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Press release from Marketwire

Gendis Inc. Announces Second Quarter Results

Friday, September 06, 2013

Gendis Inc. Announces Second Quarter Results

15:04 EDT Friday, September 06, 2013

WINNIPEG, MANITOBA--(Marketwired - Sept. 6, 2013) - Gendis Inc. (TSX:GDS) today announced its financial results for the 2nd quarter ended July 31, 2013.

Revenue for the 2nd quarter was $1,639,000 compared to $1,527,000 for last year's 2nd quarter. Revenue less expense for the 2nd quarter was $627,000 compared to $367,000 for last year's 2nd quarter. Net loss for the 2nd quarter was $3,740,000 ($0.27 per share) compared to a loss of $7,736,000 ($0.56 per share) for last year's 2nd quarter.

Revenue year-to-date was $3,059,000 compared to $3,040,000 year-to-date last year. Revenue less expense year-to-date was $1,282,000 compared to $988,000 year-to-date last year. Net loss year-to-date was $1,895,000 ($0.14 per share) compared to a loss of $7,509,000 ($0.54 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 equity investments and investment properties with the attendant effect on deferred income taxes. Also, the 2nd quarter last year included the settlement with our insurer on legal claims in a prior year.

Condensed summarized information is as follows:

Quarter ended YTD ended
in millions of Canadian dollars Jul 31 Jul 31 Jul 31 Jul 31
except per share 2013 2012 2013 2012
Revenue
Lease rental revenue 1.2 1.0 2.1 2.0
Dividends 0.5 0.5 1.0 1.0
Total revenue 1.7 1.5 3.1 3.0
Expense
Property 0.7 0.6 1.0 1.0
Administration & finance 0.3 0.5 0.8 1.0
Total expense 1.0 1.1 1.8 2.0
Revenue less expense 0.7 0.4 1.3 1.0
Fair value change:
Veresen (2.8 ) (4.5 ) (1.7) (4.5 )
Osum - (7.2 ) (0.4) (7.2 )
Other equity investments 0.7 (1.0 ) 0.4 (1.0 )
Investment properties (2.9 ) 1.2 (1.8) 0.7
Total fair value change (5.0 ) (11.5 ) (3.5) (12.0 )
Settlement of legal claims - 1.5 - 1.5
Income tax recovery 0.6 1.9 0.3 2.0
Net loss (3.7 ) (7.7 ) (1.9) (7.5 )
Loss per share $ (0.27 ) $ (0.56 ) $ (0.14) $ (0.54 )
Jul 31 Jan 31 Jul 31
in millions of Canadian dollars 2013 2013 2012
Fair value of investments:
Veresen 24.0 25.7 25.6
Osum 13.1 14.5 18.4
Other equity investments 3.4 3.0 1.7
Investment properties 28.1 29.8 28.3
Other assets 0.9 2.0 0.9
Debt & payables 3.0 5.2 5.4
Deferred tax payable 0.2 0.6 2.6
Shareholders' equity 66.3 69.2 66.9
Quarter ended Year to date ended
Jul 31 Jul 31 Jul 31 Jul 31
in millions of Canadian dollars 2013 2012 2013 2012
Cash flow from:
Operations
Cash receipts 1.6 1.3 3.2 3.1
Cash disbursements & finance expense (1.3 ) (1.4 ) (2.0 ) (2.2 )
Settlement of legal claims - 1.5 - 1.5
Income taxes recovered (paid) - 0.7 (0.2 ) 0.7
Investing
Proceeds on sales of investments 0.1 - 2.1 0.1
Purchase of investments - - - (2.8 )
Expenditures on investment properties - - (0.1 ) -
Financing
Increase (decrease) in debt 0.2 (1.7 ) (2.0 ) 0.2
Purchase of share capital for cancellation (0.2 ) - (0.3 ) -
Dividends (0.3 ) (0.4 ) (0.7 ) (0.7 )
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
Jul 31 Jan 31 Jul 31
(unaudited - thousands of Canadian dollars) 2013 2013 2012
ASSETS
Current assets
Cash 108 77 58
Receivables 719 1,929 812
Total current assets 827 2,006 870
Non-current assets
Equity investments (note 2) 40,506 43,167 45,737
Investment property 28,075 29,775 28,280
Furnishings and equipment 54 48 44
Total non-current assets 68,635 72,990 74,061
Total assets 69,462 74,996 74,931
LIABILITIES
Current liabilities
Credit facilities (note 3) 1,499 3,500 3,794
Payables 528 763 615
Total current liabilities 2,027 4,263 4,409
Non-current liabilities
Post employment benefit obligation 972 972 956
Deferred income tax payable 186 578 2,626
Total non-current liabilities 1,158 1,550 3,582
Total liabilities 3,185 5,813 7,991
SHAREHOLDERS' EQUITY 66,277 69,183 66,940
Total liabilities and shareholders' equity 69,462 74,996 74,931
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED JULY 31
(unaudited - thousands of Canadian Quarter ended Year-to-date ended
dollars except for share data) 2013 2012 2013 2012
Revenue
Lease rentals 1,139 1,025 2,058 2,028
Dividends 500 502 1,001 1,012
Total revenue 1,639 1,527 3,059 3,040
Expense
Property 658 572 1,036 1,043
Administration 337 534 705 905
Finance 17 54 36 104
Total expense 1,012 1,160 1,777 2,052
Revenue less expense 627 367 1,282 988
Fair value change
Equity investments (2,059 ) (12,735 ) (1,688 ) (12,696 )
Investment property (2,924 ) 1,230 (1,780 ) 720
Total fair value change (4,983 ) (11,505 ) (3,468 ) (11,976 )
Settlement of legal claims - 1,475 - 1,483
Loss before income tax (4,356 ) (9,663 ) (2,186 ) (9,505 )
Income tax recovery 616 1,927 291 1,996
Loss from operations and comprehensive (loss)
(3,740
)
(7,736
)
(1,895
)
(7,509
)
Net loss from operations per share $ (0.27 ) $ (0.56 ) $ (0.14 ) $ (0.54 )
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 loss (7,509 ) (7,509 )
Purchase of share capital for cancellation
(6
)
(6
)
(13
)
(19
)
Dividends paid (697 ) (697 )
Balance - July 31, 2013 13,931 14,644 52,296 66,940
For the remainder of the year:
Comprehensive income 3,291 3,291
Purchase of share capital for cancellation
(115
)
(121
)
(233
)
(354
)
Dividends paid (694 ) (694 )
Balance - January 31, 2013 13,816 14,523 54,660 69,183
Comprehensive loss (1,895 ) (1,895 )
Purchase of share capital for cancellation
(104
)
(109
)
(214
)
(323
)
Dividends paid (688 ) (688 )
Balance - July 31, 2013 13,712 14,414 51,863 66,277
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED JULY 31
(unaudited - thousands of Canadian dollars) Quarter ended Year-to-date ended
2013 2012 2013 2012
Changes in cash position
By operations
Cash receipts 1,613 1,322 3,241 3,085
Cash disbursements (1,285 ) (1,371 ) (2,011 ) (2,108 )
Settlement of legal claims - 1,475 - 1,483
Income taxes (paid) recovered - 706 (203 ) 706
Finance expense paid (16 ) (55 ) (36 ) (107 )
Total by operations 311 2,077 991 3,059
By investing activities
Proceeds from sale of equity investments
107

-

2,144

118
Acquisition of equity investments - - - (2,739 )
Expenditures on investment property (14 ) - (80 ) -
Expenditures on furnishings and equipment
(9
)
-

(15
)
-
Total by investing activities 84 - 2,049 (2,621 )
By financing activities
Net advance (repayment) of credit facilities
198

(1,702
)
(1,998
)
194
Purchase of share capital for cancellation
(171
)
(19
)
(323
)
(19
)
Dividends paid (343 ) (349 ) (688 ) (697 )
Total by financing activities (316 ) (2,070 ) (3,009 ) (522 )
Increase (decrease) in cash 80 7 31 (84 )
Cash - beginning of period 28 51 77 142
Cash - end of period 108 58 108 58

Gendis Inc.

Notes to the unaudited Interim condensed Financial Statements

January 31, 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. Investments
Jul 31 Jan 31
2013 2013
Veresen 24,000 25,660
Osum 13,088 14,487
Other equity investments 3,418 3,020
40,506 43,167
3. Credit facilities
Borrowing Balance Remaining borrowing availability Carrying value of collateral
Jul 31 Jan 31 Jul 31 Jan 31 Jul 31 Jan 31
2013 2013 2013 2013 2013 2013
Banker's acceptances 1,499 3,000
Bank demand loan - 500
1,499 3,500 8,500 6,500 22,315 23,760
Broker's margin account - - 889 1,205 2,365 2,920
1,499 3,500 9,389 7,705 24,680 26,680

4. Subsequent Event

On September 6, 2013, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 20, 2013, payable October 4, 2013.

5. Operating segments
Quarter
Ended
Jul 31


Realty


Corporate

Inter-
segment


Total
Revenue 2013 1,157 710 (228 ) 1,639
2012 1,043 718 (234 ) 1,527
Property & administration 2013 713 353 (71 ) 995
Expense 2012 626 552 (72 ) 1,106
Finance expense 2013 157 17 (157 ) 17
2012 162 54 (162 ) 54
Fair value change 2013 (2,924 ) (2,059 ) - (4,983 )
2012 1,230 (12,735 ) - (11,505 )
Settlement of legal claims 2013 - - - -
2012 - 1,475 - 1,475
Income tax recovery (expense) 2013 712 (96 ) - 616
2012 (401 ) 2,328 - 1,927
Net earnings from operations 2013 (1,925 ) (1,815 ) - (3,740 )
& Comprehensive income 2012 1,084 (8,820 ) - (7,736 )
YTD
Ended
Jul 31


Realty


Corporate

Inter-
segment


Total
Revenue 2013 2,093 1,421 (455 ) 3,059
2012 2,063 1,444 (467 ) 3,040
Property & administration 2013 1,145 738 (142 ) 1,741
Expense 2012 1,151 940 (143 ) 1,948
Finance expense 2013 313 36 (313 ) 36
2012 324 104 (324 ) 104
Fair value change 2013 (1,780 ) (1,688 ) - (3,468 )
2012 720 (12,696 ) - (11,976 )
Settlement of legal claims 2013 - - - -
2012 - 1,483 - 1,483
Income tax recovery (expense) 2013 309 (18 ) - 291
2012 (353 ) 2,349 - 1,996
Net earnings from operations 2013 (836 ) (1,059 ) - (1,895 )
& Comprehensive income 2012 955 (8,464 ) - (7,509 )
Total assets 2013 28,610 62,260 (21,408 ) 69,462
2012 28,932 64,629 (18,630 ) 74,931
Total liabilities 2013 21,355 3,238 (21,408 ) 3,185
2012 22,441 4,180 (18,630 ) 7,991

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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