Mike, looks like they made out OK with insurance, 4Q looks pretty
good also, rev up approx 10% and earnings up approx 18% over last
year.. (0.41 per share for the 4Q vrs 0.35) Scott
Year end results
Goodfellow Inc GDL
Shares issued 4,084,627 Oct 5 close $6.70
Fri 9 Oct 98 News Release
Mr. Richard Goodfellow reports
Goodfellow had earnings of $4.2-million or $1.01 per share, before an
extraordinary item of $2.2-million net of income tax or 54 cents per share,
on sales of $335.7-million for the year ended Aug. 31, 1998. This compares
with net earnings of $5.2-million or $1.30 per share on sales of
$288.6-million last year. The extraordinary item relates to a gain from
insurance proceeds for property destroyed in a fire at the Delson
facilities on Aug. 22, 1998.
While sales grew by 18 per cent, particularly direct brokerage sales, net
earnings were lower than expected. The results can be deemed acceptable,
based on the challenges faced during the year. The company was able to
continue to expand business and remain profitable, notwithstanding
competitive and economic events affecting some margins, volatile markets,
unfavourable exchange rates, the ice storm in Quebec and higher interest
costs.
The company expects to continue sales growth by concentrating on the U.S.
market potential and to improve margins by focusing on more value-added
specialty products in the merchandise mix.
The replacement of the fully insured kiln and garage facility should be
completed by January 1999, and should have little adverse impact on
results. The company anticipates gaining market share in renovation, new
construction and value-added products in the year to come.
STATEMENT OF INCOME
Year ended Aug. 31
(thousands of dollars)
1998 1997
Sales $335,696 $288,572
--------- ---------
Expenses
Cost of goods sold,
selling, admin
and general
expenses 324,043 276,566
Depreciation
and amortization 1,788 1,657
Financial 3,161 1,964
--------- ---------
328,992 280,187
--------- ---------
Income before
income taxes and
extraordinary item 6,704 8,385
Income taxes 2,547 3,228
--------- ---------
Income before
extraordinary item 4,157 5,157
Extraordinary item 2,207 -
--------- ---------
Net income $6,364 $5,157
========= =========
Earnings per share
before extra-
ordinary item 1.01 1.30
STATEMENT OF INCOME
Three months ended Aug. 31
(thousands of dollars)
1998 1997
Sales $96,100 $86,438
--------- ---------
Expenses
Cost of goods sold,
selling, admin
and general
expenses 91,878 83,308
Depreciation
and amortization 467 445
Financial 1,012 584
--------- ---------
93,357 84,337
--------- ---------
Income before
income taxes and
extraordinary item 2,743 2,101
Income taxes 1,062 714
--------- ---------
Income before
extraordinary item 1,681 1,387
Extraordinary item 2,207 -
--------- ---------
Net income $3,888 $1,387
========= =========
Earnings per share
before extra-
ordinary item 41 cents 35 cents
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