DELSON, QUEBEC--(Marketwired - April 14, 2015) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2015. The Company reported a net loss of $(0.4) million or $(0.04) per share compared to $(0.3) million or $(0.04) per share a year ago. Consolidated sales for the three months ended February 28, 2015 were $98.1 million compared to $95.4 million last year. Sales in Canada during the first quarter of fiscal 2015 remained stable increasing 0.3% compared to the same period a year ago mainly due to improved market presence in Western Canada, and changes in distribution agreements with retailer's customers group. Sales in the United States for the first quarter ended February 28, 2015 increased 25% 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. Finally, Export sales increased 6% during the first quarter 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, variable costs increased slightly due to ramping up of value-added product inventory and increased energy costs related to the cold winter conditions. As a result, direct, selling, and administrative expenses increased to $20.0 million ($18.7 million last year).

"The first quarter is largely an unfulfilled promise. All analysts and industry observers were claiming the return of the good times in the later part of 2014. The combined impact of a soft Canadian dollar and the expectation of substantial economic growth in the USA suggested this was a reasonable scenario. The reality fell short of expectations. A rather difficult winter - extreme cold or lots of snow - certainly had its impact" said Denis Fraser, President and Chief Executive Officer. "Amidst the turmoil we have our share of good stories. Our efforts to get back on track in Ottawa are paying off with over 25% sales increase. International sales are up nearly 6% and our US sales are also very strong posting growth of 20 to 30%. The hardwood division continues to do very well, leveraging the assets acquired in Drummondville last year. We have opened a new branch in Saskatoon which promises a much better penetration of this market. We have solid plans in place to assure substantial growth in 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 ended February 28, 2015 and 2014
(in thousands of dollars, except per share amounts)
(Unaudited)
		For the three months ended
		February 28 2015		February 28 2014
		$		$
Sales		98,097		95,355
Expenses
	Cost of goods sold	78,077		76,631
	Selling, administrative and general expenses	19,989		18,696
	Net financial costs	534		418
		98,600		95,745
Earnings before income taxes		(503	)	(390	)
Income taxes		(146	)	(113	)
Net earnings, being comprehensive income		(357	)	(277	)
Earnings per share
	Basic and diluted	(0.04	)	(0.04	)

GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
		As at	As at	As at
		February 28 2015 Unaudited	November 30 2014 Audited	February 28 2014 Unaudited
		$	$	$
Assets
Current Assets
	Cash and cash equivalents	782	860	234
	Trade and other receivables	65,829	60,591	56,651
	Income taxes receivable	364	-	37
	Inventories	119,714	92,257	95,447
	Prepaid expenses	5,582	3,271	3,189
Total Current Assets		192,271	156,979	155,558
Non-Current Assets
	Property, plant and equipment	36,744	37,020	38,095
	Defined benefit plan asset	1,840	1,848	1,374
Total Non-Current Assets		38,584	38,868	39,469
Total Assets		230,855	195,847	195,027
Liabilities
Current liabilities
	Bank indebtedness	74,331	43,099	44,041
	Trade and other payables	30,861	25,779	28,725
	Income taxes payable	-	997	-
	Provision	952	979	-
	Current portion of long term debt	247	229	219
Total Current Liabilities		106,391	71,083	72,985
Non-Current Liabilities
	Provision	486	473	1,490
	Long term debt	688	692	840
	Deferred income taxes	2,535	2,535	2,393
	Defined benefit plan obligation	1,626	1,578	993
Total Non-Current Liabilities		5,335	5,278	5,716
Total Liabilities		111,726	76,361	78,701
Shareholders' equity
	Share capital	9,152	9,152	9,152
	Retained earnings	109,977	110,334	107,174
		119,129	119,486	116,326
Total Liabilities and Shareholders' Equity		230,855	195,847	195,027

GOODFELLOW INC.
Consolidated Statements of Cash Flows
(in thousands of dollars)
(Unaudited)
			For the three months ended
			February 28 2015		February 28 2014
			$		$
Operating Activities
	Net Earnings		(357	)	(277	)
	Adjustments for :
		Depreciation	731		644
		Accretion expense on environmental provision	(14	)	12
		Income tax expense	(146	)	(113	)
		Loss on disposal of property, plant and equipment	37		-
		Interest expense	344		230
		Funding in deficit (excess) of pension plan expense	57		(453	)
			652		43
	Changes in non-cash working capital items		(29,905	)	(10,031	)
	Interest paid		(364	)	(352	)
	Income taxes paid		(1,215	)	(463	)
			(31,484	)	(10,846	)
Net Cash Flows from Operating Activities			(30,832	)	(10,803	)
Financing Activities
	Increase in bank loans		4,500		14,000
	Increase in banker's acceptances		20,000		1,000
	Long term debt		14		909
			24,514		15,909
Investing Activities
	Acquisition of property, plant and equipment		(506	)	(3,594	)
	Proceeds on disposal of property, plant and equipment		14		-
			(492	)	(3,594	)
Net cash (outflow) inflow			(6,810	)	1,512
Cash position, beginning of year			(3,739	)	(8,319	)
Cash position, end of year			(10,549	)	(6,807	)
Cash position is comprised of :
	Cash and cash equivalents		782		234
	Bank overdraft		(11,331	)	(7,041	)
			(10,549	)	(6,807	)

GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
(in thousands of dollars)
(Unaudited)
		Share Capital	Retained Earnings		Total
		$	$		$
Balance as at November 30, 2013		9,152	107,451		116,603
	Net earnings	-	(277	)	(277	)
Total Comprehensive income		9,152	107,174		116,326
Transactions with owners, recorded directly in shareholders' equity		-	-		-
Balance as at February 28, 2014		9,152	107,174		116,326
Balance as at November 30, 2014 (audited)		9,152	110,334		119,486
	Net earnings	-	(357	)	(357	)
Total Comprehensive income		9,152	109,977		119,129
Transactions with owners, recorded directly in shareholders' equity		-	-		-
Balance as at February 28, 2015		9,152	109,977		119,129