/EINPresswire.com/ -- DELSON, QUEBEC -- (Marketwired) -- 04/14/16 -- This document corrects and replaces the press release that was sent April 08, 2016 at 12:19 PM ET

--  Currency translation adjustment of $146 thousand was reclassified to
    cost of goods sold impacting net income by $0.01 per share.
--  Investment of $3.0 million was reclassified to changes in non-cash
    working capital items as this was an inventory transaction.
--  Business acquisition net of cash acquired was corrected by an amount of
    $90 thousand and reclassified to changes in non-cash working capital.

Goodfellow Inc. (TSX: GDL) announced today its financial results for the three months ended February 29, 2016. The Company reported a net loss of $(0.9) million or $(0.11) per share compared to $(0.4) million or $(0.04) per share a year ago. Consolidated sales for the three months ended February 29, 2016 were $108.7 million compared to $98.1 million last year. Sales in Canada during the first quarter of fiscal 2016 increased 19% compared to the same period a year ago mainly due to increased volume of Pressure Treated Wood sales, the acquisition of Quality Hardwoods Ltd. and the introduction of new product lines. Although sales in the export market and the USA were short of expectation, we are optimistic with our ability to recapture lost volume in the coming months. On the operating side, Selling, Direct and Administrative costs increased 6.6% due to non-recurring added resources and expenses relating to our new ERP implementation and increased variables costs due to the added volumes and the acquisition of Quality Hardwoods Ltd. on December 30, 2015. As a result, direct, selling, and administrative expenses increased to $21.3 million ($20.0 million last year).

"Investing in our future - best summarizes the results of our first Quarter. We are pleased with our sales growth; our initiatives are delivering the expected results" said Denis Fraser, President and Chief Executive Officer. "Nevertheless, the resources invested in the deployment of the new ERP System, the start-up of the Joint Venture and the acquisition of Quality Hardwoods Ltd. impacted on results negatively. We remain confident to deliver the full value of these initiatives."

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 29, 2016 and February 28, 2015
(in thousands of dollars, except per share amounts)
Unaudited
----------------------------------------------------------------------------
                                                 For the three months ended
----------------------------------------------------------------------------
                                                February 29     February 28
                                                       2016            2015
----------------------------------------------------------------------------
                                                          $               $

Sales                                               108,659          98,097
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Expenses
  Cost of goods sold                                 87,979          78,077
  Selling, administrative and general
   expenses                                          21,303          19,989
  Net financial costs                                   635             534
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                                                    109,917          98,600
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Earnings before income taxes                         (1,258)           (503)

Income taxes                                           (352)           (146)

----------------------------------------------------------------------------
Net earnings                                           (906)           (357)
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Net earnings per share - Basic and diluted            (0.11)          (0.04)
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GOODFELLOW INC.
Consolidated Statements of Financial Position
(in thousands of dollars)

----------------------------------------------------------------------------
                                               As at       As at       As at
----------------------------------------------------------------------------
                                         February 29 November 30 February 28
                                                2016        2015        2015
                                         (Unaudited)   (Audited) (Unaudited)
----------------------------------------------------------------------------
                                                   $           $           $
Assets
Current Assets
  Cash                                         1,983         965         782
  Trade and other receivables                 86,494      65,670      65,829
  Income taxes receivable                          -           -         364
  Inventories                                131,676      97,665     119,714
  Prepaid expenses                             8,077       4,156       5,582
----------------------------------------------------------------------------
Total Current Assets                         228,230     168,456     192,271

Non-Current Assets
  Property, plant and equipment               39,388      36,146      36,744
  Intangible assets                            3,630       2,667           -
  Defined benefit plan asset                   4,937       4,812       1,840
  Investment in a joint venture                3,000           -           -
----------------------------------------------------------------------------
Total Non-Current Assets                      50,955      43,625      38,584
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Total Assets                                 279,185     212,081     230,855
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Liabilities
Current liabilities
  Bank indebtedness                           90,163      46,781      74,331
  Trade and other payables                    54,084      29,762      30,861
  Income taxes payable                           997       1,595           -
  Provision                                    1,112       1,112         952
  Current portion of long-term debt              208         113         247
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Total Current Liabilities                    146,564      79,363     106,391

Non-Current Liabilities
  Provision                                      490         477         486
  Long-term debt                                 219           -         688
  Deferred income taxes                        4,718       4,141       2,535
  Defined benefit plan obligation                  -           -       1,626
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Total Non-Current Liabilities                  5,427       4,618       5,335
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Total Liabilities                            151,991      83,981     111,726
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Shareholders' equity
  Share capital                                9,152       9,152       9,152
  Retained earnings                          118,042     118,948     109,977
----------------------------------------------------------------------------
                                             127,194     128,100     119,129
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Total Liabilities and Shareholders'
 Equity                                      279,185     212,081     230,855
----------------------------------------------------------------------------



GOODFELLOW INC.
Consolidated Statements of Cash Flows
For the three months ended February 29, 2016 and February 28, 2015
(in thousands of dollars)
(Unaudited)

----------------------------------------------------------------------------
                                                 For the three months ended
----------------------------------------------------------------------------
                                                 February 29    February 28
                                                        2016           2015
----------------------------------------------------------------------------
                                                           $              $

Operating Activities
  Net Earnings                                          (906)          (357)
  Adjustments for :
    Depreciation                                         798            731
    Accretion expense on provision                        13            (14)
    Income taxes                                        (352)          (146)
    Loss on disposal of property, plant and
     equipment                                             -             37
    Interest expense                                     434            344
    Funding in (excess) deficit of pension
     plan expense                                       (125)            57
----------------------------------------------------------------------------
                                                        (138)           652
----------------------------------------------------------------------------

  Changes in non-cash working capital items          (35,514)       (29,905)
  Interest paid                                         (656)          (364)
  Income taxes paid                                     (553)        (1,215)
----------------------------------------------------------------------------
                                                     (36,723)       (31,484)
----------------------------------------------------------------------------
Net Cash Flows from Operating Activities             (36,861)       (30,832)
----------------------------------------------------------------------------

Financing Activities
  Net increase in bank loans                          13,000          4,500
  Increase in banker's acceptances                    28,000         20,000
  Increase in long-term debt                             490             18
  Reimbursement of long-term debt                       (736)            (4)
----------------------------------------------------------------------------
                                                      40,754         24,514
----------------------------------------------------------------------------

Investing Activities
  Acquisition of property, plant and equipment          (366)          (506)
  Increase in intangible assets                         (683)             -
  Proceeds on disposal of property, plant and
   equipment                                               -             14
  Business acquisitions, net of cash acquired         (4,208)             -
----------------------------------------------------------------------------
                                                      (5,257)          (492)
----------------------------------------------------------------------------

Net cash outflow                                      (1,364)        (6,810)
Cash position, beginning of period                    (1,816)        (3,739)
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Cash position, end of period                          (3,180)       (10,549)
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Cash position is comprised of :
  Cash                                                 1,983            782
  Bank overdraft                                      (5,163)       (11,331)
----------------------------------------------------------------------------
                                                      (3,180)       (10,549)
----------------------------------------------------------------------------



GOODFELLOW INC.
Consolidated Statements of Change in Shareholders' Equity
For the three months ended February 29, 2016 and February 28, 2015
(in thousands of dollars)
(Unaudited)

----------------------------------------------------------------------------
                                               Share   Retained
                                             Capital   Earnings       Total
----------------------------------------------------------------------------
                                                   $          $           $

Balance as at November 30, 2014                9,152    110,334     119,486
----------------------------------------------------------------------------

  Net earnings                                     -       (357)       (357)

----------------------------------------------------------------------------
Total comprehensive income                     9,152    109,977     119,129
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Balance as at February 28, 2015                9,152    109,977     119,129
----------------------------------------------------------------------------


Balance as at November 30, 2015
 (Audited)                                     9,152    118,948     128,100
----------------------------------------------------------------------------

  Net earnings                                     -       (906)       (906)

----------------------------------------------------------------------------
Total comprehensive income                     9,152    118,042     127,194
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Balance as at February 29, 2016                9,152    118,042     127,194
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Contacts:
Goodfellow Inc.
Denis Fraser
President and CEO
450 635-6511
450 635-3730 (FAX)
info@goodfellowinc.com