Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2020

Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2020




Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2020

DELSON, Quebec, Feb. 19, 2021 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX: GDL) announced today its financial results for the fourth quarter ended November 30, 2020. The Company reported a net income of $5.8 million or $0.67 per share compared to a net income of $0.3 million or $0.03 per share a year ago. Consolidated sales for the three months ended November 30, 2020 were $122.6 million compared to $107.1 million last year. Sales in Canada increased 19% compared to the same period a year ago, while sales in the United States decreased 14% and export sales decreased 12% compared to the same period a year ago. Selling, administrative and general expenses decreased overall by $0.9 million.

For the fiscal year ended November 30, 2020, the Company reported a net income of $13.8 million or $1.61 per share compared to a net income of $3.1 million or $0.36 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2020 were $454.1 million compared to $449.6 million last year. Sales in Canada increased 4% compared to the same period a year ago, while sales in the United States decreased 10% and export sales decreased 22% compared to the same period a year ago. Selling, administrative and general expenses decreased overall by $7.5 million.

Fiscal 2020 was characterized by continued pandemic realities and their drastic effects on supply and demand. The Company performed very well and was able to capitalize on surging demand in commodities and seasonal products. This trend extended well into late November which is uncharacteristic and unprecedented in the previous fourth quarters.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.30 per share payable on March 19, 2021, to shareholders of record at the close of business on March 5, 2021.

Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.

GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the years ended November 30, 2020 and 2019
(in thousands of dollars, except per share amounts)
Unaudited
   
  Years ended
  November 30
2020
November 30
2019
  $ $
     
Sales 454,103 449,587
Expenses (Income)    
Cost of goods sold 362,354 364,545
Selling, administrative and general expenses 70,053 77,639
Gain on disposal of property, plant and equipment (45) (3)
Net financial costs 2,719 3,137
  435,081 445,318
     
Earnings before income taxes 19,022 4,269
     
Income taxes 5,211 1,215
     
Net earnings 13,811 3,054
     
Items that will not subsequently be reclassified to net earnings    
     
Remeasurement of defined benefit plan obligation, net of taxes of $165 ($265 in 2019) (426) (723)
     
Total comprehensive income 13,385 2,331
     
     
Net earnings per share – Basic 1.61 0.36
Net earnings per share – Diluted 1.61 0.35

GOODFELLOW INC.    
Consolidated Statements of Financial Position    
(in thousands of dollars)    
Unaudited    
     
  As at As at
  November 30
2020
November 30
2019
  $ $
Assets    
Current Assets    
Cash 3,466 2,364
Trade and other receivables 76,093 48,498
Inventories 84,740 87,339
Prepaid expenses 2,584 2,563
Total Current Assets 166,883 140,764
     
Non-Current Assets    
Property, plant and equipment 31,148 32,838
Intangible assets 3,238 3,927
Right-of-use assets 14,324
Defined benefit plan asset 1,945 2,222
Other assets 785 830
Total Non-Current Assets 51,440 39,817
Total Assets 218,323 180,581
     
Liabilities    
Current liabilities    
Bank indebtedness 28,570 31,204
Trade and other payables 39,614 29,048
Income taxes payable 4,859 734
Provision 1,473 1,470
Dividend payable 2,141 856
Current portion of lease liabilities 4,315 15
Total Current Liabilities 80,972 63,327
     
Non-Current Liabilities    
Lease liabilities           13,343 28
Deferred income taxes 1,597 3,209
Defined benefit plan obligation 1,182 609
Total Non-Current Liabilities 16,122 3,846
Total Liabilities 97,094 67,173
     
Shareholders’ Equity    
Share capital 9,424 9,424
Retained earnings 111,805 103,984
  121,229 113,408
Total Liabilities and Shareholders’ Equity 218,323 180,581

GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the years ended November 30, 2020 and 2019    
(in thousands of dollars)    
Unaudited    
     
  Years ended
  November 30
2020
November 30
2019  
  $ $
Operating Activities    
Net earnings 13,811 3,054
Adjustments for:    
Depreciation and amortization of:    
Property, plant and equipment 2,705 2,786
Right-of-use assets 4,324
Intangible assets 728 693
Accretion expense on provision 72 14
Decrease in provision (69) (197)
Income taxes 5,211 1,215
Gain on disposal of property, plant and equipment (45) (3)
Interest expense 950 2,134
Interest on lease liabilities 681
Funding in deficit of pension plan expense 259 47
Other assets (7) 111
Share-based compensation (79)
Other 25
  28,645 9,775
     
Changes in non-cash working capital items (14,117) 6,856
Interest paid (1,495) (2,154)
Income taxes paid (1,592) (1,069)
  (17,204) 3,633
Net Cash Flows from Operating Activities 11,441 13,408
     
Financing Activities    
Proceeds from borrowings under bank loans 104,000 115,000
Repayment of borrowings under bank loans (97,000) (113,000)
Proceeds from borrowings under banker’s acceptances 33,000 40,000
Repayment of borrowings under banker’s acceptances (46,000) (53,000)
Payment of lease liabilities (4,572) (14)
Dividend paid (1,712) (851)
  (12,284) (11,865)
     
Investing Activities    
Acquisition of property, plant and equipment (1,431) (968)
Increase in intangible assets (39) (176)
Proceeds on disposal of property, plant and equipment 49 18
  (1,421) (1,126)
     
Net cash (outflow) inflow (2,264) 417
Cash position, beginning of year 1,160 743
Cash position, end of year (1,104) 1,160
     
Cash position is comprised of:    
Cash 3,466 2,364
Bank overdraft (4,570) (1,204)
  (1,104) 1,160

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the years ended November 30, 2020 and 2019
(in thousands of dollars)
Unaudited
       
  Share
Capital
Retained
Earnings
Total
  $ $ $
       
Balance as at November 30, 2018 9,152 103,711 112,863
       
Net earnings 3,054 3,054
Other comprehensive income (723) (723)
       
Total comprehensive income 2,331 2,331
       
Transactions with owners of the Company      
       
Dividend (1,707) (1,707)
Share-based payment 272 (351) (79)
       
Balance as at November 30, 2019 9,424 103,984 113,408
       
IFRS 16 adoption adjustment, net of taxes of $940 (2,567) (2,567)
       
Balance as at December 1, 2019 9,424 101,417 110,841
       
Net earnings 13,811 13,811
Other comprehensive income (426) (426)
       
Total comprehensive income 13,385 13,385
       
Transactions with owners of the Company      
       
Dividend (2,997) (2,997)
       
Balance as at November 30, 2020 9,424 111,805 121,229


From: Goodfellow Inc.
  Patrick Goodfellow
  President and CEO
  Tel: 450 635-6511
  Fax: 450 635-3730
  Internet: info@goodfellowinc.com