SOURCE: Gendis Inc.

Gendis Inc.

December 04, 2015 18:07 ET

Gendis Inc. Announces Third Quarter Results

WINNIPEG, MB--(Marketwired - December 04, 2015) - Gendis Inc. (TSX: GDS) today announced its financial results for the 3rd quarter ended October 31, 2015.

Revenue for the 3rd quarter was $1,269,000 compared to $1,483,000 for last year. Revenue less expense for the 3rd quarter was $544,000 compared to $712,000 for last year. Net loss for the 3rd quarter was $6,546,000 ($0.50 per share) compared to a loss of $1,327,000 ($0.09 per share) for last year.

Revenue year-to-date was $4,144,000 compared to $4,321,000 year-to-date last year. Revenue less expense year-to-date was $1,089,000 compared to $2,015,000 year-to-date last year. Net loss year-to-date was $10,391,000 ($0.80 per share) compared to net earnings of $5,942,000 ($0.45 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 except per share Oct 31 2015   Oct 31 2014   Oct 31 2015   Oct 31 2014  
Revenue                    
 Lease rental revenue  0.8    1.0    2.6    2.8  
 Dividends  0.5    0.5    1.5    1.5  
Total revenue  1.3    1.5    4.1    4.3  
                
Expense                    
 Property  0.3    0.4    1.9    1.2  
 Administration & finance  0.4    0.4    1.2    1.1  
Total expense  0.7    0.8    3.1    2.3  
                
Total revenue less total expense  0.6    0.7    1.0    2.0  
                
Fair value change:                    
 Veresen  (6.8 )  (1.7 )  (9.4 )  5.6  
 Osum  -    (0.4 )  (0.6 )  (1.2 )
 Other security investments  -    (0.3 )  (0.4 )  (0.6 )
 Investment properties  (0.3 )  0.2    (1.7 )  1.2  
Total fair value change  (7.1 )  (2.2 )  (12.1 )  5.0  
                
Income tax (expense) recovery  -    0.2    0.7    (1.1 )
                
Net earnings (loss)  (6.5 )  (1.3 )  (10.4 )  5.9  
                
Earnings (loss) per share $(0.50 ) $(0.09 ) $(0.80 ) $0.45  
                     
        

in millions of Canadian dollars
   Oct 31
2015
 Jan 31
2015
 Oct 31
2014
 
Fair value of investments:             
 Veresen    22.7  32.1  35.3  
 Osum    5.6  6.2  10.3  
 Other security investments    3.8  4.1  4.1  
 Investment properties    29.2  30.5  32.0  
Other assets    0.9  1.0  1.1  
Debt & payables    7.0  5.7  5.4  
Deferred tax payable    -  0.8  2.1  
Shareholders' equity    55.2  67.3  75.3  
         
  Quarter ended Year to date ended  
in millions of Canadian dollars Oct 31
2015
 Oct 31
2014
 Oct 31
2015
 Oct 31
2014
 
Cash flow from:             
Operations             
 Cash receipts 1.7  1.7  4.6  5.2  
 Cash disbursements & finance expense (0.9 )(0.8 )(3.4 )(2.5 )
 Income taxes recovered (paid) -  -  (0.2 )(0.2 )
Investing             
 Proceeds on sales of security investments -  -  0.1  -  
 Purchase of security investments -  (0.2 )(0.3 )(0.9 )
 Expenditures on investment properties and equipment
 (0.1
)
 (0.3
)
 (0.4
)
 (0.5
)
Financing             
 Increase (decrease) in debt (0.2 )0.5  1.4  1.6  
 Purchase of share capital for cancellation (0.2 )(0.5 )(0.8 )(1.5 )
 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) 2015  2015  2014
ASSETS        
Current assets        
 Cash 39  36  156
 Receivables 692  818  845
Total current assets 731  854  1,001
Non-current assets        
 Investment in securities (note 2) 32,130  42,358  49,661
 Investment properties 29,247  30,577  31,975
 Furnishings and equipment 182  159  164
Total non-current assets 61,559  73,094  81,800
Total assets 62,290  73,948  82,801
         
LIABILITIES        
Current liabilities        
 Credit facilities (note 3) 4,998  3,597  3,197
 Payables 1,050  1,099  1,252
Total current liabilities    4,696  4,449
Non-current liabilities        
 Post employment benefit obligation 1,012  1,012  937
 Deferred income tax payable    860  2,136
Total non-current liabilities 1,012  1,872  3,073
Total liabilities 7,060  6,568  7,522
SHAREHOLDERS' EQUITY 55,230  67,380  75,279
Total liabilities and shareholders' equity 62,290  73,948  82,801
      
  
GENDIS INC.  
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME  
FOR THE PERIODS ENDED OCTOBER 31  
(unaudited - thousands of Canadian dollars except for share data) Quarter ended   Year-to-date ended  
2015   2014   2015   2014  
Revenue                    
 Lease rentals  744    962    2,579    2,798  
 Dividends  525    521    1,565    1,523  
Total revenue  1,269    1,483    4,144    4,321  
Expense                    
 Property  362    399    1,855    1,175  
 Administration  332    342    1,103    1,061  
 Finance  31    30    97    70  
Total expense  725    771    3,055    2,306  
Total revenue less total expense  544    712    1,089    2,015  
Fair value change                    
 Investment properties  (293 )  157    (1,731 )  1,203  
 Investment in securities  (6,793 )  (2,381 )  (10,434 )  3,796  
Total fair value change  (7,086 )  (2,224 )  (12,165 )  4,999  
Earnings (loss) before income tax  (6,542 )  (1,512 )  (11,076 )  7,014  
Income tax (expense) recovery  (4 )  185    685    (1,072 )
Net earnings (loss) from operations and comprehensive income (loss)  
(6,546
)  
(1,327
)  
(10,391
)  
5,942
 
Net earnings (loss) from operations per share $(0.51 ) $(0.09 ) $(0.80 ) $0.45  
  
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, 20154 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  
For the remainder of the year:                
 Comprehensive loss         (7,423 ) (7,423 )
 Purchase of share capital for cancellation (39 ) (42 ) (108 ) (150 )
  Dividend         (326 ) (326 )
Balance - January 31, 2015 13,046   13,713   53,667   67,380  
Comprehensive income         (10,391 ) (10,391 )
Purchase of share capital for cancellation (220 ) (230 ) (558 ) 788  
Dividends         (971 ) (971 )
Balance - October 31, 2015 12,826   13,483   41,747   55,230  
     
     
GENDIS INC.
 
INTERIM CONDENSED STATEMENT OF CASH FLOWS
 
FOR THE PERIODS ENDED OCTOBER 31
 
(unaudited - thousands of Canadian dollars) Quarter ended  Year to date ended  
  2015  2014  2015  2014  
Changes in cash position             
By operations             
 Cash receipts 1673  1,749  4,586  5,233  
 Cash disbursements (904 )(781 )(3,294 )(2,499 )
 Income taxes paid -  -  (224 )(211 )
 Finance expense paid (33 )(30 )(98 )(68 )
Total by operations 736  938  970  2,455  
By investing activities             
 Proceeds from sale of security investments -  -  125  -  
 Acquisition of security investments    (200 )(300 )(927 )
 Expenditures on investment properties (103 )(253 )(401 )(387 )
 Proceeds from sale of equipment -  -  85  -  
 Expenditures on furnishings and equipment (3 )(14 )(118 )(125 )
Total by investing activities (106 )(467 )(609 )(1,439 )
By financing activities             
 Net advance (repayment) of credit facilities (198 )500  1,401  1,598  
 Purchase of share capital for cancellation (153 )(528 )(788 )(1,505 )
 Dividends paid (322 )(330 )(971 )(1,000 )
Total by financing activities (673 )(358 )(358 )(907 )
Increase (decrease) in cash (43 )113  3  109  
Cash - beginning of period 82  43  36  47  
Cash - end of period 39  156  39  156  
         

Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
January 31, 2015
(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, 2015, 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, 2015. These policies have been consistently applied to all periods presented.

2. Investment in securities

 
  Oct 31 Jan 31
  2015 2015
Veresen 22,740 32,120
Osum 5,553 6,187
Other security investments 3,837 4,051
  32,130 42,358
     

3. Credit facilities

      
  Borrowing Balance Remaining borrowing availability  Carrying value of collateral
  Oct 31  Jan 31  Oct 31  Jan 31  Oct 31  Jan 31
  2015  2015  2015  2015  2015  2015
Bank credit facility 4,988  3,597  5,000  6,400  21,075  29,742
Broker's margin account -  -  842  1,189  1,701  2,457
  4,988  3,597  5,842  7,589  22,776  32,199
                  

4. Subsequent Event
On December 4, 2015, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 18, 2015, payable January 8, 2016.
On December 4, 2015, the fair value of the Company's investment in securities declined by $3.4 million, primarily from Veresen by $2.5 million and Input Capital by $0.9 million.

5. Operating segments

   
  Quarter Ended Oct 31

Realty
 

Corporate
 
Inter- segment
 

Total
 
Revenue 2015 761  733  (225 )1,269  
  2014 979  747  (243 )1,483  
          
Property & administration 2015 425  349  (80 )694  
expense 2014 453  359  (71 )741  
          
Finance expense 2015 145  31  (145 )31  
  2014 172  30  (172 )30  
          
Total revenue less total 2015 191  353  -  544  
expense 2014 354  358  -  712  
          
Fair value change 2015 (293 )(6,793 )-  (7,086 )
  2014 157  (2,381 )-  (2,224 )
          
Income tax recovery (expense) 2015 (11 )7  -  (4 )
  2014 25  160  -  185  
          
Comprehensive income (loss) 2015 (113 )(6,433 )-  (6,546 )
  2014 536  (1,863 )-  (1,327 )
                
  YTD Ended Oct 31

Realty
 

Corporate
 
Inter- Segment
 

Total
 
Revenue 2015 2,631  2,190  (677 )4,144  
  2014 2,850  2,205  (734 )4,321  
          
Property & administration 2015 2,044  1,155  (241 )2,958  
expense 2014 1,336  1,114  (214 )2,236  
          
Finance expense 2015 436  97  (436 )97  
  2014 520  70  (520 )70  
          
Total revenue less total 2015 151  938     1,089  
expense 2014 994  1,021     2,015  
          
Fair value change 2015 (1,731 )(10,434 )   (12,165 )
  2014 1,203  3,796  -  4,999  
          
Income tax recovery (expense) 2015 193  492     685  
  2014 (430 )(642 )-  (1,072 )
          
Comprehensive income (loss) 2015 (1,387 )(9,004 )   (10,391 )
  2014 1,767  4,175  -  5,942  
          
Total assets 2015 29,802  54,755  (22,267 )62,290  
  2014 32,743  75,514  (22,456 )82,801  
          
Total liabilities 2015 23,050  6,277  (22,267 )7,060  
  2014 24,678  5,300  (22,456 )7,522  
          

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