Gemini Corporation
TSX VENTURE : GKX

Gemini Corporation

August 19, 2010 16:41 ET

Gemini Corporation Reports 2010 Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 19, 2010) - Gemini Corporation (TSX VENTURE:GKX) announces its second quarter financial results for the period ended June 30, 2010.

Revenue in the second quarter totalled $18,187,000, which was 19% higher than the $15,226,000 achieved in the second quarter of 2009. This brings year to date revenues to $36,231,000 for 2010 compared to $30,022,000 for 2009. The anticipated softening of second quarter revenues for the Field Solutions segment did not materialize as project activity remained stable compared to the first quarter. The current backlog for the third quarter is somewhat weaker overall, although the fourth quarter work for the Engineered Solutions segment is building and the last half of the year is expected to finish reasonably strong.

Second quarter gross profits for 2010 were $4,167,000 compared to $4,351,000 in the same period last year. Margins for 2010 are tracking as planned, although certain one-time restructuring costs were incurred in the second quarter that elevated general and administrative expenses more than expected and resulted in lower net earnings. Second quarter net earnings were $186,000 (0.5 cents per share) in 2010 compared to $320,000 (1.0 cents per share) in 2009. Year to date net earnings now total $504,000 (1.4 cents per share) for 2010 compared to $417,000 (1.2 cents per share) for the same period last year.

"The second quarter results were lower than anticipated, but there are encouraging signs that the remainder of 2010 will strengthen sufficiently to generate reasonable profitability for the year", said Doug Lautermilch, Gemini's President and CEO. "Our drive toward the "One Brand, One Company, One Culture" theme we set out at the start of the year is progressing well. We have taken some additional steps in the second quarter to reshape the organization around this theme and reduce fixed costs in the process. Our emphasis on client relationships is being embraced by the entire organization and this is helping to drive increases in bidding activity and project backlogs."

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 field solutions and engineered solutions through either standalone or integrated service approaches to a broadening client base in the energy, industrial and environmental sectors. The Corporation's principal target markets are on-shore oil and gas, in-situ heavy oil, heavy industrial, power and co-generation, 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 www.geminicorp.ca.

Gemini's 2010 second-quarter report will be filed with SEDAR at http://www.sedar.com by August 20, 2010.

CONSOLIDATED FINANCIAL HIGHLIGHTS
Operating Highlights ($'000) Three Months Ended Six Months Ended
June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009
Revenue $ 18,187 $ 15,226 $ 36,231 $ 30,022
Gross profit   4,167   4,351   8,261   7,952
Earnings before interest & taxes   350   524   867   722
Net earnings $ 186 $ 320 $ 504 $ 417
Earnings per share (basic) $ 0.005 $ 0.010 $ 0.014 $ 0.012
Earnings per share (diluted) $ 0.005 $ 0.010 $ 0.014 $ 0.012
                 
Operating cash flow *(excludes working capital changes) $ 451 $ 724 $ 1,018 $ 1,125
Operating cash flow per share $ 0.013 $ 0.021 $ 0.029 $ 0.032
     
     
Balance Sheet Highlights ($'000) June 30,2010 December 31, 2009
Working capital $ 12,655 $ 11,793
Total assets   25,713   32,873
Shareholders' equity   15,765   15,162
* 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.

Disclaimer
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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