DELSON, Quebec, April 12, 2021 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended February 28, 2021. The Company reported a net income of $3.8 million or $0.44 per share compared to a net loss of $(2.1) million or $(0.24) per share a year ago.
Consolidated sales for the three months ended February 28, 2021 were $119.4 million compared to $88.9 million last year. Sales in Canada increased 38% compared to the same period a year ago, while sales in the United States increased 6% and export sales increased 24%. Selling, administrative and general expenses increased overall by $0.1 million.
The evolution of COVID-19 remains unpredictable and due to the rise of new variant infection cases worldwide it makes estimating the end of the pandemic impossible at this date. The first-quarter results of fiscal 2021 were 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. The Company also positioned itself to succeed across the country with a firm commitment to maintaining needed inventory levels and ensuring superior customer service from coast to coast.
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 three months ended February 28, 2021 and February 29, 2020 | |||||
| (in thousands of dollars, except per share amounts) | |||||
| Unaudited | |||||
| For the three months ended | |||||
| February 28 2021 | February 29 2020 | ||||
| $ | $ | ||||
| Sales | 119,433 | 88,856 | |||
| Expenses (Income) | |||||
| Cost of goods sold | 93,992 | 71,480 | |||
| Selling, administrative and general expenses | 19,647 | 19,518 | |||
| Gain on disposal of property, plant and equipment | (8 | ) | (15 | ) | |
| Net financial costs | 568 | 734 | |||
| 114,199 | 91,717 | ||||
| Earnings (loss) before income taxes | 5,234 | (2,861 | ) | ||
| Income taxes | 1,465 | (801 | ) | ||
| Total comprehensive income (loss) | 3,769 | (2,060 | ) | ||
| Net earnings (loss) per share – Basic and Diluted | 0.44 | (0.24 | ) | ||
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) Unaudited | |||
| As at | As at | As at | |
| February 28 2021 | November 30 2020 | February 29 2020 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 4,045 | 3,466 | 2,089 |
| Trade and other receivables | 70,143 | 76,093 | 54,082 |
| Income taxes receivable | 79 | - | 1,096 |
| Inventories | 95,798 | 84,740 | 99,300 |
| Prepaid expenses | 4,339 | 2,584 | 4,250 |
| Total Current Assets | 174,404 | 166,883 | 160,817 |
| Non-Current Assets | |||
| Property, plant and equipment | 30,709 | 31,148 | 32,517 |
| Intangible assets | 3,077 | 3,238 | 3,746 |
| Right-of-use assets | 13,629 | 14,324 | 16,304 |
| Defined benefit plan asset | 1,933 | 1,945 | 2,210 |
| Other assets | 785 | 785 | 778 |
| Total Non-Current Assets | 50,133 | 51,440 | 55,555 |
| Total Assets | 224,537 | 218,323 | 216,372 |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 34,928 | 28,570 | 47,845 |
| Trade and other payables | 43,494 | 39,614 | 35,549 |
| Income taxes payable | - | 4,859 | - |
| Provision | 1,484 | 1,473 | 1,478 |
| Dividend payable | 2,569 | 2,141 | 856 |
| Current portion of lease liabilities | 4,301 | 4,315 | 4,254 |
| Total Current Liabilities | 86,776 | 80,972 | 89,982 |
| Non-Current Liabilities | |||
| Lease liabilities | 12,546 | 13,343 | 15,547 |
| Deferred income taxes | 1,597 | 1,597 | 2,269 |
| Defined benefit plan obligation | 1,189 | 1,182 | 649 |
| Total Non-Current Liabilities | 15,332 | 16,122 | 18,465 |
| Total Liabilities | 102,108 | 97,094 | 108,447 |
| Shareholders’ Equity | |||
| Share capital | 9,424 | 9,424 | 9,424 |
| Retained earnings | 113,005 | 111,805 | 98,501 |
| 122,429 | 121,229 | 107,925 | |
| Total Liabilities and Shareholders’ Equity | 224,537 | 218,323 | 216,372 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the three months ended February 28, 2021 and February 29, 2020 | ||||
| (in thousands of dollars) Unaudited | ||||
| For the three months ended | ||||
| February 28 2021 | February 29 2020 | |||
| $ | $ | |||
| Operating Activities | ||||
| Net earnings (loss) | 3,769 | (2,060 | ) | |
| Adjustments for: | ||||
| Depreciation and amortization of: | ||||
| Property, plant and equipment | 627 | 651 | ||
| Right-of-use assets | 1,013 | 1,093 | ||
| Intangible assets | 161 | 181 | ||
| Accretion expense on provision | 11 | 18 | ||
| Decrease in provision | - | (10 | ) | |
| Income taxes | 1,465 | (801 | ) | |
| Gain on disposal of property, plant and equipment | (8 | ) | (15 | ) |
| Interest expense | 148 | 323 | ||
| Interest on lease liabilities | 154 | 179 | ||
| Funding in deficit of pension plan expense | 19 | 52 | ||
| Other | (5 | ) | - | |
| 7,354 | (389 | ) | ||
| Changes in non-cash working capital items | (2,968 | ) | (12,616 | ) |
| Interest paid | (317 | ) | (348 | ) |
| Income taxes paid | (6,403 | ) | (1,029 | ) |
| (9,688 | ) | (13,993 | ) | |
| Net Cash Flows from Operating Activities | (2,334 | ) | (14,382 | ) |
| Financing Activities | ||||
| Proceeds from borrowings under bank loans | 41,000 | 14,000 | ||
| Repayment of borrowings under bank loans | (39,000 | ) | (17,000 | ) |
| Proceeds from borrowings under banker’s acceptances | 19,000 | 15,000 | ||
| Repayment of borrowings under banker’s acceptances | (16,000 | ) | (2,000 | ) |
| Payment of lease liabilities | (1,116 | ) | (1,333 | ) |
| Dividend paid | (2,141 | ) | (856 | ) |
| 1,743 | 7,811 | |||
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (188 | ) | (361 | ) |
| Proceeds on disposal of property, plant and equipment | - | 16 | ||
| (188 | ) | (345 | ) | |
| Net cash outflow | (779 | ) | (6,916 | ) |
| Cash position, beginning of period | (1,104 | ) | 1,160 | |
| Cash position, end of period | (1,883 | ) | (5,756 | ) |
| Cash position is comprised of: | ||||
| Cash | 4,045 | 2,089 | ||
| Bank overdraft | (5,928 | ) | (7,845 | ) |
| (1,883 | ) | (5,756 | ) | |
| GOODFELLOW INC. | ||||||
| Consolidated Statements of Changes in Shareholders’ Equity | ||||||
| For the three months ended February 28, 2021 and February 29, 2020 | ||||||
| (in thousands of dollars) Unaudited | ||||||
| Share Capital | Retained Earnings | Total | ||||
| $ | $ | $ | ||||
| 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 loss | - | (2,060) | (2,060) | |||
| Total comprehensive loss | - | (2,060) | (2,060) | |||
| Transactions with owners of the Company | ||||||
| Dividend | - | (856) | (856) | |||
| Balance as at February 29, 2020 | 9,424 | 98,501 | 107,925 | |||
| Balance as at November 30, 2020 | 9,424 | 111,805 | 121,229 | |||
| Net earnings | - | 3,769 | 3,769 | |||
| Total comprehensive income | - | 3,769 | 3,769 | |||
| Transactions with owners of the Company | ||||||
| Dividend | - | (2,569) | (2,569) | |||
| Balance as at February 28, 2021 | 9,424 | 113,005 | 122,429 | |||
| From: | Goodfellow Inc. |
| Patrick Goodfellow | |
| President and CEO | |
| Tel: 450 635-6511 | |
| Fax: 450 635-3730 | |
| Internet: info@goodfellowinc.com |