WINNIPEG, MANITOBA--(Marketwired - Dec 9, 2013) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3rd quarter ended October 31, 2013.
Revenue for the 3rd quarter was $1,500,000 compared to $1,431,000 for last year's 3rd quarter. Revenue less expense for the 3rd quarter was $756,000 compared to $730,000 for last year's 3rd quarter. Net earnings for the 3rd quarter were $1,347,000 ($0.10 per share) compared to a loss of $791,000 ($0.06 per share) for last year's 3rd quarter.
Revenue year-to-date was $4,560,000 compared to $4,471,000 year-to-date last year. Revenue less expense year-to-date was $2,038,000 compared to $1,718,000 year-to-date last year. Net loss year-to-date was $548,000 ($0.04 per share) compared to a loss of $8,300,000 ($0.60 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 equity investments and investment properties with the attendant effect on deferred income taxes. Also, the 2nd quarter last year included the settlement with our insurer on legal claims in a prior year.
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 | 2013 | 2012 | 2013 | 2012 | |||||
Revenue | |||||||||
Lease rental revenue | 1.0 | 0.9 | 3.1 | 3.0 | |||||
Dividends | 0.5 | 0.5 | 1.5 | 1.5 | |||||
Total revenue | 1.5 | 1.4 | 4.6 | 4.5 | |||||
Expense | |||||||||
Property | 0.4 | 0.4 | 1.5 | 1.4 | |||||
Administration & finance | 0.3 | 0.3 | 1.1 | 1.4 | |||||
Total expense | 0.7 | 0.7 | 2.6 | 2.8 | |||||
Revenue less expense | 0.8 | 0.7 | 2.0 | 1.7 | |||||
Fair value change: | |||||||||
Veresen | 1.7 | 0.1 | 0.1 | (4.4 | ) | ||||
Osum | (1.6 | ) | (1.0 | ) | (2.0 | ) | (8.2 | ) | |
Other equity investments | - | 0.1 | 0.3 | (0.9 | ) | ||||
Investment properties | 0.7 | (0.8 | ) | (1.0 | ) | (0.1 | ) | ||
Total fair value change | 0.8 | (1.6 | ) | (2.6 | ) | (13.6 | ) | ||
Settlement of legal claims | - | - | - | 1.5 | |||||
Income tax (expense)recovery | (0.3 | ) | 0.1 | 0.1 | 2.1 | ||||
Net earnings (loss) | 1.3 | (0.8 | ) | (0.5 | ) | (8.3 | ) | ||
Earnings (loss) per share | $0.10 | $(0.06 | ) | $(0.04 | ) | $(0.60 | ) | ||
Oct 31 | Jan 31 | Oct 31 | ||||
in millions of Canadian dollars | 2013 | 2013 | 2012 | |||
Fair value of investments: | ||||||
Veresen | 25.7 | 25.7 | 25.8 | |||
Osum | 11.5 | 14.5 | 17.4 | |||
Other equity investments | 3.4 | 3.0 | 1.8 | |||
Investment properties | 29.0 | 29.8 | 27.9 | |||
Other assets | 0.8 | 2.0 | 0.7 | |||
Debt & payables | 3.2 | 5.2 | 5.5 | |||
Deferred tax payable | 0.4 | 0.6 | 2.4 | |||
Shareholders' equity | 66.8 | 69.3 | 65.7 |
Quarter ended | Year to date ended | ||||||||
Oct 31 | Oct 31 | Oct 31 | Oct 31 | ||||||
in millions of Canadian dollars | 2013 | 2012 | 2013 | 2012 | |||||
Cash flow from: | |||||||||
Operations | |||||||||
Cash receipts | 1.6 | 1.6 | 4.8 | 4.7 | |||||
Cash disbursements & finance expense | (0.8 | ) | (0.8 | ) | (2.8 | ) | (3.0 | ) | |
Settlement of legal claims | - | - | - | 1.5 | |||||
Income taxes recovered (paid) | - | - | (0.2 | ) | 0.7 | ||||
Investing | |||||||||
Proceeds on sales of investments | - | - | 2.1 | 0.1 | |||||
Purchase of investments | - | - | - | (2.7 | ) | ||||
Expenditures on investment properties | (0.2 | ) | (0.5 | ) | (0.2 | ) | (0.5 | ) | |
Financing | |||||||||
Increase (decrease) in debt | 0.1 | 0.1 | (1.9 | ) | 0.3 | ||||
Purchase of share capital for cancellation | (0.4 | ) | (0.1 | ) | (0.8 | ) | (0.2 | ) | |
Dividends | (0.3 | ) | (0.3 | ) | (1.0 | ) | (1.0 | ) | |
GENDIS INC. | ||||||
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION | ||||||
(unaudited - thousands of Canadian dollars) |
Oct 31 2013 |
Jan 31 2013 |
Oct 31 2012 | |||
ASSETS | ||||||
Current assets | ||||||
Cash | 99 | 77 | 10 | |||
Receivables | 627 | 1,929 | 710 | |||
Total current assets | 726 | 2,006 | 720 | |||
Non-current assets | ||||||
Equity investments (note 2) | 40,610 | 43,167 | 44,930 | |||
Investment property | 28,965 | 29,775 | 27,900 | |||
Furnishings and equipment | 59 | 48 | 39 | |||
Total non-current assets | 69,634 | 72,990 | 72,869 | |||
Total assets | 70,360 | 74,996 | 73,589 | |||
LIABILITIES | ||||||
Current liabilities | ||||||
Credit facilities (note 3) | 1,599 | 3,500 | 3,897 | |||
Payables | 566 | 763 | 626 | |||
Total current liabilities | 2,165 | 4,263 | 4,523 | |||
Non-current liabilities | ||||||
Post employment benefit obligation | 972 | 972 | 951 | |||
Deferred income tax payable | 385 | 578 | 2,438 | |||
Total non-current liabilities | 1,357 | 1,550 | 3,389 | |||
Total liabilities | 3,522 | 5,813 | 7,912 | |||
SHAREHOLDERS' EQUITY | 66,838 | 69,183 | 65,677 | |||
Total liabilities and shareholders' equity | 70,360 | 74,996 | 73,589 |
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) | 2013 | 2012 | 2013 | 2012 | |||||
Revenue | |||||||||
Lease rentals | 987 | 931 | 3,046 | 2,959 | |||||
Dividends | 513 | 500 | 1,514 | 1,512 | |||||
Total revenue | 1,500 | 1,431 | 4,560 | 4,471 | |||||
Expense | |||||||||
Property | 414 | 370 | 1,451 | 1,413 | |||||
Administration | 313 | 301 | 1,018 | 1,206 | |||||
Finance | 17 | 30 | 53 | 134 | |||||
Total expense | 744 | 701 | 2,522 | 2,753 | |||||
Revenue less expense | 756 | 730 | 2,038 | 1,718 | |||||
Fair value change | |||||||||
Investment properties | 743 | (851 | ) | (1,037 | ) | (131 | ) | ||
Equity investments | 103 | (807 | ) | (1,585 | ) | (13,503 | ) | ||
Total fair value change | 846 | (1,658 | ) | (2,622 | ) | (13,634 | ) | ||
Settlement of legal claims | - | - | - | 1,483 | |||||
Earnings (loss) before income tax | 1,602 | (928 | ) | (584 | ) | (10,433 | ) | ||
Income tax (expense) recovery | (255 | ) | 137 | 36 | 2,133 | ||||
Net earnings (loss) from operations and comprehensive income (loss) | 1,347 | (791 | ) | (548 | ) | (8,300 | ) | ||
Net earnings (loss) from operations per share | $0.10 | $(0.06 | ) | $(0.04 | ) | $(0.60 | ) |
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, 2012 | 13,937 | 14,650 | 60,515 | 75,165 | ||||
Comprehensive loss | (8,300 | ) | (8,300 | ) | ||||
Purchase of share capital for cancellation | (46 | ) | (48 | ) | (95 | ) | (143 | ) |
Dividends paid | (1,045 | ) | (1,045 | ) | ||||
Balance - October 31, 2013 | 13,891 | 14,602 | 51,075 | 65,677 | ||||
For the remainder of the year: | ||||||||
Comprehensive income | 4,082 | 4,082 | ||||||
Purchase of share capital for cancellation | (75 | ) | (79 | ) | (151 | ) | (230 | ) |
Dividend paid | (346 | ) | (346 | ) | ||||
Balance - January 31, 2013 | 13,816 | 14,523 | 54,660 | 69,183 | ||||
Comprehensive loss | (548 | ) | (548 | ) | ||||
Purchase of share capital for cancellation | (244 | ) | (257 | ) | (510 | ) | (767 | ) |
Dividends paid | (1,030 | ) | (1,030 | ) | ||||
Balance - October 31, 2013 | 13,572 | 14,266 | 52,572 | 66,838 |
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) | 2013 | 2012 | 2013 | 2012 | |||||
Changes in cash position | |||||||||
By operations | |||||||||
Cash receipts | 1,639 | 1,580 | 4,834 | 4,665 | |||||
Cash disbursements | (788 | ) | (760 | ) | (2,750 | ) | (2,868 | ) | |
Settlement of legal claims | - | - | - | 1,483 | |||||
Income taxes (paid) recovered | - | - | (203 | ) | 706 | ||||
Finance expense paid | (17 | ) | (28 | ) | (54 | ) | (135 | ) | |
Total by operations | 834 | 792 | 1,827 | 3,851 | |||||
By investing activities | |||||||||
Proceeds from sale of equity investments | - | - | 2,144 | 118 | |||||
Acquisition of equity investments | - | - | - | (2,739 | ) | ||||
Expenditures on investment property | (147 | ) | (471 | ) | (227 | ) | (471 | ) | |
Expenditures on furnishings and equipment | (10 | ) | - | (25 | ) | - | |||
Total by investing activities | (157 | ) | (471 | ) | 1,892 | (3,092 | ) | ||
By financing activities | |||||||||
Net advance (repayment) of credit facilities | 100 | 103 | (1,900 | ) | 297 | ||||
Purchase of share capital for cancellation | (444 | ) | (124 | ) | (767 | ) | (143 | ) | |
Dividends paid | (342 | ) | (348 | ) | (1,030 | ) | (1,045 | ) | |
Total by financing activities | (686 | ) | (369 | ) | (3,697 | ) | (891 | ) | |
Increase (decrease) in cash | (9 | ) | (48 | ) | 22 | (132 | ) | ||
Cash - beginning of period | 108 | 58 | 77 | 142 | |||||
Cash - end of period | 99 | 10 | 99 | 10 |
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
January 31, 2013
(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, 2013, 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, 2013. These policies have been consistently applied to all periods presented.
2. Investments | |||
Oct 31 | Jan 31 | ||
2013 | 2013 | ||
Veresen | 25,740 | 25,660 | |
Osum | 11,502 | 14,487 | |
Other equity investments | 3,368 | 3,020 | |
40,610 | 43,167 | ||
3. Credit facilities |
Borrowing Balance | Remaining borrowing availability | Carrying value of collateral | |||||||||
Oct 31 | Jan 31 | Oct 31 | Jan 31 | Oct 31 | Jan 31 | ||||||
2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||
Banker's acceptances | 999 | 3,000 | |||||||||
Bank demand loan | 600 | 500 | |||||||||
1,599 | 3,500 | 8,400 | 6,500 | 23,890 | 23,760 | ||||||
Broker's margin account | - | - | 953 | 1,205 | 2,494 | 2,920 | |||||
1,599 | 3,500 | 9,353 | 7,705 | 26,384 | 26,680 | ||||||
4. Subsequent Event |
On December 9, 2013, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 20, 2013, payable January 3, 2014. |
5. Operating segments | |||||||||
Quarter Ended Oct 31 | Realty | Corporate | Inter- segment | Total | |||||
Revenue | 2013 | 1,004 | 723 | (227 | ) | 1,500 | |||
2012 | 948 | 717 | (234 | ) | 1,431 | ||||
Property & administration | 2013 | 468 | 330 | (71 | ) | 727 | |||
expense | 2012 | 424 | 318 | (71 | ) | 671 | |||
Finance expense | 2013 | 156 | 17 | (156 | ) | 17 | |||
2012 | 163 | 30 | (163 | ) | 30 | ||||
Fair value change | 2013 | 743 | 103 | - | 846 | ||||
2012 | (851 | ) | (807 | ) | - | (1,658 | ) | ||
Income tax recovery (expense) | 2013 | (303 | ) | 48 | - | (255 | ) | ||
2012 | 132 | 5 | - | 137 | |||||
Net earnings from operations | 2013 | 820 | 527 | - | 1,347 | ||||
& Comprehensive income | 2012 | (358 | ) | (433 | ) | - | (791 | ) | |
YTD Ended Oct 31 | Realty | Corporate | Inter- segment | Total | |||||
Revenue | 2013 | 3,098 | 2,145 | (683 | ) | 4,560 | |||
2012 | 3,011 | 2,161 | (701 | ) | 4,471 | ||||
Property & administration | 2013 | 1,613 | 1,070 | (214 | ) | 2,469 | |||
Expense | 2012 | 1,575 | 1,258 | (214 | ) | 2,619 | |||
Finance expense | 2013 | 469 | 53 | (469 | ) | 53 | |||
2012 | 487 | 134 | (487 | ) | 134 | ||||
Fair value change | 2013 | (1,037 | ) | (1,585 | ) | - | (2,622 | ) | |
2012 | (131 | ) | (13,503 | ) | - | (13,634 | ) | ||
Settlement of legal claims | 2013 | - | - | - | - | ||||
2012 | - | 1,483 | - | 1,483 | |||||
Income tax recovery (expense) | 2013 | 6 | 30 | - | 36 | ||||
2012 | (221 | ) | 2,354 | - | 2,133 | ||||
Net earnings from operations | 2013 | (15 | ) | (533 | ) | - | (548 | ) | |
& Comprehensive income | 2012 | 597 | (8,897 | ) | - | (8,300 | ) | ||
Total assets | 2013 | 29,443 | 62,060 | (21,143 | ) | 70,360 | |||
2012 | 28,419 | 63,921 | (18,751 | ) | 73,589 | ||||
Total liabilities | 2013 | 21,368 | 3,297 | (21,143 | ) | 3,522 | |||
2012 | 22,286 | 4,377 | (18,751 | ) | 7,912 |