Goodfellow Reports its Results for the Fiscal Year Ended November 30, 2015 and Declares an Eligible Dividend

DELSON, QUEBEC--(Marketwired - Feb. 12, 2016) - Goodfellow Inc. (TSX:GDL) announced today its financial results for the twelve months ended November 30, 2015. The Company reported a net income of $8.6 million or $1.01 per share compared to $7.0 million or $0.82 per share for the twelve months comparative period a year ago. For the three months ended November 30, 2015, the Company reported net income of $2.0 million or $0.23 per share compared to $1.5 million or $0.18 per share a year ago. Consolidated sales for the twelve months ended November 30, 2015 were $539.0 million compared to $500.2 million for the twelve month comparable period last year. Consolidated sales for the three months ended November 30, 2015 were $135.2 million compared to $124.5 million last year. Sales in Canada during the twelve months of fiscal 2015 increased 6.4% compared to the same period a year ago mainly due to strong market presence, increased product offerings in all regions in Canada and the increased demand from our retail customers. Sales in the United States for the twelve months ended November, 2015 increased 20% on a converted basis when compared to the same period last year due to industrial glulam projects and a strong demand for hardwood lumber. On a non-converted basis, US denominated sales increased 4.2% compared to last year. Finally, Export sales increased 6% during the twelve months ended November 30, 2015 compared to the same period a year ago mainly due to increasing demand for hardwood and cedar lumber products in Asia and Europe. On the operating side, Selling, Administrative and General Expenses increased 6% compared to the corresponding period last year due to increased variable labour expenses, ramping up of value-added product inventory and increased non-recurring corporate expenses.

"Transition and change; these two words best summarize a very busy year. For sure we are happy with several aspects of our results. We have grown our sales to a record $539 million, nearly 8% more than last year. We have maintained gross margin level, kept expenses in check and improved our profitability significantly at $8.6 million; 24% more than the previous twelve months period." said Denis Fraser, President and Chief Executive Officer. "The most significant initiative though was by far the development and implementation of our new ERP system; the deployment of which is ongoing. This is an investment of over $4.0 million not counting the massive commitment of human resources required for the successful development of this very important tool. At maturity, this new system will deliver substantial productivity gains and better customer service. We are establishing a solid foundation to anchor our growth plans."

The Board of directors of Goodfellow Inc. declared an eligible dividend of $0.15 per share payable on March 11, 2016, to all shareholders of record as of February 26, 2016.

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.