Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

February 10, 2012 12:08 ET

Goodfellow Reports its Results for the First Quarter Ended November 30, 2011

DELSON, QUEBEC--(Marketwire - Feb. 10, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2011. The accompanying Interim Financial Statements for the first three months ended November 30, 2011 have been prepared in accordance with IFRS. The Company generated net earnings of $0.9 million or $0.10 per share compared to net earnings of $1.0 million or $0.11 per share a year ago. Consolidated sales for the first three months ended November 30, 2011 were $106.0 million compared to $109.4 million in the previous year. Cash flow from operations (excluding non-cash working capital items) for the first quarter of Fiscal 2012 decreased to $1.7 million from $2.1 million for the same period last year. The sales decline was mainly due to the decline from retail customer sales and a reduction of Industrial and Governmental project deliveries in the first quarter of Fiscal 2012. The Canadian housing market remained relatively active increasing 8.4% to 199,500 units on average (Source: CMHC) for the three months ended November 30, 2011 compared to 184,100 units in the first quarter a year ago. The sales decline was mitigated by our focused attention on cost reduction in all areas of our business in order to align our cost structure with expected lower business ahead.

"This result is a continuation of the last 5 quarters - sales declines with sluggish markets and efforts to reduce costs " said Richard Goodfellow, President and Chief Executive Officer. "Many parts of our business continue to show growth and profit while others struggle and are the focus of our efforts. Our clear objective is to maintain and improve overall profitability while growing market share in these most turbulent times."

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.
Condensed Interim Consolidated Statements of Comprehensive Income
(in thousands of dollars, except per share amounts)
(unaudited)
Three Months
ended Nov 30
2011 2010
$ $
Sales 106,039 109,378
Expenses
Cost of goods sold 85,571 87,885
Selling, administrative and general expenses 18,846 19,705
Financial costs 334 398
104,751 107,988
Earnings before income taxes 1,288 1,390
Income taxes 399 431
Net earnings, being comprehensive income 889 959
Earnings per share
Basic and diluted 0.10 0.11
GOODFELLOW INC.
Condensed Interim Consolidated Statement of Financial Position
(in thousands of dollars)
(unaudited)
Nov 30 Nov 30 Aug 31 Sep 1
2011 2010 2011 2010
$ $ $ $
Assets
Current Assets
Cash and cash equivalents 328 562 210 548
Trade and other receivables 55,689 58,418 71,284 81,184
Income taxes recoverable 4,217 486 3,708 -
Inventories 72,339 71,819 58,722 63,367
Prepaid expenses 3,314 2,171 1,699 1,647
Total Current Assets 135,887 133,456 135,623 146,746
Non Current Assets
Property, plant and equipment 36,737 38,057 37,125 37,854
172,624 171,513 172,748 184,600
Liabilities
Current liabilities
Bank indebtedness 28,491 24,058 28,617 27,132
Trade and other payables 24,896 28,034 24,486 34,597
Income taxes payable - - - 1,584
Total Current Liabilities 53,387 52,092 53,103 63,313
Non-Current Liabilities
Provisions 1,506 1,427 1,498 1,400
Deferred income taxes 2,195 2,236 2,195 2,234
Defined benefit plan obligation 1,600 3,041 2,048 3,323
Total Non-Current Liabilities 5,301 6,704 5,741 6,957
58,688 58,796 58,844 70,270
Shareholders' equity
Share capital 9,222 9,222 9,222 9,222
Retained earnings 104,714 103,495 104,682 105,108
113,936 112,717 113,904 114,330
172,624 171,513 172,748 184,600
GOODFELLOW INC.
Condensed Consolidated Statements of Cash Flows
(in thousands of dollars)
(unaudited)
Three Months
ended Nov 30
2011 2010
$ $
Cash Flows Used From Operating Activities
Net Earnings 889 959
Adjustments for :
Depreciation 703 738
Accretion expense on Provisions 8 27
Income tax expenses 399 431
Interest expenses 159 263
Funding in excess of pension plan of expenses (448 ) (282 )
1,710 2,136
Changes in non-cash working capital items 743 7,298
Interest paid (129 ) (332 )
Income taxes paid (908 ) (2,501 )
(294 ) 4,465
Cash Flows Used By Financing Activities
(Decrease) in bank loan (6,000 ) (13,000 )
Increase in banker's acceptances 5,000 10,000
Dividends paid (857 ) (2,572 )
(1,857 ) (5,572 )
Cash Flows Used By Investing Activities
Acquisition of property, plant and equipment (315 ) (941 )
(315 ) (941 )
Net cash (outflow) inflow (756 ) 88
Cash position, beginning of period (9,407 ) (3,584 )
Cash position, end of period (10,163 ) (3,496 )
Cash position is comprised of :
Cash and cash equivalents 328 562
Bank overdraft (10,491 ) (4,058 )
(10,163 ) (3,496 )
GOODFELLOW INC.
Condensed Consolidated Statements of Change in Shareholder's Equity
(in thousands of dollars, except per share amounts)
(unaudited)
Share Capital Retained Earnings
Total
$ $ $
Balance as at September 1, 2011 9,222 104,682 113,904
Net earnings - 889 889
Transactions with owners, recorded directly in equity
Dividends - (857 ) (857 )
Balance as at November 30, 2011 9,222 104,714 113,936
Share Capital Retained Earnings
Total
$ $ $
Balance as at September 1, 2010 9,222 105,108 114,330
Net earnings - 959 959
Transactions with owners, recorded directly in equity
Dividends - (2,572 ) (2,572 )
Balance as at November 30, 2010 9,222 103,495 112,717

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