Gemini Corporation

Gemini Corporation

November 24, 2011 18:37 ET

Gemini Corporation Reports 2011 Third Quarter Results

Increasing market activity supports growing revenue levels

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2011) - Gemini Corporation (TSX VENTURE:GKX) announces its third quarter financial results for the period ended September 30, 2011.

Revenue in the third quarter of 2011 totalled $18,845,000, which was a 10% decline from the $20,967,000 achieved in the third quarter of 2010. This represented a continuing trend of improved quarterly revenue levels for 2011, although year to date revenue of $45,429,000 still trails last year's results for the same period by 21%. The quarterly and year to date shortfall in revenue is due to significantly reduced field construction work. This has been driven by weak market conditions and management's decision to lessen the Corporation's exposure to risks associated with direct-hire field construction projects. Concentrated efforts have been directed toward expanding the engineering, maintenance and fabrication operations. The growth in revenue from these operations has not fully offset the reduction in construction work, but it is expected that this should be achieved in 2012.

Third quarter gross profit for 2011 was $3,295,000 compared to $4,127,000 for the same period of 2010. Year to date gross profit for 2011 of $8,622,000 remains significantly below the $12,455,000 achieved last year. The shortfall in revenue combined with competitive pricing pressures, labour cost escalation, and less than optimum utilization rates has significantly reduced gross profit. Adjusting the operating structure of the Corporation has provided sufficient fixed cost relief to bring the quarterly net income results to near breakeven. Emphasis will continue to be on growing revenues at acceptable prices and optimizing utilization rates in order to regain sustainable profitability. The third quarter net loss of $122,000 (0.3¢ per share) is a slight improvement over the loss experienced in the second quarter, but it increases the year to date net loss to $1,269,000 (3.6¢ per share).

"This 2011 year continues to be very challenging from many perspectives, but on a more positive note, the demand for our services is strong and our operating structure has been aligned to pursue an increasing share of the available project work", stated Doug Lautermilch, Gemini's President and CEO. "Our challenge for the fourth quarter of 2011 and into 2012 is to maximize the effectiveness of our business development initiatives and to carefully manage our utilization and costs to ensure we achieve profitability."

About Gemini Corporation

Gemini Corporation is a professional services firm that designs, builds and maintains energy and industrial facilities. Founded in 1982, Gemini provides services on either a standalone basis or by combining engineering and field service capabilities to increase project efficiency and provide a single point of accountability. The Corporation's principal target markets are conventional and unconventional oil and gas, in-situ heavy oil, and heavy industrial facilities.

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 2011 third quarter financial report will be filed with SEDAR at by November 25, 2011.


Operating Highlights ($'000) Three Months Ended Nine Months Ended
Sept 30, 2011 Sept 30, 2010 Sept 30, 2011 Sept 30, 2010
Revenue $ 18,845 $ 20,967 $ 45,429 $ 57,198
Gross profit 3,295 4,127 8,622 12,455
Income before interest & taxes (99 ) 632 (1,572 ) 1,525
Net (loss) income $ (122 ) $ 379 $ (1,269 ) $ 896
Earnings per share (basic & diluted) $ (0.003 ) $ 0.011 $ (0.036 ) $ 0.026
Operating cash flow *
(excludes working capital changes)
$ 142 $ 958 $ (836 ) $ 2,471
Operating cash flow per share $ 0.004 $ 0.027 $ (0.024 ) $ 0.071
Balance Sheet Highlights ($'000) September 30,
December 31, 2010
Working capital $ 7,842 $ 8,802
Total assets 26,515 23,246
Shareholders' equity 13,482 14,661

* 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.


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.

Contact Information