Gemini Corporation
TSX VENTURE : GKX

Gemini Corporation

May 15, 2008 11:47 ET

Gemini Corporation Reports 2008 First Quarter Results

Backlog continues to grow into 2009

CALGARY, ALBERTA--(Marketwire - May 15, 2008) - Gemini Corporation (TSX VENTURE:GKX) today announced its first quarter financial results for the period ended March 31, 2008.

Revenue in the first quarter totalled $18,721,000, which is a 9.5% increase over the $17,098,000 achieved in the first quarter of 2007. This increase reflects a strengthening of activity in Gemini's Field Services segment where revenues improved nearly 39%, while Engineering revenues declined 33% for the quarter. The growth in Field Services revenue related to the previously announced strength in its backlog of heavy oil projects for both fabrication and construction. In addition, the volume of maintenance work completed in the quarter was up significantly on a number of unplanned client shutdowns. The Engineering shortfall was a result of ongoing client spending constraints and start-up delays on certain new projects. Engineering is expected to be closer to prior year revenues in the second quarter and should recover the first quarter shortfall by year end.

Sales efforts within Field Services have been focused on filling any available capacity over the remainder of 2008, while Engineering has concentrated on building its backlog of project opportunities. Both have been successful in their efforts with Field Services building upon their already sizable backlog and Engineering having recently achieved a record backlog of projects which will carry on into 2009. This workload is generally of a longer term nature, which will allow both operations to balance their resources much more effectively going forward.

First quarter gross profits for 2008 were $3.4 million, matching the level achieved in the same period last year. This is an indication of stabilizing operational performance that is expected to translate into better profitability as revenues increase over the balance of the year. Also supporting this perspective is a 14% reduction in general and administrative expenses to $3.0 million from $3.5 million last year. These fixed costs are expected to remain consistent as revenues strengthen in the coming quarters. Overall, this resulted in Gemini achieving a breakeven position (0.0 cents per share) compared to a net loss of $366,000 (1.1 cents per share) in the first quarter of 2007.

"We achieved breakeven in the first quarter and are very encouraged by the backlog we have been able to establish", said Carl Johnson, Gemini's President and CEO. "Our objective now is to start consuming this backlog to produce higher revenues and earnings for the remaining 2008 quarters. The project work we have secured extends for longer periods than we have traditionally enjoyed, which will help us in forecasting our resources and optimizing our utilization rates. We also intend to keep up our aggressive sales efforts to maintain a strong backlog well into 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 www.geminicorp.ab.ca.

Gemini's 2008 first-quarter report will be filed with SEDAR at http://www.sedar.com by May 20, 2008.



CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months Ended
Operating Highlights ($'000) March 31, March 31,
2008 2007
Revenue $ 18,721 $ 17,098
Gross profit 3,450 3,392
Earnings (loss) before interest & taxes 212 (359)
Net earnings (loss) 8 (366)
Earnings per share (basic) $ 0.00 $ (0.01)
Earnings per share (diluted) $ 0.00 $ (0.01)

Operating cash flow (1)
(excludes working capital changes) $ 479 $ 11
Operating cash flow per share $ 0.01 $ 0.00


Balance Sheet Highlights ($'000) March 31, December 31,
2008 2007
Working capital $ 7,948 $ 7,839
Total assets 29,359 26,739
Shareholders' equity 13,086 12,900

(1) 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.


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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