Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2021

DELSON, Quebec, Oct. 07, 2021 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) announced today its financial results for the third quarter ended August 31, 2021. The Company reported a net income of $10.0 million or $1.17 per share compared to a net income of $6.7 million or $0.78 per share a year ago. Sales for the three months ended August 31, 2021 were $168.0 million compared to $138.8 million last year. Sales in Canada increased 22% compared to the same period a year ago, while sales in the United States increased 31% and export sales decreased 12%. Selling, administrative and general expenses increased overall by $2.4 million.

For the nine months ended August 31, 2021, the Company reported a net income of $27.8 million or $3.24 per share compared to a net income of $8.0 million or $0.94 per share a year ago. Sales were $472.9 million compared to $331.5 million last year. Sales in Canada increased 47% compared to the same period a year ago, while sales in the United States increased 17% and export sales increased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses increased overall by $11.5 million.

Third-quarter results of fiscal 2021 were characteristic for the period, which is considered the driver of the seasonal product business. At the onset of July, market conditions were increasingly difficult with the commodity pricing crisis that played havoc with demand in all sectors. Also, new home construction, renovation, manufacturing and industrial sectors showed some signs of slowing. Goodfellow was able to rely on its diversified offering and value-added capabilities to retain market share and continue on a positive trend.

About Goodfellow

Goodfellow is a diversified manufacturer of value-added lumber products, as well as a wholesale distributor of building materials and floor coverings. Goodfellow has a distribution footprint from coast-to-coast in Canada servicing commercial and residential sectors through lumber yard retailer networks, manufacturers, industrial and infrastructure project partners, and floor covering specialists. Goodfellow also leverages its value-added product capabilities to serve lumber markets internationally. Goodfellow Inc. is a publicly traded company, and its shares are listed on the Toronto Stock Exchange under the symbol “GDL”.

GOODFELLOW INC.        
Consolidated Statements of Comprehensive Income        
For the three and nine months ended August 31, 2021 and 2020        
(in thousands of dollars, except per share amounts)        
Unaudited        
         
  For the three months ended For the nine months ended
  August 31
2021
August 31
2020
August 31
2021
August 31
2020
  $ $ $ $
         
Sales 167,953 138,843 472,911 331,462
Expenses        
Cost of goods sold 133,048 111,030 369,227 266,748
Selling, administrative and general expenses 20,210 17,834 62,922 51,402
Net financial costs 751 679 2,141 2,152
  154,009 129,543 434,290 320,302
         
Earnings before income taxes 13,944 9,300 38,621 11,160
         
Income taxes 3,905 2,604 10,837 3,125
         
Total comprehensive income 10,039 6,696 27,784 8,035
         
         
Net earnings per share – Basic and Diluted 1.17 0.78 3.24 0.94
GOODFELLOW INC.      
Consolidated Statements of Financial Position      
(in thousands of dollars)
Unaudited
     
       
  As at As at As at
  August 31
2021
November 30
2020
August 31
2020
  $ $ $
Assets      
Current Assets      
Cash 1,726 3,466 1,884
Trade and other receivables 72,118 76,093 64,511
Inventories 115,046 84,740 82,498
Prepaid expenses 4,290 2,584 2,077
Total Current Assets 193,180 166,883 150,970
       
Non-Current Assets      
Property, plant and equipment 30,220 31,148 31,536
Intangible assets 2,789 3,238 3,420
Right-of-use assets 12,630 14,324 15,113
Defined benefit plan asset 1,901 1,945 2,188
Other assets 785 785 778
Total Non-Current Assets 48,325 51,440 53,035
Total Assets 241,505 218,323 204,005
       
Liabilities      
Current liabilities      
Bank indebtedness 24,681 28,570 23,872
Trade and other payables 41,680 39,614 35,818
Income taxes payable 7,418 4,859 3,246
Provision 2,730 1,473 1,514
Dividend payable 2,141
Current portion of lease liabilities 4,270 4,315 4,338
Total Current Liabilities 80,779 80,972 68,788
       
Non-Current Liabilities      
Lease liabilities 11,405 13,343 14,194
Deferred income taxes 1,597 1,597 2,269
Defined benefit plan obligation 1,280 1,182 734
Total Non-Current Liabilities 14,282 16,122 17,197
Total Liabilities 95,061 97,094 85,985
       
Shareholders’ Equity      
Share capital 9,424 9,424 9,424
Retained earnings 137,020 111,805 108,596
  146,444 121,229 118,020
Total Liabilities and Shareholders’ Equity 241,505 218,323 204,005
GOODFELLOW INC.        
Consolidated Statements of Cash Flows        
For the three and nine months ended August 31, 2021 and 2020      
(in thousands of dollars)
Unaudited
       
  For the three months ended
  For the nine months ended
 
  August 31
2021
  August 31
2020
  August 31
2021
  August 31
2020
 
  $   $   $
  $  
Operating Activities        
Net earnings 10,039   6,696   27,784   8,035  
Adjustments for:        
Depreciation and amortization of:        
    Property, plant and equipment 636   678   1,901   2,002  
    Right-of-use assets 1,055   1,084   3,111   3,265  
    Intangible assets 153   183   467   546  
Accretion expense on provision 11   18   33   54  
Increase (decrease) in provision (76 )   1,224   (10 )
Income taxes 3,905   2,604   10,837   3,125  
Gain on disposal of property, plant and equipment (1 ) (1 ) (8 ) (11 )
Interest expense 247   187   707   825  
Interest on lease liabilities 143   167   446   520  
Funding in deficit of pension plan expense 63   52   142   158  
Other 21   (13 ) (10 ) 28  
  16,196   11,655   46,634   18,537  
         
Changes in non-cash working capital items 24,168   9,239   (25,824 ) (3,915 )
Interest paid (287 ) (114 ) (1,300 ) (733 )
Income taxes paid (914 ) 478   (8,278 ) (613 )
  22,967   9,603   (35,402 ) (5,261 )
Net Cash Flows from Operating Activities 39,163   21,258   11,232   13,276  
         
Financing Activities        
Net increase (decrease) in bank loans 14,000     9,000   (5,000 )
Net decrease in banker’s acceptances (50,000 ) (21,000 ) (12,000 ) (5,000 )
Payment of lease liabilities (1,156 ) (1,312 ) (3,390 ) (3,954 )
Dividend paid     (4,710 ) (1,712 )
  (37,156 ) (22,312 ) (11,100 ) (15,666 )
         
Investing Activities        
Acquisition of property, plant and equipment (238 ) (222 ) (975 ) (732 )
Increase in intangible assets   (3 ) (18 ) (39 )
Proceeds on disposal of property, plant and equipment   (1 ) 10   13  
  (238 ) (226 ) (983 ) (758 )
         
Net cash inflow (outflow) 1,769   (1,280 ) (851 ) (3,148 )
Cash position, beginning of period (3,724 ) (708 ) (1,104 ) 1,160  
Cash position, end of period (1,955 ) (1,988 ) (1,955 ) (1,988 )
         
Cash position is comprised of:        
Cash 1,726   1,884   1,726   1,884  
Bank overdraft (3,681 ) (3,872 ) (3,681 ) (3,872 )
  (1,955 ) (1,988 ) (1,955 ) (1,988 )
GOODFELLOW INC.  
Consolidated Statements of Changes in Shareholders’ Equity   
For the nine months ended August 31, 2021 and 2020      
(in thousands of dollars)      
Unaudited      
       
  Share Retained Total
Capital Earnings
             $ $ $
       
Balance as at November 30, 2019 9,424 103,984 113,408
       
IFRS 16 adoption adjustment, net of taxes of $940 (2,567) (2,567)
       
Balance as at December 1, 2019 9,424 101,417 110,841
       
Net earnings 8,035 8,035
       
Total comprehensive income 8,035 8,035
       
Transactions with owners of the Company
       
Dividend (856) (856)
       
Balance as at August 31, 2020 9,424 108,596 118,020
       
       
Balance as at November 30, 2020 9,424 111,805 121,229
       
Net earnings 27,784 27,784
       
Total comprehensive income 27,784 27,784
       
Transactions with owners of the Company      
       
Dividend (2,569) (2,569)
       
Balance as at August 31, 2021 9,424 137,020 146,444


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