Gemini Corporation

Gemini Corporation

November 25, 2008 16:01 ET

Gemini Corporation Reports 2008 Third Quarter Results

Net earnings improve 34% over the same period last year

CALGARY, ALBERTA--(Marketwire - Nov. 25, 2008) - Gemini Corporation (TSX VENTURE:GKX) today announced its third quarter financial results for the period ended September 30, 2008.

Revenue in the third quarter totalled $20,810,000, a 5% increase over the $19,780,000 achieved in the third quarter of 2007. Revenues to date for 2008 total $59,383,000 compared to $50,472,000 last year, which is an 18% increase year over year. The Corporation's strong backlog of work is providing the foundation for these revenue gains. Engineering revenues have regained some momentum and are expected to continue improving into 2009. Field Services is expected to slow somewhat as existing projects are completed and our operations transition onto new projects over the coming quarters.

The current economic uncertainty is presenting some challenges for determining which projects will proceed in 2009 and when they will commence, but most clients are continuing to indicate reasonably solid activity levels going forward. The emphasis on longer-term project opportunities is providing a greater degree of stability to the revenues and there are numerous projects in the planning phases within both segments that are expected to proceed. The Corporation is continuing to recruit personnel in its Engineering segment to support client project requirements into 2009.

Third quarter gross profits for 2008 were $4.1 million compared to the $3.8 million achieved in the same period last year. This brings year to date gross profits to $10.9 million for 2008 compared to $10.3 million in 2007. Gross profits are continuing to improve as utilization rates within Engineering return to traditional levels and as additional project management improvements are instituted within Field Services.

Net earnings for the third quarter of 2008 were $556,000 (1.5 cents per share) or 34% higher than the net earnings of $415,000 (1.1 cents per share) for the same quarter last year. This improves the Corporation's year to date net earnings to more than $1 million greater than the same period in 2007. This trend is expected to continue into the fourth quarter and result in higher annual earnings for 2008 compared to 2007.

"We have made some solid operational progress so far in 2008", said Carl Johnson, Gemini's President and CEO. "Our challenge now is to ensure that the current economic turmoil does not throw us off track from the path we have been able to establish. Remaining focussed on the execution of our strategy will be key to our success as we navigate through the uncertainty ahead."

About Gemini Corporation

Gemini Corporation offers a wide range of interrelated services including engineering, fabrication, construction, operations and maintenance of oil & gas and industrial facilities within Canada and internationally. The Corporation is a leading provider of engineered solutions and field services through either stand-alone or integrated, full-service approaches to a broadening client base in an array of industry sectors.

Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For more information about the Corporation and its services, go to

Gemini's 2008 third quarter report will be filed with SEDAR at by November 26, 2008.

Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
Operating Highlights ($'000) 2008 2007 2008 2007

Revenue $ 20,810 $ 19,780 $ 59,383 $ 50,472
Gross profit 4,094 3,814 10,923 10,250
Earnings before interest & taxes 955 830 1,532 154
Net earnings (loss) 556 415 774 (267)
Earnings per share (basic) $ 0.015 $ 0.011 $ 0.021 $ (0.009)
Earnings per share (diluted) $ 0.015 $ 0.011 $ 0.021 $ (0.009)

Operating cash flow (1) $ 924 $ 1,071 $ 1,678 $ 1,047
(excludes working capital
Operating cash flow per share $ 0.027 $ 0.031 $ 0.048 $ 0.030

Balance Sheet Highlights ($'000) September 30, December 31,
2008 2007
Working capital $ 9,202 $ 7,839
Total assets 33,060 26,739
Shareholders' equity 14,057 12,900

(1) Operating cash flow is a non-GAAP financial measure which does not have
a standard meaning and therefore may not be comparable to similar
measures presented by other companies.


This news release contains forward looking information that represents Gemini's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or Gemini's future economic performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to Gemini's performance and competition within the sectors in which it competes, the continuation of the current regulatory and tax regimes in the jurisdictions in which Gemini operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to client service demand, field service costs, labour rates, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted or suggested. The Corporation does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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