Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2021


DELSON, Quebec, July 08, 2021 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31, 2021. The Company reported a net income of $14.0 million or $1.63 per share compared to a net income of $3.4 million or $0.40 per share a year ago. Sales for the three months ended May 31, 2021 were $185.5 million compared to $103.8 million last year. Sales in Canada increased 90% compared to the same period a year ago, while sales in the United States increased 13% and export sales increased 7%. Selling, administrative and general expenses increased overall by $9.0 million.

For the six months ended May 31, 2021, the Company reported a net income of $17.7 million or $2.07 per share compared to a net income of $1.3 million or $0.16 per share a year ago. Sales were $305.0 million compared to $192.6 million last year. Sales in Canada increased 67% compared to the same period a year ago, while sales in the United States increased 10% and export sales increased 16% compared to the same period a year ago. On the operating side, selling, administrative and general expenses increased overall by $9.1 million.

The second-quarter results of fiscal 2021 were uncharacteristically greater than past years and demonstrate the unpredictability of conditions within all sectors. The Company was able to capitalize on surging demand, while at the same time mitigating ongoing supply disruptions. The Company remains well-positioned to adapt swiftly to changing circumstances, while still pursuing core success drivers including value-added specialty products, a commitment to maintaining inventory levels and ensuring superior customer service from coast to coast.

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”.

Media Inquiries
450-635-6511 / 800-361-6503
info@goodfellowinc.com

GOODFELLOW INC.    
Consolidated Statements of Comprehensive Income   
For the three and six months ended May 31, 2021 and 2020   
(in thousands of dollars, except per share amounts)   
Unaudited    
     
 For the three months endedFor the six months ended
 May 31
2021
May 31
2020
May 31
2021
May 31
2020
 $$$$
     
Sales 185,525 103,763304,958 192,619
Expenses (Income)    
Cost of goods sold142,187 84,238236,179 155,718
Selling, administrative and general expenses23,072 14,06042,71933,578
Loss (gain) on disposal of property, plant and equipment15(7)(10)
Net financial costs822 7391,390 1,473
 166,082 99,042280,281 190,759
     
Earnings before income taxes19,443 4,72124,677 1,860
     
Income taxes5,467 1,3226,932 521
     
Total comprehensive income 13,976 3,39917,745 1,339
     
     
Net earnings per share – Basic and Diluted1.630.40 2.070.16


GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)   
Unaudited
    
 As atAs atAs at
 May 31
2021
November 30
2020
May 31
2020
 $$$
Assets    
Current Assets   
Cash2,534 3,4661,854
Trade and other receivables107,788 76,09369,531
Inventories115,285 84,74092,071
Prepaid expenses5,910 2,5841,469
Total Current Assets231,517 166,883164,925
    
Non-Current Assets   
Property, plant and equipment30,617 31,14831,992
Intangible assets2,942 3,2383,600
Right-of-use assets13,020 14,32415,723
Defined benefit plan asset1,919 1,9452,198
Other assets785 785778
Total Non-Current Assets49,283 51,44054,291
Total Assets280,800 218,323219,216
    
Liabilities   
Current liabilities   
Bank indebtedness63,258 28,57043,562
Trade and other payables54,938 39,61440,492
Income taxes payable4,427 4,859164
Provision2,795 1,4731,496
Dividend payable- 2,141-
Current portion of lease liabilities4,241 4,3154,242
Total Current Liabilities129,65980,97289,956
    
Non-Current Liabilities   
Lease liabilities11,90413,34314,975
Deferred income taxes1,597 1,5972,269
Defined benefit plan obligation1,235 1,182692
Total Non-Current Liabilities14,736 16,12217,936
Total Liabilities144,395 97,094107,892
    
Shareholders’ Equity   
Share capital9,424 9,4249,424
Retained earnings126,981 111,805101,900
 136,405 121,229111,324
Total Liabilities and Shareholders’ Equity280,800 218,323219,216

     

GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the three and six months ended May 31, 2021 and 2020    
(in thousands of dollars)
Unaudited
 
 For the three months endedFor the six months ended
 May 31
2021
May 31
2020
May 31
2021
May 31
2020
 $$$$
Operating Activities    
Net earnings13,9763,39917,7451,339
Adjustments for:    
Depreciation and amortization of:    
Property, plant and equipment638 6731,265 1,324
Right-of-use assets1,043 1,0882,056 2,181
Intangible assets153 182314 363
Accretion expense on provision11 1822 36
Increase (decrease) in provision1,300 -1,300 (10)
Income taxes5,467 1,3226,932 521
Loss (gain) on disposal of property, plant and equipment15(7)(10)
Interest expense312 315460 638
Interest on lease liabilities149 174303 353
Funding in deficit of pension plan expense60 5479 106
Other(26)41(31)41
 23,0847,27130,4386,882
     
Changes in non-cash working capital items(47,024)(538)(49,992)(13,154)
Interest paid(696)(271)(1,013)(619)
Income taxes paid(961)(62)(7,364)(1,091)
 (48,681)(871)(58,369)(14,864)
Net Cash Flows from Operating Activities (25,597)6,400(27,931)(7,982)
     
Financing Activities    
Net decrease in bank loans(7,000)(2,000)                (5,000)(5,000)
Net increase in banker’s acceptances35,0003,00038,00016,000
Payment of lease liabilities(1,118)(1,309)(2,234)(2,642)
Dividend paid(2,569)(856)(4,710)(1,712)
 24,313 (1,165)26,056 6,646
     
Investing Activities    
Acquisition of property, plant and equipment(549)(149)(737)(510)
Increase in intangible assets(18)(36)(18)(36)
Proceeds on disposal of property, plant and equipment10 (2)10 14
 (557)(187)(745)(532)
     
Net cash (outflow) inflow(1,841)5,048(2,620)(1,868)
Cash position, beginning of period(1,883)(5,756)(1,104)1,160
Cash position, end of period(3,724)(708)(3,724)(708)
     
Cash position is comprised of:    
Cash2,534 1,8542,534 1,854
Bank overdraft(6,258)(2,562)(6,258)(2,562)
 (3,724)(708)(3,724)(708)


GOODFELLOW INC.   
Consolidated Statements of Changes in Shareholders’ Equity   
For the six months ended May 31, 2021 and 2020
(in thousands of dollars)   
Unaudited
    
 ShareRetainedTotal
CapitalEarnings
            $$$
    
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 9,424101,417110,841
    
Net earnings-1,3391,339
    
Total comprehensive income-1,3391,339
    
Transactions with owners of the Company   
    
Dividend -(856)(856)
    
Balance as at May 31, 20209,424101,900111,324
    
Balance as at November 30, 20209,424111,805121,229
    
Net earnings-17,74517,745
    
Total comprehensive income-17,74517,745
    
Transactions with owners of the Company   
    
Dividend -(2,569)(2,569)
    
Balance as at May 31, 20219,424126,981136,405


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