DELSON, Quebec, April 09, 2020 (GLOBE NEWSWIRE) -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended February 29, 2020. The Company reported a net loss of $2.1 million or $0.24 per share compared to a net loss of $1.6 million or $0.18 per share a year ago.
Consolidated sales for the three months ended February 29, 2020 were $88.9 million compared to $88.2 million last year. Sales in Canada increased 2% compared to the same period a year ago, while sales in the United States decreased 1% (on a Canadian dollar basis) and export sales decreased 13% compared to the same period a year ago. On the operating side, selling, administrative and general expenses increased overall by $1.1 million and overall gross profit before selling and administrative costs increased by $0.5 million.
"During Fiscal year 2019-2020 Goodfellow will put strong emphasis on market share growth within and outside its customer base. In what is lining up to be a very difficult year for Canadians, Goodfellow will pursue a responsible and conservative strategy. Our concentration on value added product lines will be front and center to support construction, renovation and infrastructure projects. The company will put great emphasis on cost control and right sizing its inventories to adapt to what certainly will be an unprecedented year of challenges and obstacles in North America & Overseas."
Subsequent to February 29, 2020 the COVID-19 outbreak was declared a pandemic by the World Health Organization. The current challenging economic climate should have a direct or indirect impact on the Company’s operating results and financial position in the future. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on our business is not known at this time.
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 three months ended February 29, 2020 and February 28, 2019 | ||||
| (in thousands of dollars, except per share amounts) | ||||
| Unaudited | ||||
| For the three months ended | ||||
| February 29 2020 | February 28 2019 | |||
| $ | $ | |||
| Sales | 88,856 | 88,153 | ||
| Expenses | ||||
| Cost of goods sold | 71,480 | 71,241 | ||
| Selling, administrative and general expenses | 19,518 | 18,367 | ||
| (Gain) loss on disposal of property, plant and equipment | (15 | ) | 7 | |
| Net financial costs | 734 | 691 | ||
| 91,717 | 90,306 | |||
| Loss before income taxes | (2,861 | ) | (2,153 | ) |
| Income taxes | (801 | ) | (603 | ) |
| Total comprehensive loss | (2,060 | ) | (1,550 | ) |
| Net loss per share – Basic and Diluted | (0.24 | ) | (0.18 | ) |
| GOODFELLOW INC. | |||||
| Consolidated Statements of Financial Position | |||||
| (in thousands of dollars) | |||||
| Unaudited | |||||
| As at | As at | As at | |||
| February 29 2020 | November 30 2019 | February 28 2019 | |||
| $ | $ | $ | |||
| Assets | |||||
| Current Assets | |||||
| Cash | 2,089 | 2,364 | 2,159 | ||
| Trade and other receivables | 54,082 | 48,498 | 54,342 | ||
| Income taxes receivable | 1,096 | - | 647 | ||
| Inventories | 99,300 | 87,339 | 107,879 | ||
| Prepaid expenses | 4,250 | 2,563 | 2,133 | ||
| Total Current Assets | 160,817 | 140,764 | 167,160 | ||
| Non-Current Assets | |||||
| Property, plant and equipment | 32,517 | 32,838 | 33,958 | ||
| Intangible assets | 3,746 | 3,927 | 4,292 | ||
| Right-of-use assets | 16,304 | - | - | ||
| Defined benefit plan asset | 2,210 | 2,222 | 2,703 | ||
| Investment in a joint venture | 25 | 25 | 25 | ||
| Other assets | 753 | 805 | 849 | ||
| Total Non-Current Assets | 55,555 | 39,817 | 41,827 | ||
| Total Assets | 216,372 | 180,581 | 208,987 | ||
| Liabilities | |||||
| Current liabilities | |||||
| Bank indebtedness | 47 845 | 31,204 | 56,155 | ||
| Trade and other payables | 35 549 | 29,048 | 36,066 | ||
| Income taxes payable | - | 734 | - | ||
| Provision | 1 478 | 1,470 | 336 | ||
| Dividend payable | 856 | 856 | 851 | ||
| Current portion of lease liabilities | 4 254 | 15 | 14 | ||
| Total Current Liabilities | 89 982 | 63,327 | 93,422 | ||
| Non-Current Liabilities | |||||
| Provision | - | - | 1,321 | ||
| Lease liabilities | 15,547 | 28 | 39 | ||
| Deferred income taxes | 2,269 | 3,209 | 3,652 | ||
| Defined benefit plan obligation | 649 | 609 | 91 | ||
| Total Non-Current Liabilities | 18,465 | 3,846 | 5,103 | ||
| Total Liabilities | 108,447 | 67,173 | 98,525 | ||
| Shareholders’ Equity | |||||
| Share capital | 9,424 | 9,424 | 9,152 | ||
| Retained earnings | 98,501 | 103,984 | 101,310 | ||
| 107,925 | 113,408 | 110,462 | |||
| Total Liabilities and Shareholders’ Equity | 216,372 | 180,581 | 208,987 | ||
| GOODFELLOW INC. | ||
| Consolidated Statements of Cash Flows | ||
| For the three months ended February 29, 2020 and February 28, 2019 | ||
| (in thousands of dollars) | ||
| Unaudited | ||
| For the three months ended | ||
| February 29 | February 28 | |
| 2020 | 2019 | |
| $ | $ | |
| Operating Activities | ||
| Net loss | (2,060) | (1,550) |
| Adjustments for: | ||
| Depreciation and amortization of: | ||
| Property, plant and equipment | 651 | 696 |
| Right-of-use assets | 1,093 | - |
| Intangible assets | 181 | 171 |
| Accretion expense on provision | 18 | 3 |
| Decrease in provision | (10) | - |
| Income taxes | (801) | (603) |
| (Gain) loss on disposal of property, plant and equipment | (15) | 7 |
| Interest expense | 323 | 482 |
| Interest on lease liabilities | 179 | - |
| Funding in deficit of pension plan expense | 52 | 35 |
| Other assets | - | 67 |
| (389) | (692) | |
| Changes in non-cash working capital items | (12,616) | (11,781) |
| Interest paid | (348) | (486) |
| Income taxes paid | (1,029) | (453) |
| (13,993) | (12,720) | |
| Net Cash Flows from Operating Activities | (14,382) | (13,412) |
| Financing Activities | ||
| Net decrease in bank loans | (3,000) | (3,000) |
| Net increase in banker’s acceptances | 13,000 | 15,000 |
| Payment of lease liabilities | (1,333) | (4) |
| Dividend Paid | (856) | - |
| 7,811 | 11,996 | |
| Investing Activities | ||
| Acquisition of property, plant and equipment | (361) | (312) |
| Increase in intangible assets | - | (19) |
| Proceeds on disposal of property, plant and equipment | 16 | 8 |
| (345) | (323) | |
| Net cash outflow | (6,916) | (1,739) |
| Cash position, beginning of period | 1,160 | 743 |
| Cash position, end of period | (5,756) | (996) |
| Cash position is comprised of: | ||
| Cash | 2,089 | 2,159 |
| Bank overdraft | (7,845) | (3,155) |
| (5,756) | (996) | |
| GOODFELLOW INC. | ||||||||||
| Consolidated Statements of Change in Shareholders’ Equity | ||||||||||
| For the three months ended February 29, 2020 and February 28, 2019 | ||||||||||
| (in thousands of dollars) | ||||||||||
| Unaudited | ||||||||||
| Share | Retained | Total | ||||||||
| Capital | Earnings | |||||||||
| $ | $ | $ | ||||||||
| Balance as at November 30, 2018 | 9,152 | 103,711 | 112,863 | |||||||
| Net loss | - | (1,550) | (1,550) | |||||||
| Total comprehensive loss | - | (1,550) | (1,550) | |||||||
| Transactions with owners of the Company | ||||||||||
| Dividend | - | (851) | (851) | |||||||
| Balance as at February 28, 2019 | 9,152 | 101,310 | 110,462 | |||||||
| Balance as at November 30, 2019 | 9,424 | 103,984 | 113,408 | |||||||
| IFRS 16 adoption adjustment, net of taxes of $940 | - | (2,567) | (2,567) | |||||||
| Balance as at December 1, 2019 | 9,424 | 101,417 | 110,841 | |||||||
| Net loss | - | (2,060) | (2,060) | |||||||
| Total comprehensive loss | - | (2,060) | (2,060) | |||||||
| Transactions with owners of the Company | ||||||||||
| Dividend | - | (856) | (856) | |||||||
| Balance as at February 29, 2020 | 9,424 | 98,501 | 107,925 | |||||||
From:
Goodfellow inc.
Patrick Goodfellow
President and CEO
Tel: 450 635-6511
Fax: 450 635-3730
Internet: info@goodfellowinc.com