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 | ||||
| $ | $ | $ | $ | ||||
| Sales | 130,594 | 132,455 | 342,460 | 362,465 | |||
| Expenses | |||||||
| Cost of goods sold | 106,840 | 108,072 | 278,088 | 295,438 | |||
| Selling, administrative and general expenses | 19,426 | 20,650 | 58,053 | 61,153 | |||
| Loss (gain) on disposal of property, plant and equipment | – | (41 | ) | 7 | (2 | ) | |
| Net financial costs | 895 | 1,004 | 2,449 | 2,577 | |||
| 127,161 | 129,685 | 338,597 | 359,166 | ||||
| Earnings before income taxes | 3,433 | 2,770 | 3,863 | 3,299 | |||
| Income taxes | 961 | 777 | 1,086 | 925 | |||
| Total comprehensive income | 2,472 | 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 at | As at | As at | ||||
| August 31 2019 | November 30 2018 | August 31 2018 | ||||
| $ | $ | $ | ||||
| Assets | ||||||
| Current Assets | ||||||
| Cash | 1,546 | 2,578 | 2,229 | |||
| Trade and other receivables | 65,216 | 50,008 | 65,154 | |||
| Inventories | 99,761 | 92,544 | 104,106 | |||
| Prepaid expenses | 2,552 | 3,143 | 4,151 | |||
| Total Current Assets | 169,075 | 148,273 | 175,640 | |||
| Non-Current Assets | ||||||
| Property, plant and equipment | 32,754 | 34,356 | 34,834 | |||
| Intangible assets | 3,990 | 4,444 | 4,588 | |||
| Defined benefit plan asset | 2,700 | 2,704 | 2,396 | |||
| Investment in a joint venture | 25 | 25 | 25 | |||
| Other assets | 849 | 916 | 849 | |||
| Total Non-Current Assets | 40,318 | 42,445 | 42,692 | |||
| Total Assets | 209,393 | 190,718 | 218,332 | |||
| Liabilities | ||||||
| Current liabilities | ||||||
| Bank indebtedness | 56,579 | 42,835 | 68,205 | |||
| Trade and other payables | 32,216 | 29,192 | 31,708 | |||
| Income taxes payable | 667 | 409 | 461 | |||
| Provision | 316 | 336 | 1,019 | |||
| Current portion of long-term debt | 15 | 14 | 45 | |||
| Total Current Liabilities | 89,793 | 72,786 | 101,438 | |||
| Non-Current Liabilities | ||||||
| Provision | 1,319 | 1,317 | 484 | |||
| Long-term debt | 32 | 43 | 46 | |||
| Deferred income taxes | 3,652 | 3,652 | 3,582 | |||
| Defined benefit plan obligation | 159 | 57 | 974 | |||
| Total Non-Current Liabilities | 5,162 | 5,069 | 5,086 | |||
| Total Liabilities | 94,955 | 77,855 | 106,524 | |||
| Shareholders’ Equity | ||||||
| Share capital | 9,152 | 9,152 | 9,152 | |||
| Retained earnings | 105,286 | 103,711 | 102,656 | |||
| 114,438 | 112,863 | 111,808 | ||||
| Total Liabilities and Shareholders’ Equity | 209,393 | 190,718 | 218,332 | |||
| 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 earnings | 2,472 | 1,993 | 2,777 | 2,374 | ||||
| Adjustments for: | ||||||||
| Depreciation | 869 | 932 | 2,592 | 2,746 | ||||
| Accretion expense on provision | 3 | 12 | 10 | 38 | ||||
| (Decrease) increase in provision | (28 | ) | 55 | (28 | ) | 80 | ||
| Income taxes | 961 | 777 | 1,086 | 925 | ||||
| Loss (gain) on disposal of property, plant and equipment | – | (41 | ) | 7 | (2 | ) | ||
| Interest expense | 603 | 737 | 1,708 | 1,866 | ||||
| Funding in deficit of pension plan expense | 35 | 48 | 106 | 69 | ||||
| Other assets | – | – | 67 | 33 | ||||
| 4,915 | 4,513 | 8,325 | 8,129 | |||||
| Changes in non-cash working capital items | 6,126 | 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 period | 2,942 | (4,798 | ) | 743 | 313 | |||
| Cash position, end of period | (2,033 | ) | (2,976 | ) | (2,033 | ) | (2,976 | ) |
| Cash position is comprised of: | ||||||||
| Cash | 1,546 | 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) | 9,152 | 100,282 | 109,434 | ||
| Net income | – | 2,374 | 2,374 | ||
| Total comprehensive income | – | 2,374 | 2,374 | ||
| Balance as at August 31, 2018 | 9,152 | 102,656 | 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, 2019 | 9,152 | 105,286 | 114,438 | ||
| From: | Goodfellow Inc. |
| Patrick Goodfellow | |
| President and CEO | |
| Tel: 450 635-6511 | |
| Fax: 450 635-3730 | |
| Internet: info@goodfellowinc.com |
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