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) |
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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) |
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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 |
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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) |
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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) |
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Share Capital | Retained Earnings | Total |
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$ | $ | $ | |||||
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:
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com