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Press release from Marketwire

Goodfellow Reports Its Results for the Fiscal Year Ended August 31, 2011

Wednesday, November 09, 2011

Goodfellow Reports Its Results for the Fiscal Year Ended August 31, 201116:36 EST Wednesday, November 09, 2011DELSON, QUEBEC--(Marketwire - Nov. 9, 2011) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2011. The Company generated net earnings of $3.0 million or $0.35 per share compared to a net earnings of $12.7 million or $1.48 per share a year ago. Consolidated sales for the fiscal year 2011 were $466.8 million compared to $504.5 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital items) for fiscal 2011 decreased to $4.7 million from $13.8 million for the same period last year. The sales decline was in big part due to the lower demand for flooring products linked with the absence of the Home Renovation Tax Credit which was in full effect during the first six months last year and the slowing business conditions overall in the lumber distribution. The Canadian housing market declined slightly during fiscal 2011 compared to last year.The Company generated net income of $2.5 million or $0.29 per share during the fourth quarter of fiscal 2011 compared to a net income of $4.9 million or $0.57 per share a year ago. Consolidated sales for the fourth quarter of fiscal 2011 were $135.0 million compared to $147.4 million for the same period a year ago. Cash flow from operations (excluding non-cash working capital) for the fourth quarter of fiscal 2011 decreased to $2.8 million from $5.6 million for the same period last year. "As warned in last year's annual report, fiscal 2011 was a slowing situation" said Richard Goodfellow, President and Chief Executive Officer. "Despite these declines, we continued to grow our market share in most areas of activity while attempting to operate at a lower cost level with reduced inventories."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 Earnings and Comprehensive IncomeYears ended August 31, 2011 and 2010(in thousands of dollars, except per share amounts)20112010$$Sales466,809504,477ExpensesCost of goods sold, selling, administrative, and general expenses458,968483,254Amortization1,5561,507Financial1,5591,251Foreign currency loss523368462,606486,380Earnings before income taxes4,20318,097Income taxes1,2215,434Net earnings, being Comprehensive Income2,98212,663Earnings per shareBasic and diluted0.351.48GOODFELLOW INC.Consolidated Statements of Retained EarningsYears ended August 31, 2011 and 2010(in thousands of dollars)20112010$$Balance, beginning of year106,880101,932Net earnings2,98212,663109,862114,595Dividends(3,428)(7,715)Balance, end of year106,434106,880GOODFELLOW INC.Consolidated Balance Sheets as at August 31, 2011 and 2010(in thousands of dollars)20112010$$AssetsCurrent assetsCash210548Accounts receivable71,28481,184Income taxes recoverable3,708-Inventories58,72263,367Prepaid expenses1,6991,647135,623146,746Capital assets30,33930,538Deferred pension asset7,1996,520173,161183,804LiabilitiesCurrent liabilitiesBank indebtedness28,61727,132Accounts payable and accrued liabilities25,91335,964Income taxes payable-1,58454,53064,680Future income taxes2,9753,02257,50567,702Shareholders' equityCapital stock9,2229,222Retained earnings106,434106,880115,656116,102173,161183,804GOODFELLOW INC.Consolidated Statements of Cash FlowsYears ended August 31, 2011 and 2010(in thousands of dollars)20112010$$Cash Flows from Operating ActivitiesNet earnings2,98212,663Adjustments for:Amortization1,5561,507Amortization included in cost of goods sold1,0021,046Future income taxes(47)348(Gain) loss on disposal of capital assets(117)8Funding of pension plan in excess of expense(679)(1,819)4,69713,753Changes in non-cash working capital items(812)(25,057)3,885(11,304)Cash Flows (used in) from Financing Activities(Decrease) increase in bank loan(4,000)13,000Increase in banker's acceptances-10,000Dividends(3,428)(7,715)(7,428)15,285Cash flows used in investing activitiesAcquisition of capital assets(2,448)(2,745)Proceeds on disposal of capital assets16827(2,280)(2,718)Net cash (outflow) inflow(5,823)1,263Cash Position, beginning of year(3,584)(4,847)Cash Position, end of year(9,407)(3,584)Cash Position is comprised of:Cash210548Bank overdraft(9,617)(4,132)(9,407)(3,584)Additional cash flow informationInterest paid1,052777Income taxes paid6,5603,741Unpaid fixed assets341FOR FURTHER INFORMATION PLEASE CONTACT: Richard GoodfellowGoodfellow Inc.President and CEO(450) 635-6511(450) 635-3730 (FAX)info@goodfellowinc.com