Gendis Inc.
TSX : GDS

Gendis Inc.

April 07, 2006 16:35 ET

Gendis Inc. Announces Fourth Quarter Results for Fiscal 2006

WINNIPEG, MANITOBA--(CCNMatthews - April 7, 2006) - Gendis Inc. (TSX:GDS) today announced its financial results for the 4th quarter of the fiscal year ended January 28, 2006.

Consolidated net earnings from continuing operations for the 4th quarter was $27,000 (nil per share) compared to a net loss of $331,000 ($0.02 per share) last year. For the year, consolidated net earnings from continuing operations were $4.7-million ($0.31 per share) compared to a net loss of $0.7-million ($0.04 per share) last year.

In the 4th quarter last year, the Company sold its retail segment, Saan Stores. For the year last year, the net loss on operations of the retail segment was $16.5-million ($1.08 per share) and the net loss on disposal of the retail segment was $34.5-million ($2.25 per share). Consolidated loss for the year last year after discontinued operations was $44.9-million ($2.93 per share).

The Company's investments continue to appreciate in value. At January 28, 2006, the Company's investments in marketable securities had a fair market value of approximately $41.1-million, which is $7.8-million in excess of the carrying value. This represents an unrealized appreciation of approximately $0.51 per share before income taxes.



Gendis Inc.
Consolidated Balance Sheet

Jan. 28, Jan. 29,
(unaudited - in thousands of dollars) 2006 2005
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Assets
Cash and equivalents 95 3,235
Receivables 265 530
Note receivable - current portion 382 -
Advance held in escrow - 2,000
Prepaid expenses 203 109
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945 5,874
Investments 33,306 18,844
Note receivable 1,693 -
Deposit on income tax reassessment 28,361 28,361
Property and equipment 11,066 11,431
Future tax asset 2,847 1,200
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78,218 65,710
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Liabilities and Shareholders' Equity
Credit facilities 7,985 -
Payables and accrued liabilities 1,039 1,113
Income & capital taxes payable 333 106
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9,357 1,219
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Shareholders' equity
Capital stock 16,100 16,100
Retained earnings 52,761 48,391
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68,861 64,491
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78,218 65,710
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Gendis Inc.
Consolidated Statement of Loss

quarter ended year ended
(unaudited - Jan. 28, Jan. 29, Jan. 28, Jan. 29,
in thousands of dollars) 2006 2005 2006 2005
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Revenue
Investment income 1,570 170 4,454 1,629
Real estate rental 155 249 897 352
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1,725 419 5,351 1,981
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Expenses
Property and administrative
expenses 987 1,014 3,017 2,416
Amortization of property and
equipment 86 85 332 352
Interest & other finance cost 55 24 106 214
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1,127 1,123 3,455 2,982
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Earnings (loss) before
the undernoted 597 (704) 1,896 (1,001)
Gain on sale of investments 743 - 1,241 -
Restructuring credits - 761 - 761
Impairment of real estate (87) (767) (87) (767)
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Earnings (loss) before taxes 1,253 (710) 3,050 (1,007)
Recovery of (provision for)
income taxes (1,226) 379 1,656 342
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Earnings (loss) from
continuing operations 27 (331) 4,706 (665)
Discontinued operations:
Real estate held for sale - (28) - 116
Gain on sale of real estate - (1,485) - 6,679
Retail segment - (871) - (16,546)
Loss on sale of the retail
segment - 3,573 - (34,476)
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Net earnings (loss) 27 858 4,706 (44,892)
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Earnings (loss) per share -
basic and diluted
Continuing operations - (0.02) 0.31 (0.04)
Discontinued operations:
Real estate - (0.10) - 0.44
Retail segment - 0.18 - (3.33)
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- 0.06 0.31 (2.93)
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Gendis Inc.
Consolidated Statement of Cash Flows

quarter ended year ended
(unaudited - Jan. 28, Jan. 29, Jan. 28, Jan. 29,
in thousands of dollars) 2006 2005 2006 2005
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By operations:
Earnings (loss) from
continuing operations 27 (331) 4,706 (665)
add (deduct) items not
affecting cash:
Amortization of property &
equipment 86 86 332 352
Gain on sales of investments (742) - (1,241) -
Impairment of real estate 87 767 87 767
Future income taxes 1,353 (366) (1,647) (366)
Restructuring credit - (130) - (130)
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Cash flow from earnings 811 26 2,237 (42)
Changes in working capital 415 (2,609) 249 (1,028)
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Operating activities from:
Continuing operations 1,226 (2,583) 2,486 (1,070)
Discontinued operations
- real estate - 16,060 - 1,656
- retail - 5,541 - (13,013)
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1,226 19,018 2,486 (12,427)
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By investing activities:
Acquisition of equipment (2) - (54) -
Distributions in excess of
investment income (762) 361 (1,772) 361
Proceeds from sale of
investments 2,653 - 4,425 -
Investments acquired (5,043) (284) (15,874) (3,081)
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Investing activities from:
Continuing operations (3,154) 77 (13,275) (2,720)
Discontinued operations
- real estate - (118) - 14,032
- retail - (3,349) - (5,941)
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(3,154) (3,390) (13,275) 5,371
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By financing activities:
Net increased (decrease) in
credit facilities 2,038 (8,500) 7,985 -
Refundable dividend tax (336) - (336) -
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Financing activities from:
Continuing operations 1,702 (8,500) 7,649 -
Discontinued operations
- retail - (7,390) - 5,320
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1,702 (15,890) 7,649 5,320
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Increase (decrease) in cash (226) (262) (3,140) (1,736)

Cash - beginning of period 321 3,497 3,235 4,971
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Cash - end of period 95 3,235 95 3,235
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Gendis Inc.

Basis of Presentation of unaudited interim financial statements

These unaudited interim financial statements are prepared in accordance with accounting principles generally accepted in Canada and follow the same accounting policies and methods of application as the audited annual financial statements at January 28, 2006. 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 28, 2006.

Certain comparative figures have been restated to conform to the presentation adopted for the current period.

Contact Information

  • Gendis Inc.
    Albert D. Cohen, President, Chief Executive Officer
    and Chairman of the Board of Directors
    (204) 474-5200
    (204) 474-5201 (FAX)
    or
    Gendis Inc.
    James E. Cohen
    Executive Vice-President
    (204) 474-5200
    (204) 474-5201 (FAX)
    finance@gendis.ca
    www.gendis.ca