GDL:CC - Goodfellow Reports Its Results for the Third Quarter Ended August 31 2022 and Declares Dividend

October, 13 2022 05:22 PM Goodfellow Inc.

DELSON, Quebec, Oct. 13, 2022 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2022. The Company reported net earnings of $10.6 million or $1.24 per share compared to net earnings of $10.0 million or $1.17 per share a year ago. Consolidated sales for the three months ended August 31, 2022 were $167.6 million compared to $168.0 million last year.

For the nine months ended August 31, 2022, the Company reported net earnings of $28.2 million or $3.30 per share compared to net earnings of $27.8 million or $3.24 per share a year ago. Consolidated sales were $481.9 million compared to $472.9 million last year.

Results for the third quarter of fiscal 2022 were characteristic for this period where seasonal demand is historically strong, which was unexpected given current inflationary pressures. Attention paid to overhead expenses helped maintain margin levels as cost of goods increased. Inventory levels remain high and it will be crucial to level them out before year end in order for Goodfellow to reach its objectives.

The Board of Directors declared an eligible dividend of $0.50 per share payable on November 10, 2022 to shareholders of record at the close of business on October 27, 2022. This dividend is designated as an eligible dividend under the Income Tax Act (Canada). The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.

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 nine months ended August 31, 2022 and 2021

(in thousands of dollars, except per share amounts)

Unaudited

For the three months ended

For the nine months ended

August 31
2022

August 31
2021

August 31
2022

August 31
2021

Sales

167,574

167,953

481,886

472,911

Expenses

Cost of goods sold

129,715

133,048

374,716

369,227

Selling, administrative and general expenses

22,126

20,210

65,464

62,922

Net financial costs

1,038

751

2,484

2,141

152,879

154,009

442,664

434,290

Earnings before income taxes

14,695

13,944

39,222

38,621

Income taxes

4,115

3,905

10,983

10,837

Total comprehensive income

10,580

10,039

28,239

27,784

Net earnings per share – Basic and Diluted

1.24

1.17

3.30

3.24

GOODFELLOW INC.



Consolidated Statements of Financial Position



(in thousands of dollars) *Unaudited*








As at
As at
As at

August 31 2022
November 30 2021
August 31 2021

$
$
$
Assets



Current Assets



Cash
2,279
4,253
1,726
Trade and other receivables
76,201
63,246
72,118
Income taxes receivable
33
-
-
Inventories
142,082
109,787
115,046
Prepaid expenses
3,237
4,189
4,290
Total Current Assets
223,832
181,475
193,180




Non-Current Assets



Property, plant and equipment
31,148
30,022
30,220
Intangible assets
2,235
2,650
2,789
Right-of-use assets
14,614
12,262
12,630
Defined benefit plan asset
10,441
10,397
1,901
Other assets
802
785
785
Total Non-Current Assets
59,240
56,116
48,325
Total Assets
283,072
237,591
241,505




Liabilities



Current Liabilities



Bank indebtedness
31,590
9,246
24,681
Trade and other payables
42,744
37,897
41,680
Income taxes payable
-
9,022
7,418
Provision
370
2,147
2,730
Current portion of lease liabilities
4,836
4,256
4,270
Total Current Liabilities
79,540
62,568
80,779




Non-Current Liabilities



Provision
2,281
-
-
Lease liabilities
12,338
10,924
11,405
Deferred income taxes
3,151
3,151
1,597
Defined benefit plan obligation
-
-
1,280
Total Non-Current Liabilities
17,770
14,075
14,282
Total Liabilities
97,310
76,643
95,061




Shareholders’ Equity



Share capital
9,424
9,424
9,424
Retained earnings
176,338
151,524
137,020

185,762
160,948
146,444
Total Liabilities and Shareholders’ Equity
283,072
237,591
241,505

GOODFELLOW INC.




Consolidated Statements of Cash Flows




For the three and nine months ended August 31, 2022 and 2021



(in thousands of dollars) *Unaudited*





For the three months ended
For the nine months ended

August 31 2022
August 31 2021
August 31 2022
August 31 2021

$
$
$
$
Operating Activities




Net earnings
10,580

10,039

28,239

27,784

Adjustments for:




Depreciation and amortization of:




Property, plant and equipment
636

636

1,788

1,901

Intangible assets
153

153

455

467

Right-of-use assets
1,175

1,055

3,365

3,111

Accretion expense on provision
25

11

76

33

(Decrease) increase in provision
(34
)
(76
)
428

1,224

Income taxes
4,115

3,905

10,983

10,837

Gain on disposal of property, plant and equipment
(10
)
(1
)
(45
)
(8
)
Interest expense
508

247

1,007

707

Interest on lease liabilities
152

143

430

446

Funding in (excess) deficit of pension plan expense
(15
)
63

(44
)
142

Other
(13
)
21

(38
)
(10
)

17,272

16,196

46,644

46,634






Changes in non-cash working capital items
29,012

24,168

(39,462
)
(25,824
)
Interest paid
(539
)
(287
)
(1,426
)
(1,300
)
Income taxes paid
(3,070
)
(914
)
(20,038
)
(8,278
)

25,403

22,967

(60,926
)
(35,402
)
Net Cash Flows from Operating Activities
42,675

39,163

(14,282
)
11,232






Financing Activities




Net (decrease) increase in bank loans
(5,000
)
14,000

6,000

9,000

Net (decrease) increase in banker’s acceptances
(35,000
)
(50,000
)
18,000

(12,000
)
Payment of lease liabilities
(1,282
)
(1,156
)
(3,702
)
(3,390
)
Dividend paid
-

-

(3,425
)
(4,710
)

(41,282
)
(37,156
)
16,873

(11,100
)





Investing Activities




Acquisition of property, plant and equipment
(1,002
)
(238
)
(2,914
)
(975
)
Increase in intangible assets
-

-

(40
)
(18
)
Proceeds on disposal of property, plant and equipment
10

-

45

10


(992
)
(238
)
(2,909
)
(983
)





Net cash inflow (outflow)
401

1,769

(318
)
(851
)
Cash position, beginning of period
(3,712
)
(3,724
)
(2,993
)
(1,104
)
Cash position, end of period
(3,311
)
(1,955
)
(3,311
)
(1,955
)





Cash position is comprised of:




Cash
2,279

1,726

2,279

1,726

Bank overdraft
(5,590
)
(3,681
)
(5,590
)
(3,681
)

(3,311
)
(1,955
)
(3,311
)
(1,955
)

GOODFE LLOW INC.

Consolida ted Statements of Changes in Shareholders’ Equity

For the n ine months ended August 31, 2022 and 2021

(in thousa nds of dollars)

Unaudited

Share

Retained

Total

Capital

Earnings

Balance as at November 30, 2020

9,424

111,805

121,229

Net earnings

27,784

Total comprehensive income

27,784

Transactions with owners of the Company

Dividend

(2,569)

Balance as at August 31, 2021

9,424

137,020

146,444

Balance a s at November 30, 2021

9,424

151,524

160,948

Net earni ngs

28,239

Total com prehensive income

28,239

Transactio ns with owners of the Company

Dividend

(3,425)

Balance a s at August 31, 2022

9,424

176,338

185,762

From:

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

Company Name:	Goodfellow Inc.
Stock Symbol:	GDL:CC
Market:	TSXC
Website:	goodfellowinc.com

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