Gemini Corporation

Gemini Corporation

August 28, 2009 14:00 ET

Gemini Corporation Reports 2009 Second Quarter Results

Gross margins improve despite the more competitive environment

CALGARY, ALBERTA--(Marketwire - Aug. 28, 2009) - Gemini Corporation (TSX VENTURE:GKX) today announced its second quarter financial results for the period ended June 30, 2009.

Revenue in the second quarter totalled $15,226,000, a 23% decline from the $19,852,000 achieved in the same period of 2008, bringing year to date revenues for 2009 to $30,022,000 compared to $38,574,000 for 2008. The ongoing economic uncertainty has significantly impacted new construction activity in the oil and gas sector, which has dampened revenues for the Corporation's Field Services segment and has lead to these declines. Gemini's Engineering segment has been impacted less severely by the recession and is anticipating revenues will remain at or near the levels achieved in the second quarter. Demand for services related to maintenance, debottlenecking and upgrades are continuing to generate opportunities. Sales and marketing efforts are focussing on existing client opportunities as well as new markets and new clients to continue broadening the revenue base.

Gross profits for the second quarter of 2009 were $4,351,000 or 28% of revenue compared to $3,379,000 or 17% of revenue in the same period last year. This improvement continues to be the result of greater staff utilization rates within Engineering and improving project cost controls within Field Services. Client pressures to reduce costs are having an impact upon margins, but important steps are being taken to mitigate the effects of these pressures through increased efficiencies and enhanced use of existing infrastructure.

"Given the market conditions in the second quarter, we are encouraged by the financial results we were able to achieve", said Carl Johnson, Gemini's Executive Chairman. "Our emphasis on providing quality services in a safe manner, while improving utilization and cost controls is having a positive impact upon our profitability in the midst of this challenging economy."

"As the new member of Gemini's executive team, I am excited by the prospects for the organization", commented Doug Lautermilch, Gemini's new President and CEO. "We are in a financially strong position to take advantage of the inevitable turnaround in our markets and we are currently re-examining our strategic plans to ensure they align with the needs of our clients and the anticipated economic conditions for the next few years."

About Gemini Corporation

Gemini Corporation offers a wide range of interrelated services including project management, engineering, fabrication, construction, 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 service approaches to a broadening client base in an array of industry sectors. The Corporation's principal target markets are conventional oil and gas, unconventional gas, heavy oil, industrial, and renewable energy.

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 2009 second quarter report will be filed with SEDAR at on August 28, 2009.


Three Months Ended Six Months Ended
Operating Highlights ($'000) June 30, June 30, June 30, June 30,
2009 2008 2009 2008
Revenue $ 15,226 $ 19,852 $ 30,022 $ 38,574

Gross profit 4,351 3,379 7,952 6,829

Earnings before interest
& taxes 524 365 722 577

Net earnings $ 320 $ 210 $ 417 $ 218

Earnings per share
(basic) $ 0.009 $ 0.005 $ 0.012 $ 0.005

Earnings per share
(diluted) $ 0.009 $ 0.005 $ 0.012 $ 0.005

Operating cash flow(1)
(excludes working capital
changes) $ 724 $ 274 $ 1,125 $ 754

Operating cash flow per
share $ 0.021 $ 0.008 $ 0.032 $ 0.022

Balance Sheet Highlights ($'000) June 30, December 31,
2009 2008

Working capital $ 11,898 $ 12,403

Total assets 24,425 28,554

Shareholders' equity 15,584 16,180

(1) Operating cash flow and operating cash flow per share are non-GAAP
financial measures which do not have a standard meaning and therefore
may not be comparable to similar measures presented by other companies.
The Corporation provides these measures in its quarterly news releases
to indicate the amount of cash generated for operating purposes during
the period.


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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