GDL Goodfellow Inc

Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended February 28, 2021. The Company reported a net income of $3.8 million or $0.44 per share compared to a net loss of $(2.1) million or $(0.24) per share a year ago.

Consolidated sales for the three months ended February 28, 2021 were $119.4 million compared to $88.9 million last year. Sales in Canada increased 38% compared to the same period a year ago, while sales in the United States increased 6% and export sales increased 24%. Selling, administrative and general expenses increased overall by $0.1 million.

The evolution of COVID-19 remains unpredictable and due to the rise of new variant infection cases worldwide it makes estimating the end of the pandemic impossible at this date. The first-quarter results of fiscal 2021 were characterized by continued pandemic realities and their drastic effects on supply and demand. The Company performed very well and was able to capitalize on surging demand in commodities and seasonal products. The Company also positioned itself to succeed across the country with a firm commitment to maintaining needed inventory levels and ensuring superior customer service from coast to coast.

Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.

GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the three months ended February 28, 2021 and February 29, 2020
(in thousands of dollars, except per share amounts)
Unaudited
	For the three months ended
	February 282021			February 29 2020
	$			$
Sales	119,433			88,856
Expenses (Income)
Cost of goods sold	93,992			71,480
Selling, administrative and general expenses	19,647			19,518
Gain on disposal of property, plant and equipment	(8		)	(15	)
Net financial costs	568			734
	114,199			91,717
Earnings (loss) before income taxes	5,234			(2,861	)
Income taxes	1,465			(801	)
Total comprehensive income (loss)	3,769			(2,060	)
Net earnings (loss) per share – Basic and Diluted	0.44			(0.24	)

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)Unaudited
	As at	As at	As at
	February 282021	November 302020	February 292020
	$	$	$
Assets
Current Assets
Cash	4,045	3,466	2,089
Trade and other receivables	70,143	76,093	54,082
Income taxes receivable	79	-	1,096
Inventories	95,798	84,740	99,300
Prepaid expenses	4,339	2,584	4,250
Total Current Assets	174,404	166,883	160,817
Non-Current Assets
Property, plant and equipment	30,709	31,148	32,517
Intangible assets	3,077	3,238	3,746
Right-of-use assets	13,629	14,324	16,304
Defined benefit plan asset	1,933	1,945	2,210
Other assets	785	785	778
Total Non-Current Assets	50,133	51,440	55,555
Total Assets	224,537	218,323	216,372
Liabilities
Current liabilities
Bank indebtedness	34,928	28,570	47,845
Trade and other payables	43,494	39,614	35,549
Income taxes payable	-	4,859	-
Provision	1,484	1,473	1,478
Dividend payable	2,569	2,141	856
Current portion of lease liabilities	4,301	4,315	4,254
Total Current Liabilities	86,776	80,972	89,982
Non-Current Liabilities
Lease liabilities	12,546	13,343	15,547
Deferred income taxes	1,597	1,597	2,269
Defined benefit plan obligation	1,189	1,182	649
Total Non-Current Liabilities	15,332	16,122	18,465
Total Liabilities	102,108	97,094	108,447
Shareholders’ Equity
Share capital	9,424	9,424	9,424
Retained earnings	113,005	111,805	98,501
	122,429	121,229	107,925
Total Liabilities and Shareholders’ Equity	224,537	218,323	216,372

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 28, 2021 and February 29, 2020
(in thousands of dollars)Unaudited
	For the three months ended
	February 282021		February 292020
	$		$
Operating Activities
Net earnings (loss)	3,769		(2,060	)
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	627		651
Right-of-use assets	1,013		1,093
Intangible assets	161		181
Accretion expense on provision	11		18
Decrease in provision	-		(10	)
Income taxes	1,465		(801	)
Gain on disposal of property, plant and equipment	(8	)	(15	)
Interest expense	148		323
Interest on lease liabilities	154		179
Funding in deficit of pension plan expense	19		52
Other	(5	)	-
	7,354		(389	)
Changes in non-cash working capital items	(2,968	)	(12,616	)
Interest paid	(317	)	(348	)
Income taxes paid	(6,403	)	(1,029	)
	(9,688	)	(13,993	)
Net Cash Flows from Operating Activities	(2,334	)	(14,382	)
Financing Activities
Proceeds from borrowings under bank loans	41,000		14,000
Repayment of borrowings under bank loans	(39,000	)	(17,000	)
Proceeds from borrowings under banker’s acceptances	19,000		15,000
Repayment of borrowings under banker’s acceptances	(16,000	)	(2,000	)
Payment of lease liabilities	(1,116	)	(1,333	)
Dividend paid	(2,141	)	(856	)
	1,743		7,811
Investing Activities
Acquisition of property, plant and equipment	(188	)	(361	)
Proceeds on disposal of property, plant and equipment	-		16
	(188	)	(345	)
Net cash outflow	(779	)	(6,916	)
Cash position, beginning of period	(1,104	)	1,160
Cash position, end of period	(1,883	)	(5,756	)
Cash position is comprised of:
Cash	4,045		2,089
Bank overdraft	(5,928	)	(7,845	)
	(1,883	)	(5,756	)



GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended February 28, 2021 and February 29, 2020
(in thousands of dollars)Unaudited
	Share Capital		Retained Earnings		Total
	$		$		$
Balance as at November 30, 2019	9,424		103,984		113,408
IFRS 16 adoption adjustment, net of taxes of $940	-		(2,567)		(2,567)
Balance as at December 1, 2019	9,424		101,417		110,841
Net loss	-		(2,060)		(2,060)
Total comprehensive loss	-		(2,060)		(2,060)
Transactions with owners of the Company
Dividend	-		(856)		(856)
Balance as at February 29, 2020	9,424		98,501		107,925
Balance as at November 30, 2020	9,424		111,805		121,229
Net earnings	-		3,769		3,769
Total comprehensive income	-		3,769		3,769
Transactions with owners of the Company
Dividend	-		(2,569)		(2,569)
Balance as at February 28, 2021	9,424		113,005		122,429

From:	Goodfellow Inc.
	Patrick Goodfellow
	President and CEO
	Tel: 450 635-6511
	Fax: 450 635-3730
	Internet: info@goodfellowinc.com