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Press release from Marketwire

Goodfellow Reports its Results for the First Quarter Ended November 30, 2011

Friday, February 10, 2012

Goodfellow Reports its Results for the First Quarter Ended November 30, 201112:08 EST Friday, February 10, 2012DELSON, QUEBEC--(Marketwire - Feb. 10, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the first quarter ended November 30, 2011. The accompanying Interim Financial Statements for the first three months ended November 30, 2011 have been prepared in accordance with IFRS. The Company generated net earnings of $0.9 million or $0.10 per share compared to net earnings of $1.0 million or $0.11 per share a year ago. Consolidated sales for the first three months ended November 30, 2011 were $106.0 million compared to $109.4 million in the previous year. Cash flow from operations (excluding non-cash working capital items) for the first quarter of Fiscal 2012 decreased to $1.7 million from $2.1 million for the same period last year. The sales decline was mainly due to the decline from retail customer sales and a reduction of Industrial and Governmental project deliveries in the first quarter of Fiscal 2012. The Canadian housing market remained relatively active increasing 8.4% to 199,500 units on average (Source: CMHC) for the three months ended November 30, 2011 compared to 184,100 units in the first quarter a year ago. The sales decline was mitigated by our focused attention on cost reduction in all areas of our business in order to align our cost structure with expected lower business ahead. "This result is a continuation of the last 5 quarters - sales declines with sluggish markets and efforts to reduce costs " said Richard Goodfellow, President and Chief Executive Officer. "Many parts of our business continue to show growth and profit while others struggle and are the focus of our efforts. Our clear objective is to maintain and improve overall profitability while growing market share in these most turbulent times."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. Condensed Interim Consolidated Statements of Comprehensive Income (in thousands of dollars, except per share amounts) (unaudited)Three Months ended Nov 3020112010$$Sales106,039109,378ExpensesCost of goods sold85,57187,885Selling, administrative and general expenses18,84619,705Financial costs334398104,751107,988Earnings before income taxes1,2881,390Income taxes399431Net earnings, being comprehensive income889959Earnings per shareBasic and diluted0.100.11GOODFELLOW INC. Condensed Interim Consolidated Statement of Financial Position (in thousands of dollars) (unaudited)Nov 30Nov 30Aug 31Sep 12011201020112010$$$$AssetsCurrent AssetsCash and cash equivalents328562210548Trade and other receivables55,68958,41871,28481,184Income taxes recoverable4,2174863,708-Inventories72,33971,81958,72263,367Prepaid expenses3,3142,1711,6991,647Total Current Assets135,887133,456135,623146,746Non Current Assets Property, plant and equipment36,73738,05737,12537,854172,624171,513172,748184,600LiabilitiesCurrent liabilitiesBank indebtedness28,49124,05828,61727,132Trade and other payables24,89628,03424,48634,597Income taxes payable---1,584Total Current Liabilities53,38752,09253,10363,313Non-Current LiabilitiesProvisions 1,5061,4271,4981,400Deferred income taxes 2,1952,2362,1952,234Defined benefit plan obligation1,6003,0412,0483,323Total Non-Current Liabilities5,3016,7045,7416,95758,68858,79658,84470,270Shareholders' equityShare capital9,2229,2229,2229,222Retained earnings104,714103,495104,682105,108113,936112,717113,904114,330172,624171,513172,748184,600GOODFELLOW INC. Condensed Consolidated Statements of Cash Flows (in thousands of dollars) (unaudited)Three Months ended Nov 3020112010$$Cash Flows Used From Operating ActivitiesNet Earnings889959Adjustments for :Depreciation703738Accretion expense on Provisions827Income tax expenses399431Interest expenses159263Funding in excess of pension plan of expenses(448)(282)1,7102,136Changes in non-cash working capital items7437,298Interest paid(129)(332)Income taxes paid(908)(2,501)(294)4,465Cash Flows Used By Financing Activities(Decrease) in bank loan(6,000)(13,000)Increase in banker's acceptances5,00010,000Dividends paid(857)(2,572)(1,857)(5,572)Cash Flows Used By Investing ActivitiesAcquisition of property, plant and equipment(315)(941)(315)(941)Net cash (outflow) inflow(756)88Cash position, beginning of period(9,407)(3,584)Cash position, end of period(10,163)(3,496)Cash position is comprised of :Cash and cash equivalents328562Bank overdraft(10,491)(4,058)(10,163)(3,496)GOODFELLOW INC. Condensed Consolidated Statements of Change in Shareholder's Equity (in thousands of dollars, except per share amounts) (unaudited)Share CapitalRetained EarningsTotal$$$Balance as at September 1, 20119,222104,682113,904Net earnings-889889Transactions with owners, recorded directly in equityDividends-(857)(857)Balance as at November 30, 20119,222104,714113,936Share CapitalRetained Earnings Total$$$Balance as at September 1, 20109,222105,108114,330Net earnings-959959Transactions with owners, recorded directly in equityDividends-(2,572)(2,572)Balance as at November 30, 20109,222103,495112,717FOR FURTHER INFORMATION PLEASE CONTACT: Richard GoodfellowGoodfellow Inc.President and CEO(450) 635-6511(450) 635-3730 (FAX)info@goodfellowinc.com