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Press release from Marketwire

Gendis Inc. Announces First Quarter Earnings of More Than $1.8-Million

Friday, June 07, 2013

Gendis Inc. Announces First Quarter Earnings of More Than $1.8-Million

16:44 EDT Friday, June 07, 2013

WINNIPEG, MANITOBA--(Marketwired - June 7, 2013) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1st quarter ended April 30, 2013.

Revenue for the 1st quarter was $1,420,000 compared to $1,513,000 for the prior year 1st quarter. Revenue less expense for the 1st quarter was $655,000 compared to $629,000 the prior year 1st quarter. Net earnings for the 1st quarter were $1,845,000 ($0.13 per share) compared to net earnings of $227,000 ($0.02 per share) for the prior year 1st quarter.

The volatility in net earnings quarter over quarter is primarily due to the change in fair value of equity investments and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

Quarter ended
in millions of Canadian dollars Apr 30 Apr 30
except per share 2013 2012
Revenue
Lease rental revenue 0.9 1.0
Dividends 0.5 0.5
Total revenue 1.4 1.5
Expense
Property 0.4 0.5
Administration & finance 0.4 0.4
Total expense 0.8 0.9
Revenue less expense 0.6 0.6
Fair value change:
Veresen 1.1 -
OSUM (0.4 ) -
Other equity investments (0.3 ) -
Investment properties 1.1 (0.5 )
Total fair value change 1.5 (0.5 )
Income tax recovery 0.3 0.1
Net earnings 1.8 0.2
Earnings per share $ 0.13 $ 0.02
Apr 30 Jan 31 Apr 30
in millions of Canadian dollars 2013 2013 2012
Fair value of investments:
Veresen 26.8 25.7 30.2
OSUM 13.2 14.5 25.6
Other equity investments 2.7 3.0 2.7
Investment properties 31.0 29.8 27.0
Other assets 0.7 2.0 1.4
Debt & payables 3.0 5.2 7.3
Deferred tax payable 0.9 0.6 4.6
Shareholders' equity 70.5 69.3 75.0
Quarter ended
Apr 30 Apr 30
in millions of Canadian dollars 2013 2012
Cash flow from:
Operations
Cash receipts 1.6 1.8
Cash disbursements & finance expense (0.7 ) (0.8 )
Income taxes paid (0.2 ) -
Investing
Proceeds on sales of investments 2.0 0.2
Purchase of investments - (2.8 )
Expenditures on investment properties (0.1 ) -
Financing
Increase (decrease) in debt (2.2 ) 1.9
Purchase of share capital for cancellation (0.2 ) -
Dividends (0.3 ) (0.3 )
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
Apr 30 Jan 31 Apr 30
(unaudited - thousands of Canadian dollars) 2013 2013 2012
ASSETS
Current assets
Cash 28 77 51
Receivables 638 1,929 1,266
Total current assets 666 2,006 1,317
Non-current assets
Equity investments (note 2) 42,672 43,167 58,472
Investment property 30,985 29,775 27,050
Furnishings and equipment 49 48 48
Total non-current assets 73,706 72,990 85,570
Total assets 74,372 74,996 86,887
LIABILITIES
Current liabilities
Credit facilities (note 3) 1,299 3,500 5,500
Payables 719 763 783
Total current liabilities 2,018 4,263 6,283
Non-current liabilities
Post employment benefit obligation 972 972 956
Deferred income tax payable 851 578 4,604
Total non-current liabilities 1,823 1,550 5,560
Total liabilities 3,841 5,813 11,843
SHAREHOLDERS' EQUITY 70,531 69,183 75,044
Total liabilities and shareholders' equity 74,372 74,996 86,887
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED APRIL 30
(unaudited - thousands of Canadian Quarter ended
dollars except for share data) 2013 2012
Revenue
Lease rentals 919 1,002
Dividends 501 511
Total revenue 1,420 1,513
Expense
Property 378 471
Administration 368 363
Finance 19 50
Total expense 765 884
Revenue less expense 655 629
Fair value change
Equity investments 371 39
Investment property 1,144 (510 )
Total fair value change 1,515 (471 )
Earnings before income tax 2,170 158
Income tax (expense) recovery (325 ) 69
Net earnings from operations and comprehensive income
1,845

227
Net earnings from operations per share $
0.13
$
0.02
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, 2012 13,937 14,650 60,515 75,165
Comprehensive income 227 227
Dividend paid (348 ) (348 )
Balance - April 30, 2012 13,937 14,650 60,394 75,044
For the remainder of the year:
Comprehensive loss (4,445 ) (4,445 )
Purchase of share capital for cancellation
(121
)
(127
)
(246
)
(373
)
Dividends paid (1,043 ) (1,043 )
Balance - January 31, 2013 13,816 14,523 54,660 69,183
Comprehensive income 1,845 1,845
Purchase of share capital for cancellation
(48
)
(51
)
(101
)
(152
)
Dividend paid (345 ) (345 )
Balance - April 30, 2013 13,768 14,472 56,059 70,531
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED APRIL 30
(unaudited - thousands of Canadian Quarter ended
dollars) 2013 2012
Changes in cash position
By operations
Cash receipts 1,583 1,771
Cash disbursements (678 ) (737 )
Income taxes paid (203 ) -
Finance expense paid (20 ) (52 )
Total by operations 682 982
By investing activities
Proceeds from sale of equity investments 2,037 118
Acquisition of equity investments - (2,739 )
Expenditures on investment property (66 ) -
Expenditures on furnishings and equipment (6 ) -
Total by investing activities (2,621 )
By financing activities
Net advance (repayment) of credit facilities (2,199 ) 1,896
Purchase of share capital for cancellation (152 ) -
Dividends paid (345 ) (348 )
Total by financing activities (2,696 ) 1,548
Decrease in cash (49 ) (91 )
Cash - beginning of period 77 142
Cash - end of period 28 51
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
April 30, 2013
(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, 2013, 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, 2013. These policies have been consistently applied to all periods presented.
2. Equity investments
Apr 30 Jan 31
2013 2013
Veresen 26,820 25,660
Osum 13,195 14,487
Other equity investments 2,657 3,020
42,672 43,167
3. Credit facilities
Borrowing Balance Remaining borrowing availability Carrying value of collateral
Apr 30 Jan 31 Apr 30 Jan 31 Apr 30 Jan 31
2013 2013 2013 2013 2013 2013
Banker's acceptances 1,000 3,000
Bank demand loan 299 500
1,299 3,500 8,701 6,500 21,520 23,760
Broker's margin account - - 993 1,205 2,643 2,920
1,299 3,500 9,694 7,705 24,163 26,680
4. Subsequent Event
On June 7, 2013, the Company declared a regular dividend of 2.5¢ per share to shareholders of record June 21, 2013, payable July 5, 2013.
5. Operating segments
Quarter
Ended
Apr 30


Realty


Corporate

Inter-
segment


Total
Revenue 2013 936 711 (227 ) 1,420
2012 1,020 726 (233 ) 1,513
Property & administration 2013 432 385 (71 ) 746
expense 2012 525 380 (71 ) 834
Finance expense 2013 156 19 (156 ) 19
2012 162 50 (162 ) 50
Fair value change 2013 1,144 371 - 1,515
2012 (510 ) 39 - (471 )
Income tax recovery (expense) 2013 (403 ) 78 - (325 )
2012 48 21 - 69
Net earnings from operations 2013 1,089 756 - 1,845
& Comprehensive income 2012 (129 ) 356 - 227
Total assets 2013 31,444 63,874 (20,946 ) 74,372
2012 27,447 77,880 (18,440 ) 86,887
Total liabilities 2013 22,264 2,523 (20,946 ) 3,841
2012 22,040 8,243 (18,440 ) 11,843

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Gendis Inc.
James E. Cohen
President & Chief Executive Officer
(204)474-5200
(204)474-5201 (FAX)
finance@gendis.ca
www.gendis.ca

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