DELSON, QUEBEC--(Marketwired - Apr 17, 2017) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the three months ended February 28, 2017. The Company reported a net loss of $(5.4) million or $(0.63) per share compared to $(0.9) million or $(0.11) per share a year ago. Consolidated sales for the three months ended February 28, 2017 were $113.5 million compared to $108.7 million last year. Sales in Canada during the first quarter of fiscal 2017 decreased 3% compared to the same period a year ago mainly due to a decrease in volume of Pressure Treated wood sales. On the other hand, sales in the export market and the USA increased by 61% and 63%, respectively, due to increasing demand of hardwood lumber products and we are optimistic with our ability to maintain the volumes in the coming months. On the operating side, Selling, Direct and Administrative costs decreased by 1.3%. The slight decrease shows actions taken to reduce overhead staff. The benefits of these costs cutting measures will start to appear in the second quarter of Fiscal 2017. As a result, direct, selling, and administrative expenses decreased to $21.0 million ($21.3 million last year).

"Moving in the right direction - best summarizes the results of our first Quarter. All measures are being taken to ensure the company returns to its historic profitable operating situation by year-end 2017" said Patrick Goodfellow, President and Chief Executive Officer. "Despite a difficult first quarter, we are confident that all measures taken should be well reflected by the end of the second quarter at the end of May. We remain confident to re-establish profitability short term".

Goodfellow Inc. is a distributor of lumber products, building materials, 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, 2017 and February 29, 2016
(in thousands of dollars, except per share amounts)
Unaudited
For the three months ended
February 28
2017		 February 29
2016
$ $
Sales113,490 108,659
Expenses
Cost of goods sold99,103 87,979
Selling, administrative and general expenses21,018 21,303
Net financial costs952 635
121,073 109,917
Earnings before income taxes(7,583) (1,258 )
Income taxes(2,182) (352 )
Total comprehensive loss(5,401) (906 )
Net loss per share - Basic and diluted(0.63) (0.11 )
GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)
Unaudited
As at As at As at
February 28 November 30 February 29
2017 2016 2016
$ $ $
Assets
Current Assets
Cash935 703 1,983
Trade and other receivables70,570 64,255 86,494
Income taxes receivable9,336 6,598 -
Inventories113,065 115,391 131,676
Prepaid expenses2,611 4,863 8,077
Total Current Assets196,517 191,810 228,230
Non-Current Assets
Property, plant and equipment38,085 38,693 39,388
Intangible assets5,347 5,428 3,630
Defined benefit plan asset2,240 2,234 4,937
Investment3,606 3,403 3,000
Total Non-Current Assets49,278 49,758 50,955
Total Assets245,795 241,568 279,185
Liabilities
Current liabilities
Bank indebtedness86,170 94,113 90,163
Trade and other payables48,332 30,721 54,084
Income taxes payable- - 997
Provision932 963 1,112
Current portion of long-term debt124 136 208
Total Current Liabilities135,558 125,933 146,564
Non-Current Liabilities
Provision488 475 490
Long-term debt95 126 219
Deferred income taxes3,296 3,296 4,718
Defined benefit plan obligation1,066 1,045 -
Total Non-Current Liabilities4,945 4,942 5,427
Total Liabilities140,503 130,875 151,991
Shareholders' equity
Share capital9,152 9,152 9,152
Retained earnings96,140 101,541 118,042
105,292 110,693 127,194
Total Liabilities and Shareholders' Equity245,795 241,568 279,185
GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 28, 2017 and February 29, 2016
(in thousands of dollars)
Unaudited
For the three months ended
February 28
2017		 February 29
2016
$ $
Operating Activities
Net Earnings(5,401) (906 )
Adjustments for :
Depreciation949 798
Accretion expense on provision12 13
Decrease in provision(30) -
Income taxes(2,182) (352 )
Loss on disposal of property, plant and equipment12 -
Interest expense692 434
Funding in deficit (excess) of pension plan expense16 (125 )
Share of the profits of a joint venture(203) -
(6,135) (138 )
Changes in non-cash working capital items15,867 (35,514 )
Interest paid(685) (656 )
Income taxes paid(556) (553 )
14,626 (36,723 )
Net Cash Flows from Operating Activities8,491 (36,861 )
Financing Activities
Net (decrease) increase in bank loans(11,000) 13,000
Net increase in banker's acceptances- 28,000
Increase in long-term debt- 490
Reimbursement of long-term debt(43) (736 )
(11,043) 40,754
Investing Activities
Acquisition of property, plant and equipment(210) (366 )
Increase in intangible assets(89) (683 )
Proceeds on disposal of property, plant and equipment26 -
Business acquisitions, net of cash acquired- (4,208 )
(273) (5,257 )
Net cash outflow(2,825) (1,364 )
Cash position, beginning of period(1,910) (1,816 )
Cash position, end of period(4,735) (3,180 )
Cash position is comprised of :
Cash935 1,983
Bank overdraft(5,670) (5,163 )
(4,735) (3,180 )
GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the three months ended February 28, 2017 and February 29, 2016
(in thousands of dollars)
Unaudited
Share
Capital		Retained
Earnings
Total
$ $ $
Balance as at November 30, 2015 (Audited) 9,152 118,948 128,100
Net loss - (906 ) (906 )
Total comprehensive loss - (906 ) (906 )
Balance as at February 29, 2016 9,152 118,042 127,194
Balance as at November 30, 2016 (Audited)9,152101,541110,693
Net loss-(5,401)(5,401)
Total comprehensive loss-(5,401)(5,401)
Balance as at February 28, 20179,15296,140105,292