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Goodfellow Reports Its Results for the Fiscal Year Ended November 30, 2019

DELSON, Quebec, Feb. 13, 2020 (GLOBE NEWSWIRE) -- Goodfellow Inc. (GDL.TO) announced today its financial results for the fourth quarter ended November 30, 2019. The Company reported a net income of $0.3 million or $0.03 per share compared to a net income of $0.2 million or $0.02 per share a year ago. Consolidated sales for the three months ended November 30, 2019 were $107.1 million compared to $112.7 million last year. Sales in Canada were stable compared to the same period a year ago, while sales in the United States decreased 5% (on a Canadian dollar basis) and export sales decreased 50% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $0.4 million.

For the fiscal year ended November 30, 2019, the Company reported a net income of $3.1 million or $0.36 per share compared to a net income of $2.6 million or $0.30 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2019 were $449.6 million compared to $475.2 million last year. Sales in Canada decreased 3% compared to the same period a year ago, while sales in the United States decreased 14% (on a Canadian dollar basis) and export sales decreased 20% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $3.6 million.

Despite challenging conditions in North America and overseas, Goodfellow’s core business activities showed great signs of resilience in 2019 to sustain the trend of improved profitability. The Company has invested in measures to improve its productivity and strengthen its position as the leader in custom orders & value-added manufacturing of wood products.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.10 per share payable on March 13, 2020, to shareholders of record at the close of business on February 28, 2020.

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.

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


GOODFELLOW INC.    
Consolidated Statements of Comprehensive Income    
For the years ended November 30, 2019 and 2018
(in thousands of dollars, except per share amounts)    
Unaudited    
     
  Years ended
  November 30
2019
November 30
2018
  $ $
     
Sales 449,587 475,207
Expenses    
Cost of goods sold 364,545 387,311
Selling, administrative and general expenses 77,639 81,161
Gain on disposal of property, plant and equipment (3) (18)
Net financial costs 3,137 3,476
  445,318 471,930
     
Earnings before income taxes 4,269 3,277
     
Income taxes 1,215 706
     
Net earnings 3,054 2,571
   
Items that will not subsequently be reclassified to net earnings    
     
Remeasurement of defined benefit plan obligation,    
net of taxes of $265 ($318 in 2018) (723) 858
     
Total comprehensive income 2,331 3,429
     
     
Net earnings per share – Basic  0.36  0.30
Net earnings per share - Diluted 0.35 0.30



GOODFELLOW INC.
   
Consolidated Statements of Financial Position  
(in thousands of dollars)    
Unaudited
   
  As at As at
  November 30
2019
November 30
2018
  $ $
Assets    
Current Assets    
Cash 2,364 2,578
Trade and other receivables 48,498 50,008
Inventories 87,339 92,544
Prepaid expenses 2,563 3,143
Total Current Assets 140,764 148,273
     
Non-Current Assets    
Property, plant and equipment 32,838 34,356
Intangible assets 3,927 4,444
Defined benefit plan asset 2,222 2,704
Investment in a joint venture 25 25
Other assets 805 916
Total Non-Current Assets 39,817 42,445
Total Assets 180,581 190,718
     
Liabilities    
Current liabilities    
Bank indebtedness 31,204 42,835
Trade and other payables 29,048 29,192
Income taxes payable 734 409
Provision 1,470 336
Dividend payable 856 -
Current portion of obligations under finance leases 15 14
Total Current Liabilities 63,327 72,786
     
Non-Current Liabilities    
Provision - 1,317
Obligations under finance leases 28 43
Deferred income taxes 3,209 3,652
Defined benefit plan obligation 609 57
Total Non-Current Liabilities 3,846 5,069
Total Liabilities 67,173 77,855
     
Shareholders’ Equity    
Share capital 9,424 9,152
Retained earnings 103,984 103,711
  113,408 112,863
Total Liabilities and Shareholders’ Equity 180,581 190,718


GOODFELLOW INC.    
Consolidated Statements of Cash Flows    
For the years ended November 30, 2019 and 2018
(in thousands of dollars)
Unaudited
   
  Years ended
  November 30
2019
November 30
2018
  $ $
Operating Activities    
Net earnings 3,054 2,571
Adjustments for:    
Depreciation 3,479 3,690
Accretion expense on provision 14 50
(Decrease) increase in provision (197) 219
Income taxes 1,215 706
Gain on disposal of property, plant and equipment (3) (18)
Interest expense 2,134 2,502
Funding in deficit of pension plan expense 47 20
Other assets 111 (35)
Share-based compensation (79) -
  9,775 9,705
     
Changes in non-cash working capital items 6,856 3,391
Interest paid (2,154) (2,535)
Income taxes (paid) recovered (1,069) 1,045
  3,633 1,901
Net Cash Flows from Operating Activities 13,408 11,606
     
Financing Activities    
Proceeds from borrowings under bank loans 115,000 88,000
Repayment of borrowings under bank loans (113,000) (92,000)
Proceeds from borrowings under banker’s acceptances 40,000 31,000
Repayment of borrowings under banker’s acceptances (53,000) (37,000)
Repayment of finance lease liabilities (14) (137)
Dividend Paid (851) -
  (11,865) (10,137)
     
Investing Activities    
Acquisition of property, plant and equipment (968) (1,159)
Increase in intangible assets (176) (212)
Proceeds on disposal of property, plant and equipment 18 72
Dividends from the joint venture - 260
  (1,126) (1,039)
     
Net cash inflow 417 430
Cash position, beginning of year 743 313
Cash position, end of year 1,160 743
     
Cash position is comprised of:    
Cash 2,364 2,578
Bank overdraft (1,204) (1,835)
  1,160 743


GOODFELLOW INC.      
Consolidated Statements of Change in Shareholders’ Equity    
For the years ended November 30, 2019 and 2018
(in thousands of dollars)      
Unaudited       
  Share
Capital
Retained
Earnings
Total
   $ $ $
       
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
       
Net earnings - 3,054 3,054
Other comprehensive income - (723) (723)
       
Total comprehensive income - 2,331 2,331
       
Transactions with owners of the Company      
       
Dividend - (1,707) (1,707)
       
Share-based payment 272 (351) (79)
       
Balance as at November 30, 2019 9,424 103,984 113,408