SOURCE: Gendis Inc.

Gendis Inc.

April 08, 2016 14:49 ET

Gendis Inc. Announces Fourth Quarter Results and Annual Results

WINNIPEG, MB--(Marketwired - April 08, 2016) - Gendis Inc. (TSX: GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2016.

Revenue for the 4th quarter was $1,285,000 compared to $1,528,000 for last year's 4th quarter. Revenue less expense for the 4th quarter was $531,000 compared to $188,000 for last year's 4th quarter. The net loss for the 4th quarter was $6,586,000 ($0.52 per share) compared to a net loss of $7,423,000 ($0.57 per share) for last year's 4th quarter.

Revenue for the year was $5,429,000 compared to $5,849,000 last year. Revenue less expense for the year was $1,620,000 compared to $2,203,000 last year. The net loss for the year was $16,977,000 ($1.32 per share) compared to a net loss of $1,481,000 ($0.11 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 and in revenue less expense was primarily due to a significant vacancy in the Company's industrial property that occurred in the 2nd quarter of the year.

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 2016 2015 2016 2015
Revenue        
  Lease rental 0.8 1.0 3.3 3.8
  Dividends 0.5 0.5 2.1 2.0
Total revenue 1.3 1.5 5.4 5.8
         
Expense        
  Property 0.4 0.9 2.3 2.1
  Administration & finance 0.4 0.4 1.5 1.5
Total expense 0.8 1.3 3.8 3.6
         
Total revenue less total expense 0.5 0.2 1.6 2.2
         
Fair value change:        
  Veresen (6.8) (3.2) (16.2) 2.4
  Osum (0.8) (4.1) (1.4) (5.3)
  Other security investments (1.1) - (1.5) (0.6)
  Investment properties 0.9 (1.5) (0.9) (0.3)
Total fair value change (7.8) (8.8) (20.0) (3.8)
         
Income tax recovery 0.7 1.2 1.4 0.1
         
Net loss (6.6) (7.4) (17.0) (1.5)
         
Net loss per share (0.52) (0.56) (1.32) (0.11)
         
      Jan 31 Jan 31
in millions of Canadian dollars     2016 2015
Fair value of investments:        
  Veresen     16.0 32.1
  Osum     4.8 6.2
  Input capital     1.7 2.7
  Other security investments     1.0 1.4
  Investment properties     30.1 30.6
Other assets     1.8 1.0
         
Debt & payables     7.2 5.7
Deferred tax payable     - 0.9
         
Shareholders' equity     48.2 67.4
     
  quarter ended   year-to-date
  Jan 31 Jan 31 Jan 31 Jan 31
in millions of Canadian dollars 2016 2015 2016 2015
Cash flow from:        
Operations        
  Cash receipts 1.3 1.2 5.8 6.4
  Cash disbursements & finance expense (0.9) (1.1) (4.2) (3.7)
  Income taxes recovered (paid) - - (0.2) (0.2)
Investing        
  Proceeds on sales of investments - - 0.1 -
  Purchase of investments - - (0.3) (0.9)
  Expenditures on investment properties - (0.1) (0.4) (0.6)
Financing        
  Debt advance 0.1 0.4 1.5 2.0
  Purchase of share capital for cancellation (0.1) (0.1) (0.9) (1.7)
  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 & fertilizer delivery solutions and fertilizer production. 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 2016 2015
ASSETS    
Current assets    
  Cash 110 36
  Receivables 1,438 818
Total current assets 1,548 854
Non-current assets    
  Investment in securities (note 2) 23,461 42,358
  Investment properties (note 3) 30,130 30,577
  Other non-current assets 306 159
Total non-current assets 53,897 73,094
Total assets 55,445 73,948
     
LIABILITIES    
Current liabilities    
  Credit facilities (note 4) 5,098 3,597
  Payables 1,151 1,099
Total current liabilities 6,249 4,696
Non-current liabilities    
  Post employment benefit obligation 951 1,012
  Deferred income tax payable - 860
Total non-current liabilities 951 1,872
Total liabilities 7,200 6,568
Shareholders' equity 48,245 67,380
Total liabilities and shareholders' equity 55,445 73,948
     
 
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 2016 2015 2016 2015
Revenue        
  Lease rentals 765 1,002 3,344 3,800
  Dividends & other income 520 526 2,085 2,049
Total revenue 1,285 1,528 5,429 5,849
Expense        
  Property 444 898 2,299 2,073
  Administration 270 411 1,374 1,472
  Finance 40 31 136 101
Total expense 754 1,340 3,809 3,646
Total revenue less total expense 531 188 1,620 2,203
Fair value change        
  Investment properties 851 (1,517) (880) (314)
  Investment in securities (8,678) (7,313) (19,112) (3,517)
Total fair value change (7,827) (8,830) (19,992) (3,831)
Loss before income tax (7,296) (8,642) (18,372) (1,628)
Income tax recovery 710 1,219 1,395 147
Net loss from operations and comprehensive loss
(6,586)

(7,423)

(16,977)

(1,481)
Net loss from operations per share (0.52) (0.56) (1.32) (0.11)
         
 
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, 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
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
         
 
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 2016   2015   2016   2015  
Changes in cash position                
By operations                
  Cash receipts                
    Lease rentals 693   658   3,506   4,158  
    Dividends & other income 568   574   2,341   2,308  
  Cash disbursements                
    Property (444 ) (798 ) (2,389 ) (1,968 )
    Administration (380 ) (324 ) (1,726 ) (1,653 )
  Income taxes paid -   -   (224 ) (211 )
  Finance expense paid (37 ) (31 ) (138 ) (99 )
Total by operations 400   79   1,370   2,535  
By investing activities                
  Proceeds from sale of investment in securities -   -   125   -  
  Acquisition of investment in securities -   -   (300 ) (927 )
  Expenditures on investment properties (30 ) (120 ) (433 ) (506 )
  Net expenditures on furnishings and equipment -   (4 ) (31 ) (130 )
Total by investing activities (30 ) (124 ) (639 ) (1,563 )
By financing activities                
  Net advance of credit facilities 100   400   1,501   1,998  
  Purchase of share capital for cancellation (79 ) (149 ) (867 ) (1,655 )
  Dividends paid (320 ) (326 ) (1,291 ) (1,326 )
Total by financing activities (299 ) (75 ) (652 ) (983 )
Increase (decrease) in cash 71   (120 ) 74   (11 )
Cash - beginning of period 39   156   36   47  
Cash - end of period 110   36   110   36  
                 

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, 2016, 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, 2016. These policies have been consistently applied to all periods presented.

2. Investment in securities

  fair value change   fair value
  2016   2015   2016 2015
  Veresen (16,160 ) 2,380   15,960 32,120
  Osum (1,374 ) (5,315 ) 4,759 6,187
  Input Capital (950 ) 310   1,700 2,650
  Other security investments (628 ) (892 ) 1,042 1,401
  (19,112 ) (3,517 ) 23,461 42,358

3. Investment properties

  fair value change   fair value
  2016   2015   2016 2015
  Industrial (997 ) (190 ) 23,480 24,045
  Commercial 117   (124 ) 6,650 6,532
  (880 ) (314 ) 30,130 30,577

4. Credit facilities

  Borrowing Balance   Remaining borrowing availability Carrying value of collateral
  2016 2015 2016 2015 2016 2015
  Banker's credit facility 5,098 3,597 2,289 6,400 14,778 29,742
  Broker's margin account - - 591 1,189 1,199 2,457
  5,098 3,597 2,890 7,589 15,977 32,199
             

5. Subsequent Event
On March 3, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record March 18, 2016, payable April 8, 2016.

6. Operating segments

  Quarter Ended Jan 31

Realty
 

Corporate
 
Inter- segment
 

Total
 
Revenue 2016 782   728   (225 ) 1,285  
  2015 1,019   755   (246 ) 1,528  
                   
Property & administration 2016 507   287   (80 ) 714  
expense 2015 952   428   (71 ) 1,309  
                   
Finance expense 2016 145   40   (145 ) 40  
  2015 175   31   (175 ) 31  
                   
Total revenue less total 2016 130   401   -   531  
expense 2015 (108 ) 296   -   188  
                   
Fair value change 2016 851   (8,678 ) -   (7,827 )
  2015 (1,517 ) (7,313 ) -   (8,830 )
                   
Income tax recovery (expense) 2016 (197 ) 907   -   710  
  2015 192   1,027   -   1,219  
                   
Net earnings (loss) 2016 784   (7,370 ) -   (6,586 )
& Comprehensive income (loss) 2015 (1,433 ) (5,990 ) -   (7,423 )
                   
  Year Ended Jan 31

Realty
 

Corporate
 
Inter- segment
 

Total
 
Revenue 2016 3,413   2,918   (902 ) 5,429  
  2015 3,869   2,960   (980 ) 5,849  
                   
Property & administration 2016 2,551   1,443   (321 ) 3,673  
expense 2015 2,289   1,541   (285 ) 3,545  
                   
Finance expense 2016 581   136   (581 ) 136  
  2015 695   101   (695 ) 101  
                   
Total revenue less total 2016 281   1,339   -   1,620  
expense 2015 885   1,318   -   2,203  
                   
Fair value change 2016 (880 ) (19,112 ) -   (19,992 )
  2015 (314 ) (3,517 ) -   (3,831 )
                   
Income tax recovery (expense) 2016 (4 ) 1,399   -   1,395  
  2015 (238 ) 385   -   147  
                   
Net earnings (loss) 2016 (603 ) (16,374 ) -   (16,977 )
& Comprehensive income (loss) 2015 333   (1,814 ) -   (1,481 )
Total assets 2016 30,870   46,030   (21,455 ) 55,445  
  2015 31,181   65,825   (23,058 ) 73,948  
                   
Total liabilities 2016 22,441   6,214   (21,455 ) 7,200  
  2015 24,550   5,076   (23,058 ) 6,568  

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