The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

Gendis Inc. Announces First Quarter Profit

Friday, June 08, 2012

Gendis Inc. Announces First Quarter Profit17:39 EDT Friday, June 08, 2012WINNIPEG, MANITOBA--(Marketwire - June 8, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1st quarter ended April 30, 2012.Revenue for the 1st quarter was $1,513,000 compared to $1,638,000 for last year's 1st quarter. Net earnings for the 1st quarter were $227,000 ($0.02 per share) compared to a loss of $261,000 ($0.02 per share) for last year's 1st quarter. The increase in earnings is primarily due to the reduction in fair value declines for investment properties quarter over quarter. Lease rental revenue and recoverable property expenses have declined marginally quarter over quarter. Investment income is even with the prior year quarter.Condensed summarized information is as follows:Apr 30Apr 30in millions of Canadian dollars except per share20122011Lease rental revenue1.01.1Investment income0.50.5Fair value change:Veresen-1.2OSUM-(1.0)Other investments-(0.1)Real estate(0.5)(0.9)Expenses0.91.1Income tax recoverable0.1-Net earnings (loss)0.2(0.3)Earnings (loss) per share$0.02$(0.02)Fair value of investments:Veresen30.227.2OSUM25.626.8Other investments2.70.3Real estate27.024.1Other assets1.40.5Debt & payables7.313.2Deferred tax payable4.63.7Shareholders equity75.062.0Apr 30Apr 30in millions of Canadian dollars except per share20132011Cash flow from:OperationsCash receipts1.81.8Cash disbursements(0.8)1.2InvestingProceeds on sales of investments0.2-Purchase of investments(2.8)-FinancingIncrease (decrease) in debt1.9(0.5)Dividends(0.3)-GENDIS INC.CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONApr 30Apr 30Jan 31(unaudited - thousands of Canadian dollars)note201220112012ASSETSCurrent assetsCash5164142Income tax recoverable706-703Receivables560364761Total current assets1,3174281,606Non current assetsEquity investments258,47254,29955,813Investment property327,05024,11027,560Furnishings and equipment485452Total non current assets85,57078,46383,425Total assets86,88778,89185,031LIABILITIESCurrent liabilitiesCredit facilities45,50010,4953,600Payables7301,799582Income tax payable53--Total current liabilities6,28312,2944,182Non current liabilitiesPost employment benefit obligation956885961Deferred income tax payable54,6043,7154,723Total non current liabilities5,5604,6005,684Total liabilities11,84316,8949,866SHAREHOLDERS' EQUITY75,04461,99775,165Total liabilities and shareholders' equity86,88778,89185,031GENDIS INC.CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE QUARTERS ENDED APRIL 30(unaudited - thousands of Canadian dollars except for share data)20122011RevenueLease rentals1,0021,128Dividends511510Total revenue1,5131,638ExpenseProperty471621Administration363404Finance5092Total expense8841,117Fair value changeInvestment property(510)(935)Equity investments39149Total fair value change(471)(786)Earnings (loss) before income tax158(265)Income tax (expense) recovery69(4)Net earnings (loss) from operations and comprehensive income (loss)227(261)Net earnings (loss) from operations per share$0.02$(0.02)GENDIS INC.CONDENSED INTERIM STATEMENT OF SHAREHOLDERS' EQUITYShareRetainedTotalCapitalEarnings(unaudited - thousands - shares & Canadian dollars as applicable)#$$$Balance - January 31, 201113,93714,65047,60862,258Net loss from operations and comprehensive loss for the period(261)(261)Balance - April 30, 201113,93714,65047,34761,997Net earnings from operations and comprehensive income for the remainder of the year17,34917,349Dividends paid(4,181)(4,181)Balance - January 31, 201213,93714,65060,51575,165Net earnings from operations and comprehensive income for the period227227Dividend paid(348)(348)Balance - April 30, 201213,93714,65060,39475,044GENDIS INC.CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE QUARTERS ENDED APRIL 30(unaudited - thousands of Canadian dollars)20122011Changes in cash positionBy operationsCash receipts1,7711,790Cash disbursements(737)(1,070)Income taxes paid-(74)Finance expense paid(52)(96)Total by operations982550By investing activitiesProceeds from sale of equity investments118-Acquisition of equity investments(2,739)-Expenditures on investment property-(25)Total by investing activities(2,621)(25)By financing activitiesNet advance (repayment) of credit facilities1,896(500)Dividend paid(348)-Total by financing activities1,548(500)Increase (decrease) in cash(91)25Cash - beginning of year14239Cash - end of period5164GENDIS INC.NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE QUARTERS ENDED APRIL 30, 2012 AND 2011(unaudited - all tabular amounts in thousands of Canadian dollars unless otherwise stated)1.0 General informationGeneral information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial report for the year ended January 31, 2012. The principal accounting policies applied in the preparation of these condensed interim financial statements are the same as set out in Note 2 to the complete audited annual financial report for the year ended January 31, 2012. These policies have been consistently applied to all periods presented.2.0 Equity investments Apr 30Apr 30Jan 31(in thousands)201220112012Level 1Veresen30,16027,16030,120Other investments71731598Level 3OSUM25,59526,82425,595Oak Point Energy2,000--Total equity investments58,47254,29955,8133.0 Investment property The Company's investment properties were valued at January 31, 2012 by independent professionally qualified appraisers. The Company's investment properties were valued at April 30, 2012 and April 2011 by the Company's in- house valuation model.4.0 Credit facilitiesBorrowingRemaining borrowingCarrying valueBalanceavailabilityof collateralApr 30Jan 31Apr 30Jan 31Apr 30Jan 31201220122012201220122012Banker's acceptances5,5003,000Bank demand loan-600Total for bank borrowing5,5003,6006,5008,40027,92627,890Broker's margin account--1,1801,1152,9512,328Total credit facility5,5003,6007,6809,51530,87730,218The credit facility provides for a borrowing capacity of 70% of the market value of marketable securities, namely Veresen, lodged as collateral. The credit facility expires on July 31, 2012.5.0 Deferred income tax payable Apr 30Apr 30Jan 31201220112012Non capital losses(3,472)(4,160)(3,451)Net capital losses(1,242)(664)(1,237)Investment property2,8572,4062,978Equity investments6,7296,7076,716Other items(268)(574)(283)Total deferred income tax payable (recoverable)4,6043,7154,7236.0 Operating segmentsThe segment information provided to the CEO for the reportable segments is as follows:Quarter endedRealty Corporate IntersegmentApr 30Total EliminationExternal revenue20121,002511-1,51320111,128510-1,638Intersegment revenue201218215(233)-201115141(156)-Property & administration expenses2012525380(71)8342011650420(45)1,025Finance expense201216250(162)50201111192(111)92Fair values changes2012(510)39-(471)2011(935)149-(786)Income tax (expense) recovery20124821-692011150(146)-4Net earnings (loss) from operations2012(129)356-227& Comprehensive income (loss)2011(403)142-(261)Total assets201227,44777,880(18,440)86,887201124,33767,762(13,208)78,891Total liabilities201222,0408,243(18,440)11,843201115,97315,079(14,158)16,8947.0 Subsequent EventsSubsequent to the quarter ended April 30, 2012, the Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company. The Company expects to receive approximately $1.5-million during the quarter ending July 31, 2012.On June 8, 2012, the Company declared a regular dividend of $0.025 per share to shareholders of record June 22, 2012, payable July 6, 2012.FOR FURTHER INFORMATION PLEASE CONTACT: James E. CohenGendis Inc.President & Chief Executive Officer(204) 474-5200(204) 474-5201 (FAX)finance@gendis.cawww.gendis.ca