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 Second Quarter Ended February 28, 2013

Tuesday, March 26, 2013

Goodfellow Reports its Results for the Second Quarter Ended February 28, 201309:19 EDT Tuesday, March 26, 2013DELSON, QUEBEC--(Marketwire - March 26, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the second quarter ended February 28, 2013. The Company recorded a net loss of $(0.9) million or $(0.11) per share compared to $(0.6) million or $(0.07) per share during the corresponding period a year ago. Consolidated sales for the three months ended February 28, 2013 were $95.4 million compared to $101.1 million last year. Sales during the second quarter declined due to unfavourable weather conditions, and a reduced demand from our retailers business. The decrease was mitigated by the increased demand for our value-added product lines and the introduction of new product lines compared to last year. The Canadian housing market conditions were sluggish with new housing starts decreasing 11.7% to 178,100 units on average (Source: CMHC) for the three months ended February 28, 2013 compared to 201,800 units during the second quarter a year ago.Cash flow from operations (excluding non-cash working capital income tax and interest paid) for the second quarter of Fiscal 2013 closed at $(0.8) million from $(0.4) million for the same period last year. Operational costs during the second quarter increased with the increased production of value added products and higher maintenance costs during the cold winter months. As a result, operating costs during the second quarter increased 6% compared to the second quarter last year.On a year-to-date basis, the Company recorded a net loss of $(0.2) million or $(0.02) per share compared to net income of $0.3 million or $0.03 per share a year ago. Consolidated sales for the six months ended February 28, 2013 were $207.5 million compared to $207.2 million in the previous year. Cash flow from operations (excluding non-cash working capital income tax and interest paid) for the first six months of Fiscal 2013 decreased to $0.7 million from $1.3 million for the same period last year."Continued global financial uncertainties, the harsh winter across the country, and the sharp reduction in demand at the retail customer level all added up to making Q2 a difficult one." said Richard Goodfellow, President and Chief Executive Officer. "We continue to be however cautiously optimistic for the spring period with a strong order file in hand."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.Condensed Interim Consolidated Statements of Comprehensive Income(in thousands of dollars, except per share amounts)(unaudited)Three MonthsSix Monthsended Feb 28ended Feb 282013201220132012$$$$Sales95,429101,122207,476207,161ExpensesCost of goods sold77,65584,095168,555169,665Selling, administrative and general expenses18,70017,59538,36436,441Financial costs36735180968596,722102,041207,728206,791Earnings before income taxes(1,293)(919)(252)370Income taxes(375)(285)(73)115Net earnings, being comprehensive income(918)(634)(179)255Earnings per shareBasic and diluted(0.11)(0.07)(0.02)0.03GOODFELLOW INC.Condensed Interim Consolidated Statements of Financial Position(in thousands of dollars)(unaudited)Feb 28Feb 29Aug 31201320122012$$$AssetsCurrent AssetsCash and cash equivalents572267707Trade and other receivables58,83858,97683,083Income taxes recoverable5114,934-Inventories85,86872,67963,736Prepaid expenses3,6701,8743,474Total Current Assets149,459138,730151,000Non Current AssetsProperty, plant and equipment36,25336,18035,743Defined benefit plan asset358--186,070174,910186,743LiabilitiesCurrent liabilitiesBank indebtedness45,34533,03537,157Trade and other payables22,03623,65829,060Income taxes payable--22Total Current Liabilities67,38156,69366,239Non-Current LiabilitiesProvisions1,4571,5131,442Long term debt150--Deferred income taxes2,5142,1952,514Defined benefit plan obligation-1,239512Total Non-Current Liabilities4,1214,9474,46871,50261,64070,707Shareholders' equityShare capital9,1529,2189,154Retained earnings105,416104,052106,882114,568113,270116,036186,070174,910186,743GOODFELLOW INC.Condensed Consolidated Statements of Cash Flows(in thousands of dollars)(unaudited)Three MonthsSix Monthsended Feb 28ended Feb 282013201220132012$$$$Cash Flows Used From Operating ActivitiesNet Earnings(918)(634)(179)255Adjustments for :Depreciation6877131,3481,416Accretion expense on Provisions871515Income tax expenses(375)(284)(73)115Interest expenses197184411343Funding in excess of pension plan of expenses(367)(361)(869)(809)(768)(375)6531,335Changes in non-cash working capital items(14,711)(3,335)(5,060)(2,592)Interest paid(247)(274)(460)(402)Income taxes paid(146)(432)(460)(1,341)(15,104)(4,041)(5,980)(4,335)Cash Flows Used By Financing ActivitiesIncrease (Decrease) in bank loan14,0002,0008,000(4,000)(Decrease) Increase in banker's acceptances(5,000)4,000(4,000)9,000Long term debt150-150-Redemption of shares-(32)(14)(32)Dividends paid--(1,275)(857)9,1505,9682,8614,111Cash Flows Used By Investing ActivitiesAcquisition of property, plant and equipment(563)(157)(1,857)(472)(563)(157)(1,857)(472)Net cash (outflow) inflow(7,285)1,395(4,323)639Cash position, beginning of period(5,488)(10,163)(8,450)(9,407)Cash position, end of period(12,773)(8,768)(12,773)(8,768)Cash position is comprised of :Cash and cash equivalents572267572267Bank overdraft(13,345)(9,035)(13,345)(9,035)(12,773)(8,768)(12,773)(8,768)GOODFELLOW INC.Condensed Consolidated Statements of Change in Shareholder's Equity (in thousands of dollars)(unaudited)ShareRetainedCapitalEarningsTotal$$$Balance as at August 31, 20129,154106,882116,036Net earnings-(179)(179)Transactions with owners, recorded directly in equityDividends-(1,275)(1,275)Share repurchased(2)(12)(14)Balance as at February 28, 20139,152105,416114,568ShareRetainedCapitalEarningsTotal$$$Balance as at August 31, 20119,222104,682113,904Net earnings-255255Transactions with owners, recorded directly in equityDividends-(857)(857)Share repurchased(4)(28)(32)Balance as at February 29, 20129,218104,052113,270FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Goodfellow Inc.Richard GoodfellowPresident and CEO(450) 635-6511(450) 635-3730 (FAX)info@goodfellowinc.com