Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2019

| Source: Goodfellow Inc. Goodfellow Inc.

DELSON, Quebec, Oct. 04, 2019 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the third quarter ended August 31, 2019. The Company reported a net income of $2.5 million or $0.29 per share compared to a net income of $2.0 million or $0.23 per share a year ago.

Consolidated sales for the three months ended August 31, 2019 were $130.6 million compared to $132.5 million last year. Sales in Canada alone increased 3% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $1.2 million.

For the nine months ended August 31, 2019, the Company reported a net income of $2.8 million or $0.33 per share compared to a net income of $2.4 million or $0.28 per share a year ago. Consolidated sales for the nine months ended August 31, 2019 were $342.5 million compared to $362.5 million last year. Sales in Canada decreased 4% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $3.1 million.

“The encouraging results of the third quarter were negatively impacted particularly in the GTA & Southwestern Ontario. European political upheaval as well as the US/China trade war played havoc on the Company’s core hardwood export business. Goodfellow believes in its diversified offering to move forward successfully”.

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 nine months ended August 31, 2019 and 2018
(in thousands of dollars, except per share amounts)
Unaudited
 
 For the three months ended
 For the nine months ended
 
 August 31
2019		August 31
2018		 August 31
2019		August 31
2018		 
 $$ $$ 
     
Sales130,594 132,455 342,460 362,465 
Expenses    
Cost of goods sold106,840 108,072 278,088 295,438 
Selling, administrative and general expenses19,426 20,650 58,053 61,153 
Loss (gain) on disposal of property, plant and equipment-(41)7 (2)
Net financial costs895 1,004 2,449 2,577 
 127,161 129,685 338,597 359,166 
     
Earnings before income taxes3,433 2,770 3,863 3,299 
     
Income taxes961 777 1,086 925 
     
Total comprehensive income2,472 1,993 2,777 2,374 
     
     
Net earnings per share - Basic 0.29  0.23  0.33  0.28 
Net earnings per share - Diluted 0.29  0.23  0.32  0.28 
       


 
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
 
 As atAs atAs at
 August 31
2019		November 30
2018		August 31
2018
 $$$
Assets    
Current Assets   
Cash1,546 2,5782,229
Trade and other receivables65,216 50,00865,154
Inventories99,761 92,544104,106
Prepaid expenses2,552 3,1434,151
Total Current Assets169,075 148,273175,640
    
Non-Current Assets   
Property, plant and equipment32,754 34,35634,834
Intangible assets3,990 4,4444,588
Defined benefit plan asset2,700 2,7042,396
Investment in a joint venture25 2525
Other assets849 916849
Total Non-Current Assets40,318 42,44542,692
Total Assets209,393 190,718218,332
    
Liabilities   
Current liabilities   
Bank indebtedness56,579 42,83568,205
Trade and other payables32,216 29,19231,708
Income taxes payable667 409461
Provision316 3361,019
Current portion of long-term debt151445
Total Current Liabilities89,79372,786101,438
    
Non-Current Liabilities   
Provision1,319 1,317484
Long-term debt32 4346
Deferred income taxes3,652 3,6523,582
Defined benefit plan obligation159 57974
Total Non-Current Liabilities5,162 5,0695,086
Total Liabilities94,955 77,855106,524
    
Shareholders’ Equity   
Share capital9,152 9,1529,152
Retained earnings105,286 103,711102,656
 114,438 112,863111,808
Total Liabilities and Shareholders’ Equity209,393 190,718218,332
    


 
GOODFELLOW INC.
Consolidated Statements of Cash Flows 
For the three and nine months ended August 31, 2019 and 2018
(in thousands of dollars)
Unaudited
 
   For the three months
ended		  For the nine months
 ended
 August 31
 August 31
 August 31
 August 31 
 2019 2018 2019 2018 
 $ $ $ $ 
     
Operating Activities    
Net earnings2,472  1,993 2,777  2,374 
Adjustments for:    
Depreciation869  932 2,592  2,746 
Accretion expense on provision3  12 10  38 
(Decrease) increase in provision(28)55 (28)80 
Income taxes961  777 1,086  925 
Loss (gain) on disposal of property, plant and equipment- (41)7  (2)
Interest expense603  737 1,708  1,866 
Funding in deficit of pension plan expense35  48 106  69 
Other assets-  - 67 33 
 4,915 4,513 8,325 8,129 
     
Changes in non-cash working capital items6,126  10,863 (19,079)(21,668)
Interest paid(580)(663)(1,791)(2,005)
Income taxes (paid) recovered(152)1,296 (828)1,125 
 5,394  11,496 (21,698)(22,548)
Net Cash Flows from Operating Activities 10,309  16,009 (13,373)(14,419)
     
Financing Activities    
Net (decrease) increase in bank loans(3,000)2,000 (1,000)(2,000)
Net (decrease) increase in banker’s acceptances(12,000)(16,000)13,000  14,000 
Reimbursement of long-term debt(4 )(35)(10)(103)
Dividend Paid- - (851)- 
 (15,004)(14,035)11,139 11,897   
     
Investing Activities    
Acquisition of property, plant and equipment(263)(345)(488)(896)
Increase in intangible assets(17)(64)(62)(176)
Proceeds on disposal of property, plant and equipment- (3)8  45 
Dividends from the joint venture- 260 - 260 
 (280)(152)(542)(767)
     
Net cash (outflow) inflow(4,975)1,822 (2,776)(3,289)
Cash position, beginning of period2,942  (4,798)743  313 
Cash position, end of period(2,033)(2,976)(2,033)(2,976)
     
Cash position is comprised of:    
Cash1,546  2,229 1,546  2,229 
Bank overdraft(3,579)(5,205)(3,579)(5,205)
 (2,033)(2,976)(2,033)(2,976)
         


 
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders’ Equity
For the nine months ended August 31, 2019 and 2018
(in thousands of dollars)
Unaudited 
 
 Share
Capital		Retained
Earnings		 Total 
 $$ $ 
    
Balance as at November 30, 2017 (Audited)9,152100,282 109,434 
    
Net income-2,374 2,374 
    
Total comprehensive income-2,374 2,374 
    
    
Balance as at August 31, 20189,152102,656 111,808 
    
    
Balance as at November 30, 2018 (Audited)9,152 103,711  112,863  
    
Net earnings-2,777  2,777  
    
Total comprehensive income-2,777  2,777  
    
Transactions within equity   
    
Dividend-(851)(851)
Modification of share-based payment-(351)(351)
    
Balance as at August 31, 20199,152 105,286  114,438  
      


From: Goodfellow Inc.
 Patrick Goodfellow
 President and CEO
 Tel: 450 635-6511
 Fax: 450 635-3730
 Internet: info@goodfellowinc.com