Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2018
DELSON, Quebec, July 05, 2018 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX:GDL) announced today its financial results for the second quarter ended May 31, 2018. For the three months ended May 31, 2018, the Company reported a net income of $1.8 million or $0.21 per share compared to a net loss of $0.5 million or $0.07 per share a year ago. Consolidated sales for the three months ended May 31, 2018 were $133.3 million compared to $139.6 million last year.
For the six months ended May 31, 2018, the Company reported a net income of $0.4 million or $0.04 per share compared to a net loss of $5.9 million or $0.70 per share a year ago. Consolidated sales for the six months ended May 31, 2018 were $230.0 million compared to $253.1 million last year. Sales in Canada decreased 9% compared to the same period a year ago due to decrease in sales of pressure treated wood and hardwood products. Sales also declined in the USA by 16% due to reduced demand for hardwood lumber products. Finally, export sales increased 2% during the first six months of fiscal 2018 compared to the same period a year ago mainly due to increasing demand of hardwood products in Asia and Europe. On the operating side, selling and administrative costs decreased overall by $0.3 million and overall gross profit rose by $8.1 million.
“Despite a very harsh winter and delayed spring the Company regained its profitable trajectory as planned in Q2 2018.” said Patrick Goodfellow, President and Chief Executive Officer. “The Company is focused on investing in the maintenance and upgrade of its existing assets to improve efficiency and increase output. Cost control throughout the organization continues to be a main priority”.
Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
| GOODFELLOW INC. | ||||
| Consolidated Statements of Comprehensive Income | ||||
| For the three and six months ended May 31, 2018 and 2017 | ||||
| (in thousands of dollars, except per share amounts) | ||||
| Unaudited | ||||
| For the three months ended | For the six months ended | |||
| May 31 2018 | May 31 2017 | May 31 2018 | May 31 2017 | |
| $ | $ | $ | $ | |
| Sales | 133,326 | 139,641 | 230,010 | 253,131 |
| Expenses | ||||
| Cost of goods sold | 108,774 | 119,559 | 187,366 | 218,620 |
| Selling, administrative and general expenses | 21,106 | 19,726 | 40,503 | 40,774 |
| Loss on disposal of property, plant and equipment | 37 | 1 | 39 | 13 |
| Net financial costs | 892 | 1,072 | 1,573 | 2,024 |
| 130,809 | 140,358 | 229,481 | 261,431 | |
| Earnings (loss) before income taxes | 2,517 | (717) | 529 | (8,300) |
| Income taxes | 705 | (176) | 148 | (2,358) |
| Total comprehensive income (loss) | 1,812 | (541) | 381 | (5,942) |
| Net earnings (loss) per share - Basic and diluted | 0.21 | (0.07) | 0.04 | (0.70) |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| As at | As at | As at | |
| May 31 2018 | November 30 2017 | May 31 2017 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 1,545 | 1,622 | 1,841 |
| Trade and other receivables | 86,723 | 58,317 | 86,625 |
| Income taxes receivable | 1,612 | 1,589 | 9,564 |
| Inventories | 109,653 | 88,860 | 101,074 |
| Prepaid expenses | 3,732 | 3,007 | 4,490 |
| Total Current Assets | 203,265 | 153,395 | 203,594 |
| Non-Current Assets | |||
| Property, plant and equipment | 35,199 | 36,198 | 37,512 |
| Intangible assets | 4,703 | 4,942 | 5,263 |
| Defined benefit plan asset | 2,403 | 2,413 | 2,233 |
| Investment in a joint venture | 285 | 285 | 3,524 |
| Total Non-Current Assets | 42,590 | 43,838 | 48,532 |
| Total Assets | 245,855 | 197,233 | 252,126 |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 83,343 | 52,309 | 86,586 |
| Trade and other payables | 46,622 | 29,409 | 54,784 |
| Provision | 964 | 938 | 929 |
| Current portion of long-term debt | 77 | 139 | 125 |
| Total Current Liabilities | 131,006 | 82,795 | 142,424 |
| Non-Current Liabilities | |||
| Provision | 471 | 446 | 500 |
| Long-term debt | 49 | 55 | 64 |
| Deferred income taxes | 3,582 | 3,582 | 3,296 |
| Defined benefit plan obligation | 932 | 921 | 1,091 |
| Total Non-Current Liabilities | 5,034 | 5,004 | 4,951 |
| Total Liabilities | 136,040 | 87,799 | 147,375 |
| Shareholders’ equity | |||
| Share capital | 9,152 | 9,152 | 9,152 |
| Retained earnings | 100,663 | 100,282 | 95,599 |
| 109,815 | 109,434 | 104,751 | |
| Total Liabilities and Shareholders’ Equity | 245,855 | 197,233 | 252,126 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the three and six months ended May 31, 2018 and 2017 | ||||
| (in thousands of dollars) | ||||
| Unaudited | ||||
| For the three months ended | For the six months ended | |||
| May 31 2018 | May 31 2017 | May 31 2018 | May 31 2017 | |
| $ | $ | $ | $ | |
| Operating Activities | ||||
| Net earnings (loss) | 1,812 | (541) | 381 | (5,942) |
| Adjustments for : | ||||
| Depreciation | 912 | 957 | 1,814 | 1,906 |
| Accretion expense on provision | 13 | 13 | 26 | 25 |
| Increase (decrease) in provision | 25 | (3) | 25 | (33) |
| Income taxes | 705 | (176) | 148 | (2,358) |
| Loss on disposal of property, plant and equipment | 37 | 1 | 39 | 13 |
| Interest expense | 653 | 782 | 1,129 | 1,474 |
| Funding in deficit of pension plan expense | 29 | 31 | 21 | 47 |
| Share of the losses (profits) of a joint venture | - | 82 | - | (121) |
| 4 186 | 1,146 | 3,583 | (4,989) | |
| Changes in non-cash working capital items | (21,034) | 534 | (32,498) | 16,401 |
| Interest paid | (656) | (807) | (1,342) | (1,492) |
| Income taxes paid | (55) | (52) | (171) | (608) |
| (21,745) | (325) | (34,011) | 14,301 | |
| Net Cash Flows from Operating Activities | (17,559) | 821 | (30,428) | 9,312 |
| Financing Activities | ||||
| Net (decrease) increase in bank loans | (1,000) | 11,000 | (4,000) | - |
| Net increase (decrease) in banker’s acceptances | 14,000 | (8,000) | 30,000 | (8,000) |
| Reimbursement of long-term debt | (34) | (30) | (68) | (73) |
| 12,966 | 2,970 | 25,932 | (8,073) | |
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (316) | (191) | (551) | (401) |
| Increase in intangible assets | (79) | (133) | (112) | (222) |
| Proceeds on disposal of property, plant and equipment | 28 | 23 | 48 | 49 |
| (367) | (301) | (615) | (574) | |
| Net cash (outflow) inflow | (4,960) | 3,490 | (5,111) | 665 |
| Cash position, beginning of period | 162 | (4,735) | 313 | (1,910) |
| Cash position, end of period | (4,798) | (1,245) | (4,798) | (1,245) |
| Cash position is comprised of : | ||||
| Cash | 1,545 | 1,841 | 1,545 | 1,841 |
| Bank overdraft | (6,343) | (3,086) | (6,343) | (3,086) |
| (4,798) | (1,245) | (4,798) | (1,245) | |
| GOODFELLOW INC. | |||
| Consolidated Statements of Change in Shareholders’ Equity | |||
| For the six months ended May 31, 2018 and 2017 | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| Share Capital | Retained Earnings | Total | |
| $ | $ | $ | |
| Balance as at November 30, 2016 (Audited) | 9,152 | 101,541 | 110,693 |
| Net loss | - | (5,942) | (5,942) |
| Total comprehensive loss | - | (5,942) | (5,942) |
| Balance as at May 31, 2017 | 9,152 | 95,599 | 104,751 |
| Balance as at November 30, 2017 (Audited) | 9,152 | 100,282 | 109,434 |
| Net income | - | 381 | 381 |
| Total comprehensive income | - | 381 | 381 |
| Balance as at May 31, 2018 | 9,152 | 100,663 | 109,815 |
| From: | Goodfellow Inc. |
| Patrick Goodfellow | |
| President and CEO | |
| Tel: 450 635-6511 | |
| Fax: 450 635-3730 | |
| Internet: [email protected] |
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