SOURCE: Gendis Inc.

Gendis Inc.

September 01, 2016 15:38 ET

Gendis Inc. Announces Second Quarter Results

WINNIPEG, MB--(Marketwired - September 01, 2016) - Gendis Inc. (TSX: GDS) today announced its financial results for the 2nd quarter ended July 31, 2016.

Revenue for the 2nd quarter was $1,316,000 compared to $1,379,000 for the 2nd quarter last year. Revenue less expense for the 2nd quarter was $336,000 compared to $153,000 for the 2nd quarter last year. Net income for the 2nd quarter was $6,648,000 ($0.51 per share) compared to a net loss $5,783,000 ($0.45 per share) for the 2nd quarter last year.

Revenue year-to-date was $2,543,000 compared to $2,875,000 year-to-date last year. Revenue less expense year-to-date was $635,000 compared to $545,000 year-to-date last year. Net income year-to-date was $7,827,000 ($0.61 per share) compared to a net loss of $3,845,000 ($0.30 per share) year-to-date last year.

The volatility in net income quarter over quarter and year over year is primarily due to the change in fair value of security investments, primarily Veresen and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

      
   Quarter ended YTD ended
in millions of Canadian dollars  Jul 31  Jul 31  Jul 31  Jul 31
except per share  2016  2015  2016  2015
Revenue            
 Lease rental revenue  0.8  0.9  1.5  1.8
 Dividends  0.5  0.5  1.0  1.1
Total revenue  1.3  1.4  2.5  2.9
Expense            
 Property  0.6  0.8  1.1  1.5
 Administration & finance  0.3  0.4  0.8  0.8
Total expense  0.9  1.2  1.9  2.3
Total revenue less total expense  0.4  0.2  0.6  0.5
Fair value change:            
 Veresen  3.8  (6.6)  6.0  (2.5)
 Osum  -  (0.6)  -  (0.6)
 Other investments in securities  0.5  (0.6)  0.4  (0.6)
 Investment properties  2.0  0.4  0.8  (1.4)
Total fair value change  6.3  (7.4)  7.2  (5.1)
Income tax (expense) recovery  -  1.4  -  0.7
Net income (loss)  6.7  (5.8)  7.8  (3.8)
Net income(loss) per share  $0.52  $(0.45)  $0.61  $(0.30)
             
 
 
   Jul 31  Jan 31  Jul 31
in millions of Canadian dollars  2016  2016  2015
Fair value of investments:         
 Veresen  21.9  16.0  29.6
 Osum  4.7  4.8  5.6
 Other investment in securities  3.3  2.7  3.7
 Investment properties  30.9  30.1  29.4
Other assets  1.2  1.8  1.4
Debt & payables  6.6  7.2  7.3
Deferred tax payable  -  -  0.1
Shareholders' equity  55.4  48.2  62.3
 
       
         
   Quarter ended  Year to date ended  
   Jul 31   Jul 31   Jul 31   Jul 31  
in millions of Canadian dollars  2016   2015   2016   2015  
Cash flow from:                 
Operations                 
 Cash receipts  1.4   1.1   2.7   2.9  
 Cash disbursements & finance expense  (1.5 ) (1.4 ) (2.3 ) (3.0 )
 Income taxes recovered (paid)  -   -   0.6   (0.2 )
Investing                 
 Proceeds on sale of investment in securities  -   0.1   -   0.1  
 Acquisition of investments  -   -   -   -  
 Expenditures on investment properties  -   (0.2 ) -   (0.3 )
Financing                 
 Increase (decrease) in debt  0.5   1.2   (0.4  1.6  
 Purchase of share capital for cancellation  -   (0.4 ) -   (0.6 )
 Dividends paid  (0.3 ) (0.3 ) (0.6 ) (0.6 )
 
 
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
 
   Jul 31  Jan 31  Jul 31
(unaudited - thousands of Canadian dollars)  2016  2016  2015
ASSETS         
Current assets         
 Cash  64  110  82
 Income tax recoverable  -  800  -
 Receivables  884  638  989
Total current assets  948  1,548  1,071
Non-current assets         
 Investment in securities (note 2)  29,869  23,461  38,912
 Investment properties  30,940  30,130  29,437
 Furnishings and equipment  164  170  190
 Deferred income tax asset  32  136  -
Total non-current assets  61,035  53,897  68,539
Total assets  61,953  55,445  69,610
          
LIABILITIES         
Current liabilities         
 Credit facilities (note 3)  4,698  5,098  5,196
 Payables  874  1,151  1,100
Total current liabilities  5,572  6,249  6,296
Non-current liabilities         
 Post employment benefit obligation  951  951  1,012
 Deferred income tax payable  -  -  50
Total non-current liabilities  951  951  1,062
Total liabilities  6,523  7,200  7,358
SHAREHOLDERS' EQUITY  55,430  48,245  62,252
Total liabilities and shareholders' equity  61,953  55,445  69,610
       
       
       
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME  
FOR THE PERIODS ENDED JULY 31  
  
(unaudited - thousands of Canadian  Quarter ended   Year-to-date ended  
dollars except for share data)  2016  2015   2016   2015  
Revenue                
 Lease rentals  796  859   1,492   1,835  
 Dividends and other income  520  520   1,051   1,040  
Total revenue  1,316  1,379   2,543   2,875  
Expense                
 Property  583  810   1,142   1,493  
 Administration  322  378   703   771  
 Finance  32  38   63   66  
Total expense  937  1,226   1,908   2,330  
Total revenue less total expense  379  153   635   545  
Fair value change                
 Investment properties  1,950  371   808   (1,438 )
 Investment in securities  4,305  (7,729 ) 6,387   (3,641 )
Total fair value change  6,255  (7,358 ) 7,195   (5,079
Income (loss) before income tax  6,634  (7,205 ) 7,730   (4,534 )
Income tax (expense) recovery  57  1,422   (3 ) 689  
Net income (loss) from operations and comprehensive income(loss)  6,691  (5,783 ) 7,827   (3,845 )
Net income (loss) from operations per share  $0.51  $(0.45 ) $0.61   $(0.30 )
            
            
            
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
  
(unaudited - thousands - shares & Canadian dollars as applicable)  Share Capital   Retained earnings   Total  
   #   $   $   $  
Balance - July 31, 2016  13,046   13,713   53,667   67,380  
Comprehensive loss          (3,845 ) (3,845 )
Dividends          (649 ) (649 )
Purchase of share capital for cancellation  
(175
) 
(183
) 
(451
) 
(634
)
Balance - July 31, 2015  12,781   13,530   48,722   62,252  
For the remainder of the year:                 
Comprehensive loss          (13,132 ) (13,132 )
Dividends          (642 ) (642 )
Purchase of share capital for cancellation  (70 ) (73 ) (160 ) (233 )
Balance - January 31, 2016  12,801   13,457   34,788   48,245  
Comprehensive income          7,827   7,827  
Dividends          (640 ) (640 )
Purchase of share capital for cancellation  (1 ) (1 ) (2 ) (2 )
Balance - July 31, 2016  12,800   13,456   41,974   55,430  
             
             
             
GENDIS INC. 
INTERIM CONDENSED STATEMENT OF CASH FLOWS 
FOR THE PERIODS ENDED JULY 31 
  
(unaudited - thousands of Canadian dollars)  Quarter ended   Year-to-date ended  
   2016   2015   2016   2015  
Changes in cash position                 
By operations                 
 Cash receipts                 
  Lease rentals  655   512   1,465   1,863  
  Investment income and recoverable costs  597   596   1,192   1,050  
 Cash disbursements                 
  Property  (861 ) (872 ) (1,352 ) (1,453 )
  Administration  (482 ) (482 ) (864 ) (937 )
 Income taxes recovered (paid)  -   -   638   (224 )
 Finance expense paid  (32 ) (37 ) (63 ) (65 )
Total by operations  (123 ) (283 ) 1,016   234  
By investing activities                 
 Acquisition of investment in securities  -   -   -   (300 )
 Proceeds from sale of investment in securities  -   125   -   125  
 Expenditures on investment properties  -   (209 ) (2 ) (298 )
 Proceeds from sale furnishings and equipment  -   -   -   85  
 Expenditures on furnishings and equipment  (2 ) (21 ) (18 ) (115 )
Total by investing activities  (2 ) (105 ) (20 ) (503 )
By financing activities                 
 Net advance (repayment) of credit facilities  500   1,202   (400 ) 1,599  
 Purchase of share capital for cancellation  -   (447 ) -   (635 )
 Dividends paid  (320 ) (323 ) (640 ) (649 )
Total by financing activities  180   432   (1,042 ) 315  
Increase (decrease) in cash  55   44   (46 ) 46  
Cash - beginning of period  9   38   110   36  
Cash - end of period  64   82   64   82  
             
             

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
July 31, 2016
(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
   
   Jul 31  Jan 31
   2016  2016
 Veresen  21,920  15,960
 Osum  4,739  4,739
 Other security investments  3,210  2,742
   29,869  23,461
     
3. Credit facilities
          
   Borrowing Balance     Remaining borrowing availability  Carrying value of collateral
   Jul 31  Jan 31  Jul 31  Jan 31  Jul 31  Jan 31
   2016  2016  2016  2016  2016  2016
 Bank borrowing  4,698  5,098  5,300  2,289  20,463  14,778
 Broker's margin account  -  -  812  591  1,623  1,199
   4,698  5,098  6,112  2,880  22,086  15,977
                   
4.  Subsequent Event
  On September 1, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 23, 2016, payable October 7, 2016.
   
5.  Operating segments 
   
   Quarter
Ended
Jul 31
 
Realty
  
Corporate
  Inter-segment   
Total
 
Revenue  2016  813   727   (224 ) 1,316  
   2015  877   7,30   (228 ) 1,379  
Property & administration  2016  644   339   (77 ) 905  
expense  2015  873   396   (81 ) 1,188  
Finance expense  2016  146   32   (146 ) 32  
   2015  147   38   (147 ) 38  
Total revenue less total  2016  29   356   -   356  
expense  2015  (143 ) 296   -   153  
Fair value change  2016  1,950   4,305   -   6,255  
   2015  371   (7,729 ) -   (7,358 )
Income tax recovery (expense)  2016  1   56       57  
   2015  (12 ) 1,434   -   1,422  
Comprehensive income (loss)  2016  1,974   4,717   -   6,691  
   2015  216   (5,999 ) -   (5,783 )
               
                     
   YTD
Ended
Jul 31
 

Realty
  

Corporate
  
Inter-Segment
  

Total
 
Revenue  2016  1,527   1,464   (448 ) 2,543  
   2015  1,870   1,457   (452 ) 2,875  
Property & administration  2016  1,263   738   (156 ) 1,845  
expense  2015  1,619   806   (161 ) 2,264  
Finance expense  2016  292   63   (292 ) 63  
   2015  291   66   (291 ) 66  
Total revenue less total  2016  (28 ) 663   -   635  
expense  2015  (40 ) 585   -   545  
Fair value change  2016  808   6,387   -   7,195  
   2015  (1,438 ) (3,641 ) -   (5,079 )
Income tax recovery (expense)  2016  14   (17 ) -   3  
   2015  204   485   -   689  
Comprehensive income (loss)  2016  794   7,330   -   7,827  
   2015  (1,274 ) (2,571 ) -   (3,845 )
Total assets  2016  32,028   52,939   (23,014 ) 61,953  
   2015  30,257   60,917   (21,564 ) 69,610  
Total liabilities  2016  23,306   6,231   (23,014 ) 6,523  
   2015  22,498   6,424   (21,564 ) 7,358  
               

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