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Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2024 and Declares a Dividend

GlobeNewswire - Wed Oct 9, 4:00PM CDT

DELSON, Quebec, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2024.

For the three months ended August 31, 2024, the Company reported net earnings of $5.8 million or $0.68 per share compared to net earnings of $6.2 million or $0.72 per share a year ago, while consolidated sales were $140 million compared to $139 million last year.

For the nine months ended August 31, 2024, the Company reported net earnings of $11.0 million or $1.29 per share compared to net earnings of $12.6 million or $1.47 per share a year ago, while consolidated sales were $385 million compared to $387 million last year.

In the third quarter, seasonal consumer demand remained modest, and as a result, retailers felt no urgency to increase their inventories. However, the supply chain demonstrated stability, ensuring reliable, just-in-time deliveries of building materials. These factors worked in favour of Goodfellow, particularly in its custom job lot capabilities and robust distribution network. In August 2024, Goodfellow acquired strategic hardwood processing assets located in Petersburg and Hazelton, West Virginia, USA. With an experienced staff and efficient production capabilities, the Company expects positive returns from these assets by the second quarter of 2025.

The Board of Directors declared an eligible dividend of $0.25 per share payable on November 6, 2024 to shareholders of record at the close of business on October 23, 2024. 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, 2024 and 2023
(in thousands of dollars, except per share amounts)
Unaudited    
      
 For the three months endedFor the nine months ended
 August 31
2024
August 31
2023
August 31
2024
August 31
2023
 $$$$
     
Sales 139,668139,155385,336 387,406
Expenses    
Cost of goods sold105,280 107,535294,025 301,829
Selling, administrative and general expenses25,447 22,22074,439 66,143
Net financial costs955 8021,662 1,997
 131,682 130,557370,126369,969
     
Earnings before income taxes7,9868,59815,21017,437
     
Income taxes2,236 2,4074,259 4,882
     
Total comprehensive income5,750 6,19110,951 12,555
     
     
Net earnings per share – Basic and Diluted0.680.721.291.47


GOODFELLOW INC.   
Consolidated Statements of Financial Position   
(in thousands of dollars)   
Unaudited

   
 As atAs atAs at
 August 31
2024
November 30
2023
August 31
2023
 $$$
Assets    
Current Assets   
Cash6,27328,3797,973
Trade and other receivables73,77553,67466,235
Income taxes receivable4,8496,2863,946
Inventories131,853 98,473113,346
Prepaid expenses2,101 4,2152,177
Total Current Assets218,851191,027193,677
    
Non-Current Assets   
Property, plant and equipment43,61032,76132,906
Intangible assets1,044 1,4871,644
Right-of-use assets15,818 11,35411,697
Defined benefit plan asset15,325 15,34711,829
Other assets1,343777777
Total Non-Current Assets77,140 61,72658,853
Total Assets295,991252,753252,530
    
Liabilities   
Current Liabilities   
Bank indebtedness21,636--
Trade and other payables50,04337,62037,551
Provision1,747 2,7892,253
Current portion of lease liabilities5,326 4,7324,863
Total Current Liabilities78,75245,14144,667
    
Non-Current Liabilities   
Provision- -837
Lease liabilities11,966 8,4978,867
Deferred income taxes4,1124,1123,431
Total Non-Current Liabilities16,078 12,60913,135
Total Liabilities94,830 57,75057,802
    
Shareholders’ Equity   
Share capital9,337 9,3799,388
Retained earnings191,824185,624185,340
 201,161195,003194,728
Total Liabilities and Shareholders’ Equity295,991252,753252,530


GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the three and nine months ended August 31, 2024 and August 31, 2023  
(in thousands of dollars)
Unaudited

    
For the three months endedFor the nine months ended
 

 
August 31
2024
August 31
2023
August 31
2024
August 31
2023
 $$$$
Operating Activities    
Net earnings5,7506,19110,95112,555
Adjustments for:    
     Depreciation and amortization of:    
          Property, plant and equipment1,0998562,8162,396
          Intangible assets148 151443 452
          Right-of-use assets1,266 1,1643,389 3,609
     Gain on disposal of property, plant and equipment(18)-(95)(181)
     Accretion expense on provision- 68- 204
     Provision(1,027) -(1,042) (29)
     Income taxes2,236 2,4074,259 4,882
     Interest expense519 341894 910
     Interest on lease liabilities212 146486 286
     Funding in excess (deficit) of pension plan expense(61) (69)22 (209)
     Other(19) 152(11) 13
 10,105 11,40722,112 24,888
     
Changes in non-cash working capital items17,96430,890(38,912)(1,234)
Interest paid(706)(436)(1,413)(1,176)
Income taxes recovered (paid)201(352)(2,822)(6,389)
 17,45930,102(43,147)(8,799)
Net Cash Flows from Operating Activities 27,56441,509(21,035)16,089
     
Financing Activities    
Net decrease in bank loans(6,000) ---
Net decrease in banker’s acceptances-(28,000)--
Net (decrease) increase in CORRA loans(3,000) -15,000-
Payment of lease liabilities(1,322)(1,304)(3,778)(4,096)
Redemption of shares(368)(62)(537)(332)
Dividends paid--(4,256)(4,274)
Net Cash Flows from Financing Activities (10,690) (29,366)6,429(8,702)
     
Investing Activities    
Acquisition of property, plant and equipment(10,082)(1,357)(13,982)(3,040)
Proceeds on disposal of property, plant and equipment22-412 188
Dividend from joint venture-25-25
Dissolution of the joint venture-(7)-(7)
Other assets(116)-(566) -
Net Cash Flows from Investing Activities (10,176)(1,339)(14,136)(2,834)
     
Net cash (outflow) inflow6,69810,804(28,742)4,553
Cash position, beginning of period(7,061) (2,831)28,379 3,420
Cash position, end of period(363)7,973(363)7,973
     
Cash position is comprised of    
Cash6,273 7,9736,273 7,973
Bank overdraft(6,636)-(6,636)-
 (363)7,973(363)7,973


GOODFELLOW INC. 
Consolidated Statements of Changes in Shareholders’ Equity  
For the nine months ended August 31, 2024 and August 31, 2023 
(in thousands of dollars)
Unaudited
 
  
 Share
Capital
Retained
Earnings
Total
         $$$
    
Balance as at November 30, 20229,419177,360186,779
    
Net earnings-12,55512,555
    
Total comprehensive income-12,55512,555
    
Dividend-(4,274)(4,274)
Redemption of Shares(31)(301)(332)
    
Balance as at August 31, 20239,388185,340194,728
    
    
    
Balance as at November 30, 20239,379185,624195,003
    
Net earnings -10,95110,951
    
Total comprehensive income-10,95110,951
    
Dividend -(4,256)(4,256)
Redemption of Shares (42)(495)(537)
    
Balance as at August 31, 20249,337191,824201,161


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

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