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Press release from Marketwire

Goodfellow Reports its Results for the Second Quarter Ended February 29, 2012

Friday, March 30, 2012

Goodfellow Reports its Results for the Second Quarter Ended February 29, 201210:42 EDT Friday, March 30, 2012DELSON, QUEBEC--(Marketwire - March 30, 2012) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the second quarter ended February 29, 2012. The Company recorded a net loss of $(0.6) million or $(0.07) per share compared to a net loss of $(1.7) million or $(0.20) per share a year ago. Consolidated sales for the three months ended February 29, 2012 were $101.1 million compared to $94.8 million in the previous year. Cash flow from operations (excluding non-cash working capital items) for the second quarter of Fiscal 2012 closed at $(0.4) million from $(1.8) million for the same period last year. The sales growth was due to favourable weather conditions during the winter months, increased demand from the retail flooring customer base and continued higher demand for our value-added products during the second quarter compared to last year. The Canadian housing market remained relatively active increasing 15.7% to 199,900 units on average (Source: CMHC) for the three months ended February 29, 2012 compared to 172,700 units in the second quarter a year ago. The sales increase reflects our commitment to maintain and grow our market share while focusing our attention on cost reductions in all areas of our business. As a result, operating costs during the second quarter decreased some 6% compared to the second quarter last year. The accompanying Interim Financial Statements for the second quarter ended February 29, 2012 have been prepared in accordance with IFRS. On a year-to-date basis, the Company generated net earnings of $0.3 million or $0.03 per share compared to net loss of $(0.7) million or $(0.08) per share a year ago. Consolidated sales for the six months ended February 29, 2012 were $207.2 million compared to $204.2 million in the previous year. Cash flow from operations (excluding non-cash working capital items) for the first six months of Fiscal 2012 increased to $1.3 million from $0.4 million for the same period last year."These results reflect our efforts to control costs while not giving up market share. Business conditions however remain generally sluggish and uncertain despite the early spring." said Richard Goodfellow, President and Chief Executive Officer. "There is no doubt that the light winter in most areas helped us improve our results over last year."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 Feb 29Six Months ended Feb 292012201120122011$$$$Sales101,12294,853207,161204,231 ExpensesCost of goods sold84,09578,222169,665166,107Selling, administrative and general expenses17,59518,75036,44138,455Financial costs351324685722102,04197,296206,791205,284Earnings before income taxes(919)(2,443)370(1,053)Income taxes(285)(758)115(327)Net earnings, being comprehensive income(634)(1,685)255(726)Earnings per shareBasic and diluted(0.07)(0.20)0.03(0.08)GOODFELLOW INC. Condensed Interim Consolidated Statements of Financial Position (in thousands of dollars) (unaudited)Feb 29Feb 28Aug 31Sep 12012201120112010$$$$AssetsCurrent AssetsCash and cash equivalents267527210548Trade and other receivables58,97654,47771,28481,184Income taxes recoverable4,9342,5853,708-Inventories72,67974,77758,72263,367Prepaid expenses1,8743,0851,6991,647Total Current Assets138,730135,451135,623146,746Non Current AssetsProperty, plant and equipment36,18038,09337,12537,854174,910173,544172,748184,600LiabilitiesCurrent liabilitiesBank indebtedness33,03533,81828,61727,132Trade and other payables23,65822,30924,48634,597Income taxes payable---1,584Total Current Liabilities56,69356,12753,10363,313Non-Current LiabilitiesProvisions1,5131,4541,4981,400Deferred income taxes2,1952,2362,1952,234Defined benefit plan obligation1,2392,6952,0483,323Total Non-Current Liabilities4,9476,3855,7416,95761,64062,51258,84470,270Shareholders' equityShare capital9,2189,2229,2229,222Retained earnings104,052101,810104,682105,108113,270111,032113,904114,330174,910173,544172,748184,600GOODFELLOW INC. Condensed Consolidated Statements of Cash Flows (in thousands of dollars) (unaudited)Three Months ended Feb 29Six Months ended Feb 292012201120122011$$$$Cash Flows Used From Operating ActivitiesNet Earnings(634)(1,685)255(726)Adjustments for :Depreciation7137661,4161,504Accretion expense on Provisions7271554Income tax expenses(284)(758)115(327)Interest expenses184210343473Funding in excess of pension plan of expenses(361)(346)(809)(628)(375)(1,786)1,335350Changes in non-cash working capital items(3,335)(5,708)(2,592)1,590Interest paid(274)(157)(402)(488)Income taxes paid(432)(1,342)(1,341)(3,843)(4,041)(7,207)(4,335)(2,741)Cash Flows Used By Financing Activities(Decrease) in bank loan2,00012,000(4,000)(1,000)Increase in banker's acceptances4,000(10,000)9,000-Redemption of shares(32)-(32)-Dividends paid--(857)(2,572)5,9682,0004,111(3,572)Cash Flows Used By Investing ActivitiesAcquisition of property, plant and equipment(157)(802)(472)(1,744)(157)(802)(472)(1,744)Net cash (outflow) inflow1,395(7,795)639(7,707)Cash position, beginning of period(10,163)(3,496)(9,407)(3,584)Cash position, end of period(8,768)(11,291)(8,768)(11,291)Cash position is comprised of :Cash and cash equivalents267527267527Bank overdraft(9,035)(11,818)(9,035)(11,818)(8,768)(11,291)(8,768)(11,291)GOODFELLOW INC. Condensed Consolidated Statements of Change in Shareholder's Equity (in thousands of dollars, except per share amounts) (unaudited)Share CapitalRetained EarningsTotal$$$Balance as at September 1, 20119,222104,682113,904Net earnings-255255Transactions with owners, recorded directly in equityDividends-(857)(857)Share repurchased(4)(28)(32)Balance as at February 29, 20129,218104,052113,270Share CapitalRetained Earnings Total$$$Balance as at September 1, 20109,222105,108114,330Net earnings-(726)(726)Transactions with owners, recorded directly in equityDividends-(2,572)(2,572)Balance as at February 28, 20119,222101,810111,032FOR FURTHER INFORMATION PLEASE CONTACT: Richard GoodfellowGoodfellow Inc.President and CEO(450) 635-6511(450) 635-3730 (FAX)info@goodfellowinc.com