DELSON, Quebec, April 12, 2019 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended February 28, 2019. The Company reported a net loss of $1.6 million or $0.18 per share compared to a net loss of $1.4 million or $0.17 per share a year ago.
Consolidated sales for the three months ended February 28, 2019 were $88.2 million compared to $96.7 million last year. Sales in Canada alone decreased 8% compared to the same period a year ago. On the operating side, selling and administrative costs decreased overall by $1.0 million and overall gross profit before selling and administrative costs decreased by $1.2 million.
“It is clear there are some economic headwinds making business conditions more challenging. The Company is keeping a very close eye on its cost base and inventory levels. We have nonetheless, seen strong support from our customers base and we are committed to an exemplary level of service”.
Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. 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, 2019 and 2018 (in thousands of dollars, except per share amounts) Unaudited | ||
| For the three months ended | ||
| February 28 2019 | February 28 2018 | |
| $ | $ | |
| Sales | 88,153 | 96,684 |
| Expenses | ||
| Cost of goods sold | 71,241 | 78,592 |
| Selling, administrative and general expenses | 18,367 | 19,397 |
| Loss on disposal of property, plant and equipment | 7 | 2 |
| Net financial costs | 691 | 681 |
| 90,306 | 98,672 | |
| Loss before income taxes | (2,153) | (1,988) |
| Income taxes | (603) | (557) |
| Total comprehensive loss | (1,550) | (1,431) |
| Net loss per share - Basic and diluted | (0.18) | (0.17) |
| GOODFELLOW INC. | |||
| Consolidated Statements of Financial Position | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| As at | As at | As at | |
| February 28 2019 | November 30 2018 | February 28 2018 | |
| $ | $ | $ | |
| Assets | |||
| Current Assets | |||
| Cash | 2,159 | 2,578 | 1,547 |
| Trade and other receivables | 54,342 | 50,008 | 62,686 |
| Income taxes receivable | 647 | - | 2,262 |
| Inventories | 107,879 | 92,544 | 102,519 |
| Prepaid expenses | 2,133 | 3,143 | 4,051 |
| Total Current Assets | 167,160 | 148,273 | 173,065 |
| Non-Current Assets | |||
| Property, plant and equipment | 33,958 | 34,356 | 35,684 |
| Intangible assets | 4,292 | 4,444 | 4,800 |
| Defined benefit plan asset | 2,703 | 2,704 | 2,409 |
| Investment in a joint venture | 25 | 25 | 285 |
| Other assets | 849 | 916 | 849 |
| Total Non-Current Assets | 41,827 | 42,445 | 44,027 |
| Total Assets | 208,987 | 190,718 | 217,092 |
| Liabilities | |||
| Current liabilities | |||
| Bank indebtedness | 56,155 | 42,835 | 65,385 |
| Trade and other payables | 36,066 | 29,192 | 37,657 |
| Income taxes payable | - | 409 | - |
| Provision | 336 | 336 | 938 |
| Dividend payable | 851 | - | - |
| Current portion of long-term debt | 14 | 14 | 108 |
| Total Current Liabilities | 93,422 | 72,786 | 104,088 |
| Non-Current Liabilities | |||
| Provision | 1,321 | 1,317 | 458 |
| Long-term debt | 39 | 43 | 52 |
| Deferred income taxes | 3,652 | 3,652 | 3,582 |
| Defined benefit plan obligation | 91 | 57 | 909 |
| Total Non-Current Liabilities | 5,103 | 5,069 | 5,001 |
| Total Liabilities | 98,525 | 77,855 | 109,089 |
| Shareholders’ equity | |||
| Share capital | 9,152 | 9,152 | 9,152 |
| Retained earnings | 101,310 | 103,711 | 98,851 |
| 110,462 | 112,863 | 108,003 | |
| Total Liabilities and Shareholders’ Equity | 208,987 | 190,718 | 217,092 |
| GOODFELLOW INC. Consolidated Statements of Cash Flows For the three months ended February 28, 2019 and 2018 (in thousands of dollars) Unaudited | ||
| For the three months ended | ||
| February 28 2019 | February 28 2018 | |
| $ | $ | |
| Operating Activities | ||
| Net loss | (1,550) | (1,431) |
| Adjustments for: | ||
| Depreciation | 867 | 902 |
| Accretion expense on provision | 3 | 13 |
| Income taxes | (603) | (557) |
| Loss on disposal of property, plant and equipment | 7 | 2 |
| Interest expense | 482 | 476 |
| Funding in deficit (excess) of pension plan expense | 35 | (8) |
| Other assets | 67 | 33 |
| (692) | (570) | |
| Changes in non-cash working capital items | (11,781) | (11,497) |
| Interest paid | (486) | (686) |
| Income taxes paid | (453) | (116) |
| (12,720) | (12,299) | |
| Net Cash Flows from Operating Activities | (13,412) | (12,869) |
| Financing Activities | ||
| Net decrease in bank loans | (3,000) | (3,000) |
| Net increase in banker’s acceptances | 15,000 | 16,000 |
| Reimbursement of long-term debt | (4) | (34) |
| 11,996 | 12,966 | |
| Investing Activities | ||
| Acquisition of property, plant and equipment | (312) | (235) |
| Increase in intangible assets | (19) | (33) |
| Proceeds on disposal of property, plant and equipment | 8 | 20 |
| (323) | (248) | |
| Net cash outflow | (1,739) | (151) |
| Cash position, beginning of period | 743 | 313 |
| Cash position, end of period | (996) | 162 |
| Cash position is comprised of: | ||
| Cash | 2,159 | 1,547 |
| Bank overdraft | (3,155) | (1,385) |
| (996) | 162 | |
| GOODFELLOW INC. | |||
| Consolidated Statements of Change in Shareholders’ Equity | |||
| For the three months ended February 28, 2019 and 2018 | |||
| (in thousands of dollars) | |||
| Unaudited | |||
| Share Capital | Retained Earnings | Total | |
| $ | $ | $ | |
| 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 |
| Balance as at November 30, 2018 (Audited) | 9,152 | 103,711 | 112,863 |
| Net loss | - | (1,550) | (1,550) |
| Total comprehensive loss | - | (1,550) | (1,550) |
| Transactions within equity | |||
| Dividend | - | (851) | (851) |
| Balance as at February 28, 2019 | 9,152 | 101,310 | 110,462 |
Goodfellow Inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730
info@goodfellowinc.com