The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Goodfellow Reports Its Results for the First Quarter of Fiscal 2013

Wednesday, December 19, 2012

Goodfellow Reports Its Results for the First Quarter of Fiscal 201309:23 EST Wednesday, December 19, 2012DELSON, QUEBEC--(Marketwire - Dec. 19, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2012. The Company generated net earnings of $0.7 million or $0.09 per share compared to net earnings of $0.9 million or $0.10 per share a year ago. Consolidated sales for the first quarter were $112.0 million compared to $106.0 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital, income tax paid and interest paid) for the first quarter decreased to $1.4 million from $1.7 million for the same period last year. Management's focus on growing sales growth was maintained and as such, consolidated sales grew 6% during the first quarter. Sales grew in most regions except BC and Ontario where demand from retailers and industrial projects declined compared to the first quarter a year ago. Our sales team focused its efforts on value-added lumber products in order to diversify our product mix in many areas of our business. On the operating side, direct, selling and administrative expenses increased 4.4% or $0.8 million due to increased production throughput and lease and rental increases. "Our first quarter results although minimal in profit met expectations." said Richard Goodfellow, President and Chief Executive Officer. "Business conditions remain sluggish and very competitive. All efforts are being made to improve margins and control costs.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 First Quarter ended November 30, 2012 and 2011 (in thousands of dollars, except per share amounts)20122011$$Sales112,047106,039ExpensesCost of goods sold90,89985,571Selling, administrative and general expenses19,66518,846Net financial costs442334111,006104,751Earnings before income taxes1,0411,288Income taxes302399Net earnings, being comprehensive income739889Earnings per shareBasic and diluted0.090.10GOODFELLOW INC. Consolidated Statements of Financial Position As at November 30, 2012 and 2011 (in thousands of dollars)20122011$$AssetsCurrent AssetsCash and cash equivalents398328Trade and other receivables56,19655,689Income taxes recoverable-4,217Inventories79,51372,339Prepaid expenses2,0103,314Total Current Assets138,117135,887Non-Current AssetsProperty, plant and equipment36,37636,737174,493172,624LiabilitiesCurrent liabilitiesBank indebtedness28,88628,491Trade and other payables26,14024,896Income taxes payable9-Total Current Liabilities55,03553,387Non-Current LiabilitiesProvisions1,4491,506Deferred income taxes2,5142,195Defined benefit plan obligation91,600Total Non-Current Liabilities3,9725,30159,00758,688Shareholders' equityShare capital9,1529,222Retained earnings106,334104,714115,486113,936174,493172,624GOODFELLOW INC. Consolidated Statements of Cash Flows For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollars)20122011$$Cash Flows Used in Operating ActivitiesNet Earnings739889Adjustments for :Depreciation661703Accretion expense on environmental provision78Income tax expense302399Interest expense215159Funding in excess of pension plan expense(503)(448)1,4211,710Changes in non-cash working capital items9,631743Interest paid(193)(129)Income taxes paid(314)(908)9,124(294)Cash Flows From (Used In) Financing ActivitiesDecrease in bank loans(6,000)(6,000)Increase in banker's acceptances1,0005,000Redemption of shares(14)-Dividends paid(1,275)(857)(6,289)(1,857)Cash Flows Used In Investing ActivitiesAcquisition of property, plant and equipment(1,294)(315)(1,294)(315)Net cash inflow (outflow)2,962(756)Cash position, beginning of year(8,450)(9,407)Cash position, end of year(5,488)(10,163)Cash position is comprised of :Cash and cash equivalents398328Bank overdraft(5,886)(10,491)(5,488)(10,163)GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollar)Share CapitalRetained Earnings Total$$$Balance as at August 31, 20119,222104,682113,904Net earnings-889889Transactions with owners, recorded directly in shareholders' equityDividends-(857)(857)Balance as at November 30, 20119,222104,714113,936Balance as at August 31, 20129,154106,882116,036Net earnings-739739Transactions with owners, recorded directly in shareholders' equityDividends-(1,275)(1,275)Redemption of Shares(2)(12)(14)Balance as at November 30, 20129,152106,334115,486FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Goodfellow Inc.Richard GoodfellowPresident and CEO450 635-6511450 635-3730 (FAX)info@goodfellowinc.com