PFB : Q2 2021 Financial Statement

Condensed Interim Consolidated Financial Statements

For the three and six month periods ended June 30, 2021 and 2020

Condensed Interim Consolidated Financial Statements (Unaudited)

Notice of non-auditor review of condensed interim consolidated financial statements for the three and six month periods ended June 30, 2021 and 2020

The accompanying unaudited condensed interim consolidated financial statements of PFB Corporation for the three and six month periods ended June 30, 2021 and 2020 are the responsibility of the Corporation's management.

The Corporation's independent auditor, KPMG LLP, has not performed a review of these condensed interim consolidated financial statements.

Dated: July 29, 2021

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Condensed Interim Consolidated Statements of Income

For the three and six month periods ended June 30, 2021 and 2020

Thousands of Canadian dollars, except per share amounts

		Three month periods		Six month periods
				ended June 30			ended June 30
	Note		2021		2020		2021		2020
Sales	5	$ 40,049	$ 31,518	$ 66,107	$ 55,751
Cost of sales	7	(30,289)	(21,987)	(49,612)	(40,483)
Gross profit			9,760		9,531	16,495	15,268
Selling expenses		(2,908)	(2,733)	(5,756)	(5,877)
Administrative expenses		(2,074)	(1,905)	(3,708)	(3,639)
Other (losses) gains	16		(41)		195		15		106
Operating income			4,737		5,088		7,046		5,858
Insurance claim - gain			-		65		-		65
Investment income			1		4		27		50
Finance costs			(267)		(282)		(538)		(572)
Income before taxes			4,471		4,875		6,535		5,401
Income taxes expense		(1,224)	(1,125)	(1,634)	(1,305)
Net income for the period		$ 3,247	$	3,750	$ 4,901	$	4,096
Earnings per share - $ per share
Basic	6	$	0.48	$	0.56	$	0.72	$	0.61
Diluted	6	$	0.46	$	0.55	$	0.69	$	0.60

Weighted average number of common shares outstanding

Basic

Diluted

6	6,797,003	6,691,003	6,797,003	6,691,003
6	7,116,407	6,863,296	7,121,527	6,876,010

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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Condensed Interim Consolidated Statements of Comprehensive Income

For the three and six month periods ended June 30, 2021 and 2020

Thousands of Canadian dollars

		Three month periods		Six month periods
		ended June 30		ended June 30
Note		2021		2020		2021		2020
Net income for the period	$	3,247	$	3,750	$	4,901	$	4,096
Other comprehensive (loss) income:
Items that may subsequently be reclassified to income:
Foreign currency translation adjustments
Exchange differences on translating foreign operations,		(451)		(1,128)		(837)		1,279
net of tax
Other comprehensive (loss) income for the period		(451)		(1,128)		(837)		1,279
Comprehensive income for the period	$	2,796	$	2,622	$	4,064	$	5,375

All comprehensive income for the periods is attributable to the shareholders of the Corporation.

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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Condensed Interim Consolidated Balance Sheets

As at June 30, 2021 and 2020, and December 31, 2020

Thousands of Canadian dollars

	Note	June 30, 2021	June 30, 2020	December 31, 2020
ASSETS
Current assets
Cash and cash equivalents	17	$	22,973	$	21,079	$	32,271
Cash - restricted	17		1,389		1,610		2,033
Trade receivables	17		17,637		15,021		10,692
Inventories	7		18,600		13,239		10,061
Income taxes recoverable			649		-		-
Prepaid expenses			1,387		1,251		546
Contract costs	8		878		503		732
Total current assets			63,513		52,703		56,335
Non-current assets
Marketable securities - restricted	17		1,483		1,483		1,483
Property, plant and equipment	11		32,348		34,984		33,400
Right-of-use assets	12		5,720		6,790		6,287
Intangible assets			1,345		1,576		1,410
Goodwill			2,197		2,358		2,241
Accrued defined benefit pension plan			37		304		37
Deferred income tax assets			197		357		313
Total non-current assets			43,327		47,852		45,171
Total assets		$	106,840	$	100,555	$	101,506
LIABILITIES
Current Liabilities
Trade and other payables	17	$	13,093	$	11,510	$	11,661
Contract liabilities	9		11,293		8,400		7,719
Income taxes payable			386		2,191		1,999
Debt	13, 15, 17		7,671		367		373
Lease obligations	14, 15		1,093		1,129		1,161
Total current liabilities			33,536		23,597		22,913
Non-current liabilities
Debt	13, 15, 17		-		7,671		7,483
Lease obligations	14, 15		7,293		8,250		7,734
Deferred income tax liabilities			1,307		1,194		1,410
Total non-current liabilities			8,600		17,115		16,627
Total liabilities			42,136		40,712		39,540
SHAREHOLDERS' EQUITY
Common shares			22,014		21,012		22,014
Equity-settled employee benefits reserve			159		1,042		125
Accumulated other comprehensive income			1,382		4,417		2,219
Retained earnings			41,149		33,372		37,608
Shareholders' equity			64,704		59,843		61,966
Total liabilities and shareholders' equity		$	106,840	$	100,555	$	101,506

The accompanying notes are an integral part of these condensed interim consolidated financial statements.

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