CORRECTION FROM SOURCE/Goodfellow Reports Its Results for the Three Months Ended February 29, 2016
/EINPresswire.com/ -- DELSON, QUEBEC -- (Marketwired) -- 04/14/16 -- This document corrects and replaces the press release that was sent April 08, 2016 at 12:19 PM ET
-- Currency translation adjustment of $146 thousand was reclassified to
cost of goods sold impacting net income by $0.01 per share.
-- Investment of $3.0 million was reclassified to changes in non-cash
working capital items as this was an inventory transaction.
-- Business acquisition net of cash acquired was corrected by an amount of
$90 thousand and reclassified to changes in non-cash working capital.
Goodfellow Inc. (TSX: GDL) announced today its financial results for the three months ended February 29, 2016. The Company reported a net loss of $(0.9) million or $(0.11) per share compared to $(0.4) million or $(0.04) per share a year ago. Consolidated sales for the three months ended February 29, 2016 were $108.7 million compared to $98.1 million last year. Sales in Canada during the first quarter of fiscal 2016 increased 19% compared to the same period a year ago mainly due to increased volume of Pressure Treated Wood sales, the acquisition of Quality Hardwoods Ltd. and the introduction of new product lines. Although sales in the export market and the USA were short of expectation, we are optimistic with our ability to recapture lost volume in the coming months. On the operating side, Selling, Direct and Administrative costs increased 6.6% due to non-recurring added resources and expenses relating to our new ERP implementation and increased variables costs due to the added volumes and the acquisition of Quality Hardwoods Ltd. on December 30, 2015. As a result, direct, selling, and administrative expenses increased to $21.3 million ($20.0 million last year).
"Investing in our future - best summarizes the results of our first Quarter. We are pleased with our sales growth; our initiatives are delivering the expected results" said Denis Fraser, President and Chief Executive Officer. "Nevertheless, the resources invested in the deployment of the new ERP System, the start-up of the Joint Venture and the acquisition of Quality Hardwoods Ltd. impacted on results negatively. We remain confident to deliver the full value of these initiatives."
Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the three months ended February 29, 2016 and February 28, 2015
(in thousands of dollars, except per share amounts)
Unaudited
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For the three months ended
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February 29 February 28
2016 2015
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$ $
Sales 108,659 98,097
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Expenses
Cost of goods sold 87,979 78,077
Selling, administrative and general
expenses 21,303 19,989
Net financial costs 635 534
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109,917 98,600
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Earnings before income taxes (1,258) (503)
Income taxes (352) (146)
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Net earnings (906) (357)
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Net earnings per share - Basic and diluted (0.11) (0.04)
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GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
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As at As at As at
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February 29 November 30 February 28
2016 2015 2015
(Unaudited) (Audited) (Unaudited)
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$ $ $
Assets
Current Assets
Cash 1,983 965 782
Trade and other receivables 86,494 65,670 65,829
Income taxes receivable - - 364
Inventories 131,676 97,665 119,714
Prepaid expenses 8,077 4,156 5,582
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Total Current Assets 228,230 168,456 192,271
Non-Current Assets
Property, plant and equipment 39,388 36,146 36,744
Intangible assets 3,630 2,667 -
Defined benefit plan asset 4,937 4,812 1,840
Investment in a joint venture 3,000 - -
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Total Non-Current Assets 50,955 43,625 38,584
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Total Assets 279,185 212,081 230,855
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Liabilities
Current liabilities
Bank indebtedness 90,163 46,781 74,331
Trade and other payables 54,084 29,762 30,861
Income taxes payable 997 1,595 -
Provision 1,112 1,112 952
Current portion of long-term debt 208 113 247
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Total Current Liabilities 146,564 79,363 106,391
Non-Current Liabilities
Provision 490 477 486
Long-term debt 219 - 688
Deferred income taxes 4,718 4,141 2,535
Defined benefit plan obligation - - 1,626
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Total Non-Current Liabilities 5,427 4,618 5,335
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Total Liabilities 151,991 83,981 111,726
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Shareholders' equity
Share capital 9,152 9,152 9,152
Retained earnings 118,042 118,948 109,977
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127,194 128,100 119,129
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Total Liabilities and Shareholders'
Equity 279,185 212,081 230,855
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GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 29, 2016 and February 28, 2015
(in thousands of dollars)
(Unaudited)
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For the three months ended
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February 29 February 28
2016 2015
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$ $
Operating Activities
Net Earnings (906) (357)
Adjustments for :
Depreciation 798 731
Accretion expense on provision 13 (14)
Income taxes (352) (146)
Loss on disposal of property, plant and
equipment - 37
Interest expense 434 344
Funding in (excess) deficit of pension
plan expense (125) 57
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(138) 652
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Changes in non-cash working capital items (35,514) (29,905)
Interest paid (656) (364)
Income taxes paid (553) (1,215)
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(36,723) (31,484)
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Net Cash Flows from Operating Activities (36,861) (30,832)
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Financing Activities
Net increase in bank loans 13,000 4,500
Increase in banker's acceptances 28,000 20,000
Increase in long-term debt 490 18
Reimbursement of long-term debt (736) (4)
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40,754 24,514
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Investing Activities
Acquisition of property, plant and equipment (366) (506)
Increase in intangible assets (683) -
Proceeds on disposal of property, plant and
equipment - 14
Business acquisitions, net of cash acquired (4,208) -
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(5,257) (492)
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Net cash outflow (1,364) (6,810)
Cash position, beginning of period (1,816) (3,739)
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Cash position, end of period (3,180) (10,549)
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Cash position is comprised of :
Cash 1,983 782
Bank overdraft (5,163) (11,331)
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(3,180) (10,549)
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GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the three months ended February 29, 2016 and February 28, 2015
(in thousands of dollars)
(Unaudited)
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Share Retained
Capital Earnings Total
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$ $ $
Balance as at November 30, 2014 9,152 110,334 119,486
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Net earnings - (357) (357)
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Total comprehensive income 9,152 109,977 119,129
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Balance as at February 28, 2015 9,152 109,977 119,129
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Balance as at November 30, 2015
(Audited) 9,152 118,948 128,100
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Net earnings - (906) (906)
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Total comprehensive income 9,152 118,042 127,194
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Balance as at February 29, 2016 9,152 118,042 127,194
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Contacts:
Goodfellow Inc.
Denis Fraser
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com
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