WINNIPEG, MANITOBA -- (Marketwire) -- 06/08/12 -- Gendis Inc. (TSX: GDS) today announced its financial results for the 1st quarter ended April 30, 2012.
Revenue for the 1st quarter was $1,513,000 compared to $1,638,000 for last year's 1st quarter. Net earnings for the 1st quarter were $227,000 ($0.02 per share) compared to a loss of $261,000 ($0.02 per share) for last year's 1st quarter. The increase in earnings is primarily due to the reduction in fair value declines for investment properties quarter over quarter. Lease rental revenue and recoverable property expenses have declined marginally quarter over quarter. Investment income is even with the prior year quarter.
Condensed summarized information is as follows:
Apr 30 Apr 30
in millions of Canadian dollars except per share 2012 2011
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Lease rental revenue 1.0 1.1
Investment income 0.5 0.5
Fair value change:
Veresen - 1.2
OSUM - (1.0)
Other investments - (0.1)
Real estate (0.5) (0.9)
Expenses 0.9 1.1
Income tax recoverable 0.1 -
Net earnings (loss) 0.2 (0.3)
Earnings (loss) per share $0.02 $(0.02)
Fair value of investments:
Veresen 30.2 27.2
OSUM 25.6 26.8
Other investments 2.7 0.3
Real estate 27.0 24.1
Other assets 1.4 0.5
Debt & payables 7.3 13.2
Deferred tax payable 4.6 3.7
Shareholders equity 75.0 62.0
Apr 30 Apr 30
in millions of Canadian dollars except per share 2013 2011
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Cash flow from:
Operations
Cash receipts 1.8 1.8
Cash disbursements (0.8) 1.2
Investing
Proceeds on sales of investments 0.2 -
Purchase of investments (2.8) -
Financing
Increase (decrease) in debt 1.9 (0.5)
Dividends (0.3) -
GENDIS INC.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
Apr 30 Apr 30 Jan 31
(unaudited - thousands of Canadian dollars) note 2012 2011 2012
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ASSETS
Current assets
Cash 51 64 142
Income tax recoverable 706 - 703
Receivables 560 364 761
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Total current assets 1,317 428 1,606
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Non current assets
Equity investments 2 58,472 54,299 55,813
Investment property 3 27,050 24,110 27,560
Furnishings and equipment 48 54 52
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Total non current assets 85,570 78,463 83,425
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Total assets 86,887 78,891 85,031
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LIABILITIES
Current liabilities
Credit facilities 4 5,500 10,495 3,600
Payables 730 1,799 582
Income tax payable 53 - -
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Total current liabilities 6,283 12,294 4,182
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Non current liabilities
Post employment benefit obligation 956 885 961
Deferred income tax payable 5 4,604 3,715 4,723
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Total non current liabilities 5,560 4,600 5,684
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Total liabilities 11,843 16,894 9,866
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SHAREHOLDERS' EQUITY 75,044 61,997 75,165
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Total liabilities and shareholders' equity 86,887 78,891 85,031
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GENDIS INC.
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTERS ENDED APRIL 30
(unaudited - thousands of Canadian dollars except for
share data) 2012 2011
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Revenue
Lease rentals 1,002 1,128
Dividends 511 510
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Total revenue 1,513 1,638
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Expense
Property 471 621
Administration 363 404
Finance 50 92
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Total expense 884 1,117
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Fair value change
Investment property (510) (935)
Equity investments 39 149
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Total fair value change (471) (786)
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Earnings (loss) before income tax 158 (265)
Income tax (expense) recovery 69 (4)
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Net earnings (loss) from operations and comprehensive
income (loss) 227 (261)
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Net earnings (loss) from operations per share $0.02 $(0.02)
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GENDIS INC.
CONDENSED INTERIM STATEMENT OF SHAREHOLDERS' EQUITY
Share Retained Total
Capital Earnings
(unaudited - thousands - shares &
Canadian dollars as applicable) # $ $ $
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Balance - January 31, 2011 13,937 14,650 47,608 62,258
Net loss from operations and
comprehensive loss for the period (261) (261)
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Balance - April 30, 2011 13,937 14,650 47,347 61,997
Net earnings from operations and
comprehensive income for the
remainder of the year 17,349 17,349
Dividends paid (4,181) (4,181)
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Balance - January 31, 2012 13,937 14,650 60,515 75,165
Net earnings from operations and
comprehensive income for the period 227 227
Dividend paid (348) (348)
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Balance - April 30, 2012 13,937 14,650 60,394 75,044
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GENDIS INC.
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE QUARTERS ENDED APRIL 30
(unaudited - thousands of Canadian dollars) 2012 2011
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Changes in cash position
By operations
Cash receipts 1,771 1,790
Cash disbursements (737) (1,070)
Income taxes paid - (74)
Finance expense paid (52) (96)
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Total by operations 982 550
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By investing activities
Proceeds from sale of equity investments 118 -
Acquisition of equity investments (2,739) -
Expenditures on investment property - (25)
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Total by investing activities (2,621) (25)
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By financing activities
Net advance (repayment) of credit facilities 1,896 (500)
Dividend paid (348) -
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Total by financing activities 1,548 (500)
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Increase (decrease) in cash (91) 25
Cash - beginning of year 142 39
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Cash - end of period 51 64
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GENDIS INC.
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE QUARTERS ENDED APRIL 30, 2012 AND 2011
(unaudited - all tabular amounts in thousands of Canadian dollars unless
otherwise stated)
1.0 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.
2.0 Equity investments
Apr 30 Apr 30 Jan 31 (in thousands) 2012 2011 2012 ---------------------------------------------------------------------------- Level 1 Veresen 30,160 27,160 30,120 Other investments 717 315 98 Level 3 OSUM 25,595 26,824 25,595 Oak Point Energy 2,000 - - ---------------------------------------------------------------------------- Total equity investments 58,472 54,299 55,813 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
3.0 Investment property
The Company's investment properties were valued at January 31, 2012 by independent professionally qualified appraisers. The Company's investment properties were valued at April 30, 2012 and April 2011 by the Company's in- house valuation model.
4.0 Credit facilities
Remaining
Borrowing borrowing Carrying value
Balance availability of collateral
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Apr 30 Jan 31 Apr 30 Jan 31 Apr 30 Jan 31
2012 2012 2012 2012 2012 2012
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Banker's acceptances 5,500 3,000
Bank demand loan - 600
Total for bank
borrowing 5,500 3,600 6,500 8,400 27,926 27,890
Broker's margin
account - - 1,180 1,115 2,951 2,328
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Total credit
facility 5,500 3,600 7,680 9,515 30,877 30,218
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The credit facility provides for a borrowing capacity of 70% of the market value of marketable securities, namely Veresen, lodged as collateral. The credit facility expires on July 31, 2012.
5.0 Deferred income tax payable
Apr 30 Apr 30 Jan 31
2012 2011 2012
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Non capital losses (3,472) (4,160) (3,451)
Net capital losses (1,242) (664) (1,237)
Investment property 2,857 2,406 2,978
Equity investments 6,729 6,707 6,716
Other items (268) (574) (283)
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Total deferred income tax payable
(recoverable) 4,604 3,715 4,723
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6.0 Operating segments
The segment information provided to the CEO for the reportable segments is as follows:
Quarter
ended Realty Corporate Intersegment
Apr 30 Total Elimination
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External revenue 2012 1,002 511 - 1,513
2011 1,128 510 - 1,638
Intersegment revenue 2012 18 215 (233) -
2011 15 141 (156) -
Property & administration expenses 2012 525 380 (71) 834
2011 650 420 (45) 1,025
Finance expense 2012 162 50 (162) 50
2011 111 92 (111) 92
Fair values changes 2012 (510) 39 - (471)
2011 (935) 149 - (786)
Income tax (expense) recovery 2012 48 21 - 69
2011 150 (146) - 4
Net earnings (loss) from operations 2012 (129) 356 - 227
& Comprehensive income (loss) 2011 (403) 142 - (261)
Total assets 2012 27,447 77,880 (18,440) 86,887
2011 24,337 67,762 (13,208) 78,891
Total liabilities 2012 22,040 8,243 (18,440) 11,843
2011 15,973 15,079 (14,158) 16,894
7.0 Subsequent Events
Subsequent to the quarter ended April 30, 2012, 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. The Company expects to receive approximately $1.5-million during the quarter ending July 31, 2012.
On June 8, 2012, the Company declared a regular dividend of $0.025 per share to shareholders of record June 22, 2012, payable July 6, 2012.
Contacts:
Gendis Inc.
James E. Cohen
President & Chief Executive Officer
(204) 474-5200
(204) 474-5201 (FAX)
finance@gendis.ca
www.gendis.ca
