Gemini Corporation Reports 2014 First Quarter Results
May 15 2014 - 4:00PM
Marketwired Canada
Gemini Corporation (TSX VENTURE:GKX) announces its first quarter financial
results for the period ended March 31, 2014.
Revenue in the first quarter of 2014 totalled $28,218,000, which was a 63%
increase from the $17,350,000 achieved in the first quarter of 2013. As is
typical of the first quarter of the year in the oil and gas industry, the
availability of project work was constrained. Notwithstanding the seasonal
factors, the Corporation was able to secure projects that provided sufficient
workload to retain its core staff, but at lower margins due to the highly price
competitive environment. Client forecasts continue to indicate that activity
levels should improve in the second quarter and return to normal in the second
half of the year, which is expected to alleviate the temporary margin
compression.
First quarter gross profit for 2014 was $3,680,000 compared to $2,443,000 in the
same period last year. Margins were constrained in the Field Solutions segment
due to the current price competitive environment, but are expected to average
out for the year at historic levels. In addition, utilization rates for the
Engineered Solutions segment were somewhat lower than those achieved in the last
half of 2013, which had a dampening effect on gross profit.
The Corporation's 2014 first quarter net loss attributable to shareholders was
$171,000 (0.3 cents per share) compared to a net loss of $370,000 (0.7 cents per
share) in the same period last year.
"It was a challenging start to 2014 as a result of the competitive price
environment and certain delays in work being issued from our key clients,"
stated Doug Lautermilch, Gemini's President and CEO. "Our prospects for the
balance of this year are encouraging and we are looking forward to improving
upon the overall performance we achieved in 2013."
About Gemini Corporation
Gemini Corporation is a professional services firm that designs, builds and
maintains energy and industrial facilities. Founded in 1982, Gemini combines its
engineering and field service capabilities to increase project efficiency and
provide a single point of accountability. The Corporation's principal target
markets are in-situ heavy oil, midstream, oil and gas production, and oil and
gas processing facilities.
Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For
more information about the Corporation and its services, go to
www.geminicorp.ca.
Gemini's 2014 first-quarter report will be filed with SEDAR at
http://www.sedar.com by May 16, 2014.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Three Months Ended
(Unaudited)
Operating Highlights ($'000) March 31, March 31,
2014 2013
Revenue $ 28,218 $ 17,350
Gross profit 3,680 2,443
Income (loss) from operating activities (129) (437)
Net income (loss) attributable to shareholders $ (171) $ (370)
Earnings per share (basic & diluted) $ (0.003) $ (0.007)
Financial Position Highlights ($'000) March 31, December 31,
2014 2013
Working capital $ 14,434 $ 14,489
Total assets 40,160 41,823
Shareholders' equity 21,800 21,602
Disclaimer
This news release may contain 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.
The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gemini Corporation
Doug Lautermilch
President & CEO
(403) 259-0311
dlautermilch@geminicorp.ca
Gemini Corporation
Robert Brookwell
Executive VP & CFO
(403) 258-5401
rbrookwell@geminicorp.ca
www.geminicorp.ca
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