Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

October 09, 2014 16:01 ET

Goodfellow Reports its Results for the Fourth Quarter Ended August 31, 2014 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - Oct. 9, 2014) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fourth quarter ended August 31, 2014. The Company reported net earnings of $3.7 million or $0.43 per share compared to net earnings of $3.0 million or $0.35 per share a year ago. Consolidated sales for the fourth quarter were $146.3 million compared to $137.8 million last year. Sales in the Canada and the US were particularly active throughout the fourth quarter due to stronger housing starts both sides of the Border. Export sales slipped during the same period as shipments to the Asian market slowed down. On the operating side, variable costs increased slightly with the higher volume of sales and increased production output during the fourth quarter. As a result, direct, selling, and administrative expenses increased to $21.2 million ($20.9 million last year).

For the twelve months ended August 31, 2014, the Company generated net earnings of $6.6 million or $0.78 per share compared to net earnings of $5.3 million or $0.62 per share a year ago. Consolidated sales for the twelve months of fiscal 2014 were $486.0 million compared to $483.5 million for the same period a year ago.

"The 4th quarter showed considerable improvement in all market areas and products. Helped by record hardwood lumber sales and a strong performance in our Toronto branch, this made up for what was a most difficult preceding winter." said Richard Goodfellow, President and Chief Executive Officer.

Dividend

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.25 per share payable October 30, 2014, to all shareholders of record as of October 17, 2014.

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
(in thousands of dollars, except per share amounts)
Unaudited
Twelve months ended August 31 Three months ended August 31
2014 2013 2014 2013
$ $ $ $
Sales 486,045 483,485 146,289 137,814
Expenses
Cost of goods sold 394,262 393,560 119,217 112,318
Selling, administrative and general expenses 80,274 80,675 21,170 20,857
Net financial costs 2,168 1,943 740 580
476,704 476,178 141,127 133,755
Earnings before income taxes 9,341 7,307 5,162 4,059
Income taxes 2,709 2,028 1,497 1,086
Net earnings, being comprehensive income 6,632 5,279 3,665 2,973
Earnings per share
Basic and diluted 0.78 0.62 0.43 0.35
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
August 31
2014
August 31
2013
(Restated)
$ $
Assets
Current Assets
Cash and cash equivalents 433 197
Trade and other receivables 76,559 72,838
Inventories 98,083 74,255
Prepaid expenses 3,774 3,433
Total Current Assets 178,849 150,723
Non-Current Assets
Property, plant and equipment 37,299 35,422
Defined benefit plan asset 1,520 1,041
Total Non-Current Assets 38,819 36,463
217,668 187,186
Liabilities
Current liabilities
Bank indebtedness 60,434 34,169
Trade and other payables 29,782 29,457
Income taxes payable 1,410 742
Current portion of long term debt 218 38
Total Current Liabilities 91,844 64,406
Non-Current Liabilities
Provisions 1,513 1,471
Long Term Debt 716 112
Deferred income taxes 2,393 2,393
Defined benefit plan obligation 834 1,666
Total Non-Current Liabilities 5,456 5,642
97,300 70,048
Shareholders' equity
Share capital 9,152 9,152
Retained earnings 111,216 107,986
120,368 117,138
217,668 187,186
GOODFELLOW INC.
Consolidated Statements of Cash Flows
(in thousands of dollars)
Unaudited
Twelve months ended August 31 Three months ended August 31
2014 2013 2014 2013
$ $ $ $
Cash Flows Used in Operating Activities
Net Earnings 6,632 5,279 3,665 2,973
Adjustments for :
Depreciation 2,819 2,758 777 709
Accretion expense on environmental provision 43 29 12 30
Deffered Income tax - 320 - 320
Gain on disposal of fixed assets (5 ) (65 ) - (65 )
Income tax expense 2,709 1,708 1,497 766
Interest expense 1,340 1,165 499 390
Funding in excess of pension plan expense (1,311 ) (1,513 ) 56 (336 )
12,227 9,681 6,506 4,787
Changes in non-cash working capital items (27,503 ) 265 12,350 39,668
Interest paid (1,403 ) (1,135 ) (458 ) (313 )
Income taxes paid (2,041 ) (989 ) (445 ) (318 )
(30,947 ) (1,859 ) 11,447 39,037
Cash Flows From (Used In) Financing Activities
(Decrease) Increase in bank loans (6,000 ) 2,000 (2,200 ) 1,000
Increase (decrease) in banker's acceptances 33,000 (1,000 ) (9,000 ) (34,000 )
Long term debt 784 150 (51 ) -
Redemption of shares - (14 ) - -
Dividends paid (3,402 ) (2,977 ) (1,701 ) (1,702 )
24,382 (1,841 ) (12,952 ) (34,702 )
Cash Flows Used In Investing Activities
Acquisition of property, plant and equipment (4,701 ) (2,571 ) (270 ) (443 )
Proceeds on disposal of capital assets 10 68 - 68
(4,691 ) (2,503 ) (270 ) (375 )
Net cash outflow 971 3,478 4,731 8,747
Cash position, beginning of year (4,972 ) (8,450 ) (8,732 ) (13,719 )
Cash position, end of year (4,001 ) (4,972 ) (4,001 ) (4,972 )
Cash position is comprised of :
Cash and cash equivalents 433 197 433 197
Bank overdraft (4,434 ) (5,169 ) (4,434 ) (5,169 )
(4,001 ) (4,972 ) (4,001 ) (4,972 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For The Twelve Months Ended August 31, 2014 and 2013
(in thousands of dollar)
Unaudited
Share
Capital
Retained
Earnings

Total
$ $ $
Balance as at August 31, 2012 9,154 99,521 108,675
Net earnings - 5,279 5,279
Transactions with owners, recorded directly in shareholders' equity
Dividends - (2,977 ) (2,977 )
Redemption of Shares (2 ) (12 ) (14 )
Other Comprehensive income 6,175 6,175
Balance as at August 31, 2013 9,152 107,986 117,138
Net earnings - 6,632 6,632
Transactions with owners, recorded directly in shareholders' equity
Dividends - (3,402 ) (3,402 )
Balance as at August 31, 2014 9,152 111,216 120,368

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