Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2021

Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2021

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

DELSON, Quebec, July 08, 2021 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31, 2021. The Company reported a net income of $14.0 million or $1.63 per share compared to a net income of $3.4 million or $0.40 per share a year ago. Sales for the three months ended May 31, 2021 were $185.5 million compared to $103.8 million last year. Sales in Canada increased 90% compared to the same period a year ago, while sales in the United States increased 13% and export sales increased 7%. Selling, administrative and general expenses increased overall by $9.0 million.

For the six months ended May 31, 2021, the Company reported a net income of $17.7 million or $2.07 per share compared to a net income of $1.3 million or $0.16 per share a year ago. Sales were $305.0 million compared to $192.6 million last year. Sales in Canada increased 67% compared to the same period a year ago, while sales in the United States increased 10% and export sales increased 16% compared to the same period a year ago. On the operating side, selling, administrative and general expenses increased overall by $9.1 million.

The second-quarter results of fiscal 2021 were uncharacteristically greater than past years and demonstrate the unpredictability of conditions within all sectors. The Company was able to capitalize on surging demand, while at the same time mitigating ongoing supply disruptions. The Company remains well-positioned to adapt swiftly to changing circumstances, while still pursuing core success drivers including value-added specialty products, a commitment to maintaining inventory levels and ensuring superior customer service from coast to coast.

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”.

Media Inquiries
450-635-6511 / 800-361-6503
info@goodfellowinc.com

GOODFELLOW INC.    
Consolidated Statements of Comprehensive Income   
For the three and six months ended May 31, 2021 and 2020   
(in thousands of dollars, except per share amounts)   
Unaudited    
     
  For the three months ended For the six months ended
  May 31
2021		 May 31
2020		 May 31
2021		 May 31
2020
  $ $ $ $
         
Sales 185,525 103,763 304,958 192,619
Expenses (Income)        
Cost of goods sold 142,187 84,238 236,179 155,718
Selling, administrative and general expenses 23,072 14,060 42,719 33,578
Loss (gain) on disposal of property, plant and equipment 1 5 (7) (10)
Net financial costs 822 739 1,390 1,473
  166,082 99,042 280,281 190,759
         
Earnings before income taxes 19,443 4,721 24,677 1,860
         
Income taxes 5,467 1,322 6,932 521
         
Total comprehensive income 13,976 3,399 17,745 1,339
         
         
Net earnings per share – Basic and Diluted 1.63 0.40 2.07 0.16


GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)   
Unaudited
    
  As at As at As at
  May 31
2021		 November 30
2020		 May 31
2020
  $ $ $
Assets      
Current Assets      
Cash 2,534 3,466 1,854
Trade and other receivables 107,788 76,093 69,531
Inventories 115,285 84,740 92,071
Prepaid expenses 5,910 2,584 1,469
Total Current Assets 231,517 166,883 164,925
       
Non-Current Assets      
Property, plant and equipment 30,617 31,148 31,992
Intangible assets 2,942 3,238 3,600
Right-of-use assets 13,020 14,324 15,723
Defined benefit plan asset 1,919 1,945 2,198
Other assets 785 785 778
Total Non-Current Assets 49,283 51,440 54,291
Total Assets 280,800 218,323 219,216
       
Liabilities      
Current liabilities      
Bank indebtedness 63,258 28,570 43,562
Trade and other payables 54,938 39,614 40,492
Income taxes payable 4,427 4,859 164
Provision 2,795 1,473 1,496
Dividend payable – 2,141 –
Current portion of lease liabilities 4,241 4,315 4,242
Total Current Liabilities 129,659 80,972 89,956
       
Non-Current Liabilities      
Lease liabilities 11,904 13,343 14,975
Deferred income taxes 1,597 1,597 2,269
Defined benefit plan obligation 1,235 1,182 692
Total Non-Current Liabilities 14,736 16,122 17,936
Total Liabilities 144,395 97,094 107,892
       
Shareholders’ Equity      
Share capital 9,424 9,424 9,424
Retained earnings 126,981 111,805 101,900
  136,405 121,229 111,324
Total Liabilities and Shareholders’ Equity 280,800 218,323 219,216

     

GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the three and six months ended May 31, 2021 and 2020    
(in thousands of dollars)
Unaudited
 
  For the three months ended For the six months ended
  May 31
2021		 May 31
2020		 May 31
2021		 May 31
2020
  $ $ $ $
Operating Activities        
Net earnings 13,976 3,399 17,745 1,339
Adjustments for:        
Depreciation and amortization of:        
Property, plant and equipment 638 673 1,265 1,324
Right-of-use assets 1,043 1,088 2,056 2,181
Intangible assets 153 182 314 363
Accretion expense on provision 11 18 22 36
Increase (decrease) in provision 1,300 – 1,300 (10)
Income taxes 5,467 1,322 6,932 521
Loss (gain) on disposal of property, plant and equipment 1 5 (7) (10)
Interest expense 312 315 460 638
Interest on lease liabilities 149 174 303 353
Funding in deficit of pension plan expense 60 54 79 106
Other (26) 41 (31) 41
  23,084 7,271 30,438 6,882
         
Changes in non-cash working capital items (47,024) (538) (49,992) (13,154)
Interest paid (696) (271) (1,013) (619)
Income taxes paid (961) (62) (7,364) (1,091)
  (48,681) (871) (58,369) (14,864)
Net Cash Flows from Operating Activities (25,597) 6,400 (27,931) (7,982)
         
Financing Activities        
Net decrease in bank loans (7,000) (2,000)                 (5,000) (5,000)
Net increase in banker’s acceptances 35,000 3,000 38,000 16,000
Payment of lease liabilities (1,118) (1,309) (2,234) (2,642)
Dividend paid (2,569) (856) (4,710) (1,712)
  24,313 (1,165) 26,056 6,646
         
Investing Activities        
Acquisition of property, plant and equipment (549) (149) (737) (510)
Increase in intangible assets (18) (36) (18) (36)
Proceeds on disposal of property, plant and equipment 10 (2) 10 14
  (557) (187) (745) (532)
         
Net cash (outflow) inflow (1,841) 5,048 (2,620) (1,868)
Cash position, beginning of period (1,883) (5,756) (1,104) 1,160
Cash position, end of period (3,724) (708) (3,724) (708)
         
Cash position is comprised of:        
Cash 2,534 1,854 2,534 1,854
Bank overdraft (6,258) (2,562) (6,258) (2,562)
  (3,724) (708) (3,724) (708)

GOODFELLOW INC.   
Consolidated Statements of Changes in Shareholders’ Equity   
For the six months ended May 31, 2021 and 2020
(in thousands of dollars)   
Unaudited
    
  Share Retained Total
Capital Earnings
             $ $ $
       
Balance as at November 30, 2019 9,424 103,984 113,408
       
IFRS 16 adoption adjustment, net of taxes of $940 – (2,567) (2,567)
       
Balance as at December 1, 2019  9,424 101,417 110,841
       
Net earnings – 1,339 1,339
       
Total comprehensive income – 1,339 1,339
       
Transactions with owners of the Company      
       
Dividend  – (856) (856)
       
Balance as at May 31, 2020 9,424 101,900 111,324
       
Balance as at November 30, 2020 9,424 111,805 121,229
       
Net earnings – 17,745 17,745
       
Total comprehensive income – 17,745 17,745
       
Transactions with owners of the Company      
       
Dividend  – (2,569) (2,569)
       
Balance as at May 31, 2021 9,424 126,981 136,405

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

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