Q3 2026 Jewett-Cameron Trading Co Ltd Earnings Call

July 14, 2026

Speaker #1: Good afternoon. And welcome to the Jewett Cameron Trading Company third-quarter fiscal year 2026 financial results conference call. All participants will be in listen-only mode.

Operator: Good afternoon, and welcome to the Jewett-Cameron Trading Company Q3 fiscal year 2026 financial results conference call. All participants will be in listen-only mode. Please note, this event is being recorded. I would now like to turn the conference over to Robert Blum with Lytham Partners. Please go ahead.

Speaker #1: Please note, this event is being recorded. I would now like to turn the conference over to Robert Bloom with Litham Partners. Please go ahead.

Speaker #2: All right. Thank you very much, and thank you all for joining us today to discuss Jewett Cameron's operational and financial results. For the fiscal 2026 third quarter and nine-month period ended May 31, 2026, with us on the call representing the company today are Chad Summoners, Jewett Cameron's Chief Executive Officer, and Mitch Van Dollen, the company's Chief Financial Officer.

Robert Blum: Great. Thank you very much, and thank you all for joining us today to discuss Jewett-Cameron's operational and financial results for the fiscal 2026 Q3 and nine-month period ended 31 May 2026. With us on the call representing the company today are 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 will address questions that have been submitted to the company. 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 US 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.

Speaker #2: At the conclusion of today's prepared remarks, we will address questions that have been submitted to the company. 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.

Speaker #1: Good afternoon, and welcome to the Jewett-Cameron Trading Q3 FY2026 financial results conference call. All participants will be in listen-only mode. Please note this event is being recorded.

Speaker #2: 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.

Speaker #1: I would now like to turn the conference over to Robert Bloom with Litham Partners. Please go ahead.

Speaker #2: All right. Thank you very much. And thank you all for joining us today to discuss Jewett-Cameron's operational and financial results for the fiscal 2026 Q3 and 9-month period ended May 31, 2026. With us on the call representing the company today are Chad Summers, Jewett-Cameron's Chief Executive Officer, and Mitch van Daumelen, the company's Chief Financial Officer.

Speaker #2: Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties. They could cause future circumstances and events or results to differ materially from those identified in the forward-looking statements.

Robert Blum: 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 31 August 2025, the 10-Q for the period ended 31 May 2026, 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.

Speaker #2: As a result of various factors and other risks identified in the company's 10-K for the fiscal year ended August 31, 2025, the 10-Q for the period ended May 31, 2026, and other filings made with the securities and exchange commission.

Speaker #2: At the conclusion of today's prepared remarks, we will address questions that have been submitted to the company. 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. law.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Chad, please proceed.

Speaker #3: Good afternoon, and thank you for joining us today. To set the stage for today's call, let me first walk you through a few high-level financial and operational themes from the quarter and nine-month period.

Chad Summers: Good afternoon, and thank you for joining us today. To set the stage for today's call, let me first walk you through a few high-level financial and operational themes from the quarter and nine-month period. I will then discuss updates on the key initiatives we have been executing throughout fiscal 2026, including our focus on core metal fencing, operational realignment, cash conversion, inventory monetization, and our ongoing strategic efforts. After that, Mitch will review the financials in more detail, and I will come back to wrap things up and address any questions that have been submitted. To start things off, reported revenue declined year-over-year in the Q3, but the headline comparison does not tell the whole story.

Speaker #2: Listeners are cautioned that such statements are subject to a multitude of risks and uncertainties, which could cause future circumstances, events, or results to differ materially from those identified in the forward-looking statements.

Speaker #3: I will then discuss updates on the key initiatives we have been executing throughout fiscal 2026, including our focus on core, metal fencing, operational realignment, cash conversion, inventory monetization, and our ongoing strategic efforts.

Speaker #3: After that, Mitch will review the financials in more detail, and I will come back to wrap things up and address any questions that have been submitted.

Speaker #2: 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 of Jewett-Cameron.

Speaker #3: So, to start things off: reported revenue declined year over year in the third quarter, but the headline comparison does not tell the whole story.

Speaker #3: The decline was driven primarily by the absence of more than $3 million in low-margin sales from the cedar fencing supply agreement that was discontinued in the fall of 2025.

Chad Summers: The decline was driven primarily by the absence of more than $3 million in low-margin sales from the cedar fencing supply agreement that was discontinued in the fall of 2025. We made progress again in the underlying business. The progress was led by metal fencing, where we saw improved quarterly traction across Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol. We believe that performance reflects the continued benefit of our in-store display programs, core product expansion, and a sharper commercial focus on the products where Jewett-Cameron has strong brand equity and differentiation. Greenwood also delivered another strong quarter, while pet remained soft as consumer discretionary spending stayed pressured. We also made significant progress improving the balance sheet and liquidity. Through the first nine months of fiscal 2026, inventory was reduced substantially, cash increased, accounts payable and accrued liabilities declined, and bank indebtedness was reduced.

Speaker #2: Chad, please proceed.

Speaker #3: We made progress again in the underlying business. The progress was led by metal fencing, where we saw improved quarterly traction across adjuster gate, bit right, lifetime steel post, and perimeter patrol.

Speaker #3: We believe that performance reflects the continued benefit of our in-store display programs, core product expansion, and a sharper commercial focus on the products where Jewett Cameron has strong brand equity and differentiation.

Speaker #3: After that, Mitch will review the financials in more detail, and I will come back to wrap things up and address any questions that have been submitted.

Speaker #3: Greenwood also delivered another strong quarter, while PET remained soft as consumer discretionary spending stayed pressured. We also made significant progress improving the balance sheet and liquidity.

Speaker #3: So, to start things off, reported revenue declined year over year in the third quarter, but the headline comparison does not tell the whole story.

Chad Summers: Greenwood also delivered another strong quarter, while pet remained soft as consumer discretionary spending stayed pressured. We also made significant progress improving the balance sheet and liquidity. Through the first nine months of fiscal 2026, inventory was reduced substantially, cash increased, accounts payable and accrued liabilities declined, and bank indebtedness was reduced.

Speaker #3: The decline was driven primarily by the absence of more than $3 million in low-margin sales from the cedar fencing supply agreement that was discontinued in the fall of 2025.

Speaker #3: Through the first nine months of fiscal 2026, inventory was reduced substantially, cash increased, account accounts payable and accrued liabilities declined, and bank indebtedness was reduced.

Speaker #3: We made progress again in the underlying business. The progress was led by metal fencing, where we saw improved quarterly traction across Adjust-a-Gate, Bit-Rite, Lifetime Steel Post, and Perimeter Patrol.

Speaker #3: Sequentially, from Q2 to Q3, line of credit borrowings declined materially as receivables were collected and excess inventory was converted into cash. Mitch will provide the specific balance sheet and cash flow details, but the larger point is that cash conversion is central to how we are positioning the company through this operating environment.

Chad Summers: Sequentially, from Q2 to Q3, line of credit borrowings declined materially as receivables were collected and excess inventory was converted into cash. Mitch will provide the specific balance sheet and cash flow details, but the larger point is that cash conversion is central to how we are positioning the company through this operating environment. Margins remain under pressure, but we saw stabilization from earlier in fiscal 2026 as customers accepted initial tariff-related price increases. Stabilization does not mean margins have returned to pre-tariff levels, and most fence categories remain below historical norms. Mitch will cover the gross margin results and tariff refund accounting in more detail, but tariffs, higher product costs, shipping, and logistics remain significant headwinds.

Speaker #3: We believe that performance reflects the continued benefit of our in-store display programs, core product expansion, and a sharper commercial focus on the products where Jewett-Cameron has strong brand equity and differentiation.

Speaker #3: Margins remain under pressure, but we saw stabilization from earlier in fiscal 2026 as customers accepted initial tariff-related price increases. Stabilization does not mean margins have returned to pre-tariff levels, and most fence categories remain below historical norms.

Speaker #3: Through the first nine months of fiscal 2026, inventory was reduced substantially, cash increased, accounts payable and accrued liabilities declined, and bank indebtedness was reduced.

Speaker #3: Mitch will cover the gross margin results and tariff refund accounting in more detail, but tariffs—higher product costs, shipping and logistics—remain significant headwinds. So, while the quarter still reflects a difficult business environment, we believe it also reflects progress in the areas that matter most right now: strengthening the balance sheet, converting inventory into cash, reducing borrowings, continuing to sharpen our focus on core, metal fencing, and positioning the company to exit fiscal 2026 with a more sustainable, long-term business model.

Chad Summers: While the quarter still reflects a difficult business environment, we believe it also reflects progress in the areas that matter most right now: strengthening the balance sheet, converting inventory into cash, reducing borrowings, continuing to sharpen our focus on core metal fencing, and positioning the company to exit fiscal 2026 with a more sustainable long-term business model. Let's turn to an update on how the initiatives we outlined earlier in the year are progressing. The broader headwinds impacting the business have not gone away. Tariff uncertainty continues to pressure costs and disrupt purchasing behavior. Product and logistic costs remain elevated, and consumers continue to be cautious in discretionary categories. At the same time, we believe the actions we are taking are simplifying the company and strengthening the foundation of the business.

Speaker #3: Margins remain under pressure, but we saw stabilization earlier in fiscal 2026 as customers accepted initial tariff-related price increases. Stabilization does not mean margins have returned to pre-tariff levels, and most fence categories remain below historical norms.

Speaker #3: Let's turn to an update on how the initiatives we outlined earlier in the year are progressing. The broader headwinds impacting the business have not gone away.

Speaker #3: Tariff uncertainty continues to pressure costs and disrupt purchasing behavior, product and logistic costs remain elevated, and consumers continue to be cautious in discretionary categories.

Speaker #3: Mitch will cover the gross margin results and tariff refund accounting in more detail, but tariffs—higher product costs, shipping, and logistics—remain significant headwinds. So, while the quarter still reflects a difficult business environment, we believe it also reflects progress in the areas that matter most right now: strengthening the balance sheet, converting inventory into cash, reducing borrowings, continuing to sharpen our focus on core metal fencing, and positioning the company to exit fiscal 2026 with a more sustainable, long-term business model.

Speaker #3: At the same time, we believe the actions we are taking are simplifying the company and strengthening the foundation of the business. At the center of our strategy remains our core, metal fencing business, which continues to be our largest and most important product category.

Chad Summers: At the center of our strategy remains our core metal fencing business, which continues to be our largest and most important product category. We are focused on products where we have established brands, differentiated designs, strong retail relationships, and clear opportunities to improve the lives of professionals and do-it-yourselfers working on fence and outdoor projects. 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. We see that as an important marker of progress because it demonstrates that the core business is responding to the actions we have taken around merchandising, in-store display programs, and focused product expansion.

Speaker #3: We are focused on products where we have established brands, differentiated designs, strong retail relationships, and clear opportunities to improve the lives of professionals and do-it-yourselfers working on fence and outdoor projects.

Speaker #3: Let's turn to an update on how the initiatives we outlined earlier in the year are progressing. The broader headwinds impacting the business have not gone away.

Speaker #3: During the third quarter, metal fencing delivered year-over-year growth on a quarterly basis across adjuster gate, bit right, lifetime steel post, and perimeter patrol. We see that as an important marker of progress because it demonstrates that the core business is responding to the actions we have taken, around programs, and focused product expansion.

Speaker #3: Tariff uncertainty continues to pressure costs and disrupt purchasing behavior. Product and logistic costs remain elevated, and consumers continue to be cautious in discretionary categories.

Speaker #3: At the same time, we believe the actions we are taking are simplifying the company and strengthening the foundation of the business. At the center of our strategy remains our core metal fencing business, which continues to be our largest and most important product category.

Speaker #3: Our display programs continue to support consumer engagement by putting the solution in front of the customer at the point of purchase, which is particularly important in categories where consumers may not fully understand the benefit until they see the product in context.

Chad Summers: Our display programs continue to support consumer engagement by putting the solution in front of the customer at the point of purchase, which is particularly important in categories where consumers may not fully understand the benefit until they see the product in context. On a year-to-date basis, the comparison remains mixed because of the challenging start to the fiscal year and the broader market environment. Adjust-A-Gate remains down year-over-year on a year-to-date basis, while Fit-Right and Lifetime Steel Post are up, and Perimeter Patrol is approximately flat. We view the quarterly improvement as encouraging. Our focus remains on consistent execution, additional store penetration where appropriate, better merchandising, and disciplined expansion of our core product lineup. Lifetime Steel Post remains an important part of that strategy. We continue to believe there is a compelling value proposition in offering a longer-lasting steel post solution for wood fencing applications.

Speaker #3: On a year-to-date basis, the comparison remains mixed because of the challenging start to the fiscal year and the broader market environment. Adjuster gate remains down year over year on a year-to-date basis, while fit right and lifetime steel post are up, and perimeter patrol is approximately flat.

Speaker #3: During the third quarter, metal fencing delivered year-over-year growth on a quarterly basis across Adjust-A-Gate, Birkrite, Lifetime Steel Post, and Perimeter Patrol.

Speaker #3: We view the quarter the quarterly improvement as encouraging. Our focus remains on consistent execution, additional store penetration where appropriate, better merchandising, and disciplined expansion of our core product lineup.

Speaker #3: We see that as an important marker of progress because it demonstrates that the core business is responding to the actions we have taken around merchandising, in-store display programs, and focused product expansion.

Speaker #3: Lifetime steel post remains an important part of that strategy. We continue to believe there is a compelling value proposition in offering a longer-lasting steel post solution for wood fencing applications.

Speaker #3: Adjuster gate and fit right also remain core to our fencing platform, with patented and trademarked products that solve common installation and durability challenges, for both professionals and homeowners.

Chad Summers: Adjust-A-Gate and Fit-Right also remain core to our fencing platform, with patented and trademarked products that solve common installation and durability challenges for both professionals and homeowners. Perimeter Patrol provides another growth opportunity in portable security and temporary fence applications. The important point is that we are concentrating resources on areas where Jewett-Cameron has product differentiation, retail relevance, and opportunities to build a stronger business over time. We are also evaluating improvements to existing products and complementary offerings from third parties that could broaden the line without adding unnecessary complexity. Operational efficiency and cash conversion remain major priorities. During Q2, we made substantial progress selling through excess cedar fencing inventory and liquidating certain slow-moving pet inventory.

Speaker #3: On a year-to-date basis, the comparison remains mixed because of the challenging start to the fiscal year and the broader market environment. Adjust-A-Gate remains down year over year on a year-to-date basis, while Fit-Right and Lifetime Steel Post are up, and Perimeter Patrol is approximately flat.

Speaker #3: Perimeter patrol provides another growth opportunity in portable security and temporary fence applications. The important point is that we are concentrating resources on areas where Jewett Cameron has product differentiation, retail relevance, and opportunities to build a stronger business over time.

Speaker #3: We view the quarterly improvement as encouraging. Our focus remains on consistent execution, additional store penetration where appropriate, better merchandising, and disciplined expansion of our core product lineup.

Speaker #3: We are also evaluating improvements to existing products and complementary offerings from third parties that could broaden the line without adding unnecessary complexity. Operational efficiency and cash conversion remain major priorities.

Speaker #3: During the second quarter, we made substantial progress selling through excess cedar fencing, inventory, and liquidating certain slow-moving pedimentary. During the third quarter, that progress translated into stronger balance sheet as receivables were collected, inventory balances continued to decline, and cash was used to reduce borrowings under our credit line.

Speaker #3: Adjust to gate and fit right, also remain core to our fencing platform, with patented and trademarked products that solve common installation and durability challenges for both professionals and homeowners.

Chad Summers: During Q3, that progress translated into a stronger balance sheet as receivables were collected, inventory balances continued to decline, and cash was used to reduce borrowings under our credit line. The balance sheet improvement was meaningful. We reduced inventory significantly from fiscal year-end levels, reduced bank indebtedness from both the end of Q2 and fiscal year-end, and increased cash from earlier in the fiscal year. In the environment we are operating in, balance sheet flexibility is essential. The excess cedar inventory was tying up capital and creating storage costs. The slow-moving pet inventory was creating similar issues. Converting those positions into cash, even where certain inventory had to be sold at or below cost, allowed us to reduce borrowings, reduce complexity, and redeploy the organization toward the core products that we believe can drive the business going forward. We also continue to reduce costs.

Speaker #3: Perimeter patrol provides another growth opportunity in portable security and temporary fence applications. The important point is that we are concentrating resources on areas where Jewett-Cameron has product differentiation, retail relevance, and opportunities to build a stronger business over time.

Speaker #3: The balance sheet improvement was meaningful. We reduced inventory significantly, from fiscal year-end levels, reduced bank indebtedness from both the end of Q2 and fiscal year-end, and increased cash from earlier in the fiscal year.

Speaker #3: In the environment we are operating in, balance sheet flexibility is essential. The excess cedar inventory was tying up capital and creating storage costs. The slow-moving pedimentary was creating similar issues.

Speaker #3: Converting those positions into cash, even where certain inventory had to be sold at or below cost, allowed us to reduce borrowings, reduce complexity, and redeploy the organization toward the core products that we believe can drive the business going forward.

Speaker #3: During the second quarter, we made substantial progress selling through excess cedar fencing inventory and liquidating certain slow-moving pet inventory. During the third quarter, that progress translated into a stronger balance sheet as receivables were collected, inventory balances continued to decline, and cash was used to reduce borrowings under our credit line.

Speaker #3: We also continue to reduce costs. Wages and employment benefits declined 21% year over year. In the third quarter and 22% for the first 9 months of fiscal 2026.

Chad Summers: Wages and employment benefits declined 21% year-over-year in Q3 and 22% for the first nine months of fiscal 2026. Year to date as a whole, wages and benefits are down more than $1 million. We remain committed to reducing annual operating expenses as we continue to align the cost structure with the current revenue base and our core product focus. Selling, general, and administrative expenses were higher year to date because of professional fees related to outside consultants assisting with our strategic plan, and we expect those services to continue through the remainder of fiscal 2026 as we work through this realignment. A few comments on pet and Greenwood. Pet remains soft. Consumers continue to restrain discretionary spending, especially in non-consumable categories such as crates, kennels, and containment products.

Speaker #3: The balance sheet improvement was meaningful. We reduced inventory significantly from fiscal year-end levels, reduced bank indebtedness from both the end of Q2 and fiscal year-end, and increased cash from earlier in the fiscal year.

Speaker #3: Year-to-date, as a whole, wages and benefits are down more than $1 million. We remain committed to reducing annual operating expenses as we continue to align the cost structure with the current revenue base and our core product focus.

Speaker #3: Selling, general and administrative expenses were higher year-to-date because of professional fees related to outside consultants, assisting with our strategic plan, and we expect those services to continue through the remainder of fiscal 2026 as we work through this realignment.

Speaker #3: A few comments on PET and Greenwood. PET remains soft. Consumers continue to restrain discretionary spending, especially in non-consumable categories such as crates, kennels, and containment products.

Speaker #3: We also continue to reduce costs. Wages and employment benefits declined 21% year-over-year in the third quarter, and 22% for the first nine months of fiscal 2026.

Speaker #3: Our lucky dog brand continues to have a solid reputation in pet containment, and our focus is on the core products that have the strongest demand profile, while continuing to reduce exposure to older, slow-moving inventory.

Chad Summers: Our Lucky Dog brand continues to have a solid reputation in pet containment, and our focus is on the core products that have the strongest demand profile while continuing to reduce exposure to older, slow-moving inventory. Greenwood was a clear positive again this quarter. Demand from transit customers continues to recover from post-pandemic lows, and Greenwood is also benefiting from higher sales from non-transit customers. We are pleased with the performance, but as we have said previously, Greenwood remains part of the broader strategic review as we concentrate the company around fence and outdoor products. As previously announced, 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 is not a one-quarter exercise.

Speaker #3: Greenwood was a clear positive again this quarter. Demand from transit customers continues to recover from post-pandemic lows, and Greenwood has also benefiting from higher sales from non-transit customers.

Speaker #3: Selling, general, and administrative expenses were higher year-to-date because of professional fees related to outside consultants assisting with our strategic plan, and we expect those services to continue through the remainder of fiscal 2026 as we work through this realignment.

Speaker #3: We are pleased with the performance, but as we have said previously, Greenwood remains part of the broader strategic review as we concentrate the company around fence and outdoor products.

Speaker #3: As previously announced, management and the board continue to evaluate a variety of strategic options for the company. As well as for individual operating segments and assets.

Speaker #3: A few comments on Pet and Greenwood. Pet remains soft. Consumers continue to restrain discretionary spending, especially in non-consumable categories such as crates, kennels, and containment products.

Speaker #3: That prioritized overall value. This is not a one-quarter exercise. It is an ongoing process intended to simplify the company, unlock value from non-core assets, and support the core growth strategy.

Speaker #3: Our Lucky Dog brand continues to have a solid reputation in pet containment, and our focus is on the core products that have the strongest demand profile, while continuing to reduce exposure to older, slow-moving inventory.

Chad Summers: It is an ongoing process intended to simplify the company, unlock value from non-core assets, and support the core growth strategy. Those efforts include completing the monetization of remaining excess non-core inventory while exploring collaborative alliances, business partnerships, and potential divestitures in best-monetized non-core assets and business lines. Potential areas under review include Greenwood, selective pet assets, the wood fencing business, and certain real estate assets, including the former seed property and the innovation studio property. Per normal disclosures, strategic options under consideration may include mergers, acquisitions, divestitures, joint ventures, and other business collaborations and partnerships that could involve specific assets or business lines of the company. We engage in preliminary discussions with third parties from time to time regarding a variety of potential transactions.

Speaker #3: Those efforts include completing the monetization of remaining excess non-core inventory, while exploring collaborative alliances business partnerships, and potential divestitures in best monetized non-core assets and business lines.

Speaker #3: Greenwood was a clear positive again this quarter. Demand from transit customers continues to recover from post-pandemic lows, and Greenwood has also benefited from higher sales from non-transit customers.

Speaker #3: We are pleased with the performance. But as we have said previously, Greenwood remains part of the broader strategic review, as we concentrate the company around fence and outdoor products.

Speaker #3: Potential areas under review include Greenwood's selective pet assets, the wood fencing business, and certain real estate assets, including the former seed property and the innovation studio property.

Speaker #3: As previously announced, management and the Board continue to evaluate a variety of strategic options for the company, as well as for individual operating segments and assets.

Speaker #3: For normal disclosures, strategic options under consideration may include mergers, acquisitions, divestitures, joint ventures, and other business collaborations and partnerships that could involve specific assets or business lines of the company.

Speaker #3: We engage 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 completed transactions, and the company does not intend to provide further updates unless and until a definitive agreement is reached.

Speaker #3: Those efforts include completing the monetization of remaining excess non-core inventory, while exploring collaborative alliances, business partnerships, and potential divestitures in best-monetized non-core assets and business lines.

Chad Summers: There can be no assurance that these discussions will result in definitive agreements or completed transactions, and the company does not intend to provide further updates unless and until a definitive agreement is reached. Turning to the broader environment, the macro backdrop remains difficult. Across the home improvement market, large retailers continue to describe a market shaped by consumer uncertainty, housing affordability pressure, and a challenging housing macro. For Jewett-Cameron, that shows up in a few ways. Consumers are more selective with discretionary projects, retailers are cautious with inventory commitments, and the ability to recover higher product and logistic costs through pricing remains limited. Tariffs remain one of the most significant issues affecting our business. As most are aware, the U.S. Supreme Court invalidated the tariffs that were applied under the International Emergency Economic Powers Act, or IEEPA for short.

Speaker #3: Turning to the broader environment, the macro backdrop remains difficult. Across the home improvement market, large retailers continue to describe a market shape by consumer uncertainty, housing affordability pressure, and a challenging housing macro.

Speaker #3: Potential areas under review include Greenwood, Selective Pet assets, the wood fencing business, and certain real estate assets, including the former Seed property and the Innovation Studio property.

Speaker #3: For Jewett Cameron, that shows up in a few ways. Consumers are more selective with discretionary projects. Retailers are cautious with inventory commitments, and the ability to recover higher product and logistic costs through pricing remains limited.

Speaker #3: Tariffs remain one of the most significant issues affecting our business, as most are aware the U.S. Supreme Court invalidated the tariffs that were applied under the International Emergency Economic Powers Act, or IEEPA for short, during the quarter.

Speaker #3: We filed claims for refunds of tariffs paid under IEEPA and a portion of those claims has been accepted, while other amounts remain in process or may be appealed.

Speaker #3: Turning to the broader environment, the macro backdrop remains difficult. Across the home improvement market, large retailers continue to describe a market shaped by consumer uncertainty, housing affordability pressures, and a challenging housing macro.

Chad Summers: During the quarter, we filed claims for refunds of tariffs paid under IEEPA, and a portion of those claims has been accepted while other amounts remain in process or may be appealed. Mitch will provide the specific amounts and accounting treatments in a moment. We will continue to pursue available refunds where appropriate, but potential refunds represent only a small portion of the overall tariffs we have paid and continue to pay. The larger issue is that most of the tariffs affecting our imported steel and aluminum products remain in place. The Section 232 tariffs were not affected by the IEEPA ruling, and subsequent changes to Section 232 tariff rules have continued to create complexity and cost pressure. In some cases, the new rules have increased the amount of tariff due, while in other cases, certain product classifications have improved.

Speaker #3: Mitch will provide the specific amounts and accounting treatments in a moment. We will continue to pursue available refunds where appropriate, but potential refunds represent only a small portion of the overall tariffs we have paid and continue to pay.

Speaker #3: For Jewett-Cameron, that shows up in a few ways. Consumers are more selective with discretionary projects, retailers are cautious with inventory commitments, and the ability to recover higher product and logistic costs through pricing remains limited.

Speaker #3: The larger issue is that most of the tariffs affecting our imported steel and aluminum products remain in place. The Section 232 tariffs were not affected by the IEEPA ruling, and subsequent changes to Section 232 tariffs rules have continued to create complexity and cost pressure.

Speaker #3: Tariffs remain one of the most significant issues affecting our business. As most are aware, the US Supreme Court invalidated the tariffs that were applied under the International Emergency Economic Powers Act, or IEEPA for short, during the quarter.

Speaker #3: In some cases, the new rules have increased the amount of tariff due, while in other cases, certain product classifications have improved. Overall, the tariff burden applicable to our product imports has increased slightly compared to our pre-February 2026 costs.

Speaker #3: We filed claims for refunds of tariffs paid under IEEPA, and a portion of those claims has been accepted, while other amounts remain in process or may be appealed.

Chad Summers: Overall, the tariff burden applicable to our product imports has increased slightly compared to our pre-February 2026 costs. In addition to tariffs, higher fuel-related shipping and logistics costs continue to pressure margins. Our ability to quickly pass on these costs to customers is limited, and we do not expect pricing actions to immediately restore historical margin levels. We have seen some stabilization from earlier in the year as customers accepted initial tariff-related price increases, but most fence categories remain below historical margin norms. That is why we continue to focus on disciplined pricing, reducing complexity, cash conversion, and product categories where we have stronger differentiation. As we look ahead, our objectives remain 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 unlock value from non-core assets where appropriate.

Speaker #3: In addition to tariffs, higher fuel-related shipping and logistics costs continue to pressure margins. Our ability to quickly pass on these costs to customers is limited, and we do not expect pricing actions to immediately restore historical margin levels.

Chad Summers: Our ability to quickly pass on these costs to customers is limited, and we do not expect pricing actions to immediately restore historical margin levels. We have seen some stabilization from earlier in the year as customers accepted initial tariff-related price increases, but most fence categories remain below historical margin norms. That is why we continue to focus on disciplined pricing, reducing complexity, cash conversion, and product categories where we have stronger differentiation. As we look ahead, our objectives remain 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 unlock value from non-core assets where appropriate.

Speaker #3: We have seen some stabilization from earlier in the year, as customers accepted initial tariff-related price increases, but most fence categories remain below historical margin norms.

Speaker #3: The larger issue is that most of the tariffs affecting our imported steel and aluminum products remain in place. The Section 232 tariffs were not affected by the IEEPA ruling, and subsequent changes to Section 232 tariff rules have continued to create complexity and cost pressure.

Speaker #3: That is why we continue to focus on disciplined pricing, reducing complexity, cash conversion, and product categories where we have stronger differentiation. As we look ahead, our objectives remain clear.

Speaker #3: 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 unlock value from non-core assets where appropriate.

Speaker #3: While the environment remains complex, we believe the progress made during third quarter reinforces the direction we are taking. Let me now turn the call over to Mitch for additional comments.

Chad Summers: While the environment remains complex, we believe the progress made during the Q3 reinforces the direction we are taking. Let me now turn the call over to Mitch for additional comments.

Speaker #2: Thank you, Chad. And good afternoon to everyone on the call today. My comments will focus on adding detail to the key financial areas the Chad discussed at a high level.

Speaker #3: We have seen some stabilization from earlier in the year, as customers accepted initial tariff-related price increases, but most fence categories remain below historical margin norms.

Mitch Van Domelen: Thank you, Chad, and good afternoon to everyone on the call today. My comments will focus on adding detail to the key financial areas that Chad discussed at a high level. Let's start on the revenue line. Revenue for the Q3 of 2026 was $9.9 million, compared to $12.6 million in Q3 of 2025, a decrease of 22%. The decline was driven primarily by the absence of more than $3 million in sales from the discontinued cedar fencing supply agreement in the year-ago quarter. Demand for pet products continues to be weak, but that was offset by revenue growth across Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol, driven in part by continued traction from our in-store display program and stronger focus on core metal fencing products. Greenwood sales for the quarter were $1.1 million, compared to $705,000 in Q3 of 2025, an increase of 58%.

Speaker #2: Let's start on the revenue line. Revenue for the third quarter of fiscal 2026 was $9.9 million, compared to $12.6 million in Q3 of 2025, a decrease of 22%.

Speaker #2: The decline was driven primarily by the absence of more than $3 million in sales from the discontinued Cedar Fencing Supply Agreement in the year-ago quarter.

Speaker #2: Demand for pet products continues to be weak, but that was offset by revenue growth across adjust to gate, fit right, lifetime steel post, and perimeter patrol, driven in part by continued traction from our in-store display program and stronger focus on core metal fencing products.

Mitch Van Domelen: Demand for pet products continues to be weak, but that was offset by revenue growth across Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol, driven in part by continued traction from our in-store display program and stronger focus on core metal fencing products. Greenwood sales for the quarter were $1.1 million, compared to $705,000 in Q3 of 2025, an increase of 58%.

Speaker #3: While the environment remains complex, we believe the progress made during the third quarter reinforces the direction we are taking. Let me now turn the call over to Mitch for additional comments.

Speaker #2: Greenwood sales for the quarter were $1.1 million compared to $705,000 in Q3 of 2025, an increase of 58%. Demand from transit customers continued to recover from pandemic lows, and we also benefited from higher sales to non-transit customers.

Speaker #2: Thank you, Chad, and good afternoon to everyone on the call today. My comments will focus on adding detail to the key financial areas that Chad discussed at a high level.

Speaker #2: Let's start on the revenue line. Revenue for the third quarter of fiscal 2026 was $9.9 million, compared to $12.6 million in Q3 of 2025, a decrease of 22%.

Mitch Van Domelen: Demand from transit customers continued to recover from pandemic lows, and we also benefited from higher sales to non-transit customers. Greenwood generated operating profit of approximately $134,000 in the quarter, compared to operating loss of approximately $20,000 in the prior year quarter. For the first nine months of 2026, revenue was $29 million, compared to $30.9 million in the first nine months of 2025, a decrease of 6%. The year-to-date comparison was affected by the cancellation of the cedar fencing supply agreement, weak pet product demand, and the impact of tariffs and cost inflation on customer purchasing patterns. Turning to gross margins. Gross profit margin during Q3 of 2026 was 18%, compared to 15% in Q3 of 2025 and 15.7% in Q2 of 2026.

Speaker #2: Greenwood generated operating profit of approximately $134,000 in the quarter, compared to operating loss of approximately $20,000 in the prior year quarter. For the first nine months of fiscal 2026, revenue was $29 million, compared to $30.9 million in the first nine months of fiscal 2025, a decrease of 6%.

Speaker #2: The decline was driven primarily by the absence of more than $3 million in sales from the discontinued cedar fencing supply agreement in the prior-year quarter.

Speaker #2: Demand for pet products continues to be weak, but that was offset by revenue growth across Adjust-A-Gate, Fit-Right, Lifetime Steel Post, and Perimeter Patrol, driven in part by continued traction from our in-store display program and a stronger focus on core metal fencing products.

Speaker #2: The year-to-date comparison was affected by the cancellation of Cedar Fencing Supply Agreement, weak pet product demand, and the impact of tariffs and cost inflation on customer purchasing patterns.

Speaker #2: Greenwood sales for the quarter were $1.1 million, compared to $705,000 in Q3 of 2025, an increase of 58%. Demand from transit customers continued to recover from pandemic lows, and we also benefited from higher sales to non-transit customers.

Speaker #2: Turning to gross margins, gross profit margin during Q3 of 2026 was 18%, compared to 15% in Q3 of 2025, and 15.7% in Q2 of 2026.

Speaker #2: The year-over-year improvement was driven by a higher mix of metal fencing products, compared to the lower margin wood fencing. And some stabilization from earlier in the year, as customers accepted initial tariff-related price increases.

Speaker #2: Greenwood generated operating profit of approximately $134,000 in the quarter, compared to an operating loss of approximately $20,000 in the prior year quarter. For the first nine months of fiscal 2026, revenue was $29 million, compared to $30.9 million in the first nine months of fiscal 2025, a decrease of 6%.

Mitch Van Domelen: The year-over-year improvement was driven by a higher mix of metal fencing products compared to the lower-margin wood fencing and some stabilization from earlier in the year as customers accepted initial tariff-related price increases. We also benefited from the partial tariff refund, which was accrued during the quarter. For the first nine months of fiscal 2026, gross margin was 8%, compared to 17.5% in the first nine months of fiscal 2025. That year-to-date comparison was heavily impacted by the $2.2 million inventory write-down recorded in Q1, related primarily to the pet and lumber inventory, as well as the liquidation of certain inventory during the period at or below cost. As Chad mentioned, margins remain well below historical levels. Higher raw material costs, higher shipping and logistics costs, and tariffs continue to pressure the business.

Speaker #2: We also benefited from the partial tariff refund, which was accrued during the quarter. For the first nine months of fiscal 2026, gross margin was 8%, compared to 17.5% in the first nine months of fiscal 2025.

Speaker #2: The year-to-date comparison was affected by the cancellation of the cedar fencing supply agreement, weak pet product demand, and the impact of tariffs and cost inflation on customer purchasing patterns.

Speaker #2: Again, that year-to-date comparison was heavily impacted by the 2.2 million inventory write-down recorded in the first quarter, related primarily to the pet and lumber inventory.

Speaker #2: Turning to gross margins, gross profit margin during Q3 of 2026 was 18.0%, compared to 15.0% in Q3 of 2025 and 15.7% in Q2 of 2026.

Speaker #2: As well as the liquidation of certain inventory during the period at or below cost. As Chad mentioned, margins remain well below historical levels. Higher raw material costs, higher shipping and logistics costs, and tariffs continue to pressure the business.

Speaker #2: The year-over-year improvement was driven by a higher mix of metal fencing products compared to the lower-margin wood fencing, and some stabilization from earlier in the year as customers accepted initial tariff-related price increases.

Speaker #2: The IEEPA refund claims are helpful, where available, but they do not change the larger tariff picture because the majority of the tariffs we have paid and continue to pay are related to the Section 232 steel and aluminum tariffs, which remain in effect.

Mitch Van Domelen: The IEEPA refund claims are helpful where available, but they do not change the larger tariff picture because the majority of the tariffs we have paid and continue to pay are related to the Section 232 steel and aluminum tariffs, which remain in effect. As Chad touched on, during Q3, we filed claims totaling approximately $904,000 for refunds of tariffs paid under IEEPA. Approximately 286,000 of those claims have been accepted and recorded as a receivable in Q3. Subsequent to the end of Q3, we received a payment from U.S. Customs and Border Protection totaling $1,009,000. Of the amount received, 286,000 was recorded as a receivable during Q3. Of the remaining amount received, 601,000 is the remaining claims filed under the IEEPA.

Speaker #2: As Chad touched on, during the third quarter, we filed claims totaling approximately $904,000 for refunds of tariffs paid under IEEPA. Approximately $286,000 of those claims have been accepted and recorded as a receivable in the third quarter.

Speaker #2: Again, that year-to-date comparison was heavily impacted by the $2.2 million inventory write-down recorded in the first quarter, related primarily to the pet and lumber inventory.

Speaker #2: Subsequent to the end of the third quarter, we received a payment from US Customs and Border Protection totaling $1,009,000. Of the amount received, $286,000 was recorded as a receivable during Q3.

Speaker #2: And of the remaining amount received, $601,000 is the remaining claims filed under the IEEPA. Additionally, $80,000 was post-summary corrections that were unrelated to the invalidated IEEPA claims and approximately $41,000 was interest, which will be recognized in the quarter received.

Speaker #2: The IEEPA refund claims are helpful, where available, but they do not change the larger tariff picture, because the majority of the tariffs we have paid and continue to pay are related to the Section 232 steel and aluminum tariffs, which remain in effect.

Mitch Van Domelen: Additionally, $80,000 was post summary corrections that were unrelated to the invalidated IEEPA claims and approximately $41,000 was interest, which will be recognized in the quarter received. Turning to the operating expenses. Operating expenses during Q3 of 2026 were $2.5 million compared to $2.6 million in Q3 of 2025. Wages and employee benefits declined to $1.2 million from $1.5 million as we adjusted employee headcount to better align our costs with our anticipated revenues. Selling, general, and administrative expenses rose to $1.3 million from $1 million, primarily due to higher professional fees related to the engagement of outside consultants in the period, and depreciation and amortization declined to $60,000 from $80,000. For the first nine months of fiscal 2026, operating expenses were $8 million compared to $7.7 million in the prior year period.

Speaker #2: Turning to the operating expenses, operating expenses during Q3 of 2026 were $2.5 million, compared to $2.6 million in Q3 of 2025. Wages and employee benefits declined to $1.2 million, from $1.5 million as we adjusted employee headcount to better align our costs with our anticipated revenues.

Speaker #2: As Chad touched on during the third quarter, we filed claims totaling approximately $904,000 for refunds of tariffs paid under IEEPA. Approximately $286,000 of those claims have been accepted and recorded as a receivable in the third quarter.

Speaker #2: Subsequent to the end of the third quarter, we received a payment from U.S. Customs and Border Protection totaling $1,009,000. Of the amount received, $286,000 was recorded as a receivable during Q3.

Speaker #2: Selling general and administrative expenses rose to $1.3 million, from $1 million primarily due to higher professional fees related to the engagement of outside consultants in the period.

Speaker #2: And depreciation and amortization declined to $60,000, from $80,000. For the first nine months of fiscal 2026, operating expenses were $8 million, compared to $7.7 million in the prior year period.

Speaker #2: Wages and employee benefits declined by more than a million, or 22%, to $3.7 million, from $4.7 million. SG&A increased to $4.1 million, from $2.8 million, again primarily due to professional fees associated with outside consultants supporting our strategic plan and our business realignment.

Mitch Van Domelen: Wages and employee benefits declined by more than $1 million or 22% to $3.7 million from $4.7 million. SG&A increased to $4.1 million from $2.8 million, again, primarily due to professional fees associated with outside consultants supporting our strategic plan and our business realignment. We remain committed to reducing annual operating expenses. The wage and employee benefits reduction demonstrates progress against that objective, while the elevated professional fees reflect the work being done to implement the strategic plan during fiscal 2026. Net loss for Q3 of 2026 was $814,000 or $0.23 loss per basic and diluted share, compared to a net loss of $650,000 or $0.18 loss per basic and diluted share in Q3 of 2025.

Speaker #2: Turning to the operating expenses, 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 we adjusted employee headcount to better align our costs with our anticipated revenues.

Speaker #2: We remain committed to reducing annual operating expenses. The wage and employee benefits reduction demonstrates progress against that objective, while the elevated professional fees reflect the work being done to implement the strategic plan during fiscal 2026.

Speaker #2: Selling, general, and administrative expenses rose to $1.3 million from $1 million, primarily due to higher professional fees related to the engagement of outside consultants during the period.

Speaker #2: Net loss for Q3 of 2026 was $814,000, or $23 cent loss per basic and diluted share, compared to a net loss of $650,000, or 18 cent loss per basic and diluted share in Q3 of 2025.

Speaker #2: Depreciation and amortization declined to $60,000 from $80,000. For the first nine months of fiscal 2026, operating expenses were $8.0 million compared to $7.7 million in the prior-year period.

Speaker #2: For the first nine months of fiscal 2026, net loss was $6 million, or $1.71.71 loss per basic and diluted share, compared to a net loss of $1.9 million, or a $54 cent loss per basic and diluted share in the first nine months of fiscal 2025.

Speaker #2: Wages and employee benefits declined by more than $1 million, or 22%, to $3.7 million from $4.7 million. SG&A increased to $4.1 million from $2.8 million, again primarily due to professional fees associated with outside consultants supporting our strategic plan and our business realignment.

Mitch Van Domelen: For the first nine months of fiscal 2026, net loss was $6 million or $1.71 loss per basic and diluted share, compared to a net loss of $1.9 million or a $0.54 loss per basic and diluted share in the first nine months of fiscal 2025. As we've discussed, the year-to-date results were materially affected by the Q1 inventory write-down, as well as liquidation activity, tariff pressure, higher professional fees and logistics costs, and the difficult demand environment in pet and certain outdoor categories. Interest expense for Q3 2026 was approximately $75,000, relatively consistent with the prior year Q3. For the first nine months, interest expense was approximately $342,000 compared to $43,000 in the prior year period, reflecting higher borrowings under our line of credit earlier in the fiscal 2026 before the inventory monetization activity reduced the balance.

Speaker #2: As we've discussed, the year-to-date results were materially affected by the first quarter inventory write-down, as well as liquidation activity, tariff pressure, higher professional fees and logistics costs, and the difficult demand environment in pet and certain outdoor categories.

Speaker #2: Interest expense for Q3 of 2026 was approximately $75,000, relatively consistent with the prior year third quarter. For the first nine months, interest expense was approximately $342,000, compared to $43,000 in the prior year period.

Speaker #2: Net loss for Q3 of 2026 was $814,000, or a $0.23 loss per basic and diluted share, compared to a net loss of $650,000, or a $0.18 loss per basic and diluted share in Q3 of 2025.

Speaker #2: Reflecting higher borrowings under our line of credit earlier in the fiscal 2026, before the inventory monetization activity reduced the balance. Finally, a few comments on the balance sheet and liquidity.

Speaker #2: For the first nine months of fiscal 2026, net loss was $6 million, or $1.71 loss per basic and diluted share, compared to a net loss of $1.9 million, or a $0.54 loss per basic and diluted share, in the first nine months of fiscal 2025.

Speaker #2: Cash and cash equivalents for $1.00 were $1.1 million at May 31, 2026, compared to $547,000 at February 28, 2026, and $226,000 at August 31, 2025.

Mitch Van Domelen: A few comments on the balance sheet and liquidity. Cash and cash equivalents were $1.1 million at 31 May 2026, compared to $547,000 at 28 February 2026, and $226,000 at 31 August 2025. Accounts receivable was $4.2 million at quarter end, compared to $6.5 million at the end of the Q2 and $3.9 million at the beginning of the fiscal year. The sequential decline in receivables reflects collections following the higher sales activity and liquidation transactions that occurred during the Q2. Inventory declined to $7.5 million at 31 May 2026, compared to $9.6 million at 28 February 2026, and $15.9 million at 31 August 2025. That reduction reflects the sale of most of our excess cedar fencing and the liquidation of certain older pet inventory.

Speaker #2: Accounts receivable was $4.2 million at quarter-end, compared to $6.5 million at the end of the second quarter, and $3.9 million at the beginning of the fiscal year.

Speaker #2: The sequential decline in receivables reflects collections following the higher sales activity and liquidation transactions that occurred during the second quarter. Inventory decline to $7.5 million at May 31, 2026, compared to $9.6 million at February 28, 2026, and $15.9 million at August 31, 2025.

Speaker #2: Reflecting higher borrowings under our line of credit earlier in fiscal 2026, before the inventory monetization activity reduced the balance. Finally, a few comments on the balance sheet and liquidity.

Speaker #2: That reduction reflects the sale of most of our excess cedar fencing and the liquidation of certain older pet inventory. Inventory turnover was also improved, with inventory turnover for the third quarter at $98 days, compared to $128 days in the year ago quarter.

Speaker #2: Cash and cash equivalents were $1.1 million at May 31, 2026, compared to $547,000 at February 28, 2026, and $226,000 at August 31, 2025.

Mitch Van Domelen: Inventory turnover was also improved with inventory turnover for the Q3 at 98 days, compared to 128 days in the year-ago quarter, and 120 days for the nine-month period compared to 152 days in the prior year period. Current liabilities declined to $3.6 million at 31 May 2026, compared to $4.7 million at 31 August 2025. Accounts payable declined to $1.3 million from $1.5 million, and accrued liabilities declined to $1 million from $1.1 million. Bank indebtedness declined to $1.3 million at 31 May 2026, compared to $4.3 million at 28 February 2026, and $2.1 million at 31 August 2025. Cash generated from inventory monetization was used to reduce borrowings under the line of credit. For the first nine months of fiscal 2026, net cash provided by operating activities was $1.6 million, compared to net cash used in operating activities, $6 million in the prior year period.

Speaker #2: And $120 days for the nine-month period, compared to $1502 days in the prior year period. Current liabilities declined to $3.6 million, at May 31, 2026, compared to $4.7 million at August 31, 2025.

Speaker #2: Accounts receivable was $4.2 million at quarter-end, compared to $6.5 million at the end of the second quarter, and $3.9 million at the beginning of the fiscal year.

Speaker #2: The sequential decline in receivables reflects collections following the higher sales activity and liquidation transactions that occurred during the second quarter. Inventory declined to $7.5 million at May 31, 2026, compared to $9.6 million at February 28, 2026, and $15.9 million at August 31, 2025.

Speaker #2: Accounts payable declined to $1.7 sorry, $1.3 million, from $1.5 million and accrued liabilities declined to $1 million, from $1.1 million. Bank indebtedness declined to $1.3 million at May 31, 2026, compared to $4.3 million at February 28, 2026, and $2.1 million at August 31, 2025.

Speaker #2: That reduction reflects the sale of most of our excess cedar fencing and the liquidation of certain older pet inventory. Inventory turnover also improved, with inventory turnover for the third quarter at 98 days compared to 128 days in the year-ago quarter.

Speaker #2: Cash generated from inventory monetization was used to reduce borrowings under the line of credit. For the first nine months of fiscal 2026, net cash provided by operating activities was $1.6 million, compared to net cash used in operating activities of $6 million in the prior year period.

Speaker #2: And 120 days for the nine-month period, compared to 150 to 152 days in the prior year period. Current liabilities declined to $3.6 million at May 31, 2026, compared to $4.7 million at August 31, 2025.

Speaker #2: That improvement was driven primarily by the reduction in inventory and better cash conversion. In June 2026, we revised and extended our borrowing agreement with Northwind Funding Services through June 30, 2027.

Mitch Van Domelen: That improvement was driven primarily by the reduction in inventory and better cash conversion. In June 2026, we revised and extended our borrowing agreement with Northwind Funding Services through 30 June 2027. Under the revised agreement, the maximum funding limit was adjusted to $6 million from the prior $8 million. Funding availability against eligible accounts receivable invoices has been reduced from 90% to 85% relative to the December 2025 amendment, but remains favorable compared to the 80% advance rate under the original agreement. The maximum borrowing limit against eligible inventory was reduced to $3 million from $6.5 million. The higher advance rate from the 2025 amendment remains at 50%, and the revised borrowing limits reflect more closely with our forecasted inventory levels. We continue to evaluate strategies to strengthen liquidity, which may include disposition of certain non-core assets and unused real property, as well as other financing alternatives where appropriate.

Speaker #2: Accounts payable declined to $1.3 million from $1.5 million, and accrued liabilities declined to $1 million from $1.1 million. Bank indebtedness declined to $1.3 million at May 31, 2026, compared to $4.3 million at February 28, 2026, and $2.1 million at August 31, 2025.

Speaker #2: Under the revised agreement, the maximum funding limit was adjusted to $6 million, from the prior $8 million. Funding availability against eligible accounts receivable invoices has been reduced from 90% to 85% relative to the December 2025 amendment, but remains favorable compared to the 80% advance rate under the original agreement.

Speaker #2: The maximum borrowing limit against eligible inventory was reduced to $3 million, from $6.5 million. The higher advance rate from the 2025 amendment remains at 50%, and the revised borrowing limits reflect more closely with our forecasted inventory levels.

Speaker #2: We continue to evaluate strategic we continue to evaluate strategies to strengthen liquidity, which may include disposition of certain non-core assets and unused real property, as well as other financing alternatives where appropriate.

Speaker #2: That improvement was given primarily by the reduction in inventory and better cash conversion. In June 2026, we revised and extended our borrowing agreement with Northwind Funding Services through June 30, 2027.

Speaker #2: With that, let me turn it back over to Chad.

Speaker #2: Under the revised agreement, the maximum funding limit was adjusted to $6 million from the prior $8 million. Funding availability against eligible accounts receivable invoices has been reduced from 90% to 85% relative to the December 2025 amendment, but remains favorable compared to the 80% advance rate under the original agreement.

Speaker #1: Thanks, Mitch, for the overview. To reiterate, we believe the third quarter showed progress beneath a difficult headline revenue comparison. Excluding the impact of the discount discontinued cedar fencing supply agreement, revenue would have been up year over year.

Mitch Van Domelen: With that, let me turn it back over to Chad.

Chad Summers: Thanks, Mitch, for the overview. To reiterate, we believe Q3 showed progress beneath a difficult headline revenue comparison. Excluding the impact of the discontinued cedar fencing supply agreement, revenue would have been up year-over-year. Metal fencing improved on a quarterly basis across Adjust-A-Gate, Fit-Rite, Lifetime Steel Post, and Perimeter Patrol. Greenwood continued to strengthen, and we made meaningful progress improving the balance sheet and reducing borrowings. The work is not complete. Margins remain pressured, the tariff environment remains uncertain, consumer discretionary spending remains restrained, and pet remains soft. We are focused on the levers within our control: cash conversion, cost discipline, core product execution, monetization of remaining excess non-core inventory, and strategic alternatives for select assets and business lines.

Speaker #1: Metal fencing improved on a quarterly basis across adjust to gate, fit right, lifetime steel post, and perimeter patrol. Greenwood continued to strengthen, and we made meaningful progress improving the balance sheet and reducing borrowings.

Speaker #2: The maximum borrowing limit against eligible inventory was reduced to $3 million from $6.5 million. The higher advance rate from the 2025 amendment remains at 50%, and the revised borrowing limits more closely reflect our forecasted inventory levels.

Speaker #1: The work is not complete. Margins remain pressured. The tariff environment remains uncertain. Consumer discretionary spending remains restrained, and pet remains soft. But we are focused on the levers within our control: cash conversion, cost discipline, poor product execution, monetization of remaining excess non-core inventory, and strategic alternatives for select assets and business lines.

Speaker #2: We continue to evaluate strategies to strengthen liquidity, which may include the disposition of certain non-core assets and unused real property, as well as other financing alternatives where appropriate.

Speaker #2: With that, let me turn it back over to Chad.

Speaker #1: Thanks, Mitch, for the overview. To reiterate, we believe the third quarter showed progress beneath a difficult headline revenue comparison. Excluding the impact of the discontinued discount cedar fencing supply agreement, revenue would have been up year over year.

Speaker #1: I want to thank our employees for their continued commitment and execution, as well as our customers, partners, and investors, for their support during what remains a period of significant challenge and change.

Chad Summers: I want to thank our employees for their continued commitment and execution as well as our customers, partners, and investors for their support during what remains a period of significant challenge and change. Robert, can you let me know if there are any questions?

Speaker #1: Robert, can you let me know if there are any questions?

Speaker #1: Meadow fencing improved on a quarterly basis across, adjusted to gate fit right, lifetime steel post, and perimeter patrol. Greenwood continued to strengthen, and we made meaningful progress improving the balance sheet and reducing borrowings.

Speaker #3: Yeah. Thank you very much. To Chad and Mitch there for the prepared remarks. Again, we'll open the call for a question-and-answer session. If you are listening to the webcast portal and would like to ask a question, you can type your question into the Ask a Question box on the webcast player there.

Robert Blum: Yeah. Thank you very much to Chad and Mitch there for the prepared remarks. Again, we'll open the call for a question and answer session. If you are listening to the webcast portal and would like to ask a question, you can type your question into the Ask a Question box on the webcast player there. We'll pause for just a moment to see if there are any questions. All right, Chad and Mitch here. We have a question, I guess, just generally relating to tariff refunds. How should investors think about the tariff refunds?

Speaker #3: We'll pause for just a moment to see if there are any questions. All right. Chad and Mitch here. We have a question, I guess, just generally relating to tariff refunds.

Speaker #1: Cash conversion, cost discipline, poor product execution, monetization of remaining excess non-core inventory, and strategic alternatives for select assets and business lines. I want to thank our employees for their continued commitment and execution, as well as our customers, partners, and investors for their support during what remains a period of significant challenge and change.

Speaker #3: How should investors think about the tariff refunds?

Speaker #4: Yeah. I'll take that, Robert. You know, the tariff refunds due to the Supreme Court decision on the IEEPA tariffs represent only a small portion of the overall tariffs that we've paid and continue to pay.

Mitch Van Domelen: Yeah, I'll take that, Robert. 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 Q3. Subsequent to the end of the period, we received a payment from U.S. Customs and Border Protection for the outstanding amount, including remaining claims that had yet to be approved at the end of Q3. There was approximately $40,000 in interest and a few other post summary corrections that were collected as well. We still have a nominal amount of claims that were rejected, and we will continue to pursue and dispute the process once that's available.

Speaker #4: 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.

Speaker #1: Robert, can you let me know if there are any questions?

Speaker #3: Yeah, thank you very much. To Chad and Mitch there for the prepared remarks. Again, we'll open the call for a question-and-answer session.

Speaker #4: Subsequent to the end of the period, we received a payment from U.S. Customs and Border Protection for the outstanding amount, including remaining claims that had yet to be approved at the end of the third quarter.

Speaker #3: If you are listening to the webcast portal and would like to ask a question, you can type your question into the "Ask a Question" box on the webcast player there.

Speaker #3: We'll pause for just a moment to see if there are any questions. All right. Chad and Mitch here. We have a question, I guess, just generally relating to tariff refunds.

Speaker #4: There was approximately $40,000 in interest and a few other post-summary corrections that were collected as well. We still have a nominal amount of claims that were rejected and we will continue to pursue and dispute the process once that's available.

Speaker #3: How should investors think about the tariff refunds?

Speaker #4: 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.

Speaker #4: Yeah, I'll take that, Robert. You know, the tariff refunds due to the Supreme Court decision on the IEEPA tariffs represent only a small portion of the overall tariffs that we've paid and continue to pay.

Mitch Van Domelen: 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.

Speaker #3: All right. Another question here, just pertaining to sort of what is happening in general within the pet products component of the business.

Speaker #4: 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.

Robert Blum: All right. Another question here just pertaining to what is happening in general within the pet products component of the business.

Speaker #1: Yeah. I'll take that question. You know, 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.

Chad Summers: Yeah, I'll take that question. 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. That's pretty much our approach right now with the pet product category.

Speaker #1: So that's pretty much our approach right now with the pet product category.

Speaker #4: There was approximately $40,000 in interest, and a few other post-summary corrections that were collected as well. We still have a nominal amount of claims that were rejected, and we will continue to pursue and dispute the process once that's available.

Speaker #3: Okay. Very good. I am showing no further questions here at this time, so Chad, I will turn it back over to you for any closing remarks.

Robert Blum: Okay. Very good. I am showing no further questions here at this time. Chad, I will turn it back over to you for any closing remarks.

Speaker #1: Yes. Thank you again for your interest in Jewett Cameron. We appreciate your continued support as we work through these challenging operating environment and continue executing on the strategic initiatives designed to strengthen the company.

Speaker #4: 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.

Chad Summers: Yes. Thank you again for your interest in Jewett-Cameron. We appreciate your continued support as we work through this challenging operating environment and continue executing on the strategic initiatives designed to strengthen the company, focus the business, and create long-term value for shareholders. Thank you.

Speaker #3: All right. Another question here, just pertaining to what is happening in general within the pet products component of the business.

Speaker #1: Focus the business and create long-term value for shareholders. Thank you.

Speaker #1: Yeah, I'll take that question. You know, 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.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker #1: So that's pretty much our approach right now with the pet product category.

Speaker #3: Okay, very good. I am showing no further questions here at this time. So, Chad, I will turn it back over to you for any closing remarks.

Speaker #1: Yes. Thank you again for your interest in Jewett-Cameron. We appreciate your continued support as we work through these challenging operating environments and continue executing on the strategic initiatives designed to strengthen the company, focus the business, and create long-term value for shareholders.

Speaker #1: Thank you.

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