Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

November 06, 2013 14:46 ET

Goodfellow Reports its Results for the Fiscal Year Ended August 31, 2013 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - Nov. 6, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2013. The Company generated net earnings of $5.3 million or $0.62 per share compared to net earnings of $4.4 million or $0.51 per share a year ago. Consolidated sales for the fiscal year 2013 were $483.5 million compared to $500.7 million for the same period a year ago. Fiscal 2012-2013 main focus was on maintaining sales levels and restoring margin discipline. Our core lumber business performed well and was a major component of our gross margin improvements. During Fiscal 2013, lumber sales were positively impacted by the demand for hardwood lumber and our efforts to widen our distribution network in all of our traditional lumber markets.

For the fourth quarter of Fiscal 2013, the Company generated net income of $3.0 million or $0.35 per share compared to $2.5 million or $0.29 per share in the same quarter last year. Consolidated sales declined 10% to $137.8 million compared to $152.3 million for the same period a year ago.

"The 2012-2013 fiscal year was one that again yielded a slight improvement over the previous year but was far from our objectives and again overall not acceptable." said Richard Goodfellow, President and Chief Executive Officer. "We continue however to look for opportunities across the board and draw strength from our diverse product and geographic coverage".

The Board of Directors of Goodfellow Inc. declared an eligible dividend of $0.20 per share payable November 29, 2013, to all shareholders of record as of November 15, 2013.

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.
Consolidated Statements of Comprehensive Income
For the years ended August 31, 2013 and 2012
(in thousands of dollars, except per share amounts)
2013 2012
$ $
Sales 483,485 500,688
Expenses
Cost of goods sold 393,553 413,501
Selling, administrative and general expenses 80,675 79,330
Net financial costs 1,943 1,794
476,171 494,625
Earnings before income taxes 7,314 6,063
Income taxes 2,030 1,708
Net earnings, being comprehensive income 5,284 4,355
Earnings per share
Basic and diluted 0.62 0.51
GOODFELLOW INC.
Consolidated Statements of Financial Position
As at August 31, 2013 and 2012
(in thousands of dollars)
2013 2012
$ $
Assets
Current Assets
Cash and cash equivalents 197 707
Trade and other receivables 72,838 83,083
Inventories 74,255 63,736
Prepaid expenses 3,433 3,474
Total Current Assets 150,723 151,000
Non-Current Assets
Property, plant and equipment 35,422 35,743
Defined benefit plan asset 1,981 1,545
Total Non-Current Assets 37,403 37,288
Total Assets 188,126 188,288
Liabilities
Current liabilities
Bank indebtedness 34,169 37,157
Trade and other payables 29,457 29,060
Income taxes payable 744 22
Current portion of long term debt 38 -
Total Current Liabilities 64,408 66,239
Non-Current Liabilities
Provision 1,471 1,442
Deferred income taxes 2,834 2,514
Defined benefit plan obligation 972 2,057
Long term debt 112 -
Total Non-Current Liabilities 5,389 6,013
Total Liabilities 69,797 72,252
Shareholders' equity
Share capital 9,152 9,154
Retained earnings 109,177 106,882
118,329 116,036
Total Liabilities and Shareholders' Equity 188,126 188,288
GOODFELLOW INC.
Consolidated Statements of Cash Flows
Years ended August 31, 2013 and 2012
(in thousands of dollars)
2013 2012
$ $
Operating Activities
Net Earnings 5,284 4,355
Adjustments for :
Depreciation 2,758 2,872
Accretion expense on environmental provision 45 120
Decrease in environmental provision (16 ) (176 )
Deferred income taxes 320 319
Income tax expense 1,710 1,389
Gain on disposal of property, plant and equipment (65 ) -
Interest expense 1,165 961
Funding in excess of pension plan expense (1,521 ) (1,536 )
9,680 8,304
Changes in non-cash working capital items 265 (14,180 )
Interest paid (1,135 ) (975 )
Income taxes (recovered) paid (988 ) 2,341
(1,858 ) (12,814 )
Net Cash Flows from (used in) Operating Activities 7,822 (4,510 )
Financing Activities
Increase in bank loans 2,000 -
(Decrease) Increase in banker's acceptances (1,000 ) 9,000
Long term debt 150 -
Redemption of shares (14 ) (515 )
Dividends paid (2,977 ) (1,708 )
(1,841 ) 6,777
Investing Activities
Acquisition of property, plant and equipment (2,571 ) (1,310 )
Proceeds on disposal of property, plant and equipment 68 -
(2,503 ) (1,310 )
Net cash inflow 3,478 957
Cash position, beginning of year (8,450 ) (9,407 )
Cash position, end of year (4,972 ) (8,450 )
Cash position is comprised of :
Cash and cash equivalents 197 707
Bank overdraft (5,169 ) (9,157 )
(4,972 ) (8,450 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
Years ended August 31, 2013 and 2012
(in thousands of dollars)
Share
Capital
Retained
Earnings

Total
$ $ $
Balance as at August 31, 2011 9,222 104,682 113,904
Net earnings - 4,355 4,355
Transactions with owners, recorded directly in shareholders' equity
Dividends - (1,708 ) (1,708 )
Repurchase of shares (68 ) (447 ) (515 )
Balance as at August 31, 2012 9,154 106,882 116,036
Net earnings - 5,284 5,284
Transactions with owners, recorded directly in shareholders' equity
Dividends - (2,977 ) (2,977 )
Repurchase of Shares (2 ) (12 ) (14 )
Balance as at August 31, 2013 9,152 109,177 118,329

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