Mike, small article on Stella regarding the pole business and being up
30%. Re GDL the sales look FANTASTIC, earnings are a
disappointment, perhaps they will look at increasing margins even if
sales are down a bit. Scott
Canadian Corporate News - Pointcast Network Canada
Goodfellow Inc. Announces First Quarter Results 13:45 EST
Wednesday, January 14, 1998
Canadian Corporate News
DELSON, QUEBEC--Goodfellow Inc. announced its first quarter
results today for the period ended November 30, 1997. The Company
posted a profit of $1.2 million or $0.30 per share on sales of $78
million compared to a profit of $1.2 million or $0.31 per share on sales
of $59.2 million last year.
Sales increased over 30 percent due to increased specialty product,
direct brokerage and export activity. Specialty flooring products
continue to account for the largest increase in sales growth, although
sales levels have increased in all products. Profit levels this year
reflect the impact of lower margins compared to the first quarter in
1996/97. Margins were affected by recent product price increases
and unfavorable exchange rates.
The Company is planning continued sales growth in most business
sectors and will continue to place emphasis on specialty product
sales and further expansion into the U.S. market.
The recent severe ice storm in Quebec, Eastern Ontario and
Northeastern U.S. has created an extreme demand for the Company's
crossarm and utility pole products. Our remanufacturing operations
have been working on a 24 hour basis to satisfy this demand from our
key utility customers in Canada and the U.S.
Goodfellow Inc. is celebrating its 100th year of business. It is Eastern
Canada's largest independent remanufacturer and distributor of
lumber products and the largest distributor of hardwood flooring
products in Canada. The Company's shares are listed on the Montreal
Exchange under the symbol GDL and its website is located at
www.gdfellow.com.
The Company's Annual General Meeting scheduled for today at the
Montreal Exchange has been postponed because of last week's ice
storm and will now be held on Wednesday January 28, 1998 at 11:00
AM at the Montreal Exchange.
GOODFELLOW INC. STATEMENT OF INCOME
Three Months Ended November 30 (in thousands of dollars except earnings per share) (Unaudited) 1997 1996 $ $--------------------------------------------------------------------------------------------------------------------Sales 78,087 59,184--------------------------------------------------------------------------------------------------------------------ExpensesCost of goods sold, selling, administrative and general expenses 75,175 56,358Depreciation and amortization 429 394Financial 542 425-------------------------------------------------------------------------------------------------------------------- 76,146 57,177--------------------------------------------------------------------------------------------------------------------Income before income taxes 1,941 2,007Income taxes 738 803--------------------------------------------------------------------------------------------------------------------Net income 1,203 1,204----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Earnings per share 0.30 0.31---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- CONDENSED BALANCE SHEET As At November 30 (in thousands of dollars) (Unaudited) 1997 1996 $ $--------------------------------------------------------------------------------------------------------------------Current assets 88,459 63,170Total assets 111,535 84,233Current liabilities 65,288 42,605Long-term debt 4,334 4,667Total liabilities 72,109 49,759Shareholders' equity 39,426 34,474---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- GOODFELLOW INC. STATEMENT OF CHANGES IN FINANCIAL POSITION Three Months Ended November 30 (in thousands of dollars) (Unaudited) 1997 1996 $ $--------------------------------------------------------------------------------------------------------------------Operating activities Net income 1,203 1,204 Items not affecting cash Depreciation of amortization 429 394 Gain on disposal of assets (58) ---------------------------------------------------------------------------------------------------------------------- 1,574 1,598Changes in non cash operating working capital balances (11,760) (2,936)-------------------------------------------------------------------------------------------------------------------- (10,186) (1,338)Financing activities Dividends(531)(506) Repayment of long-term debt (83) (7,396) Issuance of long-term debt -- 5,000 Issuance of common shares 69 29-------------------------------------------------------------------------------------------------------------------- (545) (2,873)Investing activities Acquisition of fixed assets (1,806) (767) Disposal of fixed assets 130 -- Payment of mortgage receivable (2) 1-------------------------------------------------------------------------------------------------------------------- (1,678) (766)--------------------------------------------------------------------------------------------------------------------Net cash inflow (outflow) (12,409) (4,977)Cash position, beginning of period (34,105) (24,642)--------------------------------------------------------------------------------------------------------------------Cash position, end of period (46,514) (29,619)----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
c Canadian Corporate News - 1997 |
