November 29, 2016 22:38 ET
DELSON, QUEBEC--(Marketwired - Nov. 29, 2016) - Goodfellow Inc. (TSX:GDL) announced today the completion of its review of accounts undertaken in connection with the discovery of certain discrepancies which led to the announcement on October 13, 2016 of the delay in the filing of its interim financial report, interim management discussion and analysis and interim certificates for the quarter ended August 31, 2016. As a result, the Company restated the consolidated statement of financial position as of May 31, 2016, the Consolidated Statement of Comprehensive Income, Cash Flows and Statement of Change in Shareholders' Equity and Comprehensive Income for the three and six-month periods ended May 31, 2016. The restated interim consolidated financial statements at May 31, 2016 includes adjustments mainly in the inventory valuation following an extensive review process of its new Enterprise Resource Planning (ERP), controls and procedures. The net impact on the statement of financial position was a reduction of $1.1 million in assets, a reduction of $0.2 million in currents liabilities and a reduction of $0.9 million in Shareholders' Equity. The net impact of the adjustments was a reduction of net income from $3.4 million to $2.5 million for the three months ended May 31, 2016. Net income for the six months ended May 31, 2016 decreased from $2.5 million to $1.6 million.
"We are disappointed that inaccuracies impacted our Q2 results. All measures are taken to assure the ongoing accuracy of our reported results. We are assisted by a team from Deloitte to complete this process quickly" said Denis Fraser, President and Chief Executive Officer. "Our results nevertheless, were less than expected. The combination of increased cost related to the implementation of the ERP system and softer margins impacted our profitability."
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
Goodfellow Inc.Denis FraserPresident and CEO450 635-6511450 635-3730 (FAX)email@example.com
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