SOURCE: Gendis Inc.

Gendis Inc.

April 10, 2017 16:32 ET

Gendis Inc. Announces Fourth Quarter Results and Annual Results

WINNIPEG, MB--(Marketwired - April 10, 2017) - Gendis Inc. (TSX: GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2017.

Revenue for the 4th quarter was $1,636,000 compared to $1,285,000 for last year's 4th quarter. Revenue less expense for the 4th quarter was a loss of $52,000 compared to income of $531,000 for last year's 4th quarter. Net earnings for the 4th quarter was $4,010,000 ($0.31 per share) compared to a net loss of $6,586,000 ($0.52 per share) for last year's 4th quarter.

Revenue for the year was $5,377,000 compared to $5,429,000 last year. Revenue less expense for the year was $477,000 compared to $1,620,000 last year. Net earnings for the year was $13,025,000 ($1.02 per share) compared to a net loss of $16,977,000 ($1.32 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, primarily the Company's investments in Veresen, Osum and Input Capital, and the investment properties with the attendant effect on deferred income taxes. The decline in revenue for the year was primarily due to a significant vacancy in the Company's industrial property that occurred in the 2nd quarter of the year. The increase in revenue for the 4th quarter was due to securing replacement tenants. The decline in revenue less expense was primarily due the revenue variance and due to non-recoverable major repairs and maintenance expense for the Company's industrial property

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 in dollars 2017  2016  2017  2016  
Revenue             
 Lease rental 1.1  0.8  3.3  3.3  
 Income from securities 0.5  0.5  2.1  2.1  
Total revenue 1.6  1.3  5.4  5.4  
Expense             
 Property 1.0  0.5  3.0  2.3  
 Administration & finance 0.7  0.3  1.9  1.5  
Total expense 1.7  0.8  4.9  3.8  
Total revenue less total expense (0.1 )0.5  0.5  1.6  
Fair value change:             
 Veresen 2.1  (6.8 )10.5  (16.2 )
 Osum 1.1  (0.8 )1.1  (1.4 )
 Other security investments (0.3 )(1.1 )(0.3 )(1.5 )
 Investment properties 1.5  0.9  1.6  (0.9 )
Total fair value change 4.4  (7.8 )12.9  (20.0 )
Income tax recovery (expense) (0.4 )0.7  (0.3 )1.4  
Net earnings (loss) 4.0  (6.6 )13.0  (17.0 )
Net earnings (loss) per share 0.31  (0.52 )1.02  (1.32 )
              
         
          Jan 31   Jan 31  
in millions of Canadian dollars         2017   2016  
Fair value of investments:                
 Veresen         26.4   16.0  
 Osum         5.8   4.8  
 Input capital         1.9   1.7  
 Other security investments         0.7   1.0  
 Investment properties         31.7   30.1  
Other assets         1.2   1.8  
Debt & payables         7.4   7.2  
Deferred tax payable         0.4   -  
Shareholders' equity         59.9   48.2  
            
 quarter ended  year-to-date 
  Jan 31   Jan 31   Jan 31   Jan 31  
in millions of Canadian dollars 2017   2016   2017   2016  
Cash flow from:                
Operations                
 Cash receipts                
  Lease rentals 0.8   0.7   3.4   3.5  
  Dividends & other receipts 0.8   0.5   2.3   2.3  
 Cash disbursements                
  Property (0.9 ) (0.4 ) (2.9 ) (2.4 )
  Administration & finance expense (0.7 ) (0.4 ) (1.8 ) (1.8 )
 Income taxes recovered (paid) -   -   0.6   (0.2 )
Investing                
 Proceeds on sales of investments -   -   -   0.1  
 Purchase of investments -   -   -   (0.3 )
 Expenditures on investment properties -   -   0.1   (0.4 )
Financing                
 Debt advance 0.5   0.1   (0.1 ) 1.5  
 Purchase of share capital for cancellation (0.1 ) (0.1 ) (0.1 ) (0.9 )
 Dividends paid (0.3 ) (0.3 ) (1.3 ) (1.3 )
             

The Company holds a portfolio of commercial and industrial real estate properties in Canada, investments in exchange-traded securities and investments in the securities of private enterprises. Security investments are primarily in companies involved in pipelines and power plants, oil and gas development, canola crop marketing, & agricultural crop protection. The investments are held for income generation and long-term capital growth. The Company's business is organized in two operating segments, the Corporate operations and the Realty operations.

 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
At JANUARY 31     
    
unaudited - in thousands of Canadian dollars 2017  2016
ASSETS     
Current assets     
 Cash 162  110
 Receivables 891  1,438
Total current assets 1,053  1,548
Non-current assets     
 Investment in securities (note 2) 34,815  23,461
 Investment properties (note 3) 31,740  30,130
 Other non-current assets 142  306
Total non-current assets 66,697  53,897
Total assets 67,750  55,445
      
LIABILITIES     
Current liabilities     
 Credit facilities (note 4) 4,997  5,098
 Payables 1,447  1,151
Total current liabilities 6,444  6,249
Non-current liabilities     
 Post employment benefit obligation 966  951
 Deferred income tax payable 441  -
Total non-current liabilities 1,407  951
Total liabilities 7,851  7,200
Shareholders' equity 59,899  48,245
Total liabilities and shareholders' equity 67,750  55,445
  
  
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 2017   2016   2017   2016  
Revenue                
 Lease rentals 1,116   765   3,291   3,344  
 Income from securities 520   520   2,086   2,085  
Total revenue 1,636   1,285   5,377   5,429  
Expense                
 Property 968   444   3,039   2,299  
 Administration 680   270   1,725   1,374  
 Finance 40   40   136   136  
Total expense 1,688   754   4,900   3,809  
Total revenue less total expense (52 ) 531   477   1,620  
Fair value change                
 Investment properties 1,540   851   1,565   (880 )
 Investment in securities 2,961   (8,678 ) 11,318   (19,112 )
Total fair value change 4,501   (7,827 ) 12,883   (19,992 )
Net earnings (loss) before income tax 4,449   (7,296 ) 13,360   (18,372 )
Income tax recovery (expense) (439 ) 710   (335 ) 1,395  
Net earnings (loss) from operations and comprehensive income (loss) 4,010   (6,586 ) 13,025   (16,977 )
Net earnings (loss) from operations per share 0.31   (0.52 ) 1.02   (1.32 )
  
  
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, 2015 13,046   13,713   53,667   67,380  
 Comprehensive loss to October 31, 2015         (10,391 ) (10,391 )
 Purchase of share capital for cancellation
(220
) 
(230
) 
(558
) 
(788
)
Dividends         (971 ) (971 )
Balance - October 31, 2015 12,826   13,483   41,747   55,230  
 Comprehensive loss for the quarter ended January 31, 2016         
(6,586
) 
(6,586
)
 Purchase of share capital for cancellation
(25
) 
(26
) 
(54
) 
(80
)
Dividend         (319 ) (319 )
Balance - January 31, 2016 12,801   13,457   34,788   48,245  
 Comprehensive income to October 31, 2016         9,015   9,015  
 Purchase of share capital for cancellation (1 ) (1 ) (1 ) (2 )
Dividends         (960 ) (960 )
Balance - October 31, 2016 12,800   13,456   42,842   56,298  
 Comprehensive income for the quarter ended January 31, 2017         4,010   4,010  
 Purchase of share capital for cancellation (31 ) (34 ) (55 ) (89 )
Dividend         (320 ) (320 )
Balance - January 31, 2017 12,769   13,422   46,477   59,899  
  
  
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 2017   2016   2017   2016  
Changes in cash position                
By operations                
 Cash receipts                
  Lease rentals 752   693   3,354   3,506  
  Dividends & other receipts 785   568   2,334   2,341  
Cash disbursements                
  Property (878 ) (444 ) (2,897 ) (2,389 )
  Administration (703 ) (380 ) (1,712 ) (1,726 )
Income taxes recovered (paid) -   -   637   (224 )
Finance expense paid (37 ) (37 ) (134 ) (138 )
Total by operations (81 ) 400   1,582   1,370  
By investing activities                
 Proceeds from sale of investment in securities 4   -   4   125  
 Acquisition of investment in securities -   -   -   (300 )
 Expenditures on investment properties -   (30 ) (45 ) (433 )
 Net expenditures on furnishings and equipment -   -   (16 ) (31 )
Total by investing activities 4   (30 ) (57 ) (639 )
By financing activities                
 Net advance of credit facilities 501   100   (102 ) 1,501  
 Purchase of share capital for cancellation (88 ) (79 ) (91 ) (867 )
 Dividends paid (320 ) (320 ) (1,280 ) (1,291 )
Total by financing activities 93   (299 ) (1,473 ) (657 )
Increase (decrease) in cash 16   71   52   74  
Cash - beginning of period 146   39   110   36  
Cash - end of period 162   110   162   110  
 
 
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, 2017, 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, 2017. These policies have been consistently applied to all periods presented.
  
2.Investment in securities
  fair value change   fair value
  2017   2016   2017  2016
 Veresen 10,480   (16,160 ) 26,440  15,960
 Osum 1,079   (1,374 ) 5,838  4,759
 Input Capital 210   (950 ) 1,910  1,700
 Other security investments (451 ) (628 ) 627  1,042
  11,318   (19,112 ) 34,815  23,461
3.Investment properties
  fair value change   fair value
  2017  2016   2017  2016
 Industrial 1,365  (997 ) 24,890  23,480
 Commercial 200  117   6,850  6,650
  1,565  (880 ) 31,740  30,130
4.Credit facilities
  Borrowing Balance  Remaining borrowing availability  Carrying value of collateral
  2017  2016  2017  2016  2017  2016
 Banker's credit facility 4,997  5,098  5,000  2,289  24,504  14,778
 Broker's margin account -  -  979  591  1,958  1,199
  4,997  5,098  5,979  2,880  26,462  15,977
                  
5.Subsequent Event
 On March 3, 2017, the Company declared a regular dividend of 2.5¢ per share to shareholders of record March 18, 2017, payable April 7, 2017.
  
6.Operating segments
  Quarter Ended Jan 31  
Realty
  
Corporate
  Inter- segment   
Total
 
Revenue 2017  1,133   730   (227 ) 1,636  
  2016  782   728   (225 ) 1,285  
              
Property & administration 2017  1,028   697   (77 ) 1,648  
expense 2016  507   287   (80 ) 714  
              
Finance expense 2017  150   40   (150 ) 40  
  2016  145   40   (145 ) 40  
              
Total revenue less total 2017  (45 ) (7 ) -   (52 )
expense 2016  130   401   -   531  
              
Fair value change 2017  1,540   2,961   -   4,501  
  2016  851   (8,678 ) -   (7,827 )
              
Income tax recovery (expense) 2017  (278 ) (161 ) -   (439 )
  2016  (197 ) 907   -   710  
              
Net earnings (loss) 2017  1,217   2,793   -   4,010  
& Comprehensive income (loss) 2016  784   (7,370 ) -   (6,586 )
                    
  Year Ended Jan 31  
Realty
  
Corporate
  Inter- segment   
Total
 
Revenue 2017  3,360   2,919   (902 ) 5,377  
  2016  3,413   2,918   (902 ) 5,429  
              
Property & administration 2017  3,278   1,795   (309 ) 4,764  
expense 2016  2,551   1,443   (321 ) 3,673  
              
Finance expense 2017  593   136   (593 ) 136  
  2016  581   136   (581 ) 136  
              
Total revenue less total 2017  (511 ) 988   -   477  
expense 2016  281   1,339   -   1,620  
              
Fair value change 2017  1,565   11,318   -   12,883  
  2016  (880 ) (19,112 ) -   (19,992 )
              
Income tax recovery (expense) 2017  (173 ) (162 ) -   (335 )
  2016  (4 ) 1,399   -   1,395  
              
Net earnings (loss) 2017  881   12,144   -   13,025  
& Comprehensive income (loss) 2016  (603 ) (16,374 ) -   (16,977 )
                    
Total assets 2017  32,621   58,022   (22,893 ) 67,750  
  2016  30,870   46,030   (21,455 ) 55,445  
              
Total liabilities 2017  23,812   6,932   (22,893 ) 7,851  
  2016  22,441   6,214   (21,455 ) 7,200  
              

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