Goodfellow Reports Its Results for the Three Months Ended February 28, 2018
DELSON, Quebec, April 13, 2018 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2018. The Company reported a net loss of $(1.4) million or $(0.17) per share compared to a net loss of $(5.4) million or $(0.63) per share a year ago.
Consolidated sales for the three months ended February 28th, 2018 were $96.7 million compared to $113.5 million last year. Sales in Canada decreased 14% compared to the same period a year ago mainly due to a decrease in Pressure Treated Wood volume. Sales also declined in the export market and the USA by 16% and 22% respectively due to reduced demand for hardwood lumber. On the operating side, selling and administrative costs decreased overall by $1.7 million and overall gross profit before selling and administrative costs rose by $3.7 million.
“It is clear we are moving towards historical result levels for the winter quarter. We are budgeting for a profitable balance of the year. Many measures are being taken to stimulate and grow profitable sales while we keep a very close watch on our cost base” said Patrick Goodfellow, President and Chief Executive Officer. “We continue to receive strong support from our customer and supplier base and employee morale has recovered from the dark days of last year”.
Goodfellow Inc. is a distributor of lumber products, building materials, 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, 2018 and 2017 |
| (in thousands of dollars, except per share amounts) |
| Unaudited |
| For the three months ended | ||||
| February 28 2018 | February 28 2017 | |||
| $ | $ | |||
| Sales | 96,684 | 113,490 | ||
| Expenses | ||||
| Cost of goods sold | 78,592 | 99,061 | ||
| Selling, administrative and general expenses | 19,397 | 21,048 | ||
| Loss on disposal of property, plant and equipment | 2 | 12 | ||
| Net financial costs | 681 | 952 | ||
| 98,672 | 121,073 | |||
| Loss before income taxes | (1,988 | ) | (7,583 | ) |
| Income taxes | (557 | ) | (2,182 | ) |
| Total comprehensive loss | (1,431 | ) | (5,401 | ) |
| Net loss per share - Basic and diluted | (0.17 | ) | (0.63 | ) |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| As at | As at | As at | |
| February 28 2018 | November 30 2017 | February 28 2017 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 1,547 | 1,622 | 935 |
| Trade and other receivables | 63,396 | 58,317 | 70,570 |
| Income taxes receivable | 2,262 | 1,589 | 9,336 |
| Inventories | 102,519 | 88,860 | 113,065 |
| Prepaid expenses | 4,190 | 3,007 | 2,611 |
| Total Current Assets | 173,914 | 153,395 | 196,517 |
| Non-Current Assets | |||
| Property, plant and equipment | 35,684 | 36,198 | 38,085 |
| Intangible assets | 4,800 | 4,942 | 5,347 |
| Defined benefit plan asset | 2,409 | 2,413 | 2,240 |
| Investment in a joint venture | 285 | 285 | 3,606 |
| Total Non-Current Assets | 43,178 | 43,838 | 49,278 |
| Total Assets | 217,092 | 197,233 | 245,795 |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 65,385 | 52,309 | 86,170 |
| Trade and other payables | 37,657 | 29,409 | 48,332 |
| Provision | 938 | 938 | 932 |
| Current portion of long-term debt | 108 | 139 | 124 |
| Total Current Liabilities | 104,088 | 82,795 | 135,558 |
| Non-Current Liabilities | |||
| Provision | 458 | 446 | 488 |
| Long-term debt | 52 | 55 | 95 |
| Deferred income taxes | 3,582 | 3,582 | 3,296 |
| Defined benefit plan obligation | 909 | 921 | 1,066 |
| Total Non-Current Liabilities | 5,001 | 5,004 | 4,945 |
| Total Liabilities | 109,089 | 87,799 | 140,503 |
| Shareholders’ equity | |||
| Share capital | 9,152 | 9,152 | 9,152 |
| Retained earnings | 98,851 | 100,282 | 96,140 |
| 108,003 | 109,434 | 105,292 | |
| Total Liabilities and Shareholders’ Equity | 217,092 | 197,233 | 245,795 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the three months ended February 28, 2018 and 2017 | ||||
| (in thousands of dollars) Unaudited | ||||
| For the three months ended | ||||
| February 28 2018 | February 28 2017 | |||
| $ | $ | |||
| Operating Activities | ||||
| Net loss | (1,431 | ) | (5,401 | ) |
| Adjustments for : | ||||
| Depreciation | 902 | 949 | ||
| Accretion expense on provision | 13 | 12 | ||
| Decrease in provision | - | (30 | ) | |
| Income taxes | (557 | ) | (2,182 | ) |
| Loss on disposal of property, plant and equipment | 2 | 12 | ||
| Interest expense | 476 | 692 | ||
| Funding in (excess) deficit of pension plan expense | (8 | ) | 16 | |
| Share of the profits of a joint venture | - | (203 | ) | |
| (603 | ) | (6 135 | ) | |
| Changes in non-cash working capital items | (11,464 | ) | 15,867 | |
| Interest paid | (686 | ) | (685 | ) |
| Income taxes paid | (116 | ) | (556 | ) |
| (12,266 | ) | 14,626 | ||
| Net Cash Flows from Operating Activities | (12,869 | ) | 8,491 | |
| Financing Activities | ||||
| Net decrease in bank loans | (3,000 | ) | (11,000 | ) |
| Net increase in banker’s acceptances | 16,000 | - | ||
| Reimbursement of long-term debt | (34 | ) | (43 | ) |
| 12,966 | (11,043 | ) | ||
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (235 | ) | (210 | ) |
| Increase in intangible assets | (33 | ) | (89 | ) |
| Proceeds on disposal of property, plant and equipment | 20 | 26 | ||
| (248 | ) | (273 | ) | |
| Net cash outflow | (151 | ) | (2,825 | ) |
| Cash position, beginning of period | 313 | (1,910 | ) | |
| Cash position, end of period | 162 | (4,735 | ) | |
| Cash position is comprised of : | ||||
| Cash | 1,547 | 935 | ||
| Bank overdraft | (1,385 | ) | (5,670 | ) |
| 162 | (4,735 | ) | ||
| GOODFELLOW INC. | |||||
| Consolidated Statements of Change in Shareholders’ Equity | |||||
| For the three months ended February 28, 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 | - | (5,401 | ) | (5,401 | ) |
| Total comprehensive loss | - | (5,401 | ) | (5,401 | ) |
| Balance as at February 28, 2017 | 9,152 | 96,140 | 105,292 | ||
| Balance as at November 30, 2017 (Audited) | 9,152 | 100,282 | 109,434 | ||
| Net loss | - | (1,431 | ) | (1,431 | ) |
| Total comprehensive loss | - | (1,431 | ) | (1,431 | ) |
| Balance as at February 28, 2018 | 9,152 | 98,851 | 108,003 | ||
Goodfellow Inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730
Internet: [email protected]
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