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

Delson, Quebec, CANADA


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”.

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


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 endedFor the nine months ended
 August 31
2021
August 31
2020
August 31
2021
August 31
2020
 $$$$
     
Sales 167,953 138,843472,911 331,462
Expenses    
Cost of goods sold133,048 111,030369,227 266,748
Selling, administrative and general expenses20,210 17,83462,922 51,402
Net financial costs751 6792,141 2,152
 154,009 129,543434,290 320,302
     
Earnings before income taxes13,944 9,30038,621 11,160
     
Income taxes3,905 2,60410,837 3,125
     
Total comprehensive income 10,039 6,69627,784 8,035
     
     
Net earnings per share – Basic and Diluted1.170.783.240.94


GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)
Unaudited
   
    
 As atAs atAs at
 August 31
2021
November 30
2020
August 31
2020
 $$$
Assets    
Current Assets   
Cash1,726 3,4661,884
Trade and other receivables72,118 76,09364,511
Inventories115,046 84,74082,498
Prepaid expenses4,290 2,5842,077
Total Current Assets193,180 166,883150,970
    
Non-Current Assets   
Property, plant and equipment30,220 31,14831,536
Intangible assets2,789 3,2383,420
Right-of-use assets12,630 14,32415,113
Defined benefit plan asset1,901 1,9452,188
Other assets785 785778
Total Non-Current Assets48,325 51,44053,035
Total Assets241,505 218,323204,005
    
Liabilities   
Current liabilities   
Bank indebtedness24,681 28,57023,872
Trade and other payables41,680 39,61435,818
Income taxes payable7,418 4,8593,246
Provision2,730 1,4731,514
Dividend payable- 2,141-
Current portion of lease liabilities4,270 4,3154,338
Total Current Liabilities80,77980,97268,788
    
Non-Current Liabilities   
Lease liabilities11,40513,34314,194
Deferred income taxes1,597 1,5972,269
Defined benefit plan obligation1,280 1,182734
Total Non-Current Liabilities14,282 16,12217,197
Total Liabilities95,061 97,09485,985
    
Shareholders’ Equity   
Share capital9,424 9,4249,424
Retained earnings137,020 111,805108,596
 146,444 121,229118,020
Total Liabilities and Shareholders’ Equity241,505 218,323204,005


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 earnings10,039 6,696 27,784 8,035 
Adjustments for:    
Depreciation and amortization of:    
    Property, plant and equipment636  678 1,901  2,002 
    Right-of-use assets1,055  1,084 3,111  3,265 
    Intangible assets153  183 467  546 
Accretion expense on provision11  18 33  54 
Increase (decrease) in provision(76)- 1,224  (10)
Income taxes3,905  2,604 10,837  3,125 
Gain on disposal of property, plant and equipment(1)(1)(8)(11)
Interest expense247  187 707  825 
Interest on lease liabilities143  167 446  520 
Funding in deficit of pension plan expense63  52 142  158 
Other21 (13)(10)28 
 16,196 11,655 46,634 18,537 
     
Changes in non-cash working capital items24,168  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 loans14,000  - 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:    
Cash1,726  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   
    
 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, 20199,424101,417110,841
    
Net earnings-8,0358,035
    
Total comprehensive income-8,0358,035
    
Transactions with owners of the Company
    
Dividend-(856)(856)
    
Balance as at August 31, 20209,424108,596118,020
    
    
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   
    
Dividend -(2,569)(2,569)
    
Balance as at August 31, 20219,424137,020146,444