Goodfellow Reports Its Results for the First Quarter Ended February 29, 2024
April 11, 2024 at 05:00 pm EDT
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DELSON, Quebec, April 11, 2024 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the first quarter ended February 29, 2024.
The Company reported a net loss of $108 thousand or $0.01 per share compared to a net loss of $211 thousand or $0.02 per share a year ago. Consolidated sales for the three months ended February 29, 2024 were $105.3 million compared to $105.9 million last year.
Though under pressure from lingering inflation and cautious consumer sentiment, Goodfellow achieved a comparable overall financial performance in the first quarter thanks to its diversified product offering, expertise in value-added services, and efficient distribution systems, as well as its strong, debt-free balance sheet. With uncertain economic conditions ahead, the Company will continue to protect margins and seize opportunities for growth with new and existing customers.
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 29, 2024 and February 28, 2023
(in thousands of dollars, except per share amounts) Unaudited
For the three months ended
February 29 2024
February 28 2023
$
$
Sales
105,334
105,925
Expenses
Cost of goods sold
82,546
84,260
Selling, administrative and general expenses
22,884
21,684
Net financial costs
55
274
105,485
106,218
Loss before income taxes
(151
)
(293
)
Income taxes
(43
)
(82
)
Total comprehensive loss
(108
)
(211
)
Net loss per share – Basic and Diluted
(0.01
)
(0.02
)
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
As at
As at
As at
February 29 2024
November 30 2023
February 28 2023
$
$
$
Assets
Current Assets
Cash
4,397
28,379
1,958
Trade and other receivables
69,672
53,674
64,295
Income taxes receivable
8,254
6,286
5,539
Inventories
122,802
98,473
130,416
Prepaid expenses
3,771
4,215
3,663
Total Current Assets
208,896
191,027
205,871
Non-Current Assets
Property, plant and equipment
33,208
32,761
32,368
Intangible assets
1,340
1,487
1,945
Right-of-use assets
10,586
11,354
13,905
Defined benefit plan asset
15,453
15,347
11,690
Other assets
777
777
802
Total Non-Current Assets
61,364
61,726
60,710
Total Assets
270,260
252,753
266,581
Liabilities
Current Liabilities
Bank indebtedness
11,311
-
18,636
Trade and other payables
44,986
37,620
39,070
Provision
2,778
2,789
2,259
Dividends payable
4,256
-
4,274
Current portion of lease liabilities
4,419
4,732
4,763
Total Current Liabilities
67,750
45,141
69,002
Non-Current Liabilities
Provision
-
-
702
Lease liabilities
7,878
8,497
11,272
Deferred income taxes
4,112
4,112
3,431
Total Non-Current Liabilities
11,990
12,609
15,405
Total Liabilities
79,740
57,750
84,407
Shareholders’ Equity
Share capital
9,370
9,379
9,408
Retained earnings
181,150
185,624
172,766
190,520
195,003
182,174
Total Liabilities and Shareholders’ Equity
270,260
252,753
266,581
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 29, 2024 and February 28, 2023
(in thousands of dollars) Unaudited
For the three months ended
February 28 2024
February 28 2023
$
$
Operating Activities
Net loss
(108
)
(211
)
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment
835
745
Intangible assets
147
151
Right-of-use assets
1,034
1,257
Gain on disposal of property, plant and equipment
(8
)
(10
)
Accretion expense on provision
-
68
Provision
(11
)
(22
)
Income taxes
(43
)
(82
)
Interest expense
45
88
Interest on lease liabilities
137
(18
)
Funding in deficit of pension plan expense
(106
)
(70
)
Other
1
(129
)
1,923
1,767
Changes in non-cash working capital items
(32,510
)
(16,280
)
Interest paid
(189
)
(180
)
Income taxes paid
(1,925
)
(3,018
)
(34,624
)
(19,406
)
Net Cash Flows from Operating Activities
(32,701
)
(17,639
)
Financing Activities
Net increase in bank indebtedness
-
2,000
Net increase in banker’s acceptances
-
5,000
Payment of lease liabilities
(1,199
)
(1,505
)
Redemption of shares
(119
)
(120
)
Net Cash Flows from Financing Activities
(1,318
)
5,375
Investing Activities
Acquisition of property, plant and equipment
(1,282
)
(844
)
Proceeds on disposal of property, plant and equipment
8
10
Other assets
-
-
Net Cash Flows from Investing Activities
(1,274
)
(834
)
Net cash outflow
(35,293
)
(13,098
)
Cash, beginning of period
28,379
3,420
Cash, end of period
(6,914
)
(9,678
)
Cash position is comprised of:
Cash
4,397
1,958
Bank overdraft
(11,311
)
(11,636
)
(6,914
)
(9,678
)
GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended February 29, 2024 and February 28, 2023
(in thousands of dollars) Unaudited
Share Capital
Retained Earnings
Total
$
$
$
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
Balance as at November 30, 2023
9,379
185,624
195,003
Net loss
-
(108
)
(108
)
Total comprehensive loss
-
(108
)
(108
)
Dividend
-
(4,256
)
(4,256
)
Redemption of Shares
(9
)
(110
)
(119
)
Balance as at February 29, 2024
9,370
181,150
190,520
Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com
Goodfellow Inc. is a diversified manufacturer of value-added lumber products, as well as a wholesale distributor of building materials and floor coverings. Its business activities related to remanufacturing and distribution of lumber and wood products. It produces wood, wall concept, insulation and soundproofing, panels, floor, coating, specialties, terrace and roof. Its services include custom-made wood manufacturing; comprehensive and personalized carpentry services; HUNDEGGER K2i technology; wood treatment (MicroPro, CCA, ACQ and Flame Retardant); just-in-time and direct-to-job delivery; truck and container loading, and export preparation and packaging. It 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. It also leverages its value-added product capabilities to serve lumber markets internationally.