Goodfellow Reports its Results for the First Quarter Ended February 28, 2021

Delson, Quebec, CANADA


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 sold93,992  71,480 
Selling, administrative and general expenses19,647  19,518 
Gain on disposal of property, plant and equipment(8)(15)
Net financial costs568  734 
 114,199  91,717 
   
Earnings (loss) before income taxes5,234  (2,861)
   
Income taxes1,465  (801)
   
Total comprehensive income (loss)3,769  (2,060)
   
   
Net earnings (loss) per share – Basic and Diluted0.44 (0.24)


GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)
Unaudited
   
    
 As atAs atAs at
 February 28
2021
November 30
2020
February 29
2020
 $$$
Assets    
Current Assets   
Cash4,045 3,4662,089
Trade and other receivables70,143 76,09354,082
Income taxes receivable79 -1,096
Inventories95,798 84,74099,300
Prepaid expenses4,339 2,5844,250
Total Current Assets174,404 166,883160,817
    
Non-Current Assets   
Property, plant and equipment30,709 31,14832,517
Intangible assets3,077 3,2383,746
Right-of-use assets13,629 14,32416,304
Defined benefit plan asset1,933 1,9452,210
Other assets785 785778
Total Non-Current Assets50,133 51,44055,555
Total Assets224,537 218,323216,372
    
Liabilities   
Current liabilities   
Bank indebtedness34,928 28,57047,845
Trade and other payables43,494 39,61435,549
Income taxes payable- 4,859-
Provision1,484 1,4731,478
Dividend payable2,569 2,141856
Current portion of lease liabilities4,3014,3154,254
Total Current Liabilities86,77680,97289,982
    
Non-Current Liabilities   
Lease liabilities          12,54613,34315,547
Deferred income taxes1,597 1,5972,269
Defined benefit plan obligation1,189 1,182649
Total Non-Current Liabilities15,332 16,12218,465
Total Liabilities102,108 97,094108,447
    
Shareholders’ Equity   
Share capital9,424 9,4249,424
Retained earnings113,005 111,80598,501
 122,429 121,229107,925
Total Liabilities and Shareholders’ Equity224,537 218,323216,372



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 equipment627  651 
Right-of-use assets1,013  1,093 
Intangible assets161  181 
Accretion expense on provision11  18 
Decrease in provision- (10)
Income taxes1,465  (801)
Gain on disposal of property, plant and equipment(8)(15)
Interest expense148  323 
Interest on lease liabilities154  179 
Funding in deficit of pension plan expense19  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 loans41,000 14,000 
Repayment of borrowings under bank loans(39,000)(17,000)
Proceeds from borrowings under banker’s acceptances19,000 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:  
Cash4,045  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, 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 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, 20209,42498,501107,925
    
    
Balance as at November 30, 20209,424 111,805 121,229
    
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, 20219,424 113,005 122,429


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