Gendis Inc.
TSX : GDS

Gendis Inc.

June 03, 2005 16:28 ET

Gendis Inc. Announces First Quarter Results for Fiscal 2006

WINNIPEG, MANITOBA--(CCNMatthews - June 3, 2005) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1st quarter of the fiscal year ending January 28, 2006.

The net earnings from continuing operations for the 1st quarter was $374,000 ($0.02 per share) compared to a loss of $183,000 ($0.01 per share) last year. Last year the net loss on operations of the discontinued retail segment was $10.2-million ($0.66 per share).

The Company's investments continue to appreciate in value. At April 30, 2005, the Company's investments had a fair market value of approximately $30.6-million, which is $10.2-million in excess of carrying value. This represents an unrealized appreciation of approximately $0.66 per share, before income taxes.



Gendis Inc.
Consolidated Balance Sheet

April 30, Jan. 29,
(unaudited - in thousands of dollars) 2005 2005
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Assets

Cash and equivalents 2,189 3,235
Receivables 288 530
Advance held in escrow 2,000 2,000
Prepaid expenses 201 109
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4,678 5,874
Investments 20,397 18,844
Deposit on income tax reassessment 28,361 28,361
Property and equipment 11,375 11,431
Future tax asset 1,200 1,200
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66,011 65,710
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Liabilities and Shareholders' Equity
Payables and accrued liabilities 1,038 1,113
Income & capital taxes payable 108 106
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1,146 1,219
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Shareholders' equity
Capital stock 16,100 16,100
Retained earnings 48,765 48,391
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64,865 64,491
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66,011 65,710
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Gendis Inc.
Consolidated Statement of Earnings (Loss)

quarter ended
(unaudited - April 30 May 1,
in thousands of dollars) 2005 2004
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Revenue
Investment 579 477
Real estate 385 33
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964 510
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Expenses
Property and administrative expenses 513 572
Amortization of property and equipment 82 90
Interest and finance expense - 13
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595 675
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Earnings (loss) before the undernoted 369 (165)
Gain on sale of investments 40 -
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Earnings (loss) before taxes 409 (165)
Provision for income taxes 35 18
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Earnings (loss) from continuing operations 374 (183)
Discontinued operations:
Real estate held for sale - 45
Retail segment - (10,154)
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Net earnings (loss) 374 (10,292)
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Earnings (loss) per share - basic and diluted
Continuing operations 0.02 (0.01)
Discontinued operations:
Real estate - -
Retail segment - (0.66)
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0.02 (0.67)
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Gendis Inc.
Consolidated Statement of Retained Earnings

quarter ended
(unaudited - April 30 May 1,
in thousands of dollars) 2005 2004
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Retained earnings - beginning of period 48,391 93,878
Effect of change in accounting for
consideration received from vendors - (595)
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Retained earnings - beginning of year - restated 48,391 93,283
Earnings (loss) for the period 374 (10,292)
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Retained earnings - end of period 48,765 82,991
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Gendis Inc.
Consolidated Statement of Cash Flows

quarter ended
(unaudited - April 30, May 1,
in thousands of dollars) 2005 2004
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By operations:
Earnings (loss) from continuing operations 374 (183)
add (deduct) items not affecting cash:
Gain on sale of investments (40) -
Amortization of property and equipment 82 90
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Cash flow from earnings 416 (93)
Changes in non-cash working capital 77 473
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Operating activities from:
Continuing operations 493 380
Discontinued operations:
Real estate - 64
Retail - (8,226)
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493 (7,782)
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By investing activities:
Purchase of property and equipment (26) -
Proceeds from sale of investments 135 -
Difference between distributions and
investment income (10) -
Investments acquired (1,638) (2,600)
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Investing activities from:
Continuing operations (1,539) (2,600)
Discontinued operations - retail - (2,314)
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(1,539) (4,914)
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By financing activities:
Advance from credit facility - 2,000
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Continuing operations - 2,000
Discontinued operations - retail - 5,172
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- 7,172
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Decrease in cash (1,046) (5,524)

Cash - beginning of period 3,235 4,971
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Cash - end of period 2,189 (553)
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Cash is represented by:
Continuing operations 2,189 1,042
Discontinued operations - (1,595)
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2,189 (553)
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Gendis Inc.

Basis of Presentation of unaudited interim financial statements

These unaudited interim financial statements are prepared in accordance with accounting principles generally accepted in Canada and follow the same accounting policies and methods of application as the audited annual financial statements at January 29, 2005. These interim financial statements should be read in conjunction with the annual consolidated financial statements and notes thereto as presented in the Company's Annual Report for the fiscal year ended January 29, 2005

Certain comparative figures have been restated to conform to the presentation adopted for the current period.

Contact Information

  • Gendis Inc.
    Albert D. Cohen, President
    Chief Executive Officer
    and Chairman of the Board of Directors
    (204)474-5200
    or
    Gendis Inc.
    James E. Cohen
    Executive Vice-President
    (204)474-5200
    (204)474-5201 (FAX)
    finance@gendis.ca
    http://www.gendis.ca