DELSON, Quebec, Feb. 17, 2022 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the fourth quarter ended November 30, 2021. The Company reported net earnings of $10.1 million or $1.18 per share compared to net earnings of $5.8 million or $0.67 per share a year ago. Consolidated sales for the three months ended November 30, 2021 were $143.0 million compared to $122.6 million last year. Sales in Canada increased 14% compared to the same period a year ago, while sales in the United States increased 46% and export sales increased 31% compared to the same period a year ago. Selling, administrative and general expenses increased overall by $1.8 million.
For the fiscal year ended November 30, 2021, the Company reported net earnings of $37.8 million or $4.42 per share compared to net earnings of $13.8 million or $1.61 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2021 were $615.9 million compared to $454.1 million last year. Sales in Canada increased 38% compared to the same period a year ago, while sales in the United States increased 24% and export sales increased 14% compared to the same period a year ago. Selling, administrative and general expenses increased overall by $13.3 million.
Fiscal 2021 was characterized by continued pandemic conditions, such as surging demand in commodities and seasonal products, supply chain disruptions and labor shortages. Despite this context, the Company performed very well in all regions realizing the highest sales revenue on record. This was achieved by maintaining suitable inventory levels and ensuring superior customer service, as well as focusing on operational efficiencies in all areas which lead to more output.
The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.40 per share payable on March 18, 2022, to shareholders of record at the close of business on March 4, 2022. 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 direction 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 Income | |||
| For the years ended November 30, 2021 and 2020 | |||
| (in thousands of dollars, except per share amounts) | |||
| Unaudited | |||
| Years ended | |||
| November 30 | November 30 | ||
| 2021 | 2020 | ||
| $ | $ | ||
| Sales | 615,946 | 454,103 | |
| Expenses | |||
| Cost of goods sold | 479,403 | 362,354 | |
| Selling, administrative and general expenses | 83,326 | 70,008 | |
| Net financial costs | 2,694 | 2,719 | |
| 565,423 | 435,081 | ||
| Earnings before income taxes | 50,523 | 19,022 | |
| Income taxes | 12,687 | 5,211 | |
| Net earnings | 37,836 | 13,811 | |
| Items that will not subsequently be reclassified to net earnings | |||
| Remeasurement of defined benefit plan obligation, | 7,021 | (426) | |
| net of taxes of $2,730 ($165 in 2020) | |||
| Total comprehensive income | 44,857 | 13,385 | |
| Net earnings per share – Basic and Diluted | 4.42 | 1.61 | |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) Unaudited | |||
| As at | As at | ||
| November 30 2021 | November 30 2020 | ||
| $ | $ | ||
| Assets | |||
| Current Assets | |||
| Cash | 4,253 | 3,466 | |
| Trade and other receivables | 63,246 | 76,093 | |
| Inventories | 109,787 | 84,740 | |
| Prepaid expenses | 4,189 | 2,584 | |
| Total Current Assets | 181,475 | 166,883 | |
| Non-Current Assets | |||
| Property, plant and equipment | 30,022 | 31,148 | |
| Intangible assets | 2,650 | 3,238 | |
| Right-of-use assets | 12,262 | 14,324 | |
| Defined benefit plan asset | 10,397 | 1,945 | |
| Other assets | 785 | 785 | |
| Total Non-Current Assets | 56,116 | 51,440 | |
| Total Assets | 237,591 | 218,323 | |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 9,246 | 28,570 | |
| Trade and other payables | 37,897 | 39,614 | |
| Income taxes payable | 9,022 | 4,859 | |
| Provision | 2,147 | 1,473 | |
| Dividend payable | - | 2,141 | |
| Current portion of lease liabilities | 4,256 | 4,315 | |
| Total Current Liabilities | 62,568 | 80,972 | |
| Non-Current Liabilities | |||
| Lease liabilities | 10,924 | 13,343 | |
| Deferred income taxes | 3,151 | 1,597 | |
| Defined benefit plan obligation | - | 1,182 | |
| Total Non-Current Liabilities | 14,075 | 16,122 | |
| Total Liabilities | 76,643 | 97,094 | |
| Shareholders’ Equity | |||
| Share capital | 9,424 | 9,424 | |
| Retained earnings | 151,524 | 111,805 | |
| 160,948 | 121,229 | ||
| Total Liabilities and Shareholders’ Equity | 237,591 | 218,323 | |
| GOODFELLOW INC. | ||
| Consolidated Statements of Cash Flows | ||
| For the years ended November 30, 2021 and 2020 | ||
| (in thousands of dollars) Unaudited | ||
| Years ended | ||
| November 30 2021 | November 30 2020 | |
| $ | $ | |
| Operating Activities | ||
| Net earnings | 37,836 | 13,811 |
| Adjustments for: | ||
| Depreciation and amortization of: | ||
| Property, plant and equipment | 2,552 | 2,705 |
| Intangible assets | 621 | 728 |
| Right-of-use assets | 4,141 | 4,324 |
| Accretion expense on provision | 44 | 72 |
| Increase (decrease) in provision | 630 | (69) |
| Income taxes | 12,687 | 5,211 |
| Gain on disposal of property, plant and equipment | (25) | (45) |
| Interest expense | 826 | 950 |
| Interest on lease liabilities | 580 | 681 |
| Funding in excess of pension plan expense | 117 | 259 |
| Other | (6) | 18 |
| 60,003 | 28,645 | |
| Changes in non-cash working capital items | (15,484) | (14,117) |
| Interest paid | (1,541) | (1,495) |
| Income taxes paid | (9,700) | (1,592) |
| (26,725) | (17,204) | |
| Net Cash Flows from Operating Activities | 33,278 | 11,441 |
| Financing Activities | ||
| Net (decrease) increase in bank loans | (10,000) | 7,000 |
| Net decrease in banker’s acceptances | (12,000) | (13,000) |
| Payment of lease liabilities | (4,551) | (4,572) |
| Dividend paid | (7,279) | (1,712) |
| (33,830) | (12,284) | |
| Investing Activities | ||
| Acquisition of property, plant and equipment | (1,333) | (1,431) |
| Acquisition of intangible assets | (33) | (39) |
| Proceeds on disposal of property, plant and equipment | 29 | 49 |
| (1,337) | (1,421) | |
| Net cash outflow | (1,889) | (2,264) |
| Cash position, beginning of year | (1,104) | 1,160 |
| Cash position, end of year | (2,993) | (1,104) |
| Cash position is comprised of: | ||
| Cash | 4,253 | 3,466 |
| Bank overdraft | (7,246) | (4,570) |
| (2,993) | (1,104) | |
| GOODFELLOW INC. | |||
| Consolidated Statements of Changes in Shareholders’ Equity | |||
| For the years ended November 30, 2021 and 2020 | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| Share | Retained | Total | |
| Capital | Earnings | ||
| $ | $ | $ | |
| 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 |
| Net earnings | - | 37,836 | 37,836 |
| Other comprehensive income | - | 7,021 | 7,021 |
| Total comprehensive income | - | 44,857 | 44,857 |
| Transactions with owners of the Company | |||
| Dividend | - | (5,138) | (5,138) |
| Balance as at November 30, 2021 | 9,424 | 151,524 | 160,948 |
From: Goodfellow Inc.
Patrick Goodfellow
President and CEO
T: 450 635-6511
F: 450 635-3730
info@goodfellowinc.com
