Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2021
DELSON, Quebec, Oct. 07, 2021 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) announced today its financial results for the third quarter ended August 31, 2021. The Company reported a net income of $10.0 million or $1.17 per share compared to a net income of $6.7 million or $0.78 per share a year ago. Sales for the three months ended August 31, 2021 were $168.0 million compared to $138.8 million last year. Sales in Canada increased 22% compared to the same period a year ago, while sales in the United States increased 31% and export sales decreased 12%. Selling, administrative and general expenses increased overall by $2.4 million.
For the nine months ended August 31, 2021, the Company reported a net income of $27.8 million or $3.24 per share compared to a net income of $8.0 million or $0.94 per share a year ago. Sales were $472.9 million compared to $331.5 million last year. Sales in Canada increased 47% compared to the same period a year ago, while sales in the United States increased 17% and export sales increased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses increased overall by $11.5 million.
Third-quarter results of fiscal 2021 were characteristic for the period, which is considered the driver of the seasonal product business. At the onset of July, market conditions were increasingly difficult with the commodity pricing crisis that played havoc with demand in all sectors. Also, new home construction, renovation, manufacturing and industrial sectors showed some signs of slowing. Goodfellow was able to rely on its diversified offering and value-added capabilities to retain market share and continue on a positive trend.
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”.
| From: | Goodfellow Inc. Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Comprehensive Income | ||||
| For the three and nine months ended August 31, 2021 and 2020 | ||||
| (in thousands of dollars, except per share amounts) | ||||
| Unaudited | ||||
| For the three months ended | For the nine months ended | |||
| August 31 2021 | August 31 2020 | August 31 2021 | August 31 2020 | |
| $ | $ | $ | $ | |
| Sales | 167,953 | 138,843 | 472,911 | 331,462 |
| Expenses | ||||
| Cost of goods sold | 133,048 | 111,030 | 369,227 | 266,748 |
| Selling, administrative and general expenses | 20,210 | 17,834 | 62,922 | 51,402 |
| Net financial costs | 751 | 679 | 2,141 | 2,152 |
| 154,009 | 129,543 | 434,290 | 320,302 | |
| Earnings before income taxes | 13,944 | 9,300 | 38,621 | 11,160 |
| Income taxes | 3,905 | 2,604 | 10,837 | 3,125 |
| Total comprehensive income | 10,039 | 6,696 | 27,784 | 8,035 |
| Net earnings per share – Basic and Diluted | 1.17 | 0.78 | 3.24 | 0.94 |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) Unaudited | |||
| As at | As at | As at | |
| August 31 2021 | November 30 2020 | August 31 2020 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 1,726 | 3,466 | 1,884 |
| Trade and other receivables | 72,118 | 76,093 | 64,511 |
| Inventories | 115,046 | 84,740 | 82,498 |
| Prepaid expenses | 4,290 | 2,584 | 2,077 |
| Total Current Assets | 193,180 | 166,883 | 150,970 |
| Non-Current Assets | |||
| Property, plant and equipment | 30,220 | 31,148 | 31,536 |
| Intangible assets | 2,789 | 3,238 | 3,420 |
| Right-of-use assets | 12,630 | 14,324 | 15,113 |
| Defined benefit plan asset | 1,901 | 1,945 | 2,188 |
| Other assets | 785 | 785 | 778 |
| Total Non-Current Assets | 48,325 | 51,440 | 53,035 |
| Total Assets | 241,505 | 218,323 | 204,005 |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 24,681 | 28,570 | 23,872 |
| Trade and other payables | 41,680 | 39,614 | 35,818 |
| Income taxes payable | 7,418 | 4,859 | 3,246 |
| Provision | 2,730 | 1,473 | 1,514 |
| Dividend payable | – | 2,141 | – |
| Current portion of lease liabilities | 4,270 | 4,315 | 4,338 |
| Total Current Liabilities | 80,779 | 80,972 | 68,788 |
| Non-Current Liabilities | |||
| Lease liabilities | 11,405 | 13,343 | 14,194 |
| Deferred income taxes | 1,597 | 1,597 | 2,269 |
| Defined benefit plan obligation | 1,280 | 1,182 | 734 |
| Total Non-Current Liabilities | 14,282 | 16,122 | 17,197 |
| Total Liabilities | 95,061 | 97,094 | 85,985 |
| Shareholders’ Equity | |||
| Share capital | 9,424 | 9,424 | 9,424 |
| Retained earnings | 137,020 | 111,805 | 108,596 |
| 146,444 | 121,229 | 118,020 | |
| Total Liabilities and Shareholders’ Equity | 241,505 | 218,323 | 204,005 |
| GOODFELLOW INC. | |||||||||
| Consolidated Statements of Cash Flows | |||||||||
| For the three and nine months ended August 31, 2021 and 2020 | |||||||||
| (in thousands of dollars) Unaudited | |||||||||
| For the three months ended | For the nine months ended | ||||||||
| August 31 2021 | August 31 2020 | August 31 2021 | August 31 2020 | ||||||
| $ | $ | $ | $ | ||||||
| Operating Activities | |||||||||
| Net earnings | 10,039 | 6,696 | 27,784 | 8,035 | |||||
| Adjustments for: | |||||||||
| Depreciation and amortization of: | |||||||||
| Property, plant and equipment | 636 | 678 | 1,901 | 2,002 | |||||
| Right-of-use assets | 1,055 | 1,084 | 3,111 | 3,265 | |||||
| Intangible assets | 153 | 183 | 467 | 546 | |||||
| Accretion expense on provision | 11 | 18 | 33 | 54 | |||||
| Increase (decrease) in provision | (76 | ) | – | 1,224 | (10 | ) | |||
| Income taxes | 3,905 | 2,604 | 10,837 | 3,125 | |||||
| Gain on disposal of property, plant and equipment | (1 | ) | (1 | ) | (8 | ) | (11 | ) | |
| Interest expense | 247 | 187 | 707 | 825 | |||||
| Interest on lease liabilities | 143 | 167 | 446 | 520 | |||||
| Funding in deficit of pension plan expense | 63 | 52 | 142 | 158 | |||||
| Other | 21 | (13 | ) | (10 | ) | 28 | |||
| 16,196 | 11,655 | 46,634 | 18,537 | ||||||
| Changes in non-cash working capital items | 24,168 | 9,239 | (25,824 | ) | (3,915 | ) | |||
| Interest paid | (287 | ) | (114 | ) | (1,300 | ) | (733 | ) | |
| Income taxes paid | (914 | ) | 478 | (8,278 | ) | (613 | ) | ||
| 22,967 | 9,603 | (35,402 | ) | (5,261 | ) | ||||
| Net Cash Flows from Operating Activities | 39,163 | 21,258 | 11,232 | 13,276 | |||||
| Financing Activities | |||||||||
| Net increase (decrease) in bank loans | 14,000 | – | 9,000 | (5,000 | ) | ||||
| Net decrease in banker’s acceptances | (50,000 | ) | (21,000 | ) | (12,000 | ) | (5,000 | ) | |
| Payment of lease liabilities | (1,156 | ) | (1,312 | ) | (3,390 | ) | (3,954 | ) | |
| Dividend paid | – | – | (4,710 | ) | (1,712 | ) | |||
| (37,156 | ) | (22,312 | ) | (11,100 | ) | (15,666 | ) | ||
| Investing Activities | |||||||||
| Acquisition of property, plant and equipment | (238 | ) | (222 | ) | (975 | ) | (732 | ) | |
| Increase in intangible assets | – | (3 | ) | (18 | ) | (39 | ) | ||
| Proceeds on disposal of property, plant and equipment | – | (1 | ) | 10 | 13 | ||||
| (238 | ) | (226 | ) | (983 | ) | (758 | ) | ||
| Net cash inflow (outflow) | 1,769 | (1,280 | ) | (851 | ) | (3,148 | ) | ||
| Cash position, beginning of period | (3,724 | ) | (708 | ) | (1,104 | ) | 1,160 | ||
| Cash position, end of period | (1,955 | ) | (1,988 | ) | (1,955 | ) | (1,988 | ) | |
| Cash position is comprised of: | |||||||||
| Cash | 1,726 | 1,884 | 1,726 | 1,884 | |||||
| Bank overdraft | (3,681 | ) | (3,872 | ) | (3,681 | ) | (3,872 | ) | |
| (1,955 | ) | (1,988 | ) | (1,955 | ) | (1,988 | ) | ||
| GOODFELLOW INC. | |||
| Consolidated Statements of Changes in Shareholders’ Equity | |||
| For the nine months ended August 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 | – | 8,035 | 8,035 |
| Total comprehensive income | – | 8,035 | 8,035 |
| Transactions with owners of the Company | |||
| Dividend | – | (856) | (856) |
| Balance as at August 31, 2020 | 9,424 | 108,596 | 118,020 |
| Balance as at November 30, 2020 | 9,424 | 111,805 | 121,229 |
| Net earnings | – | 27,784 | 27,784 |
| Total comprehensive income | – | 27,784 | 27,784 |
| Transactions with owners of the Company | |||
| Dividend | – | (2,569) | (2,569) |
| Balance as at August 31, 2021 | 9,424 | 137,020 | 146,444 |
