SOURCE: Gemini Corporation

Gemini Corporation

November 17, 2014 16:36 ET

Gemini Corporation Reports 2014 Third Quarter Results

Revenue Remains Strong With Profitability Improving

CALGARY, AB--(Marketwired - November 17, 2014) - Gemini Corporation (TSX VENTURE: GKX) announces its third quarter financial results for the period ended September 30, 2014.

The 2014 third quarter revenue of $33,744,000 was a slight improvement over those achieved in the second quarter, but was down 5% from the $35,682,000 earned in the third quarter of 2013. This brings the 2014 year to date revenue to $95,469,000, which is a 21% increase over the $78,815,000 achieved in the first nine months of last year. Revenue has remained strong despite the commodity price uncertainties that are prevalent in the oil and gas industry. The competitive pressures of the oil and gas service industry are continuing to have a dampening effect on profitability, although not to the extent experienced in the first half of the year. The client delays in planned facility developments are starting to be resolved, which is expected to sustain revenues at or above third quarter levels for the fourth quarter. In addition, the work being completed on the previously announced rail loading facility is in full swing and will help to support revenues through to the middle of 2015.

Gross profit as a percent of revenue for the third quarter of 2014 improved to 18% from 14% in the second quarter. This brought year to date gross profit to 15% compared to 19% for the nine months ended September 30th in 2014 and 2013, respectively. This weakness in gross profit performance is a direct reflection of the competitive market that has existed throughout 2014, although the year over year shortfall is forecast to reduce in the fourth quarter. The projects that are planned for execution in the fourth quarter are forecast to achieve improved margins, which should revive overall profitability for 2014.

The Corporation's 2014 third quarter net income was $1,253,000 (2.1¢ per share - basic) compared to the 2013 third quarter net income of $1,839,000 (3.4¢ per share - basic). Net income for the nine months ended September 30, 2014 totalled $1,495,000 (2.7¢ per share - basic) compared to $2,626,000 (4.8¢ per share - basic) for the same period of 2013.

"Our third quarter results were in line with our expectations and the fourth quarter is expected to bring our profitability for the year closer to where we finished last year," said Doug Lautermilch, Gemini's President and CEO. "Despite the market uncertainty that currently exists, we are encouraged by the positive response we are receiving from our alliance clients with respect to our integrated service offerings. We are cautiously optimistic that we will be able to continue growing our business based upon the strategic success we have achieved thus far."

About Gemini Corporation
Gemini Corporation is a professional services firm that designs, builds and maintains energy and industrial facilities. Founded in 1982, Gemini combines its engineering and field service capabilities to increase project efficiency and provide a single point of accountability. The Corporation's principal target markets are midstream oil and gas, in-situ heavy oil, oil and gas production, and oil and gas processing.

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 2014 third quarter report will be filed with SEDAR at www.sedar.com by November 18, 2014.

 
 
CONSOLIDATED FINANCIAL HIGHLIGHTS
 
Operating Highlights ($'000)  Three Months Ended  Nine Months Ended
Sept 30,
2014
 Sept 30,
2013
 Sept 30,
2014
 Sept 30,
2013
Revenue  $33,744  $35,682  $95,469  $78,815
Gross profit   6,040   7,251   14,371   14,767
Income before interest & taxes   1,791   2,312   2,420   3,428
Net income  $1,252  $1,839  $1,495  $2,626
                 
Earnings per share (basic)  $0.021  $0.034  $0.027  $0.048
Earnings per share (diluted)  $0.017  $0.030  $0.021  $0.046
             
             
Financial Position Highlights ($'000)  Sept 30,
2014
 December 31,
2013
Working capital  $20,572  $14,489
Total assets   62,920   41,823
Shareholders' equity   28,277   21,602
       
       

Disclaimer
This news release may contain 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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