DELSON, Quebec, Oct. 04, 2023 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter of fiscal year 2023.

For the three months ended August 31, 2023, the Company reported net earnings of $6.2 million or $0.72 per share compared to net earnings of $10.6 million or $1.24 per share a year ago, while consolidated sales were $139.2 million compared to $167.6 million last year.

For the nine months ended August 31, 2023, the Company reported net earnings of $12.6 million or $1.47 per share compared to net earnings of $28.2 million or $3.30 per share a year ago, while consolidated sales were $387.4 million compared to $481.9 million last year.

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 $0.50 per share payable on November 2, 2023 to shareholders of record at the close of business on October 19, 2023. 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, 2023 and 2022
(in thousands of dollars, except per share amounts)
Unaudited
     
 For the three months endedFor the nine months ended
 August 31
2023		August 31
2022		August 31
2023		August 31
2022
 $$$$
     
Sales 139,155 167,574387,406 481,886
Expenses    
Cost of goods sold107,535 129,715301,829 374,716
Selling, administrative and general expenses22,220 22,12666,14365,464
Net financial costs802 1,0381,997 2,484
 130,557 152,879369,969 442,664
     
Earnings before income taxes8,598 14,69517,437 39,222
     
Income taxes2,407 4,1154,882 10,983
     
Total comprehensive income6,191 10,58012,555 28,239
     
     
Net earnings per share – Basic and Diluted0.721.241.473.30


GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
    
 As atAs atAs at
 August 31
2023		November 30
2022		August 31
2022
 $$$
Assets    
Current Assets   
Cash7,973 3,4202,279
Trade and other receivables66,235 64,42376,201
Income taxes receivable3,946 2,43933
Inventories113,346 112,294142,082
Prepaid expenses2,177 2,5553,237
Total Current Assets193,677 185,131223,832
    
Non-Current Assets   
Property, plant and equipment32,906 32,26931,148
Intangible assets1,644 2,0962,235
Right-of-use assets 11,697 14,99914,614
Defined benefit plan asset11,829 11,62010,441
Other assets777802802
Total Non-Current Assets58,853 61,78659,240
Total Assets252,530 246,917283,072
    
Liabilities   
Current Liabilities   
Bank indebtedness- -31,590
Trade and other payables37,551 36,28642,744
Provision2,253 2,281370
Current portion of lease liabilities4,863 4,9694,836
Total Current Liabilities44,66743,53679,540
    
Non-Current Liabilities   
Provision837 6342,281
Lease liabilities8,867 12,53712,338
Deferred income taxes3,4313,4313,151
Total Non-Current Liabilities13,135 16,60217,770
Total Liabilities57,802 60,13897,310
    
Shareholders’ Equity   
Share capital9,388 9,4199,424
Retained earnings185,340 177,360176,338
 194,728 186,779185,762
Total Liabilities and Shareholders’ Equity252,530 246,917283,072


GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and nine months ended August 31, 2023 and 2022
(in thousands of dollars)
Unaudited
 
For the three months endedFor the nine months ended
 August 31
2023		August 31
2022		August 31
2023		August 31
2022
   $$$$
Operating Activities
    
Net earnings6,19110,58012,55528,239
Adjustments for:    
 Depreciation and amortization of:    
  Property, plant and equipment8566362,3961,788
  Intangible assets151153452455
  Right-of-use assets1,1641,1753,6093,365
Gain on disposal of property, plant and equipment-(10)(181)(45)
Accretion expense on provision682520476
Provision-(34)(29)428
Income taxes2,4074,1154,88210,983
Interest expense3415089101,007
Interest on lease liabilities146152286430
Funding in excess of pension plan expense(69)(15)(209)(44)
Other152(13)13(38)
 11,40717,27224,88846,644
     
Changes in non-cash working capital items30,89029,012(1,234)(39,462)
Interest paid(436)(539)(1,176)(1,426)
Income taxes paid(352)(3,070)(6,389)(20,038)
 30,10225,403(8,799)(60,926)
Net Cash Flows from Operating Activities
41,50942,67516,089(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-1018845
Dividend from joint venture25-25-
Dissolution of the joint venture(7)-(7)-
Net Cash Flows from Investing Activities
(1,339)(992)(2,834)(2,909)
     
Net cash inflow (outflow)10,8044014,553(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:    
Cash7,9732,2797,9732,279
Bank overdraft-(5,590)-(5,590)
 7,973(3,311)7,973(3,311)


GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the nine months ended August 31, 2023 and 2022
(in thousands of dollars)
Unaudited
  
 Share
Capital		Retained
Earnings		Total
 $$$
    
Balance as at November 30, 20219,424151,524160,948
    
Net earnings-28,23928,239
    
Total comprehensive income-28,23928,239
    
Dividend-(3,425)(3,425)
    
Balance as at August 31, 20229,424176,338185,762
    
Balance as at November 30, 20229,419 177,360 186,779
    
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


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

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Source: Goodfellow Inc.

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