Goodfellow Reports Its Results for the Second Quarter Ended May 31, 2019

DELSON, Quebec, July 04, 2019 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31, 2019. The Company reported a net income of $1.9 million or $0.22 per share compared to a net income of $1.8 million or $0.21 per share a year ago.

Consolidated sales for the three months ended May 31, 2019 were $123.7 million compared to $133.3 million last year. Sales in Canada alone decreased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $0.8 million.

For the six months ended May 31, 2019, the Company reported a net income of $0.3 million or $0.04 per share compared to a net income of $0.4 million or $0.04 per share a year ago. Consolidated sales for the six months ended May 31, 2019 were $211.9 million compared to $230.0 million last year. Sales in Canada decreased 8% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $1.9 million.

“The results of the second quarter reflect an aggressive market share retention strategy while at the same time launching some new exciting lines. A very late start to our seasonal business made it very challenging to realize our anticipated results”.

Goodfellow Inc. is a distributor of lumber products, building materials and floor coverings. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.

GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the three and six months ended May 31, 2019 and 2018
(in thousands of dollars, except per share amounts)
Unaudited

   
 For the three months endedFor the six months ended
 May 31
2019
May 31
2018
May 31
2019
May 31
2018
 $$$$
     
Sales123,713133,326211,866230,010
Expenses    
Cost of goods sold100,007108,774171,248187,366
Selling, administrative and general expenses20,26021,10638,62740,503
Loss on disposal of property, plant and equipment-37739
Net financial costs8638921,5541,573
 121,130130,809211,436229,481
     
Earnings before income taxes2,5832,517430529
     
Income taxes728705125148
     
Total comprehensive income1,8551,812305381
     
     
Net earnings per share - Basic0.220.210.040.04
Net earnings per share - Diluted0.210.210.030.04
     

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited

    
 As atAs atAs at
 May 31
2019
November 30
2018
May 31
2018
 $$$
Assets    
Current Assets   
Cash2,9422,5781,545
Trade and other receivables75,93950,00886,013
Income taxes receivable142-1,612
Inventories108,59492,544109,653
Prepaid expenses2,6263,1433,593
Total Current Assets190,243148,273202,416
    
Non-Current Assets   
Property, plant and equipment33,18634,35635,199
Intangible assets4,1454,4444,703
Defined benefit plan asset2,7022,7042,403
Investment in a joint venture25 25285
Other assets849 916849
Total Non-Current Assets40,90742,44543,439
Total Assets231,150190,718245,855
    
Liabilities   
Current liabilities   
Bank indebtedness68,00042,83583,343
Trade and other payables45,69629,19246,622
Income taxes payable- 409-
Provision336336964
Current portion of long-term debt151477
Total Current Liabilities114,04772,786131,006
    
Non-Current Liabilities   
Provision1,3241,317471
Long-term debt364349
Deferred income taxes3,652 3,6523,582
Defined benefit plan obligation12557932
Total Non-Current Liabilities5,1375,0695,034
Total Liabilities119,18477,855136,040
    
Shareholders’ Equity   
Share capital9,152 9,1529,152
Retained earnings102,814103,711100,663
 111,966112,863109,815
Total Liabilities and Shareholders’ Equity231,150190,718245,855
    

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three and six months ended May 31, 2019 and 2018
(in thousands of dollars)
Unaudited

   
   For the three months ended
   For the six months ended
 
 May 31
2019
 May 31
2018
 May 31
2019
 May 31
2018
 
 
 $ $ $
 $ 
     
Operating Activities    
Net earnings1,855 1,812 305 381 
Adjustments for:    
Depreciation856 912 1,723 1,814 
Accretion expense on provision4 13 7 26 
Increase in provision- 25 - 25 
Income taxes728 705 125 148 
Loss on disposal of property, plant and equipment- 37 7 39 
Interest expense623 653 1,105 1,129 
Funding in deficit of pension plan expense36 29 71 21 
Other assets-  - 67 33 
 4,102 4 186 3,410 3,616 
     
Changes in non-cash working capital items(13,424)(21,034)(25,205)(32,531)
Interest paid(725)(656)(1,211)(1,342)
Income taxes paid(223)(55)(676)(171)
 (14,372)(21,745)(27,092)(34,044)
Net Cash Flows from Operating Activities (10,270)(17,559)(23,682)(30,428)
     
Financing Activities    
Net increase (decrease) in bank loans5,000 (1,000)2,000 (4,000)
Net increase in banker’s acceptances10,000 14,000 25,000 30,000 
Reimbursement of long-term debt(2)(34)(6)(68)
Dividend Paid(851)- (851)- 
 14,147 12,966 26,143 25,932 
     
Investing Activities    
Acquisition of property, plant and equipment87 (316)(225)(551)
Increase in intangible assets(26)(79)(45)(112)
Proceeds on disposal of property, plant and equipment- 28 8 48 
 61 (367)(262)(615)
     
Net cash inflow (outflow)3,938 (4,960)2,199 (5,111)
Cash position, beginning of period(996)162 743 313 
Cash position, end of period2,942 (4,798)2,942 (4,798)
     
Cash position is comprised of:    
Cash2,942 1,545 2,942 1,545 
Bank overdraft- (6,343)- (6,343)
 2,942 (4,798)2,942 (4,798)
         

GOODFELLOW INC.
Consolidated Statements of Change in Shareholders’ Equity
For the six months ended May 31, 2019 and 2018
(in thousands of dollars)
Unaudited

    
 Share
Capital
Retained
Earnings
 Total 
 $$ $ 
    
Balance as at November 30, 2017 (Audited)9,152100,282 109,434 
    
Net income-381 381 
    
Total comprehensive income-381 381 
    
    
Balance as at May 31, 20189,152100,663 109,815 
    
    
Balance as at November 30, 2018 (Audited)9,152 103,711  112,863  
    
Net earnings-305 305 
    
Total comprehensive income-305 305 
    
Transactions within equity   
    
Dividend-(851)(851)
    
Modification of share-based payment-(351)(351)
    
Balance as at May 31, 20199,152 102,814 111,966 

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