 2025, which runs from September through November, we installed another 100 displayers and expect to be in over 300 stores within the next few months. Growth in overall number of displayers particularly on the Lifetime Steel Post side has been and will continue to be a key driver to 2025 sales growth in Lifetime Steel Post. Load-in sales are only part of the equation. Pull-through demand from the consumers is essential to have these stores order replenishment posts to restock these displayers. That's why it's important to evaluate the dollar-based and unit-based point-of-sale or POS data. POS data for Adjust-A-Gate and LTP products in key retailers highlighted strong end-market year over year growth during Q1, highlighting the success of the Company's display strategy. This demonstrates the effectiveness of our in-store displays and is expected to lead the replenishment orders in the second half of fiscal 2025 in addition to loading in more displayers in more stores. Beyond basic marketing initiatives with our new sales representative partner Continental Sales & Marketing, whom we discussed last quarter, we also are working on improved presentation of the displayers to drive increased gate sales. This improvement, coupled with our strategic advice on accelerating the rate of displayer adoption and assisting us on optimal location placement, has proven incredibly valuable to us in the last few months. As I mentioned, coupling display replacements with improved marketing of our products to enhance pull through of product is key. Early indicators of POS data from our customers is showing incredible traction. One further dynamic is the seasonality of our business. As you can imagine, more people, particularly in the northern states where it's cold and wet, are doing their fenced installations in the spring summertime. However, there are those states in the Sunbelt that generally maintain a more year-round demand. The ability to get the in-aisle displayers up and running as effectively as possible heading into the spring summer months, which corresponds with the back half of our fiscal year, is a key objective for our growth this year and one we believe we are on track to achieve. And let me just leave you with one final quote from Mike Siuda, our VP of Sales and Marketing, who has worked in the industry for years at other reputable building product suppliers on the success of our LTP, our Lifetime Steel Post displayers and products, “We have never seen big box demand for a product like this.” Our sales rep, Continental, has echoed this statement. Needless to say, I am pleased with this progress. I know I went into a bit more detail there than I might normally on the dynamics of an in-aisle display, but I did feel it was important to understand each of the critical success components and how we are executing on each one of them to set ourselves up for not just the second half of fiscal 2025, but for years to come. It is worth mentioning that our supply chain initiatives to multi-source our production with strategic sourcing partners in various countries has progressed well and created less dependence on one specific supply source for any single product or component. This has been a major project over the last two years and we believe, has successfully mitigated the impact of China tariffs, which helps ensure our continued competitiveness of our product pricing. Chad Summers: Let's transition to a few other key strategic initiatives, starting with product innovation. In December, we launched our new Adjust-A-Gate Unlimited. This complete gate kit redefines adaptability and simplicity for gate construction and is designed with flexibility and customization at its core. This innovative gate kit features a low-profile corner bracket solution that allows for fully adjustable gate designs, empowering professionals and DIYers with greater control to create gates tailored to their unique needs. Its innovative design provides all the benefits of a steel no sag gate frame with minimal visibility of the steel. So, the focus is on the gate, not the frame. The kit supports both horizontal and vertical gate designs, and accommodate sizes up to 72 inches high and 84 inches wide. Additionally, its patent pending design with anti-sag technology ensures gate stay straight and secure over time, solving one of gate owners' most common challenges. With its durable steel corner brackets, all necessary hardware, and a comprehensive installation guide, the Adjust-A-Gate Unlimited is designed for users of all skill levels. Its straightforward installation process can be completed in very little time. Beyond its technological advancements, the Adjust-A-Gate Unlimited is sold as an all-in-one complete integrated system at a competitive price point compared to other gate kits that require purchasing additional parts such as latches, hinges, and other components to complete a gate project. This is just the first of multiple new products planned for the fiscal year. I am pleased that we continue to be at the forefront of innovation to enrich outdoor spaces. As you can hear, we are operating at a high level within our metal fence category. Overall, in Q1, our metal fence solutions were up 19% compared to Q1 of last year. We are seeing growth in customer demand, growth in new stores carrying our in-aisle displayers, and we are continuing to bring exciting new products to the market. The stage is set for an improved fiscal 2025. Chad Summers: Beyond our metal fence products, let me quickly discuss a few of our other initiatives. Within our wood fence products, where for many years we've served as a secondary supplier of cedar fence boards to major home centers, we are starting to see the availability of western redcedar come back, allowing us to get back on track with a book from a booking standpoint. Overall, we saw a 4% year-over-year growth during Q1. Within our pet containment products, we continue to see softness within the retail channel following the surge from the pandemic in pet ownership. We are working on various marketing strategies and are meeting with key customers to better understand the market and how we can ensure maximum effectiveness in product placements. We are also launching a new and improved Lucky Dog chain link kennel in a few months to address common complaints of chain link kennels around quality and assembly difficulties, which we believe can help boost this area for us. Within our sustainable products category led by our proprietary MyEcoWorld compostable and post-consumer recycled or PCR bag products, the financial results show the impact from a large load in we received from a major customer last year and the absence of that similar load in this year. We've been working to diversify this reliance on one customer with strong headway being made with large and regional retailers to increase in store placements. We are currently scheduled for load-ins in multiple regional grocery chains in calendar year 2025 and are also seeing some positive response from international customers as well. Progress is certainly being made, which I hope to be able to share more with you about in the coming months. And finally, at Greenwood, we continue to normalize from the higher demand we saw a year ago as municipalities and transit operators caught up on deferred vehicle production post the pandemic. We have added two new traders to our team so far this year and we look forward to their additional sales contributions. This business remains steady at current levels as we now operate in a much more normalized environment which we expect will continue going forward. Chad Summers: And before I turn it over to Mitch to review the financials in more detail, let me provide an update on the asset sale of our seed processing facility. As a reminder to those of you who may be new to the Company, as part of the conglomeration of the various businesses the Company has had over the years, we ran a seed cleaning facility based here in Oregon. It's in a great location with high quality warehousing space readily available. From an operation standpoint, we shut down the cleaning operation in August of 2023 and wrapped up seed storage near the end of fiscal 2024. The 11.6-acre property is currently on the market, and it is our belief that the value we will receive for this will be well north of what is currently on the bookstore, and thus it will be additive to our overall shareholder value. Currently, we have it listed for sale at $9 million although no assurance can be given that, that will be the price we receive for it, and it sits on our books for less than $600,000. We are in preliminary discussions with various parties, but nothing thus far has progressed to a point where further details are warranted. While we wait for a potential ideal party to sell the facility to, we may elect to lease part of the space to generate income in the near term. But it's important to note that our goal is to fully monetize the asset and put the capital to best use once sold for the benefit of the Company and our shareholders. Chad Summers: With that said, let me turn it over to Mitch for a detailed review of the financials. I will then provide some brief closing comments and turn it over for any questions. Mitch? Mitch Van Domelen: Thank you, Chad, and good afternoon to everyone on the call today. My comments will focus on adding color to the key areas and events that had material influence on the quarter's performance. I will of course answer any questions that you might have later on this call during the Q&A period. Let's start with the revenue line. I'd like to remind our long-time investors and more recent shareholders that our revenue tends to be very seasonal with the majority of our impactful sales occurring in our third and fourth fiscal quarters, March through August. As such, Q1 and Q2 sales results are slower than the second half of the year. Revenue for the first quarter of 2025 was $9.3 million compared to $9.8 million in 2024. As Chad mentioned, sales of metal fencing products increased 19% compared to Q1 2024, driven by the ongoing load-in of new Lifetime Steel Post in store displayers. Wood fencing product sales increased by 4% compared to the same period. Overall, fence products represent approximately 79% of our Q1 sales. Demand for pet products continues to be weak as sales in the current quarter declined by 31% compared to Q1 of 2024. Sales of compostable products were also down in this quarter as a major customer made a large purchase to take advantage of a regional promotion of our compostable bags in the prior year's quarter, which was not repeated this year. Sales at our Greenwood operating segment for the current quarter were $0.8 million compared to $1.1 million in Q1 of 2024, as the prior year's period was boosted by initial higher demand from municipalities and transit operators catching up on deferred vehicle production post pandemic. As Chad mentioned, as we look to fiscal 2025, the growth initiatives we have implemented, particularly the Lifetime Steel Post displayer load-in and anticipated replenishment orders, anticipated reorders from the increased and improved marketing of Adjust-A-Gate displayers and onboarding new regional grocery retailers carrying our sustainable bags is expected to offset softness in our Pet Solution business. Turning to gross margins. Gross profit margins for Q1 2025 were 18.3% compared to 19.9% in Q1 of 2024, also compared to 14.5% in Q4 of 2024. The decrease in gross profit margins from the year ago period primarily relate to higher shipping and logistics costs, particularly in sharply higher ocean shipping container rates. The high cost of additional in-store display units produced domestically and deployed during the current quarter also increased our cost compared to the first quarter of fiscal 2024, but we believe this to be an investment in our future growth strategy. Initiatives to improve gross margins, including new supply chain partners and enhanced pricing strategies are expected to result in margin improvements in future quarters. Turning to operating expenses. Operating expenses during the first quarter of 2025 were $2.6 million compared to $2.7 million in Q1 of fiscal 2024. The decrease is primarily due to a reduction in professional fees from the prior year due to the settlement of legal matter as well as initiatives taken by the Company to implement operational efficiencies and realigning headcount to new business practices. As a reminder, during first quarter of last year, we successfully settled a multiyear arbitration dispute with a former distributor and received a onetime cash payment of $2.45 million in October of 2023. This payment offset legal fees and some of the losses in connection with the arbitration. You'll see this presented as a net amount in the income statement. Loss from operations for Q1 2025 was $0.9 million compared to $0.8 million loss in Q1 of fiscal 2024. Net loss for Q1 of 2025 was $0.7 million or negative $0.19 per basic and diluted share compared to net income of $1.3 million or $0.37 per basic and diluted share in Q1 of 2024. Again, the change in that loss is primarily a result of the legal settlement received in Q1 of last year and other below the operating line items. As Chad mentioned, it is our expectation with the initiatives in place to drive sales, improve gross margins, right-size our operating structure, and move the Company towards profitability in fiscal 2025. Finally, a few comments on the balance sheet. As part of our initiatives to improve working capital, we’ve reduced our inventory balances by 23% to $13.5 million at November 30, 2024 from 17.5% at November 30, 2023. Our cash balance at November 30, 2024 was $3 million compared to $3.6 million at November 30, 2023, and we currently have no long-term debt. I do want to note that we have access to a $6 million revolving line of credit that we use for seasonal working capital needs. Based on the seasonality of our normal cash cycle, we typically see our working capital needs spike in the early spring as we transition our inventory to sales and thus collections. Our credit facility is currently available to support these seasonal working capital needs. Finally, our total stockholders' equity at November 30, 2024 was $24.2 million or $6.90 per share. And as Chad touched on, our carrying balance of the seed processing facility is less than $600,000 whereas we currently have it listed for $9 million for sale. The successful sale of this real estate and facility would dramatically improve shareholder equity. We hit some of those topics from a pretty high level and covered them pretty quickly, but we're happy to answer any additional questions you might have. So let me turn it back over to Chad. Chad Summers: Thanks, Mitch, for the detailed overview. Let me just wrap things up here with a few key comments and takeaways. First, our focus is keenly on driving shareholder value. To accomplish this, we have instituted key strategic initiatives in four key areas: growth drivers, product innovation, supply chain and operational efficiency, and asset monetization. There is more work to be done. However, I believe we are better positioned today to deliver on the opportunity that Jewett-Cameron represents to our customers, our retail partners, and shareholders than at any point in our recent history. I'm excited about, our future, and I'm appreciative of the support from our shareholders. With that, let me turn the call over to the operator for any questions. Operator? Operator: Thank you. We will now begin the question-and-answer session. [Operator Instructions] Robert Blum: Chuck, while we wait to see if anyone comes into the queue, I've got a couple of webcast questions. And just a reminder to everyone on the webcast, if you'd like to submit a question, you can go ahead and submit it through the Ask-a-Question box on the webcast player. Chad, I think you touched a bit on this, but maybe if you can just expand or reiterate anything about your plans for use of capital in the sale of the 11.6-acre property? Chad Summers: Yes. Thank you for that question. And I wish I could say more than what I've shared in my prepared responses, but it's too preliminary now with the people and the opportunities that we're talking to. But we will, put it to good use for both the benefit of the Company and to our shareholders, but that strategy is being discussed and evaluated among the Board members. Robert Blum: Okay, great. Looks like maybe just a couple of other questions here. Again, if you'd like to ask a question, go and submit it through the Ask-a-Question box there. Can you talk about any other retailers besides Home Depot and Lowe's that are looking to add where you're looking to add displayers? Chad Summers: Yes. Great question. We are in conversations and have been over the years. Our focus on the prepared remarks tend to focus more on the Home Depot and Lowe's outlets where they are en masse. We do have displayers in other retailers that have a physical presence, and the new Adjust-A-Gate Unlimited also provides opportunities for more displayers because they come in a much smaller package. So, regional and other retailers that have a space where it makes sense, we are talking to, about getting those displayers again where it makes sense. Not every retailer, especially if they're smaller, has room for in-aisle displayers. So that is a consideration. Robert Blum: Okay, great. Again, one final reminder here. If you'd like to ask a question through the Ask-a-Question box, please go ahead and submit it there. Can you just talk a little bit, Chad, about so little insider ownership of the Company shares, maybe just insider ownership in general, any comments there? Chad Summers: Yes, sure. Our company has definitely gone through some changes in recent years. Over the last 40 years leading up to my arrival, it was largely held by two primary insiders or owners and management of the firm. One of them passed away in 2019, and the other retired a few years later and sold off his shares as he went off into retirement. And that created a big shift in the history of the, internal share ownership. We have an RSA plan where executives are awarded shares as part of their bonus strategy and the opportunity outside of the blackout periods for other employees and executives to also purchase shares as well. So, the share ownership internally has shifted dramatically in the last five years. Robert Blum: Okay, great. Showing no further questions here, Chad. I'll go ahead and turn it back over to you for any closing remarks. Mitch Van Domelen: Is that to me or to Chad? Robert Blum: To Chad, to yourself for any closing remarks that you might have there. Chad Summers: Yes. All right. Thank you. Again, I want to thank you all for your continued interest and support of Jewett-Cameron. We have some great opportunities ahead of us, and I believe we are in a great position to achieve our goals. And so, I just want to thank you all again for your time and participation today and wish you all a very good afternoon. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. 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Image source: The Motley Fool. Monday, July 14, 2025 at 4:30 p.m. ET Chief Executive Officer — Chad Summers Chief Financial Officer — Mitch Van Domelen Managing Partner, Lytham Partners — Robert Blum Operator: Good day, and welcome to the Jewett Cameron Third Quarter Fiscal Year twenty five Conference Call. All participants will be in a listen only mode. Please note that this event is being recorded. I would now like to turn the conference over to Robert Blum, Lytham Partners. Please go ahead, sir. Robert Blum: Thank you very much, Nick, and thank all of you for joining us to discuss, as the operator indicated, Jewel Cameron's fiscal year twenty five third quarter financial results, and this is for the period ended 05/31/2025. Us on the call representing the company today are Chad Summers, Jewel Cameron's Chief Executive Officer and Mitch Van Domelen, the company's Chief Financial Officer. At the conclusion of today's prepared remarks, we'll open the call for a question and answer session. If you are listening to the webcast player and would like to ask a question, you can submit your question through the Ask a Question feature in the webcast player. We'll do our best to get you as many questions as possible. Before we begin with prepared remarks, please note that statements made by the management team of Jewett Cameron during the course of this conference call may contain forward looking statements within the meaning of U. S. Securities laws. Forward looking statements describe future expectations, plans, results or strategies and are generally preceded by words such as may, future, plan, will, should, expected, anticipates or similar words. Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events or results to differ materially from those identified in the forward looking statements as a result of various factors and other risks identified in the company's 10 ks for the fiscal year ended 08/31/2024, and other filings made with the Securities and Exchange Commission. A webcast replay for today's conference call will also be available online on the company's Investor Relations page. With that said, let me turn the call over to Chad Summers, Chief Executive Officer for Jewett Cameron. Chad, please proceed. Chad Summers: Thank you, Robert, and good afternoon. I appreciate the opportunity to speak with everyone here today. Let's jump right into it. Clearly, the topic of conversation for us and all other retailers that source a portion of their product from overseas has been the impact from the tariffs, which were announced beginning earlier this year. At a high level, the uncertainty surrounding tariffs negatively impacted our third quarter results as many retailers and consumers have deferred purchases of imported metal products until further clarity on prices is available. Further, the rapid and unpredictable changes to rates, product components impacted and which countries are affected have stressed key logistic lines and increased costs. Fortunately, we have been proactive to implement a variety of initiatives designed to mitigate, in part, the impact from the rapidly evolving and volatile tariff environment. Chad Summers: The decisive actions we have taken to manage what is within our control has significantly improved the position of the company from where it would have been without these strategies, some of which began nearly two years ago. It's our belief that resolution to the ongoing tariff negotiations will provide a pathway to more normalized customer purchasing patterns in the future, which will once again highlight the numerous positive initiatives we have implemented to once again drive growth and efficiencies at Jewett Cameron. Mitch will provide a detailed breakdown of the quarterly results, but a couple of key points I will make up top here is that while the revenues were down 21% for the quarter as a whole, our metal fence business was only down 4% from the year ago period as we were able to somewhat mitigate the tariff impact through the expansion of our lifetime steel post business, which was up 85 in product sales compared to Q3 of twenty four. We once again incurred increased the number of LTP displayers placed through May 2025, with total displayers up by approximately 88% compared to the end of the period November 2024 when we expanded our focus on this initiative and 21% compared to the February 2025. Chad Summers: Today, over four twenty two displayers have been installed at the Home Depot and Lowe's stores, allowing the company's products to be highly visible and easily accessible for professionals and do it yourselfers. As a reminder, metal fencing represents more than half of our overall business. This relatively positive progress given the tariff backdrop within our metal fence business was offset by continued weakness in our pet business, which was down 44% compared to last year's Q3, but up slightly from the most recent sequential quarter. The buildup in the supply chain post pandemic has continued to impact that component of our business as it has for the past year and a half or so. We also saw a pullback in our wood fence or lumber business during the third quarter. Chad Summers: Here, we experienced interruption to our ability to fulfill our cedar fence orders ahead of the spring season. We have since expanded our supplies and are on track to meet all demand in July and are well positioned to support this program through the remainder of the calendar year. We have also implemented important process changes to prevent shortages like this in the future. Overall, I think it's a fair statement that the delta between us reporting a profit during the third quarter and the $650,000 loss which was reported can be directly related to the combination of the impact from tariffs, which deferred customer purchases coupled with lower gross margins primarily due to higher tariffs and transportation costs. To that point, as a bit of a reminder, tariffs on Chinese goods were originally subject to 25% tariff implemented in 2019. Chad Summers: But more recently, additional China specific tariffs were added in February, March and April 2025, with further increases announced in May 2025. The diversification of our suppliers to additional countries beyond China successfully allowed us to initially mitigate, to some extent, some of the recent tariff increases as those new suppliers outside of China were primarily subject only to the universal 10% baseline tariff rate as a floor. However, some nations including those where our new suppliers are located have been notified of possible additional country specific tariffs, which are subject to further negotiation. Steel and aluminum imports were initially assigned a global 25% tariff rate. Subsequently, that rate was doubled to 50% as of June 4, just five days after it was announced on 05/30/2025, leaving importers such as Stuart Cameron with no time to plan or adjust import shipments or costs. Chad Summers: As a result of these wide and unpredictable new tariffs, these new rates and threats of further significant increases, many retailers and consumers have deferred purchases of imported metal products until further clarity on prices is available. We have made strenuous efforts to adjust our selling price to correctly reflect the new tariff rates, but the rapid and unpredictable announcements of new rates over the last six months has made that process extremely difficult. It takes time to compute the new prices, communicate that to the customer and have them accept for future shipments. Because the rates have changed frequently, many of our new prices have become obsolete before they were able to take effect. Therefore, it has caused our customers to pause their purchasing until they receive greater certainty on tariffs as they are reluctant to make long term purchases at contracted prices that may decline based on the rapidly changing tariff rates. Chad Summers: The current trade negotiations occurring between The United States and multiple nations to set country specific tariff rates provides optimism that clarity and stability on final rates may be forthcoming. We have consulted with experts and legal counsel to accurately interpret how to properly apply the rates to our products to ensure compliance and to make sure our prices remain competitive. Although consumers will eventually adjust their buying to accept higher prices over time, it will likely continue to dampen demand in the short term until consumers and retailers become more accepting of the higher prices. But as I said at the beginning, we have been proactive to implement a variety of initiatives designed to mitigate in part the impact from the rapidly evolving tariff environment. First is the development and utilization of new strategic sourcing partners to create less dependence on the countries that carry the highest tariffs. Chad Summers: We began these broader supply chain initiatives about two years ago now to multi source our production. Our initial dependence on a single supplier had been eliminated and our expansion to sourcing countries outside of China have helped us to offer competitive pricing and to some extent lessen the impact of the current tariff situation. Our multi sourcing strategy now spans suppliers in Vietnam, Malaysia and Bangladesh, further strengthening our supply chain flexibility and resilience. The effort and fortitude to tackle multi sourcing hundreds of products into various countries starting in 2023 cannot be overstated, which has not been an easy task, but has given us options that many other importers may not have at their disposal at a time of rapidly changing tariff policies. We remain committed to building a resilient, cost effective supply chain that allows us to navigate evolving tariff and macroeconomic environments while continuing to serve our customers with high quality competitively priced products. Chad Summers: Second, we are developing strategies to implement prices increases across our product portfolio to better align costs. As I mentioned a moment ago, us and many other retailers in The United States are trying to rapidly navigate efforts to adjust our selling prices to correctly reflect the new tariff rates, but the rapid and unpredictable announcements of new rates over the last six months has made that process extremely difficult. Fortunately, I believe we have enhanced our pricing management process to respond quickly to the rapidly changing environment to provide our customers with accurate pricing adjustments inclusive of these tariff costs. Third, we are evaluating and implementing process improvement initiatives and technology to drive efficiencies, enhance cash flow and improve customer satisfaction. And finally, we have enacted operational efficiency efforts through a series of organizational changes, including an approximate 20% reduction in personnel implemented in April of twenty five. Chad Summers: We have been extremely proactive in identifying and executing meaningful changes that will increase productivity and reduce structural costs without compromising quality or service. So while tariffs have created a near term headwind for us, and we have been proactive in our approach to mitigate, in part, the impact as best we can, longer term, it is our expectation that we will return to a more normalized state, and it is the broader growth, efficiency, product innovation and asset monetization strategies that will ultimately drive the company going forward. A few key updates here. As I already mentioned, our LTP, Lifetime Steel Post Displayer Expansion program has been a key growth driver for us. We saw 85% product sales growth during the most recent quarter. Chad Summers: I will state that we have temporarily paused adding new display units to prioritize our existing inventory to support existing display replenishment demand. We are actively managing production capacity constraints and logistical issues from new factories outside of China, which naturally impact our previous schedule of deliveries designed to support continued display expansion efforts. A quick update on our sustainable solutions. Our transition from the Lucky Dog poop bag brand continues toward Myeco World. The ability to more broadly brand these bags beyond the pet market is a key component to how we can grow this area to consumers who continue to look for high quality, sustainable products as alternatives to disposable, traditional single use plastics. Chad Summers: MyECO World sales for the current nine months are up 265% over the comparative period in fiscal twenty four. We will continue to focus on expanding upon our successful introductions in the big box stores, where we have existing strong supplier relationships and into foreign markets that are unburdened by the new U. S. Tariffs. We have been receiving strong demand from big box stores in Mexico where the lack of new U. S. Tariffs has allowed the product to be more competitive. Sales at Greenwood decreased 24% from the current quarter to $700,000 compared to $900,000 in Q3 twenty four as a non Greenwood supply issue continued to slow production across the bus industry. We believe this segment has significant growth potential in both our primary transit sector and in new markets such as construction. However, possible new tariffs on Canadian wood products could raise prices for our raw materials in future periods. Chad Summers: And the final item I will touch on before I turn it over to Mitch to review the financials in more detail is our seed cleaning facility. A quick reminder to those that may not be familiar, we six acre property in Oregon that was previously used as a seed cleaning facility. That non core component of our business was shut down over the past year or so. The company continues to market for sale or lease its property based in Hillsboro, Oregon, and will provide updates when a definitive arrangement is entered into. The property has a book value of just over $550,000 so any sale of the property above that value will bring incremental income to Jewett Cameron and increase shareholder value. Chad Summers: As you might suspect, the broader markets have been challenging, but potential buyers who fit the rural industrial use classification of the property have reviewed the listing and the property, and we continue to have meaningful discussions with interested parties. Before I turn it over to Mitch, let me just reiterate that I believe we are solidly executing on our long term objectives. The tariff situation has certainly created some near term challenges, but I believe we are taking the necessary steps to mitigate the impacts as much as possible. That said, the challenges we experienced in the third quarter will likely extend into our fourth quarter as well. The frequently changing tariff rates are continuing to cause hesitation and uncertainty among both retailers and consumers, and we expect this will continue until those rates are finalized and buyers can accurately estimate costs. Chad Summers: Demand for our metal goods has picked up in June as our customers begin to run low on their inventory and they become more accepting of the new tariff caused price hikes, but we will still not be at normalized levels. It's certainly disappointing that our highest seasonal selling season was impacted the way it has, but like at all challenging times, we will likely be better for it in the long run as we continue to work to improve our operational efficiencies, further develop our flexible multi sourcing strategy, expand our automation and use of AI and other technology to resolve the logistical impediments to reduce our costs and better serve our customers. With that said, let me turn it over to Mitch for a detailed review of the financials. I will then provide some brief closing comments and turn it over for any questions. Mitch? Mitch Van Domelen: Thank you, Chad. Good afternoon to everyone on the call today. My comments will focus on adding color to the key areas and events that had material influence on the quarter's performance. Let's start on the revenue line. As a reminder on something that Chad just touched on, our revenue tends to be very seasonal with the majority of our impactful sales occurring in the third and fourth quarters of our fiscal year, March through August. Mitch Van Domelen: Revenue for Q3 twenty five was $12,600,000 compared to $15,900,000 in Q3 of twenty four. This was up compared to the second quarter of this year, was 9,100,000.0 As Chad mentioned, sales of metal fencing products were only down slightly and outperformed the rest of the business driven by the ongoing load in of new lifetime steel post in store displayers. Sales of compostable products were down just slightly in the quarter as compared to the same quarter last year. And as Chad mentioned, we're experiencing growth in the MyEcoWorld product line as we transition our marketing efforts towards that brand. Sales of our Greenwood operating segment for the current quarter were $700,000 compared to $900,000 in Q3 of twenty four. Mitch Van Domelen: Our Wood Fencing product sales decreased compared to the same period last year due to material constraints that Chad touched on and demand for our pet products continues to be weak as sales in the third sorry, as sales in the quarter declined compared to Q3 of twenty four. Overall, the uncertainty in cost increases due to the changing tariff rates and our shortage in wood sensing contributed to the broader revenue decline. Turning to gross margins. Gross profit margins for Q3 twenty five were 15% compared to 18.6% in Q3 of twenty four. The decline in gross margins were due to a combination of higher tariff costs, higher shipping costs, expenditures on the continued rollout of the in store display units and a shift towards lower margin products during the quarter. Mitch Van Domelen: The company has made strenuous efforts to adjust its selling prices to correctly reflect the new tariff rates, but the rapid and unpredictable announcements of new rates over the last six months has made that process difficult. As increased pricing initiatives to better align with increased costs take hold, it is the expectation that gross margin will ultimately revert to historical levels. Turning to OpEx. Operating expenses for Q3 twenty five were $2,600,000 compared to $2,900,000 in Q3 of twenty four. The decrease in operating expenses is due to the initiatives taken by the company to implement operational efficiencies and realign headcount to new business processes. Mitch Van Domelen: Net loss for Q3 twenty five was $600,000 or negative $0.18 per basic and diluted share compared to net income of $200,000 or $04 per basic and diluted share in Q3 of twenty four. Change is primarily due to the impact of the tariffs, which deferred retail customer purchases coupled with lower gross margins primarily due to higher tariffs and transportation costs, however, partially offset by lower operating costs due to operational efficiencies enacted by the company. As Chad mentioned, I think it's a fair statement overall that the delta between us reporting a profit during the third quarter and the $650,000 loss, which was reported can be directly related to the combination of the impact of the tariffs, which deferred to customer purchases and coupled with lower gross margins primarily due to the higher cost of tariffs and transportation costs. Finally, a few comments on the balance sheet. Due to the decreased customer purchase levels and our efforts to secure additional cedar lumber, our inventory levels increased slightly from the end of the second quarter to $15,300,000 versus $14,900,000 at 02/28/2025. Mitch Van Domelen: As I communicated last quarter, based on the seasonality of our normal cash cycle, we typically see our working capital needs spike in the early spring as we transition our inventory to sales and collections. Beginning in early Q3, we began to draw on our line. At the end of the third quarter, we had drawn $2,400,000 against the line. As receivables are collected, we expect to revert back to normalized levels later this calendar year. Subsequent to the end of the third quarter, we were also able to extend our line of credit through June 2026. Mitch Van Domelen: The cash balance at May 31 was $1,200,000 Finally, our stockholders' equity at 05/31/2025 was $23,100,000 which compared to $23,700,000 at the February. The decrease relates to the net loss during the quarter. Also as Chad touched on, we continue to market our 11.6 acre seed processing facility, which has a carrying balance of less than $600,000 The successful sale or lease of this real estate and facility would dramatically improve shareholder equity. We hit on some topics from a pretty high level and covered a lot of them pretty quickly, but happy to answer any questions that may arise. Now let me turn it back over to Chad. Chad Summers: Thanks, Mitch, for the overview. Let me just wrap things up with a few key comments and takeaways. First, our focus remains on driving shareholder value. Our strategy is focused in four key areas: growth drivers, product innovation, supply chain and operational efficiency and asset monetization. These strategies remain our focus despite the near term impacts of tariffs, which have created many challenges. Chad Summers: But as I mentioned, we have acted decisively to address these head on in order to mitigate the impact to the maximum extent possible. While it's anyone's guess when there will be some general level of reduced volatility to the tariffs, it is our belief that it will occur and once it does, it will provide a pathway to more normalized customer purchasing patterns in the future, which will once again highlight the numerous positive initiatives we have implemented to drive growth and efficiencies here at Jewett Cameron. I thank you all for your continued interest and support of Jewett Cameron, and we'll now be happy to take any questions. Robert, can you let me know if there are any questions from the webcast player? Robert Blum: Absolutely. Thank you, guys. Again, as a reminder to everyone on the webcast player, if you'd like to ask a question, you can type it in to the Ask a Question feature there on the webcast there. A couple of them here, I'll sort of summarize, tariff related, maybe speak just more broadly to some of your tariff mitigation strategies. I know you talked about some in the prepared remarks, but maybe is there anything more you can add there? Chad Summers: Yeah, thank you for the question. Chad Summers: We are fortunate that we began this process, in early twenty three to multi source our production, to countries other than China. That was the main focus. And this did help reduce our dependence on single source of supply, and to some extent, mitigate the higher tariffs imposed on goods coming from China. Robert Blum: Okay. Maybe another question here. Talk about maybe your revised OpEx expectations or what are your revised OpEx expectations expected to be? Chad Summers: Yes, good question. We have historically, we have not provided projections and do not intend to now, but the bottom line, I would say to that, is we are trying to be more efficient across our operation. This is one of our key pillars. So in addition to our focus on, as I mentioned before, what growth drivers, product innovation, supply chain and asset monetization, so while we reduced our workforce, we continue to pursue talent in key areas to better serve our customers, as well as evaluating technology that will enhance our efficiency further. Robert Blum: Okay, another question here, and again, you just sort of hit on the end there, but any updates on your property for sale? Chad Summers: Yes, while we have been actively marketing the property for some time, we will provide further information in the event that a definitive arrangement for that property is secured. So stay tuned. We'll announce when anything does happen. Robert Blum: All right. A couple of other questions here. Maybe this one's for Mitch. What percent of total sales are the lifetime steel fence posts? I don't know if that's a number you're able to provide. Mitch Van Domelen: One moment. Currently, it is 8% of our operating or our gross sales. Robert Blum: Gross sales. Okay, great. Another question in here is, what is the overlap, if any, between customers who purchase steel fence posts or other metal fencing products and customers who purchase pet fencing products or MyECO World products? Chad Summers: Yes, I'll take that question. If I understand the question correctly, looking for customers who buy maybe our gates and posts that also buy MyEcoWorld, if I'm hearing that correctly, and I don't think we have a direct visible connection in our database. Chad Summers: However, most of those, many of the fence products that are purchased are to help contain animals in their backyard, so we suspect there's overlap in that target audience. Also, that like to garden for some of the food organic bags or bin liners and yard debris bags. So there are likely some overlap, but we don't have definitive evidence of them being the same, consumers directly. Robert Blum: Okay. Again, I just want to remind everyone, if you'd like to ask a question, you can type it into the Ask a Question feature in the webcast player. Perhaps our last question here is, have you considered cutting support for products that may be destroying value from an ROIC perspective? How might that affect relationships with key vendors, I guess, if you were to do so? Chad Summers: Well, would say that we're always evaluating our performance of different products. So the first part there is that's an always ongoing discussion to have. Obviously, as it relates to what I believe the tail part of that question was, the impact it might have on our suppliers, the people we purchase these from or work with, that would be an ongoing negotiation with them. Chad Summers: I guess it would depend on the size of the product that would be under consideration. But right now, it's a continual evaluation of product contribution to Jewett Cameron's business and to the value it has to the shareholders. Robert Blum: Okay. Very good. I am showing no further questions at this time. So Chad, with that, I will turn it over to you for any closing comments. Chad Summers: Well, thank you, Robert. Again, I want to thank you all for your continued interest and support of Jewett Cameron. Thank you again for your participation. Have a great afternoon. Operator: Conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this. On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. 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Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jewett-Cameron (JCTC) Q3 2025 Earnings Transcript was originally published by The Motley Fool