GDL Goodfellow Inc

Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the first quarter ended February 29, 2024.

The Company reported a net loss of $108 thousand or $0.01 per share compared to a net loss of $211 thousand or $0.02 per share a year ago. Consolidated sales for the three months ended February 29, 2024 were $105.3 million compared to $105.9 million last year.

Though under pressure from lingering inflation and cautious consumer sentiment, Goodfellow achieved a comparable overall financial performance in the first quarter thanks to its diversified product offering, expertise in value-added services, and efficient distribution systems, as well as its strong, debt-free balance sheet. With uncertain economic conditions ahead, the Company will continue to protect margins and seize opportunities for growth with new and existing customers.

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 months ended February 29, 2024 and February 28, 2023
(in thousands of dollars, except per share amounts)Unaudited
	For the three months ended
	February 292024		February 282023
	$		$
Sales	105,334		105,925
Expenses
Cost of goods sold	82,546		84,260
Selling, administrative and general expenses	22,884		21,684
Net financial costs	55		274
	105,485		106,218
Loss before income taxes	(151	)	(293	)
Income taxes	(43	)	(82	)
Total comprehensive loss	(108	)	(211	)
Net loss per share – Basic and Diluted	(0.01	)	(0.02	)

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
	As at		As at		As at
	February 292024		November 302023		February 282023
	$		$		$
Assets
Current Assets
Cash	4,397		28,379		1,958
Trade and other receivables	69,672		53,674		64,295
Income taxes receivable	8,254		6,286		5,539
Inventories	122,802		98,473		130,416
Prepaid expenses	3,771		4,215		3,663
Total Current Assets	208,896		191,027		205,871
Non-Current Assets
Property, plant and equipment	33,208		32,761		32,368
Intangible assets	1,340		1,487		1,945
Right-of-use assets	10,586		11,354		13,905
Defined benefit plan asset	15,453		15,347		11,690
Other assets	777		777		802
Total Non-Current Assets	61,364		61,726		60,710
Total Assets	270,260		252,753		266,581
Liabilities
Current Liabilities
Bank indebtedness	11,311		-		18,636
Trade and other payables	44,986		37,620		39,070
Provision	2,778		2,789		2,259
Dividends payable	4,256		-		4,274
Current portion of lease liabilities	4,419		4,732		4,763
Total Current Liabilities	67,750		45,141		69,002
Non-Current Liabilities
Provision	-		-		702
Lease liabilities	7,878		8,497		11,272
Deferred income taxes	4,112		4,112		3,431
Total Non-Current Liabilities	11,990		12,609		15,405
Total Liabilities	79,740		57,750		84,407
Shareholders’ Equity
Share capital	9,370		9,379		9,408
Retained earnings	181,150		185,624		172,766
	190,520		195,003		182,174
Total Liabilities and Shareholders’ Equity	270,260		252,753		266,581

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 29, 2024 and February 28, 2023
(in thousands of dollars) Unaudited
	For the three months ended
	February 282024		February 282023
	$		$
Operating Activities
Net loss	(108	)	(211	)
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	835		745
Intangible assets	147		151
Right-of-use assets	1,034		1,257
Gain on disposal of property, plant and equipment	(8	)	(10	)
Accretion expense on provision	-		68
Provision	(11	)	(22	)
Income taxes	(43	)	(82	)
Interest expense	45		88
Interest on lease liabilities	137		(18	)
Funding in deficit of pension plan expense	(106	)	(70	)
Other	1		(129	)
	1,923		1,767
Changes in non-cash working capital items	(32,510	)	(16,280	)
Interest paid	(189	)	(180	)
Income taxes paid	(1,925	)	(3,018	)
	(34,624	)	(19,406	)
Net Cash Flows from Operating Activities	(32,701	)	(17,639	)
Financing Activities
Net increase in bank indebtedness	-		2,000
Net increase in banker’s acceptances	-		5,000
Payment of lease liabilities	(1,199	)	(1,505	)
Redemption of shares	(119	)	(120	)
Net Cash Flows from Financing Activities	(1,318	)	5,375
Investing Activities
Acquisition of property, plant and equipment	(1,282	)	(844	)
Proceeds on disposal of property, plant and equipment	8		10
Other assets	-		-
Net Cash Flows from Investing Activities	(1,274	)	(834	)
Net cash outflow	(35,293	)	(13,098	)
Cash, beginning of period	28,379		3,420
Cash, end of period	(6,914	)	(9,678	)
Cash position is comprised of:
Cash	4,397		1,958
Bank overdraft	(11,311	)	(11,636	)
	(6,914	)	(9,678	)

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the three months ended February 29, 2024 and February 28, 2023
(in thousands of dollars) Unaudited
	ShareCapital		RetainedEarnings		Total
	$		$		$
Balance as at November 30, 2022	9,419		177,360		186,779
Net loss	-		(211	)	(211	)
Total comprehensive loss	-		(211	)	(211	)
Dividend	-		(4,274	)	(4,274	)
Redemption of Shares	(11	)	(109	)	(120	)
Balance as at February 28, 2023	9,408		172,766		182,174
Balance as at November 30, 2023	9,379		185,624		195,003
Net loss	-		(108	)	(108	)
Total comprehensive loss	-		(108	)	(108	)
Dividend	-		(4,256	)	(4,256	)
Redemption of Shares	(9	)	(110	)	(119	)
Balance as at February 29, 2024	9,370		181,150		190,520

Patrick Goodfellow President and CEO T: 450 635-6511 F: 450 635-3730 info@goodfellowinc.com