WINNIPEG, Manitoba, Dec. 04, 2017 (GLOBE NEWSWIRE) -- Gendis Inc. (TSX:GDS) today announced its financial results for the 3rd quarter ended October 31, 2017.

Revenue for the 3rd quarter was $1,299,000 compared to $1,198,000 for last year.  Revenue less expense for the 3rd quarter was $336,000 compared to a loss of $107,000 for last year.  Net earnings for the 3rd quarter were $429,000 ($0.03 per share) compared to $1,188,000 ($0.09 per share) for last year.

Revenue year-to-date was $4,517,000 compared to $3,741,000 year-to-date last year.  Revenue less expense year-to-date was a loss of $995,000 compared to income of $528,000 year-to-date last year.  Net earnings year-to-date were $3,748,000 ($0.29 per share) compared to $9,015,000 ($0.70 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 with its sales to Pembina Pipeline and from 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	Oct 31		Oct 31		Oct 31			Oct 31
except per share	2017		2016		2017			2016
Revenue
Lease rental revenue	0.8		0.7		3.0			2.2
Dividends & other income	0.5		0.5		1.5			1.5
Total revenue	1.3		1.2		4.5			3.7
Expense
Property	0.5		0.9		4.3			2.1
Administration & finance	0.5		0.4		1.2			1.1
Total expense	1.0		1.3		5.5			3.2
Total revenue less total expense	0.3		(0.1	)	(1.0		)	0.5
Fair value change:
Pembina Pipeline	(0.8	)	—		(0.8		)	—
Veresen	1.2		2.4		11.2			8.4
Osum	(0.6	)	—		(3.2		)	—
Other security investments	(0.3	)	(0.4	)	(0.3		)	—
Investment properties	0.7		(0.8	)	(1.6		)	—
Total fair value change	0.2		1.2		5.3			8.4
Income tax (expense)recovery	(0.1	)	0.1		(0.6		)	0.1
Net earnings	0.4		1.2		3.7			9.0
Earnings per share	0.03		0.09		0.29			0.70

					Oct 31			Jan 31			Oct 31
in millions of Canadian dollars					2017			2017			2016
Fair value of investments:
Pembina Pipeline					24.0			—			—
Veresen					—			26.4			24.3
Osum					2.7			5.8			4.8
Other security investments					2.3			2.6			2.8
Investment properties					30.9			31.7			30.2
Cash					4.2			0.2			0.1
Other assets					1.5			1.0			1.5
Debt & payables					3.7			7.8			7.2
Shareholders’ equity					61.9			59.9			56.3
			Quarter ended						Year to date ended
			Oct 31		Oct 31			Oct 31			Oct 31
in millions of Canadian dollars			2017		2016			2017			2016
Cash flow from:
Operations
Cash receipts
Lease rentals			0.9		0.9			2.8			2.6
Dividends & other receipts			0.5		0.6			1.7			1.6
Cash disbursements
Property			(1.4	)	(0.4		)	(4.4		)	(2.0	)
Administration & finance expense			(0.3	)	(0.4		)	(1.4		)	(1.1	)
Income taxes recovered			—		—			—			0.6
Investing
Proceeds on sale of security investment			12.9		—			12.9			—
Expenditures on investment properties and equipment			(0.1	)	—			(0.7		)	(0.1	)
Financing
Decrease in debt			(7.7	)	(0.2		)	(5.0		)	(0.6	)
Purchase of share capital for cancellation			(0.2	)	—			(0.8		)	—
Dividends			(0.3	)	(0.3		)	(0.9		)	(1.0	)
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

The Company holds a portfolio of commercial and industrial real estate properties in Canada, investments in exchange-traded securities and investments in the securities of private enterprises.  Security investments are primarily in companies involved in pipelines, oil and gas development, canola crop marketing, & agricultural crop protection.  The investments are held for income generation and long-term capital growth.  The Company’s business is organized in two operating segments, the Corporate operations and the Realty operations.

GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
	Oct 31	Jan 31	Oct 31
(unaudited - thousands of Canadian dollars)	2017	2017	2016
ASSETS
Current assets
Cash	4,169	162	146
Receivables	1,465	891	967
Total current assets	5,634	1,053	1,113
Non-current assets
Investment in securities (note 2)	28,855	34,815	31,849
Investment properties	30,900	31,740	30,200
Furnishings and equipment	158	142	152
Deferred income tax	—	—	208
Total non-current assets	59,913	66,697	62,409
Total assets	65,547	67,750	63,522
LIABILITIES
Current liabilities
Credit facilities (note 3)	—	4,997	4,495
Payables	1,699	1,447	1,778
Total current liabilities	1,699	6,444	6,273
Non-current liabilities
Post employment benefit obligation	966	966	951
Deferred income tax	1,016	441	—
Total non-current liabilities	1,982	1,407	951
Total liabilities	3,681	7,851	7,224
SHAREHOLDERS’ EQUITY	61,866	59,899	56,298
Total liabilities and shareholders’ equity	65,547	67,750	63,522

GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian	Quarter ended						Year-to-date ended
dollars except for share data)		2017			2016			2017			2016
Revenue
Lease rentals		836			683			3,015			2,175
Dividends & other income		463			515			1,502			1,566
Total revenue		1,299			1,198			4,517			3,741
Expense
Property		513			928			4,279			2,070
Administration		410			343			1,110			1,046
Finance		40			34			123			97
Total expense		963			1,305			5,512			3,213
Total revenue less total expense		336			(107	)		(995	)		528
Fair value change
Investment properties		672			(783	)		(1,554	)		25
Investment in securities		(465	)		1,971			6,872			8,358
Total fair value change		207			1,188			5,318			8,383
Earnings before income tax		543			1,081			4,323			8,911
Income tax (expense) recovery		(114	)		107			(575	)		104
Net earnings from operations and comprehensive income		429			1,188			3,748			9,015
Net earnings from operations per share	$	0.03		$	0.09		$	0.29		$	0.70

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					9,015		9,015
Purchase of share capital for cancellation	(1	)	(1	)	(1	)	(2	)
Dividends					(960	)	(960	)
Balance – October 31, 2016	12,800		13,456		42,842		56,298
For the remainder of the year:
Comprehensive income					4,010		4,010
Purchase of share capital for cancellation	(31	)	(34	)	(55	)	(89	)
Dividend					(320	)	(320	)
Balance – January 31, 2017	12,769		13,422		46,477		59,899
Comprehensive income					3,748		3,748
Purchase of share capital for cancellation	(200	)	(210	)	(622	)	(832	)
Dividends					(949	)	(949	)
Balance – October 31, 2017	12,569		13,212		48,654		61,866

GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED OCTOBER 31
(unaudited	Quarter ended				Year to date ended
thousands of Canadian dollars)	2017		2016		2017		2016
Changes in cash position
By operations
Cash receipts
Lease rentals	909		889		2,764		2,614
Dividends & other receipts	539		557		1,694		1,549
Cash disbursements
Property	(1,394	)	(420	)	(4,398	)	(2,032	)
Administration	(315	)	(345	)	(1,249	)	(1,009	)
Income taxes recovered	—		—		—		638
Finance expense paid	(45	)	(34	)	(127	)	(97	)
Total by operations	(306	)	647		(1,316	)	1,663
By investing activities
Proceeds from sale of security investments	12,863		—		12,863		—
Expenditures on investment properties	(128	)	(42	)	(714	)	(45	)
Expenditures on furnishings and equipment	—		—		(49	)	(17	)
Total by investing activities	12,735		(42	)	12,100		(62	)
By financing activities
Net repayment of credit facilities	(7,743	)	(203	)	(4,996	)	(603	)
Purchase of share capital for cancellation	(224	)	—		(832	)	(2	)
Dividends paid	(314	)	(320	)	(949	)	(960	)
Total by financing activities	(8,281	)	(523	)	(6,777	)	(1,565	)
Increase in cash	4,148		82		4,007		36
Cash – beginning of period	21		64		162		110
Cash – end of period	4,169		146		4,169		146

Gendis Inc.

Notes to the unaudited Interim condensed Financial Statements
October 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

	fair value change				fair value
	QTR		YTD
	Oct 31		Oct 31		Oct 31	Jan 31
	2017		2017		2017	2017
Pembina Pipeline	(818	)	(818	)	23,952	—
Veresen	1,173		11,196		—	26,440
Osum	(618	)	(3,188	)	2,650	5,838
Other security investments	(202	)	(318	)	2,253	2,537
	(465	)	6,872		28,855	34,815

Pembina Pipeline acquired all of the Company’s shares of Veresen on October 2, 2017 for cash proceeds of $12.9 million and the receipt of 562,725 shares of Pembina Pipeline.

3. Investment properties

	fair value change			fair value
	QTR	YTD
	Oct 31	Oct 31		Oct 31	Jan 31
	2017	2017		2017	2016
Industrial	652	(1,324	)	24,280	24,890
Commercial	20	(230	)	6,620	6,850
	672	(1,554	)	30,900	31,740

4. Credit facilities

	Borrowing Balance		Remaining borrowing availability			Carrying value of collateral
	Oct 31	Jan 31	Oct 31		Jan 31	Oct 31	Jan 31
	2017	2017	2017		2017	2017	2017
Bank credit facility	—	4,997	10,000		5,000	22,183	24,504
Broker’s margin account	—	—	887		979	1,774	1,958
	—	4,997	10,887		5,979	23,957	26,462

5. Operating segments

	Quarter Ended Oct 31	Realty		Corporate		Inter- Segment		Total
Revenue	2017	853		723		(277	)	1,299
	2016	700		725		(227	)	1,198
Property & administration	2017	582		427		(86	)	923
Expense	2016	988		360		(77	)	1,271
Finance expense	2017	191		40		(191	)	40
	2016	150		34		(150	)	34
Total revenue less total	2017	80		256		—		336
expense	2016	(438	)	331		—		(107	)
Fair value change	2017	672		(465	)	—		207
	2016	(783	)	1,971		—		1,188
Income tax recovery (expense)	2017	(266	)	152		—		(114	)
	2016	91		16		—		107
Comprehensive income (loss)	2017	486		(57	)	—		429
	2016	(1,130	)	2,318		—		1,188
	YTD Ended Oct 31	Realty		Corporate		Inter- Segment		Total
Revenue	2017	3,067		2,199		(749	)	4,517
	2016	2,227		2,189		(675	)	3,741
Property & administration	2017	4,486		1,162		(259	)	5,389
expense	2016	2,250		1,098		(232	)	3,116
Finance expense	2017	490		123		(490	)	123
	2016	443		97		(443	)	97
Total revenue less total	2017	(1,909	)	914		—		(995	)
expense	2016	(466	)	994		—		528
Fair value change	2017	(1,554	)	6,872		—		5,318
	2016	25		8,358		—		8,383
Income tax recovery (expense)	2017	362		(937	)	—		(575	)
	2016	105		(1	)	—		104
Comprehensive income (loss)	2017	(3,101	)	6,849		—		3,748
	2016	(336	)	9,351		—		9,015
Total assets	2017	32,777		57,507		(24,737	)	65,547
	2016	31,302		54,839		(22,619	)	63,522
Total liabilities	2017	26,568		1,850		(24,737	)	3,681
	2016	23,709		6,134		(22,619	)	7,224

6. Subsequent Event
On December 4, 2017, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 22, 2017, payable January 5, 2018.

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