Gemini Corporation

Gemini Corporation

November 28, 2007 16:05 ET

Gemini Corporation Reports 2007 Third Quarter Results

Q3 profitability regained in challenging market conditions

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2007) - Gemini Corporation (TSX VENTURE:GKX) today announced its third quarter financial results for the period ended September 30, 2007.

Despite the market uncertainties experienced throughout the third quarter, Gemini was able to achieve net earnings of $415,000 (1.1 cents per share), thus improving the year to date performance.

Revenue in the third quarter totalled $19,780,000, a 14% increase over the $17,400,000 generated in the third quarter of 2006. The improved third quarter revenues were the result of strengthening demand for Gemini's field services. As indicated in previous releases, the backlog of heavy oil projects for this segment is greater than past quarters, which is expected to maintain robust activity through 2008.

The general uncertainty throughout the conventional oil and gas market continues to have a negative impact on the Corporation's engineering segment. Efforts to secure opportunities in the heavy oil and alternate energy sectors are continuing, but the process from identifying an opportunity until work is released takes time and with the industry uncertainties this period is increasing. In the meantime, balancing personnel utilization with resource retention is management's focus until project volumes strengthen.

Gross profits are holding steady at 20% so far in 2007 compared to 19% achieved in the same period of 2006. Competitive pricing pressures have increased throughout the market, but actions taken to improve project execution and efficiency have helped to offset the impact of these pressures. In addition, the management of fixed costs is an ongoing priority to ensure adequate infrastructure is available for current operations as well as future requirements.

"Our current backlog of long-term projects within our Field Services segment is helping to bring stability and a return to profitability for these operations", said Carl Johnson, Gemini's President and CEO. "We are encouraged by the quality and quantity of opportunities that have been identified to regain the growth momentum within our Engineering segment in the coming year. The current market uncertainty driven by royalty restructuring, the high Canadian dollar, and weak natural gas prices present some challenges which we will have to carefully monitor as we plan our activities for the future."

About Gemini Corporation

Gemini Corporation offers a wide range of interrelated services including project management, 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 2007 third-quarter report will be filed with SEDAR at by November 29, 2007.

(Unaudited - Canadian Dollars)

Operating Highlights ($'000) Three Months Ended Nine Months Ended

Sept 30, Sept 30, Sept 30, Sept 30,
2007 2006 2007 2006

Revenue $ 19,780 $ 17,400 $ 50,472 $ 63,737
Gross profit 3,814 4,063 10,250 12,317
Earnings (loss) before
interest & taxes 830 686 (196) 2,707
Net earnings (loss) 415 309 (267) 1,452
Earnings per share (basic) $ 0.011 $ 0.008 $ (0.009) $ 0.041
Earnings per share (diluted) $ 0.011 $ 0.008 $ (0.009) $ 0.040

Operating cash flow (i)
(excludes working capital
changes) $ 1,071 $ 851 $ 1,047 $ 3,001
Operating cash flow per share $ 0.031 $ 0.025 $ 0.030 $ 0.088

Balance Sheet Highlights ($'000) September 30, December 31,
2007 2006

Working capital $ 7,222 $ 8,145
Total assets 28,447 27,245
Shareholders' equity 12,726 12,649

(i) 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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