DELSON, QUEBEC--(Marketwired - Feb. 11, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fifth quarter ended November 30, 2014. The Company reported net earnings of $1.5 million or $0.18 per share compared to net earnings of $1.2 million or $0.14 per share a year ago. Consolidated sales for the fifth quarter were $124.5 million compared to $110.4 million last year. Sales in the Canada and the US were particularly active throughout the fifth quarter due to strong demand from the retailer's customer group and strong US housing starts. Export sales increased due to increasing demand for value added products in Asia and Europe. On the operating side, variable costs increased slightly due to increased labor expenses resulting from ramping up of value-added product inventory and non-recurring corporate expenses. As a result, direct, selling, and administrative expenses increased to $20.5 million ($19.2 million last year).
For the fifteen months ended November 30, 2014, the Company generated net earnings of $8.1 million or $0.96 per share compared to net earnings of $5.3 million or $0.62 per share for the twelve months ended August 31, 2013. Consolidated sales for the fifteen months of fiscal 2014 were $610.6 million compared to $483.5 million for the twelve months ended August 31, 2013.
"Although our profitability level remains unsatisfactory, we posted an EBT improvement of 20% over the last twelve months. Gross margin remained essentially at the same level; gains on value added products were offset by continued softness on commodity products. The construction industry continues to post little to no growth across the country and deflationary pressures on many of our products are a reality we must overcome." said Denis Fraser, President and Chief Executive Officer. ''Modernization, growth and excellence are the 3 themes which best capture the essence of our priorities in 2015. We are now embarking on a journey that will result in large improvements of productivity leading to a leaner cost structure".
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
GOODFELLOW INC. Consolidated Statements of Comprehensive Income For the fifteen months ended November 30, 2014 and twelve months ended August 31, 2013 (in thousands of dollars, except per share amounts) |
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November 30, 2014 (15 months) |
August 31, 2013 (12 months) Restated |
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$ | $ | ||
Sales | 610,587 | 483,485 | |
Expenses | |||
Cost of goods sold | 495,886 | 393,560 | |
Selling, administrative and general expenses | 100,749 | 80,675 | |
Net financial costs | 2,824 | 1,943 | |
599,459 | 476,178 | ||
Earnings before income taxes | 11,128 | 7,307 | |
Income taxes | 3,003 | 2,028 | |
Net earnings, being comprehensive income | 8,125 | 5,279 | |
Earnings per share | |||
Basic and diluted | 0.96 | 0.62 |
GOODFELLOW INC. Consolidated Statements of Financial Position As at November 30, 2014 and August 31, 2013 (in thousands of dollars) |
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November 30, 2014 | August 31, 2013 (Restated) |
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$ | $ | ||
Assets | |||
Current Assets | |||
Cash and cash equivalents | 860 | 197 | |
Trade and other receivables | 60,591 | 72,838 | |
Inventories | 92,257 | 74,255 | |
Prepaid expenses | 3,271 | 3,433 | |
Total Current Assets | 156,979 | 150,723 | |
Non-Current Assets | |||
Property, plant and equipment | 37,020 | 35,422 | |
Defined benefit plan asset | 1,848 | 1,041 | |
Total Non-Current Assets | 38,868 | 36,463 | |
Total Assets | 195,847 | 187,186 | |
Liabilities | |||
Current liabilities | |||
Bank indebtedness | 43,099 | 34,169 | |
Trade and other payable | 25,779 | 29,457 | |
Income taxes payable | 997 | 742 | |
Provision | 979 | - | |
Current portion of long term debt | 229 | 38 | |
Total Current Liabilities | 71,083 | 64,406 | |
Non-Current Liabilities | |||
Provision | 473 | 1,471 | |
Long term debt | 692 | 112 | |
Deferred income taxes | 2,535 | 2,393 | |
Defined benefit plan obligation | 1,578 | 1,666 | |
Total Non-Current Liabilities | 5,278 | 5,642 | |
Total Liabilities | 76,361 | 70,048 | |
Shareholders' equity | |||
Share capital | 9,152 | 9,152 | |
Retained earnings | 110,334 | 107,986 | |
119,486 | 117,138 | ||
Total Liabilities and Shareholders' Equity | 195,847 | 187,186 | |
GOODFELLOW INC. Consolidated Statements of Cash Flows For the fifteen months ended November 30, 2014 and twelve months ended August 31, 2013 (in thousands of dollars) |
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November 30, 2014 (15 months) |
August 31, 2013 (12 months) Restated |
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$ | $ | |||||
Operating Activities | ||||||
Net Earnings | 8,125 | 5,279 | ||||
Adjustments for : | ||||||
Depreciation | 3,611 | 2,758 | ||||
Accretion expense on environmental provision | 57 | 45 | ||||
Decrease in environmental provision | (76 | ) | (16 | ) | ||
Deferred income taxes | 243 | 320 | ||||
Income tax expense | 2,760 | 1,708 | ||||
Gain on disposal of property, plant and equipment | (14 | ) | (65 | ) | ||
Interest expense | 1,766 | 1,165 | ||||
Funding in excess of pension plan expense | (1,244 | ) | (1,513 | ) | ||
15,228 | 9,681 | |||||
Changes in non-cash working capital items | (9,260 | ) | 265 | |||
Interest paid | (1,785 | ) | (1,135 | ) | ||
Income taxes paid | (2,506 | ) | (989 | ) | ||
(13,551 | ) | (1,859 | ) | |||
Net Cash Flows from Operating Activities | 1,677 | 7,822 | ||||
Financing Activities | ||||||
(Decrease) Increase in bank loans | (7,500 | ) | 2,000 | |||
Increase (Decrease) in banker's acceptances | 17,000 | (1,000 | ) | |||
Long term debt | 771 | 150 | ||||
Redemption of shares | - | (14 | ) | |||
Dividends paid | (5,529 | ) | (2,977 | ) | ||
4,742 | (1,841 | ) | ||||
Investing Activities | ||||||
Acquisition of property, plant and equipment | (5,240 | ) | (2,571 | ) | ||
Proceeds on disposal of property, plant and equipment | 54 | 68 | ||||
(5,186 | ) | (2,503 | ) | |||
Net cash inflow | 1,233 | 3,478 | ||||
Cash position, beginning of year | (4,972 | ) | (8,450 | ) | ||
Cash position, end of year | (3,739 | ) | (4,972 | ) | ||
Cash position is comprised of : | ||||||
Cash and cash equivalents | 860 | 197 | ||||
Bank overdraft | (4,599 | ) | (5,169 | ) | ||
(3,739 | ) | (4,972 | ) | |||
GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity For the fifteen months ended November 30, 2014 and twelve months ended August 31, 2013 (in thousands of dollars) |
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Share Capital | Retained Earnings | Total |
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$ | $ | $ | |||||
Balance as at August 31, 2012 | 9,154 | 99,521 | 108,675 | ||||
Net earnings | - | 5,279 | 5,279 | ||||
Other Comprehensive loss (net of taxes) | 6,175 | 6,175 | |||||
Total Comprehensive income | 11,454 | 11,454 | |||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (2,977 | ) | (2,977 | ) | ||
Redemption of Shares | (2 | ) | (12 | ) | (14 | ) | |
Balance as at August 31, 2013 | 9,152 | 107,986 | 117,138 | ||||
Net earnings | - | 8,125 | 8,125 | ||||
Other Comprehensive loss (net of taxes) | - | (248 | ) | (248 | ) | ||
Total Comprehensive income | 7,877 | 7,877 | |||||
Transactions with owners, recorded directly in shareholders' equity | |||||||
Dividends | - | (5,529 | ) | (5,529 | ) | ||
Balance as at November 30, 2014 | 9,152 | 110,334 | 119,486 | ||||
Contact Information:
Denis Fraser
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com