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JCTCF Nasdaq· Jewett-Cameron Trading Company Ltd.
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JCTCF Nasdaq· Jewett-Cameron Trading Company Ltd.
Earnings report Q4 2023

JCTCF Reports Decrease in Revenue for Latest Quarter

Segments of Revenue

  • Sales for the three months ended November 30, 2023, were $9.81 million, a decrease of 22% compared to the same period last year.
  • JCC, one of JCTCF's operating subsidiaries, reported sales of $8.62 million, a decrease of 26% compared to the previous year. The decline in sales can be attributed to reduced discretionary spending by American consumers, particularly in the pet and home improvement sectors. Additionally, the absence of a one-time order for kennels in this year's quarter impacted sales comparisons.
  • Greenwood, another operating subsidiary, experienced an increase in sales. Sales for the quarter were $1.13 million, representing an 87% increase compared to the same period last year. This growth can be attributed to improved demand from municipalities and transit operators as more users have returned to offices and increased their use of transit services.
  • JCSC, which was closed effective August 31, 2023, reported sales of $48,518 for the quarter, primarily representing the liquidation of the remaining seed inventory.

Strengths

  • JCTCF's operating income improved significantly compared to the previous year. The company reported operating income of $1.21 million for the current quarter, compared to an operating loss of $27.82 thousand in the same period last year. This improvement can be attributed to the termination of cleaning operations and the reduction of operating expenses.
  • Management comments indicate that the liquidation of the seed inventory and the closure of JCSC have contributed to the improved operating income.

Challenges

  • The decrease in sales for JCC reflects the impact of reduced discretionary spending by American consumers, particularly in the pet and home improvement sectors. The absence of a one-time order for kennels also affected sales comparisons.
  • JCTCF's overall revenue declined by 22% compared to the previous year, indicating a challenging sales environment.

Noteworthy

  • Greenwood experienced a significant increase in sales, driven by improved demand from municipalities and transit operators as more users returned to offices and increased their use of transit services.

Summary

JCTCF reported a decrease in revenue for the latest quarter, with sales declining by 22% compared to the same period last year. The decrease in sales was primarily driven by reduced discretionary spending by American consumers, particularly in the pet and home improvement sectors, as well as the absence of a one-time order for kennels. However, the company's operating income improved significantly, primarily due to the termination of cleaning operations and the reduction of operating expenses. Greenwood, one of JCTCF's operating subsidiaries, experienced a notable increase in sales, driven by improved demand from municipalities and transit operators. Overall, JCTCF faces challenges in a challenging sales environment but has shown strengths in improving operating income and managing expenses.

Source documents

Form 10-Q  filed on Jan 16, 2024
123 pages scanned

Reference data

Company financials Q4 revenue 9.8M
Analyst estimates Q4 EPS missed by NaN%
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