SOURCE: Gendis Inc.

Gendis Inc.

December 05, 2014 17:42 ET

Gendis Inc. Announces Third Quarter Results

WINNIPEG, MB--(Marketwired - December 05, 2014) - Gendis Inc. (TSX: GDS) today announced its financial results for the 3rd quarter ended October 31, 2014.

Revenue for the 3rd quarter was $1,483,000 compared to $1,500,000 for last year. Revenue less expense for the 3rd quarter was $712,000 compared to $756,000 for last year. Net loss for the 3rd quarter was $1,327,000 ($0.09 per share) compared to net earnings of $1,347,000 ($0.10 per share) for last year.

Revenue year-to-date was $4,321,000 compared to $4,560,000 year-to-date last year. Revenue less expense year-to-date was $2,015,000 compared to $2,038,000 year-to-date last year. Net earnings year-to-date were $5,942,000 ($0.45 per share) compared to a loss of $548,000 ($0.04 per share) year-to-date last year.

The volatility in net earnings quarter over quarter and year over year is primarily due to the change in fair value of investment in securities 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 Oct 31  Oct 31  Oct 31  Oct 31  
except per share 2014  2013  2014  2013  
Revenue             
 Lease rental revenue 1.0  1.0  2.8  3.1  
 Dividends 0.5  0.5  1.5  1.5  
Total revenue 1.5  1.5  4.3  4.6  
Expense             
 Property 0.4  0.4  1.2  1.5  
 Administration & finance 0.4  0.3  1.1  1.1  
Total expense 0.8  0.7  2.3  2.6  
Total revenue less total expense 0.7  0.8  2.0  2.0  
Fair value change:             
 Veresen (1.7 )1.7  5.6  0.1  
 Osum (0.4 )(1.6 )(1.2 )(2.0 )
 Other security investments (0.3 )-  (0.6 )0.3  
 Investment properties 0.2  0.7  1.2  (1.0 )
Total fair value change (2.2 )0.8  5.0  (2.6 )
Income tax (expense)recovery 0.2  (0.3 )(1.1 )0.1  
Net earnings (loss) (1.3 )1.3  5.9  (0.5 )
Earnings (loss) per share $(0.09 )$0.10  $0.45  $(0.04 )
              
    
  Oct 31 Jan 31 Oct 31
in millions of Canadian dollars 2014 2014 2013
Fair value of investments:      
 Veresen 35.3 29.7 25.7
 Osum 10.3 11.5 11.5
 Other security investments 4.1 3.7 3.4
 Investment properties 32.0 30.4 29.0
Other assets 1.1 1.0 0.8
Debt & payables 5.4 3.3 3.2
Deferred tax payable 2.1 1.2 0.4
Shareholders' equity 75.3 71.8 66.8
    
     
  Quarter ended Year to date ended  
  Oct 31  Oct 31  Oct 31  Oct 31  
in millions of Canadian dollars 2014  2013  2014  2013  
Cash flow from:             
Operations             
 Cash receipts 1.7  1.6  5.2  4.8  
 Cash disbursements & finance expense (0.8 )(0.8 )(2.5 )(2.8 )
 Income taxes recovered (paid) -  -  (0.2 )(0.2 )
Investing             
 Proceeds on sales of security investments -  -  -  2.1  
 Purchase of security investments (0.2 )-  (0.9 )-  
 Expenditures on investment properties and equipment
 (0.3
)
 (0.2
)
 (0.5
)
 (0.2
)
Financing             
 Increase (decrease) in debt 0.5  0.1  1.6  (1.9 )
 Purchase of share capital for cancellation (0.5 )(0.4 )(1.5 )(0.8 )
 Dividends (0.3 )(0.3 )(1.0 )(1.0 )
  
              
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
  Oct 31 Jan 31 Oct 31
(unaudited - thousands of Canadian dollars) 2014 2014 2013
ASSETS      
Current assets      
 Cash 156 47 99
 Receivables 845 995 627
Total current assets 1,001 1,042 726
Non-current assets      
 Investment in securities (note 2) 49,661 44,927 40,610
 Investment properties 31,975 30,385 28,965
 Furnishings and equipment 164 61 59
Total non-current assets 81,800 75,373 69,634
Total assets 82,801 76,415 70,360
       
LIABILITIES      
Current liabilities      
 Credit facilities (note 3) 3,197 1,599 1,599
 Payables 1,252 806 566
Total current liabilities 4,449 2,405 2,165
Non-current liabilities      
 Post employment benefit obligation 937 937 972
 Deferred income tax payable 2,136 1,231 385
Total non-current liabilities 3,073 2,168 1,357
Total liabilities 7,522 4,573 3,522
SHAREHOLDERS' EQUITY 75,279 71,842 66,838
Total liabilities and shareholders' equity 82,801 76,415 70,360
  
  
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME  
FOR THE PERIODS ENDED OCTOBER 31  
  
(unaudited - thousands of Canadian Quarter ended  Year-to-date ended  
dollars except for share data) 2014  2013  2014  2013  
Revenue             
 Lease rentals 962  987  2,798  3,046  
 Dividends 521  513  1,523  1,514  
Total revenue 1,483  1,500  4,321  4,560  
Expense             
 Property 399  414  1,175  1,451  
 Administration 342  313  1,061  1,018  
 Finance 30  17  70  53  
Total expense 771  744  2,306  2,522  
Total revenue less total expense 712  756  2,015  2,038  
Fair value change             
 Investment properties 157  743  1,203  (1,037 )
 Investment in securities (2,381 )103  3,796  (1,585 )
Total fair value change (2,224 )846  4,999  (2,622 )
Earnings (loss) before income tax (1,512 )1,602  7,014  (584 )
Income tax (expense) recovery 185  (255 )(1,072 )36  
Net earnings (loss) from operations and comprehensive income (loss)
(1,327
)
1,347
 
5,942
 
(548
)
Net earnings (loss) from operations per share
$(0.09
)
$0.10
 
$0.45
 
$(0.04
)
  
  
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       (548 )(548 )
Purchase of share capital for cancellation (244 )(257 )(510 )(767 )
Dividends       (1,030 )(1,030 )
Balance - October 31, 2013 13,572  14,266  52,572  66,838  
For the remainder of the year:             
Comprehensive income       5,640  5,640  
Purchase of share capital for cancellation (91 )(96 )(202 )(298 )
Dividend       (338 )(338 )
Balance - January 31, 2014 13,481  14,170  57,672  71,842  
Comprehensive income       5,942  5,942  
Purchase of share capital for cancellation (396 )(415 )(1,090 )(1,505 )
Dividends       (1,000 )(1,000 )
Balance - October 31, 2014 13,085  13,755  61,524  75,279  
         
         
GENDIS INC.        
INTERIM CONDENSED STATEMENT OF CASH FLOWS        
FOR THE PERIODS ENDED OCTOBER 31        
         
(unaudited - thousands of Canadian Quarter ended  Year to date ended  
dollars) 2014  2013  2014  2013  
Changes in cash position             
By operations             
 Cash receipts 1,749  1,639  5,233  4,834  
 Cash disbursements (781 )(788 )(2,499 )(2,750 )
 Income taxes (paid) recovered -  -  (211 )(203 )
 Finance expense paid (30 )(17 )(68 )(54 )
Total by operations 938  834  2,455  1,827  
By investing activities             
 Proceeds from sale of security investments -  -  -  2,144  
 Acquisition of security investments (200 )-  (927 )-  
 Expenditures on investment properties (253 )(147 )(387 )(227 )
 Expenditures on furnishings and equipment (14 )(10 )(125 )(25 )
Total by investing activities (467 )(157 )(1,439 )1,892  
By financing activities             
 Net advance (repayment) of credit facilities 500  100  1,598  (1,900 )
 Purchase of share capital for cancellation (528 )(444 )(1,505 )(767 )
 Dividends paid (330 )(342 )(1,000 )(1,030 )
Total by financing activities (358 )(686 )(907 )(3,697 )
Increase (decrease) in cash 113  (9 )109  22  
Cash - beginning of period 43  108  47  77  
Cash - end of period 156  99  156  99  

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

  Oct 31 Jan 31
  2014 2014
 Veresen 35,360 29,740
 Osum 10,312 11,502
 Other security investments 3,989 3,685
  49,661 44,927
     

3. Credit facilities

  Borrowing Balance  Remaining borrowing availa-bility Carrying value of collateral
  Oct 31 Jan 31 Oct 31 Jan 31 Oct 31 Jan 31
  2014 2014 2014 2014 2014 2014
 Banker's acceptances 2,997 1,499        
 Bank demand loan 200 100        
   3,197 1,599 6,800 8,400 32,760 27,538
 Broker's margin account - - 1,309 1,101 2,736 2,547
  3,197 1,599 8,109 9,501 35,496 30,085
             

4. Subsequent Event 
On December 4, 2014, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 19, 2014, payable January 9, 2015. 

5. Operating segments    

  
  Quarter
Ended
Oct 31


Realty
 

Corporate
 
Inter-
segment
 

Total
 
Revenue 2014 979  747  (243 )1,483  
  2013 1,004  723  (227 )1,500  
Property & administration 2014 453  359  (71 )741  
expense 2013 468  330  (71 )727  
Finance expense 2014 172  30  (172 )30  
  2013 156  17  (156 )17  
Total revenue less total 2014 354  358  -  712  
expense 2013 380  376  -  756  
Fair value change 2014 157  (2,381 )-  (2,224 )
  2013 743  103  -  846  
Income tax recovery (expense) 2014 25  160  -  185  
  2013 (303 )48  -  (255 )
Net earnings from operations 2014 536  (1,863 )-  (1,327 )
& Comprehensive income 2013 820  527  -  1,347  
                
  YTD
Ended
Oct 31


Realty
 

Corporate
 
Inter-
segment
 

Total
 
Revenue 2014 2,850  2,205  (734 )4,321  
  2013 3,098  2,145  (683 )4,560  
Property & administration 2014 1,336  1,114  (214 )2,236  
expense 2013 1,613  1,070  (214 )2,469  
Finance expense 2014 520  70  (520 )70  
  2013 469  53  (469 )53  
Total revenue less total 2014 994  1,021     2,015  
expense 2013 1,016  1,022  -  2,038  
Fair value change 2014 1,203  3,976  -  4,999  
  2013 (1,037 )(1,585 )-  (2,622 )
Income tax recovery (expense) 2014 (430 )(642 )-  (1,072 )
  2013 6  30  -  36  
Net earnings from operations 2014 1,767  4,175  -  5,942  
& Comprehensive income 2013 (15 )(533 )-  (548 )
Total assets 2014 32,743  75,515  (22,456 )82,801  
  2013 29,443  62,060  (21,143 )70,360  
Total liabilities 2014 24,678  5,300  (22,456 )7,522  
  2013 21,368  3,297  (21,143 )3,522  

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