News Column

Goodfellow Reports Its Results for the First Quarter of Fiscal 2013

Dec 19 2012 12:00AM

Marketwire

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DELSON, QUEBEC -- (Marketwire) -- 12/19/12 -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended November 30, 2012. The Company generated net earnings of $0.7 million or $0.09 per share compared to net earnings of $0.9 million or $0.10 per share a year ago. Consolidated sales for the first quarter were $112.0 million compared to $106.0 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital, income tax paid and interest paid) for the first quarter decreased to $1.4 million from $1.7 million for the same period last year. Management's focus on growing sales growth was maintained and as such, consolidated sales grew 6% during the first quarter. Sales grew in most regions except BC and Ontario where demand from retailers and industrial projects declined compared to the first quarter a year ago. Our sales team focused its efforts on value-added lumber products in order to diversify our product mix in many areas of our business. On the operating side, direct, selling and administrative expenses increased 4.4% or $0.8 million due to increased production throughput and lease and rental increases.

"Our first quarter results although minimal in profit met expectations." said Richard Goodfellow, President and Chief Executive Officer. "Business conditions remain sluggish and very competitive. All efforts are being made to improve margins and control costs.

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 IncomeFor the First Quarter ended November 30, 2012 and 2011(in thousands of dollars, except per share amounts)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011---------------------------------------------------------------------------- $ $Sales 112,047 106,039----------------------------------------------------------------------------Expenses Cost of goods sold 90,899 85,571 Selling, administrative and general expenses 19,665 18,846 Net financial costs 442 334---------------------------------------------------------------------------- 111,006 104,751----------------------------------------------------------------------------Earnings before income taxes 1,041 1,288Income taxes 302 399----------------------------------------------------------------------------Net earnings, being comprehensive income 739 889----------------------------------------------------------------------------Earnings per share---------------------------------------------------------------------------- Basic and diluted 0.09 0.10----------------------------------------------------------------------------



GOODFELLOW INC.Consolidated Statements of Financial PositionAs at November 30, 2012 and 2011(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011---------------------------------------------------------------------------- $ $AssetsCurrent Assets Cash and cash equivalents 398 328 Trade and other receivables 56,196 55,689 Income taxes recoverable - 4,217 Inventories 79,513 72,339 Prepaid expenses 2,010 3,314----------------------------------------------------------------------------Total Current Assets 138,117 135,887Non-Current Assets Property, plant and equipment 36,376 36,737---------------------------------------------------------------------------- 174,493 172,624--------------------------------------------------------------------------------------------------------------------------------------------------------LiabilitiesCurrent liabilities Bank indebtedness 28,886 28,491 Trade and other payables 26,140 24,896 Income taxes payable 9 -----------------------------------------------------------------------------Total Current Liabilities 55,035 53,387Non-Current Liabilities Provisions 1,449 1,506 Deferred income taxes 2,514 2,195 Defined benefit plan obligation 9 1,600----------------------------------------------------------------------------Total Non-Current Liabilities 3,972 5,301---------------------------------------------------------------------------- 59,007 58,688----------------------------------------------------------------------------Shareholders' equity Share capital 9,152 9,222 Retained earnings 106,334 104,714---------------------------------------------------------------------------- 115,486 113,936---------------------------------------------------------------------------- 174,493 172,624--------------------------------------------------------------------------------------------------------------------------------------------------------GOODFELLOW INC.Consolidated Statements of Cash FlowsFor the First Quarter ended November 30, 2012 and 2011(in thousands of dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011---------------------------------------------------------------------------- $ $Cash Flows Used in Operating Activities Net Earnings 739 889 Adjustments for : Depreciation 661 703 Accretion expense on environmental provision 7 8 Income tax expense 302 399 Interest expense 215 159 Funding in excess of pension plan expense (503) (448)---------------------------------------------------------------------------- 1,421 1,710---------------------------------------------------------------------------- Changes in non-cash working capital items 9,631 743 Interest paid (193) (129) Income taxes paid (314) (908)---------------------------------------------------------------------------- 9,124 (294)----------------------------------------------------------------------------Cash Flows From (Used In) Financing Activities Decrease in bank loans (6,000) (6,000) Increase in banker's acceptances 1,000 5,000 Redemption of shares (14) - Dividends paid (1,275) (857)---------------------------------------------------------------------------- (6,289) (1,857)----------------------------------------------------------------------------Cash Flows Used In Investing Activities Acquisition of property, plant and equipment (1,294) (315)---------------------------------------------------------------------------- (1,294) (315)----------------------------------------------------------------------------Net cash inflow (outflow) 2,962 (756)Cash position, beginning of year (8,450) (9,407)----------------------------------------------------------------------------Cash position, end of year (5,488) (10,163)--------------------------------------------------------------------------------------------------------------------------------------------------------Cash position is comprised of : Cash and cash equivalents 398 328 Bank overdraft (5,886) (10,491)---------------------------------------------------------------------------- (5,488) (10,163)--------------------------------------------------------------------------------------------------------------------------------------------------------GOODFELLOW INC.Consolidated Statements of Change in Shareholders' EquityFor the First Quarter ended November 30, 2012 and 2011(in thousands of dollar)-------------------------------------------------------------------------------------------------------------------------------------------------------- Share Retained Capital Earnings Total---------------------------------------------------------------------------- $ $ $Balance as at August 31, 2011 9,222 104,682 113,904----------------------------------------------------------------------------Net earnings - 889 889Transactions with owners, recorded directly in shareholders' equity Dividends - (857) (857)----------------------------------------------------------------------------Balance as at November 30, 2011 9,222 104,714 113,936----------------------------------------------------------------------------Balance as at August 31, 2012 9,154 106,882 116,036----------------------------------------------------------------------------Net earnings - 739 739Transactions with owners, recorded directly in shareholders' equity Dividends - (1,275) (1,275) Redemption of Shares (2) (12) (14)----------------------------------------------------------------------------Balance as at November 30, 2012 9,152 106,334 115,486----------------------------------------------------------------------------





Contacts:
Goodfellow Inc.
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com





Source: Marketwire


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