PFB : Q3 2021 Financial Statement

Condensed Interim Consolidated Financial Statements

For the three and nine month periods ended September 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 nine month periods ended September 30, 2021 and 2020

The accompanying unaudited condensed interim consolidated financial statements of PFB Corporation for the three and nine month periods ended September 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: October 22, 2021

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Condensed Interim Consolidated Statements of Income

For the three and nine month periods ended September 30, 2021 and 2020

Thousands of Canadian dollars, except per share amounts

	Three month periods	Nine month periods
	ended September 30	ended September 30
Note	2021	2020	2021	2020

Sales	5	$ 47,981	$ 41,986	$ 114,088	$ 97,737
Cost of sales	7	(34,799)	(26,569)	(84,411)	(67,052)
Gross profit		13,182	15,417	29,677	30,685
Selling expenses		(3,135)	(3,118)	(8,891)	(8,995)
Administrative expenses		(2,232)	(2,317)	(5,940)	(5,956)
Other (losses) gains	16		(44)		(7)		(29)		99
Operating income			7,771		9,975	14,817	15,833
Insurance claim - gain			-		-		-		65
Investment income			5		5		32		55
Finance costs			(264)		(278)		(802)		(850)
Income before taxes			7,512		9,702	14,047	15,103
Income taxes expense		(1,712)	(2,371)	(3,346)	(3,676)
Net income for the period		$ 5,800	$ 7,331	$ 10,701	$ 11,427
Earnings per share - $ per share
Basic	6	$	0.85	$	1.09	$	1.57	$	1.70
Diluted	6	$	0.81	$	1.08	$	1.50	$	1.68
Weighted average number of common shares outstanding
Basic	6	6,797,003	6,752,166	6,797,003	6,711,539
Diluted	6	7,118,087	6,855,796	7,120,645	6,807,121

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 nine month periods ended September 30, 2021 and 2020

Thousands of Canadian dollars

		Three month periods		Nine month periods
		ended September 30		ended September 30
Note		2021		2020		2021		2020
Net income for the period	$	5,800	$	7,331	$	10,701	$	11,427
Other comprehensive gain (loss) income:
Items that may subsequently be reclassified to income:
Foreign currency translation adjustments
Exchange differences on translating foreign operations,		908		(596)		77		683
net of tax
Other comprehensive gain (loss) income for the period		908		(596)		77		683
Comprehensive income for the period	$	6,708	$	6,735	$	10,778	$	12,110

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 September 30, 2021 and 2020, and December 31, 2020

Thousands of Canadian dollars

	Note	September 30, 2021	September 30, 2020	December 31, 2020
ASSETS
Current assets
Cash and cash equivalents	17	$	34,088	$	29,345	$	32,271
Cash - restricted	17		2,467		3,216		2,033
Trade receivables	17		18,342		15,427		10,692
Inventories	7		14,624		11,244		10,061
Prepaid expenses			950		899		546
Contract costs	8		799		403		732
Total current assets			71,270		60,534		56,335
Non-current assets
Marketable securities - restricted	17		1,483		1,483		1,483
Property, plant and equipment	11		32,050		34,187		33,400
Right-of-use assets	12		5,839		6,498		6,287
Intangible assets			1,341		1,510		1,410
Goodwill			2,242		2,320		2,241
Accrued defined benefit pension plan			37		304		37
Deferred income tax assets			196		355		313
Total non-current assets			43,188		46,657		45,171
Total assets		$	114,458	$	107,191	$	101,506
LIABILITIES
Current Liabilities
Trade and other payables	17	$	13,350	$	10,871	$	11,661
Contract liabilities	9		12,660		9,719		7,719
Income taxes payable			414		2,311		1,999
Debt	13, 15, 17		7,578		370		373
Lease obligations	14, 15		1,159		1,153		1,161
Total current liabilities			35,161		24,424		22,913
Non-current liabilities
Debt	13, 15, 17		-		7,577		7,483
Lease obligations	14, 15		7,336		7,959		7,734
Deferred income tax liabilities			1,208		1,196		1,410
Total non-current liabilities			8,544		16,732		16,627
Total liabilities			43,705		41,156		39,540
SHAREHOLDERS' EQUITY
Common shares			22,014		22,014		22,014
Equity-settled employee benefits reserve			174		108		125
Accumulated other comprehensive income			2,296		3,821		2,219
Retained earnings			46,269		40,092		37,608
Shareholders' equity			70,753		66,035		61,966
Total liabilities and shareholders' equity		$	114,458	$	107,191	$	101,506

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

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