Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

July 08, 2015 15:47 ET

Goodfellow Reports its Results for the Second Quarter Ended May 31, 2015 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - July 8, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the six months ended May 31, 2015. The Company reported a net income of $2.9 million or $0.34 per share compared to $1.8 million or $0.21 per share a year ago. For the three months ended May 31, 2015, the Company reported net income of $3.2 million or $0.38 per share compared to $2.1 million or $0.25 per share a year ago. Consolidated sales for the six months ended May 31, 2015 were $252.1 million compared to $229.4 million last year. Consolidated sales for the three months ended May 31, 2015 were $154.0 million compared to $134.0 million last year. Sales in Canada during the first six months of fiscal 2015 increased 8.8% compared to the same period a year ago mainly due to a strong second quarter from all sales groups and regions. Sales in the United States for the first six months ended May 31, 2015 increased 21% 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. On a non-converted basis, US denominated sales increased 9% compared to last year. Finally, Export sales increased 8% during the first six months 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, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased production output of value-added products, increased selling expenses related to the improved sales performance and increased administration expenses linked with the Saskatoon branch opening.

"With sales up nearly 15% on the quarter and net income up 56% over last year we are happy with our progress so far" said Denis Fraser, President and Chief Executive Officer. "We remain optimistic that we will achieve our sales and financial goals for the year."

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable August 14, 2015, to all shareholders of record as of July 31, 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 and six months ended May 31, 2015 and 2014
(in thousands of dollars, except per share amounts)
(Unaudited)
For the three months ended For the six months ended
May 31
2015
May 31
2014
May 31
2015
May 31
2014
$ $ $ $
Sales 153,975 134,035 252,072 229,390
Expenses
Cost of goods sold (Note 4) 126,325 109,310 204,402 185,941
Selling, administrative and general expenses (Note 4) 22,362 21,231 42,351 39,927
Net financial costs 713 567 1,247 985
149,400 131,108 248,000 226,853
Earnings before income taxes 4,575 2,927 4,072 2,537
Income taxes 1,327 849 1,181 736
Net earnings, being comprehensive income 3,248 2,078 2,891 1,801
Earnings per share
Basic and diluted 0.38 0.25 0.34 0.21
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
As at As at As at
May 31 November 30 May 31
2015 2014 2014
(Unaudited) (Audited) (Unaudited)
$ $ $
Assets
Current Assets
Cash and cash equivalents 494 860 394
Trade and other receivables (Note 6) 98,708 60,591 86,380
Inventories 107,384 92,257 102,153
Prepaid expenses 2,852 3,271 5,014
Total Current Assets 209,438 156,979 193,941
Non-Current Assets
Property, plant and equipment 36,626 37,020 37,807
Defined benefit plan asset 1,832 1,848 1,531
Total Non-Current Assets 38,458 38,868 39,338
Total Assets 247,896 195,847 233,279
Liabilities
Current liabilities
Bank indebtedness (Note 5) 66,227 43,099 76,326
Trade and other payables (Note 11) 52,876 25,779 32,522
Income taxes payable 679 997 359
Provision 941 979 -
Current portion of long term debt (Note 5) 50 229 216
Total Current Liabilities 120,773 71,083 109,423
Non-Current Liabilities
Provision 499 473 1,502
Long term debt (Note 5) 37 692 769
Deferred income taxes 2,535 2,535 2,393
Defined benefit plan obligation 1,675 1,578 788
Total Non-Current Liabilities 4,746 5,278 5,452
Total Liabilities 125,519 76,361 114,875
Shareholders' equity
Share capital 9,152 9,152 9,152
Retained earnings 113,225 110,334 109,252
122,377 119,486 118,404
Total Liabilities and Shareholders' Equity 247,896 195,847 233,279
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months and six months ended May 31, 2015 and 2014
(in thousands of dollars)
(Unaudited)
For the three months ended For the six months ended
May 31 May 31 May 31 May 31
2015 2014 2015 2014
$ $ $ $
Operating Activities
Net Earnings 3,248 2,078 2,891 1,801
Adjustments for :
Depreciation 746 765 1,477 1,409
Accretion expense on environmental provision 3 11 (11 ) 23
(Gain) Loss on disposal of property, plant and
equipment (21 ) - 16 -
Income tax expense 1,327 849 1,181 736
Interest expense 463 397 807 627
Funding in deficit (excess) of pension plan expense 56 (362 ) 113 (815 )
5,822 3,738 6,474 3,781
Changes in non-cash working capital items (Note 14) 4,134 (34,442 ) (25,771 ) (44,473 )
Interest paid (401 ) (417 ) (765 ) (769 )
Income taxes paid (284 ) (453 ) (1,499 ) (916 )
3,449 (35,312 ) (28,035 ) (46,158 )
Net Cash Flows from Operating Activities 9,271 (31,574 ) (21,561 ) (42,377 )
Financing Activities
(Decrease) Increase in bank loans (6,000 ) (9,800 ) (1,500 ) 4,200
Increase in banker's acceptances 2,000 40,000 22,000 41,000
Long term debt (847 ) (74 ) (833 ) 835
(4,847 ) 30,126 19,667 46,035
Investing Activities
Acquisition of property, plant and equipment (611 ) (477 ) (1,117 ) (4,071 )
Proceeds on disposal of property, plant and equipment 3 - 17 -
(608 ) (477 ) (1,100 ) (4,071 )
Net cash inflow (outflow) 3,816 (1,925 ) (2,994 ) (413 )
Cash position, beginning of period (10,549 ) (6,807 ) (3,739 ) (8,319 )
Cash position, end of period (6,733 ) (8,732 ) (6,733 ) (8 732 )
Cash position is comprised of :
Cash and cash equivalents 494 394 494 394
Bank overdraft (Note 5) (7,227 ) (9,126 ) (7,227 ) (9,126 )
(6,733 ) (8,732 ) (6,733 ) (8,732 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the six months ended May 31, 2015 and 2014
(in thousands of dollars)
(Unaudited)
Share
Capital
Retained
Earnings
Total
$ $ $
Balance as at November 30, 2013 9,152 107,451 116,603
Net earnings - 1,801 1,801
Total Comprehensive income 9,152 109,252 118,404
Transactions with owners, recorded directly in shareholders' equity - - -
Balance as at May 31, 2014 9,152 109,252 118,404
Balance as at November 30, 2014 (Audited) 9,152 110,334 119,486
Net earnings - 2,891 2,891
Total Comprehensive income 9,152 113,225 122,377
Transactions with owners, recorded directly in shareholders' equity - - -
Balance as at May 31, 2015 9,152 113,225 122,377

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