Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

December 19, 2013 10:03 ET

Goodfellow Reports its Results for the First Quarter Ended November 30, 2013

DELSON, QUEBEC--(Marketwired - Dec. 19, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2013. The Company generated net earnings of $1.2 million or $0.14 per share compared to net earnings of $0.7 million or $0.09 per share a year ago. Consolidated sales for the first quarter were $110.4 million compared to $112.0 million for the same period a year ago. Sales in the US and export activities were strong throughout the first quarter while the economy and housing starts in Canada faced some headwind. Sales grew in most regions except Quebec and the Atlantic provinces where demand from retailers and manufacturers declined rapidly in the latter part of the quarter. Ontario, Western Canada, the US and exports posted a good performance to offset this decline. On the operating side, many measures were taken to reduce our cost structure. As a result, direct, selling and administrative expenses decreased 2.5% or $0.5 million.

"Business conditions remain very tenuous and competitive going into this early winter in Canada. We must be very careful managing our working capital." said Richard Goodfellow, President and Chief Executive Officer. "The decline in the Canadian dollar should yield benefits for us and our manufacturing customer base."

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 First Quarter ended November 30, 2013 and 2012
(in thousands of dollars, except per share amounts)
2013 2012
$ $
Sales 110,366 112,047
Expenses
Cost of goods sold 89,104 90,899
Selling, administrative and general expenses 19,177 19,665
Net financial costs 443 442
108,724 111,006
Earnings before income taxes 1,642 1,041
Income taxes 476 302
Net earnings, being comprehensive income 1,166 739
Earnings per share
Basic and diluted 0.14 0.09
GOODFELLOW INC.
Consolidated Statements of Financial Position
As at November 30, 2013 and 2012
(in thousands of dollars)
2013 2012
$ $
Assets
Current Assets
Cash and cash equivalents 320 398
Trade and other receivables 52,545 56,196
Income taxes recoverable - -
Inventories 88,644 79,513
Prepaid expenses 2,553 2,010
Total Current Assets 144,062 138,117
Non-Current Assets
Property, plant and equipment 35,145 36,376
Defined benefit plan asset 1,220 -
Deferred tax asset - 167
180,427 174,660
Liabilities
Current liabilities
Bank indebtedness 30,639 28,886
Trade and other payables 27,332 26,140
Income taxes payable 538 9
Current portion of long term debt 50 -
Total Current Liabilities 58,559 55,035
Non-Current Liabilities
Provisions 1,479 1,449
Long Term Debt 100 -
Deferred income taxes 2,393 -
Defined benefit plan obligation 1,293 10,051
Total Non-Current Liabilities 5,265 11,500
63,824 66,535
Shareholders' equity
Share capital 9,152 9,152
Retained earnings 107,451 98,973
116,603 108,125
180,427 174,660
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the First Quarter ended November 30, 2013 and 2012
(in thousands of dollars)
2013 2012
$ $
Cash Flows Used in Operating Activities
Net Earnings 1,166 739
Adjustments for :
Depreciation 633 661
Accretion expense on environmental provision 8 7
Gain on disposal of fixed assets (5 ) -
Income tax expense 476 302
Interest expense 214 215
Funding in excess of pension plan expense (552 ) (503 )
1,940 1,421
Changes in non-cash working capital items 4,621 9,631
Interest paid (176 ) (193 )
Income taxes paid (680 ) (314 )
3,765 9,124
Cash Flows From (Used In) Financing Activities
Decrease in bank loans (8,000 ) (6,000 )
Increase in banker's acceptances 1,000 1,000
Redemption of shares - (14 )
Dividends paid (1,701 ) (1,275 )
(8,701 ) (6,289 )
Cash Flows Used In Investing Activities
Acquisition of property, plant and equipment (360 ) (1,294 )
Proceeds on disposal of capital assets 10 -
(350 ) (1,294 )
Net cash inflow (outflow) (3,346 ) 2,962
Cash position, beginning of year (4,973 ) (8,450 )
Cash position, end of year (8,319 ) (5,488 )
Cash position is comprised of :
Cash and cash equivalents 320 398
Bank overdraft (8,639 ) (5,886 )
(8,319 ) (5,488 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the First Quarter ended November 30, 2013 and 2012
(in thousands of dollar)
Share Capital Retained Earnings
Total
$ $ $
Balance as at August 31, 2012 9,154 99,521 108,675
Net earnings - 739 739
Transactions with owners, recorded directly in shareholders' equity
Dividends - (1,275 ) (1,275 )
Redemption of Shares (2 ) (12 ) (14 )
Balance as at November 30, 2012 9,152 98,973 108,125
Balance as at August 31, 2013 9,152 107,986 117,138
Net earnings - 1,166 1,166
Transactions with owners, recorded directly in shareholders' equity
Dividends - (1,701 ) (1,701 )
Balance as at November 30, 2013 9,152 107,451 116,603

Contact Information