Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2024

Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced today its financial results for the second quarter ended May 31, 2024.

The Company reported net earnings of $5.3 million or $0.62 per share compared to net earnings of $6.6 million or $0.77 per share a year ago. Consolidated sales for the three months ended May 31, 2024 were $140.3 million compared to $142.3 million last year.

For the six months ended May 31, 2024, the Company reported net earnings of $5.2 million or $0.61 per share compared to net earnings of $6.4 million or $0.75 per share a year ago, while consolidated sales were $245.7 million compared to $248.3 million last year.

Goodfellow continues to navigate a broader economic landscape characterized by low consumer confidence and sluggish new housing starts. These conditions have impacted industry growth and shifted demand towards different types of products within the Company’s portfolio. Goodfellow’s offering is well positioned to cater to this evolving demand, ensuring revenue and margin stability even as certain segments experience fluctuations.

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 and six months ended May 31, 2024 and 2023
(in thousands of dollars, except per share amounts)
Unaudited

	For the three months ended		For the six months ended
	May 31 2024	May 31 2023	May 31 2024	May 31 2023
	$	$	$	$

Sales	140,334	142,326	245,668	248,251
Expenses
Cost of goods sold	106,199	110,034	188,745	194,294
Selling, administrative and general expenses	26,108	22,239	48,992	43,923
Net financial costs	652	921	707	1,195
	132,959	133,194	238,444	239,412

Earnings before income taxes	7,375	9,132	7,224	8,839

Income taxes	2,066	2,557	2,023	2,475

Total comprehensive income	5,309	6,575	5,201	6,364


Net earnings per share – Basic and Diluted	0.62	0.77	0.61	0.75

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
	As at	As at	As at
	May 31 2024	November 30 2023	May 31 2023
	$	$	$
Assets
Current Assets
Cash	4,822	28,379	3,171
Trade and other receivables	95,546	53,674	87,163
Income taxes receivable	7,286	6,286	6,001
Inventories	130,239	98,473	122,268
Prepaid expenses	2,536	4,215	2,263
Total Current Assets	240,429	191,027	220,866

Non-Current Assets
Property, plant and equipment	34,631	32,761	32,405
Intangible assets	1,192	1,487	1,795
Right-of-use assets	9,993	11,354	12,916
Defined benefit plan asset	15,264	15,347	11,760
Other assets	1,227	777	802
Total Non-Current Assets	62,307	61,726	59,678
Total Assets	302,736	252,753	280,544

Liabilities
Current Liabilities
Bank indebtedness	35,883	-	34,002
Trade and other payables	52,645	37,620	36,553
Provision	2,774	2,789	2,252
Current portion of lease liabilities	4,170	4,732	4,748
Total Current Liabilities	95,472	45,141	77,555

Non-Current Liabilities
Provision	-	-	770
Lease liabilities	7,373	8,497	10,189
Deferred income taxes	4,112	4,112	3,431
Total Non-Current Liabilities	11,485	12,609	14,390
Total Liabilities	106,957	57,750	91,945

Shareholders’ Equity
Share capital	9,366	9,379	9,394
Retained earnings	186,413	185,624	179,205
	195,779	195,003	188,599
Total Liabilities and Shareholders’ Equity	302,736	252,753	280,544

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and six months ended May 31, 2024 and May 31, 2023
(in thousands of dollars) Unaudited
For the three months ended			For the six months ended
	May 31 2024	May 31 2023	May 31 2024	May 31 2023
	$	$	$	$
Operating Activities
Net earnings	5,309	6,575	5,201	6,364
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	882	795	1,717	1,540
Intangible assets	148	150	295	301
Right-of-use assets	1,089	1,188	2,123	2,445
Gain on disposal of property, plant and equipment	(69)	(171)	(77)	(181)
Accretion expense on provision	-	68	-	136
Provision	(4)	(7)	(15)	(29)
Income taxes	2,066	2,557	2,023	2,475
Interest expense	330	481	375	569
Interest on lease liabilities	137	158	274	140
Funding in excess (deficit) of pension plan expense	189	(70)	83	(140)
Other	7	(10)	8	(139)
	10,084	11,714	12,007	13,481

Changes in non-cash working capital items	(24,366)	(15,844)	(56,876)	(32,124)
Interest paid	(518)	(632)	(707)	(740)
Income taxes paid	(1,098)	(3,019)	(3,023)	(6,037)
	(25,982)	(19,495)	(60,606)	(38,901)
Net Cash Flows from Operating Activities	(15,898)	(7,781)	(48,599)	(25,420)

Financing Activities
Net increase (decrease) in bank loans	6,000	(2,000)	6,000	-
Net increase in banker’s acceptances	-	23,000	-	28,000
Net increase in CORRA loans	18,000	-	18,000	-
Payment of lease liabilities	(1,257)	(1,287)	(2,456)	(2,792)
Redemption of shares	(50)	(150)	(169)	(270)
Dividends paid	(4,256)	(4,274)	(4,256)	(4,274)
Net Cash Flows from Financing Activities	18,437	15,289	17,119	20,664

Investing Activities
Acquisition of property, plant and equipment	(2,618)	(839)	(3,900)	(1,683)
Proceeds on disposal of property, plant and equipment	382	178	390	188
Other assets	(450)	-	(450)	-
Net Cash Flows from Investing Activities	(2,686)	(661)	(3,960)	(1,495)

Net cash (outflow) inflow	(147)	6,847	(35,440)	(6,251)
Cash position, beginning of period	(6,914)	(9,678)	28,379	3,420
Cash position, end of period	(7,061)	(2,831)	(7,061)	(2,831)

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For the six months ended May 31, 2024 and May 31, 2023
(in thousands of dollars) Unaudited

	Share Capital	Retained Earnings	Total
	$	$	$

Balance as at November 30, 2022	9,419	177,360	186,779

Net earnings	-	6,364	6,364

Total comprehensive income	-	6,364	6,364

Dividend	-	(4,274)	(4,274)
Redemption of Shares	(25)	(245)	(270)

Balance as at May 31, 2023	9,394	179,205	188,599



Balance as at November 30, 2023	9,379	185,624	195,003

Net earnings	-	5,201	5,201

Total comprehensive income	-	5,201	5,201

Dividend	-	(4,256)	(4,256)
Redemption of Shares	(13)	(156)	(169)

Balance as at May 31, 2024	9,366	186,413	195,779