Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2023 and Declares Dividend
04 Octubre 2023 - 4:00PM
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 ended |
For the nine months ended |
|
August 312023 |
August 31 2022 |
August 312023 |
August 31 2022 |
|
$ |
$ |
$ |
$ |
|
|
|
|
|
Sales |
139,155 |
167,574 |
387,406 |
481,886 |
Expenses |
|
|
|
|
Cost of goods sold |
107,535 |
129,715 |
301,829 |
374,716 |
Selling, administrative and general expenses |
22,220 |
22,126 |
66,143 |
65,464 |
Net financial costs |
802 |
1,038 |
1,997 |
2,484 |
|
130,557 |
152,879 |
369,969 |
442,664 |
|
|
|
|
|
Earnings
before income taxes |
8,598 |
14,695 |
17,437 |
39,222 |
|
|
|
|
|
Income
taxes |
2,407 |
4,115 |
4,882 |
10,983 |
|
|
|
|
|
Total comprehensive income |
6,191 |
10,580 |
12,555 |
28,239 |
|
|
|
|
|
|
|
|
|
|
Net earnings per share – Basic and Diluted |
0.72 |
1.24 |
1.47 |
3.30 |
GOODFELLOW INC. |
Consolidated Statements of Financial
Position |
(in thousands of dollars) |
Unaudited |
|
|
|
|
|
As at |
As at |
As at |
|
August 31 2023 |
November 302022 |
August 31 2022 |
|
$ |
$ |
$ |
Assets |
|
|
|
Current Assets |
|
|
|
Cash |
7,973 |
3,420 |
2,279 |
Trade and other receivables |
66,235 |
64,423 |
76,201 |
Income taxes receivable |
3,946 |
2,439 |
33 |
Inventories |
113,346 |
112,294 |
142,082 |
Prepaid expenses |
2,177 |
2,555 |
3,237 |
Total Current Assets |
193,677 |
185,131 |
223,832 |
|
|
|
|
Non-Current Assets |
|
|
|
Property, plant and equipment |
32,906 |
32,269 |
31,148 |
Intangible assets |
1,644 |
2,096 |
2,235 |
Right-of-use assets |
11,697 |
14,999 |
14,614 |
Defined benefit plan asset |
11,829 |
11,620 |
10,441 |
Other assets |
777 |
802 |
802 |
Total
Non-Current Assets |
58,853 |
61,786 |
59,240 |
Total
Assets |
252,530 |
246,917 |
283,072 |
|
|
|
|
Liabilities |
|
|
|
Current Liabilities |
|
|
|
Bank indebtedness |
- |
- |
31,590 |
Trade and other payables |
37,551 |
36,286 |
42,744 |
Provision |
2,253 |
2,281 |
370 |
Current portion of lease liabilities |
4,863 |
4,969 |
4,836 |
Total Current Liabilities |
44,667 |
43,536 |
79,540 |
|
|
|
|
Non-Current Liabilities |
|
|
|
Provision |
837 |
634 |
2,281 |
Lease liabilities |
8,867 |
12,537 |
12,338 |
Deferred income taxes |
3,431 |
3,431 |
3,151 |
Total
Non-Current Liabilities |
13,135 |
16,602 |
17,770 |
Total
Liabilities |
57,802 |
60,138 |
97,310 |
|
|
|
|
Shareholders’ Equity |
|
|
|
Share capital |
9,388 |
9,419 |
9,424 |
Retained earnings |
185,340 |
177,360 |
176,338 |
|
194,728 |
186,779 |
185,762 |
Total
Liabilities and Shareholders’ Equity |
252,530 |
246,917 |
283,072 |
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 ended |
For the nine months ended |
|
August 312023 |
August 312022 |
August 312023 |
August 312022 |
|
|
|
$ |
$ |
$ |
$ |
Operating
Activities |
|
|
|
|
Net earnings |
6,191 |
10,580 |
12,555 |
28,239 |
Adjustments for: |
|
|
|
|
|
Depreciation and amortization of: |
|
|
|
|
|
|
Property, plant and equipment |
856 |
636 |
2,396 |
1,788 |
|
|
Intangible assets |
151 |
153 |
452 |
455 |
|
|
Right-of-use assets |
1,164 |
1,175 |
3,609 |
3,365 |
Gain on disposal of property, plant and equipment |
- |
(10) |
(181) |
(45) |
Accretion expense on provision |
68 |
25 |
204 |
76 |
Provision |
- |
(34) |
(29) |
428 |
Income taxes |
2,407 |
4,115 |
4,882 |
10,983 |
Interest expense |
341 |
508 |
910 |
1,007 |
Interest on lease liabilities |
146 |
152 |
286 |
430 |
Funding in excess of pension plan expense |
(69) |
(15) |
(209) |
(44) |
Other |
152 |
(13) |
13 |
(38) |
|
11,407 |
17,272 |
24,888 |
46,644 |
|
|
|
|
|
Changes in non-cash working capital items |
30,890 |
29,012 |
(1,234) |
(39,462) |
Interest paid |
(436) |
(539) |
(1,176) |
(1,426) |
Income taxes paid |
(352) |
(3,070) |
(6,389) |
(20,038) |
|
30,102 |
25,403 |
(8,799) |
(60,926) |
Net Cash Flows from Operating Activities |
41,509 |
42,675 |
16,089 |
(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 |
- |
10 |
188 |
45 |
Dividend from joint venture |
25 |
- |
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) |
10,804 |
401 |
4,553 |
(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: |
|
|
|
|
Cash |
7,973 |
2,279 |
7,973 |
2,279 |
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, 2021 |
9,424 |
151,524 |
160,948 |
|
|
|
|
Net earnings |
- |
28,239 |
28,239 |
|
|
|
|
Total comprehensive
income |
- |
28,239 |
28,239 |
|
|
|
|
Dividend |
- |
(3,425) |
(3,425) |
|
|
|
|
Balance as at August
31, 2022 |
9,424 |
176,338 |
185,762 |
|
|
|
|
Balance as at November 30, 2022 |
9,419 |
177,360 |
186,779 |
|
|
|
|
Net earnings |
- |
12,555 |
12,555 |
|
|
|
|
Total
comprehensive income |
- |
12,555 |
12,555 |
|
|
|
|
Dividend |
- |
(4,274) |
(4,274) |
Redemption of Shares |
(31) |
(301) |
(332) |
|
|
|
|
Balance as at
August 31, 2023 |
9,388 |
185,340 |
194,728 |
From: |
Goodfellow Inc. |
|
Patrick Goodfellow |
|
President and CEO |
|
T: 450 635-6511 |
|
F: 450 635-3730 |
|
info@goodfellowinc.com |
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