Goodfellow Reports Its Results for the First Quarter Ended February 29, 2024
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) | ||||
| ||||
| For the three months ended |
| ||
| February 29 |
| February 28 |
|
| $ |
| $ |
|
|
|
| ||
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 |
| November 30 |
| February 28 |
|
| $ |
| $ |
| $ |
|
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) | |||||
| For the three months ended |
| |||
| February 28 |
| February 28 |
| |
| $ |
| $ |
| |
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) | ||||||
| ||||||
| Share |
| Retained |
| 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