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 |