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Goodfellow Reports Its Results for the First Quarter Ended November 30, 2009

^{Published on 2009-12-17 07:20:12 - Market Wire}
 

DELSON, QUEBEC--(Marketwire - Dec. 17, 2009) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2009. Net income from operations stood at $2.0 million or $0.24 per share compared to $1.0 million or $0.12 per share a year ago. Consolidated sales for the first quarter of fiscal 2010 were $109.2 million compared to $110.9 million for the same period a year ago. Finally, cash flow from operations (excluding non-cash working capital) for the first quarter of fiscal 2010 increased to $2.5 million from $1.2 million for the same period last year. Sales in Canada grew 3.7% due to strong industrial sales and some recovery in Ontario and signs of optimism in the economy. Sales in US and Export continued to decrease due to our reduced presence in Western US. General expenses, selling and administrative costs for the first quarter ended November 30, 2009 decreased from $18.4 million last year to $17.7 million. The decrease reflects our continued focus on controlling our operating costs.

"Business conditions were generally surprisingly good helped along in Canada by the Renovation Tax Credit" said Richard Goodfellow, President and Chief Executive Officer. "Our order file remains strong and prospects for the spring continue to look positive."

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 earnings
First Quarter ended November 30, 2009 and 2008
(in thousands of dollars, except per share amounts)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
 2009 2008
------------------------------------------------------------------------
 $ $

Sales 109,246 110,920
------------------------------------------------------------------------

Expenses
 Cost of goods sold, selling
 administrative, and general
 expenses 105,550 108,529
 Amortization 356 317
 Financial 231 363
 Foreign currency loss 147 213
------------------------------------------------------------------------
 106,284 109,422
------------------------------------------------------------------------


Earnings before income taxes 2,962 1,498

Income taxes 934 484
------------------------------------------------------------------------
Net earnings 2,028 1,014
------------------------------------------------------------------------

Earnings per share
 Basic and diluted 0.24 0.12
------------------------------------------------------------------------
------------------------------------------------------------------------



GOODFELLOW INC.
Consolidated statements of retained earnings
First Quarter ended November 30, 2009 and 2008
(in thousands of dollars)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
 2009 2008
------------------------------------------------------------------------
 $ $

Balance, beginning of year 101,932 94,559

Net earnings 2,028 1,014
------------------------------------------------------------------------
 103,960 95,573

Dividends (2,572) (2,144)
Redemption of shares - (12)
------------------------------------------------------------------------
Balance, end of year 101,388 93,417
------------------------------------------------------------------------
------------------------------------------------------------------------



Consolidated statements of comprehensive income
First Quarter ended November 30, 2009 and 2008
(in thousands of dollars)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
 2009 2008
------------------------------------------------------------------------
 $ $

Net Income 2,028 1,014

Other comprehensive income

 Foreign currency translation adjustment - -
------------------------------------------------------------------------
Total other comprehensive income - -
------------------------------------------------------------------------
------------------------------------------------------------------------
Comprehensive income 2,028 1,014
------------------------------------------------------------------------
------------------------------------------------------------------------



GOODFELLOW INC.
Consolidated balance sheets
as at November 30, 2009 and 2008
(in thousands of dollars)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
 2009 2008
------------------------------------------------------------------------
 $ $

Assets
Current assets
 Cash 924 1,128
 Accounts receivable 56,548 53,406
 Income taxes recoverable - 1,907
 Inventories 65,635 68,172
 Prepaid expenses 2,51 5,856
------------------------------------------------------------------------
 125,958 130,469

Capital assets 30,742 25,863
Deferred pension asset 4,812 4,052
------------------------------------------------------------------------
 161,512 160,384
------------------------------------------------------------------------
------------------------------------------------------------------------

Liabilities
Current liabilities
 Bank indebtedness 16,741 29,051
 Accounts payable and accrued liabilities 31,295 27,495
 Income taxes payable 192 -
------------------------------------------------------------------------
 48,228 56,546

Future income taxes 2,674 1,499
------------------------------------------------------------------------
 50,902 58,044
------------------------------------------------------------------------

Shareholders' equity
 Capital stock 9,222 9,227
 Retained earnings 101,388 93,417
 Accumulated other comprehensive income - (303)
------------------------------------------------------------------------
 110,610 102,340
------------------------------------------------------------------------
 161,512 160,384
------------------------------------------------------------------------
------------------------------------------------------------------------



GOODFELLOW INC.
Consolidated statements of cash flows
First Quarter ended November 30, 2009 and 2008
(in thousands of dollars)
(unaudited)
------------------------------------------------------------------------
------------------------------------------------------------------------
 2009 2008
------------------------------------------------------------------------
 $ $
Cash flows from operating activities
 Net earnings 2,028 1,014
 Adjustments for:
 Amortization 356 317
 Amortization included in cost of good sold 252 201
 Gain on disposal of capital assets (8) (96)
 Shortage of expense over pension plan
 funding (111) (224)
------------------------------------------------------------------------
 2,517 1,212

 Changes in non-cash working capital items (9,941) (5,484)
------------------------------------------------------------------------
 (7,424) (4,272)
------------------------------------------------------------------------

Cash flows used by financing activities
 (Decrease) increase in bank loan 5,000 (5,475)
 Increase in banker's acceptances 5,000 9,000
 Redemption of common shares - (12)
 Dividends (2,572) (2,144)
------------------------------------------------------------------------
 7,428 1,369
------------------------------------------------------------------------

Cash flows used by investing activities
 Acquisition of capital assets (983) (566)
 Proceeds on disposal of capital assets 9 151
------------------------------------------------------------------------
 (974) (415)
------------------------------------------------------------------------

Net cash (outflow) inflow (970) (3,318)
(Bank overdraft), beginning of year (4,847) (2,894)
------------------------------------------------------------------------
Bank overdraft, end of year (5,817) (6,212)
------------------------------------------------------------------------
------------------------------------------------------------------------

Bank overdraft is comprised of:
 Cash 924 1,128
 Bank overdraft (6,741) (7,340)
------------------------------------------------------------------------
 (5,817) (6,212)