Gendis Inc.
TSX : GDS

Gendis Inc.

April 13, 2009 17:12 ET

Gendis Inc. Announces Fourth Quarter Results

WINNIPEG, MANITOBA--(Marketwire - April 13, 2009) – Gendis Inc. (TSX:GDS) today announced its financial results for the 4th quarter ended January 31, 2009.

Revenue for the quarter was $0.4-million compared to $0.9-million last year. The decrease in revenue quarter over quarter is primarily due to $0.8-million of reduced share of earnings of Fort Chicago offset by $0.2-million from increased tenancy in the Sony Place Facility.

The net loss for the 4th quarter was $0.7-million ($0.05 per share) compared to a net loss of $0.3-million ($0.02 per share) last year. The increase in the loss quarter over quarter is primarily due to a reduction in future tax recoveries of $1.5-million from the change in the valuation allowance, a decrease in revenue of $0.5-million, offset by the change in realized losses net of fair value changes of investments of $1.5-million.

Revenue for the year was $3.3-million compared to $3.2-million last year. The increase in revenue year over year is primarily due to $0.5-million from increased tenancy in the Sony Place Facility, $0.2-million of reduced share of loss of Thunder Energy offset by $0.5-million of reduced share of earnings of Fort Chicago.

The net loss for the year was $7.2-million ($0.51 per share) compared to a net loss of $5.1-million ($0.35 per share) last year. The increase in the loss year over year is primarily due to realized losses net of fair value changes of investments of $2.3-million, a reduction in future tax recoveries of $1.5-million from the change in the valuation allowance, the initial recognition of a post employment benefit obligation of $0.7 million offset by the non recurrence of the loss on sale of a note receivable of $2.2 million in 2008.

Gendis Inc.      
Consolidated Balance Sheet      
           
      Jan. 31, Jan. 31,  
(unaudited – $,000's) 2009 2008  
           
Assets      
  Cash 199 203  
  Receivables 291 259  
  Prepaid expenses 71 270  
      561 732  
  Investments (note 2)      
    at fair value 15,979 34,028  
    at carrying value 4,946 4,821  
  Property and equipment 12,881 10,658  
  Future tax asset 2,732 2,597  
      37,099 52,836  
           
Liabilities and Shareholders' Equity    
  Credit facilities 14,491 18,778  
  Payables and accrued liabilities 1,119 970  
  Income and capital taxes payable 20 67  
      15,630 19,815  
           
Post employment benefit obligations 706  
Shareholders' equity 20,763 33,021  
      37,099 52,836  
           


Gendis Inc.          
Consolidated Statement of Loss          
    quarter ended year ended  
    Jan. 31, Jan. 31, Jan. 31, Jan. 31,  
(unaudited - $,000's, except per share) 2009 2008 2009 2008  
Revenue          
  Real estate rental 800 447 2197 1587  
  Investment (390) 491 1114 1575  
    410 938 3311 3162  
Expenses          
  Property and administrative expenses 736 745 2892 2770  
  Amortization of property & equipment 131 86 457 349  
  Interest and finance expenses 129 265 841 945  
    996 1096 4190 4064  
Loss before the undernoted (586) (158) (879) (902)  
Post employment benefit obligations 34 (706)  
Provision for loss on investments (34) (34)  
Change in fair value of investments          
  held for trading 35 (1756) 361 (3801)  
Gain (loss) on sale of investments          
  Held for trading (26) (5476) 703  
  Available for sale (197) (525) (283)  
Gain (loss) on sale of note receivable 66 (2235)  
Gain (loss) on sale of property & equipment 95 (9)  
Loss before taxes (774) (1848) (7164) (6527)  
Provision for (recovery of) income taxes:          
  Current 19 81 199 199  
  Future (135) (1637) (135) (1637)  
    (116) (1556) 64 (1438)  
Net loss from operations (658) (292) (7228) (5089)  
Loss from operations per share -          
  basic and diluted (0) (0) (1) (0)  
             


Gendis Inc.          
Consolidated Statement of Comprehensive Income (Loss)      
      quarter ended year ended  
      Jan. 31, Jan. 31, Jan. 31, Jan. 31  
(unaudited - $,000's) 2009 2008 2009 2008  
Other comprehensive loss          
  Change in the fair value of investments (749) 203 (4,664) (791)  
  Gain (loss) on sale of investments (197) (525) (283)  
  Provision for loss on investments (34) (34)  
  Transfers to net loss from operations:          
    Gain (loss) on sale of investments 197 525 283  
    Provision for loss on investments 34 34  
Other comprehensive income (loss) (749) 203 (4,664) (791)  
Net loss (658) (292) (7,228) (5,089)  
Comprehensive loss (1,407) (89) (11,892) (5,880)  
               

Gendis Inc.          
Consolidated Statement of Shareholders' Equity        
For the Periods Ended          
             
    Share        
(unaudited - Capital Retained      
in thousands of dollars) (note 3) Earnings AOCI Total  
Balance – February 1, 2008 14,995 15,809 2,217 33,021  
Net gain (loss) for the period (6,570) (3,915) (10,485)  
Shares purchased for cancellation (177) (151) (328)  
Balance – October 31, 2008 14,818 9,088 (1,698) 22,208  
Net loss for the quarter (658) (749) (1,407)  
Refundable dividend tax on hand (20) (20)  
Shares purchased for cancellation (22) 4 (18)  
Balance – quarter ended January 31, 2009 14,796 8,414 (2,447) 20,763  
             
Balance – February 1, 2007 15,736 21,740 3,008 40,484  
Net loss for the period (4,797) (994) (5,791)  
Shares purchased for cancellation (499) (518) (1,017)  
Balance – October 31, 2007 15,237 16,425 2,014 33,676  
Net loss for the quarter (292) 203 (89)  
Refundable dividend tax on hand (78) (78)  
Shares purchased for cancellation (242) (246) (488)  
Balance – quarter ended January 31, 2008 14,995 15,809 2,217 33,021  
             

AOCIrefers to Accumulated Other Comprehensive Income



Gendis Inc.          
Consolidated Statement of Cash Flows          
             
    Quarter Ended Year Ended  
    Jan. 31, Jan. 31, Jan. 31, Jan. 31,  
(unaudited - $,000's) 2009 2008 2009 2008  
By operations:          
Net loss (658) (292) (7,228) (5,089)  
add (deduct) items not affecting cash:          
  Amortization of property and equipment 131 86 457 349  
  (Gain) loss on sale of property & equipment (95) 9  
  (Gain) loss on sale of investments 223 1 6,001 (420)  
  (Gain) loss on sale of note receivable (66) 2,235  
  Provision for loss on investments 34 34  
  Change in fair value of investments (35) 1756 (361) 3,801  
  Post employment benefit obligations (34) 706  
  Future income tax (135) (1,637) (135) (1,637)  
  Cash flow from earnings (474) (152) (621) (752)  
Change in working capital (42) 11 327 49  
    (516) (141) (294) (703)  
By investing activities:          
  Investments acquired (2,397) (3,822) (8,208)  
  Proceeds on sale of investments 1,302 10,150 5,562  
  Reduction to the cost of investments from          
  a return of capital 930 132 1,258 1,104  
  Proceeds on sale of note receivable 100 100  
  Proceeds on sale of property and equipment 346  
  Expenditure on property and equipment (29) (91) (2,931) (127)  
    2,203 (2,256) 5,001 (1,569)  
By financing activities:          
  Net advance (repayment) credit facilities (1,791) 2,989 (4,287) 3,980  
  Purchase for cancellation of share capital (18) (488) (346) (1,505)  
  Refundable dividend tax (78) (195)  
    (1,809) 2,501 (4,711) 2,280  
Increase (decrease) in cash (122) 104 (4) 8  
Cash - beginning of period 321 99 203 195  
Cash - end of period 199 203 199 203  
             
Supplementary information:          
  Interest paid 192 277 914 978  
  Taxes paid 19 82 277 394  
             

Gendis Inc.
Notes to ConsolidatedInterim Financial Statements - unaudited
January 31, 2009

1. Significant Accounting Policies and Basis of Presentation

These unaudited consolidated interim financial statements are prepared in accordance with accounting principles generally accepted in Canada. However, these interimfinancial statements do not contain all the disclosures that would be requiredunder generally accepted accounting principles for annual financial statements.These interim financial statements follow the same accounting policies and methods of application as the audited annual consolidated financial statements at January 31, 2008 except for the adoption of new accounting and presentation standards. Certain disclosures required for annual financial statements have been condensed or omitted in these interim financial statements. Accordingly, these interim financial statements should be read in conjunction with the annual consolidated financial statements and notes there to as presented in the Company's Annual Report for the fiscal year ended January 31, 2009. The following notes to the interim financial statements are supplemental to the notes to the annual consolidated financial statements.

2. Investments

        Number
of shares/units
(000's)
Fair Carrying  
        Value Value  
        ($000's)  
        Jan. 31, Jan. 31, Jan. 31, Jan. 31,  
        2009 2008 2009 2008  
Available for sale in            
  Fort Chicago     2,057 2,190 15,674 22,644  
  Yellow Pages     10 64  
Held for trading              
  Fort Chicago     154 1,595  
  Alberta Clipper     700 1,540  
  Ember Resources     147 673 82 941  
  FNX Mining     110 2,920  
  International Nickel Ventures   350 500 82 435  
  Opti     105 1,722  
  Other equity investments       77 2,231  
  Total exchange-traded investments     15,979 34,028  
                 
      Number of shares/('000's) Carrying Value  
       
      face value ($000's) ($000's)  
      Jan. 31, Jan. 31, Jan. 31, Jan. 31,  
      2009 2008 2009 2008  
Private investments          
  OSUM - shares 2,047 1,948 4,946 4,821  
               

3. Capital Stock

Number of shares   quarter ended year ended  
      Jan. 31, Jan. 31, Jan. 31, Jan. 31,  
(‘000's)     2009 2008 2009 2008  
Balance - beginning of period 14,096 14,496 14,265 14,970  
Shares purchased for cancellation 21 231 190 705  
Balance - end of period   14,075 14,265 14,075 14,265  
               

4. Segment Information

    quarter          
    ended Realty Corporate Inter- Total  
($,000's) Jan. 31     segment    
               
Revenue 2009 815 (256) (149) 410  
    2008 462 528 (52) 938  
               
Expenses 2009 362 419 (45) 736  
    2008 327 462 (45) 744  
               
Amortization 2009 126 5 131  
    2008 83 3 86  
               
Interest 2009 104 129 (104) 129  
    2008 7 265 (7) 265  
               
Other non cash income (expense) 2009 (188) (188)  
    2008   (1,691) (1,691)  
               
Recovery of (provision 2009 (297) 413   116  
  for) income taxes 2008 (16) 1,572 1,556  
               
Net earnings (loss) 2009 (74) (584)   (658)  
  from operations 2008 29 (321) (292)  
               
Expenditures on property 2009 29 29  
  & equipment 2008 91 91  
               

Other non cash income (expenses) comprise gain/(loss) on sale & provision for loss on investments, notes receivable, property & equipment, and changes in fair value of investments and post employment benefit obligations.


    year          
    ended Realty Corporate Inter- Total  
($,000's) Jan. 31     segment    
               
Revenue 2009 2,257 1,711 (657) 3,311  
    2008 1,648 1,737 (223) 3,162  
               
Expenses 2009 1,436 1,637 (181) 2,892  
    2008 1,292 1,659 (181) 2,770  
               
Amortization 2009 438 19 457  
    2008 332 17 349  
               
Interest 2009 476 841 (476) 841  
    2008 42 945 (42) 945  
               
Other non cash income (expense) 2009 95 (6,380) (6,285)  
    2008 (5,625) (5,625)  
               
Recovery of (provision 2009 (220) 156 (64)  
  for) income taxes 2008 6 1,432 1,438  
               
Net loss 2009 (218) (7,010) (7,228)  
  from operations 2008 (12) (5,077) (5,089)  
               
Expenditures on property 2009 2,915 16 2,931  
  & equipment 2008 117 10 127  
               
Total Assets 2009 13,599 33,434 (9,934) 37,099  
    2008 12,046 49,450 (8,660) 52,836  
               

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