Gemini Corporation
TSX VENTURE : GKX

Gemini Corporation

March 23, 2006 09:16 ET

Gemini Corporation Reports Fiscal 2005 Results

CALGARY, ALBERTA--(CCNMatthews - March 23, 2006) -

Gemini Increases Earnings by 193% in 2005

Gemini Corporation (TSX VENTURE:GKX), a leading provider of engineered solutions and field services to the energy, environmental and industrial markets, today announced its financial results for the year ended December 31, 2005.

Revenue for the year totalled $72,779,000, an 83% increase over the $39,718,000 generated in 2004. Gemini has been successful in securing projects in new markets with new clients throughout 2005. In addition, approximately one-third of the revenue increase is attributable to the two acquisitions completed earlier in 2005. The project diversification coupled with the acquisitions provides a greater degree of stability and offers a broader array of new opportunities to the organization. Targeted service offerings within the energy, environmental and industrial markets are being well-received and should provide sustainable growth well into the future.

The 2005 year end gross profit increased 85% to $17,577,000 from $9,504,000 in 2004. Earnings before interest and taxes (EBIT) improved $4,060,000 or 216% to $5,944,000 from $1,884,000 last year. The improved EBIT results are a direct reflection of the Corporation's strategy to grow revenues and leverage its existing fixed cost structure.

Net earnings for the year increased 193% to $3,372,000 (10.2 cents per share) compared to the $1,150,000 (3.5 cents per share) achieved last year. The increased revenues coupled with improving cost controls have provided the foundation for this earnings growth and further efficiency gains in 2006 are expected to continue this trend.

"We are very pleased with the growth in revenue and profitability for 2005", said Carl Johnson, Gemini's President and CEO. "Our strategy to profitably grow the organization in a strong and steady manner is working well and the economic fundamentals in the markets we serve look solid for the future. With our continued focus on business process improvements we are confident additional cost efficiencies can be gained over the course of 2006."

Gemini's outlook for 2006 is optimistic as our market and client diversification efforts continue to secure new project opportunities. Offering both stand-alone and integrated, full-service solutions is providing some valuable differentiation in the markets we serve. Couple this with our alternative energy and new technology initiatives and Gemini has a winning formula for continued success.

About Gemini Corporation

Gemini Corporation is a growth-oriented company offering 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 the energy, environmental and industrial markets.

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 2005 annual report will be filed with SEDAR at www.sedar.com by April 30, 2006.



CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months Ended Year Ended

Operating Highlights ($'000) Dec 31, Dec 31, Dec 31, Dec 31,
2005 2004 2005 2004

Revenue $ 21,106 $ 11,098 $ 72,779 $ 39,718
Gross profit 4,422 1,124 17,577 9,504
Earnings before interest & taxes 986 (1,353) 5,944 1,884
Net earnings 587 (886) 3,372 1,150
Earnings per share (basic) $0.017 $(0.029) $0.102 $0.035
Earnings per share (diluted) $0.016 $(0.028) $0.097 $0.033


Operating cash flow (i) $757 $(1,076) $4,511 $2,372
(excludes working capital changes)
Operating cash flow per share $0.023 $(0.035) $0.139 $0.077


Balance Sheet Highlights ($'000) December 31, 2005 December 31, 2004

Working capital $ 7,322 $ 3,433
(adjusted for long-term portion of
demand loans)
Total assets 30,843 16,649
Shareholders' equity 10,848 6,498


(i)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.

Statements in this release which describe Gemini's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Gemini to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. Gemini may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.



The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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