Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2022

Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2022

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

DELSON, Quebec, July 07, 2022 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter ended May 31, 2022. The Company reported net earnings of $12.5 million or $1.46 per share compared to net earnings of $14.0 million or $1.63 per share a year ago. Consolidated sales for the three months ended May 31, 2022 were $184.9 million compared to $185.5 million last year.

For the six months ended May 31, 2022, the Company reported net earnings of $17.7 million or $2.06 per share compared to net earnings of $17.7 million or $2.07 per share a year ago. Consolidated sales were $314.3 million compared to $305.0 million last year.

Following the unanticipated high return in the first quarter, Goodfellow delivered a strong second quarter through a well diversified offering of wood products and services, and by meeting the needs of customers. The Company also successfully navigated looming economic issues and signs of supply catching up with demand. Going forward, close attention will be paid to inflation and consumer behaviour, as well as overhead expenses and inventory levels.

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 six months ended May 31, 2022 and 2021          
(in thousands of dollars, except per share amounts)          
Unaudited              
               
  For the three months ended
   For the six months ended
  
  May 31
2022		   May 31
2021		   May 31
2022		   May 31
2021		  
  $   $   $   $  
                 
Sales 184,947   185,525   314,312   304,958  
Expenses                
Cost of goods sold 143,745   142,187   245,001   236,179  
Selling, administrative and general expenses 22,900   23,073   43,338   42,712  
Net financial costs 882   822   1,446   1,390  
  167,527   166,082   289,785   280,281  
                 
Earnings before income taxes 17,420   19,443   24,527   24,677  
                 
Income taxes 4,878   5,467   6,868   6,932  
                 
Total comprehensive income 12,542   13,976   17,659   17,745  
                 
                 
Net earnings per share – Basic and Diluted 1.46   1.63   2.06   2.07  

GOODFELLOW INC.            
Consolidated Statements of Financial Position            
(in thousands of dollars)
Unaudited		            
             
  As at   As at   As at  
  May 31
2022		   November 30
2021		   May 31
2021		  
  $   $   $  
Assets            
Current Assets            
Cash 2,608   4,253   2,534  
Trade and other receivables 101,654   63,246   107,788  
Income taxes receivable 1,078   –   –  
Inventories 141,126   109,787   115,285  
Prepaid expenses 9,451   4,189   5,910  
Total Current Assets 255,917   181,475   231,517  
             
Non-Current Assets            
Property, plant and equipment 30,782   30,022   30,617  
Intangible assets 2,388   2,650   2,942  
Right-of-use assets 13,663   12,262   13,020  
Defined benefit plan asset 10,426   10,397   1,919  
Other assets 802   785   785  
Total Non-Current Assets 58,061   56,116   49,283  
Total Assets 313,978   237,591   280,800  
             
Liabilities            
Current Liabilities            
Bank indebtedness 72,320   9,246   63,258  
Trade and other payables 44,322   37,897   54,938  
Income taxes payable –   9,022   4,427  
Provision 405   2,147   2,795  
Current portion of lease liabilities 4,605   4,256   4,241  
Total Current Liabilities 121,652   62,568   129,659  
             
Non-Current Liabilities            
Provision 2,255   –   –  
Lease liabilities 11,738   10,924   11,904  
Deferred income taxes 3,151   3,151   1,597  
Defined benefit plan obligation –   –   1,235  
Total Non-Current Liabilities 17,144   14,075   14,736  
Total Liabilities 138,796   76,643   144,395  
             
Shareholders’ Equity            
Share capital 9,424   9,424   9,424  
Retained earnings 165,758   151,524   126,981  
  175,182   160,948   136,405  
Total Liabilities and Shareholders’ Equity 313,978   237,591   280,800  

GOODFELLOW INC.        
Consolidated Statements of Cash Flows        
For the three and six months ended May 31, 2022 and 2021      
(in thousands of dollars)
Unaudited

        
  For the three months ended
   For the six months ended
  
  May 31
2022		   May 31
2021		   May 31
2022		   May 31
2021		  
  $   $   $   $  
Operating Activities                
Net earnings 12,542   13,976   17,659   17,745  
Adjustments for:        
Depreciation and amortization of:        
Property, plant and equipment 577   638   1,152   1,265  
Intangible assets 152   153   302   314  
Right-of-use assets 1,140   1,043   2,190   2,056  
Accretion expense on provision 26   11   51   22  
Increase in provision 462   1,300   462   1,300  
Income taxes 4,878   5,467   6,868   6,932  
(Gain) Loss on disposal of property, plant and equipment (10 ) 1   (35 ) (7 )
Interest expense 385   312   499   460  
Interest on lease liabilities 147   149   278   303  
Funding in (excess) deficit of pension plan expense (15 ) 60   (29 ) 79  
Other (24 ) (26 ) (25 ) (31 )
  20,260   23,084   29,372   30,438  
         
Changes in non-cash working capital items (32,520 ) (47,024 ) (68,474 ) (49,992 )
Interest paid (617 ) (696 ) (887 ) (1,013 )
Income taxes paid (3,277 ) (961 ) (16,968 ) (7,364 )
  (36,414 ) (48,681 ) (86,329 ) (58,369 )
Net Cash Flows from Operating Activities (16,154 ) (25,597 ) (56,957 ) (27,931 )
         
Financing Activities        
Net (decrease) increase in bank loans –   (7,000 ) 11,000   (5,000 )
Net increase in banker’s acceptances 32,000   35,000   53,000   38,000  
Payment of lease liabilities (1,233 ) (1,118 ) (2,420 ) (2,234 )
Dividend paid (3,425 ) (2,569 ) (3,425 ) (4,710 )
  27,342   24,313   58,155   26,056  
         
Investing Activities        
Acquisition of property, plant and equipment (1,468 ) (549 ) (1,912 ) (737 )
Increase in intangible assets (40 ) (18 ) (40 ) (18 )
Proceeds on disposal of property, plant and equipment 10   10   35   10  
  (1,498 ) (557 ) (1,917 ) (745 )
         
Net cash inflow (outflow) 9,690   (1,841 ) (719 ) (2,620 )
Cash position, beginning of period (13,402 ) (1,883 ) (2,993 ) (1,104 )
Cash position, end of period (3,712 ) (3,724 ) (3,712 ) (3,724 )
         
Cash position is comprised of:        
Cash 2,608   2,534   2,608   2,534  
Bank overdraft (6,320 ) (6,258 ) (6,320 ) (6,258 )
  (3,712 ) (3,724 ) (3,712 ) (3,724 )

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the six months ended May 31, 2022 and 2021
(in thousands of dollars)
Unaudited
  Share
Capital		   Retained
Earnings		   Total  
  $   $   $  
             
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  
             
Balance as at November 30, 2021 9,424   151,524   160,948  

Net earnings

 –   17,659   17,659  
Total comprehensive income –   17,659   17,659  

Transactions with owners of the Company

            
Dividend –   (3,425 ) (3,425 )
             
Balance as at May 31, 2022 9,424   165,758   175,182  

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

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