GDL Goodfellow Inc

Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter ended May 31, 2022. The Company reported net earnings of $12.5 million or $1.46 per share compared to net earnings of $14.0 million or $1.63 per share a year ago. Consolidated sales for the three months ended May 31, 2022 were $184.9 million compared to $185.5 million last year.

For the six months ended May 31, 2022, the Company reported net earnings of $17.7 million or $2.06 per share compared to net earnings of $17.7 million or $2.07 per share a year ago. Consolidated sales were $314.3 million compared to $305.0 million last year.

Following the unanticipated high return in the first quarter, Goodfellow delivered a strong second quarter through a well diversified offering of wood products and services, and by meeting the needs of customers. The Company also successfully navigated looming economic issues and signs of supply catching up with demand. Going forward, close attention will be paid to inflation and consumer behaviour, as well as overhead expenses and inventory levels.

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 six months ended May 31, 2022 and 2021
(in thousands of dollars, except per share amounts)
Unaudited
	For the three months ended				For the six months ended
	May 312022		May 312021		May 312022		May 312021
	$		$		$		$
Sales	184,947		185,525		314,312		304,958
Expenses
Cost of goods sold	143,745		142,187		245,001		236,179
Selling, administrative and general expenses	22,900		23,073		43,338		42,712
Net financial costs	882		822		1,446		1,390
	167,527		166,082		289,785		280,281
Earnings before income taxes	17,420		19,443		24,527		24,677
Income taxes	4,878		5,467		6,868		6,932
Total comprehensive income	12,542		13,976		17,659		17,745
Net earnings per share – Basic and Diluted	1.46		1.63		2.06		2.07

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)Unaudited
	As at		As at		As at
	May 312022		November 302021		May 312021
	$		$		$
Assets
Current Assets
Cash	2,608		4,253		2,534
Trade and other receivables	101,654		63,246		107,788
Income taxes receivable	1,078		-		-
Inventories	141,126		109,787		115,285
Prepaid expenses	9,451		4,189		5,910
Total Current Assets	255,917		181,475		231,517
Non-Current Assets
Property, plant and equipment	30,782		30,022		30,617
Intangible assets	2,388		2,650		2,942
Right-of-use assets	13,663		12,262		13,020
Defined benefit plan asset	10,426		10,397		1,919
Other assets	802		785		785
Total Non-Current Assets	58,061		56,116		49,283
Total Assets	313,978		237,591		280,800
Liabilities
Current Liabilities
Bank indebtedness	72,320		9,246		63,258
Trade and other payables	44,322		37,897		54,938
Income taxes payable	-		9,022		4,427
Provision	405		2,147		2,795
Current portion of lease liabilities	4,605		4,256		4,241
Total Current Liabilities	121,652		62,568		129,659
Non-Current Liabilities
Provision	2,255		-		-
Lease liabilities	11,738		10,924		11,904
Deferred income taxes	3,151		3,151		1,597
Defined benefit plan obligation	-		-		1,235
Total Non-Current Liabilities	17,144		14,075		14,736
Total Liabilities	138,796		76,643		144,395
Shareholders’ Equity
Share capital	9,424		9,424		9,424
Retained earnings	165,758		151,524		126,981
	175,182		160,948		136,405
Total Liabilities and Shareholders’ Equity	313,978		237,591		280,800

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and six months ended May 31, 2022 and 2021
(in thousands of dollars)Unaudited
	For the three months ended				For the six months ended
	May 312022		May 312021		May 312022		May 312021
	$		$		$		$
Operating Activities
Net earnings	12,542		13,976		17,659		17,745
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	577		638		1,152		1,265
Intangible assets	152		153		302		314
Right-of-use assets	1,140		1,043		2,190		2,056
Accretion expense on provision	26		11		51		22
Increase in provision	462		1,300		462		1,300
Income taxes	4,878		5,467		6,868		6,932
(Gain) Loss on disposal of property, plant and equipment	(10	)	1		(35	)	(7	)
Interest expense	385		312		499		460
Interest on lease liabilities	147		149		278		303
Funding in (excess) deficit of pension plan expense	(15	)	60		(29	)	79
Other	(24	)	(26	)	(25	)	(31	)
	20,260		23,084		29,372		30,438
Changes in non-cash working capital items	(32,520	)	(47,024	)	(68,474	)	(49,992	)
Interest paid	(617	)	(696	)	(887	)	(1,013	)
Income taxes paid	(3,277	)	(961	)	(16,968	)	(7,364	)
	(36,414	)	(48,681	)	(86,329	)	(58,369	)
Net Cash Flows from Operating Activities	(16,154	)	(25,597	)	(56,957	)	(27,931	)
Financing Activities
Net (decrease) increase in bank loans	-		(7,000	)	11,000		(5,000	)
Net increase in banker’s acceptances	32,000		35,000		53,000		38,000
Payment of lease liabilities	(1,233	)	(1,118	)	(2,420	)	(2,234	)
Dividend paid	(3,425	)	(2,569	)	(3,425	)	(4,710	)
	27,342		24,313		58,155		26,056
Investing Activities
Acquisition of property, plant and equipment	(1,468	)	(549	)	(1,912	)	(737	)
Increase in intangible assets	(40	)	(18	)	(40	)	(18	)
Proceeds on disposal of property, plant and equipment	10		10		35		10
	(1,498	)	(557	)	(1,917	)	(745	)
Net cash inflow (outflow)	9,690		(1,841	)	(719	)	(2,620	)
Cash position, beginning of period	(13,402	)	(1,883	)	(2,993	)	(1,104	)
Cash position, end of period	(3,712	)	(3,724	)	(3,712	)	(3,724	)
Cash position is comprised of:
Cash	2,608		2,534		2,608		2,534
Bank overdraft	(6,320	)	(6,258	)	(6,320	)	(6,258	)
	(3,712	)	(3,724	)	(3,712	)	(3,724	)

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the six months ended May 31, 2022 and 2021
(in thousands of dollars)
Unaudited
	Share Capital		Retained Earnings		Total
	$		$		$
Balance as at November 30, 2020	9,424		111,805		121,229
Net earnings	-		17,745		17,745
Total comprehensive income	-		17,745		17,745
Transactions with owners of the Company
Dividend	-		(2,569	)	(2,569	)
Balance as at May 31, 2021	9,424		126,981		136,405
Balance as at November 30, 2021	9,424		151,524		160,948
Net earnings	-		17,659		17,659
Total comprehensive income	-		17,659		17,659
Transactions with owners of the Company
Dividend	-		(3,425	)	(3,425	)
Balance as at May 31, 2022	9,424		165,758		175,182

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