DELSON, Quebec, Oct.  04, 2023  (GLOBE NEWSWIRE) -- 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 IncomeFor the three and nine months ended August 31, 2023 and 2022(in thousands of dollars, except per share amounts)Unaudited  For the three months endedFor the nine months endedAugust 31
2023August 31
 2022August 31
2023August 31
 2022 $$$$ Sales 139,155 167,574387,406 481,886Expenses Cost of goods sold107,535 129,715301,829 374,716Selling, administrative and general expenses22,220 22,12666,14365,464Net financial costs802 1,0381,997 2,484 130,557 152,879369,969 442,664 Earnings before income taxes8,598 14,69517,437 39,222 Income taxes2,407 4,1154,882 10,983 Total comprehensive income6,191 10,58012,555 28,239  Net earnings per share – Basic and Diluted0.721.241.473.30

GOODFELLOW INC.Consolidated Statements of Financial Position(in thousands of dollars)UnauditedAs atAs atAs atAugust 31 
 2023November 30
2022August 31
 2022 $$$Assets Current Assets Cash7,973 3,4202,279Trade and other receivables66,235 64,42376,201Income taxes receivable3,946 2,43933Inventories113,346 112,294142,082Prepaid expenses2,177 2,5553,237Total Current Assets193,677 185,131223,832 Non-Current Assets Property, plant and equipment32,906 32,26931,148Intangible assets1,644 2,0962,235Right-of-use assets 11,697 14,99914,614Defined benefit plan asset11,829 11,62010,441Other assets777802802Total Non-Current Assets58,853 61,78659,240Total Assets252,530 246,917283,072 Liabilities Current Liabilities Bank indebtedness- -31,590Trade and other payables37,551 36,28642,744Provision2,253 2,281370Current portion of lease liabilities4,863 4,9694,836Total Current Liabilities44,66743,53679,540 Non-Current Liabilities Provision837 6342,281Lease liabilities8,867 12,53712,338Deferred income taxes3,4313,4313,151Total Non-Current Liabilities13,135 16,60217,770Total Liabilities57,802 60,13897,310 Shareholders’ Equity Share capital9,388 9,4199,424Retained earnings185,340 177,360176,338 194,728 186,779185,762Total Liabilities and Shareholders’ Equity252,530 246,917283,072

GOODFELLOW INC.Consolidated Statements of Cash FlowsFor the three and nine months ended August 31, 2023 and 2022(in thousands of dollars)Unaudited For the three months endedFor the nine months ended August 31
2023August 31
2022August 31
2023August 31
2022 $$$$Operating Activities Net earnings6,19110,58012,55528,239Adjustments for:  Depreciation and amortization of:  Property, plant and equipment8566362,3961,788 Intangible assets151153452455 Right-of-use assets1,1641,1753,6093,365Gain on disposal of property, plant and equipment-(10)(181)(45)Accretion expense on provision682520476Provision-(34)(29)428Income taxes2,4074,1154,88210,983Interest expense3415089101,007Interest on lease liabilities146152286430Funding in excess of pension plan expense(69)(15)(209)(44)Other152(13)13(38) 11,40717,27224,88846,644 Changes in non-cash working capital items30,89029,012(1,234)(39,462)Interest paid(436)(539)(1,176)(1,426)Income taxes paid(352)(3,070)(6,389)(20,038) 30,10225,403(8,799)(60,926)Net Cash Flows from Operating Activities41,50942,67516,089(14,282) Financing Activities Net (decrease) increase in bank loans-(5,000)-6,000Net (decrease) increase in banker’s acceptances(28,000)(35,000)-18,000Payment 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-1018845Dividend from joint venture25-25-Dissolution of the joint venture(7)-(7)-Net Cash Flows from Investing Activities(1,339)(992)(2,834)(2,909) Net cash inflow (outflow)10,8044014,553(318)Cash position, beginning of period(2,831)(3,712)3,420(2,993)Cash position, end of period7,973(3,311)7,973(3,311) Cash position is comprised of: Cash7,9732,2797,9732,279Bank overdraft-(5,590)-(5,590) 7,973(3,311)7,973(3,311)

GOODFELLOW INC.Consolidated Statements of Changes in Shareholders’ EquityFor the nine months ended August 31, 2023 and 2022(in thousands of dollars)Unaudited Share
 CapitalRetained
 EarningsTotal $$$ Balance as at November 30, 20219,424151,524160,948 Net earnings-28,23928,239 Total comprehensive income-28,23928,239 Dividend-(3,425)(3,425) Balance as at August 31, 20229,424176,338185,762 Balance as at November 30, 20229,419 177,360 186,779  Net earnings -12,55512,555Total comprehensive income -12,55512,555 Dividend -(4,274)(4,274)Redemption of Shares (31)(301)(332) Balance as at August 31, 20239,388185,340194,728

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