SOURCE: Gendis Inc.

Gendis Inc.

April 10, 2015 18:06 ET

Gendis Inc. Announces Fourth Quarter Earnings and Annual Earnings

WINNIPEG, MB--(Marketwired - April 10, 2015) - Gendis Inc. (TSX: GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2015.

Revenue for the 4th quarter was $1,528,000 compared to $1,513,000 for last year's 4th quarter. Revenue less expense for the 4th quarter was $188,000 compared to $807,000 for last year's 4th quarter. The net loss for the 4th quarter was $7,423,000 ($0.57 per share) compared to net earnings of $5,640,000 ($0.41 per share) for last year's 4th quarter.

Revenue for the year was $5,849,000 compared to $6,072,000 last year. Revenue less expense for the year was $2,203,000 compared to $2,845,000 last year. The net loss for the year was $1,481,000 ($0.11 per share) compared to net earnings of $5,092,000 ($0.37 per share) for last year.

The volatility in net earnings quarter over quarter and for the year over year 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  year ended 
in millions of Canadian dollars  Jan 31   Jan 31   Jan 31   Jan 31  
except per share  2015   2014   2015   2014  
Revenue                 
 Lease rental revenue  1.0   1.0   3.8   4.1  
 Dividends  0.5   0.5   2.0   2.0  
Total revenue  1.5   1.5   5.8   6.1  
Expense                 
 Property  0.9   0.4   2.1   1.8  
 Administration & finance  0.4   0.3   1.5   1.4  
Total expense  1.3   0.7   3.6   3.2  
Total revenue less total expense  0.2   0.8   2.2   2.9  
Fair value change:                 
 Veresen  (3.2 ) 4.0   2.4   4.1  
 Osum  (4.1 ) -   (5.3 ) (2.0 )
 Other security investments  -   0.3   (0.6 ) 0.6  
 Investment properties  (1.5 ) 1.4   (0.3 ) 0.4  
Total fair value change  (8.8 ) 5.7   (3.8 ) 3.1  
Income tax recovery (expense)  1.2   (0.9 ) 0.1   (0.9 )
Net earnings (loss)  (7.4 ) 5.6   (1.5 ) 5.1  
Net earnings (loss) per share  (0.57 ) 0.41   (0.11 ) 0.37  
             
        Jan 31  Jan 31 
in millions of Canadian dollars       2015  2014 
Fair value of investments:            
Veresen       32.1  29.7 
Osum       6.2  11.5 
Other security investments       4.1  3.7 
Investment properties       30.5  30.4 
Other assets       1.0  1.0 
Debt & payables       5.7  3.3 
Deferred tax payable       0.8  1.2 
Shareholders' equity       67.3  71.8 
             
  quarter ended  year-to-date 
   Jan 31   Jan 31   Jan 31   Jan 31  
in millions of Canadian dollars  2015   2014   2015   2014  
Cash flow from:                 
Operations                 
 Cash receipts  1.2   1.2   6.4   6.0  
 Cash disbursements & finance expense  (1.1 ) (0.6 ) (3.7 ) (3.4 )
 Income taxes recovered (paid)  -   -   (0.2 ) (0.2 )
Investing                 
 Proceeds on sales of investments  -   -   -   2.1  
 Purchase of investments  -   -   (0.9 ) -  
 Expenditures on investment properties  (0.1 ) -   (0.6 ) (0.2 )
Financing                 
 Debt reduction  0.4   -   2.0   (1.9 )
 Purchase of share capital for cancellation  (0.1 ) (0.3 ) (1.7 ) (1.1 )
 Dividends paid  (0.3 ) (0.3 ) (1.3 ) (1.4 )
             

Gendis Inc. holds a portfolio of commercial and industrial real estate properties in Canada, investments in exchange-traded securities and investments in private enterprises. Investments in securities are primarily in companies involved in pipelines and power plants, oil and gas development, canola crop marketing, fertilizer production and waste management solutions. The investments are held for income generation and long-term capital growth.

 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
At JANUARY 31      
     
unaudited - in thousands of Canadian dollars  2015  2014
ASSETS      
Current assets      
 Cash  36  47
 Receivables  818  995
Total current assets  854  1,042
Non-current assets      
 Investment in securities (note 2)  42,358  44,927
 Investment properties  30,577  30,385
 Furnishings and equipment  159  61
Total non-current assets  73,094  75,373
Total assets  73,948  76,415
       
LIABILITIES      
Current liabilities      
 Credit facilities (note 3)  3,597  1,599
 Payables  1,099  806
Total current liabilities  4,696  2,405
Non-current liabilities      
 Post employment benefit obligation  1,012  937
 Deferred income tax payable  860  1,231
Total non-current liabilities  1,872  2,168
Total liabilities  6,568  4,573
SHAREHOLDERS' EQUITY  67,380  71,842
Total liabilities and shareholders' equity  73,948  76,415
     
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED JANUARY 31
 
unaudited - in thousands of  quarter ended  year-to-date
Canadian dollars except share data  2015  2014  2015  2014
Revenue                 
 Lease rentals  1,002   1,013   3,800   4,059  
 Dividends & other income  526   500   2,049   2,013  
Total revenue  1,528   1,513   5,849   6,072  
Expense                 
 Property  898   382   2,073   1,833  
 Administration  411   305   1,472   1,323  
 Finance  31   19   101   71  
Total expense  1,340   706   3,646   3,227  
Total revenue less total expense  188   807   2,203   2,845  
Fair value change                 
 Investment properties  (1,517 ) 1,416   (314 ) 378  
 Investment in securities  (7,313 ) 4,317   (3,517 ) 2,733  
Total fair value change  (8,830 ) 5,733   (3,831 ) 3,111  
Earnings (loss) before income tax  (8,642 ) 6,540   (1,628 ) 5,956  
Income tax (expense) recovery  1,219   (900 ) 147   (864 )
Net earnings (loss) from operations and comprehensive income (loss)  (7,423 ) 5,640   (1,481 ) 5,092  
Net earnings (loss) from operations per share  (0.57 ) 0.41   (0.11 ) 0.37  
             
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
          
unaudited - in thousands - shares & Canadian dollars as applicable  Share Capital  Retained earnings  Total
   #  $  $  $
Balance - January 31, 2013  13,816   14,523   54,660   69,183  
Comprehensive loss to October 31, 2013          (548 ) (548 )
Purchase of share capital for cancellation  (244 ) (257 ) (510 ) (767 )
Dividends          (1,030 ) (1,030 )
Balance - October 31, 2013  13,572   14,266   52,572   66,838  
Comprehensive income for the quarter ended January 31, 2014          5,640   5,640  
Purchase of share capital for cancellation  (91 ) (96 ) (202 ) (298 )
Dividend          (338 ) (338 )
Balance - January 31, 2014  13,481   14,170   57,672   71,842  
Comprehensive income to October 31, 2014          5,942   5,942  
Purchase of share capital for cancellation  (396 ) (415 ) (1,090 ) (1,505 )
Dividends          (1,000 ) (1,000 )
Balance - October 31, 2014  13,085   13,755   61,524   75,279  
Comprehensive loss for the quarter ended January 31, 2015          (7,423 ) (7,423 )
Purchase of share capital for cancellation  (39 ) (42 ) (108 ) (150 )
Dividend          (326 ) (326 )
Balance - January 31, 2015  13,046   13,713   53,667   67,380  
             
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED JANUARY 31
 
unaudited - in thousands of Canadian  quarter ended  year to date
Dollars  2015  2014  2015  2014
Changes in cash position                 
By operations                 
 Cash receipts  1,232   1,192   6,466   6,029  
 Cash disbursements  (1,122 ) (580 ) (3,621 ) (3,331 )
 Income taxes paid  -   -   (211 ) (203 )
 Finance expense paid  (31 ) (18 ) (99 ) (73 )
Total by operations  79   594   2,535   2,422  
By investing activities                 
 Proceeds from sale of investment in securities  -   -   -   2,144  
 Acquisition of investment in securities  -   -   (927 ) -  
 Expenditures on investment properties  (120 ) (4 ) (506 ) (232 )
 Expenditures on furnishings and equipment  (4 ) (6 ) (130 ) (30 )
Total by investing activities  (124 ) (10 ) (1,563 ) 1,882  
By financing activities                 
 Net advance (repayment) of credit facilities  400   -   1,998   (1,901 )
 Purchase of share capital for cancellation  (149 ) (298 ) (1,655 ) (1,065 )
 Dividends paid  (326 ) (338 ) (1,326 ) (1,368 )
Total by financing activities  (75 ) (636 ) (983 ) (4,334 )
Decrease in cash  (120 ) (52 ) (11 ) (30 )
Cash - beginning of period  156   99   47   77  
Cash - end of period  36   47   36   47  
             

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
For the periods ended January 31
(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
       
   2015  2014
 Veresen  32,120  29,740
 Osum  6,187  11,502
 Other security investments  4,051  3,685
   42,358  44,927
     
3. Credit facilities
          
   Borrowing Balance Remaining borrowing availability  Carrying value of collateral
   2015  2014  2015  2014  2015  2014
 Banker's acceptances  3,497  1,499            
 Bank demand loan  100  100            
    3,597  1,599  6,400  8,400  29,742  27,538
 Broker's margin account  -  -  1,189  1,101  2,457  2,547
   3,597  1,599  7,589  9,501  32,199  30,085
                   
4. Subsequent Event
  On March 5, 2015, the Company declared a regular dividend of 2.5¢ per share to shareholders of record March 27, 2015, payable April 10, 2015.
   
   
5.  Operating segments
           
   Quarter
Ended
Jan 31
 

Realty
 

Corporate
 
Inter-
segment
 

Total
Revenue  2015  1,019   755   (246 ) 1,528  
   2014  1,030   708   (225 ) 1,513  
Property & administration  2015  952   428   (71 ) 1,309  
expense  2014  436   322   (71 ) 687  
               
Finance expense  2015  175   31   (175 ) 31  
   2014  154   19   (154 ) 19  
Total revenue less total  2015  (108 ) 296   -   188  
expense  2014  440   367   -   807  
               
Fair value change  2015  (1,517 ) (7,313 ) -   (8,830 )
   2014  1,416   4,317   -   5,733  
Income tax recovery (expense)  2015  192   1,027   -   1,219  
   2014  (597 ) (303 ) -   (900 )
Net earnings (loss)  2015  (1,433 ) (5,990 ) -   (7,423 )
& Comprehensive income (loss)  2014  1,259   4,381   -   5,640  
                
   Year
Ended
Jan 31
 

Realty
 

Corporate
 
Inter-
segment
 

Total
Revenue  2015  3,869   2,960   (980 ) 5,849  
   2014  4,128   2,852   (908 ) 6,072  
Property & administration  2015  2,289   1,541   (285 ) 3,545  
expense  2014  2,049   1,392   (285 ) 3,156  
               
Finance expense  2015  695   101   (695 ) 101  
   2014  623   71   (623 ) 71  
Total revenue less total  2015  885   1,318   -   2,203  
expense  2014  1,456   1,389   -   2,845  
               
Fair value change  2015  (314 ) (3,517 ) -   (3,831 )
   2014  378   2,733   -   3,111  
Income tax recovery (expense)  2015  (238 ) 385   -   147  
   2014  (592 ) (272 ) -   (864 )
Net earnings (loss)  2015  333   (1,814 ) -   (1,481 )
& Comprehensive income (loss)  2014  1,242   3,850   -   5,092  
Total assets  2015  31,181   65,825   (23,058 ) 73,948  
   2014  30,975   68,354   (22,914 ) 76,415  
Total liabilities  2015  24,550   5,076   (23,058 ) 6,568  
   2014  24,677   2,810   (22,914 ) 4,573  

Contact Information

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