GKX Gemini Corp. (delisted)

Gemini Corporation (TSX VENTURE:GKX) today announced its second quarter
financial results for the period ended June 30, 2008.


Revenue in the second quarter totalled $19,852,000, a 46% increase over the
$13,594,000 achieved in the second quarter of 2007. Revenues to date for 2008
total $38,574,000 compared to $30,692,000 last year, which is a 26% increase
year over year. This increase reflects the impact of the strong backlog of work
secured in late 2007 and early 2008. Revenues for the remaining half of the year
are expected to be similar to those achieved in the first half. The most notable
difference in the revenues for the second half is that Engineering is expected
to increase to 33% of revenue from 25%, which should result in an improvement in
overall profitability due to the higher margins earned in this segment. Field
Services will continue to work through its backlog at a somewhat slower pace due
to certain client-driven schedule changes on various projects.


Aggressive sales and marketing efforts are yielding additional opportunities to
add to the backlogs in both business segments. Field services are seeking to
fill any available capacity into 2009 and Engineering is continuing to secure
additional long-term projects. This is resulting in more stable quarterly
revenues and is requiring the Corporation to recruit a significant number of
additional personnel especially within Engineering to keep up with client
requirements.


Second quarter gross profits for 2008 were $3.4 million compared to the $3.0
million achieved in the same period last year. This brings year to date gross
profits to $6.8 million for 2008 compared to $6.4 million in 2007. The 2008
second quarter profitability is not as strong as expected due to certain
production cost challenges encountered in the Corporation's fabrication
operation. These issues are being addressed and it is expected that third and
fourth quarter margins will return to more acceptable levels. In addition, the
increase in Engineering revenues anticipated for the last half of the year
should result in stronger overall gross profit results. 


Net earnings for the second quarter of 2008 were $210,000 (0.5 cents per share)
compared to a net loss of $317,000 (1.0 cents per share) for the same quarter
last year. As a result, Gemini's net earnings for 2008 are now nearly $900,000
higher than those achieved in the first half of 2007. Earnings for the second
quarter were supported by a $341,000 gain on the sale of 16 of Gemini's 96 acres
of land located on the outskirts of Fort Saskatchewan. This land was surplus to
the Corporation's needs and was sold for net proceeds of $720,000. 


"We have regained a great deal of momentum through our more aggressive sales and
marketing efforts and we expect this to translate into long-term stability in
our workload and improved profitability in the coming quarters", said Carl
Johnson, Gemini's President and CEO. "The second quarter was not as profitable
as we had anticipated in part due to longer project ramp up time, but we are
seeing an improvement in each one of our operating units as 2008 continues to
unfold. We have secured a substantial backlog of work and we intend to continue
to grow this backlog as we seek to maximize profitability. One of our challenges
continues to be managing project issues caused by client deliverables."


About Gemini Corporation

Gemini Corporation offers a wide range of interrelated services including
engineering, fabrication, construction, operations and maintenance of oil & gas
and industrial facilities within Canada and internationally. The Corporation is
a leading provider of engineered solutions and field services through either
stand-alone or integrated, full-service approaches to a broadening client base
in an array of industry sectors. 


Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For
more information about the Corporation and its services, go to
www.geminicorp.ab.ca. 


Gemini's 2008 second quarter report will be filed with SEDAR at
http://www.sedar.com by August 20, 2008.




CONSOLIDATED FINANCIAL HIGHLIGHTS

                              Three Months Ended           Six Months Ended
Operating Highlights          June 30,   June 30,    June 30,       June 30,
 ($'000)                         2008       2007        2008           2007

Revenue                    $   19,852 $   13,594  $   38,574 $       30,692
Gross profit                    3,379      3,044       6,829          6,436
Earnings before interest &
 taxes                            365       (317)        577           (676)
Net earnings                      210       (317)        218           (683)
Earnings per share (basic) $    0.005 $   (0.010) $    0.005 $       (0.021)
Earnings per share
 (diluted)                 $    0.005 $   (0.010) $    0.005 $       (0.021)

Operating cash flow(1)     $      274 $      (35) $      754 $          (24)
(excludes working capital
 changes)
Operating cash flow per
 share                     $    0.008 $   (0.001) $    0.022 $       (0.001)

Balance Sheet Highlights ($'000)                     June 30,   December 31,
                                                        2008           2007
Working capital                                   $    8,543 $        7,839
Total assets                                          29,938         26,739
Shareholders' equity                                  13,431         12,900

(1) Operating cash flow is a non-GAAP financial measure which does not have
    a standard meaning and therefore may not be comparable to similar
    measures presented by other companies.



Disclaimer

This news release contains forward looking information that represents Gemini's
internal projections, expectations, estimates or beliefs concerning, among other
things, future operating results and various components thereof or Gemini's
future economic performance. All statements other than the statements of
historical fact may be forward-looking statements. In some cases,
forward-looking statements can be identified by terminology such as "may",
"will", "should", "expects", "projects", "plans", "anticipates", and similar
expressions. The projections, estimates and beliefs contained in such
forward-looking statements are based on management's assumptions relating to
Gemini's performance and competition within the sectors in which it competes,
the continuation of the current regulatory and tax regimes in the jurisdictions
in which Gemini operates, and necessarily involve known and unknown risks and
uncertainties, including risks and assumptions relating to client service
demand, field service costs, labour rates, and other factors that may cause
actual performance and financial results in future periods to differ materially
from any projections of future performance or results expressed or implied by
such forward-looking statements. Accordingly, readers are cautioned that events
or circumstances could cause results to differ materially from those predicted
or suggested. The Corporation does not undertake to update any forward-looking
information in this document whether as to new information, future events or
otherwise.

Gemini Corporation (TSXV:GKX)
Historical Stock Chart
From Jun 2024 to Jul 2024

Gemini Corporation (TSXV:GKX)
Historical Stock Chart
From Jul 2023 to Jul 2024