Mike, looks pretty good.. Scott
Third quarter results
Goodfellow Inc GDL
Shares issued 4,084,627 Jul 7 close $9.50
Thu 9 Jul 98 News Release
Mr. Richard Goodfellow reports
Results for the third quarter were marked by an improvement over the first
half of the year. Ehile year over year earnings were lower, all efforts are
now focused on completing the fourth quarter in line with original budget
projections.
Net earnings for the three months ended May 31, 1998 were $1.4-million or
34 cents per share, compared with $1.7-million or 45 cents per share for
the third quarter a year ago. Sales rose to $93-million from $83-million
last year.
For the nine months, net earnings were $2.5-million or 60 cents per share,
compared with $3.8-million or 96 cents per share a year ago. Sales
increased to $239.6-million from the $202.1-million posted for the nine
months last year.
The board of directors has declared a dividend of 13 cents per share
payable August 21, 1998 to all shareholders of record July 31, 1998. This
compares to the 13 cents paid at this time last year.
The higher sales reflect the relatively buoyant market in both the United
States and Canada. The problem, is with weaker margins.
There is a strong competitive environment throughout the industry; the
steep decline in the value of the Canadian dollar has affected wholesale
flooring costs and subsequent pricing; lumber and plywood commodity prices
have collapsed; and the economic situation in Western Canada, particularly
in Vancouver is difficult. All these combined to push margins downwards.
While some areas of the business are performing well, other segments are
facing more challenges than had been anticipated.
Increased costs associated with "just-in-time" deliveries and smaller and
more specialized orders have also been a factor. The company's inability to
restructure its pricing strategy has hurt it in the short-term. However, a
concerted effort is being made to reduce costs at all levels and to restore
margins.
The company remains optimistic that these initiatives will produce a fourth
quarter in line with original budget projections.
STATEMENT OF EARNINGS
Nine months ended May 31
(thousands of dollars)
1998 1997
Sales $239,596 $202,134
-------- --------
Expenses
Cost of goods sold,
selling, admin and
general expenses 232,165 193,258
Depreciation and
amortization 1,321 1,212
Financial 2,149 1,380
-------- --------
235,635 195,850
-------- --------
Income before
income taxes 3,961 6,284
Income taxes 1,485 2,514
-------- --------
Net income 2,476 3,770
======== ========
Earnings per share
(cents) 60 96
STATEMENT OF EARNINGS
Three months ended May 31
(thousands of dollars)
1998 1997
Sales $93,159 $82,986
-------- --------
Expenses
Cost of goods sold,
selling, admin and
general expenses 89,533 79,097
Depreciation and
amortization 462 414
Financial 921 530
-------- --------
90,916 80,041
-------- --------
Income before
income taxes 2,243 2,945
Income taxes 832 1,178
-------- --------
Net income 1,411 1,767
======== ========
Earnings per share
(cents) 34 45
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