Goodfellow Reports Its Results for the Fourth Quarter and Fiscal Year Ended November 30, 2023 and Declares a Dividend
DELSON, Quebec, Feb. 19, 2024 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced its financial results today.
For the fourth quarter ended November 30, 2023, the Company reported net earnings of $2.1 million or $0.25 per share compared to net earnings of $4.4 million or $0.52 per share a year ago. Consolidated sales for the three months ended November 30, 2023 were $125.4 million compared to $149.3 million last year.
For the fiscal year ended November 30, 2023, the Company reported net earnings of $14.7 million or $1.72 per share compared to net earnings of $32.7 million or $3.82 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2023 were $512.8 million compared to $631.2 million last year.
Goodfellow concluded its 125th anniversary year on a positive note, demonstrating resilience despite numerous external challenges. The retail sector experienced a significant downturn in demand, leading to an oversupply in the market, with the flooring category suffering the most significant setback in the second quarter of 2023. In addition, demand and prices for hardwoods declined considerably, with signs of recovery becoming evident only in the early months of fiscal 2024. Goodfellow’s ability to meet expectations in difficult business conditions, can be attributed to the diversity of its product offering and the dedication of its talented team.
The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.50 per share payable on March 19, 2024, to shareholders of record at the close of business on March 5, 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 direction 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 years ended November 30, 2023 and 2022 | ||
| (in thousands of dollars, except per share amounts) Unaudited | ||
| Years ended | ||
| November 30 2023 | November 30 2022 | |
| $ | $ | |
| Sales | 512,821 | 631,185 |
| Expenses | ||
| Cost of goods sold | 400,461 | 495,125 |
| Selling, administrative and general expenses | 89,841 | 88,143 |
| Net financial costs | 2,429 | 3,201 |
| 492,731 | 586,469 | |
| Earnings before income taxes | 20,090 | 44,716 |
| Income taxes | 5,402 | 12,037 |
| Net earnings | 14,688 | 32,679 |
| Items that will not subsequently be reclassified to net earnings | ||
| Remeasurement of defined benefit plan obligation net of taxes of $984 ($355 in 2022) | 2,531 | 914 |
| Total comprehensive income | 17,219 | 33,593 |
| Net earnings per share – Basic and Diluted | 1.72 | 3.82 |
| GOODFELLOW INC. | ||
| Consolidated Statements of Financial Position | ||
| (in thousands of dollars) Unaudited | ||
| As at | As at | |
| November 30 2023 | November 30 2022 | |
| $ | $ | |
| Assets | ||
| Current Assets | ||
| Cash | 28,379 | 3,420 |
| Trade and other receivables | 53,674 | 64,423 |
| Income taxes receivable | 6,286 | 2,439 |
| Inventories | 98,473 | 112,294 |
| Prepaid expenses | 4,215 | 2,555 |
| Total Current Assets | 191,027 | 185,131 |
| Non-Current Assets | ||
| Property, plant and equipment | 32,761 | 32,269 |
| Intangible assets | 1,487 | 2,096 |
| Right-of-use assets | 11,354 | 14,999 |
| Defined benefit plan asset | 15,347 | 11,620 |
| Other assets | 777 | 802 |
| Total Non-Current Assets | 61,726 | 61,786 |
| Total Assets | 252,753 | 246,917 |
| Liabilities | ||
| Current Liabilities | ||
| Trade and other payables | 37,620 | 36,286 |
| Provision | 2,789 | 2,281 |
| Current portion of lease liabilities | 4,732 | 4,969 |
| Total Current Liabilities | 45,141 | 43,536 |
| Non-Current Liabilities | ||
| Provision | – | 634 |
| Lease liabilities | 8,497 | 12,537 |
| Deferred income taxes | 4,112 | 3,431 |
| Total Non-Current Liabilities | 12,609 | 16,602 |
| Total Liabilities | 57,750 | 60,138 |
| Shareholders’ Equity | ||
| Share capital | 9,379 | 9,419 |
| Retained earnings | 185,624 | 177,360 |
| 195,003 | 186,779 | |
| Total Liabilities and Shareholders’ Equity | 252,753 | 246,917 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the years ended November 30, 2023 and 2022 | ||||
| (in thousands of dollars) Unaudited | ||||
| Years ended | ||||
|
| November 30 2023 | November 30 2022 | ||
| $ | $ | |||
| Operating Activities | ||||
| Net earnings | 14,688 | 32,679 | ||
| Adjustments for: | ||||
| Depreciation and amortization of: | ||||
| Property, plant and equipment | 3,311 | 2,551 | ||
| Intangible assets | 602 | 608 | ||
| Right-of-use assets | 4,697 | 4,551 | ||
| Gain on disposal of property, plant and equipment | (139) | (45) | ||
| Accretion expense on provision | 271 | 102 | ||
| Provision | (397) | 666 | ||
| Income taxes | 5,402 | 12,037 | ||
| Interest expense | 996 | 1,230 | ||
| Interest on lease liabilities | 431 | 603 | ||
| Funding in (deficit) excess of pension plan expense | (212) | 46 | ||
| Other | 24 | 23 | ||
| 29,674 | 55,051 | |||
| Changes in non-cash working capital items | 24,213 | (3,734) | ||
| Interest paid | (1,367) | (1,731) | ||
| Income taxes paid | (9,552) | (23,573) | ||
| 13,294 | (29,038) | |||
| Net Cash Flows from Operating Activities | 42,968 | 26,013 | ||
| Financing Activities | ||||
| Net decrease in bank indebtedness | – | (2,000) | ||
| Payment of lease liabilities | (5,350) | (4,985) | ||
| Redemption of shares | (456) | (56) | ||
| Dividends paid | (8,539) | (7,706) | ||
| Net Cash Flows from Financing Activities | (14,345) | (14,747) | ||
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (3,836) | (4,827) | ||
| Decrease (increase) in intangible assets | 7 | (54) | ||
| Proceeds on disposal of property, plant and equipment | 147 | 45 | ||
| Other assets | 18 | (17) | ||
| Net Cash Flows from Investing Activities | (3,664) | (4,853) | ||
| Net cash inflow | 24,959 | 6,413 | ||
| Cash (bank indebtedness), beginning of year | 3,420 | (2,993) | ||
| Cash, end of year | 28,379 | 3,420 | ||
| GOODFELLOW INC. | |||
| Consolidated Statements of Changes in Shareholders’ Equity | |||
| For years ended November 30, 2023 and 2022 | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| Share Capital | Retained Earnings | Total | |
| $ | $ | $ | |
| Balance as at November 30, 2021 | 9,424 | 151,524 | 160,948 |
| Net earnings | – | 32,679 | 32,679 |
| Other comprehensive income | – | 914 | 914 |
| Total comprehensive income | – | 33,593 | 33,593 |
| Dividend | – | (7,706) | (7,706) |
| Redemption of Shares | (5) | (51) | (56) |
| Balance as at November 30, 2022 | 9,419 | 177,360 | 186,779 |
| Net earnings | – | 14,688 | 14,688 |
| Other comprehensive income | – | 2,531 | 2,531 |
| Total comprehensive income | – | 17,219 | 17,219 |
| Dividend | – | (8,539) | (8,539) |
| Redemption of Shares | (40) | (416) | (456) |
| Balance as at November 30, 2023 | 9,379 | 185,624 | 195,003 |
Goodfellow Inc.
Patrick Goodfellow
President and CEO
T: 450 635-6511
F: 450 635-3730
info@goodfellowinc.com
