Gendis Inc.

TSX : GDS


Gendis Inc.

December 10, 2012 18:25 ET

Gendis Inc. Announces Third Quarter Results

WINNIPEG, MANITOBA--(Marketwire - Dec. 10, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3rd quarter ended October 31, 2012 of the fiscal year ending January 31, 2013.

Revenue for the 3rd quarter was $1,431,000 compared to $1,419,000 for last year's 3rd quarter. Net loss for the 3rd quarter was $791,000 ($0.06 per share) compared to a profit of $3,015,000 ($0.21 per share) for last year's 3rd quarter.

Revenue year-to-date was $4,471,000 compared to $4,517,000 last year. Net loss year-to-date was $8,300,000 ($0.60 per share) compared to a loss of $671,000 ($0.05 per share) for last year.

Lease rental revenue increased marginally while investment income was essentially even quarter over quarter and year-to-date. The decrease in earnings is primarily due to the change in fair value for equity investments and investment properties quarter over quarter and year-to-date.

Condensed summarized information is as follows:

quarter ended year-to-date
in millions of Canadian dollars Oct 31 Oct 31 Oct 31 Oct 31
except per share 2012 2011 2012 2011
Lease rental revenue 0.9 0.9 3.0 3.0
Investment income 0.5 0.5 1.5 1.5
Fair value change:
Veresen 0.1 0.9 (4.4 ) 2.8
OSUM (1.0 ) 0.5 (8.2 ) (8.5 )
Other equity investments 0.1 (0.1 ) (0.9 ) (0.1 )
Investment properties (0.8 ) 1.6 (0.1 ) 1.8
Expenses (0.7 ) (0.9 ) (2.8 ) (2.9 )
Settlement of legal claims - - 1.5 -
Income tax recovery (expense) 0.1 (0.4 ) 2.1 1.7
Net earnings (loss) (0.8 ) 3.0 (8.3 ) (0.7 )
Earnings (loss) per share $ (0.06 ) $ 0.21 $ (0.60 ) $ (0.05 )
Fair value of investments:
Veresen 25.8 28.8
OSUM 17.4 19.4
Other equity investments 1.8 0.1
Investment properties 27.9 26.9
Other assets 0.7 0.7
Debt & payables 5.5 12.7
Deferred tax payable 2.4 2.0
Shareholders' equity 65.7 61.2
quarter ended year-to-date
in millions of Canadian dollars Oct 31 Oct 31 Oct 31 Oct 31
except per share 2012 2011 2012 2011
Cash flow from:
Operations
Cash receipts 1.6 1.9 4.7 4.7
Cash disbursements (0.8) (1.1) (2.9) (3.0)
Finance expense (0.1) (0.1) (0.3)
Settlement of legal claims 1.5 (1.3)
Income taxes 0.7 (0.1)
Investing
Proceeds on sales of investments 0.1
Purchase of investments (2.7)
Expenditures on investment properties (0.5) (0.5)
Financing
Debt advance (reduction) 0.1 (0.6) 0.3 0.4
Purchase of share capital for cancellation (0.1) (0.1)
Dividends (0.3) (0.3) (1.0) (0.3)
GENDIS INC.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
(unaudited - thousands of Canadian dollars) Oct 31 Oct 31 Jan 31
note 2012 2011 2012
ASSETS
Current assets
Cash 10 86 142
Receivables 710 574 1,464
Total current assets 720 660 1,606
Non current assets
Equity investments 2 44,930 48,280 55,813
Investment property 27,900 26,880 27,560
Furnishings and equipment 39 49 52
Total non current assets 72,869 75,209 83,425
Total assets 73,589 75,869 85,031
LIABILITIES
Current liabilities
Credit facilities 3 3,897 11,395 3,600
Payables 472 400 582
Current income tax payable 154 - -
Total current liabilities 4,523 11,795 4,182
Non current liabilities
Post employment benefit obligation 951 855 961
Deferred income tax payable 2,438 1,980 4,723
Total non current liabilities 3,389 2,835 5,684
Total liabilities 7,912 14,630 9,866
SHAREHOLDERS' EQUITY 65,677 61,239 75,165
Total liabilities and shareholders' equity 73,589 75,869 85,031
GENDIS INC.
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian dollars except for share data)
quarter year-to-date
2012 2011 2012 2011
Revenue
Lease rentals 931 912 2,959 2,990
Dividends and other investment income 500 507 1,512 1,527
Total revenue 1,431 1,419 4,471 4,517
Expense
Property 370 396 1,413 1,456
Administration 301 348 1,206 1,140
Finance 30 104 134 289
Total expense 701 848 2,753 2,885
Fair value change
Investment property (851 ) 1,602 (131 ) 1,827
Equity investments (807 ) 1,233 (13,503 ) (5,869 )
Total fair value change (1,658 ) 2,835 (13,634 ) (4,042 )
Settlement of legal claims - - 1,483 -
Earnings (loss) before income tax (928 ) 3,406 (10,433 ) (2,410 )
Income tax (expense) recovery 137 (391 ) 2,133 1,739
Net earnings (loss) from operations and comprehensive income (loss) (791 ) 3,015 (8,30 ) (671 )
Net earnings (loss) from operations per share $ (0.06 ) $ 0.21 $ (0.60 ) $ (0.05 )
GENDIS INC.
CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Share Retained Total
(unaudited - thousands - shares & Capital Earnings
Canadian dollars as applicable) # $ $ $
Balance - January 31, 2011 13,937 14,650 47,608 62,258
Comprehensive loss to July 31, 2011 (3,686 ) (3,686 )
Balance - July 31, 2011 13,937 14,650 43,922 58,572
Comprehensive income for the
quarter ended October 31, 2011 3,015 3,015
Dividend paid (348 ) (348 )
Balance - October 31, 2011 13,937 14,650 46,589 61,239
Comprehensive income for the remainder of the year 17,759 17,759
Dividends paid (3,833 ) (3,833 )
Balance - January 31, 2012 13,937 14,650 60,515 75,165
Comprehensive loss to July 31, 2012 (7,509 ) (7,509 )
Purchase of share capital for cancellation (6 ) (6 ) (13 ) (19 )
Dividends paid (697 ) (697 )
Balance - July 31, 2012 13,931 14,644 52,296 66,940
Comprehensive loss for the
quarter ended October 31, 2012 (791 ) (791 )
Purchase of share capital for cancellation (40 ) (42 ) (82 ) (124 )
Dividend paid (348 ) (348 )
Balance - October 31, 2012 13,891 14,602 51,075 65,677
GENDIS INC.
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED OCTOBER 31
quarter year-to-date
(unaudited - thousands of Canadian dollars) 2012 2011 2012 2011
Changes in cash position
By operations
Cash receipts 1,580 1,889 4,665 4,715
Cash disbursements (760 ) (1,042 ) (2,868 ) (3,067 )
Receipt (payment) on settlement of legal claims - - 1,483 (1,250 )
Income taxes (paid) recovered - - 706 (74 )
Finance expense paid (28 ) (102 ) (135 ) (290 )
Total by operations 792 745 3,851 34
By investing activities
Proceeds from sale of equity investments - - 118 -
Acquisition of equity investments - - (2,739 ) -
Expenditures on investment property (471 ) (8 ) (471 ) (33 )
Proceeds on sale of equipment - 3 - 3
Expenditures on furnishings and equipment - (9 ) - (9 )
Total by investing activities (471 ) (14 ) (3,092 ) (39 )
By financing activities
Net advance (repayment) of credit facilities 103 (587 ) 297 400
Purchase of share capital for cancellation (124) - (143 ) -
Dividends paid 348 (348 ) (1,045 ) (348 )
Total by financing activities (369 ) (935 ) (891 ) 52
Increase (decrease) in cash (48 ) (204 ) (132 ) 47
Cash - beginning of period 58 290 142 39
Cash - end of period 10 86 10 86

Gendis Inc.

Notes to the unaudited Condensed Interim Financial Statements

October 31, 2012

(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 report for the year ended January 31, 2012.
    The principal accounting policies applied in the preparation of these condensed interim financial statements are the same as set out in Note 2 to the complete audited annual financial report for the year ended January 31, 2012. These policies have been consistently applied to all periods presented.

  2. Investments
Oct 31 Jan 31
2012 2012
Veresen 25,760 30,120
OSUM 17,405 25,595
Other equity investments 1,765 98
44,930 55,813
3. Credit facilities
Borrowing Remaining borrowing Carrying value
Balance availability of collateral
Oct 31 Jan 31 Oct 31 Jan 31 Oct 31 Jan 31
2012 2012 2012 2012 2012 2012
Banker's acceptances 3,497 3,000
Bank demand loan 400 600
3,897 3,600 6,100 8,400 23,852 27,890
Broker's margin account - - 1,177 1,115 2,673 2,328
3,897 3,600 7,277 9,515 26,525 30,218
  1. Settlement of legal claims
    The Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company.

  2. Subsequent Event
    On December 10, 2012, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 21, 2012, payable January 4, 2013.

    During the period November 1, 2012 to December 10, 2012, the Company sold 105,000 shares of OSUM for net proceeds of $899,000.

    During the period November 1, 2012 to December 10, 2012, the Company purchased 1-million shares of Input Capital Corp., a private company, for $1-million.

Contact Information