Goodfellow Reports its Results for the Second Quarter Ended May 31, 2020

DELSON, Quebec, July 09, 2020 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31, 2020. The Company reported a net income of $3.4 million or $0.40 per share compared to a net income of $1.9 million or $0.22 per share a year ago. Consolidated sales were $103.8 million compared to $123.7 million last year. Sales in Canada decreased 15% compared to the same period a year ago, while sales in the United States decreased 18% (on a Canadian dollar basis) and export sales decreased 35% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $6.2 million.

For the six months ended May 31, 2020, the Company reported a net income of $1.3 million or $0.16 per share compared to a net income of $0.3 million or $0.04 per share a year ago. Consolidated sales were $192.6 million compared to $211.9 million last year. Sales in Canada decreased 8% compared to the same period a year ago, while sales in the United States decreased 11% (on a Canadian dollar basis) and export sales decreased 26% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $5.0 million.

In the face of the COVID-19 pandemic, the Company implemented rigorous hygiene practices and physical distancing measures in its workplaces to mitigate health risks to its employees, business partners and communities where it operates. Although the Company was able to keep most of its facilities opened during the COVID-19 pandemic relying on exemptions from mandatory closures for essential products and services. The Company also implemented a number of cost-reduction measures such as reduced expenses related to non-essential travel and has temporarily reduced its workforce. Furthermore, the Company benefited from the Canada Emergency Wage Subsidy that contributed in particular to maintaining jobs relating to the production and distribution of essential services.

“Our result in the second quarter is as a result of unforeseen pandemic circumstances combined with a contrasting, unprecedented surge in seasonal demand.’’

Despite the fact that the impacts of the COVID-19 pandemic in the coming months remain unpredictable, we expect to continue generating positive cash flows from our operating activities.

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.