WINNIPEG, MB--(Marketwired - April 10, 2015) - Gendis Inc. (
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