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Goodfellow Reports Its Results for the First Quarter Ended February 28, 2023

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

DELSON, Quebec, April 13, 2023 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the first quarter ended February 28, 2023.

The Company reported a net loss of $211 thousand or $0.02 per share compared to net earnings of $5.1 million or $0.60 per share a year ago. Consolidated sales for the three months ended February 28, 2023 were $105.9 million compared to $129.4 million last year.

Consumer demand in the first quarter of 2023 was significantly lower as compared to uncharacteristically high levels seen in the same period last year. This slowdown is attributed to supply finally outpacing demand, as well as growing unease around rising inflation and interest rates. Results remain comparable to pre-pandemic levels for the same period, which has been historically difficult.

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 28, 2023 and 2022
(in thousands of dollars, except per share amounts)
Unaudited
  
  
 For the three months ended
 February 28
2023
 February 28
2022
 $
 $
   
Sales 105,925  129,365
Expenses  
Cost of goods sold84,260  101,256
Selling, administrative and general expenses21,684 20,438
Net financial costs274  564
 106,218  122,258
   
(Loss) earnings before income taxes(293)7,107
   
Income taxes(82)1,990
   
Total comprehensive (loss) income(211)5,117
   
   
Net (loss) earnings per share – Basic and Diluted(0.02)0.60
    
    

    
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
    
 As atAs atAs at
 February 28 2023November 30
2022		February 28 2022
 $$$
Assets    
Current Assets   
Cash1,958 3,4203,038
Trade and other receivables64,295 64,42371,104
Income taxes receivable5,539 2,4392,679
Inventories130,416 112,294129,308
Prepaid expenses3,663 2,55512,482
Total Current Assets205,871 185,131218,611
    
Non-Current Assets   
Property, plant and equipment32,368 32,26929,891
Intangible assets1,945 2,0962,500
Right-of-use assets13,905 14,99913,370
Defined benefit plan asset11,690 11,62010,411
Other assets802802785
Total Non-Current Assets60,710 61,78656,957
Total Assets266,581 246,917275,568
    
Liabilities   
Current Liabilities   
Bank indebtedness18,636 –50,440
Trade and other payables39,070 36,28637,590
Provision2,259 2,2812,172
Dividends payable4,274 –3,425
Current portion of lease liabilities4,763 4,9694,395
Total Current Liabilities69,00243,53698,022
    
Non-Current Liabilities   
Provision702 634–
Lease liabilities11,272 12,53711,755
Deferred income taxes3,4313,4313,151
Total Non-Current Liabilities15,405 16,60214,906
Total Liabilities84,407 60,138112,928
    
Shareholders’ Equity   
Share capital9,408 9,4199,424
Retained earnings172,766 177,360153,216
 182,174 186,779162,640
Total Liabilities and Shareholders’ Equity266,581 246,917275,568
    
    

 
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 28, 2023 and 2022
(in thousands of dollars)
Unaudited
 For the three months ended
 February 28
2023		 February 28
2022		 
 $ $ 
Operating Activities  
Net (loss) earnings(211)5,117 
Adjustments for:  
Depreciation and amortization of:  
Property, plant and equipment745 575 
Intangible assets151  150 
Right-of-use assets1,257  1,050 
Accretion expense on provision68  25 
Provision(22 )– 
Income taxes(82 )1,990 
Gain on disposal of property, plant and equipment(10)(25)
Interest expense88  114 
Interest on lease liabilities(18 )131 
Funding in excess of pension plan expense(70 )(14)
Other(129 )(1)
 1,767  9,112 
   
Changes in non-cash working capital items(16,280)(35,954)
Interest paid(108)(270)
Income taxes paid(3,018)(13,691)
 (19,406)(49,915)
Net Cash Flows from Operating Activities (17,639)(40,803)
   
Financing Activities  
Net increase in bank loans2,000  11,000 
Net increase in banker’s acceptances5,000  21,000 
Payment of lease liabilities(1,505)(1,187)
Redemption of shares(120)– 
Net Cash Flows from Financing Activities 5,375  30,813 
   
Investing Activities  
Acquisition of property, plant and equipment(844)(444)
Proceeds on disposal of property, plant and equipment10  25 
Net Cash Flows from Investing Activities (834)(419)
   
Net cash outflow(13,098)(10,409)
Cash position, beginning of period3,420  (2,993)
Cash position, end of period(9,678)(13,402)
   
Cash position is comprised of:  
Cash1,958  3,038 
Bank overdraft(11,636)(16,440)
 (9,678)(13,402)
     
     

 
GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended February 28, 2023 and 2022
(in thousands of dollars)
 
Unaudited
    
 Share
Capital		Retained
Earnings		Total
 $$$
    
Balance as at November 30, 20219,424151,524160,948
    
Net earnings–5,1175,117
    
Total comprehensive income–5,1175,117
    
    
Dividend–(3,425)(3,425)
    
Balance as at February 28, 20229,424153,216162,640
    
Balance as at November 30, 20229,419177,360186,779 
    
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, 20239,408 172,766 182,174

From:Goodfellow Inc.
Patrick Goodfellow
President and CEO
T: 450 635-6511
F: 450 635-3730
info@goodfellowinc.com

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