Goodfellow Reports its Results for the Fiscal Year Ended August 31, 2013 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - Nov. 6, 2013) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the fiscal year ended August 31, 2013. The Company generated net earnings of $5.3 million or $0.62 per share compared to net earnings of $4.4 million or $0.51 per share a year ago. Consolidated sales for the fiscal year 2013 were $483.5 million compared to $500.7 million for the same period a year ago. Fiscal 2012-2013 main focus was on maintaining sales levels and restoring margin discipline. Our core lumber business performed well and was a major component of our gross margin improvements. During Fiscal 2013, lumber sales were positively impacted by the demand for hardwood lumber and our efforts to widen our distribution network in all of our traditional lumber markets.

For the fourth quarter of Fiscal 2013, the Company generated net income of $3.0 million or $0.35 per share compared to $2.5 million or $0.29 per share in the same quarter last year. Consolidated sales declined 10% to $137.8 million compared to $152.3 million for the same period a year ago.

"The 2012-2013 fiscal year was one that again yielded a slight improvement over the previous year but was far from our objectives and again overall not acceptable." said Richard Goodfellow, President and Chief Executive Officer. "We continue however to look for opportunities across the board and draw strength from our diverse product and geographic coverage".

The Board of Directors of Goodfellow Inc. declared an eligible dividend of $0.20 per share payable November 29, 2013, to all shareholders of record as of November 15, 2013.

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, 2013 and 2012 (in thousands of dollars, except per share amounts)
		2013	2012
		$	$
Sales		483,485	500,688
Expenses
	Cost of goods sold	393,553	413,501
	Selling, administrative and general expenses	80,675	79,330
	Net financial costs	1,943	1,794
		476,171	494,625
Earnings before income taxes		7,314	6,063
Income taxes		2,030	1,708
Net earnings, being comprehensive income		5,284	4,355
Earnings per share
	Basic and diluted	0.62	0.51

GOODFELLOW INC. Consolidated Statements of Financial Position As at August 31, 2013 and 2012 (in thousands of dollars)
		2013	2012
		$	$
Assets
Current Assets
	Cash and cash equivalents	197	707
	Trade and other receivables	72,838	83,083
	Inventories	74,255	63,736
	Prepaid expenses	3,433	3,474
Total Current Assets		150,723	151,000
Non-Current Assets
	Property, plant and equipment	35,422	35,743
	Defined benefit plan asset	1,981	1,545
Total Non-Current Assets		37,403	37,288
Total Assets		188,126	188,288
Liabilities
Current liabilities
	Bank indebtedness	34,169	37,157
	Trade and other payables	29,457	29,060
	Income taxes payable	744	22
	Current portion of long term debt	38	-
Total Current Liabilities		64,408	66,239
Non-Current Liabilities
	Provision	1,471	1,442
	Deferred income taxes	2,834	2,514
	Defined benefit plan obligation	972	2,057
	Long term debt	112	-
Total Non-Current Liabilities		5,389	6,013
Total Liabilities		69,797	72,252
Shareholders' equity
	Share capital	9,152	9,154
	Retained earnings	109,177	106,882
		118,329	116,036
Total Liabilities and Shareholders' Equity		188,126	188,288

GOODFELLOW INC. Consolidated Statements of Cash Flows Years ended August 31, 2013 and 2012 (in thousands of dollars)
			2013		2012
			$		$
Operating Activities
	Net Earnings		5,284		4,355
	Adjustments for :
		Depreciation	2,758		2,872
		Accretion expense on environmental provision	45		120
		Decrease in environmental provision	(16	)	(176	)
		Deferred income taxes	320		319
		Income tax expense	1,710		1,389
		Gain on disposal of property, plant and equipment	(65	)	-
		Interest expense	1,165		961
		Funding in excess of pension plan expense	(1,521	)	(1,536	)
			9,680		8,304
	Changes in non-cash working capital items		265		(14,180	)
	Interest paid		(1,135	)	(975	)
	Income taxes (recovered) paid		(988	)	2,341
			(1,858	)	(12,814	)
Net Cash Flows from (used in) Operating Activities			7,822		(4,510	)
Financing Activities
	Increase in bank loans		2,000		-
	(Decrease) Increase in banker's acceptances		(1,000	)	9,000
	Long term debt		150		-
	Redemption of shares		(14	)	(515	)
	Dividends paid		(2,977	)	(1,708	)
			(1,841	)	6,777
Investing Activities
	Acquisition of property, plant and equipment		(2,571	)	(1,310	)
	Proceeds on disposal of property, plant and equipment		68		-
			(2,503	)	(1,310	)
Net cash inflow			3,478		957
Cash position, beginning of year			(8,450	)	(9,407	)
Cash position, end of year			(4,972	)	(8,450	)
Cash position is comprised of :
	Cash and cash equivalents		197		707
	Bank overdraft		(5,169	)	(9,157	)
			(4,972	)	(8,450	)

GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity Years ended August 31, 2013 and 2012 (in thousands of dollars)
		Share Capital		Retained Earnings		Total
		$		$		$
Balance as at August 31, 2011		9,222		104,682		113,904
Net earnings		-		4,355		4,355
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(1,708	)	(1,708	)
	Repurchase of shares	(68	)	(447	)	(515	)
Balance as at August 31, 2012		9,154		106,882		116,036
Net earnings		-		5,284		5,284
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(2,977	)	(2,977	)
	Repurchase of Shares	(2	)	(12	)	(14	)
Balance as at August 31, 2013		9,152		109,177		118,329