SOURCE: Gendis Inc.

Gendis Inc.

September 03, 2015 15:27 ET

Gendis Inc. Announces Second Quarter Results

WINNIPEG, MB--(Marketwired - September 03, 2015) - Gendis Inc. (TSX: GDS) today announced its financial results for the 2nd quarter ended July 31, 2015.
Revenue for the 2nd quarter was $1,379,000 compared to $1,439,000 for the 2nd quarter last year. Revenue less expense for the 2nd quarter was $153,000 compared to $660,000 for the 2nd quarter last year. Net loss for the 2nd quarter was $5,783,000 ($0.45 per share) compared to net income $4,829,000 ($0.36 per share) for the 2nd quarter last year.

Revenue year-to-date was $2,875,000 compared to $2,838,000 year-to-date last year. Revenue less expense year-to-date was $545,000 compared to $1,303,000 year-to-date last year. Net loss year-to-date was $3,845,000 ($0.30 per share) compared to net income of $7,269,000 ($0.54 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 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 2015  2014  2015  2014  
Revenue             
 Lease rental revenue 0.9  0.9  1.8  1.8  
 Dividends 0.5  0.5  1.1  1.0  
Total revenue 1.4  1.4  2.9  2.8  
Expense             
 Property 0.8  0.4  1.5  0.8  
 Administration & finance 0.4  0.3  0.8  0.7  
Total expense 1.2  0.7  2.3  1.5  
Total revenue less total expense 0.2  0.7  0.5  1.3  
Fair value change:             
 Veresen (6.6 )4.6  (2.5 )7.3  
 Osum (0.6 )(0.8 )(0.6 )(0.8 )
 Other investments in securities (0.6 )0.1  (0.6 )(0.3 )
 Investment properties 0.4  1.0  (1.4 )1.0  
Total fair value change 7.4  4.9  (5.1 )7.2  
Income tax (expense) recovery 1.4  (0.8 )0.7  (1.2 )
Net income (loss) (5.8 )4.8  (3.8 )7.3  
Net income(loss) per share $(0.45 )$0.36  $(0.30 )$0.54  
              
     
  Jul 31 Jan 31 Jul 31
in millions of Canadian dollars 2015 2015 2014
Fair value of investments:      
 Veresen 29.6 32.1 37.0
 Osum 5.6 6.2 10.7
 Other investment in securities 3.7 4.1 4.1
 Investment properties 29.4 30.5 31.6
Other assets 1.4 1.0 1.1
Debt & payables 7.3 5.7 4.6
Deferred tax payable 0.1 0.8 2.4
Shareholders' equity 62.3 67.3 77.5
       
     
  Quarter ended  Year to date ended  
  Jul 31  Jul 31  Jul 31  Jul 31  
in millions of Canadian dollars 2015  2014  2015  2014  
Cash flow from:             
Operations             
 Cash receipts 1.1  1.9  2.9  3.5  
 Cash disbursements & finance expense (1.4 )(1.3 )(3.0 )(1.8 )
 Income taxes paid -  -  (0.2 )(0.2 )
Investing             
 Proceeds on sale of investment in securities 0.1  -  0.1  -  
 Acquisition of investments -  (0.5 )-  (0.7 )
 Expenditures on investment properties (0.2 )(0.1 )(0.3 )(0.1 )
Financing             
 Increase (decrease) in debt 1.2  1.1  1.6  1.1  
 Purchase of share capital for cancellation (0.4 )(0.7 )(0.6 )(1.0 )
 Dividends paid (0.3 )(0.3 )(0.6 )(0.7 )
              
 
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
  Jul 31 Jan 31 Jul 31
(unaudited - thousands of Canadian dollars) 2015 2015 2014
ASSETS      
Current assets      
 Cash 82 36 43
 Receivables 989 818 935
Total current assets 1,071 854 978
Non-current assets      
 Investment in securities (note 2) 38,912 42,358 51,830
 Investment properties 29,437 30,577 31,565
 Furnishings and equipment 190 159 158
Total non-current assets 68,539 73,094 83,553
Total assets 69,610 73,948 84,531
       
LIABILITIES      
Current liabilities      
 Credit facilities (note 3) 5,196 3,597 2,697
 Payables 1,100 1,099 1,056
Total current liabilities 6,296 4,696 3,753
Non-current liabilities      
 Post employment benefit obligation 1,012 1,012 937
 Deferred income tax payable 50 860 2,378
Total non-current liabilities 1,062 1,872 3,315
Total liabilities 7,358 6,568 7,068
SHAREHOLDERS' EQUITY 62,252 67,380 77,463
Total liabilities and shareholders' equity 69,610 73,948 84,531
    
  
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) 2015  2014  2015  2014  
Revenue             
 Lease rentals 859  937  1,835  1,836  
 Dividends and other income 520  502  1,040  1,002  
Total revenue 1,379  1,439  2,875  2,838  
Expense             
 Property 810  403  1,493  775  
 Administration 378  352  771  720  
 Finance 38  24  66  40  
Total expense 1,226  779  2,330  1,535  
Total revenue less total expense 153  660  545  1,303  
Fair value change             
 Investment properties 371  1,046  (1,438 )1,046  
 Investment in securities (7,729 )3,901  (3,641 )6,177  
Total fair value change (7,358 )4,947  (5,079  7,223  
Income (loss) before income tax (7,205 )5,607  (4,534 )8,526  
Income tax (expense) recovery 1,422  (778 )689  (1,257 )
Net income (loss) from operations and comprehensive income (loss) (5,783 )4,829  (3,845 )7,269  
Net income (loss) from operations per share $(0.45 )$0.36  $(0.30 )$0.54  
  
  
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, 2014 13,481  14,170  57,672  71,842  
Comprehensive income       7,269  7,269  
Dividends       (670 )(670 )
Purchase of share capital for cancellation
(265
)
(278
)
(700
)
(978
)
Balance - July 31, 2014 13,216  13,892  63,571  77,463  
For the remainder of the year:             
Dividends       (656 )(656 )
Comprehensive loss       (8,750 )(8,750 )
Purchase of share capital for cancellation
(170
)
(179
)
(498
)
(677
)
Balance - January 31, 2015 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  
         
  
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  
  2015  2014  2015  2014  
Changes in cash position             
By operations             
 Cash receipts 1,108  1,871  2,913  3,485  
 Cash disbursements (1,354 )(1,293 )(2,390 )(1,719 )
 Income taxes paid -  -  (224 )(211 )
 Finance expense paid (37 )(21 )(65 )(38 )
Total by operations (283 )557  234  1,517  
By investing activities             
 Acquisition of investment in securities -  (500 )(300 )(726 )
 Proceeds from sale of investment in securities 125  -  125  -  
 Expenditures on investment properties (209 )(134 )(298 )(134 )
 Proceeds from sale furnishings and equipment -  2  85  2  
 Expenditures on furnishings and equipment (21 )(31 )(115 )(113 )
Total by investing activities (105 )(663 )(503 )(971 )
By financing activities             
 Net advance (repayment) of credit facilities 1,202  1,098  1,599  1,098  
 Purchase of share capital for cancellation (447 )(678 )(635 )(978 )
 Dividends paid (323 )(333 )(649 )(670 )
Total by financing activities 432  87  315  (550 )
Increase (decrease) in cash 44  (19 )46  (4 )
Cash - beginning of period 38  62  36  47  
Cash - end of period 82  43  82  43  

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
  2015 2015
Veresen 29,580 32,120
Osum 5,552 6,187
Other security investments 3,780 4,051
  38,912 42,358
  1. Credit facilities
  Borrowing
Balance
Remaining
borrowing
availability
Carrying value
of collateral
  Jul 31 Jan 31 Jul 31 Jan 31 Jul 31 Jan 31
  2015 2015 2015 2015 2015 2015
Banker's acceptances 4,996 3,497        
Bank demand loan 200 100        
  5,196 3,597 4,800 6,400 27,408 29,742
Broker's margin account - - 1,096 1,189 2,212 2,457
  5,196 3,597 5,896 7,589 29,620 32,199
             
  1. Subsequent Event
    On September 3, 2015, the Company declared a regular dividend of 2.5¢ per share to shareholders of record September 18, 2015, payable October 2, 2015.
  1. Operating segments
  Quarter
Ended
Jul 31


Realty
 

Corporate
 
Inter-
segment
 

Total
 
Revenue 2015 877  7,30  (228 )1,379  
  2014 955  729  (245 )1,439  
Property & administration 2015 873  396  (81 )1,188  
expense 2014 458  368  (71 )755  
Finance expense 2015 147  38  (147 )38  
  2014 174  24  (174 )24  
Total revenue less total 2015 (143 )296  -  153  
expense 2014 323  337  -  660  
Fair value change 2015 371  (7,729 )-  (7,358 )
  2014 1,046  3,901  -  4,947  
Income tax recovery (expense) 2015 (12 )1,434  -  1,422  
  2014 (369 )(409 )-  (778 )
Comprehensive income (loss) 2015 216  (5,999 )-  (5,783 )
  2014 1,000  3,829  -  4,829  
                
  YTD
Ended
Jul 31


Realty
 

Corporate
 
Inter-
Segment
 

Total
 
          
Revenue 2015 1,870  1,457  (452 )2,875  
  2014 1,871  1,458  (491 )2,838  
Property & administration 2015 1,619  806  (161 )2,264  
expense 2014 884  754  (143 )1,495  
Finance expense 2015 291  66  (291 )66  
  2014 348  40  (348 )40  
Total revenue less total 2015 (40 )585  -  545  
expense 2014 639  664  -  1,303  
Fair value change 2015 (1,438 )(3,641 )-  (5,079 )
  2014 1,046  6,177  -  7,223  
Income tax recovery (expense) 2015 204  485  -  689  
  2014 (455 )(802 )-  (1,257 )
Comprehensive income (loss) 2015 (1,274 )(2,571 )-  (3,845 )
  2014 1,230  6,039  -  7,269  
Total assets 2015 30,257  60,917  (21,564 )69,610  
  2014 32,291  73,862  (21,622 )84,531  
Total liabilities 2015 22,498  6,424  (21,564 )7,358  
  2014 24,762  3,928  (21,622 )7,068  

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: Email contact