Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

November 09, 2011 16:36 ET

Goodfellow Reports Its Results for the Fiscal Year Ended August 31, 2011

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)
20112010
$$
Sales466,809504,477
Expenses
Cost of goods sold, selling, administrative, and general expenses458,968483,254
Amortization1,5561,507
Financial1,5591,251
Foreign currency loss523368
462,606486,380
Earnings before income taxes4,20318,097
Income taxes1,2215,434
Net earnings, being Comprehensive Income2,98212,663
Earnings per share
Basic and diluted0.351.48
GOODFELLOW INC.
Consolidated Statements of Retained Earnings
Years ended August 31, 2011 and 2010
(in thousands of dollars)
20112010
$$
Balance, beginning of year106,880101,932
Net earnings2,98212,663
109,862114,595
Dividends(3,428)(7,715)
Balance, end of year106,434106,880
GOODFELLOW INC.
Consolidated Balance Sheets as at August 31, 2011 and 2010
(in thousands of dollars)
20112010
$$
Assets
Current assets
Cash210548
Accounts receivable71,28481,184
Income taxes recoverable3,708-
Inventories58,72263,367
Prepaid expenses1,6991,647
135,623146,746
Capital assets30,33930,538
Deferred pension asset7,1996,520
173,161183,804
Liabilities
Current liabilities
Bank indebtedness28,61727,132
Accounts payable and accrued liabilities25,91335,964
Income taxes payable-1,584
54,53064,680
Future income taxes2,9753,022
57,50567,702
Shareholders' equity
Capital stock9,2229,222
Retained earnings106,434106,880
115,656116,102
173,161183,804
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 earnings2,982 12,663
Adjustments for:
Amortization1,556 1,507
Amortization included in cost of goods sold1,002 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 assets168 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:
Cash210 548
Bank overdraft(9,617)(4,132)
(9,407)(3,584)
Additional cash flow information
Interest paid1,052 777
Income taxes paid6,560 3,741
Unpaid fixed assets3 41

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