Goodfellow Reports Its Results for the First Quarter Ended February 28, 2023
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 sold | 84,260 | 101,256 | ||
| Selling, administrative and general expenses | 21,684 | 20,438 | ||
| Net financial costs | 274 | 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 at | As at | As at | |
| February 28 2023 | November 30 2022 | February 28 2022 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 1,958 | 3,420 | 3,038 |
| Trade and other receivables | 64,295 | 64,423 | 71,104 |
| Income taxes receivable | 5,539 | 2,439 | 2,679 |
| Inventories | 130,416 | 112,294 | 129,308 |
| Prepaid expenses | 3,663 | 2,555 | 12,482 |
| Total Current Assets | 205,871 | 185,131 | 218,611 |
| Non-Current Assets | |||
| Property, plant and equipment | 32,368 | 32,269 | 29,891 |
| Intangible assets | 1,945 | 2,096 | 2,500 |
| Right-of-use assets | 13,905 | 14,999 | 13,370 |
| Defined benefit plan asset | 11,690 | 11,620 | 10,411 |
| Other assets | 802 | 802 | 785 |
| Total Non-Current Assets | 60,710 | 61,786 | 56,957 |
| Total Assets | 266,581 | 246,917 | 275,568 |
| Liabilities | |||
| Current Liabilities | |||
| Bank indebtedness | 18,636 | – | 50,440 |
| Trade and other payables | 39,070 | 36,286 | 37,590 |
| Provision | 2,259 | 2,281 | 2,172 |
| Dividends payable | 4,274 | – | 3,425 |
| Current portion of lease liabilities | 4,763 | 4,969 | 4,395 |
| Total Current Liabilities | 69,002 | 43,536 | 98,022 |
| Non-Current Liabilities | |||
| Provision | 702 | 634 | – |
| Lease liabilities | 11,272 | 12,537 | 11,755 |
| Deferred income taxes | 3,431 | 3,431 | 3,151 |
| Total Non-Current Liabilities | 15,405 | 16,602 | 14,906 |
| Total Liabilities | 84,407 | 60,138 | 112,928 |
| Shareholders’ Equity | |||
| Share capital | 9,408 | 9,419 | 9,424 |
| Retained earnings | 172,766 | 177,360 | 153,216 |
| 182,174 | 186,779 | 162,640 | |
| Total Liabilities and Shareholders’ Equity | 266,581 | 246,917 | 275,568 |
| 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 equipment | 745 | 575 | ||
| Intangible assets | 151 | 150 | ||
| Right-of-use assets | 1,257 | 1,050 | ||
| Accretion expense on provision | 68 | 25 | ||
| Provision | (22 | ) | – | |
| Income taxes | (82 | ) | 1,990 | |
| Gain on disposal of property, plant and equipment | (10 | ) | (25 | ) |
| Interest expense | 88 | 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 loans | 2,000 | 11,000 | ||
| Net increase in banker’s acceptances | 5,000 | 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 equipment | 10 | 25 | ||
| Net Cash Flows from Investing Activities | (834 | ) | (419 | ) |
| Net cash outflow | (13,098 | ) | (10,409 | ) |
| Cash position, beginning of period | 3,420 | (2,993 | ) | |
| Cash position, end of period | (9,678 | ) | (13,402 | ) |
| Cash position is comprised of: | ||||
| Cash | 1,958 | 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, 2021 | 9,424 | 151,524 | 160,948 | |
| Net earnings | – | 5,117 | 5,117 | |
| Total comprehensive income | – | 5,117 | 5,117 | |
| Dividend | – | (3,425) | (3,425) | |
| Balance as at February 28, 2022 | 9,424 | 153,216 | 162,640 | |
| Balance as at November 30, 2022 | 9,419 | 177,360 | 186,779 | |
| 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, 2023 | 9,408 | 172,766 | 182,174 | |
| From: | Goodfellow Inc. Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com |
