WINNIPEG, Manitoba, Aug. 31, 2017 (GLOBE NEWSWIRE) -- Gendis Inc. (TSX:GDS) today announced its financial results for the 2^nd quarter ended July 31, 2017.

Revenue for the 2^nd quarter was $1,524,000 compared to $1,316,000 for the 2^nd quarter last year.  Revenue less expense for the 2^nd quarter was a loss of $1,820,000 compared to income of $379,000 for the 2^nd quarter last year.  Net loss for the 2^nd quarter was $616,000 ($0.05 per share) compared to net earnings of $6,691,000 ($0.52 per share) for the 2^nd quarter last year.

Revenue year-to-date was $3,218,000 compared to $2,543,000 year-to-date last year.  Revenue less expense year-to-date was a loss of $1,331,000 compared to income of $635,000 year-to-date last year.  Net income year-to-date was $3,319,000 ($0.26 per share) compared to $7,827,000 ($0.61 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. Also, for the quarter and year-to-date this year, the Company incurred significant expenditure for repairs and renovations to its Sony Place facility in order to secure new tenants.

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	2017			2016		2017			2016
Revenue
Lease rental revenue		1.0			0.8	2.2				1.5
Dividends		0.5			0.5	1.0				1.1
Total revenue		1.5			1.3	3.2				2.5
Expense
Property		3.0			0.6	3.7				1.1
Administration & finance		0.3			0.3	0.8				0.8
Total expense		3.3			0.9	4.5				1.9
Total revenue less total expense		(1.8	)		0.4	(1.3		)		0.6
Fair value change:
Veresen		6.0			3.8	10.2				6.0
Osum		(2.2	)		—	(2.6		)		—
Other investments in securities		(0.3	)		0.5	(0.3		)		0.4
Investment properties		(2.4	)		2.0	(2.2		)		0.8
Total fair value change		1.1			6.3	5.1				7.2
Income tax (expense) recovery		(0.1	)		—	0.5				—
Net income (loss)		(0.6	)		6.7	3.3				7.8
Net income (loss) per share	$(0.05		)	$0.52		$0.26			$0.61

		Jul 31	Jan 31		Jul 31
in millions of Canadian dollars		2017	2017		2016
Fair value of investments:
Veresen		36.5	26.4		21.9
Osum		3.3	5.8		4.7
Other investment in securities		2.4	2.6		3.3
Investment properties		30.1	31.7		30.9
Other assets		1.5	1.2		1.2
Debt & payables		11.1	7.4		6.6
Deferred tax payable		0.8	0.4		—
Shareholders’ equity		62.0	59.9		55.4

	Quarter ended				Year to date ended
	Jul 31		Jul 31		Jul 31			Jul 31
in millions of Canadian dollars	2017		2016		2017			2016
Cash flow from:
Operations
Cash receipts
Lease rental revenue	0.9		0.7		1.9			1.5
Investment income and other receipts	0.6		0.7		1.2			1.2
Cash disbursements & finance expense
Property	(2.5	)	(0.9	)	(2.9		)	(1.3	)
Administration & finance	(0.5	)	(0.6	)	(1.0		)	(0.9	)
Income taxes recovered			—					0.6
Investing
Expenditures on investment properties	(0.5	)	—		(0.7		)
Financing
Increase (decrease) in debt	2.9		0.5		2.7			(0.4	)
Purchase of share capital for cancellation	(0.6	)	—		(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)	2017	2017	2016
ASSETS
Current assets
Cash	21	162	64
Receivables	1,320	891	884
Total current assets	1,341	1,053	948
Non-current assets
Investment in securities (note 2)	42,172	34,815	29,869
Investment properties (note 3)	30,100	31,740	30,940
Furnishings and equipment	215	142	164
Deferred income tax asset	—	—	32
Total non-current assets	72,487	66,697	61,005
Total assets	73,828	67,750	61,953
LIABILITIES
Current liabilities
Credit facilities (note 4)	7,743	4,997	4,698
Payables	2,317	1,447	874
Total current liabilities	10,060	6,444	5,572
Non-current liabilities
Post employment benefit obligation	966	966	951
Deferred income tax payable	828	441	—
Total non-current liabilities	1,794	1,407	951
Total liabilities	11,854	7,851	6,523
SHAREHOLDERS’ EQUITY	61,974	59,899	55,430
Total liabilities and shareholders’ equity	73,828	67,750	61,953

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)		2017			2016		2017			2016
Revenue
Lease rentals		1,004			796		2,179			1,492
Dividends and other income		520			520		1,039			1,051
Total revenue		1,524			1,316		3,218			2,543
Expense
Property		2,942			583		3,766			1,142
Administration		354			322		700			703
Finance		48			32		83			63
Total expense		3,344			937		4,549			1,908
Total revenue less total expense		(1,820	)		379		(1,331	)		635
Fair value change
Investment properties		(2,416	)		1,950		(2,226	)		808
Investment in securities		3,492			4,305		7,337			6,387
Total fair value change		1,076			6,255		5,111			7,195
Income (loss) before income tax		(744	)		6,634		3,780			7,830
Income tax (expense) recovery		128			57		(461	)		(3	)
Net income (loss) from operations and comprehensive income(loss)		(616	)		6,691		3,319			7,827
Net income (loss) from operations per share	$(0.05		)	$0.52		$0.26			$0.61

GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
(unaudited - thousands - shares & Canadian dollars as applicable)	Share Capital				Retained earnings		Total
	#		$		$		$
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	)	(1	)	(2	)
Balance – July 31, 2016	12,800		13,456		41,974		55,430
For the remainder of the year:
Comprehensive income					5,198		5,198
Dividends					(640	)	(640	)
Purchase of share capital for cancellation	(31	)	(34	)	(55	)	(89	)
Balance – January 31, 2017	12,729		13,422		46,477		59,899
Comprehensive income					3,319		3,319
Dividends					(636	)	(636	)
Purchase of share capital for cancellation	(150	)	(157	)	(451	)	(608	)
Balance – July 31, 2017	12,619		13,265		48,709		61,974

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
	2017		2016		2017		2016
Changes in cash position
By operations
Cash receipts
Lease rentals	901		655		1,855		1,465
Investment income and recoverable costs	581		597		1,155		1,192
Cash disbursements
Property	(2,462	)	(861	)	2,957		(1,352	)
Administration	(474	)	(482	)	(933	)	(864	)
Income taxes recovered	—		—		—		638
Finance expense paid	(47	)	(32	)	(82	)	(63	)
Total by operations	(1,501	)	(123	)	(962	)	1,016
By investing activities
Expenditures on investment properties	(456	)	—		(586	)	(2	)
Expenditures on furnishings and equipment	(19	)	(2	)	(96	)	(18	)
Total by investing activities	(475	)	(2	)	(682	)	(20	)
By financing activities
Net advance (repayment) of credit facilities	2,908		500		2,747		(400	)
Purchase of share capital for cancellation	(608	)	—		(608	)	(2	)
Dividends paid	(317	)	(320	)	(636	)	(640	)
Total by financing activities	1,983		180		1,503		(1,042	)
Increase (decrease) in cash	7		55		(141	)	(46	)
Cash – beginning of period	14		9		162		110
Cash – end of period	21		64		21		64

Gendis Inc.

Notes to the unaudited Interim condensed Financial Statements
July 31, 2017
(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, 2017, 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, 2017.  These policies have been consistently applied to all periods presented.

2. Investment in securities

	Jul 31	Jan 31
	2017	2017
Veresen	36,460	26,440
Osum	3,268	5,838
Other security investments	2,444	2,537
	42,172	34,815

3. Investments property

	Jul 31	Jan 31
	2017	2017
Industrial	23,500	24,890
Commercial	6,600	6,850
	30,100	31,740

4. Credit facilities

	Borrowing Balance		Remaining borrowing availability			Carrying value of collateral
	Jul 31	Jan 31	Jul 31		Jan 31	Jul 31	Jan 31
	2017	2017	2017		2017	2017	2017
Bank borrowing	7,743	4,997	2,250		5,000	33,723	24,504
Broker’s margin account	—	—	1,350		979	2,700	1,958
	7,743	4,997	3,600		5,979	36,423	26,462

5. Subsequent Event
On August 31, 2017, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 22, 2017, payable October 6, 2017.

6. Operating segments

	Quarter Ended Jul 31	Realty		Corporate		Inter- segment		Total
Revenue	2017	1,021		746		(243	)	1,524
	2016	813		727		(224	)	1,316
Property & administration	2017	3,011		371		(86	)	3,296
expense	2016	644		339		(78	)	905
Finance expense	2017	157		48		(157	)	48
	2016	146		32		(146	)	32
Total revenue less total	2017	(2,147	)	327		—		(1,820	)
Expense	2016	23		356		—		379
Fair value change	2017	(2,417	)	3,493		—		1,076
	2016	1,950		4,305		—		6,255
Income tax recovery (expense)	2017	723		(595	)	—		128
	2016	1		56		—		57
Comprehensive income (loss)	2017	(3,841	)	3,225		—		(616	)
	2016	1,974		4,717		—		6,691
	YTD Ended Jul 31	Realty		Corporate		Inter- Segment		Total
Revenue	2017	2,213		1,477		(472	)	3,218
	2016	1,527		1,464		(448	)	2,543
Property & administration	2017	3,904		735		(173	)	4,466
Expense	2016	1,263		738		(156	)	1,845
Finance expense	2017	299		83		(299	)	83
	2016	292		63		(292	)	63
Total revenue less total	2017	(1,990	)	659		—		(1,331	)
expense	2016	(28	)	663		—		635
Fair value change	2017	(2,227	)	7,338		—		5,111
	2016	808		6,387		—		7,195
Income tax recovery (expense)	2017	628		(1,089	)	—		(461	)
	2016	14		(17	)	—		(3	)
Comprehensive income (loss)	2017	(3,589	)	6,908		—		3,319
	2016	794		7,033		—		7,827
Total assets	2017	31,722		65,833		(23,727	)	73,828
	2016	32,028		52,939		(23,014	)	61,953
Total liabilities	2017	26,001		9,581		(23,727	)	11,855
	2016	23,306		6,231		(23,014	)	6,523

 

For more information, please contact:
James E. Cohen
President & Chief Executive Officer
Telephone: (204) 474-5200
E-mail: finance@gendis.ca
Fax:	(204) 474-5201
Web site: www.gendis.ca

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