Gemini Corporation
TSX VENTURE : GKX

Gemini Corporation

May 24, 2005 16:09 ET

Gemini Corporation Reports 2005 First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - May 24, 2005) -

Revenues nearly double those achieved in Q1 2004

Gemini Corporation (TSX VENTURE:GKX), a leading provider of engineered solutions to an array of industry sectors, today announced its first quarter financial results for the period ended March 31, 2005.

Revenues in the first quarter totalled $12,134,000, a 97% gain over the $6,148,000 generated in the first quarter of 2004. This increase is attributable to a 44% growth in engineering services, a 253% gain in fabrication/construction activities and the addition of maintenance to the Corporation's suite of services. The revenue growth is a direct result of the buoyant economy and strong activity levels in the Corporation's traditional markets coupled with its success in executing its strategic plan to develop business from new markets, such as power generation and forestry. The first quarter entry into plant maintenance, specifically in Fort Saskatchewan, also provides new business and exposure for all of the Corporation's services to a large, new client base.

First quarter gross profit increased 63% to $3,751,000 from $2,304,000 in 2004. Earnings before interest and taxes (EBIT) for the quarter improved $195,000 or 29% compared to the first quarter last year and were significantly better than the EBIT achieved in the fourth quarter of 2004.

Net earnings increased 18.2% to $530,000 (1.6 cents per share) compared to the $449,000 (1.4 cents per share) achieved in the same period last year.

Management is intent upon optimizing earnings as the Corporation continues to grow. A major focus has been placed upon business process improvement to develop and enhance the Corporation's internal control structure. Resources have been deployed to begin streamlining operations and improve future profitability. This effort will establish the infrastructure necessary to manage continued growth and realize the full value generated by this growth.

Gemini's outlook for the remainder of 2005 is optimistic based upon the strength of commodity prices and the high activity levels of our clients in various industries. The increasing breadth of services offered to an expanding client base will provide revenue growth, positive earnings and long-term stability for the Corporation.

Statements in this release which describe Gemini's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Gemini to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Gemini may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

About Gemini Corporation

Gemini Corporation is a growth-oriented company offering a wide range of interrelated services including project management, engineering, fabrication, installation, operations and maintenance within Canada and internationally. The Corporation is a leading provider of engineered solutions 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 http://www.geminicorp.ab.ca.

Gemini's 2005 first-quarter results will be filed with SEDAR at http://www.sedar.com by May 30, 2005.



CONSOLIDATED FINANCIAL HIGHLIGHTS

First Quarter First Quarter Fourth Quarter
2005 2004 2004

Revenues $ 12,134,000 $ 6,148,000 $ 11,098,000

Gross profit $ 3,751,000 $ 2,304,000 $ 1,124,000

Earnings (loss) before
interest & taxes $ 871,000 $ 676,000 $ (1,353,000)

Net earnings (loss) $ 530,000 $ 449,000 $ (886,000)

Earnings per share (basic) $ 0.016 $ 0.014 $ (0.029)

Earnings per share
(diluted) $ 0.015 $ 0.013 $ (0.028)

Operating cash flow
(excludes working capital
changes) $ 863,000 $ 744,000 $ (1,076,000)

Operating cash flow per
share $ 0.027 $ 0.024 $ (0.035)

Working capital (adjusted
for long-term portion of
demand loans) $ 3,598,000 $ 3,400,000 $ 3,433,000

Total assets $ 19,005,000 $ 9,527,000 $ 16,649,000

Shareholders' equity $ 7,776,000 $ 5,663,000 $ 6,498,000



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

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