DELSON, QUEBEC--(Marketwired - April 14, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2015. The Company reported a net loss of $(0.4) million or $(0.04) per share compared to $(0.3) million or $(0.04) per share a year ago. Consolidated sales for the three months ended February 28, 2015 were $98.1 million compared to $95.4 million last year. Sales in Canada during the first quarter of fiscal 2015 remained stable increasing 0.3% compared to the same period a year ago mainly due to improved market presence in Western Canada, and changes in distribution agreements with retailer's customers group. Sales in the United States for the first quarter ended February 28, 2015 increased 25% on a Canadian dollar basis compared to the same period last year due to the increased market presence and increased demand for our value-added product lines. Finally, Export sales increased 6% during the first quarter of fiscal 2015 compared to the same period a year ago mainly due to increasing demand for value added products in Asia and Europe mitigated by a decrease in the United Kingdom region. On the operating side, variable costs increased slightly due to ramping up of value-added product inventory and increased energy costs related to the cold winter conditions. As a result, direct, selling, and administrative expenses increased to $20.0 million ($18.7 million last year).
"The first quarter is largely an unfulfilled promise. All analysts and industry observers were claiming the return of the good times in the later part of 2014. The combined impact of a soft Canadian dollar and the expectation of substantial economic growth in the USA suggested this was a reasonable scenario. The reality fell short of expectations. A rather difficult winter - extreme cold or lots of snow - certainly had its impact" said Denis Fraser, President and Chief Executive Officer. "Amidst the turmoil we have our share of good stories. Our efforts to get back on track in Ottawa are paying off with over 25% sales increase. International sales are up nearly 6% and our US sales are also very strong posting growth of 20 to 30%. The hardwood division continues to do very well, leveraging the assets acquired in Drummondville last year. We have opened a new branch in Saskatoon which promises a much better penetration of this market. We have solid plans in place to assure substantial growth in 2015."
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 three months ended February 28, 2015 and 2014 | |||||
(in thousands of dollars, except per share amounts) | |||||
(Unaudited) | |||||
For the three months ended | |||||
February 28 2015 |
February 28 2014 |
||||
$ | $ | ||||
Sales | 98,097 | 95,355 | |||
Expenses | |||||
Cost of goods sold | 78,077 | 76,631 | |||
Selling, administrative and general expenses | 19,989 | 18,696 | |||
Net financial costs | 534 | 418 | |||
98,600 | 95,745 | ||||
Earnings before income taxes | (503 | ) | (390 | ) | |
Income taxes | (146 | ) | (113 | ) | |
Net earnings, being comprehensive income | (357 | ) | (277 | ) | |
Earnings per share | |||||
Basic and diluted | (0.04 | ) | (0.04 | ) |
GOODFELLOW INC. | ||||
Consolidated Statements of Financial Position | ||||
(in thousands of dollars) | ||||
As at | As at | As at | ||
February 28 2015 Unaudited |
November 30 2014 Audited |
February 28 2014 Unaudited |
||
$ | $ | $ | ||
Assets | ||||
Current Assets | ||||
Cash and cash equivalents | 782 | 860 | 234 | |
Trade and other receivables | 65,829 | 60,591 | 56,651 | |
Income taxes receivable | 364 | - | 37 | |
Inventories | 119,714 | 92,257 | 95,447 | |
Prepaid expenses | 5,582 | 3,271 | 3,189 | |
Total Current Assets | 192,271 | 156,979 | 155,558 | |
Non-Current Assets | ||||
Property, plant and equipment | 36,744 | 37,020 | 38,095 | |
Defined benefit plan asset | 1,840 | 1,848 | 1,374 | |
Total Non-Current Assets | 38,584 | 38,868 | 39,469 | |
Total Assets | 230,855 | 195,847 | 195,027 | |
Liabilities | ||||
Current liabilities | ||||
Bank indebtedness | 74,331 | 43,099 | 44,041 | |
Trade and other payables | 30,861 | 25,779 | 28,725 | |
Income taxes payable | - | 997 | - | |
Provision | 952 | 979 | - | |
Current portion of long term debt | 247 | 229 | 219 | |
Total Current Liabilities | 106,391 | 71,083 | 72,985 | |
Non-Current Liabilities | ||||
Provision | 486 | 473 | 1,490 | |
Long term debt | 688 | 692 | 840 | |
Deferred income taxes | 2,535 | 2,535 | 2,393 | |
Defined benefit plan obligation | 1,626 | 1,578 | 993 | |
Total Non-Current Liabilities | 5,335 | 5,278 | 5,716 | |
Total Liabilities | 111,726 | 76,361 | 78,701 | |
Shareholders' equity | ||||
Share capital | 9,152 | 9,152 | 9,152 | |
Retained earnings | 109,977 | 110,334 | 107,174 | |
119,129 | 119,486 | 116,326 | ||
Total Liabilities and Shareholders' Equity | 230,855 | 195,847 | 195,027 | |
GOODFELLOW INC. | ||||||
Consolidated Statements of Cash Flows | ||||||
(in thousands of dollars) | ||||||
(Unaudited) | ||||||
For the three months ended | ||||||
February 28 2015 |
February 28 2014 |
|||||
$ | $ | |||||
Operating Activities | ||||||
Net Earnings | (357 | ) | (277 | ) | ||
Adjustments for : | ||||||
Depreciation | 731 | 644 | ||||
Accretion expense on environmental provision | (14 | ) | 12 | |||
Income tax expense | (146 | ) | (113 | ) | ||
Loss on disposal of property, plant and equipment | 37 | - | ||||
Interest expense | 344 | 230 | ||||
Funding in deficit (excess) of pension plan expense | 57 | (453 | ) | |||
652 | 43 | |||||
Changes in non-cash working capital items | (29,905 | ) | (10,031 | ) | ||
Interest paid | (364 | ) | (352 | ) | ||
Income taxes paid | (1,215 | ) | (463 | ) | ||
(31,484 | ) | (10,846 | ) | |||
Net Cash Flows from Operating Activities | (30,832 | ) | (10,803 | ) | ||
Financing Activities | ||||||
Increase in bank loans | 4,500 | 14,000 | ||||
Increase in banker's acceptances | 20,000 | 1,000 | ||||
Long term debt | 14 | 909 | ||||
24,514 | 15,909 | |||||
Investing Activities | ||||||
Acquisition of property, plant and equipment | (506 | ) | (3,594 | ) | ||
Proceeds on disposal of property, plant and equipment | 14 | - | ||||
(492 | ) | (3,594 | ) | |||
Net cash (outflow) inflow | (6,810 | ) | 1,512 | |||
Cash position, beginning of year | (3,739 | ) | (8,319 | ) | ||
Cash position, end of year | (10,549 | ) | (6,807 | ) | ||
Cash position is comprised of : | ||||||
Cash and cash equivalents | 782 | 234 | ||||
Bank overdraft | (11,331 | ) | (7,041 | ) | ||
(10,549 | ) | (6,807 | ) | |||
GOODFELLOW INC. | ||||||
Consolidated Statements of Change in Shareholders' Equity | ||||||
(in thousands of dollars) | ||||||
(Unaudited) | ||||||
Share Capital |
Retained Earnings | Total |
||||
$ | $ | $ | ||||
Balance as at November 30, 2013 | 9,152 | 107,451 | 116,603 | |||
Net earnings | - | (277 | ) | (277 | ) | |
Total Comprehensive income | 9,152 | 107,174 | 116,326 | |||
Transactions with owners, recorded directly in shareholders' equity | - | - | - | |||
Balance as at February 28, 2014 | 9,152 | 107,174 | 116,326 | |||
Balance as at November 30, 2014 (audited) | 9,152 | 110,334 | 119,486 | |||
Net earnings | - | (357 | ) | (357 | ) | |
Total Comprehensive income | 9,152 | 109,977 | 119,129 | |||
Transactions with owners, recorded directly in shareholders' equity | - | - | - | |||
Balance as at February 28, 2015 | 9,152 | 109,977 | 119,129 |
Contact Information:
Denis Fraser
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com