Jewett-Cameron Trading Company Ltd (JCTC) 2026 Q2 法說會逐字稿

Good afternoon, and welcome to the Jewett-Cameron reports second quarter fiscal year 2026 financial results conference call. (Operator Instructions) Please note this event is being recorded.

下午好，歡迎參加 Jewett-Cameron 公布 2026 會計年度第二季財務結果的電話會議。(接線員指示) 請注意，本活動將被錄音。

I would now like to turn the conference over to Mr. Robert Blum with Lytham Partners. Please go ahead.

現在我想把會議交給 Lytham Partners 的 Robert Blum 先生。請開始。

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 second quarter. This is for the period ended February 28, 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.

好的。非常感謝，也感謝各位今天加入我們，一同討論 Jewett-Cameron 於 2026 會計年度第二季的營運與財務成果。本季涵蓋期間截至 2026 年 2 月 28 日。今天代表公司出席電話會議的有：Jewett-Cameron 執行長 Chad Summers，以及公司財務長 Mitch Van Domelen。

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

在今天預先準備的發言結束後，我們將回覆已提交給公司的問題。

Before we begin with prepared remarks, please note that statements made by the management team at 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.

在開始預備發言之前，請注意 Jewett-Cameron 管理團隊在本次電話會議期間所做的陳述，可能包含美國證券法所定義的前瞻性陳述。前瞻性陳述描述未來的預期、計畫、結果或策略，通常會以「可能」、「未來」、「計畫」、「將」、「應」、「預期」、「預料」或類似字眼作為開頭。

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, 2025, and other filings made with the Securities and Exchange Commission.

提醒聽眾注意，這些陳述受到多項風險與不確定性影響，可能導致未來情況、事件或結果與前瞻性陳述中所述有重大差異；相關因素及其他風險已載於公司截至 2025 年 8 月 31 日止會計年度的 10-K 年報，以及向美國證券交易委員會提交的其他文件中。

An audio recording and webcast replay for today's conference call will also be available on the company's Investor Relations page.

本次電話會議的音訊錄音與網路直播回放，也將在公司投資人關係頁面提供。

With that said, let me turn the call over to Chad Summers, Chief Executive Officer for Jewett-Cameron. Chad, please proceed.

接下來，讓我把電話交給 Jewett-Cameron 執行長 Chad Summers。Chad，請開始。

Good afternoon, and thank you for joining us today. To set the stage for today's call, let me first dive into a few key financial highlights for the quarter and six-month period. Then I'll discuss updates on a few of the key initiatives we have mentioned in the last few calls, and I'll provide an update into our end markets before turning it over to Mitch to review the financials in more details. I will then wrap things up and then look to address any questions there might be.

下午好，感謝各位今天加入我們。為了鋪陳今天的電話會議，我先說明本季與上半年期間的幾項關鍵財務重點。接著我會更新我們在過去幾次電話會議中提到的幾項關鍵計畫進展，並就終端市場提供最新看法，然後交給 Mitch 更詳細地說明財務狀況。最後我會做總結，並回覆可能的提問。

So, to start things off. Revenue for the second quarter increased 16% year-over-year to $10.5 million and 5% for the first six months over last year. That increase was driven primarily by the sell-through of substantial portions of our excess feeder fencing inventory, the liquidation of certain slow-moving pet inventory, and stronger sales at Greenwood.

那麼先從整體開始。第二季營收年增 16% 至 1,050 萬美元；前六個月營收較去年同期成長 5%。這項成長主要來自：我們售出在寄售銷售協議終止前累積的大量多餘飼料槽圍欄庫存、清理部分滯銷的寵物庫存，以及 Greenwood 銷售表現更強勁。

I'll touch more on this in a moment.

我稍後會再多談一些。

Within metal fencing, higher lifetime steel post sales were offset by lower adjuster gate and other metal fence products. We saw a meaningful improvement in gross margin versus the sequential first quarter. Gross margins moved to 15.7% in Q2 from negative 12.5% in Q1, despite a meaningful amount of essentially zero margin liquidation activity this quarter.

在金屬圍欄方面，Lifetime Steel Post 較高的銷售量，被 AdjustiGate 門與其他金屬圍欄產品較低的銷售所抵銷。我們看到毛利率相較於前一季第一季有明顯改善。儘管本季仍有相當多幾乎零毛利的清庫活動，第二季毛利率仍由第一季的負 12.5% 回升至 15.7%。

We continue to work to realign our costs with end-market pricing to improve our gross margins. Acceptance of price increases are not happening as fast as costs are changing. Margins remain below historical levels due to liquidation sales below cost, a higher mix of lower margin product sales and continued pressure from raw material, shipping, logistics and tariff-related costs. We continue to make progress aligning the business and the balance sheet with current market conditions.

我們持續努力使成本結構與終端市場定價重新對齊，以改善毛利率。價格上調的接受度並未像成本變動那樣快速反映。由於低於成本的清庫銷售、較高比重的低毛利產品銷售，以及原物料、運輸、物流與關稅相關成本的持續壓力，毛利率仍低於歷史水準。我們持續推進，使業務與資產負債表更符合目前市場狀況。

As mentioned, we sold through substantial portions of the excess feeder fencing inventory accumulated before the consignment sales agreement was terminated, liquidated a significant portion of slow-moving pet inventory, and continued to reduce overhead and administrative costs.

如前所述，我們已售出在寄售銷售協議終止前累積的大量多餘飼料槽圍欄庫存、清理了相當部分滯銷的寵物庫存，並持續降低間接費用與行政成本。

Wages and employee benefits declined 19% year over year to $1.3 million, while SG&A was higher, primarily due to professional fees and warehousing costs associated with the excess lumber inventory. So while this quarter still reflects a challenging operating environment, we believe we made meaningful progress on many of the actions we outlined last quarter.

薪資與員工福利年減 19% 至 130 萬美元；而 SG&A（銷售、一般及行政費用）較高，主要是因與過剩木材庫存相關的專業服務費與倉儲成本所致。因此，雖然本季仍反映出具挑戰性的營運環境，但我們認為在上季所提出的多項行動上已取得實質進展。

Let's turn to an update on how the initiatives we outlined in December and again in January are progressing and how we are positioning the company as we move through a difficult operating environment.

接下來談談我們在 12 月以及 1 月所提出的各項計畫，目前的推進情況，以及在艱困的營運環境中我們如何為公司定位。

Many of the broader headwinds impacting the business continue to persist, especially around tariffs, purchasing behavior and consumer demand. That said, we believe the actions we have taken and continue to take are helping us streamline the company, reduce exposure to non-core issues and strengthen 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 successful product category.

影響業務的多項整體逆風仍在持續，尤其是關稅、採購行為與消費者需求等方面。儘管如此，我們相信已採取並持續推動的行動，正協助我們精簡公司、降低對非核心議題的曝險，並強化業務基礎。我們策略的核心仍是金屬圍欄主業，這仍是我們最大且最成功的產品類別。

Lifetime Steel Post continue to show positive momentum expanding through existing accounts and our in-store displays continue to support consumer engagement.

Lifetime Steel Post 持續展現正向動能，透過既有客戶持續擴張，而我們的店內展示也持續支持消費者互動。

While higher LTP sales were offset by overall lower sales of AdjustiGate and other metal fence products, we continue to see meaningful opportunity in fencing through expanded store penetration, better merchandising and growth in more of our sales channels.

雖然較高的 LTP 銷售被 AdjustiGate 與其他金屬圍欄產品整體較低的銷售所抵銷，但我們仍在圍欄業務上看到顯著機會，包括擴大門市滲透率、更佳的陳列與更多銷售通路的成長。

Metal fencing remains the primary focus of our operations, capital allocation, and innovation efforts, and we continue to work on enhancements to our current products while evaluating complementary offerings from third parties that can broaden the line over time.

金屬圍欄仍是我們營運、資本配置與創新投入的主要焦點；我們持續改善現有產品，同時評估可隨時間擴充產品線的第三方互補性產品。

Operational efficiency and organizational alignment also remain key priorities. We continue to execute initiatives designed to reduce complexity, lower costs, improve execution, including further headcount reduction where appropriate, tighter overhead control, and disciplined inventory management.

營運效率與組織對齊也仍是關鍵優先事項。我們持續執行旨在降低複雜度、降低成本並提升執行力的各項計畫，包括在適當情況下進一步縮減人力編制、更嚴格的間接費用控管，以及有紀律的庫存管理。

A major focus this quarter was the monetization of excess inventory. During the second quarter, we successfully negotiated with the consignment customer for them to purchase the portion of the excess cedar fencing inventory already present in their distribution facilities and additional purchases through the end of the calendar year at the originally contracted prices. And we sold most of the remaining excess cedar inventory to a lumber wholesaler.

本季的一大重點是將過剩庫存變現。在第二季期間，我們成功與寄售客戶協商，由其以原合約價格買下已在其配送設施中的那部分過剩雪松圍欄庫存，並同意在日曆年度結束前追加採購。此外，我們也將剩餘的大部分過剩雪松庫存出售給一家木材批發商。

While a portion of that inventory was sold below cost, these actions unlocked stranded capital, greatly reducing carrying costs and improved our inventory position. We continued similar efforts on the pet side of the business. We have been liquidating certain slow-moving pet inventory to reduce our exposure and convert inventory into cash, even though those sales have been made at below cost. Our pet business is focused on pet containment, where our Lucky Dog brand has established a solid reputation for providing quality, safe spaces for pets at affordable prices.

雖然其中一部分庫存以低於成本售出，但這些行動釋放了被閒置的資金，大幅降低持有成本，並改善了我們的庫存狀況。我們在寵物業務方面也持續進行類似努力。我們一直在清理部分滯銷的寵物庫存，以降低曝險並將庫存轉換為現金，儘管這些銷售是以低於成本進行。我們的寵物業務聚焦於寵物圍欄與限制活動範圍（pet containment），其中 Lucky Dog 品牌已建立良好口碑，以可負擔的價格為寵物提供高品質且安全的空間。

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. The work we are doing now to reduce non-core inventory, streamline the organization, and sharpen our focus is all consistent with that objective.

我們仍承諾將年度營運費用降低 100 萬至 300 萬美元，並計畫在 2026 會計年度結束時，建立一個可長期永續的商業模式。我們目前為降低非核心庫存、精簡組織並聚焦重點所做的工作，皆與此目標一致。

In addition, as announced previously, we continue to evaluate strategic options that prioritize the company's overall value. This includes completing the monetization of our remaining excess non-core inventory while evaluating strategic partnerships, collaborations, and potential divestitures involving select businesses. And real estate assets.

此外，如先前所宣布，我們持續評估以公司整體價值為優先的策略選項。這包括在評估策略夥伴關係、合作以及涉及特定業務的潛在剝離之同時，完成我們剩餘超額非核心庫存的變現。以及不動產資產。

These efforts may include Greenwood, our industrial lumber subsidiary, selected pet assets, our wood fencing business and certain real estate assets, including the former seed processing property and the Innovation Studio property.

這些努力可能包括 Greenwood（我們的工業木材子公司）、部分寵物資產、我們的木製圍籬業務以及若干不動產資產，包括前種子加工廠房與 Innovation Studio 物業。

As we have said previously, these discussions may include mergers, acquisitions, divestitures, joint ventures, and other collaborations involving specific assets or business lines. There can be no assurance that any of these discussions will result in definitive agreement or completed transaction. The company does not intend to provide further updates on these discussions unless and until a definitive agreement is reached.

如我們先前所述，這些討論可能包括涉及特定資產或業務線的合併、收購、剝離、合資以及其他合作形式。無法保證任何此類討論將達成具體協議或完成交易。除非且直到達成具體協議，否則公司無意就這些討論提供進一步更新。

Turning to the broader environment, tariff changes and uncertainty continue to create cost pressures and disrupt purchasing patterns across our markets, while soft consumer sentiment continues to weigh on discretionary spending.

談到更廣泛的環境，關稅變動與不確定性持續造成成本壓力，並擾亂我們各市場的採購模式；同時，疲弱的消費者信心仍持續壓抑非必需性支出。

Those conditions are having broader impacts on both our do-it-yourself and home improvement professional customer base. We have made progress aligning our cost with end-market pricing from last year's tariffs, but the environment remains volatile.

這些狀況對我們的 DIY（自己動手）與居家改善專業客戶群都產生更廣泛的影響。我們已在使成本與去年關稅後的終端市場定價對齊方面取得進展，但環境仍然波動。

Most of the tariffs affecting our imported steel and aluminum products remain in place, and following the recent changes to the Section 232 steel and aluminum tariffs in April, we are currently evaluating how the new rule will apply to our imported products.

影響我們進口鋼鐵與鋁產品的大多數關稅仍然存在；而在 4 月近期對《232 條款》鋼鋁關稅作出調整後，我們目前正在評估新規則將如何適用於我們的進口產品。

At this point, we do not expect that change to relieve much, if any, of the overall tariff burden on our metal products, and in some cases, it may increase the amounts of tariffs due.

就目前而言，我們預期該變更對我們金屬產品的整體關稅負擔幾乎不會帶來任何緩解；在某些情況下，甚至可能增加應繳關稅金額。

In addition to tariffs, we are beginning to see higher fuel-related shipping and logistical costs, and our ability to pass those higher costs through quickly remains limited. But while we are encouraged by the operational progress made during the quarter, we remain very mindful of the pressures still present in the external environment.

除關稅外，我們也開始看到與燃料相關的運輸與物流成本上升，而我們快速將這些較高成本轉嫁出去的能力仍然有限。不過，儘管我們對本季營運進展感到鼓舞，我們仍非常留意外部環境中仍然存在的壓力。

As we look ahead, our objective remains 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.

展望未來，我們的目標依然明確：在 2026 財年結束時，打造一個可長期永續的商業模式，聚焦於我們最強的產品類別，以嚴謹的營運作為支撐，並在適當情況下透過非核心資產釋放價值。

While the environment remains complex, we believe the progress we are making across our strategic initiatives continues to reinforce the direction we are taking.

儘管環境仍然複雜，我們相信在各項策略性計畫上所取得的進展，持續強化我們所採取的方向。

Let me turn the call over to Mitch for additional comments.

接下來我把電話交給 Mitch，請他補充說明。

Thank you, Chad, and good afternoon to everyone on the call today.

謝謝你，Chad，也向今天參與電話會議的各位致上下午好。

My comments will focus on adding color to key areas and events that had material influence on the second quarter. Let's start with the revenue line.

我的評論將著重於補充第二季中對關鍵領域與事件的說明，這些因素對第二季產生了重大影響。我們先從營收談起。

Revenue for the second quarter of fiscal. 2026 was $10.5 million, compared to $9.1 million in Q2 of 2025, an increase of 16%. The growth in revenue was driven primarily by the liquidation of certain slow-moving pit inventory, the sale of excess cedar fencing that was purchased prior to the termination of the consignment sales arrangement with a major retailer, and stronger sales at Greenwood.

2026 財年第二季營收為 1,050 萬美元，較 2025 年第二季的 910 萬美元增加 16%。營收成長主要來自：清理部分滯銷的 pit 庫存、出售在與大型零售商終止寄售銷售安排前所採購的多餘雪松圍籬，以及 Greenwood 較強勁的銷售表現。

Within metal fencing, Higher Lifetime Steel post sales were offset by lower sales of adjusted gates and other metal fence products. At Greenwood, sales for the second quarter were $1.5 million compared to $1.1 million in Q2 of 2025, an increase of 31%.

在金屬圍籬方面，Lifetime Steel 立柱銷售較高，但被調整後的門（gates）及其他金屬圍籬產品銷售下滑所抵銷。在 Greenwood，第二季銷售額為 150 萬美元，較 2025 年第二季的 110 萬美元增加 31%。

There, demand from transit customers continued to recover as workers have returned to offices, and we also have benefited from higher sales to non-transit customers.

在那裡，隨著員工返回辦公室，來自運輸（transit）客戶的需求持續復甦；同時，我們也受惠於對非運輸客戶的銷售增加。

For the first six months of fiscal 2026, revenue was $19.2 million compared to $18.3 million in the first six months of fiscal 2025, an increase of 5%. That said, approximately $2.5 million of those first half sales were from the liquidation of certain pet inventory and the sale of our excess cedar fencing inventory, and those sales will not repeat in future periods.

2026 財年前六個月營收為 1,920 萬美元，較 2025 財年前六個月的 1,830 萬美元增加 5%。不過，其中約 250 萬美元的上半年銷售來自清理部分寵物庫存以及出售我們多餘的雪松圍籬庫存，而這些銷售在未來期間不會重複出現。

Turning to gross profit. Gross profit margins during Q2 2026 were 15.7% compared to 20.1% in Q2 of 2025 and negative 12.5% in Q1 of 2026. So while margins declined year-over-year, they improved significantly on a sequential basis.

接著談毛利。2026 年第二季毛利率為 15.7%，相較於 2025 年第二季的 20.1%，以及 2026 年第一季的負 12.5%。因此，雖然毛利率較去年同期下滑，但按季比較則顯著改善。

The year-over-year decline and the significant decline in the first quarter were primarily due to the increase in the inventory reserve related to the liquidation of certain pet inventory and the surplus cedar fencing at prices at or below cost, along with the higher mix of lower margin products.

年對年下滑以及第一季的大幅下滑，主要是因為：與清理部分寵物庫存及以成本或低於成本價格處分過剩雪松圍籬相關的存貨備抵增加，加上低毛利產品占比提高。

For the six months of fiscal 2026, gross margin was 3% compared to 19.2% in the first six months of fiscal '25. That first half comparison was negatively affected, again, by the $2.2 million inventory right now taken in the first quarter related to the pet inventory and the lumber inventory and the liquidation activity during the current six-month period.

2026 財年前六個月毛利率為 3%，相較於 2025 財年前六個月的 19.2%。同樣地，上半年比較受到負面影響，主要是第一季就寵物庫存與木材庫存提列的 220 萬美元存貨減損（或備抵），以及本六個月期間的清理活動所致。

As Chad mentioned, we have continued to work on aligning our costs with end-market pricing. While progress has been made, our costs remain elevated due to higher raw material costs, higher shipping and logistics costs, and the import tariffs that began in March of 2025.

如 Chad 所提到，我們持續致力於使成本與終端市場定價對齊。雖然已取得進展，但由於原物料成本上升、運輸與物流成本上升，以及自 2025 年 3 月開始的進口關稅，我們的成本仍然偏高。

Turning to operating expenses, during Q2 2026, they were $2.8 million compared to $2.6 million in Q2 of 2025. Breaking that down, wages and employee benefits declined to $1.3 million from $1.6 million as we continue to reduce headcount and align the organization with current operating conditions.

接著談營業費用，2026 年第二季為 280 萬美元，較 2025 年第二季的 260 萬美元增加。進一步拆解，隨著我們持續縮減人力並使組織與目前營運狀況對齊，薪資與員工福利由 160 萬美元降至 130 萬美元。

Selling, general, and administrative expenses rose to $1.4 million from $940,000, primarily due to higher professional fees related to the engagement of additional consultants and higher lumber warehousing costs associated with the excess inventory position.

銷售、一般及行政費用由 94 萬美元上升至 140 萬美元，主要因聘用更多顧問而產生較高的專業服務費，以及因超額庫存部位而增加的木材倉儲成本。

For the first six months of 2026, operating expenses were $5.5 million, compared to $5.1 million in the prior-year period. The increase was again driven by higher SG&A, while wages and employee benefits declined 23% to $2.5 million from $3.2 million.

2026 年前六個月營業費用為 550 萬美元，較去年同期的 510 萬美元增加。增加同樣主要由較高的 SG&A 所帶動；同時，薪資與員工福利下降 23%，由 320 萬美元降至 250 萬美元。

As Chad noted, we remain committed to reducing annual operating expenses by $1 million to $3 million as we continue our operational realignment.

如 Chad 所指出，隨著我們持續進行營運重整，我們仍致力於將年度營業費用降低 100 萬至 300 萬美元。

Primarily as a result of the margin pressures we've discussed, net loss for Q2 2026 was $1.2 million or a $0.35 loss per basic and diluted share, compared to a net loss of $573,000 or a $0.16 loss per basic and diluted share in Q2 2025.

主要由於我們所討論的毛利壓力，2026 年第二季淨損為 120 萬美元，基本及稀釋後每股虧損 0.35 美元；相較之下，2025 年第二季淨損為 57.3 萬美元，基本及稀釋後每股虧損 0.16 美元。

For the six months of fiscal 2026, net loss was $5.2 million or $1.48 loss per basic and diluted share, compared to a net loss of $1.2 million or a loss of $0.35 per basic and diluted share in the first six months of fiscal 2025.

2026 財年前六個月淨損為 520 萬美元，基本及稀釋後每股虧損 1.48 美元；相較之下，2025 財年前六個月淨損為 120 萬美元，基本及稀釋後每股虧損 0.35 美元。

As we've discussed, that first half result was heavily impacted by the inventory write-down taken in the first quarter and the ongoing liquidation of pet and excess seeder inventory.

如同我們先前討論的，上半年業績受到第一季提列的存貨減損，以及持續清理寵物用品與過剩雪松圍籬存貨的重大影響。

Finally, a few comments on the balance sheet. Our inventory balance at February 28, 2026, was $9.6 million. That compares to $13.5 million at the end of November 30, 2025 and $15.9 million at the end of August 2025. This reduction reflects the sell-through of substantial portions of our excess Cedar fencing inventory and the liquidation of certain older pet inventory.

最後，針對資產負債表補充幾點說明。截至2026年2月28日，我們的存貨餘額為960萬美元。相較之下，2025年11月30日期末為1,350萬美元，2025年8月期末為1,590萬美元。此一減少反映我們已售出相當大部分的過剩雪松圍籬存貨，並清理部分較舊的寵物用品存貨。

Accounts receivable at quarter end were $6.5 million compared to $3.9 million at August 31, 2025, reflecting the timing of collections on the higher sales volume late in the quarter. Substantially, all amounts due at quarter end have since been collected and used to reduce borrowings under our credit facility.

季末應收帳款為650萬美元，相較2025年8月31日的390萬美元，主要反映本季後段較高銷售量下收款時點的影響。基本上，季末到期應收款項其後均已收回，並用以降低我們在信用額度項下的借款。

Cash and cash equivalents were $547,000 at quarter end compared to $226,000 at August 31, 2025. As of February 28, 2026, we had $4.3 million outstanding under our North Rim Credit Facility compared to $2.1 million at August 31. Based on the company's current working capital position, the expected timing of accounts receivable collections and the capital available under our revised credit arrangement, we believe the company has sufficient liquidity to meet working capital needs for the next 12 months.

季末現金及約當現金為54.7萬美元，相較2025年8月31日的22.6萬美元。截至2026年2月28日，我們在 North Rim 信用融資額度項下的未償餘額為430萬美元，相較8月31日的210萬美元。基於公司目前的營運資金狀況、預期應收帳款回收時點，以及修訂後信用安排下可動用的資金，我們認為公司具備足夠流動性，以滿足未來12個月的營運資金需求。

At the same time, we continue to evaluate additional strategies to strengthen liquidity and unlock value through the monetization of non-core assets.

同時，我們也持續評估其他策略，以強化流動性，並透過非核心資產變現來釋放價值。

With that, let me turn it back over to Chad.

接下來我把時間交還給 Chad。

Thanks, Mitch, for the overview. To reiterate, our objective remains to exit fiscal 2026 with a business model that is sustainable in the long-term, leveraging the value of non-core assets to support our core growth strategy and deliver enhanced value to shareholders. We remain focused on steady execution, disciplined decision-making, and building a stronger and more focused company for the future.

謝謝你，Mitch，所做的概述。再次重申，我們的目標仍是於2026會計年度結束時，建立一個長期可持續的商業模式，運用非核心資產的價值來支持核心成長策略，並為股東帶來更高的價值。我們將持續專注於穩健執行、紀律性的決策，並為未來打造一家更強大且更聚焦的公司。

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

我也要感謝我們的員工持續投入與落實執行，同時也感謝我們的客戶、合作夥伴與投資人，在這段仍充滿重大挑戰與變動的期間與我們合作。

Robert, can you let me know if there are any questions?

Robert，你能告訴我是否有任何問題嗎？

Great. Yeah, thank you very much, Chad and Mitch, for the prepared remarks. Again, if you have a question through the portal, you can type it into the Ask a Question box on your webcast screen there.

很好。是的，非常感謝 Chad 和 Mitch 的事先準備發言。再次提醒，如果您透過入口網站提問，可以在網路直播畫面上的「Ask a Question」欄位輸入問題。

First question here is, to the extent possible, 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?

第一個問題是：在可能的範圍內，能否量化第二季相較第一季木材清庫與過剩寵物用品存貨的銷售量與影響，並說明目前仍有多少此類存貨尚未處理？

Yes, great question. Approximately $2.5 million of second quarter sales came from liquidating certain ped inventory and selling excess cedar fencing. And we have previously mentioned that those sales will not repeat in future periods.

是的，這是個很好的問題。第二季約有250萬美元的銷售額來自清理部分寵物用品存貨以及出售過剩的雪松圍籬。我們先前也提到，這些銷售在未來期間不會重複出現。

And we did make substantial progress in selling most, a majority of the excess lumber inventory. Again, the material, as I mentioned before, already in the customer's distribution facilities was sold at the contracted price and generated a small profit, while the remaining excess inventory was sold to wholesaler below cost.

而且我們在出售大部分、也就是多數的過剩木材存貨方面，確實取得了重大進展。再次說明，如我先前提到，已在客戶配送中心的材料以合約價格售出並產生小幅利潤，而其餘過剩存貨則以低於成本的價格出售給批發商。

The important outcome was converting stranded capital back into cash, reducing warehouse costs, and reducing the need for additional borrowing. So that was the result of that. Hope that answers the question.

重要的成果是把閒置的資金轉回現金、降低倉儲成本，並減少額外借款的需求。因此這就是該項行動的結果。希望有回答到這個問題。

Okay, great.

好的，很好。

Next question here is, do you have any updates on the sale of Jewett-Cameron Seed property in Hillsboro and the Innovation Studio property in North Plains?

下一個問題是：關於位於 Hillsboro 的 Jewett-Cameron Seed 物業，以及位於 North Plains 的 Innovation Studio 物業出售案，有沒有任何最新進展？

Yes, they remain listed for sale, and we will certainly provide additional information when a sale document is executed.

是的，它們仍在掛牌出售中；一旦簽署出售文件，我們一定會提供更多資訊。

Okay, very good.

好的，非常好。

Next question here is, can you sort of expand upon tariff refunds and the, I think it was mentioned, the April 2026 Section 232 change?

下一個問題是：能否進一步說明關稅退稅，以及我想先前提到的2026年4月《232條款》（Section 232）變更？

Yeah, another great question. The refund, of course, is related to the IEEPA-related tariffs. And as we've said, any refund is not expected to be material. And the timing and method remain uncertain. The reason for this is because our products have been more impacted by the steel tariffs than the IEEPA-related tariffs.

是的，又是一個很好的問題。退稅當然與 IEEPA 相關關稅有關。如同我們所說，任何退稅預期都不會是重大金額。而其時點與方式仍不確定。原因在於，相較 IEEPA 相關關稅，我們的產品受到鋼鐵關稅的影響更大。

And as far as the April 2026 Section 232 steel tariff change, the tariff is now going to be calculated on the full value of imported products rather than only the metal value, which in some cases could increase tariff expense. And we are still evaluating the product-by-product impact. In fact, some products will remain at 50% and be applied to the full value of the product, and others will be reduced to 25%, but also applied to the full value of the product. So a lot of moving parts on those tariffs.

至於2026年4月《232條款》鋼鐵關稅的變更，關稅將改為以進口產品的全額價值計算，而不再僅以金屬價值計算；在某些情況下，這可能會增加關稅費用。我們仍在逐項評估對各產品的影響。事實上，有些產品仍維持50%稅率並適用於產品全額價值；另一些產品則會降至25%，但同樣適用於產品全額價值。因此這些關稅有很多變動因素。

Okay. And perhaps the last question here is, what is the latest on the cost reduction program?

好的。也許最後一個問題是：成本削減計畫的最新進度如何？

The cost reduction program -- standby, I'll get my notes here.

成本削減計畫——請稍等，我先把筆記找出來。

Yes. We do 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 down 23% in the six-month period. And we remain committed to reducing annual operating expense by $1 million to $3 million as part of the exiting fiscal 2026 with a more sustainable model.

是的。我們確實持續精簡人力，並使成本結構與目前的營收水準相匹配。第二季薪資與員工福利年減19%，六個月期間年減23%。我們仍致力於將年度營運費用降低100萬至300萬美元，以作為在2026會計年度結束時建立更可持續模式的一部分。

I am showing no further questions at this time. So with that, Chad, I will turn it over to you for any closing remarks.

我目前顯示沒有其他問題。因此，Chad，我把時間交給你做結語。

Great. Thank you again for your interest in Jewett-Cameron, and I do look forward to communicating with you in the months to come as we continue to execute on these reformulated strategic initiatives.

很好。再次感謝各位對 Jewett-Cameron 的關注；隨著我們持續推動這些重新調整後的策略措施，我也期待在未來幾個月與各位保持溝通。

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

本次電話會議到此結束。感謝您參加今天的簡報。您現在可以中斷連線。