Gemini Corporation
TSX VENTURE : GKX

Gemini Corporation

November 29, 2010 16:05 ET

Gemini Corporation Reports 2010 Third Quarter Results

Positioning for sustainable growth

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Gemini Corporation (TSX VENTURE:GKX) announces its third quarter financial results for the period ended September 30, 2010.

Revenue in the third quarter totalled $20,967,000, which was 13% lower than the $23,991,000 achieved in the third quarter of 2009. This brings year to date revenues to $57,198,000 for 2010 compared to $54,013,000 for 2009. Third quarter revenues weakened as a result of slower construction activity compared to the same period last year, however, third quarter revenues increased over the second quarter results. Project delays and fewer than expected project opportunities have led to a reduction in backlogs that are anticipated to remain weak through to the second quarter of 2011. The predicted strengthening of fourth quarter activity for the Engineered Solutions segment is now expected to remain subdued until early in the New Year. Business development initiatives directed at building the Corporation's backlog are increasing Gemini's profile in the market and generating a marked increase in client engagement.

Third quarter gross profits for 2010 were $4,095,000 compared to $3,833,000 in the same period last year. Margins for 2010 are continuing to outpace those achieved in 2009 and there are no obvious issues that should cause them to change in the near term. The restructuring initiatives undertaken in the second quarter had the desired effect of reducing fixed costs by nearly $300,000 in the third quarter. Third quarter net earnings were $375,000 (1.1¢ per share) in 2010 compared to a loss of $45,000 (0.1¢ per share) in 2009. Year to date net earnings now total $879,000 (2.5¢ per share) for 2010 compared to $373,000 (1.1¢ per share) for the same period last year.

"The third quarter demand for Gemini services increased in line with expectations", said Doug Lautermilch, Gemini's President and CEO. "We are continuing to emphasize our "One Brand, One Company, One Culture" theme as we further develop client relationships in our drive toward improving profitability."

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 third-quarter report will be filed with SEDAR at http://www.sedar.com by November 29, 2010.

CONSOLIDATED FINANCIAL HIGHLIGHTS

Operating Highlights ($'000)   Three Months Ended     Nine Months Ended
  Sept 30, 2010     Sept 30, 2009     Sept 30, 2010     Sept 30, 2009
Revenue $ 20,967   $ 23,991   $ 57,198   $ 54,013
Gross profit   4,095     3,833     12,356     11,785
Earnings before interest & taxes   622     35     1,490     757
Net earnings (loss) $ 375   $ (45)   $ 879   $ 373
Earnings per share (basic) $ 0.011   $ (0.001)   $ 0.025   $ 0.011
Earnings per share (diluted) $ 0.011   $ (0.001)   $ 0.025   $ 0.011
                       
Operating cash flow *(excludes working capital changes) $ 673   $ 350   $ 1,723   $ 1,475
Operating cash flow per share * $ 0.019   $ 0.010   $ 0.049   $ 0.042
                       
Balance Sheet Highlights ($'000) September 30,2010   December 31, 2009
Working capital $ 13,263   $ 11,793
Total assets 28,856   32,873
Shareholders' equity 16,188   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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