Goodfellow Reports Its Results for the Fiscal Year Ended November 30, 2018 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
