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Press release from Marketwire

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

Wednesday, November 07, 2012

Goodfellow Reports its Results for the Fiscal Year Ended August 31, 2012 and Declares an Eligible Dividend14:27 EST Wednesday, November 07, 2012DELSON, 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)20122011$$Sales500,688466,809ExpensesCost of goods sold413,501379,839Selling, administrative and general expenses79,33081,082Net financial costs1,7941,657494,625462,578Earnings before income taxes6,0634,231Income taxes1,7081,228Net earnings, being comprehensive income4,3553,003Earnings per shareBasic and diluted0.510.35GOODFELLOW INC. Consolidated Statements of Financial Position As at August 31, 2012, 2011 and September 1, 2010 (in thousands of dollars)201220112010$$$AssetsCurrent AssetsCash and cash equivalents707210548Trade and other receivables83,08371,28481,184Income taxes recoverable-3,708-Inventories63,73658,72263,367Prepaid expenses3,4741,6991,647Total Current Assets151,000135,623146,746Non-Current AssetsProperty, plant and equipment35,74337,12537,854186,743172,748184,600LiabilitiesCurrent liabilitiesBank indebtedness37,15728,61727,132Trade and other payables29,06024,48634,597Income taxes payable22-1,584Total Current Liabilities66,23953,10363,313Non-Current LiabilitiesProvisions1,4421,4981,400Deferred income taxes2,5142,1952,234Defined benefit plan obligation5122,0483,323Total Non-Current Liabilities4,4685,7416,95770,70758,84470,270Shareholders' equityShare capital9,1549,2229,222Retained earnings106,882104,682105,108116,036113,904114,330186,743172,748184,600GOODFELLOW INC. Consolidated Statements of Cash Flows Years ended August 31, 2012 and 2011 (in thousands of dollars)20122011$$Cash Flows Used in Operating ActivitiesNet Earnings4,3553,003Adjustments for :Depreciation2,8723,089Accretion expense on environmental provision12098Decrease in environmental provision(176)-Deferred income taxes319(39)Income tax expense1,3891,267Gain on disposal of property, plant and equipment-(118)Interest expense9611,053Funding in excess of pension plan expense(1,536)(1,275)8,3047,078Changes in non-cash working capital items(14,180)4,400Interest paid(975)(1,033)Income taxes paid (recovered)2,341(6,559)(12,814)(3,192)Cash Flows From (Used In) Financing ActivitiesDecrease in bank loans-(4,000)Increase in banker's acceptances9,000-Redemption of shares(515)-Dividends paid(1,708)(3,429)6,777(7,429)Cash Flows Used In Investing ActivitiesAcquisition of property, plant and equipment(1,310)(2,448)Proceeds on disposal of property, plant and equipment-168(1,310)(2,280)Net cash inflow (outflow)957(5,823)Cash position, beginning of year(9,407)(3,584)Cash position, end of year(8,450)(9,407)Cash position is comprised of :Cash and cash equivalents707210Bank overdraft(9,157)(9,617)(8,450)(9,407)GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity Years ended August 31, 2012 and 2011 (in thousands of dollar) Share Capital Retained Earnings Total$$$Balance as at September 1, 20109,222105,108114,330Net earnings-3,0033,003Transactions with owners, recorded directly in shareholders' equityDividends-(3,429)(3,429)Balance as at August 31, 20119,222104,682113,904Net earnings-4,3554,355Transactions with owners, recorded directly in shareholders' equityDividends-(1,708)(1,708)Redemption of Shares(68)(447)(515)Balance as at August 31, 20129,154106,882116,036FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Goodfellow Inc.Richard GoodfellowPresident and CEO450 635-6511450 635-3730 (FAX)info@goodfellowinc.com