DELSON, Quebec, Feb. 15, 2018 (GLOBE NEWSWIRE) — Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended 30 November 2017. The Company reported the following:
| HIGHLIGHTS | |||||||||
| Three months ended | For the years ended | ||||||||
| November 30 2017 | November 30 2016 | Variance | November 30 2017 | November 30 2016 | Variance | ||||
| $ | $ | % | $ | $ | % | ||||
| Consolidated sales | 127,558 | 130,748 | -2.4 | 523,659 | 565,173 | -7.3 | |||
| Earnings (loss) before income taxes | 2,711 | (14,830 | ) | +118.3 | (3,275 | ) | (16,294 | ) | +79.9 |
| Net earnings (loss) | 2,216 | (11,181 | ) | +119.8 | (2,094 | ) | (12,105 | ) | +82.7 |
| Net earnings (loss) per share Basic and diluted | 0.26 | (1.31 | ) | +119.8 | (0.25 | ) | (1.42 | ) | +82.4 |
| Cash Flow from Operations (excluding non-cash working capital item, income tax paid and interest paid) |
3,635 | (13,174 | ) | +127.6 | 2,840 | (10,802 | ) | +126.3 | |
| EBITDA | 4,957 | (12,604 | ) | +139.3 | 5,009 | (8,804 | ) | +156.9 | |
| Average Bank indebtedness | 60,971 | 99,678 | -38.8 | 80,010 | 94,728 | -15.5 | |||
| Inventory average | 95,956 | 124,241 | -22.8 | 105,361 | 130,940 | -19.5 | |||
A SPECIAL STATEMENT
December 1st, 2016 to November 30th, 2017 must be evaluated and perceived as a year of transition and correction. All attempts were made to address very compromising issues related to the very dark chapter in the same previous period. Management had the objective of restoring stability and profitability as aggressively as possible. Q3 and Q4 2017 signaled a return to profitable operations for Goodfellow Inc.
The Company has successfully renewed its traditional cash flow banking arrangement with the TD/BMO syndicate. The Company’s ability to quickly right size inventory, reduce the operating loan and return to profitability promptly made this renewal with our loyal lenders possible. The Company is very grateful for its strong banking relationship. The Company would also like to recognize and thank its key suppliers that have supported Goodfellow Inc. and look forward to further strengthening those relationships.
Goodfellow Inc. is a distributor of lumber products, building materials, and hardwood flooring products. 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, 2017 and 2016 | ||||
| (in thousands of dollars, except per share amounts) | ||||
| Years ended | ||||
| November 30 2017 |
November 30 2016 |
|||
| $ | $ | |||
| Sales | 523,659 | 565,173 | ||
| Expenses | ||||
| Cost of goods sold | 442,396 | 483,885 | ||
| Selling, administrative and general expenses | 81,533 | 93,942 | ||
| Gain on disposal of property, plant and equipment | (1,194 | ) | – | |
| Net financial costs | 4,199 | 3,640 | ||
| 526,934 | 581,467 | |||
| Loss before income taxes | (3,275 | ) | (16,294 | ) |
| Income taxes | (1,181 | ) | (4,189 | ) |
| Net loss | (2,094 | ) | (12,105 | ) |
| Items that will not subsequently be reclassified to net loss | ||||
| Remeasurement of defined benefit plan obligation (asset), net of taxes of $127 (2016 – recovery of taxes of $1,070) |
341 | (2,750 | ) | |
| Total comprehensive loss | (1,753 | ) | (14,855 | ) |
| Net loss per share – Basic and diluted | (0.25 | ) | (1.42 | ) |
| GOODFELLOW INC. | ||
| Consolidated Statements of Financial Position | ||
| (in thousands of dollars) | ||
| As at | As at | |
| November 30 2017 |
November 30 2016 |
|
| $ | $ | |
| Assets | ||
| Current Assets | ||
| Cash | 1,622 | 703 |
| Trade and other receivables | 58,317 | 64,255 |
| Income taxes receivable | 1,589 | 6,598 |
| Inventories | 88,860 | 115,391 |
| Prepaid expenses | 3,007 | 4,863 |
| Total Current Assets | 153,395 | 191,810 |
| Non-Current Assets | ||
| Property, plant and equipment | 36,198 | 38,693 |
| Intangible assets | 4,942 | 5,428 |
| Defined benefit plan asset | 2,413 | 2,234 |
| Investment in a joint venture | 285 | 3,403 |
| Total Non-Current Assets | 43,838 | 49,758 |
| Total Assets | 197,233 | 241,568 |
| Liabilities | ||
| Current liabilities | ||
| Bank indebtedness | 52,309 | 94,113 |
| Trade and other payables | 29,409 | 30,721 |
| Provision | 938 | 963 |
| Current portion of long-term debt | 139 | 136 |
| Total Current Liabilities | 82,795 | 125,933 |
| Non-Current Liabilities | ||
| Provision | 446 | 475 |
| Long-term debt | 55 | 126 |
| Deferred income taxes | 3,582 | 3,296 |
| Defined benefit plan obligation | 921 | 1,045 |
| Total Non-Current Liabilities | 5,004 | 4,942 |
| Total Liabilities | 87,799 | 130,875 |
| Shareholders’ equity | ||
| Share capital | 9,152 | 9,152 |
| Retained earnings | 100,282 | 101,541 |
| 109,434 | 110,693 | |
| Total Liabilities and Shareholders’ Equity | 197,233 | 241,568 |
| GOODFELLOW INC. | ||||
| Consolidated Statements of Cash Flows | ||||
| For the years ended November 30, 2017 and 2016 | ||||
| (in thousands of dollars) | ||||
| Years ended | ||||
| November 30 2017 |
November 30 2016 |
|||
| $ | $ | |||
| Operating Activities | ||||
| Net Loss | (2,094 | ) | (12,105 | ) |
| Adjustments for : | ||||
| Depreciation | 4,085 | 3,850 | ||
| Accretion expense on provision | 50 | 52 | ||
| Decrease in provision | (104 | ) | (202 | ) |
| Income taxes | (1,181 | ) | (4,189 | ) |
| Gain on disposal of property, plant and equipment | (1,194 | ) | – | |
| Interest expense | 2,821 | 2,392 | ||
| Funding in deficit (excess) of pension plan expense | 165 | (197 | ) | |
| Share of the profits of a joint venture | (202 | ) | (403 | ) |
| Share-based compensation | 494 | – | ||
| 2,840 | (10,802 | ) | ||
| Changes in non-cash working capital items | 33,086 | (16,054 | ) | |
| Interest paid | (2,614 | ) | (2,482 | ) |
| Income taxes recovered (paid) | 6,349 | (4,663 | ) | |
| 36,821 | (23,199 | ) | ||
| Net Cash Flows from Operating Activities | 39,661 | (34,001 | ) | |
| Financing Activities | ||||
| Net (decrease) increase in bank loans | (4,000 | ) | 2,000 | |
| Net (decrease) increase in banker’s acceptances | (36,500 | ) | 45,500 | |
| Increase in long-term debt | 68 | 369 | ||
| Reimbursement of long-term debt | (136 | ) | (780 | ) |
| Dividends paid | – | (2,552 | ) | |
| (40,568 | ) | 44,537 | ||
| Investing Activities | ||||
| Acquisition of property, plant and equipment | (1,329 | ) | (2,970 | ) |
| Increase in intangible assets | (446 | ) | (2,865 | ) |
| Proceeds on disposal of property, plant and equipment | 1,585 | – | ||
| Business acquisitions, net of cash acquired | – | (4,795 | ) | |
| Dividends from joint venture | 320 | – | ||
| Dissolution of the joint venture | 3,000 | – | ||
| 3,130 | (10,630 | ) | ||
| Net cash inflow (outflow) | 2,223 | (94 | ) | |
| Cash position, beginning of year | (1,910 | ) | (1,816 | ) |
| Cash position, end of year | 313 | (1,910 | ) | |
| Cash position is comprised of : | ||||
| Cash | 1,622 | 703 | ||
| Bank overdraft | (1,309 | ) | (2,613 | ) |
| 313 | (1,910 | ) | ||
| GOODFELLOW INC. | |||||
| Consolidated Statements of Change in Shareholders’ Equity | |||||
| For the years ended November 30, 2017 and 2016 | |||||
| (in thousands of dollars) | |||||
| Share Capital |
Retained Earnings |
Total | |||
| $ | $ | $ | |||
| Balance as at November 30, 2015 | 9,152 | 118,948 | 128,100 | ||
| Net loss | – | (12,105 | ) | (12,105 | ) |
| Other comprehensive loss | – | (2,750 | ) | (2,750 | ) |
| Total comprehensive loss | – | (14,855 | ) | (14,855 | ) |
| Transactions within equity | |||||
| Dividends | – | (2,552 | ) | (2,552 | ) |
| 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 | ||
From:
Goodfellow Inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730
Internet: [email protected]