Goodfellow Reports its Results for the First Quarter Ended November 30, 2013

Goodfellow Reports its Results for the First Quarter Ended November 30, 2013
  
 

DELSON, QUEBEC--(Marketwired - Dec 19, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2013. The Company generated net earnings of $1.2 million or $0.14 per share compared to net earnings of $0.7 million or $0.09 per share a year ago. Consolidated sales for the first quarter were $110.4 million compared to $112.0 million for the same period a year ago. Sales in the US and export activities were strong throughout the first quarter while the economy and housing starts in Canada faced some headwind. Sales grew in most regions except Quebec and the Atlantic provinces where demand from retailers and manufacturers declined rapidly in the latter part of the quarter. Ontario, Western Canada, the US and exports posted a good performance to offset this decline. On the operating side, many measures were taken to reduce our cost structure. As a result, direct, selling and administrative expenses decreased 2.5% or $0.5 million.

"Business conditions remain very tenuous and competitive going into this early winter in Canada. We must be very careful managing our working capital." said Richard Goodfellow, President and Chief Executive Officer. "The decline in the Canadian dollar should yield benefits for us and our manufacturing customer base."

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, 2013 and 2012 (in thousands of dollars, except per share amounts)
		2013	2012
		$	$
Sales		110,366	112,047
Expenses
	Cost of goods sold	89,104	90,899
	Selling, administrative and general expenses	19,177	19,665
	Net financial costs	443	442
		108,724	111,006
Earnings before income taxes		1,642	1,041
Income taxes		476	302
Net earnings, being comprehensive income		1,166	739
Earnings per share
	Basic and diluted	0.14	0.09

GOODFELLOW INC. Consolidated Statements of Financial Position As at November 30, 2013 and 2012 (in thousands of dollars)
		2013	2012
		$	$
Assets
Current Assets
Cash and cash equivalents		320	398
Trade and other receivables		52,545	56,196
Income taxes recoverable		-	-
Inventories		88,644	79,513
Prepaid expenses		2,553	2,010
Total Current Assets		144,062	138,117
Non-Current Assets
Property, plant and equipment		35,145	36,376
Defined benefit plan asset		1,220	-
Deferred tax asset		-	167
		180,427	174,660
Liabilities
Current liabilities
Bank indebtedness		30,639	28,886
Trade and other payables		27,332	26,140
Income taxes payable		538	9
Current portion of long term debt		50	-
Total Current Liabilities		58,559	55,035
Non-Current Liabilities
	Provisions	1,479	1,449
	Long Term Debt	100	-
	Deferred income taxes	2,393	-
	Defined benefit plan obligation	1,293	10,051
Total Non-Current Liabilities		5,265	11,500
		63,824	66,535
Shareholders' equity
Share capital		9,152	9,152
Retained earnings		107,451	98,973
		116,603	108,125
		180,427	174,660

GOODFELLOW INC. Consolidated Statements of Cash Flows For the First Quarter ended November 30, 2013 and 2012 (in thousands of dollars)
			2013		2012
			$		$
Cash Flows Used in Operating Activities
	Net Earnings		1,166		739
	Adjustments for :
		Depreciation	633		661
		Accretion expense on environmental provision	8		7
		Gain on disposal of fixed assets	(5	)	-
		Income tax expense	476		302
		Interest expense	214		215
		Funding in excess of pension plan expense	(552	)	(503	)
			1,940		1,421
	Changes in non-cash working capital items		4,621		9,631
	Interest paid		(176	)	(193	)
	Income taxes paid		(680	)	(314	)
			3,765		9,124
Cash Flows From (Used In) Financing Activities
	Decrease in bank loans		(8,000	)	(6,000	)
	Increase in banker's acceptances		1,000		1,000
	Redemption of shares		-		(14	)
	Dividends paid		(1,701	)	(1,275	)
			(8,701	)	(6,289	)
Cash Flows Used In Investing Activities
	Acquisition of property, plant and equipment		(360	)	(1,294	)
	Proceeds on disposal of capital assets		10		-
			(350	)	(1,294	)
Net cash inflow (outflow)			(3,346	)	2,962
Cash position, beginning of year			(4,973	)	(8,450	)
Cash position, end of year			(8,319	)	(5,488	)
Cash position is comprised of :
	Cash and cash equivalents		320		398
	Bank overdraft		(8,639	)	(5,886	)
			(8,319	)	(5,488	)

GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity For the First Quarter ended November 30, 2013 and 2012 (in thousands of dollar)
		Share Capital		Retained Earnings		Total
		$		$		$
Balance as at August 31, 2012		9,154		99,521		108,675
Net earnings		-		739		739
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(1,275	)	(1,275	)
	Redemption of Shares	(2	)	(12	)	(14	)
Balance as at November 30, 2012		9,152		98,973		108,125
Balance as at August 31, 2013		9,152		107,986		117,138
Net earnings		-		1,166		1,166
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(1,701	)	(1,701	)
Balance as at November 30, 2013		9,152		107,451		116,603

Goodfellow Inc.Richard GoodfellowPresident and CEO450 635-6511450 [e-mail]