SOURCE: Gendis Inc.

Gendis Inc.

June 03, 2016 16:37 ET

Gendis Inc. Announces First Quarter Earnings

WINNIPEG, MB--(Marketwired - June 03, 2016) - Gendis Inc. (TSX: GDS) today announced its financial results for the 1st quarter ended April 30, 2016.

Net earnings for the 1st quarter were $1,136,000 ($0.09 per share) compared to net earnings of $1,938,000 ($0.15 per share) for the prior year 1st quarter. Revenue for the 1st quarter was $1,227,000 compared to $1,496,000 for the prior year 1st quarter. Revenue less expense for the 1st quarter was $255,000 compared to $392,000 for the prior year 1st quarter. The decline is primarily due to vacancy in the Company's Sony place Facility.

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   2016   2015
Revenue            
  Lease rental revenue   0.7     1.0  
  Dividends   0.5     0.5  
  Total revenue   1.2     1.5  
Expense            
  Property   0.6     0.7  
  Administration & finance   0.4     0.4  
  Total expense   1.0     1.1  
Total revenue less Total expense   0.2     0.4  
Fair value change:            
  Veresen   2.1     4.0  
  Other security investments   (0.1 )   0.1  
  Investment properties   (1.1 )   (1.8 )
  Total fair value change   0.9     2.3  
Income tax expense   0.1     0.7  
Net earnings   1.1     1.9  
Earnings per share   $0.09     $0.15  
             
             
             
    Apr 30   Jan 31   Apr 30
in millions of Canadian dollars   2016   2016   2015
Fair value of investments:                
  Veresen   18.1   16.0     36.1  
  Osum   4.8   4.8     6.2  
  Other security investments   2.7   2.7     4.4  
  Investment properties   29.0   30.1     28.9  
Other assets   0.9   1.8     0.8  
                 
Debt & payables   6.3   7.2     6.1  
Deferred tax payable   0.1   -     1.5  
                 
Shareholders' equity   49.1   48.2     68.8  
                 
        Quarter ended
        Apr 30   Apr 30
in millions of Canadian dollars       2016   2015
Cash flow from:                
Operations                
  Cash receipts       1.4     1.8  
  Cash disbursements & finance expense       (0.9 )   (1.1 )
  Income taxes recovered (paid)       0.6     (0.2 )
Investing                
  Purchase of investments       -     (0.3 )
  Expenditures on investment properties       -     (0.1 )
  Net expenditures on equipment       -     -  
Financing                
  Increase (decrease) in debt       (0.9 )   0.4  
  Purchase of share capital for cancellation       -     (0.2 )
  Dividend       (0.3 )   (0.3 )
                   
                   
                   
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
 
    Apr 30   Jan 31   Apr 30
(unaudited - thousands of Canadian dollars)   2016   2016   2015
ASSETS            
Current assets            
  Cash   9   110   38
  Income tax recoverable   -   638   -
  Receivables   719   800   622
Total current assets   728   1,548   660
Non-current assets            
  Investments in securities (note 2)   25,554   23,461   46,756
  Investment properties (note 3)   28,990   30,130   28,857
  Other current assets   175   306   181
Total non-current assets   54,719   53,897   75,794
Total assets   55,447   55,445   76,454
             
LIABILITIES            
Current liabilities            
  Credit facilities (note 4)   4,198   5,098   3,994
  Payables   1,145   1,151   1,109
Total current liabilities   5,343   6,249   5,103
Non-current liabilities            
  Post employment benefit obligation   951   951   1,012
  Deferred income tax payable   94   -   1,534
Total non-current liabilities   1,045   951   2,546
Total liabilities   6,388   7,200   7,649
SHAREHOLDERS' EQUITY   49,059   48,245   68,805
Total liabilities and shareholders' equity   55,447   55,445   76,454
             
             
             
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)   2016     2015  
Revenue            
  Lease rentals   696     976  
  Dividends   531     520  
Total revenue   1,227     1,496  
Expense            
  Property   558     683  
  Administration   383     393  
  Finance   31     28  
Total expense   972     1,104  
Total revenue less total expense   255     392  
Fair value change            
  Investments in securities   2,083     4,088  
  Investment properties   (1,142 )   (1,809 )
Total fair value change   941     2,279  
Earnings before income tax   1,196     2,671  
Income tax expense   60     733  
Net earnings from operations and comprehensive income   1,136     1,938  
Net earnings from operations per share   $0.09     $0.15  
             
             
             
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, 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  
For the remainder of the year:                        
  Comprehensive loss               (18,915 )   (18,915 )
  Purchase of share capital for cancellation   (193 )   (202 )   (477 )   (679 )
    Dividends               (966 )   (966 )
Balance - January 31, 2016   12,801     13,457     34,788     48,245  
Comprehensive income               1,136     1,136  
Purchase of share capital for cancellation   (1 )   (1 )   (1 )   (2 )
Dividend               (320 )   (320 )
Balance - April 30, 2016   12,800     13,456     35,603     49,059  
                         
                         
                         
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF CASH FLOWS  
FOR THE PERIODS ENDED APRIL 30  
   
(unaudited - thousands of Canadian   Quarter ended  
dollars)   2016     2015  
Changes in cash position            
By operations            
  Cash receipts            
    Lease rentals   836     1,214  
    Dividends   596     591  
  Cash disbursements            
    Property   (517 )   (582 )
    Administration   (382 )   (455 )
  Income taxes paid   -     (224 )
  Finance expense paid   (31 )   (28 )
Total by operations   1,140     516  
By investing activities            
  Acquisition of security investments   -     (300 )
  Expenditures on investment properties   (2 )   (89 )
  Proceeds from disposal of equipment   -     85  
  Expenditures on furnishings and equipment   (17 )   (94 )
Total by investing activities   (19 )   (398 )
By financing activities            
  Net advance (repayment) of credit facilities   (900 )   397  
  Purchase of share capital for cancellation   (2 )   (188 )
  Dividend paid   (320 )   (325 )
Total by financing activities   (1,222 )   (116 )
Increase (decrease) in cash   (101 )   2  
             
Cash - beginning of period   110     36  
Cash - end of period   9     38  
             
             
             
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
April 30, 2016
(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, 2016, 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, 2016. These policies have been consistently applied to all periods presented.
     
2.   Investments in securities
     
    Apr 30   Jan 31
    2016   2016
  Veresen   18,080   15,960
  Osum   4,759   4,759
  Other security investments   2,715   2,742
    25,554   23,461
         
3.   Investments property
    Apr 30   Jan 31
    2016   2016
  Industrial   22,510   23,480
  Commercial   6,480   6,650
    28,990   30,130
         
4.   Credit facilities
    Borrowing Balance   Remaining borrowing availability   Carrying value of collateral
    Apr 30   Jan 31   Apr 30   Jan 31   Apr 30   Jan 31
    2016   2016   2016   2016   2016   2016
  Banker's acceptances   4,198   5,098   4,208   2,289   16,815   14,778
  Broker's margin account   -   -   669   591   1,339   1,199
    4,198   5,098   4,877   2,880   18,154   15,977
                         
5.   Subsequent Event
    On June 3, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record June 24, 2016, payable July 8, 2016.
     
6.   Operating segments
     
    Quarter Ended Apr 30  

Realty
 

Corporate
 
Inter- segment
 

Total
Revenue   2016   713     738     (224 )   1,227  
    2015   993     727     (224 )   1,496  
                             
Property & administration   2016   618     401     (78 )   941  
  expense   2015   746     410     (80 )   1,076  
                               
Finance expense   2016   146     31     (146 )   31  
    2015   144     28     (144 )   28  
                             
Total revenue less total expense   2016   (51 )   306     -     255  
    2015   103     289     -     392  
                             
Fair value change   2016   (1,142 )   2,083     -     941  
    2015   (1,809 )   4,088     -     2,279  
                             
Income tax (expense) recovery   2016   21     (81 )   -     (60 )
    2015   216     (949 )   -     (733 )
                             
Comprehensive income   2016   (1,172 )   2,308     -     1,136  
    2015   (1,490 )   3,428     -     1,938  
Total assets   2016   29,509     48,047     (22,109 )   55,447  
    2015   29,372     66,515     (19,433 )   76,454  
                             
Total liabilities   2016   22,756     5,741     (22,109 )   6,388  
    2015   21,831     5,251     (19,433 )   7,649  
                             

Contact Information

  • For more information, please contact:
    James E. Cohen
    President & Chief Executive Officer
    Telephone: (204)474-5200
    Fax: (204)474-5201
    E-mail: Email contact
     
    Web site: www.gendis.ca