GDL Goodfellow Inc

Goodfellow Inc. (TSX: GDL) announced today its financial results for the fourth quarter ended November 30, 2019. The Company reported a net income of $0.3 million or $0.03 per share compared to a net income of $0.2 million or $0.02 per share a year ago. Consolidated sales for the three months ended November 30, 2019 were $107.1 million compared to $112.7 million last year. Sales in Canada were stable compared to the same period a year ago, while sales in the United States decreased 5% (on a Canadian dollar basis) and export sales decreased 50% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $0.4 million.

For the fiscal year ended November 30, 2019, the Company reported a net income of $3.1 million or $0.36 per share compared to a net income of $2.6 million or $0.30 per share a year ago. Consolidated sales for the fiscal year ended November 30, 2019 were $449.6 million compared to $475.2 million last year. Sales in Canada decreased 3% compared to the same period a year ago, while sales in the United States decreased 14% (on a Canadian dollar basis) and export sales decreased 20% compared to the same period a year ago. On the operating side, selling, administrative and general expenses decreased overall by $3.6 million.

Despite challenging conditions in North America and overseas, Goodfellow’s core business activities showed great signs of resilience in 2019 to sustain the trend of improved profitability. The Company has invested in measures to improve its productivity and strengthen its position as the leader in custom orders & value-added manufacturing of wood products.

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.10 per share payable on March 13, 2020, to shareholders of record at the close of business on February 28, 2020.

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.

From:

Goodfellow Inc.Patrick GoodfellowPresident and CEOTel: 450 635-6511Fax: 450 635-3730Internet: info@goodfellowinc.com

GOODFELLOW INC.
Consolidated Statements of Comprehensive Income
For the years ended November 30, 2019 and 2018
(in thousands of dollars, except per share amounts)
Unaudited
	Years ended
	November 30 2019	November 30 2018
	$	$
Sales	449,587	475,207
Expenses
Cost of goods sold	364,545	387,311
Selling, administrative and general expenses	77,639	81,161
Gain on disposal of property, plant and equipment	(3)	(18)
Net financial costs	3,137	3,476
	445,318	471,930
Earnings before income taxes	4,269	3,277
Income taxes	1,215	706
Net earnings	3,054	2,571
Items that will not subsequently be reclassified to net earnings
Remeasurement of defined benefit plan obligation,
net of taxes of $265 ($318 in 2018)	(723)	858
Total comprehensive income	2,331	3,429
Net earnings per share – Basic	0.36	0.30
Net earnings per share - Diluted	0.35	0.30

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
	As at	As at
	November 302019	November 302018
	$	$
Assets
Current Assets
Cash	2,364	2,578
Trade and other receivables	48,498	50,008
Inventories	87,339	92,544
Prepaid expenses	2,563	3,143
Total Current Assets	140,764	148,273
Non-Current Assets
Property, plant and equipment	32,838	34,356
Intangible assets	3,927	4,444
Defined benefit plan asset	2,222	2,704
Investment in a joint venture	25	25
Other assets	805	916
Total Non-Current Assets	39,817	42,445
Total Assets	180,581	190,718
Liabilities
Current liabilities
Bank indebtedness	31,204	42,835
Trade and other payables	29,048	29,192
Income taxes payable	734	409
Provision	1,470	336
Dividend payable	856	-
Current portion of obligations under finance leases	15	14
Total Current Liabilities	63,327	72,786
Non-Current Liabilities
Provision	-	1,317
Obligations under finance leases	28	43
Deferred income taxes	3,209	3,652
Defined benefit plan obligation	609	57
Total Non-Current Liabilities	3,846	5,069
Total Liabilities	67,173	77,855
Shareholders’ Equity
Share capital	9,424	9,152
Retained earnings	103,984	103,711
	113,408	112,863
Total Liabilities and Shareholders’ Equity	180,581	190,718

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the years ended November 30, 2019 and 2018
(in thousands of dollars)Unaudited
	Years ended
	November 30 2019	November 30 2018
	$	$
Operating Activities
Net earnings	3,054	2,571
Adjustments for:
Depreciation	3,479	3,690
Accretion expense on provision	14	50
(Decrease) increase in provision	(197)	219
Income taxes	1,215	706
Gain on disposal of property, plant and equipment	(3)	(18)
Interest expense	2,134	2,502
Funding in deficit of pension plan expense	47	20
Other assets	111	(35)
Share-based compensation	(79)	-
	9,775	9,705
Changes in non-cash working capital items	6,856	3,391
Interest paid	(2,154)	(2,535)
Income taxes (paid) recovered	(1,069)	1,045
	3,633	1,901
Net Cash Flows from Operating Activities	13,408	11,606
Financing Activities
Proceeds from borrowings under bank loans	115,000	88,000
Repayment of borrowings under bank loans	(113,000)	(92,000)
Proceeds from borrowings under banker’s acceptances	40,000	31,000
Repayment of borrowings under banker’s acceptances	(53,000)	(37,000)
Repayment of finance lease liabilities	(14)	(137)
Dividend Paid	(851)	-
	(11,865)	(10,137)
Investing Activities
Acquisition of property, plant and equipment	(968)	(1,159)
Increase in intangible assets	(176)	(212)
Proceeds on disposal of property, plant and equipment	18	72
Dividends from the joint venture	-	260
	(1,126)	(1,039)
Net cash inflow	417	430
Cash position, beginning of year	743	313
Cash position, end of year	1,160	743
Cash position is comprised of:
Cash	2,364	2,578
Bank overdraft	(1,204)	(1,835)
	1,160	743

GOODFELLOW INC.
Consolidated Statements of Change in Shareholders’ Equity
For the years ended November 30, 2019 and 2018
(in thousands of dollars)
Unaudited
	Share Capital	Retained Earnings	Total
	$	$	$
Balance as at November 30, 2017	9,152	100,282	109,434
Net earnings	-	2,571	2,571
Other comprehensive income	-	858	858
Total comprehensive income	-	3,429	3,429
Balance as at November 30, 2018	9,152	103,711	112,863
Net earnings	-	3,054	3,054
Other comprehensive income	-	(723)	(723)
Total comprehensive income	-	2,331	2,331
Transactions with owners of the Company
Dividend	-	(1,707)	(1,707)
Share-based payment	272	(351)	(79)
Balance as at November 30, 2019	9,424	103,984	113,408