DELSON, QUEBEC–(Marketwired – April 17, 2017) – Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2017. The Company reported a net loss of $(5.4) million or $(0.63) per share compared to $(0.9) million or $(0.11) per share a year ago. Consolidated sales for the three months ended February 28, 2017 were $113.5 million compared to $108.7 million last year. Sales in Canada during the first quarter of fiscal 2017 decreased 3% compared to the same period a year ago mainly due to a decrease in volume of Pressure Treated wood sales. On the other hand, sales in the export market and the USA increased by 61% and 63%, respectively, due to increasing demand of hardwood lumber products and we are optimistic with our ability to maintain the volumes in the coming months. On the operating side, Selling, Direct and Administrative costs decreased by 1.3%. The slight decrease shows actions taken to reduce overhead staff. The benefits of these costs cutting measures will start to appear in the second quarter of Fiscal 2017. As a result, direct, selling, and administrative expenses decreased to $21.0 million ($21.3 million last year).
“Moving in the right direction – best summarizes the results of our first Quarter. All measures are being taken to ensure the company returns to its historic profitable operating situation by year-end 2017” said Patrick Goodfellow, President and Chief Executive Officer. “Despite a difficult first quarter, we are confident that all measures taken should be well reflected by the end of the second quarter at the end of May. We remain confident to re-establish profitability short term”.
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.
| GOODFELLOW INC. Consolidated Statements of Comprehensive Income For the three months ended February 28, 2017 and February 29, 2016 (in thousands of dollars, except per share amounts) Unaudited |
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| For the three months ended | |||||
| February 28 2017 |
February 29 2016 |
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| $ | $ | ||||
| Sales | 113,490 | 108,659 | |||
| Expenses | |||||
| Cost of goods sold | 99,103 | 87,979 | |||
| Selling, administrative and general expenses | 21,018 | 21,303 | |||
| Net financial costs | 952 | 635 | |||
| 121,073 | 109,917 | ||||
| Earnings before income taxes | (7,583 | ) | (1,258 | ) | |
| Income taxes | (2,182 | ) | (352 | ) | |
| Total comprehensive loss | (5,401 | ) | (906 | ) | |
| Net loss per share – Basic and diluted | (0.63 | ) | (0.11 | ) | |
| GOODFELLOW INC. Consolidated Statements of Financial Position (in thousands of dollars) Unaudited |
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| As at | As at | As at | ||
| February 28 | November 30 | February 29 | ||
| 2017 | 2016 | 2016 | ||
| $ | $ | $ | ||
| Assets | ||||
| Current Assets | ||||
| Cash | 935 | 703 | 1,983 | |
| Trade and other receivables | 70,570 | 64,255 | 86,494 | |
| Income taxes receivable | 9,336 | 6,598 | – | |
| Inventories | 113,065 | 115,391 | 131,676 | |
| Prepaid expenses | 2,611 | 4,863 | 8,077 | |
| Total Current Assets | 196,517 | 191,810 | 228,230 | |
| Non-Current Assets | ||||
| Property, plant and equipment | 38,085 | 38,693 | 39,388 | |
| Intangible assets | 5,347 | 5,428 | 3,630 | |
| Defined benefit plan asset | 2,240 | 2,234 | 4,937 | |
| Investment | 3,606 | 3,403 | 3,000 | |
| Total Non-Current Assets | 49,278 | 49,758 | 50,955 | |
| Total Assets | 245,795 | 241,568 | 279,185 | |
| Liabilities | ||||
| Current liabilities | ||||
| Bank indebtedness | 86,170 | 94,113 | 90,163 | |
| Trade and other payables | 48,332 | 30,721 | 54,084 | |
| Income taxes payable | – | – | 997 | |
| Provision | 932 | 963 | 1,112 | |
| Current portion of long-term debt | 124 | 136 | 208 | |
| Total Current Liabilities | 135,558 | 125,933 | 146,564 | |
| Non-Current Liabilities | ||||
| Provision | 488 | 475 | 490 | |
| Long-term debt | 95 | 126 | 219 | |
| Deferred income taxes | 3,296 | 3,296 | 4,718 | |
| Defined benefit plan obligation | 1,066 | 1,045 | – | |
| Total Non-Current Liabilities | 4,945 | 4,942 | 5,427 | |
| Total Liabilities | 140,503 | 130,875 | 151,991 | |
| Shareholders’ equity | ||||
| Share capital | 9,152 | 9,152 | 9,152 | |
| Retained earnings | 96,140 | 101,541 | 118,042 | |
| 105,292 | 110,693 | 127,194 | ||
| Total Liabilities and Shareholders’ Equity | 245,795 | 241,568 | 279,185 | |
| GOODFELLOW INC. Consolidated Statements of Cash Flows For the three months ended February 28, 2017 and February 29, 2016 (in thousands of dollars) Unaudited |
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| For the three months ended | ||||||
| February 28 2017 |
February 29 2016 |
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| $ | $ | |||||
| Operating Activities | ||||||
| Net Earnings | (5,401 | ) | (906 | ) | ||
| Adjustments for : | ||||||
| Depreciation | 949 | 798 | ||||
| Accretion expense on provision | 12 | 13 | ||||
| Decrease in provision | (30 | ) | – | |||
| Income taxes | (2,182 | ) | (352 | ) | ||
| Loss on disposal of property, plant and equipment | 12 | – | ||||
| Interest expense | 692 | 434 | ||||
| Funding in deficit (excess) of pension plan expense | 16 | (125 | ) | |||
| Share of the profits of a joint venture | (203 | ) | – | |||
| (6,135 | ) | (138 | ) | |||
| Changes in non-cash working capital items | 15,867 | (35,514 | ) | |||
| Interest paid | (685 | ) | (656 | ) | ||
| Income taxes paid | (556 | ) | (553 | ) | ||
| 14,626 | (36,723 | ) | ||||
| Net Cash Flows from Operating Activities | 8,491 | (36,861 | ) | |||
| Financing Activities | ||||||
| Net (decrease) increase in bank loans | (11,000 | ) | 13,000 | |||
| Net increase in banker’s acceptances | – | 28,000 | ||||
| Increase in long-term debt | – | 490 | ||||
| Reimbursement of long-term debt | (43 | ) | (736 | ) | ||
| (11,043 | ) | 40,754 | ||||
| Investing Activities | ||||||
| Acquisition of property, plant and equipment | (210 | ) | (366 | ) | ||
| Increase in intangible assets | (89 | ) | (683 | ) | ||
| Proceeds on disposal of property, plant and equipment | 26 | – | ||||
| Business acquisitions, net of cash acquired | – | (4,208 | ) | |||
| (273 | ) | (5,257 | ) | |||
| Net cash outflow | (2,825 | ) | (1,364 | ) | ||
| Cash position, beginning of period | (1,910 | ) | (1,816 | ) | ||
| Cash position, end of period | (4,735 | ) | (3,180 | ) | ||
| Cash position is comprised of : | ||||||
| Cash | 935 | 1,983 | ||||
| Bank overdraft | (5,670 | ) | (5,163 | ) | ||
| (4,735 | ) | (3,180 | ) | |||
| GOODFELLOW INC. Consolidated Statements of Change in Shareholders’ Equity For the three months ended February 28, 2017 and February 29, 2016 (in thousands of dollars) Unaudited |
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| Share Capital |
Retained Earnings |
Total | ||||
| $ | $ | $ | ||||
| Balance as at November 30, 2015 (Audited) | 9,152 | 118,948 | 128,100 | |||
| Net loss | – | (906 | ) | (906 | ) | |
| Total comprehensive loss | – | (906 | ) | (906 | ) | |
| Balance as at February 29, 2016 | 9,152 | 118,042 | 127,194 | |||
| Balance as at November 30, 2016 (Audited) | 9,152 | 101,541 | 110,693 | |||
| Net loss | – | (5,401 | ) | (5,401 | ) | |
| Total comprehensive loss | – | (5,401 | ) | (5,401 | ) | |
| Balance as at February 28, 2017 | 9,152 | 96,140 | 105,292 | |||
