Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2024 and Declares a Dividend
DELSON, Quebec, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the third quarter ended August 31, 2024.
For the three months ended August 31, 2024, the Company reported net earnings of $5.8 million or $0.68 per share compared to net earnings of $6.2 million or $0.72 per share a year ago, while consolidated sales were $140 million compared to $139 million last year.
For the nine months ended August 31, 2024, the Company reported net earnings of $11.0 million or $1.29 per share compared to net earnings of $12.6 million or $1.47 per share a year ago, while consolidated sales were $385 million compared to $387 million last year.
In the third quarter, seasonal consumer demand remained modest, and as a result, retailers felt no urgency to increase their inventories. However, the supply chain demonstrated stability, ensuring reliable, just-in-time deliveries of building materials. These factors worked in favour of Goodfellow, particularly in its custom job lot capabilities and robust distribution network. In August 2024, Goodfellow acquired strategic hardwood processing assets located in Petersburg and Hazelton, West Virginia, USA. With an experienced staff and efficient production capabilities, the Company expects positive returns from these assets by the second quarter of 2025.
The Board of Directors declared an eligible dividend of $0.25 per share payable on November 6, 2024 to shareholders of record at the close of business on October 23, 2024. 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, 2024 and 2023 | |||||
(in thousands of dollars, except per share amounts) | |||||
Unaudited | |||||
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| For the three months ended | For the nine months ended | |||
| August 31 | August 31 | August 31 | August 31 | |
| $ | $ | $ | $ | |
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Sales | 139,668 | 139,155 | 385,336 | 387,406 | |
Expenses |
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Cost of goods sold | 105,280 | 107,535 | 294,025 | 301,829 | |
Selling, administrative and general expenses | 25,447 | 22,220 | 74,439 | 66,143 | |
Net financial costs | 955 | 802 | 1,662 | 1,997 | |
| 131,682 | 130,557 | 370,126 | 369,969 | |
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Earnings before income taxes | 7,986 | 8,598 | 15,210 | 17,437 | |
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Income taxes | 2,236 | 2,407 | 4,259 | 4,882 | |
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Total comprehensive income | 5,750 | 6,191 | 10,951 | 12,555 | |
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Net earnings per share – Basic and Diluted | 0.68 | 0.72 | 1.29 | 1.47 | |
GOODFELLOW INC. |
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Consolidated Statements of Financial Position |
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(in thousands of dollars) |
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Unaudited |
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| As at | As at | As at |
| August 31 | November 30 | August 31 |
| $ | $ | $ |
Assets |
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Current Assets |
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Cash | 6,273 | 28,379 | 7,973 |
Trade and other receivables | 73,775 | 53,674 | 66,235 |
Income taxes receivable | 4,849 | 6,286 | 3,946 |
Inventories | 131,853 | 98,473 | 113,346 |
Prepaid expenses | 2,101 | 4,215 | 2,177 |
Total Current Assets | 218,851 | 191,027 | 193,677 |
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Non-Current Assets |
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Property, plant and equipment | 43,610 | 32,761 | 32,906 |
Intangible assets | 1,044 | 1,487 | 1,644 |
Right-of-use assets | 15,818 | 11,354 | 11,697 |
Defined benefit plan asset | 15,325 | 15,347 | 11,829 |
Other assets | 1,343 | 777 | 777 |
Total Non-Current Assets | 77,140 | 61,726 | 58,853 |
Total Assets | 295,991 | 252,753 | 252,530 |
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Liabilities |
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Current Liabilities |
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Bank indebtedness | 21,636 | - | - |
Trade and other payables | 50,043 | 37,620 | 37,551 |
Provision | 1,747 | 2,789 | 2,253 |
Current portion of lease liabilities | 5,326 | 4,732 | 4,863 |
Total Current Liabilities | 78,752 | 45,141 | 44,667 |
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Non-Current Liabilities |
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Provision | - | - | 837 |
Lease liabilities | 11,966 | 8,497 | 8,867 |
Deferred income taxes | 4,112 | 4,112 | 3,431 |
Total Non-Current Liabilities | 16,078 | 12,609 | 13,135 |
Total Liabilities | 94,830 | 57,750 | 57,802 |
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Shareholders’ Equity |
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Share capital | 9,337 | 9,379 | 9,388 |
Retained earnings | 191,824 | 185,624 | 185,340 |
| 201,161 | 195,003 | 194,728 |
Total Liabilities and Shareholders’ Equity | 295,991 | 252,753 | 252,530 |
GOODFELLOW INC. |
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Consolidated Statements of Cash Flows |
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For the three and nine months ended August 31, 2024 and August 31, 2023 |
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(in thousands of dollars) |
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For the three months ended | For the nine months ended | |||||||
| August 31 | August 31 | August 31 | August 31 | ||||
| $ | $ | $ | $ | ||||
Operating Activities |
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Net earnings | 5,750 | 6,191 | 10,951 | 12,555 | ||||
Adjustments for: |
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Depreciation and amortization of: |
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Property, plant and equipment | 1,099 | 856 | 2,816 | 2,396 | ||||
Intangible assets | 148 | 151 | 443 | 452 | ||||
Right-of-use assets | 1,266 | 1,164 | 3,389 | 3,609 | ||||
Gain on disposal of property, plant and equipment | (18) | - | (95) | (181) | ||||
Accretion expense on provision | - | 68 | - | 204 | ||||
Provision | (1,027) | - | (1,042) | (29) | ||||
Income taxes | 2,236 | 2,407 | 4,259 | 4,882 | ||||
Interest expense | 519 | 341 | 894 | 910 | ||||
Interest on lease liabilities | 212 | 146 | 486 | 286 | ||||
Funding in excess (deficit) of pension plan expense | (61) | (69) | 22 | (209) | ||||
Other | (19) | 152 | (11) | 13 | ||||
| 10,105 | 11,407 | 22,112 | 24,888 | ||||
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Changes in non-cash working capital items | 17,964 | 30,890 | (38,912) | (1,234) | ||||
Interest paid | (706) | (436) | (1,413) | (1,176) | ||||
Income taxes recovered (paid) | 201 | (352) | (2,822) | (6,389) | ||||
| 17,459 | 30,102 | (43,147) | (8,799) | ||||
Net Cash Flows from Operating Activities | 27,564 | 41,509 | (21,035) | 16,089 | ||||
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Financing Activities |
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Net decrease in bank loans | (6,000) | - | - | - | ||||
Net decrease in banker’s acceptances | - | (28,000) | - | - | ||||
Net (decrease) increase in CORRA loans | (3,000) | - | 15,000 | - | ||||
Payment of lease liabilities | (1,322) | (1,304) | (3,778) | (4,096) | ||||
Redemption of shares | (368) | (62) | (537) | (332) | ||||
Dividends paid | - | - | (4,256) | (4,274) | ||||
Net Cash Flows from Financing Activities | (10,690) | (29,366) | 6,429 | (8,702) | ||||
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Investing Activities |
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Acquisition of property, plant and equipment | (10,082) | (1,357) | (13,982) | (3,040) | ||||
Proceeds on disposal of property, plant and equipment | 22 | - | 412 | 188 | ||||
Dividend from joint venture | - | 25 | - | 25 | ||||
Dissolution of the joint venture | - | (7) | - | (7) | ||||
Other assets | (116) | - | (566) | - | ||||
Net Cash Flows from Investing Activities | (10,176) | (1,339) | (14,136) | (2,834) | ||||
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Net cash (outflow) inflow | 6,698 | 10,804 | (28,742) | 4,553 | ||||
Cash position, beginning of period | (7,061) | (2,831) | 28,379 | 3,420 | ||||
Cash position, end of period | (363) | 7,973 | (363) | 7,973 | ||||
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Cash position is comprised of |
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Cash | 6,273 | 7,973 | 6,273 | 7,973 | ||||
Bank overdraft | (6,636) | - | (6,636) | - | ||||
| (363) | 7,973 | (363) | 7,973 | ||||
GOODFELLOW INC. |
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Consolidated Statements of Changes in Shareholders’ Equity |
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For the nine months ended August 31, 2024 and August 31, 2023 |
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(in thousands of dollars) |
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| Share | Retained | Total |
| $ | $ | $ |
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Balance as at November 30, 2022 | 9,419 | 177,360 | 186,779 |
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Net earnings | - | 12,555 | 12,555 |
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Total comprehensive income | - | 12,555 | 12,555 |
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Dividend | - | (4,274) | (4,274) |
Redemption of Shares | (31) | (301) | (332) |
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Balance as at August 31, 2023 | 9,388 | 185,340 | 194,728 |
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Balance as at November 30, 2023 | 9,379 | 185,624 | 195,003 |
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Net earnings | - | 10,951 | 10,951 |
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Total comprehensive income | - | 10,951 | 10,951 |
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Dividend | - | (4,256) | (4,256) |
Redemption of Shares | (42) | (495) | (537) |
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Balance as at August 31, 2024 | 9,337 | 191,824 | 201,161 |
From: | Goodfellow Inc. |