Goodfellow Inc. · TSX:GDL
Goodfellow — Shareholder Meeting (May 2024)
32 slides from Goodfellow's shareholder meeting presentation, May 16, 2024
Slide 1: Annual Meeting of Shareholders
MAY 16, 2024 ANNUAL MEETING OF SHAREHOLDERS
Slide 2: Welcome Message
WELCOME MESSAGE
Slide 3: Directors and Officers
Directors and Officers Patrick Goodfellow – President and CEO Charles Brisebois – CFO and Secretary Robert Hall – Chair of the Board Alain Côté – Director and Chair of the Audit Committee Sarah Prichard – Director and Chair of the Compensation and Human Resources Committee Douglas Goodfellow - Direc
Slide 4: Agenda
ANNUAL MEETING OF SHAREHOLDERS AGENDA • Opening of the Meeting • Approval of Minutes of Previous Annual Meeting of Shareholders • Reception of Financial Statements and Independent Auditor’s Report • Election of Directors • Appointment of Auditors • Management Presentation • Question Period
Slide 5: Forward-Looking Financial Information
May 16, 2024 ANNUAL MEETING OF SHAREHOLDERS Forward-Looking Financial Information This presentation contains implicit and/or explicit forward-looking statements relating, inter alia, to objectives, strategies, priorities, goals, plans, financial position, operating results, trends and activities of
Slide 6: Message to Stephen
MAY 16, 2024 MESSAGE TO STEPHEN Inauguration – Delson 1990 Board of Directors 1985 Today
Slide 7: Election of Directors
May 16, 2024 ELECTION OF DIRECTORS Re-election (6 seats): • Alain Côté • David Goodfellow • Douglas Goodfellow • Robert Hall • James Hewitt • Sarah Prichard
Slide 8: Appointment of Auditors
May 16, 2024 APPOINTMENT OF AUDITORS
Slide 9: Management Presentation
MANAGEMENT PRESENTATION
Slide 10: Management Review
MANAGEMENT REVIEW Patrick Goodfellow • 2023 Objectives President and CEO • 2023 Market Conditions • 2023 Financials • Q1 - 2024 Financials Charles Brisebois CFO and Secretary • 2024 Outlook
Slide 11: Goodfellow at a Glance
2023 GOODFELLOW AT A GLANCE > 650 18 > 5,200 Employees Locations Customers SALES BY PRODUCT CATEGORY SALES BY LOCATION US and Exports Building Materials 10% 12% Western Canada 9% Quebec 35% Panels 18% Lumber Atlantic 55% 19% Flooring 15% Ontario 27%
Slide 12: Corporate Objectives
2023 CORPORATE OBJECTIVES • Achieve > 3 % Net Return on Sales • Maintain Robust Balance Sheet • Improve Distribution Efficiency and Inventory Turnover • Strengthen Core Product and Services Offering
Slide 13: Commentary on 2023 Market Conditions
COMMENTARY ON 2023 MARKET CONDITIONS Q1 ▪ SOFT CONSUMER DEMAND CARRIED OVER FROM LATE 2022 ▪ CUSTOMERS RELUCTANT TO HOLD INVENTORY Q2 ▪ PERSISTENT HARDWOOD PRICE DECLINES ▪ SURPLUS OF FLOORING IN MARKET Q3 ▪ HEATED COMPETITION DRIVES PRICES DOWN Q4 ▪ STRONG INDUSTRIAL AND INFRASTRUCTURE DEMAND ▪ SIG
Slide 14: Year-End Results 2023
2023 YEAR-END RESULTS
Slide 15: Sales
2023 SALES $ Sales ▪ By Region: (in millions) ▪ Canada -18 % : $631 ▪ Quebec -20 % ▪ Ontario -21 % ▪ Atlantic -5 % $513 ▪ Western Canada -20 % -19 % ▪ US - 25 % ▪ Export -34 % ▪ By Category: ▪ Panels -20 % 559 ▪ Lumber -16 % 459 ▪ BMATS -10 % ▪ Flooring -33 % (1) ▪ Average Transaction Value Decrease
Slide 16: GP, Net Earnings and EPS
2023 GP , NET EARNINGS AND EPS (1) (2) $ Gross Profit (1) $ Net Earnings EPS (2) (in millions) (in millions) $33 $3.82 $136 $112 $15 $1.72 2022 2023 2022 2023 2022 2023 (1) Non-IFRS Measure. See “Non-IFRS Financial Measures”. (2) EPS = Net Earnings per Share
Slide 17: Bank Indebtedness: 7-Year Comparative
7-YEAR COMPARATIVE BANK INDEBTEDNESS Bank Indebtedness $ (in millions) $51 $41 $30 $24 $2 $0 $0 2017 2018 2019 2020 2021 2022 2023
Slide 18: Summary of Year-End Outcomes
2023 SUMMARY OF YEAR-END OUTCOMES Achieved Maintained Successful Preserved 2.8 % Net Margins Launch of Strong Return on Through Cost Complementary Balance Sales Efficiencies Lines (goal 3%) Sheet
Slide 19: Q1 2024 Results
Q1 – 2024 RESULTS
Slide 20: Sales
Q1 - 2024 SALES $ Sales ▪ Number of Transactions (in millions) Increased 8%, but Average Value $106 $105 per Transaction Decreased -8 % ▪ By Region: ▪ Canada -1 % : ▪ Quebec +2 % ▪ Ontario -6 % ▪ Atlantic -3 % ▪ Western Canada +9 % ▪ US +6 % ▪ Export -1 % Q1 - 2023 Q1 - 2024 (1) Calculated by dividi
Slide 21: GP, Net Earnings and EPS
Q1 - 2024 GP , NET EARNINGS AND (1) EPS (2) $ Gross Profit (1) $ Net Earnings EPS (2) (in millions) (in millions) (in millions) $22 $23 -$0.1 -$0.01 -$0.02 -$0.2 Q1 - 2023 Q1 - 2024 Q1 - 2023 Q1 - 2024 Q1 - 2023 Q1 - 2024 (1) Non-IFRS Measure. See “Non-IFRS Financial Measures”. (2) EPS = Net Earning
Slide 22: Expected Market Conditions
2024 EXPECTED MARKET CONDITIONS • Steep decline in single-family unit construction • Multi-family unit construction poised for growth • Severely reduced hardwood production with consolidation • Western softwood political and regulatory environment to limit supply • Volatile cost of logistics to impa
Slide 23: Driving Strategic Growth
2024 DRIVING STRATEGIC GROWTH RECRUITMENT AND RETENTION OF KEY TALENT • Strategic business or asset acquisitions • Enhanced core offering and service to the industrial sector • Complementary product diversification • Strengthen footprint in Western Canada • Pursuit of new overseas markets
Slide 24: Projects
2023 PROJECTS
Slide 25: US Coast Guard Academy: Marine Center of Excellence
PROJECTS US COAST GUARD ACADEMY: MARINE CENTER OF EXCELLENCE NEW LONDON, CT
Slide 26: École Tournesol
PROJECTS ÉCOLE TOURNESOL MONT-TREMBLANT, QC
Slide 27: Quai du Vieux-Port
PROJECTS QUAI DU VIEUX-PORT MONTRÉAL, QC
Slide 28: Hiram House Camp Aquatic Centre
PROJECTS HIRAM HOUSE CAMP AQUATIC CENTRE CHAGRIN FALLS, OH
Slide 29: Lower Brewers Swing Bridge
PROJECTS LOWER BREWERS SWING BRIDGE KINGSTON, ON
Slide 30: Hinkley Water Treatment Plant
PROJECTS HINKLEY WATER TREATMENT PLANT PROSPECT, NY
Slide 31: Centre Aquatique
PROJECTS CENTRE AQUATIQUE MONT ST. HILAIRE, QC
Slide 32: Question Period
QUESTION PERIOD