DELSON, Quebec, July  06, 2023  (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter of fiscal year 2023.

For the three months ended May 31, 2023, the Company reported net earnings of $6.6 million or $0.77 per share compared to net earnings of $12.5 million or $1.46 per share a year ago, while consolidated sales were $142.3 million compared to $184.9 million last year.

For the six months ended May 31, 2023, the Company reported net earnings of $6.4 million or $0.75 per share compared to net earnings of $17.7 million or $2.06 per share a year ago, while consolidated sales were $248.3 million compared to $314.3 million last year.

Given the slowing economy and widespread market uncertainty, the decline in seasonal demand was in line with expectations. Goodfellow's experienced team has continued to provide excellent service to clients from coast to coast, while diligently managing increased overhead costs to achieve strong results. While these results are lower than last year, they represent a solid performance for the second quarter.

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, 2023 and 2022 (in thousands of dollars, except per share amounts) Unaudited   For the three months endedFor the six months endedMay 31
2023May 31
2022May 31
2023May 31
2022 $$$$ Sales 142,326184,947248,251314,312Expenses Cost of goods sold110,034143,745194,294245,001Selling, administrative and general expenses22,23922,90043,92343,338Net financial costs9218821,1951,446 133,194167,527239,412289,785 Earnings before income taxes9,13217,4208,83924,527 Income taxes2,5574,8782,4756,868 Total comprehensive income6,57512,5426,36417,659  Net earnings per share – Basic and Diluted0.771.460.752.06

GOODFELLOW INC. Consolidated Statements of Financial Position (in thousands of dollars) Unaudited  As atAs atAs atMay 31 2023November 30
2022May 31
2022 $$$Assets Current Assets Cash3,1713,4202,608Trade and other receivables87,16364,423101,654Income taxes receivable6,0012,4391,078Inventories122,268112,294141,126Prepaid expenses2,2632,5559,451Total Current Assets220,866185,131255,917 Non-Current Assets Property, plant and equipment32,40532,26930,782Intangible assets1,7952,0962,388Right-of-use assets12,91614,99913,663Defined benefit plan asset11,76011,62010,426Other assets802802802Total Non-Current Assets59,67861,78658,061Total Assets280,544246,917313,978 Liabilities Current Liabilities Bank indebtedness34,002-72,320Trade and other payables36,55336,28644,322Provision2,2522,281405Current portion of lease liabilities4,7484,9694,605Total Current Liabilities77,55543,536121,652 Non-Current Liabilities Provision7706342,255Lease liabilities10,18912,53711,738Deferred income taxes3,4313,4313,151Total Non-Current Liabilities14,39016,60217,144Total Liabilities91,94560,138138,796 Shareholders’ Equity Share capital9,3949,4199,424Retained earnings179,205177,360165,758 188,599186,779175,182Total Liabilities and Shareholders’ Equity280,544246,917313,978

GOODFELLOW INC. Consolidated Statements of Cash Flows For the three and six months ended May 31, 2023 and 2022 (in thousands of dollars) Unaudited For the three months endedFor the six months ended May 31
2023May 31 
 2022May 31
2023May 31 
 2022 $$$$Operating Activities Net earnings6,57512,5426,36417,659Adjustments for: Depreciation and amortization of: Property, plant and equipment7955771,5401,152Intangible assets150 152301 302Right-of-use assets1,188 1,1402,445 2,190Accretion expense on provision68 26136 51Provision(7) 462(29) 462Income taxes2,557 4,8782,475 6,868Gain on disposal of property, plant and equipment(171)(10)(181)(35)Interest expense481 385569 499Interest on lease liabilities158 147140 278Funding in excess of pension plan expense(70) (15)(140) (29)Other(10) (24)(139) (25) 11,714 20,26013,481 29,372 Changes in non-cash working capital items(15,844)(32,520)(32,124)(68,474)Interest paid(632)(617)(740)(887)Income taxes paid(3,019)(3,277)(6,037)(16,968) (19,495)(36,414)(38,901)(86,329)Net Cash Flows from Operating Activities (7,781)(16,154)(25,420)(56,957) Financing Activities Net (decrease) increase in bank loans(2,000) --11,000Net increase in banker’s acceptances23,000 32,00028,000 53,000Payment of lease liabilities(1,287)(1,233)(2,792)(2,420)Redemption of shares(150)-(270)-Dividends paid(4,274)(3,425)(4,274)(3,425)Net Cash Flows from Financing Activities 15,289 27,34220,66458,155 Investing Activities Acquisition of property, plant and equipment(839)(1,468)(1,683)(1,912)Increase in intangible assets-(40)-(40)Proceeds on disposal of property, plant and equipment178 10188 35Net Cash Flows from Investing Activities (661)(1,498)(1,495)(1,917) Net cash inflow (outflow)6,8479,690(6,251)(719)Cash position, beginning of period(9,678) (13,402)3,420 (2,993)Cash position, end of period(2,831)(3,712)(2,831)(3,712) Cash position is comprised of: Cash3,171 2,6083,171 2,608Bank overdraft(6,002)(6,320)(6,002)(6,320) (2,831)(3,712)(2,831)(3,712)

GOODFELLOW INC.Consolidated Statements of Changes in Shareholders’ Equity For the six months ended May 31, 2023 and 2022(in thousands of dollars) Unaudited Share
CapitalRetained
EarningsTotal $$$ Balance as at November 30, 20219,424151,524160,948 Net earnings-17,65917,659 Total comprehensive income-17,65917,659  Dividend-(3,425)(3,425) Balance as at May 31, 20229,424165,758175,182   Balance as at November 30, 20229,419 177,360 186,779  Net earnings -6,3646,364 Total comprehensive income -6,3646,364 Dividend -(4,274)(4,274)Redemption of Shares (25)(245)(270) Balance as at May 31, 20239,394179,205188,599

From: Goodfellow Inc. Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 [email protected]