Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

April 14, 2015 11:39 ET

Goodfellow Reports its Results for the Three Months Ended February 28, 2015

DELSON, QUEBEC--(Marketwired - April 14, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2015. The Company reported a net loss of $(0.4) million or $(0.04) per share compared to $(0.3) million or $(0.04) per share a year ago. Consolidated sales for the three months ended February 28, 2015 were $98.1 million compared to $95.4 million last year. Sales in Canada during the first quarter of fiscal 2015 remained stable increasing 0.3% compared to the same period a year ago mainly due to improved market presence in Western Canada, and changes in distribution agreements with retailer's customers group. Sales in the United States for the first quarter ended February 28, 2015 increased 25% on a Canadian dollar basis compared to the same period last year due to the increased market presence and increased demand for our value-added product lines. Finally, Export sales increased 6% during the first quarter of fiscal 2015 compared to the same period a year ago mainly due to increasing demand for value added products in Asia and Europe mitigated by a decrease in the United Kingdom region. On the operating side, variable costs increased slightly due to ramping up of value-added product inventory and increased energy costs related to the cold winter conditions. As a result, direct, selling, and administrative expenses increased to $20.0 million ($18.7 million last year).

"The first quarter is largely an unfulfilled promise. All analysts and industry observers were claiming the return of the good times in the later part of 2014. The combined impact of a soft Canadian dollar and the expectation of substantial economic growth in the USA suggested this was a reasonable scenario. The reality fell short of expectations. A rather difficult winter - extreme cold or lots of snow - certainly had its impact" said Denis Fraser, President and Chief Executive Officer. "Amidst the turmoil we have our share of good stories. Our efforts to get back on track in Ottawa are paying off with over 25% sales increase. International sales are up nearly 6% and our US sales are also very strong posting growth of 20 to 30%. The hardwood division continues to do very well, leveraging the assets acquired in Drummondville last year. We have opened a new branch in Saskatoon which promises a much better penetration of this market. We have solid plans in place to assure substantial growth in 2015."

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 three months ended February 28, 2015 and 2014
(in thousands of dollars, except per share amounts)
(Unaudited)
For the three months ended
February 28
2015
February 28
2014
$ $
Sales 98,097 95,355
Expenses
Cost of goods sold 78,077 76,631
Selling, administrative and general expenses 19,989 18,696
Net financial costs 534 418
98,600 95,745
Earnings before income taxes (503 ) (390 )
Income taxes (146 ) (113 )
Net earnings, being comprehensive income (357 ) (277 )
Earnings per share
Basic and diluted (0.04 ) (0.04 )
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
As at As at As at
February 28
2015
Unaudited
November 30
2014
Audited
February 28
2014
Unaudited
$ $ $
Assets
Current Assets
Cash and cash equivalents 782 860 234
Trade and other receivables 65,829 60,591 56,651
Income taxes receivable 364 - 37
Inventories 119,714 92,257 95,447
Prepaid expenses 5,582 3,271 3,189
Total Current Assets 192,271 156,979 155,558
Non-Current Assets
Property, plant and equipment 36,744 37,020 38,095
Defined benefit plan asset 1,840 1,848 1,374
Total Non-Current Assets 38,584 38,868 39,469
Total Assets 230,855 195,847 195,027
Liabilities
Current liabilities
Bank indebtedness 74,331 43,099 44,041
Trade and other payables 30,861 25,779 28,725
Income taxes payable - 997 -
Provision 952 979 -
Current portion of long term debt 247 229 219
Total Current Liabilities 106,391 71,083 72,985
Non-Current Liabilities
Provision 486 473 1,490
Long term debt 688 692 840
Deferred income taxes 2,535 2,535 2,393
Defined benefit plan obligation 1,626 1,578 993
Total Non-Current Liabilities 5,335 5,278 5,716
Total Liabilities 111,726 76,361 78,701
Shareholders' equity
Share capital 9,152 9,152 9,152
Retained earnings 109,977 110,334 107,174
119,129 119,486 116,326
Total Liabilities and Shareholders' Equity 230,855 195,847 195,027
GOODFELLOW INC.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(Unaudited)
For the three months ended
February 28
2015
February 28
2014
$ $
Operating Activities
Net Earnings (357 ) (277 )
Adjustments for :
Depreciation 731 644
Accretion expense on environmental provision (14 ) 12
Income tax expense (146 ) (113 )
Loss on disposal of property, plant and equipment 37 -
Interest expense 344 230
Funding in deficit (excess) of pension plan expense 57 (453 )
652 43
Changes in non-cash working capital items (29,905 ) (10,031 )
Interest paid (364 ) (352 )
Income taxes paid (1,215 ) (463 )
(31,484 ) (10,846 )
Net Cash Flows from Operating Activities (30,832 ) (10,803 )
Financing Activities
Increase in bank loans 4,500 14,000
Increase in banker's acceptances 20,000 1,000
Long term debt 14 909
24,514 15,909
Investing Activities
Acquisition of property, plant and equipment (506 ) (3,594 )
Proceeds on disposal of property, plant and equipment 14 -
(492 ) (3,594 )
Net cash (outflow) inflow (6,810 ) 1,512
Cash position, beginning of year (3,739 ) (8,319 )
Cash position, end of year (10,549 ) (6,807 )
Cash position is comprised of :
Cash and cash equivalents 782 234
Bank overdraft (11,331 ) (7,041 )
(10,549 ) (6,807 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
(in thousands of dollars)
(Unaudited)
Share
Capital
Retained Earnings
Total
$ $ $
Balance as at November 30, 2013 9,152 107,451 116,603
Net earnings - (277 ) (277 )
Total Comprehensive income 9,152 107,174 116,326
Transactions with owners, recorded directly in shareholders' equity - - -
Balance as at February 28, 2014 9,152 107,174 116,326
Balance as at November 30, 2014 (audited) 9,152 110,334 119,486
Net earnings - (357 ) (357 )
Total Comprehensive income 9,152 109,977 119,129
Transactions with owners, recorded directly in shareholders' equity - - -
Balance as at February 28, 2015 9,152 109,977 119,129

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