Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2015 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - Feb. 12, 2016) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the twelve months ended November 30, 2015. The Company reported a net income of $8.6 million or $1.01 per share compared to $7.0 million or $0.82 per share for the twelve months comparative period a year ago. For the three months ended November 30, 2015, the Company reported net income of $2.0 million or $0.23 per share compared to $1.5 million or $0.18 per share a year ago. Consolidated sales for the twelve months ended November 30, 2015 were $539.0 million compared to $500.2 million for the twelve month comparable period last year. Consolidated sales for the three months ended November 30, 2015 were $135.2 million compared to $124.5 million last year. Sales in Canada during the twelve months of fiscal 2015 increased 6.4% compared to the same period a year ago mainly due to strong market presence, increased product offerings in all regions in Canada and the increased demand from our retail customers. Sales in the United States for the twelve months ended November, 2015 increased 20% on a converted basis when compared to the same period last year due to industrial glulam projects and a strong demand for hardwood lumber. On a non-converted basis, US denominated sales increased 4.2% compared to last year. Finally, Export sales increased 6% during the twelve months ended November 30, 2015 compared to the same period a year ago mainly due to increasing demand for hardwood and cedar lumber products in Asia and Europe. On the operating side, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased variable labour expenses, ramping up of value-added product inventory and increased non-recurring corporate expenses.

"Transition and change; these two words best summarize a very busy year. For sure we are happy with several aspects of our results. We have grown our sales to a record $539 million, nearly 8% more than last year. We have maintained gross margin level, kept expenses in check and improved our profitability significantly at $8.6 million; 24% more than the previous twelve months period." said Denis Fraser, President and Chief Executive Officer. "The most significant initiative though was by far the development and implementation of our new ERP system; the deployment of which is ongoing. This is an investment of over $4.0 million not counting the massive commitment of human resources required for the successful development of this very important tool. At maturity, this new system will deliver substantial productivity gains and better customer service. We are establishing a solid foundation to anchor our growth plans."

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable on March 11, 2016, to all shareholders of record as of February 26, 2016.

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 twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars, except per share amounts)
		November 30, 2015	November 30, 2014
		(12 months)	(15 months)
		$	$
Sales		538,975	610,587
Expenses
	Cost of goods sold	437,776	495,886
	Selling, administrative and general expenses	86,743	100,749
	Net financial costs	2,582	2,824
		527,101	599,459
Earnings before income taxes		11,874	11,128
Income taxes		3,252	3,003
Net earnings		8,622	8,125
Items that will not subsequently be reclassified to net earnings
Remeasurement of defined benefit plan obligation (asset),net of taxes of $1,099 (2014 - recovery of $101)		2,969	(248	)
Total comprehensive income		11,591	7,877
Net earnings per share - Basic and diluted		1.01	0.96

GOODFELLOW INC.
Consolidated Statements of Financial Position (audited)
(in thousands of dollars)
		As at	As at
		November 30,	November 30,
		2015	2014
		$	$
Assets
Current Assets
	Cash	965	860
	Trade and other receivables	65,670	60,591
	Inventories	97,665	92,257
	Prepaid expenses	4,156	3,271
Total Current Assets		168,456	156,979
Non-Current Assets
	Property, plant and equipment	36,146	36,779
	Intangible assets	2,667	241
	Defined benefit plan asset	4,812	1,848
Total Non-Current Assets		43,625	38,868
Total Assets		212,081	195,847
Liabilities
Current liabilities
	Bank indebtedness	46,781	43,099
	Trade and other payables	29,762	25,779
	Income taxes payable	1,595	997
	Provision	1,112	979
	Current portion of long-term debt	113	229
Total Current Liabilities		79,363	71,083
Non-Current Liabilities
	Provision	477	473
	Long-term-debt	-	692
	Deferred income taxes	4,141	2,535
	Defined benefit plan obligation	-	1,578
Total Non-Current Liabilities		4,618	5,278
Total Liabilities		83,981	76,361
Shareholders' equity
	Share capital	9,152	9,152
	Retained earnings	118,948	110,334
		128,100	119,486
Total Liabilities and Shareholders' Equity		212,081	195,847

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars)
			November 30, 2015		November 30, 2014
			(12 months)		(15 months)
			$		$
Operating Activities
	Net Earnings		8,622		8,125
	Adjustments for :
		Depreciation	3,026		3,611
		Accretion expense on provision	53		57
		Increase (decrease) in provision	84		(76	)
		Income taxes	3,252		3,003
		Gain on disposal of property, plant and equipment	(26	)	(14	)
		Interest expense	1,555		1,766
		Funding in excess of pension plan expense	(474	)	(1,244	)
			16,092		15,228
	Changes in non-cash working capital items		(7,859	)	(9,260	)
	Interest paid		(1,659	)	(1,785	)
	Income taxes paid		(2,146	)	(2,506	)
			(11,664	)	(13,551	)
Net Cash Flows from Operating Activities			4,428		1,677
Financing Activities
	Net increase (decrease) in bank loans		5,500		(7,500	)
	Increase in banker's acceptances		-		17,000
	Increase in long-term debt		51		909
	Reimbursement of long-term debt		(858	)	(138	)
	Dividends paid		(2,977	)	(5,529	)
			1,716		4,742
Investing Activities
	Acquisition of property, plant and equipment		(2,101	)	(5,223	)
	Increase in intangible assets		(2,216	)	(17	)
	Proceeds on disposal of property, plant and equipment		96		54
			(4,221	)	(5,186	)
Net cash inflow			1,923		1,233
Cash position, beginning of year			(3,739	)	(4,972	)
Cash position, end of year			(1,816	)	(3,739	)
Cash position is comprised of :
	Cash		965		860
	Bank overdraft		(2,781	)	(4,599	)
			(1,816	)	(3,739	)

GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the twelve months ended November 30, 2015 and fifteen months ended November 30, 2014 (audited)
(in thousands of dollars)
		Share Capital	Retained Earnings		Total
		$	$		$
Balance as at August 31, 2013		9,152	107,986		117,138
	Net earnings	-	8,125		8,125
	Other comprehensive loss (net of taxes $101)	-	(248	)	(248	)
Total Comprehensive income		-	7,877		7,877
Transactions with owners of the Company
	Dividends	-	(5,529	)	(5,529	)
Balance as at November 30, 2014		9,152	110,334		119,486
	Net earnings	-	8,622		8,622
	Other comprehensive income (net of taxes $1,099)	-	2,969		2,969
Total Comprehensive income		-	11,591		11,591
Transactions with owners of the Company
	Dividends	-	(2,977	)	(2,977	)
Balance as at November 30, 2015		9,152	118,948		128,100