DELSON, QUEBEC--(Marketwired - Nov. 6, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2013. The Company generated net earnings of $5.3 million or $0.62 per share compared to net earnings of $4.4 million or $0.51 per share a year ago. Consolidated sales for the fiscal year 2013 were $483.5 million compared to $500.7 million for the same period a year ago. Fiscal 2012-2013 main focus was on maintaining sales levels and restoring margin discipline. Our core lumber business performed well and was a major component of our gross margin improvements. During Fiscal 2013, lumber sales were positively impacted by the demand for hardwood lumber and our efforts to widen our distribution network in all of our traditional lumber markets.
For the fourth quarter of Fiscal 2013, the Company generated net income of $3.0 million or $0.35 per share compared to $2.5 million or $0.29 per share in the same quarter last year. Consolidated sales declined 10% to $137.8 million compared to $152.3 million for the same period a year ago.
"The 2012-2013 fiscal year was one that again yielded a slight improvement over the previous year but was far from our objectives and again overall not acceptable." said Richard Goodfellow, President and Chief Executive Officer. "We continue however to look for opportunities across the board and draw strength from our diverse product and geographic coverage".
The Board of Directors of Goodfellow Inc. declared an eligible dividend of $0.20 per share payable November 29, 2013, to all shareholders of record as of November 15, 2013.
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 years ended August 31, 2013 and 2012 (in thousands of dollars, except per share amounts) |
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2013 | 2012 | ||
$ | $ | ||
Sales | 483,485 | 500,688 | |
Expenses | |||
Cost of goods sold | 393,553 | 413,501 | |
Selling, administrative and general expenses | 80,675 | 79,330 | |
Net financial costs | 1,943 | 1,794 | |
476,171 | 494,625 | ||
Earnings before income taxes | 7,314 | 6,063 | |
Income taxes | 2,030 | 1,708 | |
Net earnings, being comprehensive income | 5,284 | 4,355 | |
Earnings per share | |||
Basic and diluted | 0.62 | 0.51 |
GOODFELLOW INC. Consolidated Statements of Financial Position As at August 31, 2013 and 2012 (in thousands of dollars) |
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2013 | 2012 | ||
$ | $ | ||
Assets | |||
Current Assets | |||
Cash and cash equivalents | 197 | 707 | |
Trade and other receivables | 72,838 | 83,083 | |
Inventories | 74,255 | 63,736 | |
Prepaid expenses | 3,433 | 3,474 | |
Total Current Assets | 150,723 | 151,000 | |
Non-Current Assets | |||
Property, plant and equipment | 35,422 | 35,743 | |
Defined benefit plan asset | 1,981 | 1,545 | |
Total Non-Current Assets | 37,403 | 37,288 | |
Total Assets | 188,126 | 188,288 | |
Liabilities | |||
Current liabilities | |||
Bank indebtedness | 34,169 | 37,157 | |
Trade and other payables | 29,457 | 29,060 | |
Income taxes payable | 744 | 22 | |
Current portion of long term debt | 38 | - | |
Total Current Liabilities | 64,408 | 66,239 | |
Non-Current Liabilities | |||
Provision | 1,471 | 1,442 | |
Deferred income taxes | 2,834 | 2,514 | |
Defined benefit plan obligation | 972 | 2,057 | |
Long term debt | 112 | - | |
Total Non-Current Liabilities | 5,389 | 6,013 | |
Total Liabilities | 69,797 | 72,252 | |
Shareholders' equity | |||
Share capital | 9,152 | 9,154 | |
Retained earnings | 109,177 | 106,882 | |
118,329 | 116,036 | ||
Total Liabilities and Shareholders' Equity | 188,126 | 188,288 |
GOODFELLOW INC. Consolidated Statements of Cash Flows Years ended August 31, 2013 and 2012 (in thousands of dollars) |
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2013 | 2012 | |||||
$ | $ | |||||
Operating Activities | ||||||
Net Earnings | 5,284 | 4,355 | ||||
Adjustments for : | ||||||
Depreciation | 2,758 | 2,872 | ||||
Accretion expense on environmental provision | 45 | 120 | ||||
Decrease in environmental provision | (16 | ) | (176 | ) | ||
Deferred income taxes | 320 | 319 | ||||
Income tax expense | 1,710 | 1,389 | ||||
Gain on disposal of property, plant and equipment | (65 | ) | - | |||
Interest expense | 1,165 | 961 | ||||
Funding in excess of pension plan expense | (1,521 | ) | (1,536 | ) | ||
9,680 | 8,304 | |||||
Changes in non-cash working capital items | 265 | (14,180 | ) | |||
Interest paid | (1,135 | ) | (975 | ) | ||
Income taxes (recovered) paid | (988 | ) | 2,341 | |||
(1,858 | ) | (12,814 | ) | |||
Net Cash Flows from (used in) Operating Activities | 7,822 | (4,510 | ) | |||
Financing Activities | ||||||
Increase in bank loans | 2,000 | - | ||||
(Decrease) Increase in banker's acceptances | (1,000 | ) | 9,000 | |||
Long term debt | 150 | - | ||||
Redemption of shares | (14 | ) | (515 | ) | ||
Dividends paid | (2,977 | ) | (1,708 | ) | ||
(1,841 | ) | 6,777 | ||||
Investing Activities | ||||||
Acquisition of property, plant and equipment | (2,571 | ) | (1,310 | ) | ||
Proceeds on disposal of property, plant and equipment | 68 | - | ||||
(2,503 | ) | (1,310 | ) | |||
Net cash inflow | 3,478 | 957 | ||||
Cash position, beginning of year | (8,450 | ) | (9,407 | ) | ||
Cash position, end of year | (4,972 | ) | (8,450 | ) | ||
Cash position is comprised of : | ||||||
Cash and cash equivalents | 197 | 707 | ||||
Bank overdraft | (5,169 | ) | (9,157 | ) | ||
(4,972 | ) | (8,450 | ) |
GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity Years ended August 31, 2013 and 2012 (in thousands of dollars) |
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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 | - | 4,355 | 4,355 | ||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (1,708 | ) | (1,708 | ) | ||
Repurchase of shares | (68 | ) | (447 | ) | (515 | ) | |
Balance as at August 31, 2012 | 9,154 | 106,882 | 116,036 | ||||
Net earnings | - | 5,284 | 5,284 | ||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (2,977 | ) | (2,977 | ) | ||
Repurchase of Shares | (2 | ) | (12 | ) | (14 | ) | |
Balance as at August 31, 2013 | 9,152 | 109,177 | 118,329 |
Contact Information:
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com