Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2017

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| Source: Goodfellow Inc.

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 endedFor the years ended
 November 30 2017November 30 2016 VarianceNovember 30 2017 November 30 2016 Variance
 $$ %$ $ %
Consolidated sales127,558 130,748  -2.4523,659  565,173  -7.3
Earnings (loss) before income taxes2,711 (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 diluted0.26(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)+127.62,840  (10,802)+126.3
EBITDA4,957 (12,604)+139.35,009  (8,804)+156.9
Average Bank indebtedness60,971 99,678 -38.880,010  94,728  -15.5
Inventory average95,956 124,241  -22.8105,361  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
 
 $ $ 
   
Sales523,659  565,173  
Expenses   
Cost of goods sold 442,396  483,885  
Selling, administrative and general expenses81,533  93,942  
Gain on disposal of property, plant and equipment(1,194)- 
Net financial costs4,199  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 atAs at
 November 30
2017
November 30
2016
 $$
Assets   
Current Assets  
Cash1,622 703
Trade and other receivables 58,317 64,255
Income taxes receivable1,589 6,598
Inventories 88,860 115,391
Prepaid expenses3,007 4,863
Total Current Assets153,395 191,810
   
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 venture285 3,403
Total Non-Current Assets43,838 49,758
Total Assets197,233 241,568
   
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 Liabilities82,795 125,933
   
Non-Current Liabilities  
Provision 446 475
Long-term debt 55 126
Deferred income taxes3,582 3,296
Defined benefit plan obligation 921 1,045
Total Non-Current Liabilities5,004 4,942
Total Liabilities87,799 130,875
   
Shareholders’ equity  
Share capital9,152 9,152
Retained earnings100,282 101,541
 109,434 110,693
Total Liabilities and Shareholders’ Equity197,233 241,568


   
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 :  
Depreciation4,085  3,850  
Accretion expense on provision50  52  
Decrease in provision(104)(202)
Income taxes (1,181)(4,189)
Gain on disposal of property, plant and equipment(1,194)-  
Interest expense2,821  2,392  
Funding in deficit (excess) of pension plan expense165  (197)
Share of the profits of a joint venture (202)(403)
Share-based compensation494 - 
 2,840  (10,802)
   
Changes in non-cash working capital items33,086  (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 debt68  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 equipment1,585  -  
Business acquisitions, net of cash acquired-  (4,795)
Dividends from joint venture320  - 
Dissolution of the joint venture3,000  - 
 3,130  (10,630)
   
Net cash inflow (outflow)2,223  (94)
Cash position, beginning of year(1,910)(1,816)
Cash position, end of year313  (1,910)
   
Cash position is comprised of :  
Cash1,622  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, 20159,152 118,948  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, 20169,152 101,541  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, 20179,152 100,282  109,434  

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