Goodfellow Reports its Results for the Second Quarter Ended May 31, 2017
(firmenpresse) - DELSON, QUEBEC -- (Marketwired) -- 07/04/17 -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the second quarter ended May 31st, 2017. For the three months ended May 31st, 2017, the Company reported a net loss of $(0.5) M or $(0.07) per share. Consolidated sales for the three months ended May 31st, 2017 were $139.6 M. For the month of May 2017, the Company reported a net profit of $0.845 M or $0.10 per share. Consolidated sales for the month of May 2017 were $52.1 M. EBITDA for the month of May 2017 was $1.940 M and EBITDA for Q2 was $1.312 M. For the six months ended May 31, 2017, the Company reported a net loss of $(5.9) M or $(0.70) per share. Consolidated sales for the six months ended May 31st, 2017 were $253.1 M.
A SPECIAL STATEMENT
Q2 results
Initiatives that began in the second half of Q1 started to show positive benefits in Q2. The Costs of Goods Sold was reset in order to incorporate all freight charges and give management the necessary information to challenge Goodfellow''s gross margin expectation upwards. The headcount reduction continued in the first half of Q2 to right size overhead primarily in Delson. Obsolete inventory sales action remained a priority concern through March and April. The aggressive nature of our obsolete inventory sell off, combined with heavy restrictions on inbound inventory, led to substantial losses in March and April. By May 1st the company had right sized its inventory to a reasonable level giving it the ability to replenish prime goods and move forward. Crucial margin levels are being restored to historic norms, despite the compromised pressure treated wood margin, and the cost cutting measures have taken hold. The salesforce showed great resilience in regaining market share and re-establishing customer loyalty. May''s results demonstrate the company is closer to normalcy. Yet, much work is to be done. There is greater clarity within the company of where our future success lies.
Update TLGI JV
The dissolution of the pressure treated joint venture took place as expected by May 31st in common accord. The corporate guarantee of $6.5 M related to the BN line has been released and Goodfellow is secured in regaining its initial $3.0 M investment.
Outlook
The company is continuing in its focused strategy to steadily increase margin levels and address all elements of obsolete inventory. Product lines are being reviewed to attribute precious inventory dollars properly and set a positive course leading to our annual warehouse sale August 15th in Delson and August 17th in Campbellville.
Goodfellow Inc. is a distributor of lumber products, building materials, 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: 04.07.2017 - 12:37 Uhr
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News-ID 1512163
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DELSON, QUEBEC
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Natural Resource Management
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