DELSON, QUEBEC--(Marketwire - Dec. 19, 2012) - 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 Income For 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	1,288
Income taxes		302	399
Net earnings, being comprehensive income		739	889
Earnings per share
	Basic and diluted	0.09	0.10

GOODFELLOW INC. Consolidated Statements of Financial Position As at November 30, 2012 and 2011 (in thousands of dollars)
		2012	2011
		$	$
Assets
Current Assets
	Cash and cash equivalents	398	328
	Trade and other receivables	56,196	55,689
	Income taxes recoverable	-	4,217
	Inventories	79,513	72,339
	Prepaid expenses	2,010	3,314
Total Current Assets		138,117	135,887
Non-Current Assets
	Property, plant and equipment	36,376	36,737
		174,493	172,624
Liabilities
Current liabilities
	Bank indebtedness	28,886	28,491
	Trade and other payables	26,140	24,896
	Income taxes payable	9	-
Total Current Liabilities		55,035	53,387
Non-Current Liabilities
	Provisions	1,449	1,506
	Deferred income taxes	2,514	2,195
	Defined benefit plan obligation	9	1,600
Total Non-Current Liabilities		3,972	5,301
		59,007	58,688
Shareholders' equity
	Share capital	9,152	9,222
	Retained earnings	106,334	104,714
		115,486	113,936
		174,493	172,624

GOODFELLOW INC. Consolidated Statements of Cash Flows For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollars)
			2012		2011
			$		$
Cash Flows Used in Operating Activities
	Net Earnings		739		889
	Adjustments for :
		Depreciation	661		703
		Accretion expense on environmental provision	7		8
		Income tax expense	302		399
		Interest expense	215		159
		Funding in excess of pension plan expense	(503	)	(448	)
			1,421		1,710
	Changes in non-cash working capital items		9,631		743
	Interest paid		(193	)	(129	)
	Income taxes paid		(314	)	(908	)
			9,124		(294	)
Cash Flows From (Used In) Financing Activities
	Decrease in bank loans		(6,000	)	(6,000	)
	Increase in banker's acceptances		1,000		5,000
	Redemption of shares		(14	)	-
	Dividends paid		(1,275	)	(857	)
			(6,289	)	(1,857	)
Cash Flows Used In Investing Activities
	Acquisition of property, plant and equipment		(1,294	)	(315	)
			(1,294	)	(315	)
Net cash inflow (outflow)			2,962		(756	)
Cash position, beginning of year			(8,450	)	(9,407	)
Cash position, end of year			(5,488	)	(10,163	)
Cash position is comprised of :
	Cash and cash equivalents		398		328
	Bank overdraft		(5,886	)	(10,491	)
			(5,488	)	(10,163	)

GOODFELLOW INC. Consolidated Statements of Change in Shareholders' Equity For the First Quarter ended November 30, 2012 and 2011 (in thousands of dollar)
		Share Capital		Retained Earnings		Total
		$		$		$
Balance as at August 31, 2011		9,222		104,682		113,904
Net earnings		-		889		889
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(857	)	(857	)
Balance as at November 30, 2011		9,222		104,714		113,936
Balance as at August 31, 2012		9,154		106,882		116,036
Net earnings		-		739		739
Transactions with owners, recorded directly in shareholders' equity
	Dividends	-		(1,275	)	(1,275	)
	Redemption of Shares	(2	)	(12	)	(14	)
Balance as at November 30, 2012		9,152		106,334		115,486