SOURCE: Gendis Inc.

Gendis Inc.

September 05, 2014 17:37 ET

Gendis Inc. Announces Second Quarter Results

WINNIPEG, MB--(Marketwired - September 05, 2014) - Gendis Inc. (TSX: GDS) today announced its financial results for the 2nd quarter ended July 31, 2014.

Revenue for the 2nd quarter was $1,439,000 compared to $1,639,000 for the 2nd quarter last year. Revenue less expense for the 2nd quarter was $660,000 compared to $627,000 for the 2nd quarter last year. Net income for the 2nd quarter was $4,829,000 ($0.36 per share) compared to a loss of $3,740,000 ($0.27 per share) for the 2nd quarter last year.

Revenue year-to-date was $2,838,000 compared to $3,059,000 year-to-date last year. Revenue less expense year-to-date was $1,303,000 compared to $1,282,000 year-to-date last year. Net income year-to-date was $7,269,000 ($0.54 per share) compared to a loss of $1,895,000 ($0.14 per share) year-to-date last year.

In the 2nd quarter of the year, the Company invested $0.5-million in a convertible debenture of Vive Crop Protection Inc., a private Canadian company that designs, develops and markets active ingredient delivery systems. Subsequent to the 2nd quarter end, the Company invested $0.2-million for 1-million shares in San Angelo Oil Limited, a start-up private Canadian conventional oil exploration and development company that will operate in north central Texas.

The volatility in net income quarter over quarter and year over year is primarily due to the change in fair value of equity investments 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  2014   2013   2014   2013  
Revenue                     
 Lease rental revenue   0.9    1.2    1.8    2.1  
 Dividends   0.5    0.5    1.0    1.0  
Total revenue   1.4    1.7    2.8    3.1  
Expense                     
 Property   0.4    0.7    0.8    1.0  
 Administration & finance   0.3    0.3    0.7    0.8  
Total expense   0.7    1.0    1.5    1.8  
Total revenue less total expense   0.7    0.7    1.3    1.3  
Fair value change:                     
 Veresen   4.6    (2.8 )  7.3    (1.7 )
 Osum   (0.8 )  -    (0.8 )  (0.4 )
 Other investments in securities   0.1    0.7    (0.3 )  0.4  
 Investment properties   1.0    (2.9 )  1.0    (1.8 )
Total fair value change   4.9    (5.0 )  7.2    (3.5 )
Income tax (expense) recovery   (0.8 )  0.6    (1.2 )  0.3  
Net income (loss)   4.8    (3.7 )  7.3    (1.9 )
Net income(loss) per share  $0.36   $(0.27 ) $0.54   $(0.14 )
                      
                 
       
   Jul 31  Jan 31  Jul 31
in millions of Canadian dollars  2014  2014  2013
Fair value of investments:         
 Veresen  37.0  29.7  24.0
 Osum  10.7  11.5  13.1
 Other investment in securities  4.1  3.7  3.4
 Investment properties  31.6  30.4  28.1
Other assets  1.1  1.0  0.9
Debt & payables  4.6  3.3  3.0
Deferred tax payable  2.4  1.2  0.2
Shareholders' equity  77.5  71.8  66.3
          
       
   Quarter ended  Year to date ended  
   Jul 31   Jul 31   Jul 31   Jul 31  
in millions of Canadian dollars  2014   2013   2014   2013  
Cash flow from:                 
Operations                 
 Cash receipts  1.4   1.6   3.5   3.2  
 Cash disbursements & finance expense  (0.8 ) (1.3 ) (1.8 ) (2.0 )
 Income taxes paid  -   -   (0.2 ) (0.2 )
Investing                 
 Proceeds on sale of investment in securities  -   0.1   -   2.1  
 Acquisition of investments  (0.5 ) -   (0.7 ) -  
 Expenditures on investment properties  (0.1 ) -   (0.1 ) (0.1 )
Financing                 
 Increase (decrease) in debt  1.1   0.2   1.1   (2.0 )
 Purchase of share capital for cancellation  (0.7 ) (0.2 ) (1.0 ) (0.3 )
 Dividends paid  (0.3 ) (0.3 ) (0.7 ) (0.7 )
                  
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
   Jul 31  Jan 31  Jul 31
(unaudited - thousands of Canadian dollars)  2014  2014  2013
ASSETS         
Current assets         
 Cash  43  47  108
 Receivables  935  995  719
Total current assets  978  1,042  827
Non-current assets         
 Investment in securities (note 2)  51,830  44,927  40,506
 Investment properties  31,565  30,385  28,075
 Furnishings and equipment  158  61  54
Total non-current assets  83,553  75,373  68,635
Total assets  84,531  76,415  69,462
          
LIABILITIES         
Current liabilities         
 Credit facilities (note 3)  2,697  1,599  1,499
 Payables  1,056  806  528
Total current liabilities  3,753  2,405  2,027
Non-current liabilities         
 Post employment benefit obligation  937  937  972
 Deferred income tax payable  2,378  1,231  186
Total non-current liabilities  3,315  2,168  1,158
Total liabilities  7,068  4,573  3,185
SHAREHOLDERS' EQUITY  77,463  71,842  66,277
Total liabilities and shareholders' equity  84,531  76,415  69,462
       
  
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME  
FOR THE PERIODS ENDED JULY 31  
  
   Quarter ended   Year-to-date ended  
(unaudited - thousands of Canadian dollars except for share data)  2014   2013   2014   2013  
Revenue                     
 Lease rentals   937    1,139    1,836    2,058  
 Dividends and other income   502    500    1,002    1,001  
Total revenue   1,439    1,639    2,838    3,059  
Expense                     
 Property   403    658    775    1,036  
 Administration   352    337    720    705  
 Finance   24    17    40    36  
Total expense   779    1,012    1,535    1,777  
Total revenue less total expense   660    627    1,303    1,282  
Fair value change                     
 Investment properties   1,046    (2,924 )  1,046    (1,780 )
 Investment in securities   3,901    (2,059 )  6,177    (1,688 )
Total fair value change   4,947    (4,983 )  7,223    (3,468 )
Income (loss) before income tax   5,607    (4,356 )  8,526    (2,186 )
Income tax (expense) recovery   (778 )  616    (1,257 )  291  
Net income (loss) from operations and comprehensive income(loss)   4,829    (3,740 )  7,259    (1,895 )
Net income (loss) from operations per share  $0.36   $(0.27 ) $0.54   $(0.14 )
                 
  
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY  
  
(unaudited - thousands - shares & Canadian dollars as applicable)
 Share Capital   Retained earnings   Total  
   #   $   $   $  
Balance - January 31, 2013  13,816   14,523   54,660   69,183  
Comprehensive loss          (1,895 ) (1,895 )
Purchase of share capital for cancellation  (104 ) (109 ) (214 ) (323 )
Dividends paid          (688 ) (688 )
Balance - July 31, 2013  13,712   14,414   51,863   66,277  
For the remainder of the year:                 
Comprehensive income          6,987   6,987  
Purchase of share capital for cancellation  (231 ) (244 ) (498 ) (742 )
Dividends paid          (680 ) (680 )
Balance - January 31, 2014  13,481   14,170   57,672   71,842  
Comprehensive income          7,269   7,269  
Purchase of share capital for cancellation  (265 ) (278 ) (700 ) (978 )
Dividends paid          (670 ) (670 )
Balance - July 31, 2014  13,216   13,892   63,751   77,463  
             
  
GENDIS INC. 
INTERIM CONDENSED STATEMENT OF CASH FLOWS 
FOR THE PERIODS ENDED JULY 31 
          
   Quarter ended   Year-to-date ended  
(unaudited - thousands of Canadian dollars)  2014   2013   2014   2013  
Changes in cash position                 
By operations                 
 Cash receipts  1,871   1,613   3,485   3,241  
 Cash disbursements  (1,293 ) (1,285 ) (1,719 ) (2,011 )
 Income taxes paid  -   -   (211 ) (203 )
 Finance expense paid  (21 ) (16 ) (38 ) (36 )
Total by operations  557   311   1,517   991  
By investing activities                 
 Acquisition of investment in securities  (500 ) -   (726 ) -  
 Proceeds from sale of investment in securities  -   107   -   2,144  
 Expenditures on investment property  (134 ) (14 ) (134 ) (80 )
 Proceeds from sale furnishings and equipment  2   -   2   -  
 Expenditures on furnishings and equipment  (31 ) (9 ) (113 ) (15 )
Total by investing activities  (663 ) 84   (971 ) 2,049  
By financing activities                 
 Net advance (repayment) of credit facilities  1,098   198   1,098   (1,998 )
 Purchase of share capital for cancellation  (678 ) (171 ) (978 ) (323 )
 Dividends paid  (333 ) (343 ) (670 ) (688 )
Total by financing activities  87   (316 ) (550 ) (3,009 )
Increase (decrease) in cash  (19 ) 80   (4 ) 31  
Cash - beginning of period  62   28   47   77  
Cash - end of period  43   108   43   108  
             

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
January 31, 2014
(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, 2014, 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, 2014. These policies have been consistently applied to all periods presented.
   
   
2. Investment in securities
     
   Jul 31  Jan 31
   2014  2014
 Veresen  37,020  29,740
 Osum  10,709  11,502
 Other equity investments  4,101  3,685
   51,830  44,927
   
   
3.  Credit facilities
   
   Borrowing Balance   Remaining borrowing availability  Carrying value of collateral
   Jul 31  Jan 31  Jul 31  Jan 31  Jul 31  Jan 31
   2014  2014  2014  2014  2014  2014
 Banker's acceptances  2,497  1,499            
 Bank demand loan  200  100            
    2,697  1,599  7,300  8,400  34,316  27,538
 Broker's margin account  -  -  1,371  1,101  2,993  2,547
   2,697  1,599  8,671  9,501  37,309  30,085
                   
   
4.
 Subsequent Event
  On September 5, 2014, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 19, 2014, payable October 3, 2014.
   
   
5. Operating segments
   
   Quarter
Ended
Jul 31
 

Realty
  

Corporate
  
Inter-
segment
  

Total
 
 Revenue  2014  955   729   (245 ) 1,439  
    2013  1,157   710   (228 ) 1,639  
                
 Property & administration expense  2014  458   368   (71 ) 755  
   2013  713   353   (71 ) 995  
                
 Finance expense  2014  174   24   (174 ) 24  
    2013  157   17   (157 ) 17  
                
 Total revenue less total expense  2014  323   337   -   660  
   2013  287   340   -   627  
                
 Fair value change  2014  1,046   3,901   -   4,947  
    2013  (2,924 ) (2,059 ) -   (4,983 )
                
 Income tax recovery (expense)  2014  (369 ) (409 ) -   (778 )
    2013  712   (96 ) -   616  
                
 Net income (loss) from operations & Comprehensive income (loss)  2014  1,000   3,829   -   4,829  
   2013  (1,925 ) (1,815 ) -   (3,740 )
                      
    YTD
Ended
Jul 31
 

Realty
  

Corporate
  
Inter-
segment
  

Total
 
 Revenue  2014  1,871   1,458   (491 ) 2,838  
    2013  2,093   1,421   (455 ) 3,059  
                
 Property & administration expense  2014  884   754   (143 ) 1,495  
   2013  1,145   738   (142 ) 1,741  
                      
 Finance expense  2014  348   40   (348 ) 40  
    2013  313   36   (313 ) 36  
                
 Total revenue less total expense  2014  639   664   -   1,303  
   2013  635   647   -   1,282  
                      
 Fair value change  2014  1,046   6,177   -   7,223  
    2013  (1,780 ) (1,688 ) -   (3,468 )
                      
 Income tax recovery (expense)  2014  (455 ) (802 ) -   (1,257 )
    2013  309   (18 ) -   291  
                
 Net income (loss) from operations & Comprehensive income (loss)  2014  1,230   6,039   -   7,269  
   2013  (836 ) (1,059 ) -   (1,895 )
                      
 Total assets  2014  32,291   73,862   (21,622 ) 84,531  
    2013  28,610   62,260   (21,408 ) 69,462  
                
 Total liabilities  2014  24,762   3,928   (21,622 ) 7,068  
   2013  21,355   3,238   (21,408 ) 3,185  
               
               

Contact Information

  • For more information, please contact:
    James E. Cohen
    President & Chief Executive Officer
    Telephone:  (204)474-5200 
    E-mail:  finance@gendis.ca 
    Fax:  (204)474-5201
    Web site:  www.gendis.ca