216 0 Kommentare Goodfellow Reports Its Results for the Fiscal Year Ended November 30, 2016

DELSON, QUEBEC--(Marketwired - Feb. 27, 2017) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the twelve months ended 30 November 2016. The Company reported a net loss of $12.1 million or $1.42 per share for fiscal 2016 compared to a net profit of $8.6 million or $1.01 per share last year. For the three months ended 30 November 2016, the Company reported a net loss of $11.2 million or $1.31 per share compared to a net profit of $2.0 million or $0.23 per share a year ago. Consolidated sales during fiscal 2016 were $565.2 million compared to $539.0 million for the twelve months last year. Consolidated sales for the three months ended 30 November 2016 were $130.7 million compared to $135.2 million last year.

A SPECIAL STATEMENT

The major loss is a result of the very difficult implementation of an ERP system. Unfortunately, the system took some time to provide the hoped for quality of information available to management. Although the situation was perceived to have improved during the year, it was only in December/January 2017 that the disastrous effects were truly revealed.

On January 17th, 2017 a top management change was effected to myself and all energies and measures taken since have gone a long way to correcting the issues. The system transactionally is now working adequately in all locations and the downstream reporting has improved to a basic level. This situation during 2016 was combined with the complete upheaval of our pressure-treated business with the formation of the TLGI Joint-Venture with the Lebel Group. This structural change is now under review and specific changes will be required. Immediate measures taken post January 17th, 2017 are a complete physical review of inventories at all locations and an immediate freeze on any non-essential purchasing with the objective of reducing company-wide inventories 10 to 15%. A major sales initiative is now under way to achieve this objective.

In addition, a significant staff reduction has been initiated at all levels. All non-essential expenses are under immediate review. These initiatives have taken hold and prompt results are being seen. More cost cutting initiatives will be required in the coming months. All measures are being taken to ensure the company returns to its historic profitable operating situation by year-end 2017.

Richard Goodfellow, our President from 1988 until November 2014, has returned to work in Delson as a senior advisor to myself to assist in the re-structuring and the evaluation of the current situation. His presence has gone a long-way to re-establishing our staff's confidence in the future of the company. Clear steps are being taken to re-establish profitability short term.

Historic difficult winter conditions continue in Q1 but most parts of the business have positive expectations for the coming spring. All measures taken should be well reflected by the end of Q2 at the end of May.

Patrick Goodfellow, President and CEO

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 years ended November 30, 2016 and 2015
(in thousands of dollars, except per share amounts)

		Years ended
		November 30 2016		November 30 2015
		$		$

Sales		565,173		538,975
Expenses
	Cost of goods sold	483,885		435,960
	Selling, administrative and general expenses	93,942		88,559
	Net financial costs	3,640		2,582
		581,467		527,101

(Loss) Earnings before income taxes		(16,294	)	11,874

Income taxes		(4,189	)	3,252

Net (loss) earnings		(12,105	)	8,622

Items that will not subsequently be reclassified to net earnings

Remeasurement of defined benefit plan obligation (asset), recovery of taxes of $1,070 (2015 - net of taxes of $1,099)		(2,750	)	2,969

Total comprehensive income		(14,855	)	11,591

Net (loss) earnings per share - Basic and diluted		(1.42	)	1.01


GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)

		As at	As at
		November 30 2016	November 30 2015
		$	$
Assets
Current Assets
	Cash	703	965
	Trade and other receivables	64,255	65,670
	Income taxes receivable	6,598	-
	Inventories	115,391	97,665
	Prepaid expenses	4,863	4,156
Total Current Assets		191,810	168,456

Non-Current Assets
	Property, plant and equipment	38,693	36,146
	Intangible assets	5,428	2,667
	Defined benefit plan asset	2,234	4,812
	Investment in a joint venture	3,403	-
Total Non-Current Assets		49,758	43,625
Total Assets		241,568	212,081

Liabilities
Current liabilities
	Bank indebtedness	94,113	46,781
	Trade and other payables	30,721	29,762
	Income taxes payable	-	1,595
	Provision	963	1,112
	Current portion of long-term debt	136	113
Total Current Liabilities		125,933	79,363

Non-Current Liabilities
	Provision	475	477
	Long-term debt	126	-
	Deferred income taxes	3,296	4,141
	Defined benefit plan obligation	1,045	-
Total Non-Current Liabilities		4,942	4,618
Total Liabilities		130,875	83,981

Shareholders' equity
	Share capital	9,152	9,152
	Retained earnings	101,541	118,948
		110,693	128,100
Total Liabilities and Shareholders' Equity		241,568	212,081


GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the years ended November 30, 2016 and 2015
(in thousands of dollars)
			Years ended
			November 30 2016		November 30 2015
			$		$
Operating Activities
	Net (Loss) Earnings		(12,105	)	8,622
	Adjustments for :
		Depreciation	3,850		3,026
		Accretion expense on provision	52		53
		(Decrease) Increase in provision	(202	)	84
		Income taxes	(4,189	)	3,252
		Gain on disposal of property, plant and equipment	-		(26	)
		Interest expense	2,392		1,555
		Funding in excess of pension plan expense	(197	)	(474	)
		Share of the profits of a joint venture	(403	)	-
			(10,802	)	16,092

	Changes in non-cash working capital items		(16,054	)	(7,859	)
	Interest paid		(2,482	)	(1,659	)
	Income taxes paid		(4,663	)	(2,146	)
			(23,199	)	(11,664	)
Net Cash Flows from Operating Activities			(34,001	)	4,428

Financing Activities
	Net increase in bank loans		2,000		5,500
	Increase in banker's acceptances		45,500		-
	Increase in long-term debt		369		51
	Reimbursement of long-term debt		(780	)	(858	)
	Dividends paid		(2,552	)	(2,977	)
			44,537		1,716

Investing Activities
	Acquisition of property, plant and equipment		(2,970	)	(2,101	)
	Increase in intangible assets		(2,865	)	(2,216	)
	Proceeds on disposal of property, plant and equipment		-		96
	Business acquisitions, net of cash acquired		(4,795	)	-
			(10,630	)	(4,221	)

Net cash (outflow) inflow			(94	)	1,923
Cash position, beginning of year			(1,816	)	(3,739	)
Cash position, end of year			(1,910	)	(1,816	)

Cash position is comprised of :
	Cash		703		965
	Bank overdraft		(2,613	)	(2,781	)
			(1,910	)	(1,816	)


GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the years ended November 30, 2016 and 2015
(in thousands of dollars)

		Share Capital	Retained Earnings		Total
		$	$		$

Balance as at November, 2014		9,152	110,334		119,486

	Net earnings	-	8,622		8,622
	Other comprehensive income	-	2,969		2,969

Total Comprehensive income		-	11,591		11,591

Transactions with owners of the Company

	Dividends	-	(2,977	)	(2,977	)

Balance as at November 30, 2015		9,152	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 with owners of the Company

	Dividends	-	(2,552	)	(2,552	)

Balance as at November 30, 2016		9,152	101,541		110,693