Goodfellow Reports Its Results for the First Quarter Ended February 28, 2022

Goodfellow Inc.

DELSON, Quebec, April 13, 2022 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the first quarter ended February 28, 2022. The Company reported net earnings of $5.1 million or $0.60 per share compared to net earnings of $3.8 million or $0.44 per share a year ago.

Consolidated sales for the three months ended February 28, 2022 were $129.4 million compared to $119.4 million last year. Sales in Canada increased 8% compared to the same period a year ago, while sales in the United States increased 21% and export sales decreased 8% compared to the same period a year ago. Selling, administrative and general expenses increased overall by $0.8 million.

Demand from residential, manufacturing, retail and industrial sectors delivered for Goodfellow a strong start to fiscal 2022. The uncharacteristic demand for this period is carried over from a busy Q4 2021 and is set against uncertain and disrupted global markets. Despite these conditions, the Company performed very well by focusing on the diversity of its offering, smart logistics solutions and increased customer communications.

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 28, 2022 and 2021
(in thousands of dollars, except per share amounts)
Unaudited
	For the three months ended
	February 28 2022	February 28 2021
	$	$
Sales	129,365	119,433
Expenses
Cost of goods sold	101,256	93,992
Selling, administrative and general expenses	20,438	19,639
Net financial costs	564	568
	122,258	114,199
Earnings before income taxes	7,107	5,234
Income taxes	1,990	1,465
Total comprehensive income	5,117	3,769
Net earnings per share – Basic and Diluted	0.60	0.44

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars) Unaudited
	As at	As at	As at
	February 28 2022	November 30 2021	February 28 2021
	$	$	$
Assets
Current Assets
Cash	3,038	4,253	4,045
Trade and other receivables	71,104	63,246	70,143
Income taxes receivable	2,679	-	79
Inventories	129,308	109,787	95,798
Prepaid expenses	12,482	4,189	4,339
Total Current Assets	218,611	181,475	174,404
Non-Current Assets
Property, plant and equipment	29,891	30,022	30,709
Intangible assets	2,500	2,650	3,077
Right-of-use assets	13,370	12,262	13,629
Defined benefit plan asset	10,411	10,397	1,933
Other assets	785	785	785
Total Non-Current Assets	56,957	56,116	50,133
Total Assets	275,568	237,591	224,537
Liabilities
Current Liabilities
Bank indebtedness	50,440	9,246	34,928
Trade and other payables	37,590	37,897	43,494
Income taxes payable	-	9,022	-
Provision	2,172	2,147	1,484
Dividend payable	3,425	-	2,569
Current portion of lease liabilities	4,395	4,256	4,301
Total Current Liabilities	98,022	62,568	86,776
Non-Current Liabilities
Lease liabilities	11,755	10,924	12,546
Deferred income taxes	3,151	3,151	1,597
Defined benefit plan obligation	-	-	1,189
Total Non-Current Liabilities	14,906	14,075	15,332
Total Liabilities	112,928	76,643	102,108
Shareholders’ Equity
Share capital	9,424	9,424	9,424
Retained earnings	153,216	151,524	113,005
	162,640	160,948	122,429
Total Liabilities and Shareholders’ Equity	275,568	237,591	224,537

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 28, 2022 and 2021
(in thousands of dollars) Unaudited
	For the three months ended
	February 28 2022	February 28 2021
	$	$
Operating Activities
Net earnings	5,117	3,769
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	575	627
Intangible assets	150	161
Right-of-use assets	1,050	1,013
Accretion expense on provision	25	11
Income taxes	1,990	1,465
Gain on disposal of property, plant and equipment	(25)	(8)
Interest expense	114	148
Interest on lease liabilities	131	154
Funding in (excess) deficit of pension plan expense	(14)	19
Other	(1)	(5)
	9,112	7,354
Changes in non-cash working capital items	(35,954)	(2,968)
Interest paid	(270)	(317)
Income taxes paid	(13,691)	(6,403)
	(49,915)	(9,688)
Net Cash Flows from Operating Activities	(40,803)	(2,334)
Financing Activities
Net increase in bank loans	11,000	2,000
Net increase in banker’s acceptances	21,000	3,000
Payment of lease liabilities	(1,187)	(1,116)
Dividend paid	-	(2,141)
	30,813	1,743
Investing Activities
Acquisition of property, plant and equipment	(444)	(188)
Proceeds on disposal of property, plant and equipment	25	-
	(419)	(188)
Net cash outflow	(10,409)	(779)
Cash position, beginning of period	(2,993)	(1,104)
Cash position, end of period	(13,402)	(1,883)
Cash position is comprised of:
Cash	3,038	4,045
Bank overdraft	(16,440)	(5,928)
	(13,402)	(1,883)

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended February 28, 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	-	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
Balance as at November 30, 2021	9,424	151,524	160,948
Net earnings	-	5,117	5,117
Total comprehensive income	-	5,117	5,117
Transactions with owners of the Company
Dividend	-	(3,425)	(3,425)
Balance as at February 28, 2022	9,424	153,216	162,640

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