Market Overview

Goodfellow Reports its Results for the Fiscal Year Ended August 31, 2012 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwire - Nov. 7, 2012) - 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 and 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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FOR FURTHER INFORMATION PLEASE CONTACT:
Goodfellow Inc.
Richard Goodfellow
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com

 

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