Goodfellow Reports its Results for the Second Quarter Ended May 31, 2015 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - July 8, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the six months ended May 31, 2015. The Company reported a net income of $2.9 million or $0.34 per share compared to $1.8 million or $0.21 per share a year ago. For the three months ended May 31, 2015, the Company reported net income of $3.2 million or $0.38 per share compared to $2.1 million or $0.25 per share a year ago. Consolidated sales for the six months ended May 31, 2015 were $252.1 million compared to $229.4 million last year. Consolidated sales for the three months ended May 31, 2015 were $154.0 million compared to $134.0 million last year. Sales in Canada during the first six months of fiscal 2015 increased 8.8% compared to the same period a year ago mainly due to a strong second quarter from all sales groups and regions. Sales in the United States for the first six months ended May 31, 2015 increased 21% on a Canadian dollar basis compared to the same period last year due to the increased market presence and increased demand for our value-added product lines. On a non-converted basis, US denominated sales increased 9% compared to last year. Finally, Export sales increased 8% during the first six months of fiscal 2015 compared to the same period a year ago mainly due to increasing demand for value added products in Asia and Europe mitigated by a decrease in the United Kingdom region. On the operating side, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased production output of value-added products, increased selling expenses related to the improved sales performance and increased administration expenses linked with the Saskatoon branch opening.

"With sales up nearly 15% on the quarter and net income up 56% over last year we are happy with our progress so far" said Denis Fraser, President and Chief Executive Officer. "We remain optimistic that we will achieve our sales and financial goals for the year."

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable August 14, 2015, to all shareholders of record as of July 31, 2015.

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 three months and six months ended May 31, 2015 and 2014
(in thousands of dollars, except per share amounts)
(Unaudited)
		For the three months ended		For the six months ended
		May 31 2015	May 31 2014	May 31 2015	May 31 2014
		$	$	$	$
Sales		153,975	134,035	252,072	229,390
Expenses
	Cost of goods sold (Note 4)	126,325	109,310	204,402	185,941
	Selling, administrative and general expenses (Note 4)	22,362	21,231	42,351	39,927
	Net financial costs	713	567	1,247	985
		149,400	131,108	248,000	226,853
Earnings before income taxes		4,575	2,927	4,072	2,537
Income taxes		1,327	849	1,181	736
Net earnings, being comprehensive income		3,248	2,078	2,891	1,801
Earnings per share
	Basic and diluted	0.38	0.25	0.34	0.21

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
		As at	As at	As at
		May 31	November 30	May 31
		2015	2014	2014
		(Unaudited)	(Audited)	(Unaudited)
		$	$	$
Assets
Current Assets
	Cash and cash equivalents	494	860	394
	Trade and other receivables (Note 6)	98,708	60,591	86,380
	Inventories	107,384	92,257	102,153
	Prepaid expenses	2,852	3,271	5,014
Total Current Assets		209,438	156,979	193,941
Non-Current Assets
	Property, plant and equipment	36,626	37,020	37,807
	Defined benefit plan asset	1,832	1,848	1,531
Total Non-Current Assets		38,458	38,868	39,338
Total Assets		247,896	195,847	233,279
Liabilities
Current liabilities
	Bank indebtedness (Note 5)	66,227	43,099	76,326
	Trade and other payables (Note 11)	52,876	25,779	32,522
	Income taxes payable	679	997	359
	Provision	941	979	-
	Current portion of long term debt (Note 5)	50	229	216
Total Current Liabilities		120,773	71,083	109,423
Non-Current Liabilities
	Provision	499	473	1,502
	Long term debt (Note 5)	37	692	769
	Deferred income taxes	2,535	2,535	2,393
	Defined benefit plan obligation	1,675	1,578	788
Total Non-Current Liabilities		4,746	5,278	5,452
Total Liabilities		125,519	76,361	114,875
Shareholders' equity
	Share capital	9,152	9,152	9,152
	Retained earnings	113,225	110,334	109,252
		122,377	119,486	118,404
Total Liabilities and Shareholders' Equity		247,896	195,847	233,279

GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months and six months ended May 31, 2015 and 2014
(in thousands of dollars)
(Unaudited)
			For the three months ended				For the six months ended
			May 31		May 31		May 31		May 31
			2015		2014		2015		2014
			$		$		$		$
Operating Activities
	Net Earnings		3,248		2,078		2,891		1,801
	Adjustments for :
		Depreciation	746		765		1,477		1,409
		Accretion expense on environmental provision	3		11		(11	)	23
		(Gain) Loss on disposal of property, plant and
		equipment	(21	)	-		16		-
		Income tax expense	1,327		849		1,181		736
		Interest expense	463		397		807		627
		Funding in deficit (excess) of pension plan expense	56		(362	)	113		(815	)
			5,822		3,738		6,474		3,781
	Changes in non-cash working capital items (Note 14)		4,134		(34,442	)	(25,771	)	(44,473	)
	Interest paid		(401	)	(417	)	(765	)	(769	)
	Income taxes paid		(284	)	(453	)	(1,499	)	(916	)
			3,449		(35,312	)	(28,035	)	(46,158	)
Net Cash Flows from Operating Activities			9,271		(31,574	)	(21,561	)	(42,377	)
Financing Activities
	(Decrease) Increase in bank loans		(6,000	)	(9,800	)	(1,500	)	4,200
	Increase in banker's acceptances		2,000		40,000		22,000		41,000
	Long term debt		(847	)	(74	)	(833	)	835
			(4,847	)	30,126		19,667		46,035
Investing Activities
	Acquisition of property, plant and equipment		(611	)	(477	)	(1,117	)	(4,071	)
	Proceeds on disposal of property, plant and equipment		3		-		17		-
			(608	)	(477	)	(1,100	)	(4,071	)
Net cash inflow (outflow)			3,816		(1,925	)	(2,994	)	(413	)
Cash position, beginning of period			(10,549	)	(6,807	)	(3,739	)	(8,319	)
Cash position, end of period			(6,733	)	(8,732	)	(6,733	)	(8 732	)
Cash position is comprised of :
	Cash and cash equivalents		494		394		494		394
	Bank overdraft (Note 5)		(7,227	)	(9,126	)	(7,227	)	(9,126	)
			(6,733	)	(8,732	)	(6,733	)	(8,732	)

GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity For the six months ended May 31, 2015 and 2014
(in thousands of dollars)
(Unaudited)
		Share Capital	Retained Earnings	Total
		$	$	$
Balance as at November 30, 2013		9,152	107,451	116,603
	Net earnings	-	1,801	1,801
Total Comprehensive income		9,152	109,252	118,404
Transactions with owners, recorded directly in shareholders' equity		-	-	-
Balance as at May 31, 2014		9,152	109,252	118,404
Balance as at November 30, 2014 (Audited)		9,152	110,334	119,486
	Net earnings	-	2,891	2,891
Total Comprehensive income		9,152	113,225	122,377
Transactions with owners, recorded directly in shareholders' equity		-	-	-
Balance as at May 31, 2015		9,152	113,225	122,377