WINNIPEG, MANITOBA -- (Marketwire) -- 04/13/12 -- Gendis Inc. (TSX: GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2012.
Revenue for the 4th quarter was $1.4-million compared to $1.6-million for last year's 4th quarter. Revenue for the year was $5.9-million compared to $5.7-million last year.
Net earnings for the 4th quarter were $17.8-million compared to $1.3-million for last year's 4th quarter. The increase in earnings is due to the settlement with the Canada Revenue Agency on a long outstanding tax matter and the fair value increase in the investment in OSUM based on OSUM's recent equity financing.
Net earnings for the year were $17.1-million compared to $10.7-million last year. The increase in earnings is primarily due to the settlement with the Canada Revenue Agency.
"As we move forward into fiscal 2013, we do so with much confidence in our solid and growing investment portfolio, which is designed to capitalize on the continuing rise in global living standards and the ever-increasing demands for energy and improving nutrition and diet," commented Gendis President & Chief Executive Officer, James E. Cohen. "Already during this first quarter, we have strengthened our investment portfolio and enhanced our position in the Western Canadian energy sector with a new $2 million investment (for 1 million shares), in Calgary-based Oak Point Energy Ltd.
"Oak Point is the only junior oil sands developer with a project in the 'majors-dominated' Northern Athabasca oil sands region of Northeast Alberta," he added.
A private company, Oak Point Energy has secured rights to over 63,000 gross acres (99 sections) of Tier 1 oil sands land in the Athabasca region of northeast Alberta. Their lands include the Lewis Steepbank, Lewis Southwest, Chelsea River, Great Divide and Duncan.
Oak Point Energy has several proprietary designs and patents pending on modular facilities related to more environmentally sensitive and cost efficient means of extracting oil resources.
"We are delighted to have secured a strong investment position in a company that combines access to exceptional oil resources with a unique, proprietary, highly efficient modular, portable Steam Assisted Gravity Drainage (SAGD) technology," Mr. Cohen stated.
Oak Point's SAGD facility design will be deployed throughout its operations, with the first installation at Lewis Steepbank in operation by summer of 2013.
"This new investment complements Gendis' energy, infrastructure and pipeline investments held through our ownership of shares in Veresen Inc. and OSUM Oilsands Corp.," Mr. Cohen added. "Gendis also has a 100% leased commercial real estate portfolio and we have recently made, and will continue to make, investments in the global agri-foods sector through purchases in publicly traded marketable securities as buying opportunities are identified."
"We are confident that our focus on energy and agri-foods, along with the commercial real estate sector will serve us well both now, and well into the future," he concluded.
Condensed summarized information is as follows:
quarter ended year-to-date
in millions of Canadian dollars Jan 31 Jan 31 Jan 31 Jan 31
except per share 2012 2011 2012 2011
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Lease rental revenue 0.9 1.1 3.9 3.7
Investment income 0.5 0.5 2.0 2.0
Fair value change:
Veresen 1.3 0.8 4.1 5.1
OSUM 6.2 0.2 (2.2) 7.0
Other investments - 0.1 (0.2) 0.1
Real estate 0.7 (0.6) 2.5 0.4
Expenses 1.0 0.3 3.9 2.8
Settlement of legal claims - 0.1 - 2.8
Current tax recovery 11.9 - 11.9 0.1
Deferred tax recovery (expense) (2.7) (0.4) (1.0) (1.9)
Net earnings 17.8 1.3 17.1 10.7
Earnings per share $1.28 $0.09 $1.23 $0.77
Fair value of investments:
Veresen 30.1 26.0
OSUM 25.6 27.9
Other investments 0.1 0.3
Real estate 27.6 25.0
Other assets 1.6 0.5
Debt & payables 5.1 13.7
Deferred tax payable 4.7 3.7
Shareholders' equity 75.2 62.3
quarter ended year-to-date
in millions of Canadian dollars Jan 31 Jan 31 Jan 31 Jan 31
2012 2011 2012 2011
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Cash flow from:
Operations
Cash receipts 1.3 1.7 5.8 5.8
Cash disbursements & interest 0.8 0.9 4.0 3.2
Settlement of legal claims - 0.2 1.3 1.7
Income taxes recovered, net 11.2 - 11.1 -
Investing
Proceeds on sales of investments - - - 0.4
Purchase of investments - - - 1.1
Financing
Debt reduction 7.8 0.6 7.4 0.4
Dividends 3.8 - 4.2 -
Gendis Inc. has applied International Financial Reporting Standards ('IFRS') for the quarters ended January 31, 2012 and 2011, and has retrospectively applied those standards to all prior year periods. Applying those standards has resulted in an increase in volatility to reported earnings, primarily from fair value changes to the Company's investments in equity securities and real estate. The Company reported net earnings of $2.6-million ($0.18 per share) in the prior year 4th quarter and has restated net earnings to $1.3- million ($0.09 per share) under IFRS for the prior year 4th quarter. Similarly, The Company reported annual net earnings of $0.5-million ($0.03 per share) for the prior year and has restated net earnings to $10.7-million ($0.77 per share) under IFRS for the prior year.
GENDIS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Jan 31 Jan 31 Feb 01
2012 2011 2010
(thousands of Canadian dollars)
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ASSETS
Cash 142 39 261
Receivables 762 454 305
Income tax recovery 702 - -
Equity investments (note 2) 55,813 54,150 41,366
Investment property 27,560 25,020 24,550
Furnishings and equipment 52 59 43
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Total assets 85,031 79,722 66,525
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LIABILITIES
Credit facilities (note 3) 3,600 10,995 11,398
Payables 582 1,791 790
Provisions - - 89
Current income tax payable - 69 -
Post employment benefit obligation 961 890 872
Deferred income tax payable 4,723 3,719 1,811
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Total liabilities 9,866 17,464 14,960
Shareholders' equity 75,165 62,258 51,565
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Total liabilities and shareholders' equity 85,031 79,722 66,525
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CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(thousands - shares & Canadian Share Retained Total
dollars as applicable) Capital Earnings
# $ $ $
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Balance - January 31, 2010 13,937 14,650 36,915 51,565
Comprehensive income for the period
ended October 31, 2010 9,439 9,439
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Balance - October 31, 2010 13,937 14,650 46,354 61,004
Comprehensive income for the remainder
of the year 1,254 1,254
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Balance - January 31, 2011 13,937 14,650 47,608 62,258
Comprehensive income for the period
ended October 31, 2011 (671) (671)
Dividend (348) (348)
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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 (3,833) (3,833)
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Balance - January 31, 2012 13,937 14,650 60,515 75,165
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GENDIS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME FOR THE
PERIODS ENDED JANUARY 31
(thousands of Canadian dollars
except for share data) quarter year-to-date
2012 2011 2012 2011
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Revenue
Lease rentals 915 1,114 3,905 3,739
Dividends & distributions 506 510 2,033 1,994
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Total revenue 1,421 1,624 5,938 5,733
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Expenses
Property 404 368 1,860 1,443
Administration 605 (86) 1,745 1,045
Provision for settlement of legal
claims - 61 - 2,811
Finance expense 62 96 351 333
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Total expenses 1,071 439 3,956 5,632
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Fair value change
Equity investments 681 1,067 2,508 413
Investment property 7,532 (572) 1,663 12,161
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Total fair value change 8,213 495 4,171 12,574
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Earnings before income tax 8,563 1,680 6,153 12,675
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Income tax expense (recovery)
Current income tax recovery (note 4) (11,939) 74 (11,939) 74
Deferred income tax expense 2,763 352 1,004 1,908
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Income tax expense (recovery) (9,196) 426 (10,935) 1,982
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Net earnings from operations and
comprehensive earnings 17,759 1,254 17,088 10,693
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Net earnings from operations per share $1.28 $0.09 $1.23 $0.77
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GENDIS INC.
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS FOR THE PERIODS
ENDED JANUARY 31
quarter year-to-date
(thousands of Canadian dollars) 2012 2011 2012 2011
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Changes in cash position
By operations
Cash receipts 1,284 1,705 5,830 5,768
Cash disbursements (767) (882) (3,666) (2,891)
Payment on settlement of legal
claims - (150) (1,250) (1,650)
Income taxes recovered 11,235 - 11,235 -
Income taxes paid - - (74) -
Finance expense paid (58) (96) (349) (336)
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Total 11,694 577 11,726 891
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By investing activities
Proceeds from sale of equity
investments - - - 345
Purchase of equity investments - - - (967)
Expenditures on investment
property (7) (1) (32) (57)
Proceeds from sale of furnishings
and equipment - - 3 -
Expenditures on furnishings and
equipment - - (17) (31)
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Total (7) (1) (46) (710)
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By financing activities
Net advance (repayment) of
creditfacilities (7,795) (600) (7,396) (403)
Dividends paid (3,833) - (4,181) -
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Total (11,628) (600) (11,577) (403)
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Increase (decrease) in cash 59 (24) 103 (222)
Cash - beginning of period 83 63 39 261
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Cash - end of period 142 39 142 39
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Gendis Inc.
Notes to the unaudited Condensed Consolidated Interim Financial Statements
January 31, 2012
(All tabular amounts in thousands of Canadian dollars unless otherwise
stated)
1. Significant Accounting Policies and Basis of Presentation
These unaudited condensed interim financial statements are prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board using the accounting standards expected to be effective at January 31, 2012. These condensed interim financial statements do not contain all the disclosures that would be required under generally accepted accounting principles for a comprehensive set of financial statements.
These condensed interim financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The condensed consolidated interim financial statements for the quarter ended January 31, 2012 have been reviewed by the Company's Audit Committee on April 13, 2012. The condensed consolidated interim financial statements for the quarter ended January 31, 2012 have not been audited or reviewed by the Company's independent Auditors.
2. Investments
Jan 31 Jan 31
2012 2011
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Veresen 30,120 25,980
OSUM 25,595 27,869
Other equity investments 98 301
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Total 55,813 54,150
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3. Credit facilities
Remaining
Borrowing borrowing Carrying value
Balance availability of collateral
-------------------------------------- -------------- ---------------
Jan 31 Jan 31 Jan 31 Jan 31 Jan 31 Jan 31
2012 2011 2012 2011 2012 2011
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Banker's acceptances 3,000 10,995
Bank demand loan 600 -
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3,600 10,995 8,400 1,000 27,890 24,056
Broker's margin account - - 1,115 1,113 2,328 2,225
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Total 3,600 10,995 9,515 2,113 30,218 26,281
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4. Recovery of Income Tax
During the 4th quarter ended January 31, 2012, the Company reached a settlement with the Canada Revenue Agency of its tax case involving the sale of the Company's shares in Sony of Canada Ltd in 1995. The Company received $11.2-million. The settlement represents a refund of 25% of the tax and arrears interest paid in 2001 on re assessment, plus interest from 2001 to the refund date.
5. Operating segments
The segment information provided to the CEO for the reportable segments is as follows:
Quarter
ended Inter-
Jan 31 Realty Corporate segment Total
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External revenue 2012 915 506 - 1,421
2011 1,114 510 - 1,624
Fair values changes 2012 681 7,532 - 8,213
2011 (572) 1,067 - 495
Intersegment revenue 2012 15 139 (154) -
2011 15 150 (165) -
Operating expenses 2012 434 619 (44) 1,009
2011 398 (10) (45) 343
Finance expense 2012 110 62 (110) 62
2011 120 96 (120) 96
Income tax expense 2012 134 (9,330) - (9,196)
2011 (68) 494 - 426
Net earnings from operations
& 2012 933 16,826 - 17,759
Comprehensive income 2011 107 1,147 - 1,254
Year-to-date ended Inter-
Jan 31 Realty Corporate segment Total
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External revenue 2012 3,905 2,033 - 5,938
2011 3,739 1,994 - 5,733
Fair values changes 2012 2,508 1,663 - 4,171
2011 413 12,161 - 12,574
Intersegment revenue 2012 60 570 (630) -
2011 61 570 (631) -
Operating expenses 2012 1,980 1,805 (180) 3,605
2011 1,563 1,106 (181) 2,488
Finance expense 2012 450 351 (450) 351
2011 450 333 (450) 333
Provision for lawsuit
settlement 2012 - - - -
2011 - 2,811 - 2,811
Income tax (expense)
recovery 2012 (477) 11,412 - 10,935
2011 (240) (1,742) - (1,982)
Net earnings from operations
& 2012 3,566 13,522 - 17,088
Comprehensive income 2011 1,960 8,733 - 10,693
Total assets 2012 28,149 69,234 (12,352) 85,031
2011 25,261 69,141 (14,680) 79,722
Total liabilities 2012 15,813 6,405 (12,352) 9,866
2011 16,628 15,516 (14,680) 17,464
Contacts:
Gendis Inc.
James E. Cohen
President & Chief Executive Officer
(204)474-5200
(204)474-5201 (FAX)
finance@gendis.ca
www.gendis.ca
