Goodfellow Reports its Results for the Fiscal Year Ended

Goodfellow Reports its Results for the Fiscal Year Ended August 31,
2012 and Declares an Eligible Dividend 
DELSON, QUEBEC -- (Marketwire) -- 11/07/12 -- Goodfellow Inc.
(TSX:GDL) announced today its financial results for the fiscal year
ended August 31, 2012. The Company generated net earnings of $4.4
million or $0.51 per share compared to net earnings of $3.0 million
or $0.35 per share a year ago. Consolidated sales for the fiscal year
2012 were $500.7 million compared to $466.8 million for the same
period a year ago. Cash flow from operations (excluding non-cash
working capital, income tax paid and interest paid) for fiscal 2012
increased to $8.3 million from $7.1 million for the same period last
year. Fiscal 2011-2012 called for caution and Management responded
with a focus on cost reduction during the first 3 quarters while
maintaining its market share presence in an extremely competitive
environment across all our regional markets. As such, consolidated
sales grew 7% during fiscal 2012. Our focus on introducing profitable
value-added product lines continued throughout the year with the
development and expansion of our product offering. On the operating
side, Management maintained its focus on controlling its variable
costs within sales growth rates without affecting its customer
service levels. As such, direct, selling and administrative expenses
were reduced by 2% or $1.7 million. 
The Company generated net income of $2.5 million or $0.29 per share
during the fourth quarter of fiscal 2012 (same as the fourth quarter
last year). Consolidated sales for the fourth quarter of fiscal 2012
were $152.3 million compared to $135.0 million for the same period a
year ago. Cash flow from operations (excluding non-cash working
capital, income tax paid and interest paid) for the fourth quarter of
fiscal 2012 decreased to $4.0 million from $4.2 million for the same
period last year. 
"Our 2011/2012 fiscal year was one that showed a slight improvement
over last year. Our sales (up 7%) recovered to the $500 million mark
but margins continued to be squeezed in most areas." said Richard
Goodfellow, President and Chief Executive Officer. "Our market share
has continued to grow with consolidation of many in each business
sector and this should help us continue to grow both our sales an
d
improve profitability." 
The Board of directors of Goodfellow Inc. declared an eligible
dividend of $0.15 per share payable November 30, 2012, to all
shareholders of record as of November 16, 2012. 
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. 


 
GOODFELLOW INC.                                                             
Consolidated Statements of Comprehensive Income                             
For the years ended August 31, 2012 and 2011                                
(in thousands of dollars, except per share amounts)                         
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                                                         2012           2011
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                                                            $              $
                                                                            
Sales                                                 500,688        466,809
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Expenses                                                                    
  Cost of goods sold                                  413,501        379,839
  Selling, administrative and general expenses         79,330         81,082
  Net financial costs                                   1,794          1,657
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                                                      494,625        462,578
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Earnings before income taxes                            6,063          4,231
                                                                            
Income taxes                                            1,708          1,228
                                                                            
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Net earnings, being comprehensive income                4,355          3,003
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Earnings per share                                                          
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  Basic and diluted                                      0.51           0.35
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GOODFELLOW INC.                                                             
Consolidated Statements of Financial Position                               
As at August 31, 2012, 2011 and September 1, 2010                           
(in thousands of dollars)                                                   
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                                                    2012      2011      2010
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                                                       $         $         $
Assets                                                                      
Current Assets                                                              
  Cash and cash equivalents                          707       210       548
  Trade and other receivables                     83,083    71,284    81,184
  Income taxes recoverable                             -     3,708         -
  Inventories                                     63,736    58,722    63,367
  Prepaid expenses                                 3,474     1,699     1,647
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Total Current Assets                             151,000   135,623   146,746
                                                                            
Non-Current Assets                                                          
  Property, plant and equipment                   35,743    37,125    37,854
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                                                 186,743   172,748   184,600
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Liabilities        
                                                         
Current liabilities                                                         
  Bank indebtedness                               37,157    28,617    27,132
  Trade and other payables                        29,060    24,486    34,597
  Income taxes payable                                22         -     1,584
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Total Current Liabilities                         66,239    53,103    63,313
                                                                            
Non-Current Liabilities                                                     
  Provisions                                       1,442     1,498     1,400
  Deferred income taxes                            2,514     2,195     2,234
  Defined benefit plan obligation                    512     2,048     3,323
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Total Non-Current Liabilities                      4,468     5,741     6,957
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                                                  70,707    58,844    70,270
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Shareholders' equity                                                        
  Share capital                                    9,154     9,222     9,222
  Retained earnings                              106,882   104,682   105,108
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                                                 116,036   113,904   114,330
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                                                 186,743   172,748   184,600
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GOODFELLOW INC.                                                             
Consolidated Statements of Cash Flows                                       
Years ended August 31, 2012 and 2011                                        
(in thousands of dollars)                                                   
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                                                       2012            2011 
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                                                          $               $ 
                                                                            
Cash Flows Used in Operating Activities                                     
  Net Earnings                                        4,355           3,003 
  Adjustments for :                                                         
    Depreciation                                      2,872           3,089 
    Accretion expense on environmental                                      
     provision                                          120              98 
    Decrease in environmental provision                (176)              - 
    Deferred income taxes                               319             (39)
    Income tax expense                                1,389           1,267 
    Gain on disposal of property, plant and                                 
     equipment                                            -            (118)
    Interest expense                                    961           1,053 
    Funding in excess of pension plan                                       
     expense                                         (1,536)         (1,275)
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                                                      8,304           7,078 
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  Changes in non-cash working capital items         (14,180)          4,400 
  Interest paid                                        (975)         (1,033)
  Income taxes paid (recovered)                       2,341          (6,559)
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                                                    (12,814)         (3,192)
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Cash Flows From (Used In) Financing                                         
 Activities                                                                 
  Decrease in bank loans                                  -          (4,000)
  Increase in banker's acceptances                    9,000               - 
  Redemption of shares                                 (515)              - 
  Dividends paid                                     (1,708)         (3,429)
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                                                      6,777          (7,429)
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Cash Flows Used In Investing Activities                                     
  Acquisition of property, plant and                                        
   equipment                                         (1,310)         (2,448)
  Proceeds on disposal of property, plant                                   
   and equipment                                          -             168 
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                                                     (1,310)         (2,280)
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Net cash inflow (outflow)                               957          (5,823)
Cash position, beginning of year                     (9,407)         (3,584)
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Cash position, end of year                           (8,450)         (9,407)
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Cash position is comprised of :                                             
  Cash and cash equivalents                             707             210 
  Bank overdraft                                     (9,157)         (9,617)
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                                                     (8,450)         (9,407)
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GOODFELLOW INC.                                                             
Consolidated Statements of Change in Shareholders' Equity                   
Years ended August 31, 2012 and 2011                                        
(in thousands of dollar)                                                    
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                                                   Retained                 
                              Share Capital        Earnings           Total 
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                                          $               $               $ 
                                                                            
Balance as at September 1,                                                  
 2010                                 9,222         105,108         114,330 
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Net earnings                              -           3,003           3,003 
                                                                            
Transactions with owners,                                                   
 recorded directly in                                                       
 shareholders' equity                                                       
                                                                            
  Dividends                               -          (3,429)         (3,429)
                                                                            
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Balance as at August 31,                                                    
 2011                                 9,222         104,682         113,904 
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Net earnings                              -           4,355           4,355 
                                                                            
Transactions with owners,                                                   
 recorded directly in                                                       
 shareholders' equity                                                       
                                                                            
  Dividends                               -          (1,708)         (1,708)
  Redemption of Shares                  (68)           (447)           (515)
                                                                            
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Balance as at August 31,                                                    
 2012                                 9,154         106,882         116,036 
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Contacts:
Goodfellow Inc.
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com
 
 
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