CST: 26/06/2016 06:57:27   

Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2015 and Declares an Eligible Dividend

134 Days ago

DELSON, QUEBEC--(Marketwired - Feb 12, 2016) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the twelve months ended November 30, 2015. The Company reported a net income of $8.6 million or $1.01 per share compared to $7.0 million or $0.82 per share for the twelve months comparative period a year ago. For the three months ended November 30, 2015, the Company reported net income of $2.0 million or $0.23 per share compared to $1.5 million or $0.18 per share a year ago. Consolidated sales for the twelve months ended November 30, 2015 were $539.0 million compared to $500.2 million for the twelve month comparable period last year. Consolidated sales for the three months ended November 30, 2015 were $135.2 million compared to $124.5 million last year. Sales in Canada during the twelve months of fiscal 2015 increased 6.4% compared to the same period a year ago mainly due to strong market presence, increased product offerings in all regions in Canada and the increased demand from our retail customers. Sales in the United States for the twelve months ended November, 2015 increased 20% on a converted basis when compared to the same period last year due to industrial glulam projects and a strong demand for hardwood lumber. On a non-converted basis, US denominated sales increased 4.2% compared to last year. Finally, Export sales increased 6% during the twelve months ended November 30, 2015 compared to the same period a year ago mainly due to increasing demand for hardwood and cedar lumber products in Asia and Europe. On the operating side, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased variable labour expenses, ramping up of value-added product inventory and increased non-recurring corporate expenses.

"Transition and change; these two words best summarize a very busy year. For sure we are happy with several aspects of our results. We have grown our sales to a record $539 million, nearly 8% more than last year. We have maintained gross margin level, kept expenses in check and improved our profitability significantly at $8.6 million; 24% more than the previous twelve months period." said Denis Fraser, President and Chief Executive Officer. "The most significant initiative though was by far the development and implementation of our new ERP system; the deployment of which is ongoing. This is an investment of over $4.0 million not counting the massive commitment of human resources required for the successful development of this very important tool. At maturity, this new system will deliver substantial productivity gains and better customer service. We are establishing a solid foundation to anchor our growth plans."

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable on March 11, 2016, to all shareholders of record as of February 26, 2016.

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber 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 twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars, except per share amounts)
November 30,
2015
November 30,
2014
(12 months) (15 months)
$ $
Sales 538,975 610,587
Expenses
Cost of goods sold 437,776 495,886
Selling, administrative and general expenses 86,743 100,749
Net financial costs 2,582 2,824
527,101 599,459
Earnings before income taxes 11,874 11,128
Income taxes 3,252 3,003
Net earnings 8,622 8,125
Items that will not subsequently be reclassified to net earnings
Remeasurement of defined benefit plan obligation (asset),net of taxes of $1,099 (2014 - recovery of $101)
2,969

(248

)
Total comprehensive income 11,591 7,877
Net earnings per share - Basic and diluted 1.01 0.96
GOODFELLOW INC.
Consolidated Statements of Financial Position (audited)
(in thousands of dollars)
As at As at
November 30, November 30,
2015 2014
$ $
Assets
Current Assets
Cash 965 860
Trade and other receivables 65,670 60,591
Inventories 97,665 92,257
Prepaid expenses 4,156 3,271
Total Current Assets 168,456 156,979
Non-Current Assets
Property, plant and equipment 36,146 36,779
Intangible assets 2,667 241
Defined benefit plan asset 4,812 1,848
Total Non-Current Assets 43,625 38,868
Total Assets 212,081 195,847
Liabilities
Current liabilities
Bank indebtedness 46,781 43,099
Trade and other payables 29,762 25,779
Income taxes payable 1,595 997
Provision 1,112 979
Current portion of long-term debt 113 229
Total Current Liabilities 79,363 71,083
Non-Current Liabilities
Provision 477 473
Long-term-debt - 692
Deferred income taxes 4,141 2,535
Defined benefit plan obligation - 1,578
Total Non-Current Liabilities 4,618 5,278
Total Liabilities 83,981 76,361
Shareholders' equity
Share capital 9,152 9,152
Retained earnings 118,948 110,334
128,100 119,486
Total Liabilities and Shareholders' Equity 212,081 195,847
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars)
November 30,
2015
November 30,
2014
(12 months) (15 months)
$ $
Operating Activities
Net Earnings 8,622 8,125
Adjustments for :
Depreciation 3,026 3,611
Accretion expense on provision 53 57
Increase (decrease) in provision 84 (76 )
Income taxes 3,252 3,003
Gain on disposal of property, plant and equipment (26 ) (14 )
Interest expense 1,555 1,766
Funding in excess of pension plan expense (474 ) (1,244 )
16,092 15,228
Changes in non-cash working capital items (7,859 ) (9,260 )
Interest paid (1,659 ) (1,785 )
Income taxes paid (2,146 ) (2,506 )
(11,664 ) (13,551 )
Net Cash Flows from Operating Activities 4,428 1,677
Financing Activities
Net increase (decrease) in bank loans 5,500 (7,500 )
Increase in banker's acceptances - 17,000
Increase in long-term debt 51 909
Reimbursement of long-term debt (858 ) (138 )
Dividends paid (2,977 ) (5,529 )
1,716 4,742
Investing Activities
Acquisition of property, plant and equipment (2,101 ) (5,223 )
Increase in intangible assets (2,216 ) (17 )
Proceeds on disposal of property, plant and equipment 96 54
(4,221 ) (5,186 )
Net cash inflow 1,923 1,233
Cash position, beginning of year (3,739 ) (4,972 )
Cash position, end of year (1,816 ) (3,739 )
Cash position is comprised of :
Cash 965 860
Bank overdraft (2,781 ) (4,599 )
(1,816 ) (3,739 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars)
Share
Capital
Retained
Earnings
Total
$ $ $
Balance as at August 31, 2013 9,152 107,986 117,138
Net earnings - 8,125 8,125
Other comprehensive loss (net of taxes $101) - (248 ) (248 )
Total Comprehensive income - 7,877 7,877
Transactions with owners of the Company
Dividends - (5,529 ) (5,529 )
Balance as at November 30, 2014 9,152 110,334 119,486
Net earnings - 8,622 8,622
Other comprehensive income (net of taxes $1,099) - 2,969 2,969
Total Comprehensive income - 11,591 11,591
Transactions with owners of the Company
Dividends - (2,977 ) (2,977 )
Balance as at November 30, 2015 9,152 118,948 128,100

Goodfellow Inc.
Denis Fraser
President and CEO
450 635-6511
450 635-3730
info@goodfellowinc.com