DELSON, Quebec, July 04, 2019 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31, 2019. The Company reported a net income of $1.9 million or $0.22 per share compared to a net income of $1.8 million or $0.21 per share a year ago.
Consolidated sales for the three months ended May 31, 2019 were $123.7 million compared to $133.3 million last year. Sales in Canada alone decreased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $0.8 million.
For the six months ended May 31, 2019, the Company reported a net income of $0.3 million or $0.04 per share compared to a net income of $0.4 million or $0.04 per share a year ago. Consolidated sales for the six months ended May 31, 2019 were $211.9 million compared to $230.0 million last year. Sales in Canada decreased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $1.9 million.
“The results of the second quarter reflect an aggressive market share retention strategy while at the same time launching some new exciting lines. A very late start to our seasonal business made it very challenging to realize our anticipated results”.
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 and six months ended May 31, 2019 and 2018
(in thousands of dollars, except per share amounts)
Unaudited
| For the three months ended | For the six months ended | ||||||
| May 31 2019 | May 31 2018 | May 31 2019 | May 31 2018 | ||||
| $ | $ | $ | $ | ||||
| Sales | 123,713 | 133,326 | 211,866 | 230,010 | |||
| Expenses | |||||||
| Cost of goods sold | 100,007 | 108,774 | 171,248 | 187,366 | |||
| Selling, administrative and general expenses | 20,260 | 21,106 | 38,627 | 40,503 | |||
| Loss on disposal of property, plant and equipment | - | 37 | 7 | 39 | |||
| Net financial costs | 863 | 892 | 1,554 | 1,573 | |||
| 121,130 | 130,809 | 211,436 | 229,481 | ||||
| Earnings before income taxes | 2,583 | 2,517 | 430 | 529 | |||
| Income taxes | 728 | 705 | 125 | 148 | |||
| Total comprehensive income | 1,855 | 1,812 | 305 | 381 | |||
| Net earnings per share - Basic | 0.22 | 0.21 | 0.04 | 0.04 | |||
| Net earnings per share - Diluted | 0.21 | 0.21 | 0.03 | 0.04 | |||
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
| As at | As at | As at | ||||
| May 31 2019 | November 30 2018 | May 31 2018 | ||||
| $ | $ | $ | ||||
| Assets | ||||||
| Current Assets | ||||||
| Cash | 2,942 | 2,578 | 1,545 | |||
| Trade and other receivables | 75,939 | 50,008 | 86,013 | |||
| Income taxes receivable | 142 | - | 1,612 | |||
| Inventories | 108,594 | 92,544 | 109,653 | |||
| Prepaid expenses | 2,626 | 3,143 | 3,593 | |||
| Total Current Assets | 190,243 | 148,273 | 202,416 | |||
| Non-Current Assets | ||||||
| Property, plant and equipment | 33,186 | 34,356 | 35,199 | |||
| Intangible assets | 4,145 | 4,444 | 4,703 | |||
| Defined benefit plan asset | 2,702 | 2,704 | 2,403 | |||
| Investment in a joint venture | 25 | 25 | 285 | |||
| Other assets | 849 | 916 | 849 | |||
| Total Non-Current Assets | 40,907 | 42,445 | 43,439 | |||
| Total Assets | 231,150 | 190,718 | 245,855 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Bank indebtedness | 68,000 | 42,835 | 83,343 | |||
| Trade and other payables | 45,696 | 29,192 | 46,622 | |||
| Income taxes payable | - | 409 | - | |||
| Provision | 336 | 336 | 964 | |||
| Current portion of long-term debt | 15 | 14 | 77 | |||
| Total Current Liabilities | 114,047 | 72,786 | 131,006 | |||
| Non-Current Liabilities | ||||||
| Provision | 1,324 | 1,317 | 471 | |||
| Long-term debt | 36 | 43 | 49 | |||
| Deferred income taxes | 3,652 | 3,652 | 3,582 | |||
| Defined benefit plan obligation | 125 | 57 | 932 | |||
| Total Non-Current Liabilities | 5,137 | 5,069 | 5,034 | |||
| Total Liabilities | 119,184 | 77,855 | 136,040 | |||
| Shareholders’ Equity | ||||||
| Share capital | 9,152 | 9,152 | 9,152 | |||
| Retained earnings | 102,814 | 103,711 | 100,663 | |||
| 111,966 | 112,863 | 109,815 | ||||
| Total Liabilities and Shareholders’ Equity | 231,150 | 190,718 | 245,855 | |||
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and six months ended May 31, 2019 and 2018
(in thousands of dollars)
Unaudited
| For the three months ended | For the six months ended | |||||||||
| May 31 2019 | May 31 2018 | May 31 2019 | May 31 2018 | |||||||
| $ | $ | $ | $ | |||||||
| Operating Activities | ||||||||||
| Net earnings | 1,855 | 1,812 | 305 | 381 | ||||||
| Adjustments for: | ||||||||||
| Depreciation | 856 | 912 | 1,723 | 1,814 | ||||||
| Accretion expense on provision | 4 | 13 | 7 | 26 | ||||||
| Increase in provision | - | 25 | - | 25 | ||||||
| Income taxes | 728 | 705 | 125 | 148 | ||||||
| Loss on disposal of property, plant and equipment | - | 37 | 7 | 39 | ||||||
| Interest expense | 623 | 653 | 1,105 | 1,129 | ||||||
| Funding in deficit of pension plan expense | 36 | 29 | 71 | 21 | ||||||
| Other assets | - | - | 67 | 33 | ||||||
| 4,102 | 4 186 | 3,410 | 3,616 | |||||||
| Changes in non-cash working capital items | (13,424 | ) | (21,034 | ) | (25,205 | ) | (32,531 | ) | ||
| Interest paid | (725 | ) | (656 | ) | (1,211 | ) | (1,342 | ) | ||
| Income taxes paid | (223 | ) | (55 | ) | (676 | ) | (171 | ) | ||
| (14,372 | ) | (21,745 | ) | (27,092 | ) | (34,044 | ) | |||
| Net Cash Flows from Operating Activities | (10,270 | ) | (17,559 | ) | (23,682 | ) | (30,428 | ) | ||
| Financing Activities | ||||||||||
| Net increase (decrease) in bank loans | 5,000 | (1,000 | ) | 2,000 | (4,000 | ) | ||||
| Net increase in banker’s acceptances | 10,000 | 14,000 | 25,000 | 30,000 | ||||||
| Reimbursement of long-term debt | (2 | ) | (34 | ) | (6 | ) | (68 | ) | ||
| Dividend Paid | (851 | ) | - | (851 | ) | - | ||||
| 14,147 | 12,966 | 26,143 | 25,932 | |||||||
| Investing Activities | ||||||||||
| Acquisition of property, plant and equipment | 87 | (316 | ) | (225 | ) | (551 | ) | |||
| Increase in intangible assets | (26 | ) | (79 | ) | (45 | ) | (112 | ) | ||
| Proceeds on disposal of property, plant and equipment | - | 28 | 8 | 48 | ||||||
| 61 | (367 | ) | (262 | ) | (615 | ) | ||||
| Net cash inflow (outflow) | 3,938 | (4,960 | ) | 2,199 | (5,111 | ) | ||||
| Cash position, beginning of period | (996 | ) | 162 | 743 | 313 | |||||
| Cash position, end of period | 2,942 | (4,798 | ) | 2,942 | (4,798 | ) | ||||
| Cash position is comprised of: | ||||||||||
| Cash | 2,942 | 1,545 | 2,942 | 1,545 | ||||||
| Bank overdraft | - | (6,343 | ) | - | (6,343 | ) | ||||
| 2,942 | (4,798 | ) | 2,942 | (4,798 | ) | |||||
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders’ Equity
For the six months ended May 31, 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 income | - | 381 | 381 | ||
| Total comprehensive income | - | 381 | 381 | ||
| Balance as at May 31, 2018 | 9,152 | 100,663 | 109,815 | ||
| Balance as at November 30, 2018 (Audited) | 9,152 | 103,711 | 112,863 | ||
| Net earnings | - | 305 | 305 | ||
| Total comprehensive income | - | 305 | 305 | ||
| Transactions within equity | |||||
| Dividend | - | (851 | ) | (851 | ) |
| Modification of share-based payment | - | (351 | ) | (351 | ) |
| Balance as at May 31, 2019 | 9,152 | 102,814 | 111,966 | ||
Goodfellow Inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730
info@goodfellowinc.com