/EINPresswire.com/ -- Gendis Inc. (TSX: GDS) today announced its financial results for the 2^nd quarter ended July 31, 2016.

Revenue for the 2^nd quarter was $1,316,000 compared to $1,379,000 for the 2^nd quarter last year. Revenue less expense for the 2^nd quarter was $336,000 compared to $153,000 for the 2^nd quarter last year. Net income for the 2^nd quarter was $6,648,000 ($0.51 per share) compared to a net loss $5,783,000 ($0.45 per share) for the 2^nd quarter last year.

Revenue year-to-date was $2,543,000 compared to $2,875,000 year-to-date last year. Revenue less expense year-to-date was $635,000 compared to $545,000 year-to-date last year. Net income year-to-date was $7,827,000 ($0.61 per share) compared to a net loss of $3,845,000 ($0.30 per share) year-to-date last year.

The volatility in net income quarter over quarter and year over year is primarily due to the change in fair value of security investments, primarily Veresen and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

			Quarter ended				YTD ended
in millions of Canadian dollars			Jul 31		Jul 31		Jul 31		Jul 31
except per share			2016		2015		2016		2015
Revenue
	Lease rental revenue		0.8		0.9		1.5		1.8
	Dividends		0.5		0.5		1.0		1.1
Total revenue			1.3		1.4		2.5		2.9
Expense
	Property		0.6		0.8		1.1		1.5
	Administration & finance		0.3		0.4		0.8		0.8
Total expense			0.9		1.2		1.9		2.3
Total revenue less total expense			0.4		0.2		0.6		0.5
Fair value change:
	Veresen		3.8		(6.6)		6.0		(2.5)
	Osum		-		(0.6)		-		(0.6)
	Other investments in securities		0.5		(0.6)		0.4		(0.6)
	Investment properties		2.0		0.4		0.8		(1.4)
Total fair value change			6.3		(7.4)		7.2		(5.1)
Income tax (expense) recovery			-		1.4		-		0.7
Net income (loss)			6.7		(5.8)		7.8		(3.8)
Net income(loss) per share			$0.52		$(0.45)		$0.61		$(0.30)

			Jul 31		Jan 31		Jul 31
in millions of Canadian dollars			2016		2016		2015
Fair value of investments:
	Veresen		21.9		16.0		29.6
	Osum		4.7		4.8		5.6
	Other investment in securities		3.3		2.7		3.7
	Investment properties		30.9		30.1		29.4
Other assets			1.2		1.8		1.4
Debt & payables			6.6		7.2		7.3
Deferred tax payable			-		-		0.1
Shareholders' equity			55.4		48.2		62.3

			Quarter ended						Year to date ended
			Jul 31			Jul 31			Jul 31			Jul 31
in millions of Canadian dollars			2016			2015			2016			2015
Cash flow from:
Operations
	Cash receipts		1.4			1.1			2.7			2.9
	Cash disbursements & finance expense		(1.5	)		(1.4	)		(2.3	)		(3.0	)
	Income taxes recovered (paid)		-			-			0.6			(0.2	)
Investing
	Proceeds on sale of investment in securities		-			0.1			-			0.1
	Acquisition of investments		-			-			-			-
	Expenditures on investment properties		-			(0.2	)		-			(0.3	)
Financing
	Increase (decrease) in debt		0.5			1.2			(0.4	)		1.6
	Purchase of share capital for cancellation		-			(0.4	)		-			(0.6	)
	Dividends paid		(0.3	)		(0.3	)		(0.6	)		(0.6	)

GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
			Jul 31		Jan 31		Jul 31
(unaudited - thousands of Canadian dollars)			2016		2016		2015
ASSETS
Current assets
	Cash		64		110		82
	Income tax recoverable		-		800		-
	Receivables		884		638		989
Total current assets			948		1,548		1,071
Non-current assets
	Investment in securities (note 2)		29,869		23,461		38,912
	Investment properties		30,940		30,130		29,437
	Furnishings and equipment		164		170		190
	Deferred income tax asset		32		136		-
Total non-current assets			61,035		53,897		68,539
Total assets			61,953		55,445		69,610
LIABILITIES
Current liabilities
	Credit facilities (note 3)		4,698		5,098		5,196
	Payables		874		1,151		1,100
Total current liabilities			5,572		6,249		6,296
Non-current liabilities
	Post employment benefit obligation		951		951		1,012
	Deferred income tax payable		-		-		50
Total non-current liabilities			951		951		1,062
Total liabilities			6,523		7,200		7,358
SHAREHOLDERS' EQUITY			55,430		48,245		62,252
Total liabilities and shareholders' equity			61,953		55,445		69,610

GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED JULY 31
(unaudited - thousands of Canadian			Quarter ended					Year-to-date ended
dollars except for share data)			2016		2015			2016			2015
Revenue
	Lease rentals		796		859			1,492			1,835
	Dividends and other income		520		520			1,051			1,040
Total revenue			1,316		1,379			2,543			2,875
Expense
	Property		583		810			1,142			1,493
	Administration		322		378			703			771
	Finance		32		38			63			66
Total expense			937		1,226			1,908			2,330
Total revenue less total expense			379		153			635			545
Fair value change
	Investment properties		1,950		371			808			(1,438	)
	Investment in securities		4,305		(7,729	)		6,387			(3,641	)
Total fair value change			6,255		(7,358	)		7,195			(5,079	)
Income (loss) before income tax			6,634		(7,205	)		7,730			(4,534	)
Income tax (expense) recovery			57		1,422			(3	)		689
Net income (loss) from operations and comprehensive income(loss)			6,691		(5,783	)		7,827			(3,845	)
Net income (loss) from operations per share			$0.51		$(0.45	)		$0.61			$(0.30	)

GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited - thousands - shares & Canadian dollars as applicable)		Share Capital						Retained earnings			Total
		#			$			$			$
Balance - July 31, 2016		13,046			13,713			53,667			67,380
Comprehensive loss								(3,845	)		(3,845	)
Dividends								(649	)		(649	)
Purchase of share capital for cancellation		(175	)		(183	)		(451	)		(634	)
Balance - July 31, 2015		12,781			13,530			48,722			62,252
For the remainder of the year:
Comprehensive loss								(13,132	)		(13,132	)
Dividends								(642	)		(642	)
Purchase of share capital for cancellation		(70	)		(73	)		(160	)		(233	)
Balance - January 31, 2016		12,801			13,457			34,788			48,245
Comprehensive income								7,827			7,827
Dividends								(640	)		(640	)
Purchase of share capital for cancellation		(1	)		(1	)		(2	)		(2	)
Balance - July 31, 2016		12,800			13,456			41,974			55,430

GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED JULY 31
(unaudited - thousands of Canadian dollars)				Quarter ended						Year-to-date ended
				2016			2015			2016			2015
Changes in cash position
By operations
	Cash receipts
		Lease rentals		655			512			1,465			1,863
		Investment income and recoverable costs		597			596			1,192			1,050
	Cash disbursements
		Property		(861	)		(872	)		(1,352	)		(1,453	)
		Administration		(482	)		(482	)		(864	)		(937	)
	Income taxes recovered (paid)			-			-			638			(224	)
	Finance expense paid			(32	)		(37	)		(63	)		(65	)
Total by operations				(123	)		(283	)		1,016			234
By investing activities
	Acquisition of investment in securities			-			-			-			(300	)
	Proceeds from sale of investment in securities			-			125			-			125
	Expenditures on investment properties			-			(209	)		(2	)		(298	)
	Proceeds from sale furnishings and equipment			-			-			-			85
	Expenditures on furnishings and equipment			(2	)		(21	)		(18	)		(115	)
Total by investing activities				(2	)		(105	)		(20	)		(503	)
By financing activities
	Net advance (repayment) of credit facilities			500			1,202			(400	)		1,599
	Purchase of share capital for cancellation			-			(447	)		-			(635	)
	Dividends paid			(320	)		(323	)		(640	)		(649	)
Total by financing activities				180			432			(1,042	)		315
Increase (decrease) in cash				55			44			(46	)		46
Cash - beginning of period				9			38			110			36
Cash - end of period				64			82			64			82

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
July 31, 2016
(All tabular amounts in thousands of Canadian dollars unless otherwise stated)

1.		General information
		General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2016, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2016. These policies have been consistently applied to all periods presented.
2.		Investment in securities

			Jul 31		Jan 31
			2016		2016
	Veresen		21,920		15,960
	Osum		4,739		4,739
	Other security investments		3,210		2,742
			29,869		23,461

3.

Credit facilities

			Borrowing Balance				Remaining borrowing availability				Carrying value of collateral
			Jul 31		Jan 31		Jul 31		Jan 31		Jul 31		Jan 31
			2016		2016		2016		2016		2016		2016
	Bank borrowing		4,698		5,098		5,300		2,289		20,463		14,778
	Broker's margin account		-		-		812		591		1,623		1,199
			4,698		5,098		6,112		2,880		22,086		15,977

4.		Subsequent Event
		On September 1, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 23, 2016, payable October 7, 2016.
5.		Operating segments

		Quarter Ended Jul 31		Realty			Corporate			Inter-segment			Total
Revenue		2016		813			727			(224	)		1,316
		2015		877			7,30			(228	)		1,379
Property & administration		2016		644			339			(77	)		905
expense		2015		873			396			(81	)		1,188
Finance expense		2016		146			32			(146	)		32
		2015		147			38			(147	)		38
Total revenue less total		2016		29			356			-			356
expense		2015		(143	)		296			-			153
Fair value change		2016		1,950			4,305			-			6,255
		2015		371			(7,729	)		-			(7,358	)
Income tax recovery (expense)		2016		1			56						57
		2015		(12	)		1,434			-			1,422
Comprehensive income (loss)		2016		1,974			4,717			-			6,691
		2015		216			(5,999	)		-			(5,783	)
		YTD Ended Jul 31		Realty			Corporate			Inter-Segment			Total
Revenue		2016		1,527			1,464			(448	)		2,543
		2015		1,870			1,457			(452	)		2,875
Property & administration		2016		1,263			738			(156	)		1,845
expense		2015		1,619			806			(161	)		2,264
Finance expense		2016		292			63			(292	)		63
		2015		291			66			(291	)		66
Total revenue less total		2016		(28	)		663			-			635
expense		2015		(40	)		585			-			545
Fair value change		2016		808			6,387			-			7,195
		2015		(1,438	)		(3,641	)		-			(5,079	)
Income tax recovery (expense)		2016		14			(17	)		-			3
		2015		204			485			-			689
Comprehensive income (loss)		2016		794			7,330			-			7,827
		2015		(1,274	)		(2,571	)		-			(3,845	)
Total assets		2016		32,028			52,939			(23,014	)		61,953
		2015		30,257			60,917			(21,564	)		69,610
Total liabilities		2016		23,306			6,231			(23,014	)		6,523
		2015		22,498			6,424			(21,564	)		7,358

For more information, please contact:
James E. Cohen
President & Chief Executive Officer
Telephone: (204)474-5200
Fax: (204)474-5201
E-mail: Email contact

Web site: www.gendis.ca