Gemini Corporation

Gemini Corporation

August 29, 2012 16:25 ET

Gemini Corporation Reports 2012 Second Quarter Results

Revenue increases further improve profitability

CALGARY, ALBERTA--(Marketwire - Aug. 29, 2012) - Gemini Corporation (TSX VENTURE:GKX) announces its second quarter financial results for the period ended June 30, 2012.

Revenue in the second quarter of 2012 totalled $24,473,000, which was a 60% increase from the $15,208,000 achieved in the second quarter of 2011. This brings the 2012 year to date total revenue to $44,657,000 and represents a 68% improvement over the $26,584,000 achieved in the first six months of 2011. These revenue gains have been generated across all Gemini operations as a result of market demand emanating principally from heavy oil and natural gas liquid producers. Client relationship development work is producing results and establishing a backlog of work to be completed over the remainder of 2012 and into 2013. Notwithstanding the current commodity price uncertainties, the demand for services is anticipated to remain fairly consistent into 2013 based upon feedback from the majority of key clients.

Second quarter gross profit for 2012 was $4,025,000 compared to $3,239,000 for the same period last year. Year to date gross profit of $7,421,000 is certainly an improvement compared to the $5,327,000 last year, although gross profit as a percent of revenue has declined to 17% from 20%. There are a number of initiatives underway to improve margins for the latter part of 2012 in response to labour cost escalation and increases in certain variable costs.

The second quarter net income of $436,000 (1.3¢ per share) further improves upon the $185,000 (0.5¢ per share) earned in the first quarter. This brings net income to a total of $621,000 for the first half compared to a net loss of $1,147,000 in the same period last year.

"The first half of 2012 results are a welcome recovery after the extremely challenging year we experienced in 2011", remarked Doug Lautermilch, Gemini's President and CEO. "Substantial changes were made last year to reduce our fixed cost burden and now that we are getting some positive response from key clients regarding our client relationship management efforts I am encouraged about our ability to sustain our 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 2012 second-quarter financial report will be filed with SEDAR at by August 29, 2012.

Three Months Ended Six Months Ended
Operating Highlights ($'000) June 30, June 30, June 30, June 30,
2012 2011 2012 2011
Revenue $ 24,473 $ 15,208 $ 44,657 $ 26,584
Gross profit 4,025 3,239 7,421 5,327
Income before interest & taxes 640 (174 ) 952 (1,473 )
Net income (loss) $ 436 $ (174 ) 621 $ (1,147 )
Earnings per share (basic) $ 0.013 $ (0.005 ) $ 0.018 $ (0.033 )
Earnings per share (diluted) $ 0.013 $ (0.005 ) $ 0.018 $ (0.033 )
Balance Sheet Highlights ($'000) June 30, December 31,
2012 2011
Working capital $ 7,951 $ 7,119
Total assets 32,353 28,412
Shareholders' equity 13,735 13,069


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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