SOURCE: Gendis Inc.

Gendis Inc.

June 05, 2015 17:24 ET

Gendis Inc. Announces First Quarter Earnings

WINNIPEG, MB--(Marketwired - June 05, 2015) - Gendis Inc. (TSX: GDS) today announced its financial results for the 1st quarter ended April 30, 2015.

Net earnings for the 1st quarter were $1,938,000 ($0.15 per share) compared to net earnings of $2,440,000 ($0.18 per share) for the prior year 1st quarter. Revenue for the 1st quarter was $1,496,000 compared to $1,399,000 for the prior year 1st quarter. Revenue less expense for the 1st quarter was $392,000 compared to $643,000 for the prior year 1st quarter. The decline is primarily due to an allowance for non-collection of rent.

The volatility in net earnings quarter over quarter is primarily due to the change in fair value of security investments and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

   Quarter ended  
in millions of Canadian dollars  Apr 30   Apr 30  
except per share  2015   2014  
Revenue         
 Lease rental revenue  1.0   0.9  
 Dividends  0.5   0.5  
 Total revenue  1.5   1.4  
Expense         
 Property  0.7   0.4  
 Administration & finance  0.4   0.4  
 Total expense  1.1   0.8  
Total revenue less Total expense  0.4   0.6  
Fair value change:         
 Veresen  4.0   2.7  
 Other security investments  0.1   (0.4 )
 Investment properties  (1.8 ) -  
 Total fair value change  2.3   2.3  
Income tax expense  0.7   0.5  
Net earnings  1.9   2.4  
Earnings per share  $0.15   $0.18  
          
     
  Apr 30 Jan 31 Apr 30
in millions of Canadian dollars 2015 2015 2014
Fair value of investments:      
 Veresen 36.1 32.1 32.4
 Osum 6.2 6.2 11.5
 Other security investments 4.4 4.1 3.5
 Investment properties 28.9 30.5 30.4
Other assets 0.8 1.0 1.0
Debt & payables 6.1 5.7 3.5
Deferred tax payable 1.5 0.8 1.7
Shareholders' equity 68.8 67.3 73.6

   
   
   Quarter ended
  Apr 30 Apr 30
in millions of Canadian dollars 2015 2014
Cash flow from:    
Operations    
 Cash receipts 1.8 1.6
 Cash disbursements & finance expense (1.2) (0.4)
 Income taxes paid (0.2) (0.2)
Investing    
 Purchase of investments (0.3) (0.2)
 Expenditures on investment properties (0.1) -
 Net expenditures on equipment - (0.1)
Financing    
 Increase (decrease) in debt 0.4 -
 Purchase of share capital for cancellation (0.2) (0.3)
 Dividends (0.3) (0.3)
   

GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
   Apr 30  Jan 31  Apr 30
(unaudited - thousands of Canadian dollars)  2015  2015  2014
ASSETS         
Current assets         
 Cash  38  36  62
 Receivables  622  818  822
Total current assets  660  854  884
Non-current assets         
 Investments in securities (note 2)  46,756  42,358  47,430
 Investment properties(note 3)  28,857  30,577  30,385
 Furnishings and equipment  181  159  138
Total non-current assets  75,794  73,094  77,953
Total assets  76,454  73,948  78,837
          
LIABILITIES         
Current liabilities         
 Credit facilities (note 4)  3,994  3,597  1,599
 Payables  1,109  1,099  999
Total current liabilities  5,103  4,696  2,598
Non-current liabilities         
 Post employment benefit obligation  1,012  1,012  937
 Deferred income tax payable  1,534  860  1,656
Total non-current liabilities  2,546  1,872  2,593
Total liabilities  7,649  6,568  5,191
SHAREHOLDERS' EQUITY  68,805  67,380  73,646
Total liabilities and shareholders' equity  76,454  73,948  78,837
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED APRIL 30
(unaudited - thousands of Canadian  quarter ended
dollars except for share data)  2015   2014
Revenue       
 Lease rentals  976   899
 Dividends  520   500
Total revenue  1,496   1,399
Expense       
 Property  683   372
 Administration  393   368
 Finance  28   16
Total expense  1,104   756
Total revenue less Total expense  392   643
Fair value change       
 Investments in securities  4,088   2,276
 Investment properties  (1,809 ) -
Total fair value change  2,279   2,276
Earnings before income tax  2,671   2,919
Income tax expense  733   479
Net earnings from operations and comprehensive income  1,938   2,440
Net earnings from operations per share  $0.15   $0.18
  
  
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
(unaudited - thousands - shares & Canadian dollars as applicable)  Share Capital   Retained earnings   Total  
   $   $   $   $  
Balance - January 31, 2014  13,481   14,170   57,672   71,842  
Comprehensive income          2,440   2,440  
Purchase of share capital for cancellation  (89 ) (93 ) (207 ) (300 )
Dividend          (336 ) (336 )
Balance - April 30, 2014  13,392   14,077   59,569   73,646  
For the remainder of the year:                 
 Comprehensive loss          (3,921 ) (3,921 )
 Purchase of share capital for cancellation  
(346
) 
(364
) 
(991
) 
(1,355
)
  Dividends          (990 ) (990 )
Balance - January 31, 2015  13,046   13,713   53,667   67,380  
Comprehensive income          1,938   1,938  
Purchase of share capital for cancellation  (52 ) (54 ) (134 ) (188 )
Dividend          (325 ) (325 )
Balance - April 30, 2015  12,994   13,659   55,146   68,805  
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED APRIL 30
(unaudited - thousands of Canadian  Quarter ended  
dollars)  2015   2014  
Changes in cash position         
By operations         
 Cash receipts  1,805   1,614  
 Cash disbursements  (1,037 ) (425 )
 Income taxes paid  (224 ) (211 )
 Finance expense paid  (28 ) (17 )
Total by operations  516   961  
By investing activities         
 Acquisition of security investments  (300 ) (227 )
 Expenditures on investment properties  (89 ) -  
 Proceeds from disposal of equipment  85   -  
 Expenditures on furnishings and equipment  (94 ) (82 )
Total by investing activities  (398 ) (309 )
By financing activities         
 Net repayment of credit facilities  397   -  
 Purchase of share capital for cancellation  (188 ) (300 )
 Dividend paid  (325 ) (337 )
Total by financing activities  (116 ) (637 )
Increase (decrease) in cash  2   15  
Cash - beginning of period  36   47  
Cash - end of period  38   62  

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
April 30, 2015
(All tabular amounts in thousands of Canadian dollars unless otherwise stated)

1. General information
General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2015, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2015. These policies have been consistently applied to all periods presented.

2. Investments in securities

  Apr 30 Jan 31
  2015 2015
Veresen 36,140 32,120
Osum 6,187 6,187
Other security investments 4,429 4,051
  46,756 42,358

3. Investments property

  Apr 30 Jan 31
  2015 2015
Industrial 22,625 24,045
Commercial 6,232 6,532
  28,857 30,577

4. Credit facilities

  Borrowing Balance  Remaining borrowing availability Carrying value of collateral
  Apr 30 Jan 31 Apr 30 Jan 31 Apr 30 Jan 31
  2015 2015 2015 2015 2015 2015
Banker's acceptances 3,994 3,497        
Bank demand loan - 100        
  3,994 3,597 6,000 6,400 33,593 29,742
Broker's margin account - - 1,368 1,189 2,848 2,457
  3,994 3,597 7,368 7,589 36,441 32,199
             

5. Subsequent Event
On June 5, 2015, the Company declared a regular dividend of 2.5¢ per share to shareholders of record June 19, 2015, payable July 3, 2015.

6. Operating segments

   Quarter
Ended
Apr 30
 

Realty
  

Corporate
 
Inter-
segment
  

Total
Revenue  2015  993   727  (224 ) 1,496
   2014  916   728  245   1,399
Property & administration  2015  746   410  (80 ) 1,076
expense  2014  426   385  (71 ) 740
Finance expense  2015  144   28  (144 ) 28
   2014  174   16  (174 ) 16
Total revenue less total expense  2015  103   289  -   392
   2014  316   327  -   643
Fair value change  2015  (1,809 ) 4,088  -   2,279
   2014  -   2,276  -   2,276
Income tax expense (recovery)  2015  (216 ) 949  -   733
   2014  86   393  -   479
Comprehensive income  2015  (1,490 ) 3,428  -   1,938
   2014  230   2,210  -   2,440
Total assets  2015  29,372   66,515  (19,433 ) 76,454
   2014  31,067   69,916  (22,146 ) 78,837
Total liabilities  2015  21,831   5,251  (19,433 ) 7,649
   2014  24,539   2,798  (22,146 ) 5,191

Contact Information

  • For more information, please contact:

    James E. Cohen
    President & Chief Executive Officer
    Telephone: (204)474-5200
    E-mail: finance@gendis.ca
    Fax: (204)474-5201
    Web site: www.gendis.ca