DELSON, QUEBEC--(Marketwire - Dec. 19, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2012. The Company generated net earnings of $0.7 million or $0.09 per share compared to net earnings of $0.9 million or $0.10 per share a year ago. Consolidated sales for the first quarter were $112.0 million compared to $106.0 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital, income tax paid and interest paid) for the first quarter decreased to $1.4 million from $1.7 million for the same period last year. Management's focus on growing sales growth was maintained and as such, consolidated sales grew 6% during the first quarter. Sales grew in most regions except BC and Ontario where demand from retailers and industrial projects declined compared to the first quarter a year ago. Our sales team focused its efforts on value-added lumber products in order to diversify our product mix in many areas of our business. On the operating side, direct, selling and administrative expenses increased 4.4% or $0.8 million due to increased production throughput and lease and rental increases.
"Our first quarter results although minimal in profit met expectations." said Richard Goodfellow, President and Chief Executive Officer. "Business conditions remain sluggish and very competitive. All efforts are being made to improve margins and control costs.
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 First Quarter ended November 30, 2012 and 2011 (in thousands of dollars, except per share amounts) |
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2012 | 2011 | ||
$ | $ | ||
Sales | 112,047 | 106,039 | |
Expenses | |||
Cost of goods sold | 90,899 | 85,571 | |
Selling, administrative and general expenses | 19,665 | 18,846 | |
Net financial costs | 442 | 334 | |
111,006 | 104,751 | ||
Earnings before income taxes | 1,041 | 1,288 | |
Income taxes | 302 | 399 | |
Net earnings, being comprehensive income | 739 | 889 | |
Earnings per share | |||
Basic and diluted | 0.09 | 0.10 |
GOODFELLOW INC. Consolidated Statements of Financial Position As at November 30, 2012 and 2011 (in thousands of dollars) |
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2012 | 2011 | ||
$ | $ | ||
Assets | |||
Current Assets | |||
Cash and cash equivalents | 398 | 328 | |
Trade and other receivables | 56,196 | 55,689 | |
Income taxes recoverable | - | 4,217 | |
Inventories | 79,513 | 72,339 | |
Prepaid expenses | 2,010 | 3,314 | |
Total Current Assets | 138,117 | 135,887 | |
Non-Current Assets | |||
Property, plant and equipment | 36,376 | 36,737 | |
174,493 | 172,624 | ||
Liabilities | |||
Current liabilities | |||
Bank indebtedness | 28,886 | 28,491 | |
Trade and other payables | 26,140 | 24,896 | |
Income taxes payable | 9 | - | |
Total Current Liabilities | 55,035 | 53,387 | |
Non-Current Liabilities | |||
Provisions | 1,449 | 1,506 | |
Deferred income taxes | 2,514 | 2,195 | |
Defined benefit plan obligation | 9 | 1,600 | |
Total Non-Current Liabilities | 3,972 | 5,301 | |
59,007 | 58,688 | ||
Shareholders' equity | |||
Share capital | 9,152 | 9,222 | |
Retained earnings | 106,334 | 104,714 | |
115,486 | 113,936 | ||
174,493 | 172,624 |
GOODFELLOW INC. Consolidated Statements of Cash Flows For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollars) |
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2012 | 2011 | |||||
$ | $ | |||||
Cash Flows Used in Operating Activities | ||||||
Net Earnings | 739 | 889 | ||||
Adjustments for : | ||||||
Depreciation | 661 | 703 | ||||
Accretion expense on environmental provision | 7 | 8 | ||||
Income tax expense | 302 | 399 | ||||
Interest expense | 215 | 159 | ||||
Funding in excess of pension plan expense | (503 | ) | (448 | ) | ||
1,421 | 1,710 | |||||
Changes in non-cash working capital items | 9,631 | 743 | ||||
Interest paid | (193 | ) | (129 | ) | ||
Income taxes paid | (314 | ) | (908 | ) | ||
9,124 | (294 | ) | ||||
Cash Flows From (Used In) Financing Activities | ||||||
Decrease in bank loans | (6,000 | ) | (6,000 | ) | ||
Increase in banker's acceptances | 1,000 | 5,000 | ||||
Redemption of shares | (14 | ) | - | |||
Dividends paid | (1,275 | ) | (857 | ) | ||
(6,289 | ) | (1,857 | ) | |||
Cash Flows Used In Investing Activities | ||||||
Acquisition of property, plant and equipment | (1,294 | ) | (315 | ) | ||
(1,294 | ) | (315 | ) | |||
Net cash inflow (outflow) | 2,962 | (756 | ) | |||
Cash position, beginning of year | (8,450 | ) | (9,407 | ) | ||
Cash position, end of year | (5,488 | ) | (10,163 | ) | ||
Cash position is comprised of : | ||||||
Cash and cash equivalents | 398 | 328 | ||||
Bank overdraft | (5,886 | ) | (10,491 | ) | ||
(5,488 | ) | (10,163 | ) |
GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollar) |
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Share Capital | Retained Earnings | Total |
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$ | $ | $ | |||||
Balance as at August 31, 2011 | 9,222 | 104,682 | 113,904 | ||||
Net earnings | - | 889 | 889 | ||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (857 | ) | (857 | ) | ||
Balance as at November 30, 2011 | 9,222 | 104,714 | 113,936 | ||||
Balance as at August 31, 2012 | 9,154 | 106,882 | 116,036 | ||||
Net earnings | - | 739 | 739 | ||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (1,275 | ) | (1,275 | ) | ||
Redemption of Shares | (2 | ) | (12 | ) | (14 | ) | |
Balance as at November 30, 2012 | 9,152 | 106,334 | 115,486 | ||||
Contact Information:
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com