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Press release from Marketwire

Gendis Inc. Announces Second Quarter Results

Friday, September 07, 2012

Gendis Inc. Announces Second Quarter Results17:27 EDT Friday, September 07, 2012WINNIPEG, MANITOBA--(Marketwire - Sept. 7, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 2nd quarter ended July 31, 2012.Revenue for the 2nd quarter was $1,527,000 compared to $1,460,000 for last year's 2nd quarter. Net loss for the 2nd quarter was $7,736,000 ($0.56 per share) compared to a loss of $3,425,000 ($0.24 per share) for last year's 2nd quarter.Revenue year-to-date was $3,040,000 compared to $3,098,000 last year. Net loss year-to-date was $7,509,000 ($0.54 per share) compared to a loss of $3,686,000 ($0.26 per share) for last year.Lease rental revenue increased marginally while investment income was essentially even quarter over quarter and year-to-date. The decrease in earnings is primarily due to the change in fair value for equity investments quarter over quarter and year-to-date.Condensed summarized information is as follows:quarter endedyear-to-datein millions of Canadian dollarsJul 31Jul 31Jul 31Jul 31except per share2012201120122011Lease rental revenue1.01.02.02.1Investment income0.50.51.01.0Expenses(1.1)(0.9)(2.0)(2.0)Fair value change:Veresen(4.5)0.8(4.5)1.9OSUM(7.2)(7.9)(7.2)(9.0)Other investments(1.0)(0.2)(1.0)-Real estate1.21.20.70.2Settlement of legal claims1.5-1.5-Deferred tax recovery1.92.12.02.1Net loss(7.7)(3.4)(7.5)(3.7)Loss per share$(0.56)$(0.24)$(0.54)$(0.26)Fair value of investments:Veresen25.627.9OSUM18.418.9Other investments1.70.2Real estate28.325.3Other assets0.91.2Debt & payables5.413.3Deferred tax payable2.61.6Shareholders equity66.958.6quarter endedyear-to-datein millions of Canadian dollarsJul 31Jul 31Jul 31Jul 31except per share2012201120122011Cash flow from:Operations2.1(1.3)3.1(0.7)Investing--(2.6)-Financing(2.1)1.5(0.5)1.0GENDIS INC.CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITIONJul 31Jul 31Jan 31(unaudited - thousands of Canadian dollars)note201220112012ASSETSCurrent assetsCash58290142Receivables8128321,464Total current assets8701,1221,606Non current assetsEquity investments245,73747,04755,813Investment property28,28025,27027,560Furnishings and equipment444852Total non current assets74,06172,36583,425Total assets74,93173,48785,031LIABILITIES Current liabilitiesCredit facilities33,79411,9823,600Payables511475582Current income tax payable104--Total current liabilities4,40912,4574,182Non current liabilitiesPost employment benefit obligation956870961Deferred income tax payable2,6261,5884,723Total non current liabilities3,5822,4585,684Total liabilities7,99114,9159,866SHAREHOLDERS' EQUITY66,94058,57275,165Total liabilities and shareholders' equity74,93173,48785,031GENDIS INC.CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE PERIODS ENDED JULY 31quarteryear-to-date(unaudited - thousands of Canadian dollars except for share data)note2012201120122011RevenueLease rentals1,0259502,0282,078Dividends and interest income5025101,0121,020Total revenue1,5271,4603,0403,098ExpenseProperty5724391,0431,061Administration534388905792Finance5493104185Total expense1,1609202,0522,038Fair value changeInvestment property1,2301,160720225Equity investments(12,735)(7,251)(12,696)(7,102)Total fair value change(11,505)(6,091)(11,976)(6,877)Settlement of legal claims41,475-1,483-Loss before income tax(9,663)(5,551)(9,505)(5,817)Income tax recovery1,9272,1261,9962,131Net loss from operations and comprehensive loss(7,736)(3,425)(7,509)(3,686)Net loss from operations per share$(0.56)$(0.24)$(0.54)$(0.26)GENDIS INC.CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY(unaudited - thousands - shares & Canadian dollars as applicable)Share CapitalRetained EarningsTotal#$$$Balance - January 31, 201113,93714,65047,60862,258Net loss from operations and comprehensive loss for the quarter ended April 30, 2011(261)(261)Balance - April 30, 201113,93714,65047,34761,997Net loss from operations and comprehensive loss for the quarter ended July 31, 2011(3,425)(3,425)Balance - July 31, 201113,93714,65043,92258,572Net earnings from operations and comprehensive income for the remainder of the year20,77420,774Dividends paid(4,181)(4,181)Balance - January 31, 201213,93714,65060,51575,165Net earnings from operations and comprehensive income for the quarter ended April 30, 2012227227Dividend paid(348)(348)Balance - April 30, 201213,93714,65060,39475,044Net loss from operations and comprehensive income for the quarter ended July 31, 2012(7,736)(7,736)Redemption of share capital(6)(6)(13)(19)Dividend paid(349)(349)Balance - July 31, 201213,93114,64452,29666,940GENDIS INC.CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE PERIODS ENDED JULY 31quarteryear-to-date(unaudited - thousands of Canadian dollars)2012201120122011Changes in cash positionBy operationsCash receipts1,3221,0373,0852,826Cash disbursements(1,371)(955)(2,108)(2,024)Receipt (payment) on settlement of legal claims1,475(1,250)1,483(1,250)Income taxes recovered (paid)706-706(74)Finance expense paid(55)(93)(107)(188)Total by operations2,077(1,261)3,059(710)By investing activitiesProceeds from sale of equity investments--118-Acquisition of equity investments--(2,739)-Expenditures on investment property---(26)Total by investing activities--(2,621)(26)By financing activitiesNet advance (repayment) of credit facilities(1,702)1,487194987Redemption of share capital(19)-(19)-Dividends paid(349)-(697)-Total by financing activities(2,070)1,487(522)987Increase (decrease) in cash7226(84)251Cash - beginning of period516414239Cash - end of period5829058290Gendis Inc.Notes to the unaudited Condensed Consolidated Interim Financial StatementsJuly 31, 2012(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 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. Investments Jul 31Jan 3120122012Veresen25,62030,120OSUM18,42925,595Oak Point Energy1,000-Other equity investments6889845,73754,1503. Credit facilitiesBorrowingRemaining borrowingCarrying valueBalanceavailabilityof collateralJul 31Jan 31Jul 31Jan 31Jul 31Jan 31201220122012201220122012Banker's acceptances3,4943,000Bank demand loan3006003,7943,6006,2008,40023,72227,890Broker's margin account--1,0131,1152,5862,3283,7943,6007,2139,51526,30830,2184. Settlement of legal claimsThe 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.5. Subsequent Event On September 7, 2012, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 21, 2012, payable October 5, 2012.6. Operating segmentsThe segment information provided to the CEO for the reportable segments is as follows:Quarter endedIntersegmentTotalJul 31Realty Corporate EliminationExternal revenue20121,025502-1,5272011950510-1,460Intersegment revenue201218216(234)-201115145(160)-Property & administration expenses2012626552(72)1,1062011469403(45)827Finance expense201216254(162)54201111593(115)93Fair values changes20121,230(12,735)-(11,505)20111,160(7,251)-(6,091)Settlement of legal claims2012-1,475-1,4752011----Income tax (expense) recovery2012(401)2,328-1,9272011(416)2,542-2,126Net earnings (loss) from operations20121,084(8,820)-(7,736)& Comprehensive income (loss)20111,125(4,550)-(3,425)Year-to-date endedIntersegmentTotalJul 31RealtyCorporateEliminationExternal revenue20122,0281,012-3,04020112,0781,020-3,098Intersegment revenue201235432(467)-201131286(317)-Property & administration expenses20121,151940(143)1,94820111,120824(91)1,853Finance expense2012324104(324)1042011226185(226)185Fair values changes2012720(12,696)-(11,976)2011225(7,102)-(6,877)Settlement of legal claims2012-1,483-1,4832011----Income tax (expense) recovery2012(353)2,349-1,9962011(267)2,398-2,131Net earnings (loss) from operations2012955(8,464)-(7,509)& Comprehensive income (loss)2011721(4,407)-(3,686)Total assets201228,93264,629(18,630)74,931201125,93860,858(13,309)73,487Total liabilities201222,4414,180(18,630)7,991201116,44811,776(13,309)14,915FOR FURTHER INFORMATION PLEASE CONTACT: James E. CohenGendis Inc.President & Chief Executive Officer(204)474-5200(204)474-5201 (FAX)finance@gendis.cawww.gendis.ca