Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2020


DELSON, Quebec, Feb. 19, 2021 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the fourth quarter ended November 30, 2020. The Company reported a net income of $5.8 million or $0.67 per share compared to a net income of $0.3 million or $0.03 per share a year ago. Consolidated sales for the three months ended November 30, 2020 were $122.6 million compared to $107.1 million last year. Sales in Canada increased 19% compared to the same period a year ago, while sales in the United States decreased 14% and export sales decreased 12% compared to the same period a year ago. Selling, administrative and general expenses decreased overall by $0.9 million.

For the fiscal year ended November 30, 2020, the Company reported a net income of $13.8 million or $1.61 per share compared to a net income of $3.1 million or $0.36 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2020 were $454.1 million compared to $449.6 million last year. Sales in Canada increased 4% compared to the same period a year ago, while sales in the United States decreased 10% and export sales decreased 22% compared to the same period a year ago. Selling, administrative and general expenses decreased overall by $7.5 million.

Fiscal 2020 was characterized by continued pandemic realities and their drastic effects on supply and demand. The Company performed very well and was able to capitalize on surging demand in commodities and seasonal products. This trend extended well into late November which is uncharacteristic and unprecedented in the previous fourth quarters.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.30 per share payable on March 19, 2021, to shareholders of record at the close of business on March 5, 2021.

Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.

GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the years ended November 30, 2020 and 2019
(in thousands of dollars, except per share amounts)
Unaudited
   
 Years ended
 November 30
2020
November 30
2019
 $$
   
Sales454,103 449,587
Expenses (Income)  
Cost of goods sold362,354364,545
Selling, administrative and general expenses70,053 77,639
Gain on disposal of property, plant and equipment(45)(3)
Net financial costs2,719 3,137
 435,081 445,318
   
Earnings before income taxes19,0224,269
   
Income taxes5,211 1,215
   
Net earnings13,811 3,054
   
Items that will not subsequently be reclassified to net earnings  
   
Remeasurement of defined benefit plan obligation, net of taxes of $165 ($265 in 2019)(426)(723)
   
Total comprehensive income13,3852,331
   
   
Net earnings per share – Basic1.610.36
Net earnings per share – Diluted1.610.35


GOODFELLOW INC.  
Consolidated Statements of Financial Position  
(in thousands of dollars)  
Unaudited  
   
 As atAs at
 November 30
2020
November 30
2019
 $$
Assets   
Current Assets  
Cash3,466 2,364
Trade and other receivables76,09348,498
Inventories84,740 87,339
Prepaid expenses2,584 2,563
Total Current Assets166,883 140,764
   
Non-Current Assets  
Property, plant and equipment31,148 32,838
Intangible assets3,238 3,927
Right-of-use assets14,324 -
Defined benefit plan asset1,945 2,222
Other assets785 830
Total Non-Current Assets51,440 39,817
Total Assets218,323 180,581
   
Liabilities  
Current liabilities  
Bank indebtedness28,570 31,204
Trade and other payables39,614 29,048
Income taxes payable4,859 734
Provision1,473 1,470
Dividend payable2,141 856
Current portion of lease liabilities4,315 15
Total Current Liabilities80,97263,327
   
Non-Current Liabilities  
Lease liabilities          13,34328
Deferred income taxes1,5973,209
Defined benefit plan obligation1,182 609
Total Non-Current Liabilities16,122 3,846
Total Liabilities97,094 67,173
   
Shareholders’ Equity  
Share capital9,424 9,424
Retained earnings111,805103,984
 121,229 113,408
Total Liabilities and Shareholders’ Equity218,323 180,581


GOODFELLOW INC.  
Consolidated Statements of Cash Flows  
For the years ended November 30, 2020 and 2019  
(in thousands of dollars)  
Unaudited  
   
 Years ended
 November 30
2020
November 30
2019  
 $$
Operating Activities  
Net earnings13,8113,054
Adjustments for:  
Depreciation and amortization of:  
Property, plant and equipment2,705 2,786
Right-of-use assets4,324 -
Intangible assets728 693
Accretion expense on provision72 14
Decrease in provision(69)(197)
Income taxes5,211 1,215
Gain on disposal of property, plant and equipment(45)(3)
Interest expense950 2,134
Interest on lease liabilities681 -
Funding in deficit of pension plan expense259 47
Other assets(7)111
Share-based compensation-(79)
Other25 -
 28,6459,775
   
Changes in non-cash working capital items(14,117)6,856
Interest paid(1,495)(2,154)
Income taxes paid(1,592)(1,069)
 (17,204)3,633
Net Cash Flows from Operating Activities 11,44113,408
   
Financing Activities  
Proceeds from borrowings under bank loans104,000115,000
Repayment of borrowings under bank loans(97,000)(113,000)
Proceeds from borrowings under banker’s acceptances33,00040,000
Repayment of borrowings under banker’s acceptances(46,000)(53,000)
Payment of lease liabilities(4,572)(14)
Dividend paid(1,712)(851)
 (12,284)(11,865)
   
Investing Activities  
Acquisition of property, plant and equipment(1,431)(968)
Increase in intangible assets(39)(176)
Proceeds on disposal of property, plant and equipment49 18
 (1,421)(1,126)
   
Net cash (outflow) inflow(2,264)417
Cash position, beginning of year1,160 743
Cash position, end of year(1,104)1,160
   
Cash position is comprised of:  
Cash3,466 2,364
Bank overdraft(4,570)(1,204)
 (1,104)1,160


GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the years ended November 30, 2020 and 2019
(in thousands of dollars)
Unaudited
    
 Share
Capital
Retained
Earnings
Total
 $$$
    
Balance as at November 30, 20189,152103,711112,863
    
Net earnings-3,0543,054
Other comprehensive income-(723)(723)
    
Total comprehensive income-2,3312,331
    
Transactions with owners of the Company   
    
Dividend-(1,707)(1,707)
Share-based payment272(351)(79)
    
Balance as at November 30, 20199,424103,984113,408
    
IFRS 16 adoption adjustment, net of taxes of $940 -(2,567)(2,567)
    
Balance as at December 1, 2019 9,424101,417 110,841
    
Net earnings-
13,811 13,811
Other comprehensive income-(426)(426)
    
Total comprehensive income-13,385 13,385
    
Transactions with owners of the Company   
    
Dividend -
(2,997)(2,997)
    
Balance as at November 30, 20209,424 111,805 121,229


From: Goodfellow Inc.
 Patrick Goodfellow
 President and CEO
 Tel: 450 635-6511
 Fax: 450 635-3730
 Internet: info@goodfellowinc.com