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.

Consolidated Statements of Comprehensive Income
For the three months ended February 28, 2018 and  2017
(in thousands of dollars, except per share amounts)

    For the three months ended
 February 28
 February 28
 $ $ 
Sales96,684 113,490  
Cost of goods sold78,592 99,061  
Selling, administrative and general expenses19,397 21,048 
Loss on disposal of property, plant and equipment2 12 
Net financial costs681 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)

Consolidated Statements of Financial Position  
(in thousands of dollars)   
 As atAs atAs at
 February 28
November 30
February 28
Current Assets   
Cash1,547 1,622935
Trade and other receivables63,396 58,31770,570
Income taxes receivable2,262 1,5899,336
Inventories102,519 88,860113,065
Prepaid expenses4,190 3,0072,611
Total Current Assets173,914 153,395196,517
Non-Current Assets   
Property, plant and equipment35,684 36,19838,085
Intangible assets4,800 4,9425,347
Defined benefit plan asset2,409 2,4132,240
Investment in a joint venture285 2853,606
Total Non-Current Assets43,178 43,83849,278
Total Assets217,092 197,233245,795
Current liabilities   
Bank indebtedness65,385 52,30986,170
Trade and other payables37,657 29,40948,332
Provision938 938932
Current portion of long-term debt108 139124
Total Current Liabilities104,088 82,795135,558
Non-Current Liabilities   
Provision458 446488
Long-term debt52 5595
Deferred income taxes3,582 3,5823,296
Defined benefit plan obligation909 9211,066
Total Non-Current Liabilities5,001 5,0044,945
Total Liabilities109,089 87,799140,503
Shareholders’ equity   
Share capital9,152 9,1529,152
Retained earnings98,851 100,28296,140
 108,003 109,434105,292
Total Liabilities and Shareholders’ Equity217,092 197,233245,795

Consolidated Statements of Cash Flows  
For the three months ended February 28, 2018 and 2017
(in thousands of dollars)
   For the three months ended
 February 28
 February 28
 $ $ 
Operating Activities  
Net loss(1,431)(5,401)
Adjustments for :  
Depreciation902  949 
Accretion expense on provision13  12 
Decrease in provision-  (30)
Income taxes(557)(2,182)
Loss on disposal of property, plant and equipment2  12 
Interest expense476  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)
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 acceptances16,000  - 
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 equipment20  26 
Net cash outflow(151)(2,825)
Cash position, beginning of period313  (1,910)
Cash position, end of period162  (4,735)
Cash position is comprised of :  
Cash1,547  935 
Bank overdraft(1,385)(5,670)
 162  (4,735)

Consolidated Statements of Change in Shareholders’ Equity   
For the three months ended February 28, 2018 and 2017
(in thousands of dollars)   
   $$ $ 
Balance as at November 30, 2016 (Audited)9,152101,541 110,693 
Net loss-(5,401)(5,401)
Total comprehensive loss-(5,401)(5,401)
Balance as at February 28, 20179,15296,140 105,292 
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, 20189,152 98,851  108,003  

Goodfellow Inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730