DELSON, Quebec, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the fiscal year ended 30 November 2018. The Company reported the following:

HIGHLIGHTS

  Three months ended For the years ended
  November 30 2018   November 30 2017 Variance November 30 2018 November 30 2017   Variance
  $   $ % $ $   %
Consolidated sales 112,742   127,558 -11.6 475,207 523,659   -9,3
(Loss) earnings before income taxes (22 ) 2,711 -100,8 3,277 (3,275 ) +200,1
Net earnings (loss) 197   2,216 -91,1 2,571 (2,094 ) +222,8
Net earnings (loss) per share, Basic and Diluted 0.02   0.26 -92.3 0.30 (0.25 ) +220,0
Cash Flow from Operations (excluding non-cash working capital items, income tax paid and interest paid) 1,609   3,425 -53,0 9,705 2,630   +269,0
EBITDA 1,821   4,957 -63,3 10,443 5,009   +108,5
Average Bank indebtedness 56,112   60,971 -8.0 69,569 80,010   -13.0
Inventory average 99,876   95,956 +4.1 104,832 105,361   -0.5

Overall sales in Q4 fell below expectations resulting nonetheless in $0.2 million of net earnings in Q4 2018 versus $2.2 million in Q4 2017. The Company was able to continue its gradual return to profitability in 2018 posting $2.6 million of net earnings versus a $2.1 million net loss in 2017.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.10 per share payable on March 15, 2019, to all shareholders of record as of February 28, 2019.

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 years ended November 30, 2018 and 2017
(in thousands of dollars, except per share amounts) Unaudited    
     
     
     
  Years ended
  November 30 2018   November 30 2017  
  $   $  
     
Sales 475,207   523,659  
Expenses    
Cost of goods sold 387,311   442,243  
Selling, administrative and general expenses 81,161   81,686  
Gain on disposal of property, plant and equipment (18 ) (1,194 )
Net financial costs 3,476   4,199  
  471,930   526,934  
     
Earnings (loss) before income taxes 3,277   (3,275 )
     
Income taxes 706   (1,181 )
     
Net earnings (loss) 2,571   (2,094 )
   
Items that will not subsequently be reclassified to net earnings (loss)    
     
Remeasurement of defined benefit plan obligation,    
net of taxes of $318 ($127 in 2017) 858   341  
     
Total comprehensive income (loss) 3,429   (1,753 )
     
     
Net earnings (loss) per share - Basic and diluted 0.30   (0.25 )
     
GOODFELLOW INC.    
Consolidated Statements of Financial Position  
(in thousands of dollars) Unaudited    
     
  As at As at
  November 30 2018 November 30 2017
  $ $
Assets    
Current Assets    
Cash 2,578 1,622
Trade and other receivables 50,008 57,607
Income taxes receivable - 1,589
Inventories 92,544 88,860
Prepaid expenses 3,143 2,835
Total Current Assets 148,273 152,513
     
Non-Current Assets    
Property, plant and equipment 34,356 36,198
Intangible assets 4,444 4,942
Defined benefit plan asset 2,704 2,413
Investment in a joint venture 25 285
Other assets 916 882
Total Non-Current Assets 42,445 44,720
Total Assets 190,718 197,233
     
Liabilities    
Current Liabilities    
Bank indebtedness 42,835 52,309
Trade and other payables 29,192 29,409
Income taxes payable 409 -
Provision 336 938
Current portion of long-term debt 14 139
Total Current Liabilities 72,786 82,795
     
Non-Current Liabilities    
Provision 1,317 446
Long-term debt 43 55
Deferred income taxes 3,652 3,582
Defined benefit plan obligation 57 921
Total Non-Current Liabilities 5,069 5,004
Total Liabilities 77,855 87,799
     
Shareholders’ Equity    
Share capital 9,152 9,152
Retained earnings 103,711 100,282
  112,863 109,434
Total Liabilities and Shareholders’ Equity 190,718 197,233
GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the years ended November 30, 2018 and 2017
(in thousands of dollars) Unaudited    
     
  Years ended
  November 30 2018   November 30 2017  
  $   $  
Operating Activities    
Net earnings (loss) 2,571   (2,094 )
Adjustments for:    
Depreciation 3,690   4,085  
Accretion expense on provision 50   50  
Increase (decrease) in provision 219   (104 )
Income taxes 706   (1,181 )
Gain on disposal of property, plant and equipment (18 ) (1,194 )
Interest expense 2,502   2,821  
Funding in deficit of pension plan expense 20   165  
Share of the profits of a joint venture -   (202 )
Other assets (35 ) (210 )
Share-based compensation -   494  
  9,705   2,630  
     
Changes in non-cash working capital items 3,391   33,296  
Interest paid (2,535 ) (2,614 )
Income taxes recovered 1,045   6,349  
  1,901   37,031  
Net Cash Flows from Operating Activities 11,606   39,661  
     
Financing Activities    
Net decrease in bank loans (4,000 ) (4,000 )
Net decrease in banker’s acceptances (6,000 ) (36,500 )
Increase in long-term debt -   68  
Reimbursement of long-term debt (137 ) (136 )
  (10,137 ) (40,568 )
     
Investing Activities    
Acquisition of property, plant and equipment (1,159 ) (1,329 )
Increase in intangible assets (212 ) (446 )
Proceeds on disposal of property, plant and equipment 72   1,585  
Dividends from joint venture 260   320  
Dissolution of the joint venture -   3,000  
  (1,039 ) 3,130  
     
Net cash inflow 430   2,223  
Cash position, beginning of year 313   (1,910 )
Cash position, end of year 743   313  
     
Cash position is comprised of:    
Cash 2,578   1,622  
Bank overdraft (1,835 ) (1,309 )
  743   313  
GOODFELLOW INC.      
Consolidated Statements of Change in Shareholders’ Equity    
For the years ended November 30, 2018 and 2017
(in thousands of dollars) Unaudited      
       
  Share Capital Retained Earnings   Total  
    $ $   $  
       
Balance as at November 30, 2016 9,152 101,541   110,693  
       
Net loss - (2,094 ) (2,094 )
Other comprehensive income - 341   341  
       
Total comprehensive loss - (1,753 ) (1,753 )
       
Transactions within equity      
       
Share-based compensation - 494   494  
       
Balance as at November 30, 2017 9,152 100,282   109,434  
       
Net earnings - 2,571   2,571  
Other comprehensive income - 858   858  
       
Total comprehensive income - 3,429   3,429  
       
       
Balance as at November 30, 2018 9,152 103,711   112,863  

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