GDL Goodfellow Inc

Goodfellow Inc. (TSX: GDL) (the “Company” or “Goodfellow”) announced its financial results today.

For the fourth quarter ended November 30, 2023, the Company reported net earnings of $2.1 million or $0.25 per share compared to net earnings of $4.4 million or $0.52 per share a year ago. Consolidated sales for the three months ended November 30, 2023 were $125.4 million compared to $149.3 million last year.

For the fiscal year ended November 30, 2023, the Company reported net earnings of $14.7 million or $1.72 per share compared to net earnings of $32.7 million or $3.82 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2023 were $512.8 million compared to $631.2 million last year.

Goodfellow concluded its 125th anniversary year on a positive note, demonstrating resilience despite numerous external challenges. The retail sector experienced a significant downturn in demand, leading to an oversupply in the market, with the flooring category suffering the most significant setback in the second quarter of 2023. In addition, demand and prices for hardwoods declined considerably, with signs of recovery becoming evident only in the early months of fiscal 2024. Goodfellow’s ability to meet expectations in difficult business conditions, can be attributed to the diversity of its product offering and the dedication of its talented team.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.50 per share payable on March 19, 2024, to shareholders of record at the close of business on March 5, 2024. 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, 2023 and 2022
(in thousands of dollars, except per share amounts) Unaudited
	Years ended
	November 30 2023	November 30 2022
	$	$
Sales	512,821	631,185
Expenses
Cost of goods sold	400,461	495,125
Selling, administrative and general expenses	89,841	88,143
Net financial costs	2,429	3,201
	492,731	586,469
Earnings before income taxes	20,090	44,716
Income taxes	5,402	12,037
Net earnings	14,688	32,679
Items that will not subsequently be reclassified to net earnings
Remeasurement of defined benefit plan obligation net of taxes of $984 ($355 in 2022)	2,531	914
Total comprehensive income	17,219	33,593
Net earnings per share – Basic and Diluted	1.72	3.82

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars) Unaudited
	As at	As at
	November 30 2023	November 30 2022
	$	$
Assets
Current Assets
Cash	28,379	3,420
Trade and other receivables	53,674	64,423
Income taxes receivable	6,286	2,439
Inventories	98,473	112,294
Prepaid expenses	4,215	2,555
Total Current Assets	191,027	185,131
Non-Current Assets
Property, plant and equipment	32,761	32,269
Intangible assets	1,487	2,096
Right-of-use assets	11,354	14,999
Defined benefit plan asset	15,347	11,620
Other assets	777	802
Total Non-Current Assets	61,726	61,786
Total Assets	252,753	246,917
Liabilities
Current Liabilities
Trade and other payables	37,620	36,286
Provision	2,789	2,281
Current portion of lease liabilities	4,732	4,969
Total Current Liabilities	45,141	43,536
Non-Current Liabilities
Provision	-	634
Lease liabilities	8,497	12,537
Deferred income taxes	4,112	3,431
Total Non-Current Liabilities	12,609	16,602
Total Liabilities	57,750	60,138
Shareholders’ Equity
Share capital	9,379	9,419
Retained earnings	185,624	177,360
	195,003	186,779
Total Liabilities and Shareholders’ Equity	252,753	246,917

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the years ended November 30, 2023 and 2022
(in thousands of dollars) Unaudited
Years ended
	November 30 2023	November 30 2022
	$	$
Operating Activities
Net earnings	14,688	32,679
Adjustments for:
Depreciation and amortization of:
Property, plant and equipment	3,311	2,551
Intangible assets	602	608
Right-of-use assets	4,697	4,551
Gain on disposal of property, plant and equipment	(139)	(45)
Accretion expense on provision	271	102
Provision	(397)	666
Income taxes	5,402	12,037
Interest expense	996	1,230
Interest on lease liabilities	431	603
Funding in (deficit) excess of pension plan expense	(212)	46
Other	24	23
	29,674	55,051
Changes in non-cash working capital items	24,213	(3,734)
Interest paid	(1,367)	(1,731)
Income taxes paid	(9,552)	(23,573)
	13,294	(29,038)
Net Cash Flows from Operating Activities	42,968	26,013
Financing Activities
Net decrease in bank indebtedness	-	(2,000)
Payment of lease liabilities	(5,350)	(4,985)
Redemption of shares	(456)	(56)
Dividends paid	(8,539)	(7,706)
Net Cash Flows from Financing Activities	(14,345)	(14,747)
Investing Activities
Acquisition of property, plant and equipment	(3,836)	(4,827)
Decrease (increase) in intangible assets	7	(54)
Proceeds on disposal of property, plant and equipment	147	45
Other assets	18	(17)
Net Cash Flows from Investing Activities	(3,664)	(4,853)
Net cash inflow	24,959	6,413
Cash (bank indebtedness), beginning of year	3,420	(2,993)
Cash, end of year	28,379	3,420

GOODFELLOW INC.
Consolidated Statements of Changes in Shareholders’ Equity
For years ended November 30, 2023 and 2022
(in thousands of dollars)
Unaudited
	Share Capital	Retained Earnings	Total
	$	$	$
Balance as at November 30, 2021	9,424	151,524	160,948
Net earnings	-	32,679	32,679
Other comprehensive income	-	914	914
Total comprehensive income	-	33,593	33,593
Dividend	-	(7,706)	(7,706)
Redemption of Shares	(5)	(51)	(56)
Balance as at November 30, 2022	9,419	177,360	186,779
Net earnings	-	14,688	14,688
Other comprehensive income	-	2,531	2,531
Total comprehensive income	-	17,219	17,219
Dividend	-	(8,539)	(8,539)
Redemption of Shares	(40)	(416)	(456)
Balance as at November 30, 2023	9,379	185,624	195,003

Goodfellow Inc.Patrick GoodfellowPresident and CEOT: 450 635-6511   F: 450 635-3730info@goodfellowinc.com