Goodfellow Reports Its Results for the Three Months Ended February 28, 2018

DELSON, Quebec, April 13, 2018 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2018. The Company reported a net loss of $(1.4) million or $(0.17) per share compared to a net loss of $(5.4) million or $(0.63) per share a year ago.

Consolidated sales for the three months ended February 28th, 2018 were $96.7 million compared to $113.5 million last year. Sales in Canada decreased 14% compared to the same period a year ago mainly due to a decrease in Pressure Treated Wood volume. Sales also declined in the export market and the USA by 16% and 22% respectively due to reduced demand for hardwood lumber. On the operating side, selling and administrative costs decreased overall by $1.7 million and overall gross profit before selling and administrative costs rose by $3.7 million.

“It is clear we are moving towards historical result levels for the winter quarter. We are budgeting for a profitable balance of the year. Many measures are being taken to stimulate and grow profitable sales while we keep a very close watch on our cost base” said Patrick Goodfellow, President and Chief Executive Officer. “We continue to receive strong support from our customer and supplier base and employee morale has recovered from the dark days of last year”.

Goodfellow Inc. is a distributor of lumber products, building materials, 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 three months ended February 28, 2018 and 2017
(in thousands of dollars, except per share amounts)
Unaudited


For the three months ended
February 28
2018
February 28
2017
$ $
Sales96,684 113,490
Expenses
Cost of goods sold78,592 99,061
Selling, administrative and general expenses19,397 21,048
Loss on disposal of property, plant and equipment2 12
Net financial costs681 952
98,672 121,073
Loss before income taxes(1,988)(7,583)
Income taxes(557)(2,182)
Total comprehensive loss(1,431)(5,401)
Net loss per share - Basic and diluted(0.17)(0.63)


GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
As atAs atAs at
February 28
2018
November 30
2017
February 28
2017
$$$
Assets
Current Assets
Cash1,547 1,622935
Trade and other receivables63,396 58,31770,570
Income taxes receivable2,262 1,5899,336
Inventories102,519 88,860113,065
Prepaid expenses4,190 3,0072,611
Total Current Assets173,914 153,395196,517
Non-Current Assets
Property, plant and equipment35,684 36,19838,085
Intangible assets4,800 4,9425,347
Defined benefit plan asset2,409 2,4132,240
Investment in a joint venture285 2853,606
Total Non-Current Assets43,178 43,83849,278
Total Assets217,092 197,233245,795
Liabilities
Current liabilities
Bank indebtedness65,385 52,30986,170
Trade and other payables37,657 29,40948,332
Provision938 938932
Current portion of long-term debt108 139124
Total Current Liabilities104,088 82,795135,558
Non-Current Liabilities
Provision458 446488
Long-term debt52 5595
Deferred income taxes3,582 3,5823,296
Defined benefit plan obligation909 9211,066
Total Non-Current Liabilities5,001 5,0044,945
Total Liabilities109,089 87,799140,503
Shareholders’ equity
Share capital9,152 9,1529,152
Retained earnings98,851 100,28296,140
108,003 109,434105,292
Total Liabilities and Shareholders’ Equity217,092 197,233245,795


GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 28, 2018 and 2017
(in thousands of dollars)
Unaudited
For the three months ended
February 28
2018
February 28
2017
$ $
Operating Activities
Net loss(1,431)(5,401)
Adjustments for :
Depreciation902 949
Accretion expense on provision13 12
Decrease in provision- (30)
Income taxes(557)(2,182)
Loss on disposal of property, plant and equipment2 12
Interest expense476 692
Funding in (excess) deficit of pension plan expense(8)16
Share of the profits of a joint venture- (203)
(603)(6 135)
Changes in non-cash working capital items(11,464)15,867
Interest paid(686)(685)
Income taxes paid(116)(556)
(12,266)14,626
Net Cash Flows from Operating Activities (12,869)8,491
Financing Activities
Net decrease in bank loans(3,000)(11,000)
Net increase in banker’s acceptances16,000 -
Reimbursement of long-term debt(34)(43)
12,966 (11,043)
Investing Activities
Acquisition of property, plant and equipment(235)(210)
Increase in intangible assets(33)(89)
Proceeds on disposal of property, plant and equipment20 26
(248)(273)
Net cash outflow(151)(2,825)
Cash position, beginning of period313 (1,910)
Cash position, end of period162 (4,735)
Cash position is comprised of :
Cash1,547 935
Bank overdraft(1,385)(5,670)
162 (4,735)


GOODFELLOW INC.
Consolidated Statements of Change in Shareholders’ Equity
For the three months ended February 28, 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-(5,401)(5,401)
Total comprehensive loss-(5,401)(5,401)
Balance as at February 28, 20179,15296,140 105,292
Balance as at November 30, 2017 (Audited)9,152 100,282 109,434
Net loss-(1,431)(1,431)
Total comprehensive loss-(1,431)(1,431)
Balance as at February 28, 20189,152 98,851 108,003

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

Source:Goodfellow Inc.