SOURCE: Gendis Inc.

Gendis Inc.

December 02, 2016 14:31 ET

Gendis Inc. Announces Third Quarter Results

WINNIPEG, MB--(Marketwired - December 02, 2016) - Gendis Inc. (TSX: GDS) today announced its financial results for the 3rd quarter ended October 31, 2016.

Revenue for the 3rd quarter was $1,198,000 compared to $1,269,000 for last year. Revenue less expense for the 3rd quarter was a loss of $107,000 compared to a profit of $544,000 for last year. Net earnings for the 3rd quarter were $1,188,000 ($0.09 per share) compared to a loss of $6,546,000 ($0.50 per share) for last year.

Revenue year-to-date was $3,741,000 compared to $4,144,000 year-to-date last year. Revenue less expense year-to-date was $528,000 compared to $1,089,000 year-to-date last year. Net earnings year-to-date were $9,015,000 ($0.70 per share) compared to net loss of $10,391,000 ($0.80 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, primarily the Company's investment in 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  Oct 31   Oct 31   Oct 31  Oct 31  
except per share  2016   2015   2016  2015  
Revenue                  
 Lease rental revenue  0.7    0.8   2.2   2.6  
 Dividends & other income  0.5    0.5   1.5   1.5  
Total revenue  1.2    1.3   3.7   4.1  
Expense                  
 Property  0.9    0.3   2.1   1.9  
 Administration & finance  0.4    0.4   1.1   1.2  
Total expense  1.3    0.7   3.2   3.1  
Total revenue less total expense  (0.1 )  0.6   0.5   1.0  
Fair value change:                  
 Veresen  2.4    (6.8 ) 8.4   (9.4 )
 Osum  -    -   -   (0.6 )
 Other security investments  (0.4 )  -   -   (0.4 )
 Investment properties  (0.8 )  (0.3 ) -   (1.7 )
Total fair value change  1.2    (7.1 ) 8.4   (12.1 )
Income tax (expense)recovery  0.1    -   0.1   0.7  
Net earnings (loss)  1.2    (6.5 ) 9.0   (10.4 )
Earnings (loss) per share  0.09   $(0.50 ) 0.70  $(0.80 )
                   
              
     Oct 31  Jan 31  Oct 31 
in millions of Canadian dollars    2016  2016  2015 
Fair value of investments:            
 Veresen    24.3  16.1  22.7 
 Osum    4.8  4.8  5.6 
 Other security investments    2.8  2.6  3.9 
 Investment properties    30.2  30.1  29.2 
Other assets    1.4  1.8  0.9 
Debt & payables    7.2  7.2  7.1 
Shareholders' equity    56.3  48.2  55.2 
             
  Quarter ended
  Year to date ended 
  Oct 31  Oct 31  Oct 31  Oct 31 
in millions of Canadian dollars 2016  2015  2016  2015 
Cash flow from:            
Operations            
 Cash receipts            
  Lease rentals 0.9  1.0  2.6  2.8 
  Dividends & other income 0.6  0.7  1.6  1.8 
 Cash disbursements            
  Property (0.4) (0.5) (2.0) (1.9)
  Administration & finance expense (0.4) (0.4) (1.1) (1.5)
 Income taxes recovered (paid) -  -  0.6  (0.2)
Investing            
 Proceeds on sales of security investments -  -  -  0.1 
 Purchase of security investments -  -  -  (0.3)
 Expenditures on investment properties and equipment -  (0.1) (0.1) (0.4)
Financing            
 Increase (decrease) in debt (0.2) (0.2) (0.6) 1.4 
 Purchase of share capital for cancellation -  (0.2) -  (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)  2016  2016  2015
ASSETS         
Current assets         
 Cash  146  110  39
 Income tax recoverable  -  800  -
 Receivables  967  638  692
Total current assets  1,113  1,548  731
Non-current assets         
 Investment in securities (note 2)  31,849  23,461  32,130
 Investment properties  30,200  30,130  29,247
 Furnishings and equipment  152  170  182
 Deferred income tax  208  136  -
Total non-current assets  62,409  53,897  61,559
Total assets  63,522  55,445  62,290
          
LIABILITIES         
Current liabilities         
 Credit facilities (note 3)  4,495  5,098  4,998
 Payables  1,778  1,151  1,050
Total current liabilities  6,273  6,249  6,048
Non-current liabilities         
 Post employment benefit obligation  951  951  1,012
Total non-current liabilities  951  951  1,012
Total liabilities  7,224  7,200  7,060
SHAREHOLDERS' EQUITY  56,298  48,245  55,230
Total liabilities and shareholders' equity  63,522  55,445  62,290
       
       
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)  2016  2015  2016  2015
Revenue                  
 Lease rentals  683    744   2,175   2,579  
 Dividends & other income  515    525   1,566   1,565  
Total revenue  1,198    1,269   3,741   4,144  
Expense                  
 Property  928    362   2,070   1,855  
 Administration  343    332   1,046   1,103  
 Finance  34    31   97   97  
Total expense  1,305    725   3,213   3,055  
Total revenue less total expense  (107 )  544   528   1,089  
Fair value change                  
 Investment properties  (783 )  (293 ) 25   (1,731 )
 Investment in securities  1,971    (6,793 ) 8,358   (10,434 )
Total fair value change  1,188    (7,086 ) 8,383   (12,165 )
Earnings (loss) before income tax  1,081    (6,542 ) 8,911   (11,076 )
Income tax (expense) recovery  107    (4 ) 104   685  
Net earnings (loss) from operations and comprehensive income (loss)  
1,188
   
(6,546
) 
9,015
  
(10,391
)
Net earnings (loss) from operations per share  
0.09
  $
(0.50
) 
0.70
 $
(0.80
)
              
              
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, 2015  13,046   13,713   53,667   67,380  
Comprehensive loss          (10,391 ) (10,391 )
Purchase of share capital for cancellation          (971 ) (971 )
Dividends  (220 ) (230 ) (558 ) (788 )
Balance - October 31, 2015  12,826   13,483   41,747   55,230  
For the remainder of the year:                 
 Comprehensive loss          (6,586 ) (6,586 )
 Purchase of share capital for cancellation  
(25
) 
(26
) 
(53
) 
(79
)
  Dividend          (320 ) (320 )
Balance - January 31, 2016  12,801   13,457   34,788   48,245  
Comprehensive income          9,015   9,015  
Purchase of share capital for cancellation  
(1
) 
(1
) 
(1
) 
(2
)
Dividends          (960 ) (960 )
Balance - October 31, 2016  12,800   13,456   42,842   56,298  
             
             
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)  2016  2015  2016  2015
Changes in cash position                 
By operations                 
 Cash receipts                 
  Lease rentals  889   951   2,614   2,813  
  Dividends & other income  557   722   1,549   1,773  
 Cash disbursements                 
  Property  (420 ) (496 ) (2,032 ) (1,949 )
  Administration  (345 ) (408 ) (1,009 ) (1,345 )
 Income taxes recovered (paid)  -   -   638   (224 )
 Finance expense paid  (34 ) (33 ) (97 ) (98 )
Total by operations  647   736   1,663   970  
By investing activities                 
 Proceeds from sale of security investments  
-
  
-
  
-
  
125
 
 Acquisition of security investments  -   -   -   (300 )
 Expenditures on investment properties  (42 ) (103 ) (45 ) (401 )
 Proceeds from sale of equipment  -   -   -   85  
 Expenditures on furnishings and equipment  
-
  
(3
) 
(17
) 
(118
)
Total by investing activities  (42 ) (106 ) (62 ) (609 )
By financing activities                 
 Net advance (repayment) of credit facilities  
(203
) 
(198
) 
(603
) 
1,401
 
 Purchase of share capital for cancellation  
-
  
(153
) 
(2
) 
(788
)
 Dividends paid  (320 ) (322 ) (960 ) (971 )
Total by financing activities  (523 ) (673 ) (1,565 ) (358 )
Increase (decrease) in cash  82   (43 ) 36   3  
Cash - beginning of period  64   82   110   36  
Cash - end of period  146   39   146   39  
             
             
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
October 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
    Oct 31  Jan 31
    2016  2016
 Veresen  24,300  15,960
 Osum  4,759  4,759
 Other security investments  2,790  2,742
    31,849  23,461
        
3.Credit facilities
  Borrowing Balance Remaining borrowing availability Carrying value of collateral
   Oct 31  Jan 31  Oct 31  Jan 31  Oct 31  Jan 31
   2016  2016  2016  2016  2016  2016
 Bank credit facility 4,495  5,098  5,500  2,289  22,501  14,778
 Broker's margin account -  -  900  591  1,799  1,199
   4,495  5,098  6,400  2,880  24,300  15,977
                   
4.Subsequent Event
 On December 2, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 16, 2016, payable January 6, 2017.
  
5.Operating segments
    Quarter Ended Oct 31  

Realty
 

Corporate
 
Inter- segment
 

Total
 Revenue  2016  700   725   (227 ) 1,198  
    2015  761   733   (225 ) 1,269  
 Property & administration  2016  988   360   (77 ) 1,271  
  Expense  2015  425   349   (80 ) 694  
 Finance expense  2016  150   34   (150 ) 34  
    2015  145   31   (145 ) 31  
 Total revenue less total  2016  (438 ) 331   -   (107 )
  expense  2015  191   353   -   544  
 Fair value change  2016  (783 ) 1,971   -   1,188  
    2015  (293 ) (6,793 ) -   (7,086 )
 Income tax recovery (expense)  2016  91   16   -   107  
    2015  (11 ) 7   -   (4 )
 Comprehensive income (loss)  2016  (1,130 ) 2,318   -   1,188  
    2015  (113 ) (6,433 ) -   (6,546 )
                      
    YTD Ended Oct 31  

Realty
 

Corporate
 
Inter- Segment
 

Total
 Revenue  2016  2,227   2,189   (675 ) 3,741  
    2015  2,631   2,190   (677 ) 4,144  
 Property & administration  2016  2,250   1,098   (232 ) 3,116  
  expense  2015  2,044   1,155   (241 ) 2,958  
 Finance expense  2016  443   97   (443 ) 97  
    2015  436   97   (436 ) 97  
 Total revenue less total  2016  (466 ) 994   -   528  
  expense  2015  151   938   -   1,089  
 Fair value change  2016  25   8,358   -   8,383  
    2015  (1,731 ) (10,434 ) -   (12,165 )
 Income tax recovery (expense)  2016  105   (1 ) -   104  
    2015  193   492   -   685  
 Comprehensive income (loss)  2016  (336 ) 9,351   -   9,015  
    2015  (1,387 ) (9,004 ) -   (10,391 )
 Total assets  2016  31,302   54,839   (22,619 ) 63,522  
    2015  29,802   54,755   (22,267 ) 62,290  
 Total liabilities  2016  23,709   6,134   (22,619 ) 7,224  
    2015  23,050   6,277   (22,267 ) 7,060  

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