Goodfellow Reports Its Results for the Third Quarter Ended August 31, 2018

| Source: Goodfellow Inc. Goodfellow Inc.

DELSON, Quebec, Oct. 04, 2018 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX:GDL) announced today its financial results for the third quarter ended August 31, 2018. For the three months ended August 31, 2018, the Company reported a net income of $2.0 million or $0.24 per share compared to a net income of $1.6 million or $0.19 per share a year ago. Consolidated sales for the three months ended August 31, 2018 were $132.5 million compared to $143.0 million last year. 

For the nine months ended August 31, 2018, the Company reported a net income of $2.4 million or $0.28 per share compared to a net loss of $4.3 million or $0.51 per share a year ago. Consolidated sales for the nine months ended August 31, 2018 were $362.5 million compared to $396.1 million last year. Sales in Canada decreased 9% compared to the same period a year ago due to decrease in sales of pressure treated wood and hardwood products. Sales also declined in the USA by 8% due to reduced demand for hardwood lumber products. Finally, export sales decreased 2% during the first nine months of fiscal 2018 compared to the same period a year ago mainly due to lower demand of hardwood products in Asia but increase the hardwood sales in Europe. On the operating side, selling and administrative costs decreased overall by $0.2 million and overall gross profit rose by $8.6 million.

“Cost control initiatives continue to be at the forefront in a downward margin pressure business landscape. Moving forward in its 120th anniversary, the Company is focused on sales volume increases in its core lumber categories through opportune asset acquisitions‎.” said Patrick Goodfellow, President and Chief Executive Officer. “The Company intends to invest in the upgrade of its operational setups to re-establish its dominant position in value added custom orders”. 

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, 2018 and 2017
(in thousands of dollars, except per share amounts)
Unaudited
 
  For the three months ended
 For the nine months ended
  
  August 31
2018		 August 31
2017		 August 31
2018		 August 31
2017		  
  $ $ $ $  
       
 Sales132,455  142,970 362,465  396,101  
 Expenses     
 Cost of goods sold108,072  119,049 295,438  337,669  
 Selling, administrative and general expenses20,650  20,554 61,153  61,328  
 Gain on disposal of property, plant and equipment(41)(68)(2)(55) 
 Net financial costs1,004  1,121 2,577  3,145  
  129,685  140,656 359,166  402,087  
       
 Earnings (loss) before income taxes2,770  2,314 3,299  (5,986) 
       
 Income taxes777  682 925  (1,676) 
       
 Total comprehensive income (loss)1,993  1,632 2,374  (4,310) 
       
       
 Net earnings (loss) per share - Basic and diluted0.24 0.19 0.28 (0.51) 



GOODFELLOW INC.   
Consolidated Statements of Financial Position  
(in thousands of dollars)   
Unaudited   
    
 As atAs atAs at
 August 31
2018		November 30
2017		August 31
2017
 $$$
Assets    
Current Assets   
Cash2,229 1,6221,121
Trade and other receivables65,865 58,31769,414
Income taxes receivable- 1,5898,408
Inventories104,106 88,86097,996
Prepaid expenses4,289 3,0073,861
Total Current Assets176,489 153,395180,800
    
Non-Current Assets   
Property, plant and equipment34,834 36,19837,074
Intangible assets4,588 4,9425,116
Defined benefit plan asset2,396 2,4132,227
Investment in a joint venture25 285282
Total Non-Current Assets41,843 43,83844,699
Total Assets218,332 197,233225,499
    
Liabilities   
Current liabilities   
Bank indebtedness68,205 52,30973,715
Trade and other payables31,708 29,40939,305
Income taxes payable461--
Provision1,019 938925
Current portion of long-term debt45 139138
Total Current Liabilities101,438 82,795114,083
    
Non-Current Liabilities   
Provision484 446513
Long-term debt46 5589
Deferred income taxes3,582 3,5823,296
Defined benefit plan obligation974 9211,135
Total Non-Current Liabilities5,086 5,0045,033
Total Liabilities106,524 87,799119,116
    
Shareholders’ equity   
Share capital9,152 9,1529,152
Retained earnings102,656 100,28297,231
 111,808 109,434106,383
Total Liabilities and Shareholders’ Equity218,332 197,233225,499




GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the three and nine months ended August 31, 2018 and 2017
(in thousands of dollars)    
Unaudited    
     
   For the three months
ended
   For the nine months
 ended
 
 August 31
2018		 August 31
2017		 August 31
2018		 August 31
2017
 
 $ $ $ $ 
     
Operating Activities    
Net earnings (loss)1,993  1,632 2,374  (4,310)
Adjustments for :    
     Depreciation932  987 2,746  2,893 
     Accretion expense on provision12  12 38  37 
     Increase (decrease) in provision55  (4)80  (37)
     Income taxes777  682 925  (1,676)
     Gain on disposal of property, plant and equipment(41)(68)(2)(55)
     Interest expense737  781 1,866  2,255 
     Funding in deficit of pension plan expense48  50 69  97 
     Share of the losses of a joint venture-  122 -  1 
 4,513  4,194 8,096  (795)
     
Changes in non-cash working capital items10,863  5,475 (21,635)21,876 
Interest paid(663)(817)(2,005)(2,309)
Income taxes recovered (paid)1,296  474 1,125  (134)
 11,496  5,132 (22,515)19,433 
Net Cash Flows from Operating Activities 16,009  9,326 (14,419)18,638 
     
Financing Activities    
Net increase (decrease) in bank loans2,000  (4,000)(2,000)(4,000)
Net (decrease) increase in banker’s acceptances(16,000)(12,500)14,000  (20,500)
Increase in long-term debt-  69 -  69 
Reimbursement of long-term debt(35)(31)(103)(104)
 (14,035)(16,462)11,897  (24,535)
     
Investing Activities    
Acquisition of property, plant and equipment(345)(395)(896)(796)
Increase in intangible assets(64)(73)(176)(295)
Proceeds on disposal of property, plant and equipment(3)135 45  184 
Dividends from the joint venture260  - 260  - 
Dissolution of the joint venture-  3,120 -  3,120 
 (152)2,787 (767)2,213 
     
Net cash inflow (outflow)1,822  (4,349)(3,289)(3,684)
Cash position, beginning of period(4,798)(1,245)313  (1,910)
Cash position, end of period(2,976)(5,594)(2,976)(5,594)
     
Cash position is comprised of :    
Cash2,229  1,121 2,229  1,121 
Bank overdraft(5,205)(6,715)(5,205)(6,715)
 (2,976)(5,594)(2,976)(5,594)


GOODFELLOW INC.   
Consolidated Statements of Change in Shareholders’ Equity   
For the nine months ended August 31, 2018 and 2017
(in thousands of dollars)   
Unaudited   
    
 Share
Capital		Retained
Earnings		 Total 
   $$ $ 
    
Balance as at November 30, 2016 (Audited)9,152101,541 110,693 
    
Net loss-(4,310)(4,310)
    
Total comprehensive loss-(4,310)(4,310)
    
    
Balance as at August 31, 20179,15297,231 106,383 
    
    
Balance as at November 30, 2017 (Audited)9,152 100,282  109,434  
    
Net income-2,374  2,374  
    
Total comprehensive income-2,374  2,374  
    
    
Balance as at August 31, 20189,152 102,656  111,808  


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