Gendis Inc. Announces Second Quarter Results

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

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.
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

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

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.

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:

Gendis Inc. Announces Second Quarter Results

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