DELSON, QUEBEC--(Marketwire - Nov. 7, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2012. The Company generated net earnings of $4.4 million or $0.51 per share compared to net earnings of $3.0 million or $0.35 per share a year ago. Consolidated sales for the fiscal year 2012 were $500.7 million compared to $466.8 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital, income tax paid and interest paid) for fiscal 2012 increased to $8.3 million from $7.1 million for the same period last year. Fiscal 2011-2012 called for caution and Management responded with a focus on cost reduction during the first 3 quarters while maintaining its market share presence in an extremely competitive environment across all our regional markets. As such, consolidated sales grew 7% during fiscal 2012. Our focus on introducing profitable value-added product lines continued throughout the year with the development and expansion of our product offering. On the operating side, Management maintained its focus on controlling its variable costs within sales growth rates without affecting its customer service levels. As such, direct, selling and administrative expenses were reduced by 2% or $1.7 million.
The Company generated net income of $2.5 million or $0.29 per share during the fourth quarter of fiscal 2012 (same as the fourth quarter last year). Consolidated sales for the fourth quarter of fiscal 2012 were $152.3 million compared to $135.0 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 fourth quarter of fiscal 2012 decreased to $4.0 million from $4.2 million for the same period last year.
"Our 2011/2012 fiscal year was one that showed a slight improvement over last year. Our sales (up 7%) recovered to the $500 million mark but margins continued to be squeezed in most areas." said Richard Goodfellow, President and Chief Executive Officer. "Our market share has continued to grow with consolidation of many in each business sector and this should help us continue to grow both our sales and improve profitability."
The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable November 30, 2012, to all shareholders of record as of November 16, 2012.
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, 2012 and 2011 (in thousands of dollars, except per share amounts) |
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| 2012 | 2011 | ||
| $ | $ | ||
| Sales | 500,688 | 466,809 | |
| Expenses | |||
| Cost of goods sold | 413,501 | 379,839 | |
| Selling, administrative and general expenses | 79,330 | 81,082 | |
| Net financial costs | 1,794 | 1,657 | |
| 494,625 | 462,578 | ||
| Earnings before income taxes | 6,063 | 4,231 | |
| Income taxes | 1,708 | 1,228 | |
| Net earnings, being comprehensive income | 4,355 | 3,003 | |
| Earnings per share | |||
| Basic and diluted | 0.51 | 0.35 | |
| GOODFELLOW INC. Consolidated Statements of Financial Position As at August 31, 2012, 2011 and September 1, 2010 (in thousands of dollars) |
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| 2012 | 2011 | 2010 | ||
| $ | $ | $ | ||
| Assets | ||||
| Current Assets | ||||
| Cash and cash equivalents | 707 | 210 | 548 | |
| Trade and other receivables | 83,083 | 71,284 | 81,184 | |
| Income taxes recoverable | - | 3,708 | - | |
| Inventories | 63,736 | 58,722 | 63,367 | |
| Prepaid expenses | 3,474 | 1,699 | 1,647 | |
| Total Current Assets | 151,000 | 135,623 | 146,746 | |
| Non-Current Assets | ||||
| Property, plant and equipment | 35,743 | 37,125 | 37,854 | |
| 186,743 | 172,748 | 184,600 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Bank indebtedness | 37,157 | 28,617 | 27,132 | |
| Trade and other payables | 29,060 | 24,486 | 34,597 | |
| Income taxes payable | 22 | - | 1,584 | |
| Total Current Liabilities | 66,239 | 53,103 | 63,313 | |
| Non-Current Liabilities | ||||
| Provisions | 1,442 | 1,498 | 1,400 | |
| Deferred income taxes | 2,514 | 2,195 | 2,234 | |
| Defined benefit plan obligation | 512 | 2,048 | 3,323 | |
| Total Non-Current Liabilities | 4,468 | 5,741 | 6,957 | |
| 70,707 | 58,844 | 70,270 | ||
| Shareholders' equity | ||||
| Share capital | 9,154 | 9,222 | 9,222 | |
| Retained earnings | 106,882 | 104,682 | 105,108 | |
| 116,036 | 113,904 | 114,330 | ||
| 186,743 | 172,748 | 184,600 | ||
| GOODFELLOW INC. Consolidated Statements of Cash Flows Years ended August 31, 2012 and 2011 (in thousands of dollars) |
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| 2012 | 2011 | |||||
| $ | $ | |||||
| Cash Flows Used in Operating Activities | ||||||
| Net Earnings | 4,355 | 3,003 | ||||
| Adjustments for : | ||||||
| Depreciation | 2,872 | 3,089 | ||||
| Accretion expense on environmental provision | 120 | 98 | ||||
| Decrease in environmental provision | (176 | ) | - | |||
| Deferred income taxes | 319 | (39 | ) | |||
| Income tax expense | 1,389 | 1,267 | ||||
| Gain on disposal of property, plant and equipment | - | (118 | ) | |||
| Interest expense | 961 | 1,053 | ||||
| Funding in excess of pension plan expense | (1,536 | ) | (1,275 | ) | ||
| 8,304 | 7,078 | |||||
| Changes in non-cash working capital items | (14,180 | ) | 4,400 | |||
| Interest paid | (975 | ) | (1,033 | ) | ||
| Income taxes paid (recovered) | 2,341 | (6,559 | ) | |||
| (12,814 | ) | (3,192 | ) | |||
| Cash Flows From (Used In) Financing Activities | ||||||
| Decrease in bank loans | - | (4,000 | ) | |||
| Increase in banker's acceptances | 9,000 | - | ||||
| Redemption of shares | (515 | ) | - | |||
| Dividends paid | (1,708 | ) | (3,429 | ) | ||
| 6,777 | (7,429 | ) | ||||
| Cash Flows Used In Investing Activities | ||||||
| Acquisition of property, plant and equipment | (1,310 | ) | (2,448 | ) | ||
| Proceeds on disposal of property, plant and equipment | - | 168 | ||||
| (1,310 | ) | (2,280 | ) | |||
| Net cash inflow (outflow) | 957 | (5,823 | ) | |||
| Cash position, beginning of year | (9,407 | ) | (3,584 | ) | ||
| Cash position, end of year | (8,450 | ) | (9,407 | ) | ||
| Cash position is comprised of : | ||||||
| Cash and cash equivalents | 707 | 210 | ||||
| Bank overdraft | (9,157 | ) | (9,617 | ) | ||
| (8,450 | ) | (9,407 | ) | |||
| GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity Years ended August 31, 2012 and 2011 (in thousands of dollar) |
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Share Capital |
Retained Earnings |
Total |
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| $ | $ | $ | |||||
| Balance as at September 1, 2010 | 9,222 | 105,108 | 114,330 | ||||
| Net earnings | - | 3,003 | 3,003 | ||||
| Transactions with owners, recorded directly in shareholders' equity | |||||||
| Dividends | - | (3,429 | ) | (3,429 | ) | ||
| 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 | ) | ||
| Redemption of Shares | (68 | ) | (447 | ) | (515 | ) | |
| Balance as at August 31, 2012 | 9,154 | 106,882 | 116,036 | ||||
Contact Information:
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com