WOW, must have been released after the close, very impressive,
especially when the costs of opening their new centers in the west
are included..(hiring,training,leases,inventory etc etc)..Scott
Canadian Company Press Releaseÿ
GDLÿÿ1997-07-08 ÿÿ(provided courtesy of Canadian Corporate News)
Goodfellow Reports Most Successful Single Quarter in Corporate
History - Nine Month Net Income Almost Doubles Dividend
DELSON, QUEBEC--Goodfellow Inc. today announced third quarter
results for the period ended May 31st, 1997. Company President,
Richard Goodfellow noted this most recent quarter was the best in
Goodfellow's history and predicted a record year for the lumber
products company.
Sales for the third quarter increased almost 40 percent to $83
million from $60 million a year ago. Net earnings rose to $1.8
million or $0.45 per share compared to $1.5 million or $0.39 per
share for the third quarter last year.
Net income for the nine months ended May 31, 1997 was $3.77
million or $0.96 per share compared to net income of $1.89 million
or $0.49 per share for the nine months a year ago. Sales for the
nine months increased to $202 million from $152 million.
The Board of Directors of Goodfellow Inc. today also declared a
dividend of $0.13 per share payable August 21, 1997 to all
shareholders of record July 30, 1997. This compares to the $0.07
paid at this time last year.
Mr. Goodfellow said that fueling the third quarter growth was a
record month in April. "We achieved an all time record sales
month of $33 million in April. The fact that this was
accomplished is an indication of the capacity potential of our
overall operation. Strong prices in all areas helped maintain
margins despite concentrated and strong competition in many
sectors. Many of our new operations and products paid off
handsomely for the incremental effort we extended. Wood flooring
and exports, in particular, continued to be extremely strong."
During the third quarter, Goodfellow opened two new wood flooring
distribution centers in Western Canada. With the existing and
added personnel in both Edmonton and Winnipeg focused on this
effort, the company expects both will be immediate positive
contributors to overall sales growth and profitability.
Mr. Goodfellow pointed out that while costs did increase, they
were proportionately far less than the growth in revenues. "We
continued to look for areas where costs can be better controlled
or reduced. Financial expenses were also down even though
inventories and receivables were up sharply. Bad debts were at a
lower level than the previous year and well below our five year
average."
Mr. Goodfellow stated that all efforts are focused on producing a
fourth quarter that will surpass last year's results. "The end of
what surely will be a record year for the company is in sight. We
expect that this trend will carry forward into 1998, our 100th
anniversary year. We strive to search out new opportunities that
will enable us to further continue to enhance shareholder value."
Goodfellow Inc. is Eastern Canada's largest independent re-
manufacturer and distributor of lumber products. Goodfellow
shares are listed on the Montreal Exchange under the symbol GDL.
The company celebrates its 100th anniversary next year.
/T/
GOODFELLOW INC.
STATEMENT OF INCOME
Nine Months Ended May 31
(in thousands of dollars except earnings per share)
(Unaudited)
1997 1996
$ $
_________________________
Sales 202,134 152,383
_________________________
Expenses
Cost of goods sold, selling,
administrative and general
expenses 193,258 146,266
Depreciation and amortization 1,212 1,246
Financial 1,380 1,608
_________________________
195,850 149,120
_________________________
Income before income taxes 6,284 3,263
Income taxes 2,514 1,371
_________________________
Net income 3,770 1,892
_________________________
_________________________
Earnings per share 0.96 0.49
Three Months Ended May 31
(in thousands of dollars except
earnings per share) (Unaudited)
1997 1996
$ $
_________________________
Sales 82,986 60,354
_________________________
Expenses
Cost of goods sold, selling,
administrative and general
expenses 79,097 56,791
Depreciation and amortization 414 403
Financial 530 574
_________________________
80,041 57,768
_________________________
Income before income taxes 2,945 2,586
Income taxes 1,178 1,087
_________________________
Net income 1,767 1,499
_________________________
_________________________
Earnings per share 0.45 0.39
_________________________
_________________________
GOODFELLOW INC.
CONDENSED BALANCE SHEET
As At May 31
(in thousands of dollars)
(Unaudited)
1997 1996
$ $
_________________________
Current assets 93,835 66,946
Total assets 114,783 87,312
Current liabilities 70,076 44,820
Long-term debt 4,500 7,396
Total liabilities 77,063 54,713
Shareholders' equity 37,720 32,599
_________________________
_________________________
GOODFELLOW INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
Nine Months Ended May 31
(in thousands of dollars)
(Unaudited)
1997 1996
$ $
_________ _________
Operating activities
Net income 3,770 1,892
Items not affecting cash
Depreciation of amortization 1,212 1,246
Gain on disposal of assets (120) (197)
_________ _________
4,862 2,941
Changes in non cash operating
working capital balances (30,520) (10,132)
_________ _________
(25,658) (7,191)
Financing activities
Dividends (506) (271)
Repayment of long-term debt (2,563) (62)
Issuance of common shares 709 29
________ _________
(2,360) (304)
Investing activities
Acquisition of fixed assets (1,516) (1,050)
Disposal of fixed assets 163 571
Payment of mortgage receivable 4 0
_________ ________
(1,349) (479)
Net cash inflow (outflow) (29,367) (7,974)
Cash position, beginning
of period (24,642) (23,746)
_________ _________
Cash position, end of period (54,009) (31,720)
_________ _________
_________ _________
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Goodfellow Inc.
Richard Goodfellow
President
(514) 635-6511
(514) 635-3730 (FAX)
www.gdfellow.com
or
Maison Brison
Rick Leckner
Investor Relations
(514) 731-0000
(514) 731-4525 (FAX)
brison1@nexus-is.qc.ca
ÿ
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