Goodfellow Inc. (TSX:GDL) announced today its financial results for the second
quarter ended February 28, 2014. The Company reported a net loss of $0.3 million
or $0.04 per share compared to a net loss of $0.9 million or $0.11 per share a
year ago. Consolidated sales for the second quarter were $95.4 million (same as
last year). Sales in the US and export activities continued to be strong
throughout the second quarter while sales in Canada declined impacted by the
slower economy in Quebec and decreasing housing starts in Eastern Canada.
Ontario and Western Canada sales posted a strong performance to mitigate this
decline. On the operating side, costs remained under control in the face of
challenging winter conditions. As a result, direct, selling, and administrative
expenses remained level with last year at $18.7 million. The Company renewed its
loan agreement increasing its loan facility to $90 million and finalized its
acquisition of its Drummondville plant for a total consideration of $3.4
million.
For the six months ended February 28, 2014, the Company generated net earnings
of $0.9 million or $0.10 per share compared to net loss of $0.2 million or
($0.02) per share a year ago. Consolidated sales for the six months of fiscal
2014 were $205.7 million compared to $207.5 million for the same period a year
ago.
"As usual the winter quarter poses a major challenge for the Company but the
first half results are markedly better than last year. Combining this with the
weaker Canadian dollar for US sourcing and Quebec's weak economy, the results
were predictable." said Richard Goodfellow, President and Chief Executive
Officer. "Our US export business and our hardwood and softwood core lumber
businesses remained however very solid accounting for the improvement in the
results. We are well postured now to face the expected spring demand."
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers
and distributors of lumber and hardwood flooring products. Goodfellow shares
trade on the Toronto Stock Exchange under the symbol GDL.
GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
(in thousands of dollars, except per share amounts)
Unaudited
----------------------------------------------------------------------------
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Six months ended Three months ended
February 28 February 28
2014 2013 2014 2013
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$ $ $ $
Sales 205,721 207,476 95,355 95,429
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Expenses
Cost of goods sold 165,735 168,555 76,631 77,655
Selling, administrative
and general expenses 37,873 38,364 18,696 18,700
Net financial costs 861 809 418 367
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204,469 207,728 95,745 96,722
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Earnings before income
taxes 1,252 (252) (390) (1,293)
Income taxes 363 (73) (113) (375)
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Net earnings, being
comprehensive income 889 (179) (277) (918)
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Earnings per share
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Basic and diluted 0.10 (0.02) (0.04) (0.11)
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GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
----------------------------------------------------------------------------
----------------------------------------------------------------------------
February 28 August 31
February 28 2013 2013
2014 (Restated) (Restated)
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$ $ $
Assets
Current Assets
Cash and cash equivalents 234 572 197
Trade and other receivables 56,651 58,838 72,838
Income taxes receivable 37 511 -
Inventories 95,447 85,868 74,255
Prepaid expenses 3,189 3,670 3,433
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Total Current Assets 155,558 149,459 150,723
Non-Current Assets
Property, plant and equipment 38,095 36,253 35,422
Defined benefit plan asset (Note 3) 1,374 - 1,041
Deferred tax asset (Note 3) - 167 -
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Total Non-Current Assets 39,469 36,420 36,463
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195,027 185,879 187,186
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Liabilities
Current liabilities
Bank indebtedness 44,041 45,345 34,169
Trade and other payables 28,725 22,036 29,457
Income taxes payable - - 742
Current portion of long term debt 219 - 38
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Total Current Liabilities 72,985 67,381 64,406
Non-Current Liabilities
Provisions 1,490 1,457 1,471
Long Term Debt 840 150 112
Deferred income taxes (Note 3) 2,393 - 2,393
Defined benefit plan obligation (Note
3) 993 9,685 1,666
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Total Non-Current Liabilities 5,716 11,292 5,642
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78,701 78,673 70,048
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Shareholders' equity
Share capital 9,152 9,152 9,152
Retained earnings (Note 3) 107,174 98,054 107,986
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116,326 107,206 117,138
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195,027 185,879 187,186
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GOODFELLOW INC.
Consolidated Statements of Cash Flows
(in thousands of dollars)
Unaudited
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Six months ended Three months ended
February 28 February 28
2014 2013 2014 2013
----------------------------------------------------------------------------
$ $ $ $
Cash Flows Used in
Operating Activities
Net Earnings 889 (179) (277) (918)
Adjustments for :
Depreciation 1,277 1,348 644 687
Accretion expense on
environmental
provision 20 15 12 8
Gain on disposal of
fixed assets (5) - - -
Income tax expense 363 (73) (113) (375)
Interest expense 444 411 230 197
Funding in excess of
pension plan
expense (1,005) (869) (453) (367)
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1,983 653 43 (768)
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Changes in non-cash
working capital items (5,411) (5,060) (10,031) (14,691)
Interest paid (528) (460) (352) (267)
Income taxes paid (1,143) (460) (463) (146)
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(7,082) (5,980) (10,846) (15,104)
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Cash Flows From (Used
In) Financing
Activities
Decrease in bank loans 6,000 8,000 14,000 14,000
Increase in banker's
acceptances 2,000 (4,000) 1,000 (5,000)
Long term debt 909 150 909 150
Redemption of shares - (14) - -
Dividends paid (1,701) (1,275) - -
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7,208 2,861 15,909 9,150
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Cash Flows Used In
Investing Activities
Acquisition of
property, plant and
equipment (3,954) (1,857) (3,594) (563)
Proceeds on disposal
of capital assets 10 - - -
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(3,944) (1,857) (3,594) (563)
----------------------------------------------------------------------------
Net cash inflow
(outflow) (1,835) (4,323) 1,512 (7,285)
Cash position, beginning
of year (4,972) (8,450) (8,319) (5,488)
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Cash position, end of
year (6,807) (12,773) (6,807) (12,773)
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Cash position is
comprised of :
Cash and cash
equivalents 234 572 234 572
Bank overdraft (7,041) (13,345) (7,041) (13,345)
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(6,807) (12,773) (6,807) (12,773)
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GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For The Six Months Ended February 28, 2014 and 2013
(in thousands of dollar)
Unaudited
----------------------------------------------------------------------------
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Share Retained
Capital Earnings Total
----------------------------------------------------------------------------
$ $ $
Balance as at August 31, 2012 9,154 99,520 108,674
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Net earnings - (179) (179)
Transactions with owners, recorded
directly in shareholders' equity
Dividends - (1,275) (1,275)
Redemption of Shares (2) (12) (14)
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Balance as at February 28, 2013 9,152 98,054 107,206
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Balance as at August 31, 2013 9,152 107,986 117,138
----------------------------------------------------------------------------
Net earnings - 889 889
Transactions with owners, recorded
directly in shareholders' equity
Dividends - (1,701) (1,701)
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Balance as at February 28, 2014 9,152 107,174 116,326
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FOR FURTHER INFORMATION PLEASE CONTACT:
Goodfellow Inc.
Richard Goodfellow
President and CEO
Tel: 450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com
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