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Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2024 and Declares a Dividend

DELSON, Quebec, Oct. 09, 2024 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2024.

For the three months ended August 31, 2024, the Company reported net earnings of $5.8 million or $0.68 per share compared to net earnings of $6.2 million or $0.72 per share a year ago, while consolidated sales were $140 million compared to $139 million last year.

For the nine months ended August 31, 2024, the Company reported net earnings of $11.0 million or $1.29 per share compared to net earnings of $12.6 million or $1.47 per share a year ago, while consolidated sales were $385 million compared to $387 million last year.

In the third quarter, seasonal consumer demand remained modest, and as a result, retailers felt no urgency to increase their inventories. However, the supply chain demonstrated stability, ensuring reliable, just-in-time deliveries of building materials. These factors worked in favour of Goodfellow, particularly in its custom job lot capabilities and robust distribution network. In August 2024, Goodfellow acquired strategic hardwood processing assets located in Petersburg and Hazelton, West Virginia, USA. With an experienced staff and efficient production capabilities, the Company expects positive returns from these assets by the second quarter of 2025.

The Board of Directors declared an eligible dividend of $0.25 per share payable on November 6, 2024 to shareholders of record at the close of business on October 23, 2024. This dividend is designated as an eligible dividend under the Income Tax Act (Canada). The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.

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 nine months ended August 31, 2024 and 2023
(in thousands of dollars, except per share amounts)
Unaudited    
          
  For the three months ended For the nine months ended
  August 31
2024
August 31
2023
August 31
2024
August 31
2023
  $ $ $ $
         
Sales 139,668 139,155 385,336 387,406
Expenses        
Cost of goods sold 105,280 107,535 294,025 301,829
Selling, administrative and general expenses 25,447 22,220 74,439 66,143
Net financial costs 955 802 1,662 1,997
  131,682 130,557 370,126 369,969
         
Earnings before income taxes 7,986 8,598 15,210 17,437
         
Income taxes 2,236 2,407 4,259 4,882
         
Total comprehensive income 5,750 6,191 10,951 12,555
         
         
Net earnings per share – Basic and Diluted 0.68 0.72 1.29 1.47
GOODFELLOW INC.      
Consolidated Statements of Financial Position      
(in thousands of dollars)      
Unaudited      
  As at As at As at
  August 31
2024
November 30
2023
August 31
2023
  $ $ $
Assets      
Current Assets      
Cash 6,273 28,379 7,973
Trade and other receivables 73,775 53,674 66,235
Income taxes receivable 4,849 6,286 3,946
Inventories 131,853 98,473 113,346
Prepaid expenses 2,101 4,215 2,177
Total Current Assets 218,851 191,027 193,677
       
Non-Current Assets      
Property, plant and equipment 43,610 32,761 32,906
Intangible assets 1,044 1,487 1,644
Right-of-use assets 15,818 11,354 11,697
Defined benefit plan asset 15,325 15,347 11,829
Other assets 1,343 777 777
Total Non-Current Assets 77,140 61,726 58,853
Total Assets 295,991 252,753 252,530
       
Liabilities      
Current Liabilities      
Bank indebtedness 21,636
Trade and other payables 50,043 37,620 37,551
Provision 1,747 2,789 2,253
Current portion of lease liabilities 5,326 4,732 4,863
Total Current Liabilities 78,752 45,141 44,667
       
Non-Current Liabilities      
Provision 837
Lease liabilities 11,966 8,497 8,867
Deferred income taxes 4,112 4,112 3,431
Total Non-Current Liabilities 16,078 12,609 13,135
Total Liabilities 94,830 57,750 57,802
       
Shareholders’ Equity      
Share capital 9,337 9,379 9,388
Retained earnings 191,824 185,624 185,340
  201,161 195,003 194,728
Total Liabilities and Shareholders’ Equity 295,991 252,753 252,530
GOODFELLOW INC.        
Consolidated Statements of Cash Flows        
For the three and nine months ended August 31, 2024 and August 31, 2023    
(in thousands of dollars)
Unaudited
       
For the three months ended For the nine months ended
  August 31
2024
August 31
2023
August 31
2024
August 31
2023
  $ $ $ $
Operating Activities        
Net earnings 5,750 6,191 10,951 12,555
Adjustments for:        
     Depreciation and amortization of:        
          Property, plant and equipment 1,099 856 2,816 2,396
          Intangible assets 148 151 443 452
          Right-of-use assets 1,266 1,164 3,389 3,609
     Gain on disposal of property, plant and equipment (18) (95) (181)
     Accretion expense on provision 68 204
     Provision (1,027) (1,042) (29)
     Income taxes 2,236 2,407 4,259 4,882
     Interest expense 519 341 894 910
     Interest on lease liabilities 212 146 486 286
     Funding in excess (deficit) of pension plan expense (61) (69) 22 (209)
     Other (19) 152 (11) 13
  10,105 11,407 22,112 24,888
         
Changes in non-cash working capital items 17,964 30,890 (38,912) (1,234)
Interest paid (706) (436) (1,413) (1,176)
Income taxes recovered (paid) 201 (352) (2,822) (6,389)
  17,459 30,102 (43,147) (8,799)
Net Cash Flows from Operating Activities 27,564 41,509 (21,035) 16,089
         
Financing Activities        
Net decrease in bank loans (6,000)
Net decrease in banker’s acceptances (28,000)
Net (decrease) increase in CORRA loans (3,000) 15,000
Payment of lease liabilities (1,322) (1,304) (3,778) (4,096)
Redemption of shares (368) (62) (537) (332)
Dividends paid (4,256) (4,274)
Net Cash Flows from Financing Activities (10,690) (29,366) 6,429 (8,702)
         
Investing Activities        
Acquisition of property, plant and equipment (10,082) (1,357) (13,982) (3,040)
Proceeds on disposal of property, plant and equipment 22 412 188
Dividend from joint venture 25 25
Dissolution of the joint venture (7) (7)
Other assets (116) (566)
Net Cash Flows from Investing Activities (10,176) (1,339) (14,136) (2,834)
         
Net cash (outflow) inflow 6,698 10,804 (28,742) 4,553
Cash position, beginning of period (7,061) (2,831) 28,379 3,420
Cash position, end of period (363) 7,973 (363) 7,973
         
Cash position is comprised of        
Cash 6,273 7,973 6,273 7,973
Bank overdraft (6,636) (6,636)
  (363) 7,973 (363) 7,973
GOODFELLOW INC.  
Consolidated Statements of Changes in Shareholders’ Equity  
For the nine months ended August 31, 2024 and August 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 12,555 12,555
       
Total comprehensive income 12,555 12,555
       
Dividend (4,274) (4,274)
Redemption of Shares (31) (301) (332)
       
Balance as at August 31, 2023 9,388 185,340 194,728
       
       
       
Balance as at November 30, 2023 9,379 185,624 195,003
       
Net earnings 10,951 10,951
       
Total comprehensive income 10,951 10,951
       
Dividend (4,256) (4,256)
Redemption of Shares (42) (495) (537)
       
Balance as at August 31, 2024 9,337 191,824 201,161


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