DELSON, QUEBEC -- (Marketwire) -- 12/19/12 -- Goodfellow Inc. (TSX: GDL) announced today its financial results for the first quarter ended November 30, 2012. The Company generated net earnings of $0.7 million or $0.09 per share compared to net earnings of $0.9 million or $0.10 per share a year ago. Consolidated sales for the first quarter were $112.0 million compared to $106.0 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 first quarter decreased to $1.4 million from $1.7 million for the same period last year. Management's focus on growing sales growth was maintained and as such, consolidated sales grew 6% during the first quarter. Sales grew in most regions except BC and Ontario where demand from retailers and industrial projects declined compared to the first quarter a year ago. Our sales team focused its efforts on value-added lumber products in order to diversify our product mix in many areas of our business. On the operating side, direct, selling and administrative expenses increased 4.4% or $0.8 million due to increased production throughput and lease and rental increases.
"Our first quarter results although minimal in profit met expectations." said Richard Goodfellow, President and Chief Executive Officer. "Business conditions remain sluggish and very competitive. All efforts are being made to improve margins and control costs.
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 IncomeFor the First Quarter ended November 30, 2012 and 2011(in thousands of dollars, except per share amounts)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011---------------------------------------------------------------------------- $ $Sales 112,047 106,039----------------------------------------------------------------------------Expenses Cost of goods sold 90,899 85,571 Selling, administrative and general expenses 19,665 18,846 Net financial costs 442 334---------------------------------------------------------------------------- 111,006 104,751----------------------------------------------------------------------------Earnings before income taxes 1,041 1,288Income taxes 302 399----------------------------------------------------------------------------Net earnings, being comprehensive income 739 889----------------------------------------------------------------------------Earnings per share---------------------------------------------------------------------------- Basic and diluted 0.09 0.10----------------------------------------------------------------------------
