DELSON, QUEBEC--(Marketwire - Nov. 9, 2011) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2011. The Company generated net earnings of $3.0 million or $0.35 per share compared to a net earnings of $12.7 million or $1.48 per share a year ago. Consolidated sales for the fiscal year 2011 were $466.8 million compared to $504.5 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital items) for fiscal 2011 decreased to $4.7 million from $13.8 million for the same period last year. The sales decline was in big part due to the lower demand for flooring products linked with the absence of the Home Renovation Tax Credit which was in full effect during the first six months last year and the slowing business conditions overall in the lumber distribution. The Canadian housing market declined slightly during fiscal 2011 compared to last year.
The Company generated net income of $2.5 million or $0.29 per share during the fourth quarter of fiscal 2011 compared to a net income of $4.9 million or $0.57 per share a year ago. Consolidated sales for the fourth quarter of fiscal 2011 were $135.0 million compared to $147.4 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital) for the fourth quarter of fiscal 2011 decreased to $2.8 million from $5.6 million for the same period last year.
"As warned in last year's annual report, fiscal 2011 was a slowing situation" said Richard Goodfellow, President and Chief Executive Officer. "Despite these declines, we continued to grow our market share in most areas of activity while attempting to operate at a lower cost level with reduced inventories."
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 Earnings and Comprehensive Income |
| Years ended August 31, 2011 and 2010 |
| (in thousands of dollars, except per share amounts) |
| 2011 | 2010 | ||
| $ | $ | ||
| Sales | 466,809 | 504,477 | |
| Expenses | |||
| Cost of goods sold, selling, administrative, and general expenses | 458,968 | 483,254 | |
| Amortization | 1,556 | 1,507 | |
| Financial | 1,559 | 1,251 | |
| Foreign currency loss | 523 | 368 | |
| 462,606 | 486,380 | ||
| Earnings before income taxes | 4,203 | 18,097 | |
| Income taxes | 1,221 | 5,434 | |
| Net earnings, being Comprehensive Income | 2,982 | 12,663 | |
| Earnings per share | |||
| Basic and diluted | 0.35 | 1.48 | |
| GOODFELLOW INC. |
| Consolidated Statements of Retained Earnings |
| Years ended August 31, 2011 and 2010 |
| (in thousands of dollars) |
| 2011 | 2010 | |
| $ | $ | |
| Balance, beginning of year | 106,880 | 101,932 |
| Net earnings | 2,982 | 12,663 |
| 109,862 | 114,595 | |
| Dividends | (3,428) | (7,715) |
| Balance, end of year | 106,434 | 106,880 |
| GOODFELLOW INC. |
| Consolidated Balance Sheets as at August 31, 2011 and 2010 |
| (in thousands of dollars) |
| 2011 | 2010 | ||
| $ | $ | ||
| Assets | |||
| Current assets | |||
| Cash | 210 | 548 | |
| Accounts receivable | 71,284 | 81,184 | |
| Income taxes recoverable | 3,708 | - | |
| Inventories | 58,722 | 63,367 | |
| Prepaid expenses | 1,699 | 1,647 | |
| 135,623 | 146,746 | ||
| Capital assets | 30,339 | 30,538 | |
| Deferred pension asset | 7,199 | 6,520 | |
| 173,161 | 183,804 | ||
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 28,617 | 27,132 | |
| Accounts payable and accrued liabilities | 25,913 | 35,964 | |
| Income taxes payable | - | 1,584 | |
| 54,530 | 64,680 | ||
| Future income taxes | 2,975 | 3,022 | |
| 57,505 | 67,702 | ||
| Shareholders' equity | |||
| Capital stock | 9,222 | 9,222 | |
| Retained earnings | 106,434 | 106,880 | |
| 115,656 | 116,102 | ||
| 173,161 | 183,804 | ||
| GOODFELLOW INC. |
| Consolidated Statements of Cash Flows |
| Years ended August 31, 2011 and 2010 |
| (in thousands of dollars) |
| 2011 | 2010 | |||||
| $ | $ | |||||
| Cash Flows from Operating Activities | ||||||
| Net earnings | 2,982 | 12,663 | ||||
| Adjustments for: | ||||||
| Amortization | 1,556 | 1,507 | ||||
| Amortization included in cost of goods sold | 1,002 | 1,046 | ||||
| Future income taxes | (47 | ) | 348 | |||
| (Gain) loss on disposal of capital assets | (117 | ) | 8 | |||
| Funding of pension plan in excess of expense | (679 | ) | (1,819 | ) | ||
| 4,697 | 13,753 | |||||
| Changes in non-cash working capital items | (812 | ) | (25,057 | ) | ||
| 3,885 | (11,304 | ) | ||||
| Cash Flows (used in) from Financing Activities | ||||||
| (Decrease) increase in bank loan | (4,000 | ) | 13,000 | |||
| Increase in banker's acceptances | - | 10,000 | ||||
| Dividends | (3,428 | ) | (7,715 | ) | ||
| (7,428 | ) | 15,285 | ||||
| Cash flows used in investing activities | ||||||
| Acquisition of capital assets | (2,448 | ) | (2,745 | ) | ||
| Proceeds on disposal of capital assets | 168 | 27 | ||||
| (2,280 | ) | (2,718 | ) | |||
| Net cash (outflow) inflow | (5,823 | ) | 1,263 | |||
| Cash Position, beginning of year | (3,584 | ) | (4,847 | ) | ||
| Cash Position, end of year | (9,407 | ) | (3,584 | ) | ||
| Cash Position is comprised of: | ||||||
| Cash | 210 | 548 | ||||
| Bank overdraft | (9,617 | ) | (4,132 | ) | ||
| (9,407 | ) | (3,584 | ) | |||
| Additional cash flow information | ||||||
| Interest paid | 1,052 | 777 | ||||
| Income taxes paid | 6,560 | 3,741 | ||||
| Unpaid fixed assets | 3 | 41 | ||||
Contact Information:
Richard Goodfellow
President and CEO
(450) 635-6511
(450) 635-3730 (FAX)
info@goodfellowinc.com