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Press release from Marketwire

Gendis Inc. Announces Third Quarter Results

Monday, December 10, 2012

Gendis Inc. Announces Third Quarter Results18:25 EST Monday, December 10, 2012WINNIPEG, MANITOBA--(Marketwire - Dec. 10, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3rd quarter ended October 31, 2012 of the fiscal year ending January 31, 2013.Revenue for the 3rd quarter was $1,431,000 compared to $1,419,000 for last year's 3rd quarter. Net loss for the 3rd quarter was $791,000 ($0.06 per share) compared to a profit of $3,015,000 ($0.21 per share) for last year's 3rd quarter.Revenue year-to-date was $4,471,000 compared to $4,517,000 last year. Net loss year-to-date was $8,300,000 ($0.60 per share) compared to a loss of $671,000 ($0.05 per share) for last year.Lease rental revenue increased marginally while investment income was essentially even quarter over quarter and year-to-date. The decrease in earnings is primarily due to the change in fair value for equity investments and investment properties quarter over quarter and year-to-date.Condensed summarized information is as follows:quarter endedyear-to-datein millions of Canadian dollarsOct 31Oct 31Oct 31Oct 31except per share2012201120122011Lease rental revenue0.90.93.03.0Investment income0.50.51.51.5Fair value change:Veresen0.10.9(4.4)2.8OSUM(1.0)0.5(8.2)(8.5)Other equity investments0.1(0.1)(0.9)(0.1)Investment properties(0.8)1.6(0.1)1.8Expenses(0.7)(0.9)(2.8)(2.9)Settlement of legal claims--1.5-Income tax recovery (expense)0.1(0.4)2.11.7Net earnings (loss)(0.8)3.0(8.3)(0.7)Earnings (loss) per share$(0.06)$0.21$(0.60)$(0.05)Fair value of investments:Veresen25.828.8OSUM17.419.4Other equity investments1.80.1Investment properties27.926.9Other assets0.70.7Debt & payables5.512.7Deferred tax payable2.42.0Shareholders' equity65.761.2quarter endedyear-to-datein millions of Canadian dollarsOct 31Oct 31Oct 31Oct 31except per share2012201120122011Cash flow from:OperationsCash receipts1.61.94.74.7Cash disbursements(0.8)(1.1)(2.9)(3.0)Finance expense—(0.1)(0.1)(0.3)Settlement of legal claims——1.5(1.3)Income taxes——0.7(0.1)InvestingProceeds on sales of investments——0.1—Purchase of investments——(2.7)—Expenditures on investment properties(0.5)—(0.5)—FinancingDebt advance (reduction)0.1(0.6)0.30.4Purchase of share capital for cancellation(0.1)—(0.1)—Dividends(0.3)(0.3)(1.0)(0.3)GENDIS INC.CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION(unaudited - thousands of Canadian dollars)Oct 31Oct 31Jan 31note201220112012ASSETSCurrent assetsCash1086142Receivables7105741,464Total current assets7206601,606Non current assetsEquity investments244,93048,28055,813Investment property27,90026,88027,560Furnishings and equipment394952Total non current assets72,86975,20983,425Total assets73,58975,86985,031LIABILITIESCurrent liabilitiesCredit facilities33,89711,3953,600Payables472400582Current income tax payable154--Total current liabilities4,52311,7954,182Non current liabilitiesPost employment benefit obligation951855961Deferred income tax payable2,4381,9804,723Total non current liabilities3,3892,8355,684Total liabilities7,91214,6309,866SHAREHOLDERS' EQUITY65,67761,23975,165Total liabilities and shareholders' equity73,58975,86985,031GENDIS INC. CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED OCTOBER 31 (unaudited - thousands of Canadian dollars except for share data) quarter year-to-date2012201120122011RevenueLease rentals9319122,9592,990Dividends and other investment income5005071,5121,527Total revenue1,4311,4194,4714,517ExpenseProperty3703961,4131,456Administration3013481,2061,140Finance30104134289Total expense7018482,7532,885Fair value changeInvestment property(851)1,602(131)1,827Equity investments(807)1,233(13,503)(5,869)Total fair value change(1,658)2,835(13,634)(4,042)Settlement of legal claims--1,483-Earnings (loss) before income tax(928)3,406(10,433)(2,410)Income tax (expense) recovery137(391)2,1331,739Net earnings (loss) from operations and comprehensive income (loss)(791) 3,015(8,30 ) (671)Net earnings (loss) from operations per share$(0.06) $0.21$(0.60) $(0.05 ) GENDIS INC.CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITYShareRetainedTotal(unaudited - thousands - shares &CapitalEarningsCanadian dollars as applicable)#$$$Balance - January 31, 201113,93714,65047,60862,258Comprehensive loss to July 31, 2011(3,686)(3,686)Balance - July 31, 201113,93714,65043,92258,572Comprehensive income for thequarter ended October 31, 20113,0153,015Dividend paid(348)(348)Balance - October 31, 201113,93714,65046,58961,239Comprehensive income for the remainder of the year17,75917,759Dividends paid(3,833)(3,833)Balance - January 31, 201213,93714,65060,51575,165Comprehensive loss to July 31, 2012(7,509)(7,509)Purchase of share capital for cancellation(6)(6)(13)(19) Dividends paid(697)(697)Balance - July 31, 201213,93114,64452,29666,940Comprehensive loss for thequarter ended October 31, 2012(791)(791)Purchase of share capital for cancellation(40)(42) (82)(124) Dividend paid(348)(348)Balance - October 31, 201213,89114,60251,07565,677GENDIS INC.CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE PERIODS ENDED OCTOBER 31quarteryear-to-date(unaudited - thousands of Canadian dollars)2012201120122011Changes in cash positionBy operationsCash receipts1,5801,8894,6654,715Cash disbursements(760)(1,042)(2,868)(3,067)Receipt (payment) on settlement of legal claims--1,483(1,250) Income taxes (paid) recovered--706(74)Finance expense paid(28)(102)(135)(290)Total by operations7927453,85134By investing activitiesProceeds from sale of equity investments--118-Acquisition of equity investments--(2,739)-Expenditures on investment property(471)(8)(471)(33)Proceeds on sale of equipment-3-3Expenditures on furnishings and equipment-(9)-(9)Total by investing activities(471)(14)(3,092)(39)By financing activitiesNet advance (repayment) of credit facilities 103 (587) 297 400Purchase of share capital for cancellation(124)-(143)-Dividends paid 348(348) (1,045) (348) Total by financing activities(369) (935)(891) 52Increase (decrease) in cash(48) (204)(132)47Cash - beginning of period5829014239Cash - end of period10861086Gendis Inc.Notes to the unaudited Condensed Interim Financial Statements October 31, 2012(All tabular amounts in thousands of Canadian dollars unless otherwise stated)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. Investments Oct 31Jan 3120122012Veresen25,76030,120OSUM17,40525,595Other equity investments1,7659844,93055,8133. Credit facilitiesBorrowingRemaining borrowingCarrying valueBalanceavailabilityof collateralOct 31Jan 31Oct 31Jan 31Oct 31Jan 31201220122012201220122012Banker's acceptances3,4973,000Bank demand loan4006003,8973,6006,1008,40023,85227,890Broker's margin account--1,1771,1152,6732,3283,8973,6007,2779,51526,52530,218Settlement of legal claims 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. Subsequent Event On December 10, 2012, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 21, 2012, payable January 4, 2013. During the period November 1, 2012 to December 10, 2012, the Company sold 105,000 shares of OSUM for net proceeds of $899,000.During the period November 1, 2012 to December 10, 2012, the Company purchased 1-million shares of Input Capital Corp., a private company, for $1-million.FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Gendis Inc.James E. CohenPresident & Chief Executive Officer(204)474-5200(204)474-5201 (FAX)finance@gendis.cawww.gendis.ca