DELSON, Quebec, April 11, 2024 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the Company or Goodfellow) announced today its financial results for the first quarter ended February 29, 2024.
The Company reported a net loss of $108 thousand or $0.01 per share compared to a net loss of $211 thousand or $0.02 per share a year ago. Consolidated sales for the three months ended February 29, 2024 were $105.3 million compared to $105.9 million last year.
Though under pressure from lingering inflation and cautious consumer sentiment, Goodfellow achieved a comparable overall financial performance in the first quarter thanks to its diversified product offering, expertise in value-added services, and efficient distribution systems, as well as its strong, debt-free balance sheet. With uncertain economic conditions ahead, the Company will continue to protect margins and seize opportunities for growth with new and existing customers.
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 months ended February 29, 2024 and February 28, 2023 | ||||
| (in thousands of dollars, except per share amounts)Unaudited | ||||
| For the three months ended | ||||
| February 292024 | February 282023 | |||
| $ | $ | |||
| Sales | 105,334 | 105,925 | ||
| Expenses | ||||
| Cost of goods sold | 82,546 | 84,260 | ||
| Selling, administrative and general expenses | 22,884 | 21,684 | ||
| Net financial costs | 55 | 274 | ||
| 105,485 | 106,218 | |||
| Loss before income taxes | (151 | ) | (293 | ) |
| Income taxes | (43 | ) | (82 | ) |
| Total comprehensive loss | (108 | ) | (211 | ) |
| Net loss per share “ Basic and Diluted | (0.01 | ) | (0.02 | ) |
| GOODFELLOW INC. | ||||||
| Consolidated Statements of Financial Position | ||||||
| (in thousands of dollars) | ||||||
| Unaudited | ||||||
| As at | As at | As at | ||||
| February 292024 | November 302023 | February 282023 | ||||
| $ | $ | $ | ||||
| Assets | ||||||
| Current Assets | ||||||
| Cash | 4,397 | 28,379 | 1,958 | |||
| Trade and other receivables | 69,672 | 53,674 | 64,295 | |||
| Income taxes receivable | 8,254 | 6,286 | 5,539 | |||
| Inventories | 122,802 | 98,473 | 130,416 | |||
| Prepaid expenses | 3,771 | 4,215 | 3,663 | |||
| Total Current Assets | 208,896 | 191,027 | 205,871 | |||
| Non-Current Assets | ||||||
| Property, plant and equipment | 33,208 | 32,761 | 32,368 | |||
| Intangible assets | 1,340 | 1,487 | 1,945 | |||
| Right-of-use assets | 10,586 | 11,354 | 13,905 | |||
| Defined benefit plan asset | 15,453 | 15,347 | 11,690 | |||
| Other assets | 777 | 777 | 802 | |||
| Total Non-Current Assets | 61,364 | 61,726 | 60,710 | |||
| Total Assets | 270,260 | 252,753 | 266,581 | |||
| Liabilities | ||||||
| Current Liabilities | ||||||
| Bank indebtedness | 11,311 | - | 18,636 | |||
| Trade and other payables | 44,986 | 37,620 | 39,070 | |||
| Provision | 2,778 | 2,789 | 2,259 | |||
| Dividends payable | 4,256 | - | 4,274 | |||
| Current portion of lease liabilities | 4,419 | 4,732 | 4,763 | |||
| Total Current Liabilities | 67,750 | 45,141 | 69,002 | |||
| Non-Current Liabilities | ||||||
| Provision | - | - | 702 | |||
| Lease liabilities | 7,878 | 8,497 | 11,272 | |||
| Deferred income taxes | 4,112 | 4,112 | 3,431 | |||
| Total Non-Current Liabilities | 11,990 | 12,609 | 15,405 | |||
| Total Liabilities | 79,740 | 57,750 | 84,407 | |||
| Shareholders' Equity | ||||||
| Share capital | 9,370 | 9,379 | 9,408 | |||
| Retained earnings | 181,150 | 185,624 | 172,766 | |||
| 190,520 | 195,003 | 182,174 | ||||
| Total Liabilities and Shareholders' Equity | 270,260 | 252,753 | 266,581 | |||
| GOODFELLOW INC. | |||||
| Consolidated Statements of Cash Flows | |||||
| For the three months ended February 29, 2024 and February 28, 2023 | |||||
| (in thousands of dollars) Unaudited | |||||
| For the three months ended | |||||
| February 282024 | February 282023 | ||||
| $ | $ | ||||
| Operating Activities | |||||
| Net loss | (108 | ) | (211 | ) | |
| Adjustments for: | |||||
| Depreciation and amortization of: | |||||
| Property, plant and equipment | 835 | 745 | |||
| Intangible assets | 147 | 151 | |||
| Right-of-use assets | 1,034 | 1,257 | |||
| Gain on disposal of property, plant and equipment | (8 | ) | (10 | ) | |
| Accretion expense on provision | - | 68 | |||
| Provision | (11 | ) | (22 | ) | |
| Income taxes | (43 | ) | (82 | ) | |
| Interest expense | 45 | 88 | |||
| Interest on lease liabilities | 137 | (18 | ) | ||
| Funding in deficit of pension plan expense | (106 | ) | (70 | ) | |
| Other | 1 | (129 | ) | ||
| 1,923 | 1,767 | ||||
| Changes in non-cash working capital items | (32,510 | ) | (16,280 | ) | |
| Interest paid | (189 | ) | (180 | ) | |
| Income taxes paid | (1,925 | ) | (3,018 | ) | |
| (34,624 | ) | (19,406 | ) | ||
| Net Cash Flows from Operating Activities | (32,701 | ) | (17,639 | ) | |
| Financing Activities | |||||
| Net increase in bank indebtedness | - | 2,000 | |||
| Net increase in banker's acceptances | - | 5,000 | |||
| Payment of lease liabilities | (1,199 | ) | (1,505 | ) | |
| Redemption of shares | (119 | ) | (120 | ) | |
| Net Cash Flows from Financing Activities | (1,318 | ) | 5,375 | ||
| Investing Activities | |||||
| Acquisition of property, plant and equipment | (1,282 | ) | (844 | ) | |
| Proceeds on disposal of property, plant and equipment | 8 | 10 | |||
| Other assets | - | - | |||
| Net Cash Flows from Investing Activities | (1,274 | ) | (834 | ) | |
| Net cash outflow | (35,293 | ) | (13,098 | ) | |
| Cash, beginning of period | 28,379 | 3,420 | |||
| Cash, end of period | (6,914 | ) | (9,678 | ) | |
| Cash position is comprised of: | |||||
| Cash | 4,397 | 1,958 | |||
| Bank overdraft | (11,311 | ) | (11,636 | ) | |
| (6,914 | ) | (9,678 | ) | ||
| GOODFELLOW INC. | ||||||
| Consolidated Statements of Changes in Shareholders' Equity | ||||||
| For the three months ended February 29, 2024 and February 28, 2023 | ||||||
| (in thousands of dollars) Unaudited | ||||||
| ShareCapital | RetainedEarnings | Total | ||||
| $ | $ | $ | ||||
| Balance as at November 30, 2022 | 9,419 | 177,360 | 186,779 | |||
| Net loss | - | (211 | ) | (211 | ) | |
| Total comprehensive loss | - | (211 | ) | (211 | ) | |
| Dividend | - | (4,274 | ) | (4,274 | ) | |
| Redemption of Shares | (11 | ) | (109 | ) | (120 | ) |
| Balance as at February 28, 2023 | 9,408 | 172,766 | 182,174 | |||
| Balance as at November 30, 2023 | 9,379 | 185,624 | 195,003 | |||
| Net loss | - | (108 | ) | (108 | ) | |
| Total comprehensive loss | - | (108 | ) | (108 | ) | |
| Dividend | - | (4,256 | ) | (4,256 | ) | |
| Redemption of Shares | (9 | ) | (110 | ) | (119 | ) |
| Balance as at February 29, 2024 | 9,370 | 181,150 | 190,520 |
Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com