Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2024

DELSON, Quebec, July 10, 2024 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter ended May 31, 2024.

The Company reported net earnings of $5.3 million or $0.62 per share compared to net earnings of $6.6 million or $0.77 per share a year ago. Consolidated sales for the three months ended May 31, 2024 were $140.3 million compared to $142.3 million last year.

For the six months ended May 31, 2024, the Company reported net earnings of $5.2 million or $0.61 per share compared to net earnings of $6.4 million or $0.75 per share a year ago, while consolidated sales were $245.7 million compared to $248.3 million last year.

Goodfellow continues to navigate a broader economic landscape characterized by low consumer confidence and sluggish new housing starts. These conditions have impacted industry growth and shifted demand towards different types of products within the Company’s portfolio. Goodfellow’s offering is well positioned to cater to this evolving demand, ensuring revenue and margin stability even as certain segments experience fluctuations.

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 and six months ended May 31, 2024 and 2023        
(in thousands of dollars, except per share amounts)        
Unaudited        
         
  For the three months ended  For the six months ended 
  May 31
2024
May 31
2023
May 31
2024
May 31
2023
  $ $ $ $
         
Sales 140,334 142,326 245,668 248,251
Expenses        
Cost of goods sold 106,199 110,034 188,745 194,294
Selling, administrative and general expenses 26,108 22,239 48,992 43,923
Net financial costs 652 921 707 1,195
  132,959 133,194 238,444 239,412
         
Earnings before income taxes 7,375 9,132 7,224 8,839
         
Income taxes 2,066 2,557 2,023 2,475
         
Total comprehensive income 5,309 6,575 5,201 6,364
         
         
Net earnings per share – Basic and Diluted 0.62 0.77 0.61 0.75
GOODFELLOW INC.      
Consolidated Statements of Financial Position      
(in thousands of dollars)      
Unaudited      
  As at As at As at
  May 31
2024
November 30
2023
May 31
2023
  $ $ $
Assets      
Current Assets      
Cash 4,822 28,379 3,171
Trade and other receivables 95,546 53,674 87,163
Income taxes receivable 7,286 6,286 6,001
Inventories 130,239 98,473 122,268
Prepaid expenses 2,536 4,215 2,263
Total Current Assets 240,429 191,027 220,866
       
Non-Current Assets      
Property, plant and equipment 34,631 32,761 32,405
Intangible assets 1,192 1,487 1,795
Right-of-use assets 9,993 11,354 12,916
Defined benefit plan asset 15,264 15,347 11,760
Other assets 1,227 777 802
Total Non-Current Assets 62,307 61,726 59,678
Total Assets 302,736 252,753 280,544
       
Liabilities      
Current Liabilities      
Bank indebtedness 35,883 34,002
Trade and other payables 52,645 37,620 36,553
Provision 2,774 2,789 2,252
Current portion of lease liabilities 4,170 4,732 4,748
Total Current Liabilities 95,472 45,141 77,555
       
Non-Current Liabilities      
Provision 770
Lease liabilities 7,373 8,497 10,189
Deferred income taxes 4,112 4,112 3,431
Total Non-Current Liabilities 11,485 12,609 14,390
Total Liabilities 106,957 57,750 91,945
       
Shareholders’ Equity      
Share capital 9,366 9,379 9,394
Retained earnings 186,413 185,624 179,205
  195,779 195,003 188,599
Total Liabilities and Shareholders’ Equity 302,736 252,753 280,544
GOODFELLOW INC.        
Consolidated Statements of Cash Flows        
For the three and six months ended May 31, 2024 and May 31, 2023    
(in thousands of dollars)
Unaudited
       
For the three months ended For the six months ended
  May 31
2024
May 31
2023
May 31
2024
May 31
2023
  $ $ $ $
Operating Activities        
Net earnings 5,309 6,575 5,201 6,364
Adjustments for:        
Depreciation and amortization of:        
Property, plant and equipment 882 795 1,717 1,540
Intangible assets 148 150 295 301
Right-of-use assets 1,089 1,188 2,123 2,445
Gain on disposal of property, plant and equipment (69) (171) (77) (181)
Accretion expense on provision 68 136
Provision (4) (7) (15) (29)
Income taxes 2,066 2,557 2,023 2,475
Interest expense 330 481 375 569
Interest on lease liabilities 137 158 274 140
Funding in excess (deficit) of pension plan expense 189 (70) 83 (140)
Other 7 (10) 8 (139)
  10,084 11,714 12,007 13,481
         
Changes in non-cash working capital items (24,366) (15,844) (56,876) (32,124)
Interest paid (518) (632) (707) (740)
Income taxes paid (1,098) (3,019) (3,023) (6,037)
  (25,982) (19,495) (60,606) (38,901)
Net Cash Flows from Operating Activities (15,898) (7,781) (48,599) (25,420)
         
Financing Activities        
Net increase (decrease) in bank loans 6,000 (2,000) 6,000
Net increase in banker’s acceptances 23,000 28,000
Net increase in CORRA loans 18,000 18,000
Payment of lease liabilities (1,257) (1,287) (2,456) (2,792)
Redemption of shares (50) (150) (169) (270)
Dividends paid (4,256) (4,274) (4,256) (4,274)
Net Cash Flows from Financing Activities 18,437 15,289 17,119 20,664
         
Investing Activities        
Acquisition of property, plant and equipment (2,618) (839) (3,900) (1,683)
Proceeds on disposal of property, plant and equipment 382 178 390 188
Other assets (450) (450)
Net Cash Flows from Investing Activities (2,686) (661) (3,960) (1,495)
         
Net cash (outflow) inflow (147) 6,847 (35,440) (6,251)
Cash position, beginning of period (6,914) (9,678) 28,379 3,420
Cash position, end of period (7,061) (2,831) (7,061) (2,831)
GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the six months ended May 31, 2024 and May 31, 2023
(in thousands of dollars)
Unaudited
 
  Share
Capital
Retained
Earnings
Total
  $ $ $
       
Balance as at November 30, 2022 9,419 177,360 186,779
       
Net earnings 6,364 6,364
       
Total comprehensive income 6,364 6,364
       
Dividend (4,274) (4,274)
Redemption of Shares (25) (245) (270)
       
Balance as at May 31, 2023 9,394 179,205 188,599
       
       
       
Balance as at November 30, 2023 9,379 185,624 195,003
       
Net earnings 5,201 5,201
       
Total comprehensive income 5,201 5,201
       
Dividend (4,256) (4,256)
Redemption of Shares (13) (156) (169)
       
Balance as at May 31, 2024 9,366 186,413 195,779
From: Goodfellow Inc.
  Patrick Goodfellow
  President and CEO
  T: 450 635-6511
  F: 450 635-3730
  [email protected]


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