WOW
Goodfellow year-end results
Goodfellow Inc GDL
Shares issued 4,084,627 1999-10-01 close $11.6
Monday Oct 4 1999
Mr. Richard Goodfellow reports
Financial results for the company's fiscal year and fourth quarter
ended Aug. 31, 1999, were the best ever recorded in the company's
history.
Goodfellow president, Richard Goodfellow, stated that all product
areas contributed to this success. He added all sales regions showed
strong growth and profitability, including Western Canada where
conditions remained difficult. "Our flooring division did
particularly well late in the year with the addition of more lines
and new sales territory in the U.S. Northwest. Our U.S. sales group
again showed solid gains in all product lines. Our sales coverage
area continues to expand and new customers for our added-value
speciality products are constantly being gained."
The diversification of orders during the year underlined the
company's ability to consistently widen its client base. Projects
included contracts at major wharf, marine and mining sites
worldwide, restoration of a wood pipeline in Jamaica, continued
subway road mats for Toronto, major restoration work in the U.S. and
continued sales of reclaimed and recycled timbers.
An outstanding opportunity during the year was a distribution
agreement with IsobordT, a new greenfield-venture strawboard
fibreboard plant in Elie, Man. This environmentally positive product
added close to $10-million in sales and presents a strong
possibility for future sales throughout North America. Goodfellow's
strong relationships with major big box retailers in the U.S. and
Canada also add to the company's earnings potential.
"Fiscal 1998/1999 presented both challenges and opportunities. Last
August, just days prior to our year-end, we experienced a major fire
at our main complex in Delson. While such events can be potentially
devastating, we met the challenge and, in fact, are in better shape
today than prior to the incident. We were back in complete kiln
production by midyear taking advantage of the new modern, increased
and even more efficient assets gained as a result of the fire."
Mr. Goodfellow concluded prospects for fiscal 1999/2000 are
optimistic. "We are budgeting over 10-per-cent sales growth. The
continued growth in renovation, the low Canadian dollar favouring
Canadian exports, and our very attractive product offering all
favour Goodfellow. The continued restructuring in the forest product
and building materials distribution area in Canada has enhanced
Goodfellow to the point that we have evolved as the premier
distributor of many products in most markets."
STATEMENT OF INCOME
Year ended Aug. 31
(thousands of dollars)
1999 1998
Sales $ 386,994 $ 335,696
---------- ----------
Expenses
Cost of goods
sold, selling,
administrative and
general expenses 370,927 324,043
Depreciation and
amortization 1,945 1,788
Financial 3,433 3,161
---------- ----------
376,305 328,992
---------- ----------
Income before
income taxes 10,689 6,704
Income taxes 4,062 2,547
---------- ----------
Net income
before extraordinary
item 6,627 4,157
---------- ----------
Extraordinary
item - 2,207
---------- ----------
et income $ 6,627 $ 6,364
========== ==========
Earnings per
share before
extraordinary
item $1.60 $1.01
STATEMENT OF INCOME
Three months ended Aug. 31
(thousands of dollars)
1999 1998
Sales $ 120,083 $ 96,100
---------- ----------
Expenses
Cost of goods
sold, selling,
administrative and
general expenses 113,547 91,878
Depreciation and
amortization 559 467
Financial 947 1,012
---------- ----------
115,053 93,357
---------- ----------
Income before
income taxes 5,030 2,743
Income taxes 1,912 1,062
---------- ----------
Net income
before extraordinary
item 3,118 1,681
---------- ----------
Extraordinary
item - 2,207
---------- ----------
et income $ 3,118 $ 3,888
========== ==========
Earnings per
share before
extraordinary
item 75 cents 41 cents
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