DELSON, QUEBEC--(Marketwired - July 8, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the six months ended May 31, 2015. The Company reported a net income of $2.9 million or $0.34 per share compared to $1.8 million or $0.21 per share a year ago. For the three months ended May 31, 2015, the Company reported net income of $3.2 million or $0.38 per share compared to $2.1 million or $0.25 per share a year ago. Consolidated sales for the six months ended May 31, 2015 were $252.1 million compared to $229.4 million last year. Consolidated sales for the three months ended May 31, 2015 were $154.0 million compared to $134.0 million last year. Sales in Canada during the first six months of fiscal 2015 increased 8.8% compared to the same period a year ago mainly due to a strong second quarter from all sales groups and regions. Sales in the United States for the first six months ended May 31, 2015 increased 21% on a Canadian dollar basis compared to the same period last year due to the increased market presence and increased demand for our value-added product lines. On a non-converted basis, US denominated sales increased 9% compared to last year. Finally, Export sales increased 8% during the first six months of fiscal 2015 compared to the same period a year ago mainly due to increasing demand for value added products in Asia and Europe mitigated by a decrease in the United Kingdom region. On the operating side, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased production output of value-added products, increased selling expenses related to the improved sales performance and increased administration expenses linked with the Saskatoon branch opening.
"With sales up nearly 15% on the quarter and net income up 56% over last year we are happy with our progress so far" said Denis Fraser, President and Chief Executive Officer. "We remain optimistic that we will achieve our sales and financial goals for the year."
The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable August 14, 2015, to all shareholders of record as of July 31, 2015.
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 three months and six months ended May 31, 2015 and 2014 |
| (in thousands of dollars, except per share amounts) |
| (Unaudited) |
| |
|
|
|
|
| |
For the three months ended |
For the six months ended |
| |
May 31
2015 |
May 31
2014 |
May 31
2015 |
May 31
2014 |
| |
$ |
$ |
$ |
$ |
| |
|
|
|
|
| Sales |
153,975 |
134,035 |
252,072 |
229,390 |
| Expenses |
|
|
|
|
| |
Cost of goods sold (Note 4) |
126,325 |
109,310 |
204,402 |
185,941 |
| |
Selling, administrative and general expenses (Note 4) |
22,362 |
21,231 |
42,351 |
39,927 |
| |
Net financial costs |
713 |
567 |
1,247 |
985 |
| |
149,400 |
131,108 |
248,000 |
226,853 |
| |
|
|
|
|
| Earnings before income taxes |
4,575 |
2,927 |
4,072 |
2,537 |
| |
|
|
|
|
| Income taxes |
1,327 |
849 |
1,181 |
736 |
| |
|
|
|
|
| Net earnings, being comprehensive income |
3,248 |
2,078 |
2,891 |
1,801 |
| |
|
|
|
|
| Earnings per share |
|
|
|
|
| |
Basic and diluted |
0.38 |
0.25 |
0.34 |
0.21 |
| |
|
|
|
| |
|
|
|
| |
|
|
|
| GOODFELLOW INC. |
| Consolidated Statements of Financial Position |
| (in thousands of dollars) |
| |
|
|
|
| |
As at |
As at |
As at |
| |
May 31 |
November 30 |
May 31 |
| |
2015 |
2014 |
2014 |
| |
(Unaudited) |
(Audited) |
(Unaudited) |
| |
$ |
$ |
$ |
| Assets |
|
|
|
| Current Assets |
|
|
|
| |
Cash and cash equivalents |
494 |
860 |
394 |
| |
Trade and other receivables (Note 6) |
98,708 |
60,591 |
86,380 |
| |
Inventories |
107,384 |
92,257 |
102,153 |
| |
Prepaid expenses |
2,852 |
3,271 |
5,014 |
| Total Current Assets |
209,438 |
156,979 |
193,941 |
| |
|
|
|
| Non-Current Assets |
|
|
|
| |
Property, plant and equipment |
36,626 |
37,020 |
37,807 |
| |
Defined benefit plan asset |
1,832 |
1,848 |
1,531 |
| Total Non-Current Assets |
38,458 |
38,868 |
39,338 |
| Total Assets |
247,896 |
195,847 |
233,279 |
| |
|
|
|
| Liabilities |
|
|
|
| Current liabilities |
|
|
|
| |
Bank indebtedness (Note 5) |
66,227 |
43,099 |
76,326 |
| |
Trade and other payables (Note 11) |
52,876 |
25,779 |
32,522 |
| |
Income taxes payable |
679 |
997 |
359 |
| |
Provision |
941 |
979 |
- |
| |
Current portion of long term debt (Note 5) |
50 |
229 |
216 |
| Total Current Liabilities |
120,773 |
71,083 |
109,423 |
| |
|
|
|
| Non-Current Liabilities |
|
|
|
| |
Provision |
499 |
473 |
1,502 |
| |
Long term debt (Note 5) |
37 |
692 |
769 |
| |
Deferred income taxes |
2,535 |
2,535 |
2,393 |
| |
Defined benefit plan obligation |
1,675 |
1,578 |
788 |
| Total Non-Current Liabilities |
4,746 |
5,278 |
5,452 |
| Total Liabilities |
125,519 |
76,361 |
114,875 |
| |
|
|
|
| Shareholders' equity |
|
|
|
| |
Share capital |
9,152 |
9,152 |
9,152 |
| |
Retained earnings |
113,225 |
110,334 |
109,252 |
| |
122,377 |
119,486 |
118,404 |
| Total Liabilities and Shareholders' Equity |
247,896 |
195,847 |
233,279 |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| GOODFELLOW INC. |
|
| Consolidated Statements of Cash Flows |
|
| For the three months and six months ended May 31, 2015 and 2014 |
|
| (in thousands of dollars) |
|
| (Unaudited) |
|
| |
|
|
|
|
|
|
|
|
| |
For the three months ended |
|
For the six months ended |
|
| |
May 31 |
|
May 31 |
|
May 31 |
|
May 31 |
|
| |
2015 |
|
2014 |
|
2015 |
|
2014 |
|
| |
$ |
|
$ |
|
$ |
|
$ |
|
| |
|
|
|
|
|
|
|
|
| Operating Activities |
|
|
|
|
|
|
|
|
| |
Net Earnings |
3,248 |
|
2,078 |
|
2,891 |
|
1,801 |
|
| |
Adjustments for : |
|
|
|
|
|
|
|
|
| |
|
Depreciation |
746 |
|
765 |
|
1,477 |
|
1,409 |
|
| |
|
Accretion expense on environmental provision |
3 |
|
11 |
|
(11 |
) |
23 |
|
| |
|
(Gain) Loss on disposal of property, plant and |
|
|
|
|
|
|
|
|
| |
|
equipment |
(21 |
) |
- |
|
16 |
|
- |
|
| |
|
Income tax expense |
1,327 |
|
849 |
|
1,181 |
|
736 |
|
| |
|
Interest expense |
463 |
|
397 |
|
807 |
|
627 |
|
| |
|
Funding in deficit (excess) of pension plan expense |
56 |
|
(362 |
) |
113 |
|
(815 |
) |
| |
5,822 |
|
3,738 |
|
6,474 |
|
3,781 |
|
| |
|
|
|
|
|
|
|
|
| |
Changes in non-cash working capital items (Note 14) |
4,134 |
|
(34,442 |
) |
(25,771 |
) |
(44,473 |
) |
| |
Interest paid |
(401 |
) |
(417 |
) |
(765 |
) |
(769 |
) |
| |
Income taxes paid |
(284 |
) |
(453 |
) |
(1,499 |
) |
(916 |
) |
| |
3,449 |
|
(35,312 |
) |
(28,035 |
) |
(46,158 |
) |
| Net Cash Flows from Operating Activities |
9,271 |
|
(31,574 |
) |
(21,561 |
) |
(42,377 |
) |
| |
|
|
|
|
|
|
|
|
| Financing Activities |
|
|
|
|
|
|
|
|
| |
(Decrease) Increase in bank loans |
(6,000 |
) |
(9,800 |
) |
(1,500 |
) |
4,200 |
|
| |
Increase in banker's acceptances |
2,000 |
|
40,000 |
|
22,000 |
|
41,000 |
|
| |
Long term debt |
(847 |
) |
(74 |
) |
(833 |
) |
835 |
|
| |
(4,847 |
) |
30,126 |
|
19,667 |
|
46,035 |
|
| |
|
|
|
|
|
|
|
|
| Investing Activities |
|
|
|
|
|
|
|
|
| |
Acquisition of property, plant and equipment |
(611 |
) |
(477 |
) |
(1,117 |
) |
(4,071 |
) |
| |
Proceeds on disposal of property, plant and equipment |
3 |
|
- |
|
17 |
|
- |
|
| |
(608 |
) |
(477 |
) |
(1,100 |
) |
(4,071 |
) |
| |
|
|
|
|
|
|
|
|
| Net cash inflow (outflow) |
3,816 |
|
(1,925 |
) |
(2,994 |
) |
(413 |
) |
| Cash position, beginning of period |
(10,549 |
) |
(6,807 |
) |
(3,739 |
) |
(8,319 |
) |
| Cash position, end of period |
(6,733 |
) |
(8,732 |
) |
(6,733 |
) |
(8 732 |
) |
| |
|
|
|
|
|
|
|
|
| Cash position is comprised of : |
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents |
494 |
|
394 |
|
494 |
|
394 |
|
| |
Bank overdraft (Note 5) |
(7,227 |
) |
(9,126 |
) |
(7,227 |
) |
(9,126 |
) |
| |
(6,733 |
) |
(8,732 |
) |
(6,733 |
) |
(8,732 |
) |
| |
| |
| |
| GOODFELLOW INC. |
Consolidated Statements of Change in Shareholders' Equity
For the six months ended May 31, 2015 and 2014 |
| (in thousands of dollars) |
| (Unaudited) |
| |
| |
Share
Capital |
Retained
Earnings |
Total |
| |
$ |
$ |
$ |
| |
|
|
|
| Balance as at November 30, 2013 |
9,152 |
107,451 |
116,603 |
| |
|
|
|
| |
Net earnings |
- |
1,801 |
1,801 |
| |
|
|
|
| Total Comprehensive income |
9,152 |
109,252 |
118,404 |
| |
|
|
|
| Transactions with owners, recorded directly in shareholders' equity |
- |
- |
- |
| |
|
|
|
| Balance as at May 31, 2014 |
9,152 |
109,252 |
118,404 |
| |
|
|
|
| |
|
|
|
| Balance as at November 30, 2014 (Audited) |
9,152 |
110,334 |
119,486 |
| |
|
|
|
| |
Net earnings |
- |
2,891 |
2,891 |
| |
|
|
|
| Total Comprehensive income |
9,152 |
113,225 |
122,377 |
| |
|
|
|
| Transactions with owners, recorded directly in shareholders' equity |
- |
- |
- |
| |
|
|
|
| Balance as at May 31, 2015 |
9,152 |
113,225 |
122,377 |