Gendis Inc.
TSX : GDS

Gendis Inc.

April 08, 2011 15:36 ET

Gendis Inc. Announces Fourth Quarter and Year End Profit

WINNIPEG, MANITOBA--(Marketwire - April 8, 2011) - Gendis Inc. (TSX:GDS) today announced its financial results for the 4th quarter ended January 31, 2011.

Revenue for the quarter was $1.4-million compared to $0.5-million last year, primarily from an increase in investment income.

The net earnings for the 4th quarter were $2.6-million ($0.18 per share) compared to a net loss of $0.2-million ($0.02 per share) last year. The increase in earnings quarter over quarter is primarily due to:

  • increased future tax recoveries of $1.2-million from the change in the valuation allowance,
  • increased revenue of $0.9-million,
  • reduced operating expenses of $0.6-million,

Revenue for the year was $4.9-million compared to $3.9-million last year. The increase in revenue year over year is primarily due to:

  • increased revenue from participating rents of $0.3-million,
  • increased revenue from investments of $0.6-million,

The net earnings for the year were $0.5-million ($0.03 per share) compared to net earnings of $0.9-million ($0.06 per share) last year. The decrease in earnings year over year is primarily due to:

  • settlement of legal claims of $2.8-million;
  • reduction in the fair value changes of investments of $0.4-million offset by:
  • increased future tax recoveries of $1.2-million from the change in the valuation allowance,
  • increased revenue of $1.0-million,
  • reduced operating expenses of $0.6-million.
Gendis Inc.
Consolidated Balance Sheet
At January 31
(unaudited – $,000's)20112010
Assets
Cash39261
Receivables404263
Income and capital taxes recoverable2
Prepaid expenses5040
493566
Investments (note 2)
at fair value26,28220,542
at carrying value4,9464,946
Property and equipment11,70012,125
Future tax asset4,8493,172
48,27041,351
Liabilities and Shareholders' Equity
Credit facilities10,99511,398
Payables and accrued liabilities1,791879
Income and capital taxes payable69
12,85512,277
Post employment benefit obligations890872
Shareholders' equity34,52528,202
48,27041,351
Gendis Inc.
Consolidated Statement of Operations
For the periods ended January 31
quarter endedyear ended
(unaudited - $,000's, except per share)2011201020112010
Revenue
Real estate rental1,1148573,7393,333
Investment252(382)1,157602
1,3664754,8963,935
Expenses
Property and administrative expenses2186232,4162,951
Amortization of property & equipment131123522514
Interest and finance expenses9682333272
4458283,2713,737
Earnings (loss) before the undernoted921(353)1,625198
Provision for settlement of legal claims(61)(2,811)
Provision for post employment benefit obligations(58)(191)(58)(191)
Change in fair value of investments held for trading104(68)16388
Gain (loss) on sale of investments available for sale3(8)12
Gain on sale of property & equipment982
Earnings (loss) before taxes906(609)(1,227)489
Income taxes provision (recovery):
Current1157
Future1,677(440)1,677(440)
1,6774291,677(383)
Net earnings (loss) from operations2,583(180)450872
Earnings (loss) per share -
basic and diluted0.18(0.02)0.030.06
Gendis Inc.
Consolidated Statement of Comprehensive Income (Loss)
For the periods ended January 31
quarter endedyear ended
(unaudited - $,000's)2011201020112010
Other comprehensive income
Change in the fair value of investments1,0584,0285,9476,703
Gain (loss) on sale of investments3(8)12
Transfers to net loss from operations:
Gain (loss) on sale of investments(3)8(12)
Other comprehensive income1,0584,0285,9476,703
Net earnings (loss)2,583(180)450872
Comprehensive income3,6413,8486,3977,575
Gendis Inc.
Consolidated Statement of Shareholders' Equity
For the periods ended
Share
CapitalRetained
(unaudited - $,000's)(note 3)EarningsAOCITotal
Balance – January 31, 200914,7968,414(2,447)20,763
Net earnings for the period1,0522,6753,727
Shares purchased for cancellation(108)17(91)
Balance – October 31, 200914,6889,48322824,399
Net earnings (loss) for the quarter(180)4,0283,848
Shares purchased for cancellation(38)(7)(45)
Balance –January 31, 201014,6509,2964,25628,202
Net gain (loss) for the period(2,133)4,8892,756
Balance – October 31, 201014,6507,1639,14530,958
Net earnings for the quarter2,5831,0583,641
Refundable dividend tax on hand(74)(74)
Balance – January 31, 201114,6509,67210,20334,525
AOCI refers to Accumulated Other Comprehensive Income
Gendis Inc.
Consolidated Statement of Cash Flows
For the periods ended January 31
quarter endedyear ended
(unaudited - $,000's)2011201020112010
By operations:
Net earnings (loss)2,583(180)450872
add (deduct) items not affecting cash:
Amortization of property and equipment131123522514
(Gain) loss on sale of property & equipment(9)(82)
(Gain) loss on sale of investments68(3)
Change in fair value of investments(103)59(16)(397)
Provision for settlement of legal claims612,811
Provision for post employment benefit obligations5819158191
Future income tax(1,677)(440)(1,677)(440)
Cash flow from earnings1,053(241)2,147655
Payments for settlement of legal claims(150)(1,650)
Change in working capital(573)(366)(403)(183)
330(607)94472
By investing activities:
Investments acquired(967)
Proceeds on sale of investments743451,161
Reduction to the cost of investments from a return of capital2578718371,379
Proceeds on sale of property and equipment2346
Expenditure on property and equipment(1)(1)(88)(22)
2569461272,864
By financing activities:
Net repayment credit facilities(600)(200)(403)(3,093)
Purchase for cancellation of share capital(45)(136)
Payments for post employment benefit obligations(10)(40)(25)
Refundable dividend tax(20)
(610)(245)(443)(3,274)
Increase (decrease) in cash(24)94(222)62
Cash - beginning of period63167261199
Cash - end of period3926139261
Supplementary information:
Interest paid9783336267
Taxes paid1177

Gendis Inc.

Notes to Condensed Consolidated Interim Financial Statements - unaudited

January 31, 2011

1. Significant Accounting Policies and Basis of Presentation

These unaudited consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in Canada. However, these interim financial statements do not contain all the disclosures that would be required under generally accepted accounting principles for annual financial statements. These interim financial statements follow the same accounting policies and methods of application as the audited annual consolidated financial statements at January 31, 2010. Certain disclosures required for annual financial statements have been condensed or omitted in these interim financial statements. Accordingly, 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 31, 2010. The following notes to the interim financial statements are supplemental to the notes to the annual consolidated financial statements.

2. INVESTMENTS

Fair Value
$
(,000's)20112010
Available-for-sale:
Flow-through entities:
Veresen 1,915 shares25,980
Fort Chicago (2009 – 1,915 units)19,915
Other equity investments53
Held-for-trading:
Other equity investments302574
Total exchange-traded investments26,28220,542
Cost
$
(,000's)20112010
Private placement - Equity investment, available-for-sale:
OSUM 2,047 shares (2009-2,047 shares)4,9464,946
3. CAPITAL STOCK
Number of Shares
Common shares issued (,000's)20112010
Beginning of year13,93714,075
less shares purchased for cancellation under a Normal Issuer Course Bid138
End of year13,93713,937
The Normal Course Issuer Bid expired on January 15, 2010.
4. Segment Information
4th quarterRealtyCorporateInter-Total
($,000's)endedsegment
Revenue20111,129344(107)1,366
2010872(294)(103)475
Expenses2011394(131)(45)218
2010284384(45)623
Amortization20111292131
2010126(3)123
Interest20116296(62)96
20105882(58)82
Post employment benefit20115858
obligation cost2010191191
Provision for settlement of20116161
legal claims2010
Gain (loss) on sale of investments2011
and property & equipment201033
Change in fair value of2011104104
investments held-for-trading2010(68)(68)
Income tax recovery (provision)20113141,3631,677
2010173256429
Net earnings (loss)20118581,7252,583
from operations2010577(757)(180)
Expenditures on property201111
& equipment201011
yearRealtyCorporateInter-Total
($,000's)endedsegment
Revenue20113,8001,516(420)4,896
20103,394974(433)3,935
Expenses20111,5581,039(181)2,416
20101,6351,497(181)2,951
Amortization201151012522
20105059514
Interest & other finance expense2011239333(239)333
2010252272(252)272
Post employment benefit20115858
obligation cost2010191191
Gain (loss) on sale of investments20116(5)1
and property & equipment2010821294
Provision for settlement of20112,8112,811
legal claims2010
Change in fair value of20111616
investments held-for-trading2010388388
Income tax recovery (provision)2011(20)1,6971,677
2010(65)448383
Net earnings (loss)20111,479(1,029)450
from operations20101,019(147)872
Expenditures on property2011771188
and equipment201021122
Total Assets201112,40642,694(6,830)48,270
201012,77037,464(8,883)41,351

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