DELSON, Quebec, April 11, 2024 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the first quarter ended February 29, 2024.
The Company reported a net loss of $108 thousand or $0.01 per share compared to a net loss of $211 thousand or $0.02 per share a year ago. Consolidated sales for the three months ended February 29, 2024 were $105.3 million compared to $105.9 million last year.
Though under pressure from lingering inflation and cautious consumer sentiment, Goodfellow achieved a comparable overall financial performance in the first quarter thanks to its diversified product offering, expertise in value-added services, and efficient distribution systems, as well as its strong, debt-free balance sheet. With uncertain economic conditions ahead, the Company will continue to protect margins and seize opportunities for growth with new and existing customers.
About Goodfellow
Goodfellow is a diversified manufacturer of value-added lumber products, as well as a wholesale distributor of building materials and floor coverings. Goodfellow has a distribution footprint from coast-to-coast in Canada servicing commercial and residential sectors through lumber yard retailer networks, manufacturers, industrial and infrastructure project partners, and floor covering specialists. Goodfellow also leverages its value-added product capabilities to serve lumber markets internationally. Goodfellow Inc. is a publicly traded company, and its shares are listed on the Toronto Stock Exchange under the symbol “GDL”.
GOODFELLOW INC. | ||||
Consolidated Statements of Comprehensive Income | ||||
For the three months ended February 29, 2024 and February 28, 2023 | ||||
(in thousands of dollars, except per share amounts) Unaudited |
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For the three months ended |
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February 29 2024 |
February 28 2023 |
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$ | $ | |||
Sales | 105,334 | 105,925 | ||
Expenses | ||||
Cost of goods sold | 82,546 | 84,260 | ||
Selling, administrative and general expenses | 22,884 | 21,684 | ||
Net financial costs | 55 | 274 | ||
105,485 | 106,218 | |||
Loss before income taxes | (151 | ) | (293 | ) |
Income taxes | (43 | ) | (82 | ) |
Total comprehensive loss | (108 | ) | (211 | ) |
Net loss per share – Basic and Diluted | (0.01 | ) | (0.02 | ) |
GOODFELLOW INC. | ||||||
Consolidated Statements of Financial Position | ||||||
(in thousands of dollars) | ||||||
Unaudited |
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As at | As at | As at | ||||
February 29 2024 |
November 30 2023 |
February 28 2023 |
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$ | $ | $ | ||||
Assets | ||||||
Current Assets | ||||||
Cash | 4,397 | 28,379 | 1,958 | |||
Trade and other receivables | 69,672 | 53,674 | 64,295 | |||
Income taxes receivable | 8,254 | 6,286 | 5,539 | |||
Inventories | 122,802 | 98,473 | 130,416 | |||
Prepaid expenses | 3,771 | 4,215 | 3,663 | |||
Total Current Assets | 208,896 | 191,027 | 205,871 | |||
Non-Current Assets | ||||||
Property, plant and equipment | 33,208 | 32,761 | 32,368 | |||
Intangible assets | 1,340 | 1,487 | 1,945 | |||
Right-of-use assets | 10,586 | 11,354 | 13,905 | |||
Defined benefit plan asset | 15,453 | 15,347 | 11,690 | |||
Other assets | 777 | 777 | 802 | |||
Total Non-Current Assets | 61,364 | 61,726 | 60,710 | |||
Total Assets | 270,260 | 252,753 | 266,581 | |||
Liabilities | ||||||
Current Liabilities | ||||||
Bank indebtedness | 11,311 | – | 18,636 | |||
Trade and other payables | 44,986 | 37,620 | 39,070 | |||
Provision | 2,778 | 2,789 | 2,259 | |||
Dividends payable | 4,256 | – | 4,274 | |||
Current portion of lease liabilities | 4,419 | 4,732 | 4,763 | |||
Total Current Liabilities | 67,750 | 45,141 | 69,002 | |||
Non-Current Liabilities | ||||||
Provision | – | – | 702 | |||
Lease liabilities | 7,878 | 8,497 | 11,272 | |||
Deferred income taxes | 4,112 | 4,112 | 3,431 | |||
Total Non-Current Liabilities | 11,990 | 12,609 | 15,405 | |||
Total Liabilities | 79,740 | 57,750 | 84,407 | |||
Shareholders’ Equity | ||||||
Share capital | 9,370 | 9,379 | 9,408 | |||
Retained earnings | 181,150 | 185,624 | 172,766 | |||
190,520 | 195,003 | 182,174 | ||||
Total Liabilities and Shareholders’ Equity | 270,260 | 252,753 | 266,581 |
GOODFELLOW INC. | |||||
Consolidated Statements of Cash Flows | |||||
For the three months ended February 29, 2024 and February 28, 2023 | |||||
(in thousands of dollars) Unaudited |
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For the three months ended |
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February 28 2024 |
February 28 2023 |
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$ | $ | ||||
Operating Activities | |||||
Net loss | (108 | ) | (211 | ) | |
Adjustments for: | |||||
Depreciation and amortization of: | |||||
Property, plant and equipment | 835 | 745 | |||
Intangible assets | 147 | 151 | |||
Right-of-use assets | 1,034 | 1,257 | |||
Gain on disposal of property, plant and equipment | (8 | ) | (10 | ) | |
Accretion expense on provision | – | 68 | |||
Provision | (11 | ) | (22 | ) | |
Income taxes | (43 | ) | (82 | ) | |
Interest expense | 45 | 88 | |||
Interest on lease liabilities | 137 | (18 | ) | ||
Funding in deficit of pension plan expense | (106 | ) | (70 | ) | |
Other | 1 | (129 | ) | ||
1,923 | 1,767 | ||||
Changes in non-cash working capital items | (32,510 | ) | (16,280 | ) | |
Interest paid | (189 | ) | (180 | ) | |
Income taxes paid | (1,925 | ) | (3,018 | ) | |
(34,624 | ) | (19,406 | ) | ||
Net Cash Flows from Operating Activities | (32,701 | ) | (17,639 | ) | |
Financing Activities | |||||
Net increase in bank indebtedness | – | 2,000 | |||
Net increase in banker’s acceptances | – | 5,000 | |||
Payment of lease liabilities | (1,199 | ) | (1,505 | ) | |
Redemption of shares | (119 | ) | (120 | ) | |
Net Cash Flows from Financing Activities | (1,318 | ) | 5,375 | ||
Investing Activities | |||||
Acquisition of property, plant and equipment | (1,282 | ) | (844 | ) | |
Proceeds on disposal of property, plant and equipment | 8 | 10 | |||
Other assets | – | – | |||
Net Cash Flows from Investing Activities | (1,274 | ) | (834 | ) | |
Net cash outflow | (35,293 | ) | (13,098 | ) | |
Cash, beginning of period | 28,379 | 3,420 | |||
Cash, end of period | (6,914 | ) | (9,678 | ) | |
Cash position is comprised of: | |||||
Cash | 4,397 | 1,958 | |||
Bank overdraft | (11,311 | ) | (11,636 | ) | |
(6,914 | ) | (9,678 | ) |
GOODFELLOW INC. | ||||||
Consolidated Statements of Changes in Shareholders’ Equity | ||||||
For the three months ended February 29, 2024 and February 28, 2023 | ||||||
(in thousands of dollars) Unaudited |
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Share Capital |
Retained Earnings |
Total | ||||
$ | $ | $ | ||||
Balance as at November 30, 2022 | 9,419 | 177,360 | 186,779 | |||
Net loss | – | (211 | ) | (211 | ) | |
Total comprehensive loss | – | (211 | ) | (211 | ) | |
Dividend | – | (4,274 | ) | (4,274 | ) | |
Redemption of Shares | (11 | ) | (109 | ) | (120 | ) |
Balance as at February 28, 2023 | 9,408 | 172,766 | 182,174 | |||
Balance as at November 30, 2023 | 9,379 | 185,624 | 195,003 | |||
Net loss | – | (108 | ) | (108 | ) | |
Total comprehensive loss | – | (108 | ) | (108 | ) | |
Dividend | – | (4,256 | ) | (4,256 | ) | |
Redemption of Shares | (9 | ) | (110 | ) | (119 | ) |
Balance as at February 29, 2024 | 9,370 | 181,150 | 190,520 |
Patrick Goodfellow
President and CEO
T: 450 635-6511
F: 450 635-3730
[email protected]
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