Goodfellow Reports Its Results for the Fiscal Year Ended November 30, 2016
(firmenpresse) - DELSON, QUEBEC -- (Marketwired) -- 02/27/17 -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the twelve months ended 30 November 2016. The Company reported a net loss of $12.1 million or $1.42 per share for fiscal 2016 compared to a net profit of $8.6 million or $1.01 per share last year. For the three months ended 30 November 2016, the Company reported a net loss of $11.2 million or $1.31 per share compared to a net profit of $2.0 million or $0.23 per share a year ago. Consolidated sales during fiscal 2016 were $565.2 million compared to $539.0 million for the twelve months last year. Consolidated sales for the three months ended 30 November 2016 were $130.7 million compared to $135.2 million last year.
A SPECIAL STATEMENT
The major loss is a result of the very difficult implementation of an ERP system. Unfortunately, the system took some time to provide the hoped for quality of information available to management. Although the situation was perceived to have improved during the year, it was only in December/January 2017 that the disastrous effects were truly revealed.
On January 17th, 2017 a top management change was effected to myself and all energies and measures taken since have gone a long way to correcting the issues. The system transactionally is now working adequately in all locations and the downstream reporting has improved to a basic level. This situation during 2016 was combined with the complete upheaval of our pressure-treated business with the formation of the TLGI Joint-Venture with the Lebel Group. This structural change is now under review and specific changes will be required. Immediate measures taken post January 17th, 2017 are a complete physical review of inventories at all locations and an immediate freeze on any non-essential purchasing with the objective of reducing company-wide inventories 10 to 15%. A major sales initiative is now under way to achieve this objective.
In addition, a significant staff reduction has been initiated at all levels. All non-essential expenses are under immediate review. These initiatives have taken hold and prompt results are being seen. More cost cutting initiatives will be required in the coming months. All measures are being taken to ensure the company returns to its historic profitable operating situation by year-end 2017.
Richard Goodfellow, our President from 1988 until November 2014, has returned to work in Delson as a senior advisor to myself to assist in the re-structuring and the evaluation of the current situation. His presence has gone a long-way to re-establishing our staff''s confidence in the future of the company. Clear steps are being taken to re-establish profitability short term.
Historic difficult winter conditions continue in Q1 but most parts of the business have positive expectations for the coming spring. All measures taken should be well reflected by the end of Q2 at the end of May.
Patrick Goodfellow, President and CEO
Goodfellow Inc. is one of eastern Canada''s largest independent re-manufacturers and distributors of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.
Contacts:
Goodfellow Inc.
Patrick Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
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Datum: 27.02.2017 - 17:24 Uhr
Sprache: Deutsch
News-ID 1489353
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Natural Resource Management
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