WINNIPEG, MB–(Marketwired – June 03, 2016) – Gendis Inc. (TSX: GDS) today announced its financial results for the 1st
quarter ended April 30, 2016.
Net earnings for the 1st
quarter were $1,136,000 ($0.09 per share) compared to net earnings of $1,938,000 ($0.15 per share) for the prior year 1st quarter. Revenue for the 1st quarter was $1,227,000 compared to $1,496,000 for the prior year 1st quarter. Revenue less expense for the 1st
quarter was $255,000 compared to $392,000 for the prior year 1st
quarter. The decline is primarily due to vacancy in the Company’s Sony place Facility.
The volatility in net earnings quarter over quarter is primarily due to the change in fair value of security investments and investment properties with the attendant effect on deferred income taxes.
Condensed summarized information is as follows:
| |
|
|
| |
|
Quarter ended |
| in millions of Canadian dollars |
|
Apr 30 |
|
Apr 30 |
| except per share |
|
2016 |
|
2015 |
| Revenue |
|
|
|
|
|
|
| |
Lease rental revenue |
|
0.7 |
|
|
1.0 |
|
| |
Dividends |
|
0.5 |
|
|
0.5 |
|
| |
Total revenue |
|
1.2 |
|
|
1.5 |
|
| Expense |
|
|
|
|
|
|
| |
Property |
|
0.6 |
|
|
0.7 |
|
| |
Administration & finance |
|
0.4 |
|
|
0.4 |
|
| |
Total expense |
|
1.0 |
|
|
1.1 |
|
| Total revenue less Total expense |
|
0.2 |
|
|
0.4 |
|
| Fair value change: |
|
|
|
|
|
|
| |
Veresen |
|
2.1 |
|
|
4.0 |
|
| |
Other security investments |
|
(0.1 |
) |
|
0.1 |
|
| |
Investment properties |
|
(1.1 |
) |
|
(1.8 |
) |
| |
Total fair value change |
|
0.9 |
|
|
2.3 |
|
| Income tax expense |
|
0.1 |
|
|
0.7 |
|
| Net earnings |
|
1.1 |
|
|
1.9 |
|
| Earnings per share |
|
$0.09 |
|
|
$0.15 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
Apr 30 |
|
Jan 31 |
|
Apr 30 |
| in millions of Canadian dollars |
|
2016 |
|
2016 |
|
2015 |
| Fair value of investments: |
|
|
|
|
|
|
|
|
| |
Veresen |
|
18.1 |
|
16.0 |
|
|
36.1 |
|
| |
Osum |
|
4.8 |
|
4.8 |
|
|
6.2 |
|
| |
Other security investments |
|
2.7 |
|
2.7 |
|
|
4.4 |
|
| |
Investment properties |
|
29.0 |
|
30.1 |
|
|
28.9 |
|
| Other assets |
|
0.9 |
|
1.8 |
|
|
0.8 |
|
| |
|
|
|
|
|
|
|
|
| Debt & payables |
|
6.3 |
|
7.2 |
|
|
6.1 |
|
| Deferred tax payable |
|
0.1 |
|
– |
|
|
1.5 |
|
| |
|
|
|
|
|
|
|
|
| Shareholders’ equity |
|
49.1 |
|
48.2 |
|
|
68.8 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Quarter ended |
| |
|
|
|
Apr 30 |
|
Apr 30 |
| in millions of Canadian dollars |
|
|
|
2016 |
|
2015 |
| Cash flow from: |
|
|
|
|
|
|
|
|
| Operations |
|
|
|
|
|
|
|
|
| |
Cash receipts |
|
|
|
1.4 |
|
|
1.8 |
|
| |
Cash disbursements & finance expense |
|
|
|
(0.9 |
) |
|
(1.1 |
) |
| |
Income taxes recovered (paid) |
|
|
|
0.6 |
|
|
(0.2 |
) |
| Investing |
|
|
|
|
|
|
|
|
| |
Purchase of investments |
|
|
|
– |
|
|
(0.3 |
) |
| |
Expenditures on investment properties |
|
|
|
– |
|
|
(0.1 |
) |
| |
Net expenditures on equipment |
|
|
|
– |
|
|
– |
|
| Financing |
|
|
|
|
|
|
|
|
| |
Increase (decrease) in debt |
|
|
|
(0.9 |
) |
|
0.4 |
|
| |
Purchase of share capital for cancellation |
|
|
|
– |
|
|
(0.2 |
) |
| |
Dividend |
|
|
|
(0.3 |
) |
|
(0.3 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| GENDIS INC. |
| INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION |
| |
| |
|
Apr 30 |
|
Jan 31 |
|
Apr 30 |
| (unaudited – thousands of Canadian dollars) |
|
2016 |
|
2016 |
|
2015 |
| ASSETS |
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
| |
Cash |
|
9 |
|
110 |
|
38 |
| |
Income tax recoverable |
|
– |
|
638 |
|
– |
| |
Receivables |
|
719 |
|
800 |
|
622 |
| Total current assets |
|
728 |
|
1,548 |
|
660 |
| Non-current assets |
|
|
|
|
|
|
| |
Investments in securities (note 2) |
|
25,554 |
|
23,461 |
|
46,756 |
| |
Investment properties (note 3) |
|
28,990 |
|
30,130 |
|
28,857 |
| |
Other current assets |
|
175 |
|
306 |
|
181 |
| Total non-current assets |
|
54,719 |
|
53,897 |
|
75,794 |
| Total assets |
|
55,447 |
|
55,445 |
|
76,454 |
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
| |
Credit facilities (note 4) |
|
4,198 |
|
5,098 |
|
3,994 |
| |
Payables |
|
1,145 |
|
1,151 |
|
1,109 |
| Total current liabilities |
|
5,343 |
|
6,249 |
|
5,103 |
| Non-current liabilities |
|
|
|
|
|
|
| |
Post employment benefit obligation |
|
951 |
|
951 |
|
1,012 |
| |
Deferred income tax payable |
|
94 |
|
– |
|
1,534 |
| Total non-current liabilities |
|
1,045 |
|
951 |
|
2,546 |
| Total liabilities |
|
6,388 |
|
7,200 |
|
7,649 |
| SHAREHOLDERS’ EQUITY |
|
49,059 |
|
48,245 |
|
68,805 |
| Total liabilities and shareholders’ equity |
|
55,447 |
|
55,445 |
|
76,454 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| GENDIS INC. |
|
| INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME |
|
| FOR THE PERIODS ENDED APRIL 30 |
|
| |
|
| (unaudited – thousands of Canadian |
|
quarter ended |
|
| dollars except for share data) |
|
2016 |
|
|
2015 |
|
| Revenue |
|
|
|
|
|
|
| |
Lease rentals |
|
696 |
|
|
976 |
|
| |
Dividends |
|
531 |
|
|
520 |
|
| Total revenue |
|
1,227 |
|
|
1,496 |
|
| Expense |
|
|
|
|
|
|
| |
Property |
|
558 |
|
|
683 |
|
| |
Administration |
|
383 |
|
|
393 |
|
| |
Finance |
|
31 |
|
|
28 |
|
| Total expense |
|
972 |
|
|
1,104 |
|
| Total revenue less total expense |
|
255 |
|
|
392 |
|
| Fair value change |
|
|
|
|
|
|
| |
Investments in securities |
|
2,083 |
|
|
4,088 |
|
| |
Investment properties |
|
(1,142 |
) |
|
(1,809 |
) |
| Total fair value change |
|
941 |
|
|
2,279 |
|
| Earnings before income tax |
|
1,196 |
|
|
2,671 |
|
| Income tax expense |
|
60 |
|
|
733 |
|
| Net earnings from operations and comprehensive income |
|
1,136 |
|
|
1,938 |
|
| Net earnings from operations per share |
|
$0.09 |
|
|
$0.15 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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, 2015 |
|
13,046 |
|
|
13,713 |
|
|
53,667 |
|
|
67,380 |
|
| Comprehensive income |
|
|
|
|
|
|
|
1,938 |
|
|
1,938 |
|
| Purchase of share capital for cancellation |
|
(52 |
) |
|
(54 |
) |
|
(134 |
) |
|
(188 |
) |
| Dividend |
|
|
|
|
|
|
|
(325 |
) |
|
(325 |
) |
| Balance – April 30, 2015 |
|
12,994 |
|
|
13,659 |
|
|
55,146 |
|
|
68,805 |
|
| For the remainder of the year: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Comprehensive loss |
|
|
|
|
|
|
|
(18,915 |
) |
|
(18,915 |
) |
| |
Purchase of share capital for cancellation |
|
(193 |
) |
|
(202 |
) |
|
(477 |
) |
|
(679 |
) |
| |
|
Dividends |
|
|
|
|
|
|
|
(966 |
) |
|
(966 |
) |
| Balance – January 31, 2016 |
|
12,801 |
|
|
13,457 |
|
|
34,788 |
|
|
48,245 |
|
| Comprehensive income |
|
|
|
|
|
|
|
1,136 |
|
|
1,136 |
|
| Purchase of share capital for cancellation |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
(2 |
) |
| Dividend |
|
|
|
|
|
|
|
(320 |
) |
|
(320 |
) |
| Balance – April 30, 2016 |
|
12,800 |
|
|
13,456 |
|
|
35,603 |
|
|
49,059 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| GENDIS INC. |
|
| INTERIM CONDENSED STATEMENT OF CASH FLOWS |
|
| FOR THE PERIODS ENDED APRIL 30 |
|
| |
|
| (unaudited – thousands of Canadian |
|
Quarter ended |
|
| dollars) |
|
2016 |
|
|
2015 |
|
| Changes in cash position |
|
|
|
|
|
|
| By operations |
|
|
|
|
|
|
| |
Cash receipts |
|
|
|
|
|
|
| |
|
Lease rentals |
|
836 |
|
|
1,214 |
|
| |
|
Dividends |
|
596 |
|
|
591 |
|
| |
Cash disbursements |
|
|
|
|
|
|
| |
|
Property |
|
(517 |
) |
|
(582 |
) |
| |
|
Administration |
|
(382 |
) |
|
(455 |
) |
| |
Income taxes paid |
|
– |
|
|
(224 |
) |
| |
Finance expense paid |
|
(31 |
) |
|
(28 |
) |
| Total by operations |
|
1,140 |
|
|
516 |
|
| By investing activities |
|
|
|
|
|
|
| |
Acquisition of security investments |
|
– |
|
|
(300 |
) |
| |
Expenditures on investment properties |
|
(2 |
) |
|
(89 |
) |
| |
Proceeds from disposal of equipment |
|
– |
|
|
85 |
|
| |
Expenditures on furnishings and equipment |
|
(17 |
) |
|
(94 |
) |
| Total by investing activities |
|
(19 |
) |
|
(398 |
) |
| By financing activities |
|
|
|
|
|
|
| |
Net advance (repayment) of credit facilities |
|
(900 |
) |
|
397 |
|
| |
Purchase of share capital for cancellation |
|
(2 |
) |
|
(188 |
) |
| |
Dividend paid |
|
(320 |
) |
|
(325 |
) |
| Total by financing activities |
|
(1,222 |
) |
|
(116 |
) |
| Increase (decrease) in cash |
|
(101 |
) |
|
2 |
|
| |
|
|
|
|
|
|
| Cash – beginning of period |
|
110 |
|
|
36 |
|
| Cash – end of period |
|
9 |
|
|
38 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Gendis Inc. |
| Notes to the unaudited Interim condensed Financial Statements |
| April 30, 2016 |
|
(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, 2016, 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, 2016. These policies have been consistently applied to all periods presented. |
| |
|
|
| 2. |
|
Investments in securities |
| |
|
|
| |
|
Apr 30 |
|
Jan 31 |
| |
|
2016 |
|
2016 |
| |
Veresen |
|
18,080 |
|
15,960 |
| |
Osum |
|
4,759 |
|
4,759 |
| |
Other security investments |
|
2,715 |
|
2,742 |
| |
|
25,554 |
|
23,461 |
| |
|
|
|
|
| |
|
Apr 30 |
|
Jan 31 |
| |
|
2016 |
|
2016 |
| |
Industrial |
|
22,510 |
|
23,480 |
| |
Commercial |
|
6,480 |
|
6,650 |
| |
|
28,990 |
|
30,130 |
| |
|
|
|
|
| |
|
Borrowing Balance |
|
Remaining borrowing availability |
|
Carrying value of collateral |
| |
|
Apr 30 |
|
Jan 31 |
|
Apr 30 |
|
Jan 31 |
|
Apr 30 |
|
Jan 31 |
| |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
|
2016 |
| |
Banker’s acceptances |
|
4,198 |
|
5,098 |
|
4,208 |
|
2,289 |
|
16,815 |
|
14,778 |
| |
Broker’s margin account |
|
– |
|
– |
|
669 |
|
591 |
|
1,339 |
|
1,199 |
| |
|
4,198 |
|
5,098 |
|
4,877 |
|
2,880 |
|
18,154 |
|
15,977 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| 5. |
|
Subsequent Event |
| |
|
On June 3, 2016, the Company declared a regular dividend of 2.5¢ per share to shareholders of record June 24, 2016, payable July 8, 2016. |
| |
|
|
| 6. |
|
Operating segments |
| |
|
|
| |
|
Quarter Ended Apr 30 |
|
Realty |
|
Corporate |
|
Inter- segment |
|
Total |
| Revenue |
|
2016 |
|
713 |
|
|
738 |
|
|
(224 |
) |
|
1,227 |
|
| |
|
2015 |
|
993 |
|
|
727 |
|
|
(224 |
) |
|
1,496 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property & administration |
|
2016 |
|
618 |
|
|
401 |
|
|
(78 |
) |
|
941 |
|
| |
expense |
|
2015 |
|
746 |
|
|
410 |
|
|
(80 |
) |
|
1,076 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance expense |
|
2016 |
|
146 |
|
|
31 |
|
|
(146 |
) |
|
31 |
|
| |
|
2015 |
|
144 |
|
|
28 |
|
|
(144 |
) |
|
28 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue less total expense |
|
2016 |
|
(51 |
) |
|
306 |
|
|
– |
|
|
255 |
|
| |
|
2015 |
|
103 |
|
|
289 |
|
|
– |
|
|
392 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value change |
|
2016 |
|
(1,142 |
) |
|
2,083 |
|
|
– |
|
|
941 |
|
| |
|
2015 |
|
(1,809 |
) |
|
4,088 |
|
|
– |
|
|
2,279 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (expense) recovery |
|
2016 |
|
21 |
|
|
(81 |
) |
|
– |
|
|
(60 |
) |
| |
|
2015 |
|
216 |
|
|
(949 |
) |
|
– |
|
|
(733 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive income |
|
2016 |
|
(1,172 |
) |
|
2,308 |
|
|
– |
|
|
1,136 |
|
| |
|
2015 |
|
(1,490 |
) |
|
3,428 |
|
|
– |
|
|
1,938 |
|
| Total assets |
|
2016 |
|
29,509 |
|
|
48,047 |
|
|
(22,109 |
) |
|
55,447 |
|
| |
|
2015 |
|
29,372 |
|
|
66,515 |
|
|
(19,433 |
) |
|
76,454 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
2016 |
|
22,756 |
|
|
5,741 |
|
|
(22,109 |
) |
|
6,388 |
|
| |
|
2015 |
|
21,831 |
|
|
5,251 |
|
|
(19,433 |
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7,649 |
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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:
www.gendis.ca
