Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2022 and Declares Dividend

Delson, Quebec, CANADA

DELSON, Quebec, Oct. 13, 2022 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2022. The Company reported net earnings of $10.6 million or $1.24 per share compared to net earnings of $10.0 million or $1.17 per share a year ago. Consolidated sales for the three months ended August 31, 2022 were $167.6 million compared to $168.0 million last year.

For the nine months ended August 31, 2022, the Company reported net earnings of $28.2 million or $3.30 per share compared to net earnings of $27.8 million or $3.24 per share a year ago. Consolidated sales were $481.9 million compared to $472.9 million last year.

Results for the third quarter of fiscal 2022 were characteristic for this period where seasonal demand is historically strong, which was unexpected given current inflationary pressures. Attention paid to overhead expenses helped maintain margin levels as cost of goods increased. Inventory levels remain high and it will be crucial to level them out before year end in order for Goodfellow to reach its objectives.

The Board of Directors declared an eligible dividend of $0.50 per share payable on November 10, 2022 to shareholders of record at the close of business on October 27, 2022. This dividend is designated as an eligible dividend under the Income Tax Act (Canada). The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.

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”.

Consolidated Statements of Comprehensive Income
For the three and nine months ended August 31, 2022 and 2021
(in thousands of dollars, except per share amounts)
 For the three months ended
For the nine months ended
 August 31
August 31
August 31
August 31
Sales167,574 167,953481,886 472,911
Cost of goods sold129,715 133,048374,716 369,227
Selling, administrative and general expenses22,12620,21065,464 62,922
Net financial costs1,038 7512,484 2,141
 152,879 154,009442,664 434,290
Earnings before income taxes14,695 13,94439,222 38,621
Income taxes4,115 3,90510,983 10,837
Total comprehensive income10,580 10,03928,239 27,784
Net earnings per share – Basic and Diluted1.241.173.303.24

Consolidated Statements of Financial Position   
(in thousands of dollars)
 As atAs atAs at
 August 31
November 30
August 31
Current Assets   
Cash2,279 4,2531,726
Trade and other receivables76,201 63,24672,118
Income taxes receivable33 --
Inventories142,082 109,787115,046
Prepaid expenses3,237 4,1894,290
Total Current Assets223,832 181,475193,180
Non-Current Assets   
Property, plant and equipment31,148 30,02230,220
Intangible assets2,235 2,6502,789
Right-of-use assets14,614 12,26212,630
Defined benefit plan asset10,441 10,3971,901
Other assets802785785
Total Non-Current Assets59,240 56,11648,325
Total Assets283,072 237,591241,505
Current Liabilities   
Bank indebtedness31,590 9,24624,681
Trade and other payables42,744 37,89741,680
Income taxes payable- 9,0227,418
Current portion of lease liabilities4,8364,2564,270
Total Current Liabilities79,54062,56880,779
Non-Current Liabilities   
Provision2,281 --
Lease liabilities12,338 10,92411,405
Deferred income taxes3,1513,1511,597
Defined benefit plan obligation- -1,280
Total Non-Current Liabilities17,770 14,07514,282
Total Liabilities97,310 76,64395,061
Shareholders’ Equity   
Share capital9,424 9,4249,424
Retained earnings176,338 151,524137,020
 185,762 160,948146,444
Total Liabilities and Shareholders’ Equity283,072 237,591241,505

Consolidated Statements of Cash Flows    
For the three and nine months ended August 31, 2022 and 2021   
(in thousands of dollars)

 For the three months endedFor the nine months ended
 August 31
August 31
August 31
August 31
Operating Activities    
Net earnings10,580 10,039 28,239 27,784 
Adjustments for:    
Depreciation and amortization of:    
    Property, plant and equipment636  636 1,788  1,901 
    Intangible assets153  153 455  467 
    Right-of-use assets1,175  1,055 3,365 3,111 
Accretion expense on provision25  11 76  33 
(Decrease) increase in provision(34)(76)428  1,224 
Income taxes4,115  3,905 10,983  10,837 
Gain on disposal of property, plant and equipment(10)(1)(45)(8)
Interest expense508  247 1,007  707 
Interest on lease liabilities152  143 430  446 
Funding in (excess) deficit of pension plan expense(15)63 (44)142 
Other(13)21 (38)(10)
 17,272  16,196 46,644  46,634 
Changes in non-cash working capital items29,012  24,168 (39,462)(25,824)
Interest paid(539)(287)(1,426)(1,300)
Income taxes paid(3,070)(914)(20,038)(8,278)
 25,403  22,967 (60,926)(35,402)
Net Cash Flows from Operating Activities 42,675  39,163 (14,282)11,232 
Financing Activities    
Net (decrease) increase in bank loans(5,000)14,000 6,000  9,000 
Net (decrease) increase in banker’s acceptances(35,000)(50,000)18,000  (12,000)
Payment of lease liabilities(1,282)(1,156)(3,702)(3,390)
Dividend paid- - (3,425)(4,710)
 (41,282 )(37,156)16,873  (11,100)
Investing Activities    
Acquisition of property, plant and equipment(1,002)(238)(2,914)(975)
Increase in intangible assets- - (40)(18)
Proceeds on disposal of property, plant and equipment10  - 45  10 
Net cash inflow (outflow)401  1,769 (318)(851)
Cash position, beginning of period(3,712)(3,724)(2,993)(1,104)
Cash position, end of period(3,311)(1,955)(3,311)(1,955)
Cash position is comprised of:    
Cash2,279  1,726 2,279  1,726 
Bank overdraft(5,590)(3,681)(5,590)(3,681)

Consolidated Statements of Changes in Shareholders’ Equity  
For the nine months ended August 31, 2022 and 2021 
(in thousands of dollars) 
Balance as at November 30, 20209,424111,805121,229
Net earnings-27,78427,784
Total comprehensive income-27,78427,784
Transactions with owners of the Company
Balance as at August 31, 20219,424137,020146,444
Balance as at November 30, 20219,424151,524160,948
Net earnings-28,23928,239
Total comprehensive income-28,23928,239
Transactions with owners of the Company   
Dividend -(3,425)(3,425)
Balance as at August 31, 20229,424176,338185,762

From:Goodfellow Inc.
Patrick Goodfellow
President and CEO
T: 450 635-6511
F: 450 635-3730