Gendis Inc. Announces Third Quarter Results
/EINPresswire.com/ -- WINNIPEG, MB--(Marketwired - December 04, 2015) - Gendis Inc. (TSX: GDS) today announced its financial results for the 3rd quarter ended October 31, 2015.
Revenue for the 3rd quarter was $1,269,000 compared to $1,483,000 for last year. Revenue less expense for the 3rd quarter was $544,000 compared to $712,000 for last year. Net loss for the 3rd quarter was $6,546,000 ($0.50 per share) compared to a loss of $1,327,000 ($0.09 per share) for last year.
Revenue year-to-date was $4,144,000 compared to $4,321,000 year-to-date last year. Revenue less expense year-to-date was $1,089,000 compared to $2,015,000 year-to-date last year. Net loss year-to-date was $10,391,000 ($0.80 per share) compared to net earnings of $5,942,000 ($0.45 per share) year-to-date last year.
The volatility in net earnings quarter over quarter and year over year is primarily due to the change in fair value of investment in securities, primarily the Company's investment in 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 Oct 31 Oct 31 Oct 31 Oct 31
dollars except per share 2015 2014 2015 2014
---------------------------------------- ----------- ----------- -----------
Revenue
Lease rental revenue 0.8 1.0 2.6 2.8
Dividends 0.5 0.5 1.5 1.5
Total revenue 1.3 1.5 4.1 4.3
Expense
Property 0.3 0.4 1.9 1.2
Administration & finance 0.4 0.4 1.2 1.1
Total expense 0.7 0.8 3.1 2.3
Total revenue less total
expense 0.6 0.7 1.0 2.0
Fair value change:
Veresen (6.8) (1.7) (9.4) 5.6
Osum - (0.4) (0.6) (1.2)
Other security investments - (0.3) (0.4) (0.6)
Investment properties (0.3) 0.2 (1.7) 1.2
Total fair value change (7.1) (2.2) (12.1) 5.0
Income tax (expense) recovery - 0.2 0.7 (1.1)
Net earnings (loss) (6.5) (1.3) (10.4) 5.9
Earnings (loss) per share $ (0.50) $ (0.09) $ (0.80) $ 0.45
Oct 31 Jan 31 Oct 31
in millions of Canadian dollars 2015 2015 2014
--------------------------------------------- --------- --------- ---------
Fair value of investments:
Veresen 22.7 32.1 35.3
Osum 5.6 6.2 10.3
Other security investments 3.8 4.1 4.1
Investment properties 29.2 30.5 32.0
Other assets 0.9 1.0 1.1
Debt & payables 7.0 5.7 5.4
Deferred tax payable - 0.8 2.1
Shareholders' equity 55.2 67.3 75.3
Quarter ended Year to date ended
Oct 31 Oct 31 Oct 31 Oct 31
in millions of Canadian dollars 2015 2014 2015 2014
--------------------------------------------- --------- --------- ---------
Cash flow from:
Operations
Cash receipts 1.7 1.7 4.6 5.2
Cash disbursements & finance
expense (0.9) (0.8) (3.4) (2.5)
Income taxes recovered (paid) - - (0.2) (0.2)
Investing
Proceeds on sales of security
investments - - 0.1 -
Purchase of security investments - (0.2) (0.3) (0.9)
Expenditures on investment
properties and equipment (0.1) (0.3) (0.4) (0.5)
Financing
Increase (decrease) in debt (0.2) 0.5 1.4 1.6
Purchase of share capital for
cancellation (0.2) (0.5) (0.8) (1.5)
Dividends (0.3) (0.3) (1.0) (1.0)
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
Oct 31 Jan 31 Oct 31
(unaudited - thousands of Canadian dollars) 2015 2015 2014
-------------------------------------------------------- --------- ---------
ASSETS
Current assets
Cash 39 36 156
Receivables 692 818 845
-------------------------------------------------------- --------- ---------
Total current assets 731 854 1,001
-------------------------------------------------------- --------- ---------
Non-current assets
Investment in securities (note 2) 32,130 42,358 49,661
Investment properties 29,247 30,577 31,975
Furnishings and equipment 182 159 164
-------------------------------------------------------- --------- ---------
Total non-current assets 61,559 73,094 81,800
-------------------------------------------------------- --------- ---------
Total assets 62,290 73,948 82,801
======================================================== ========= =========
LIABILITIES
Current liabilities
Credit facilities (note 3) 4,998 3,597 3,197
Payables 1,050 1,099 1,252
-------------------------------------------------------- --------- ---------
Total current liabilities 4,696 4,449
-------------------------------------------------------- --------- ---------
Non-current liabilities
Post employment benefit obligation 1,012 1,012 937
Deferred income tax payable 860 2,136
-------------------------------------------------------- --------- ---------
Total non-current liabilities 1,012 1,872 3,073
-------------------------------------------------------- --------- ---------
Total liabilities 7,060 6,568 7,522
-------------------------------------------------------- --------- ---------
SHAREHOLDERS' EQUITY 55,230 67,380 75,279
-------------------------------------------------------- --------- ---------
Total liabilities and shareholders' equity 62,290 73,948 82,801
======================================================== ========= =========
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of
Canadian dollars except for
share data) Quarter ended Year-to-date ended
2015 2014 2015 2014
--------------------------------------- ---------- ---------- ----------
Revenue
Lease rentals 744 962 2,579 2,798
Dividends 525 521 1,565 1,523
--------------------------------------- ---------- ---------- ----------
Total revenue 1,269 1,483 4,144 4,321
--------------------------------------- ---------- ---------- ----------
Expense
Property 362 399 1,855 1,175
Administration 332 342 1,103 1,061
Finance 31 30 97 70
--------------------------------------- ---------- ---------- ----------
Total expense 725 771 3,055 2,306
--------------------------------------- ---------- ---------- ----------
Total revenue less total
expense 544 712 1,089 2,015
--------------------------------------- ---------- ---------- ----------
Fair value change
Investment properties (293) 157 (1,731) 1,203
Investment in securities (6,793) (2,381) (10,434) 3,796
--------------------------------------- ---------- ---------- ----------
Total fair value change (7,086) (2,224) (12,165) 4,999
--------------------------------------- ---------- ---------- ----------
Earnings (loss) before income
tax (6,542) (1,512) (11,076) 7,014
Income tax (expense) recovery (4) 185 685 (1,072)
--------------------------------------- ---------- ---------- ----------
Net earnings (loss) from
operations and comprehensive
income (loss) (6,546) (1,327) (10,391) 5,942
======================================= ========== ========== ==========
Net earnings (loss) from
operations per share $ (0.51) $ (0.09) $ (0.80) $ 0.45
======================================= ========== ========== ==========
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited - thousands - shares & Retained
Canadian dollars as applicable) Share Capital earnings Total
# $ $ $
---------------------------------------------- --------- --------- ---------
Balance - January 31, 20154 13,481 14,170 57,672 71,842
Comprehensive income 5,942 5,942
Purchase of share capital for
cancellation (396) (415) (1,090) (1,505)
Dividends (1,000) (1,000)
---------------------------------------------- --------- --------- ---------
Balance - October 31, 2014 13,085 13,755 61,524 75,279
For the remainder of the year:
Comprehensive loss (7,423) (7,423)
Purchase of share capital for
cancellation (39) (42) (108) (150)
Dividend (326) (326)
---------------------------------------------- --------- --------- ---------
Balance - January 31, 2015 13,046 13,713 53,667 67,380
Comprehensive income (10,391) (10,391)
Purchase of share capital for
cancellation (220) (230) (558) 788
Dividends (971) (971)
---------------------------------------------- --------- --------- ---------
Balance - October 31, 2015 12,826 13,483 41,747 55,230
============================================== ========= ========= =========
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian
dollars) Quarter ended Year to date ended
2015 2014 2015 2014
--------------------------------------------- --------- --------- ---------
Changes in cash position
By operations
Cash receipts 1673 1,749 4,586 5,233
Cash disbursements (904) (781) (3,294) (2,499)
Income taxes paid - - (224) (211)
Finance expense paid (33) (30) (98) (68)
--------------------------------------------- --------- --------- ---------
Total by operations 736 938 970 2,455
--------------------------------------------- --------- --------- ---------
By investing activities
Proceeds from sale of security
investments - - 125 -
Acquisition of security
investments (200) (300) (927)
Expenditures on investment
properties (103) (253) (401) (387)
Proceeds from sale of equipment - - 85 -
Expenditures on furnishings and
equipment (3) (14) (118) (125)
--------------------------------------------- --------- --------- ---------
Total by investing activities (106) (467) (609) (1,439)
--------------------------------------------- --------- --------- ---------
By financing activities
Net advance (repayment) of credit
facilities (198) 500 1,401 1,598
Purchase of share capital for
cancellation (153) (528) (788) (1,505)
Dividends paid (322) (330) (971) (1,000)
--------------------------------------------- --------- --------- ---------
Total by financing activities (673) (358) (358) (907)
--------------------------------------------- --------- --------- ---------
Increase (decrease) in cash (43) 113 3 109
Cash - beginning of period 82 43 36 47
--------------------------------------------- --------- --------- ---------
Cash - end of period 39 156 39 156
============================================= ========= ========= =========
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
January 31, 2015
(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, 2015, 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, 2015. These policies have been consistently applied to all periods presented.
2. Investment in securities
Oct 31 Jan 31
2015 2015
----------------------------------------------------------------------------
Veresen 22,740 32,120
Osum 5,553 6,187
Other security investments 3,837 4,051
----------------------------------------------------------------------------
32,130 42,358
============================================================================
3. Credit facilities
Borrowing Remaining borrowing Carrying value of
Balance availability collateral
-------------------------------------- ------------------- -----------------
Oct 31 Jan 31 Oct 31 Jan 31 Oct 31 Jan 31
2015 2015 2015 2015 2015 2015
------------------------------ ------- --------- --------- -------- --------
Bank credit facility 4,988 3,597 5,000 6,400 21,075 29,742
Broker's margin account - - 842 1,189 1,701 2,457
------------------------------ ------- --------- --------- -------- --------
4,988 3,597 5,842 7,589 22,776 32,199
============================== ======= ========= ========= ======== ========
4. Subsequent Event
On December 4, 2015, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 18, 2015, payable January 8, 2016.
On December 4, 2015, the fair value of the Company's investment in securities declined by $3.4 million, primarily from Veresen by $2.5 million and Input Capital by $0.9 million.
5. Operating segments
Quarter
Ended Inter-
Oct 31 Realty Corporate segment Total
----------------------------------------------------------------------------
Revenue 2015 761 733 (225) 1,269
2014 979 747 (243) 1,483
Property & administration 2015 425 349 (80) 694
expense 2014 453 359 (71) 741
Finance expense 2015 145 31 (145) 31
2014 172 30 (172) 30
Total revenue less total 2015 191 353 - 544
expense 2014 354 358 - 712
Fair value change 2015 (293) (6,793) - (7,086)
2014 157 (2,381) - (2,224)
Income tax recovery (expense) 2015 (11) 7 - (4)
2014 25 160 - 185
Comprehensive income (loss) 2015 (113) (6,433) - (6,546)
2014 536 (1,863) - (1,327)
============================================================================
YTD
Ended Inter-
Oct 31 Realty Corporate Segment Total
Revenue 2015 2,631 2,190 (677) 4,144
2014 2,850 2,205 (734) 4,321
Property & administration 2015 2,044 1,155 (241) 2,958
expense 2014 1,336 1,114 (214) 2,236
Finance expense 2015 436 97 (436) 97
2014 520 70 (520) 70
Total revenue less total 2015 151 938 1,089
expense 2014 994 1,021 2,015
Fair value change 2015 (1,731) (10,434) (12,165)
2014 1,203 3,796 - 4,999
Income tax recovery (expense) 2015 193 492 685
2014 (430) (642) - (1,072)
Comprehensive income (loss) 2015 (1,387) (9,004) (10,391)
2014 1,767 4,175 - 5,942
Total assets 2015 29,802 54,755 (22,267) 62,290
2014 32,743 75,514 (22,456) 82,801
Total liabilities 2015 23,050 6,277 (22,267) 7,060
2014 24,678 5,300 (22,456) 7,522
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: Email contact
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