Goodfellow Inc.
TSX : GDL

Goodfellow Inc.

November 01, 2007 14:25 ET

Goodfellow Reports its Results for the 4th Quarter and Fiscal Year Ended August 31, 2007

DELSON, QUEBEC--(Marketwire - Nov. 1, 2007) - Goodfellow Inc. (TSX:GDL) announced today its sales and net income for fiscal year ended August 31, 2007. Consolidated sales reached $518.5 million compared to $517.6 million a year ago. Net income slightly decrease to $13.0 million or $1.53 per share compared to $13.1 million or $1.53 per share for the same period last year. These results include two non recurring items: first, the final net refund after tax of $3.5 million CAD related to the Softwood Lumber Agreement which entered into force on October 12, 2006, and secondly, a special charge of $420,000 net after tax representing the impact of the conversion of our pension plan (salaried and senior-salaried) from Defined Benefit to Defined Contribution plans as of June 1, 2007. Net income excluding these non recurring items was $10.0 million or $1.17 per share.

Consolidated sales for the fourth quarter ended August 31, 2007 increased to $149.1 million compared to $143.1 million for the same period last year. Net income for the fourth quarter of fiscal 2007 increased to $4.5 million or $0.53 per share compared to $4.1 million or $0.48 per share during the corresponding quarter a year ago. Sales conditions in general remained relatively stable considering the challenges presented with the strength of the Canadian dollar.

Goodfellow Inc. is one of eastern Canada's largest independent re-manufacturer and distributor of lumber and hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.



GOODFELLOW INC.
STATEMENT OF INCOME
(in thousands of dollars except earnings per share)
(Unaudited)

Twelve Months Three Months
Ended August 31 Ended August 31
2007 2006 2007 2006
$ $ $ $
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Sales 518,496 517,573 149,085 143,115
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Expenses
Cost of goods sold, selling,
administrative and
general expenses 499,014 493,136 141,004 135,822
Depreciation and amortization 2,271 2,076 616 547
Financial 2,833 2,775 790 765
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504,118 497,987 142,410 137,134
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Refund of Countervailing and
Anti-Dumping duties (5,357) - - -

Income before income taxes 19,735 19,586 6,675 5,981
Income taxes 6,687 6,529 2,181 1,835
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Net income 13,048 13,057 4,494 4,146
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Earnings per share 1.53 1.53 0.53 0.48
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Earnings per share diluted 1.53 1.53 0.53 0.48
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GOODFELLOW INC.
CONDENSED BALANCE SHEET
(in thousands of dollars)
(Unaudited)

As at August 31
2007 2006
$ $
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Current assets 141,106 133,513
Total assets 170,767 161,370
Current liabilities 68,234 65,929
Total liabilities 69,912 67,736
Shareholder's equity 100,855 93,634
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GOODFELLOW INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of dollars)
(unaudited)

Twelve Months Three Months
Ended August 31 Ended August 31
2007 2006 2007 2006
$ $ $ $
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Operating activities
Net income 13,048 13,057 4,494 4,146
Items not affecting cash
Depreciation and amortization 2,271 2,076 616 548
Excess of expense over pension plan
funding (pension plan funding over
expense) 101 273 (196) (261)
Gain on disposal of assets (34) - (34) -
Deferred income taxes (129) (373) (129) (373)
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15,257 15,033 4,751 4,060

Changes in non-cash operating working
capital balances
Decrease (increase) in accounts
receivable (7,415) 4,582 (3,053) 3,813
Decrease (increase) in inventories (1,288) (90) 23,180 18,278
Decrease (increase) in prepaid
expenses 357 (1,985) 2,014 (165)
Increase (decrease) in accounts
payable 3,515 (4,136) (526) (6,928)
Increase (decrease) in income taxes (1,151) 3,025 504 827
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9,275 16,429 26,870 19,885
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Financing activities
Dividends (5,992) (6,812) (2,576) (2,990)
Issuance of common shares 242 299 - -
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(5,750) (6,513) (2,576) (2,990)
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Investing activities
Acquisition of fixed assets (4,252) (2,142) (459) (195)
Disposal of fixed assets 110 30 110 -
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(4,142) (2,112) (349) (195)
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Foreign currency translation adjustment (77) (107) (20) (107)
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Net cash inflow (outflow) (694) 7,697 23,925 16,593
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Cash and cash equivalents, beginning
of period (34,858) (42,555) (59,477) (51,451)
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Cash and cash equivalents, end
of period (35,552) (34,858) (35,552) (34,858)
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