Gemini Corporation Reports 2011 Third Quarter Results
November 24 2011 - 5:37PM
Marketwired Canada
Gemini Corporation (TSX VENTURE:GKX) announces its third quarter financial
results for the period ended September 30, 2011.
Revenue in the third quarter of 2011 totalled $18,845,000, which was a 10%
decline from the $20,967,000 achieved in the third quarter of 2010. This
represented a continuing trend of improved quarterly revenue levels for 2011,
although year to date revenue of $45,429,000 still trails last year's results
for the same period by 21%. The quarterly and year to date shortfall in revenue
is due to significantly reduced field construction work. This has been driven by
weak market conditions and management's decision to lessen the Corporation's
exposure to risks associated with direct-hire field construction projects.
Concentrated efforts have been directed toward expanding the engineering,
maintenance and fabrication operations. The growth in revenue from these
operations has not fully offset the reduction in construction work, but it is
expected that this should be achieved in 2012.
Third quarter gross profit for 2011 was $3,295,000 compared to $4,127,000 for
the same period of 2010. Year to date gross profit for 2011 of $8,622,000
remains significantly below the $12,455,000 achieved last year. The shortfall in
revenue combined with competitive pricing pressures, labour cost escalation, and
less than optimum utilization rates has significantly reduced gross profit.
Adjusting the operating structure of the Corporation has provided sufficient
fixed cost relief to bring the quarterly net income results to near breakeven.
Emphasis will continue to be on growing revenues at acceptable prices and
optimizing utilization rates in order to regain sustainable profitability. The
third quarter net loss of $122,000 (0.3 cents per share) is a slight improvement
over the loss experienced in the second quarter, but it increases the year to
date net loss to $1,269,000 (3.6 cents per share).
"This 2011 year continues to be very challenging from many perspectives, but on
a more positive note, the demand for our services is strong and our operating
structure has been aligned to pursue an increasing share of the available
project work", stated Doug Lautermilch, Gemini's President and CEO. "Our
challenge for the fourth quarter of 2011 and into 2012 is to maximize the
effectiveness of our business development initiatives and to carefully manage
our utilization and costs to ensure we achieve profitability."
About Gemini Corporation
Gemini Corporation is a professional services firm that designs, builds and
maintains energy and industrial facilities. Founded in 1982, Gemini provides
services on either a standalone basis or by combining engineering and field
service capabilities to increase project efficiency and provide a single point
of accountability. The Corporation's principal target markets are conventional
and unconventional oil and gas, in-situ heavy oil, and heavy industrial
facilities.
Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For
more information about the Corporation and its services, go to
www.geminicorp.ca.
Gemini's 2011 third quarter financial report will be filed with SEDAR at
http://www.sedar.com by November 25, 2011.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Operating
Highlights
($'000) Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
2011 2010 2011 2010
Revenue $ 18,845 $ 20,967 $ 45,429 $ 57,198
Gross profit 3,295 4,127 8,622 12,455
Income before
interest & taxes (99) 632 (1,572) 1,525
Net (loss) income $ (122) $ 379 $ (1,269) $ 896
Earnings per share
(basic & diluted) $ (0.003) $ 0.011 $ (0.036) $ 0.026
Operating cash
flow (i)
(excludes working
capital changes) $ 142 $ 958 $ (836) $ 2,471
Operating cash
flow per share $ 0.004 $ 0.027 $ (0.024) $ 0.071
September 30, December 31,
Balance Sheet Highlights ($'000) 2011 2010
Working capital $ 7,842 $ 8,802
Total assets 26,515 23,246
Shareholders' equity 13,482 14,661
(i) Operating cash flow and operating cash flow per share are non-GAAP financial
measures which do not have a standard meaning and therefore may not be
comparable to similar measures presented by other companies. The Corporation
provides these measures in its quarterly news releases to indicate the amount of
cash generated for operating purposes during the period.
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.
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