For the three months ended
For the nine months ended
In the third quarter of 2023, Goodfellow continued to experience the effects of deteriorating economic conditions on the forest products and building materials industry. As demand slowed, a surplus of inventory developed within the market which challenged growth and put downward pressure on prices. Despite these headwinds, Goodfellow focused on reconciliation and renewal of its inventories of diversified product categories, as well as leveraging its value-added capabilities to deliver a positive result for Q3.
The Board of Directors declared an eligible dividend of
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
Consolidated Statements of Comprehensive Income | ||||
For the three and nine months ended | ||||
(in thousands of dollars, except per share amounts) | ||||
Unaudited | ||||
For the three months ended | For the nine months ended | |||
2023 | 2022 | 2023 | 2022 | |
$ | $ | $ | $ | |
Sales | 139,155 | 167,574 | 387,406 | 481,886 |
Expenses | ||||
Cost of goods sold | 107,535 | 129,715 | 301,829 | 374,716 |
Selling, administrative and general expenses | 22,220 | 22,126 | 66,143 | 65,464 |
Net financial costs | 802 | 1,038 | 1,997 | 2,484 |
130,557 | 152,879 | 369,969 | 442,664 | |
Earnings before income taxes | 8,598 | 14,695 | 17,437 | 39,222 |
Income taxes | 2,407 | 4,115 | 4,882 | 10,983 |
Total comprehensive income | 6,191 | 10,580 | 12,555 | 28,239 |
Net earnings per share – Basic and Diluted | 0.72 | 1.24 | 1.47 | 3.30 |
Consolidated Statements of Financial Position | |||
(in thousands of dollars) | |||
Unaudited | |||
As at | As at | As at | |
2023 | 2022 | 2022 | |
$ | $ | $ | |
Assets | |||
Current Assets | |||
Cash | 7,973 | 3,420 | 2,279 |
Trade and other receivables | 66,235 | 64,423 | 76,201 |
Income taxes receivable | 3,946 | 2,439 | 33 |
Inventories | 113,346 | 112,294 | 142,082 |
Prepaid expenses | 2,177 | 2,555 | 3,237 |
Total Current Assets | 193,677 | 185,131 | 223,832 |
Non-Current Assets | |||
Property, plant and equipment | 32,906 | 32,269 | 31,148 |
Intangible assets | 1,644 | 2,096 | 2,235 |
Right-of-use assets | 11,697 | 14,999 | 14,614 |
Defined benefit plan asset | 11,829 | 11,620 | 10,441 |
Other assets | 777 | 802 | 802 |
Total Non-Current Assets | 58,853 | 61,786 | 59,240 |
Total Assets | 252,530 | 246,917 | 283,072 |
Liabilities | |||
Current Liabilities | |||
Bank indebtedness | - | - | 31,590 |
Trade and other payables | 37,551 | 36,286 | 42,744 |
Provision | 2,253 | 2,281 | 370 |
Current portion of lease liabilities | 4,863 | 4,969 | 4,836 |
Total Current Liabilities | 44,667 | 43,536 | 79,540 |
Non-Current Liabilities | |||
Provision | 837 | 634 | 2,281 |
Lease liabilities | 8,867 | 12,537 | 12,338 |
Deferred income taxes | 3,431 | 3,431 | 3,151 |
Total Non-Current Liabilities | 13,135 | 16,602 | 17,770 |
Total Liabilities | 57,802 | 60,138 | 97,310 |
Shareholders’ Equity | |||
Share capital | 9,388 | 9,419 | 9,424 |
Retained earnings | 185,340 | 177,360 | 176,338 |
194,728 | 186,779 | 185,762 | |
Total Liabilities and Shareholders’ Equity | 252,530 | 246,917 | 283,072 |
Consolidated Statements of Cash Flows | ||||||
For the three and nine months ended | ||||||
(in thousands of dollars) | ||||||
Unaudited | ||||||
For the three months ended | For the nine months ended | |||||
2023 | 2022 | 2023 | 2022 | |||
$ | $ | $ | $ | |||
Operating Activities | ||||||
Net earnings | 6,191 | 10,580 | 12,555 | 28,239 | ||
Adjustments for: | ||||||
Depreciation and amortization of: | ||||||
Property, plant and equipment | 856 | 636 | 2,396 | 1,788 | ||
Intangible assets | 151 | 153 | 452 | 455 | ||
Right-of-use assets | 1,164 | 1,175 | 3,609 | 3,365 | ||
Gain on disposal of property, plant and equipment | - | (10) | (181) | (45) | ||
Accretion expense on provision | 68 | 25 | 204 | 76 | ||
Provision | - | (34) | (29) | 428 | ||
Income taxes | 2,407 | 4,115 | 4,882 | 10,983 | ||
Interest expense | 341 | 508 | 910 | 1,007 | ||
Interest on lease liabilities | 146 | 152 | 286 | 430 | ||
Funding in excess of pension plan expense | (69) | (15) | (209) | (44) | ||
Other | 152 | (13) | 13 | (38) | ||
11,407 | 17,272 | 24,888 | 46,644 | |||
Changes in non-cash working capital items | 30,890 | 29,012 | (1,234) | (39,462) | ||
Interest paid | (436) | (539) | (1,176) | (1,426) | ||
Income taxes paid | (352) | (3,070) | (6,389) | (20,038) | ||
30,102 | 25,403 | (8,799) | (60,926) | |||
Net Cash Flows from Operating Activities | 41,509 | 42,675 | 16,089 | (14,282) | ||
Financing Activities | ||||||
Net (decrease) increase in bank loans | - | (5,000) | - | 6,000 | ||
Net (decrease) increase in banker’s acceptances | (28,000) | (35,000) | - | 18,000 | ||
Payment of lease liabilities | (1,304) | (1,282) | (4,096) | (3,702) | ||
Redemption of shares | (62) | - | (332) | - | ||
Dividends paid | - | - | (4,274) | (3,425) | ||
Net Cash Flows from Financing Activities | (29,366) | (41,282) | (8,702) | 16,873 | ||
Investing Activities | ||||||
Acquisition of property, plant and equipment | (1,357) | (1,002) | (3,040) | (2,914) | ||
Increase in intangible assets | - | - | - | (40) | ||
Proceeds on disposal of property, plant and equipment | - | 10 | 188 | 45 | ||
Dividend from joint venture | 25 | - | 25 | - | ||
Dissolution of the joint venture | (7) | - | (7) | - | ||
Net Cash Flows from Investing Activities | (1,339) | (992) | (2,834) | (2,909) | ||
Net cash inflow (outflow) | 10,804 | 401 | 4,553 | (318) | ||
Cash position, beginning of period | (2,831) | (3,712) | 3,420 | (2,993) | ||
Cash position, end of period | 7,973 | (3,311) | 7,973 | (3,311) | ||
Cash position is comprised of: | ||||||
Cash | 7,973 | 2,279 | 7,973 | 2,279 | ||
Bank overdraft | - | (5,590) | - | (5,590) | ||
7,973 | (3,311) | 7,973 | (3,311) |
Consolidated Statements of Changes in Shareholders’ Equity | |||
For the nine months ended | |||
(in thousands of dollars) | |||
Unaudited | |||
Share Capital | Retained Earnings | Total | |
$ | $ | $ | |
Balance as at | 9,424 | 151,524 | 160,948 |
Net earnings | - | 28,239 | 28,239 |
Total comprehensive income | - | 28,239 | 28,239 |
Dividend | - | (3,425) | (3,425) |
Balance as at | 9,424 | 176,338 | 185,762 |
Balance as at | 9,419 | 177,360 | 186,779 |
Net earnings | - | 12,555 | 12,555 |
Total comprehensive income | - | 12,555 | 12,555 |
Dividend | - | (4,274) | (4,274) |
Redemption of Shares | (31) | (301) | (332) |
Balance as at | 9,388 | 185,340 | 194,728 |
From: | |
President and CEO | |
T: 450 635-6511 | |
F: 450 635-3730 | |
info@goodfellowinc.com |
Source:
2023 GlobeNewswire, Inc., source