Gemini Corporation

Gemini Corporation

August 29, 2005 16:37 ET

Gemini Corporation Reports 2005 Second Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) -

Q2 Earnings Increase 88% Over Same Period Last Year

Gemini Corporation (TSX VENTURE:GKX), a leading provider of engineered solutions to an array of industry sectors, today announced its second quarter financial results for the period ended June 30, 2005.

Revenue in the second quarter totalled $18,059,000, a 109% increase over the $8,647,000 generated in the second quarter of 2004. This growth is a direct result of the buoyant oil & gas sector and the Corporation's successful penetration of new markets and the addition of new clients. Diversification efforts directed toward broadening our service capability and securing projects in the chemical, forestry and power generation sectors will provide improved revenue stability for the future. The acquisitions completed in the first half of 2005 will accelerate these diversification efforts and are expected to solidly contribute to our profitability.

Second quarter gross profit increased 85% to $4,713,000 from $2,552,000 in 2004. Earnings before interest and taxes (EBIT) for the second quarter improved $969,000 or 114% to $1,822,000 from $853,000 in the second quarter last year and are nearly $1,000,000 greater than the 2005 first quarter EBIT.

Net earnings increased 88% to $960,000 (2.9 cents per share) compared to the $510,000 (1.6 cents per share) achieved in the same period last year.

Management's focus upon optimizing earnings as the Corporation continues to grow is showing positive results. Business processes are being reviewed and streamlined on a priority basis to enhance internal controls and improve future profitability. This initial review and enhancement program will continue into early 2006.

Gemini's outlook for the balance of 2005 is optimistic as our clients in various industries continue to indicate strong demand for project completions. 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 of oil & gas and industrial facilities 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

Gemini's 2005 second-quarter results will be filed with SEDAR at by August 29, 2005.


Three Months Ended Six Months Ended
Operating Highlights ($'000) June 30, June 30, June 30, June 30,
2005 2004 2005 2004

Revenue $ 18,059 $ 8,647 $ 30,193 $ 14,795

Gross profit 4,713 2,552 7,996 4,864

Earnings before interest & taxes 1,822 853 2,693 1,529

Net earnings 960 510 1,490 958

Earnings per share (basic) $ 0.029 $ 0.016 $ 0.046 $ 0.030

Earnings per share (diluted) $ 0.028 $ 0.016 $ 0.043 $ 0.028

Operating cash flow (a) $ 1,200 $ 914 $ 2,063 $ 1,658
(excludes working capital changes)

Operating cash flow per share $ 0.037 $ 0.030 $ 0.065 $ 0.054

Balance Sheet Highlights ($'000) June 30, 2005 December 31, 2004

Working capital $ 4,577 $ 3,433
(adjusted for long-term
portion of demand loans)

Total assets 23,370 16,649

Shareholders equity 8,994 6,498

(a) 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.

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

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