WINNIPEG, MANITOBA--(Marketwired - Apr 11, 2014) - Gendis Inc. (TSX:GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2014.
Revenue for the 4th quarter was $1,513,000 compared to $1,416,000 for last year's 4th quarter. Revenue less expense for the 4th quarter was $807,000 compared to $557,000 for last year's 4th quarter. Net earnings for the 4th quarter were $5,640,000 ($0.41 per share) compared to earnings of $4,082,000 ($0.30 per share) for last year's 4th quarter.
Revenue for the year was $6,072,000 compared to $5,887,000 last year. Revenue less expense for the year was $2,845,000 compared to $2,275,000 last year. Net earnings for the year was $5,092,000 ($0.37 per share) compared to a net loss of $4,218,000 ($0.30 per share) for last year.
The volatility in net earnings quarter over quarter and for the 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 | year ended | ||||||||||
in millions of Canadian dollars except per share |
Jan 31 2014 |
Jan 31 2013 |
Jan 31 2014 |
Jan 31 2013 | |||||||
Revenue | |||||||||||
Lease rental revenue | 1.0 | 0.9 | 4.1 | 3.9 | |||||||
Dividends | 0.5 | 0.5 | 2.0 | 2.0 | |||||||
Total revenue | 1.5 | 1.4 | 6.1 | 5.9 | |||||||
Expense | |||||||||||
Property | 0.4 | 0.4 | 1.8 | 1.8 | |||||||
Administration & finance | 0.3 | 0.4 | 1.4 | 1.8 | |||||||
Total expense | 0.7 | 0.8 | 3.2 | 3.6 | |||||||
Total revenue less total expense | 0.8 | 0.6 | 2.9 | 2.3 | |||||||
Fair value change: | |||||||||||
Veresen | 4.0 | (0.1 | ) | 4.1 | (4.5 | ) | |||||
Osum | - | - | (2.0 | ) | (8.2 | ) | |||||
Other equity investments | 0.3 | - | 0.6 | (0.9 | ) | ||||||
Investment properties | 1.4 | 1.8 | 0.4 | 1.7 | |||||||
Total fair value change | 5.7 | 1.7 | 3.1 | (11.9 | ) | ||||||
Settlement of legal claims | - | - | - | 1.5 | |||||||
Income tax recovery (expense) | (0.9 | ) | 1.8 | (0.9 | ) | 3.9 | |||||
Net earnings (loss) | 5.6 | 4.1 | 5.1 | (4.2 | ) | ||||||
Earnings (loss) per share | 0.41 | $ | 0.30 | 0.37 | $ | (0.30 | ) | ||||
Jan 31 | Jan 31 | ||||||||
in millions of Canadian dollars | 2014 | 2013 | |||||||
Fair value of investments: | |||||||||
Veresen | 29.7 | 25.7 | |||||||
Osum | 11.5 | 14.5 | |||||||
Other equity investments | 3.7 | 3.0 | |||||||
Investment properties | 30.4 | 29.8 | |||||||
Other assets | 1.0 | 2.0 | |||||||
Debt & payables | 3.3 | 5.2 | |||||||
Deferred tax payable | 1.2 | 0.6 | |||||||
Shareholders' equity | 71.8 | 69.3 | |||||||
quarter ended | year-to-date | ||||||||
in millions of Canadian dollars |
Jan 31 2014 |
Jan 31 2013 |
Jan 31 2014 |
Jan 31 2013 | |||||
Cash flow from: | |||||||||
Operations | |||||||||
Cash receipts | 1.2 | 1.4 | 6.0 | 6.1 | |||||
Cash disbursements & finance expense | (0.6 | ) | (0.8 | ) | (3.4 | ) | (3.8 | ) | |
Settlement of legal claims | - | - | - | 1.5 | |||||
Income taxes recovered (paid) | - | - | (0.2 | ) | 0.7 | ||||
Investing | |||||||||
Proceeds on sales of investments | - | 1.9 | 2.1 | 2.0 | |||||
Purchase of investments | - | (1.3 | ) | - | (4.1 | ) | |||
Expenditures on investment properties | - | (0.1 | ) | (0.2 | ) | (0.6 | ) | ||
Financing | |||||||||
Debt reduction | - | (0.4 | ) | (1.9 | ) | (0.1 | ) | ||
Purchase of share capital for cancellation | (0.3 | ) | (0.2 | ) | (1.1 | ) | (0.4 | ) | |
Dividends paid | (0.3 | ) | (0.3 | ) | (1.4 | ) | (1.4 | ) |
Gendis Inc. holds a portfolio of commercial and industrial real estate properties in Canada, investments in exchange-traded equity securities and investments in the equity of private enterprises. Equity investments are primarily in companies involved in pipelines and power plants, oil and gas development, canola crop marketing, fertilizer production and waste management solutions. The investments are held for income generation and long-term capital growth.
GENDIS INC. | |||
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION | |||
Jan 31 | Jan 31 | ||
(unaudited - thousands of Canadian dollars) | 2014 | 2013 | |
ASSETS | |||
Current assets | |||
Cash | 47 | 77 | |
Receivables | 995 | 1,929 | |
Total current assets | 1,042 | 2,006 | |
Non-current assets | |||
Equity investments (note 2) | 44,927 | 43,167 | |
Investment property | 30,385 | 29,775 | |
Furnishings and equipment | 61 | 48 | |
Total non-current assets | 75,373 | 72,990 | |
Total assets | 76,415 | 74,996 | |
LIABILITIES | |||
Current liabilities | |||
Credit facilities (note 3) | 1,599 | 3,500 | |
Payables | 806 | 763 | |
Total current liabilities | 2,405 | 4,263 | |
Non-current liabilities | |||
Post employment benefit obligation | 937 | 972 | |
Deferred income tax payable | 1,231 | 578 | |
Total non-current liabilities | 2,168 | 1,550 | |
Total liabilities | 4,573 | 5,813 | |
SHAREHOLDERS' EQUITY | 71,842 | 69,183 | |
Total liabilities and shareholders' equity | 76,415 | 74,996 |
GENDIS INC. | ||||||||||
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||
FOR THE PERIODS ENDED JANUARY 31 | ||||||||||
quarter ended | year-to-date | |||||||||
(unaudited - thousands of Canadian dollars except for share data) | 2014 | 2013 | 2014 | 2013 | ||||||
Revenue | ||||||||||
Lease rentals | 1,013 | 914 | 4,059 | 3,874 | ||||||
Dividends | 500 | 502 | 2,013 | 2,013 | ||||||
Total revenue | 1,513 | 1,416 | 6,072 | 5,887 | ||||||
Expense | ||||||||||
Property | 382 | 404 | 1,833 | 1,817 | ||||||
Administration | 305 | 421 | 1,323 | 1,627 | ||||||
Finance | 19 | 34 | 71 | 168 | ||||||
Total expense | 706 | 859 | 3,227 | 3,612 | ||||||
Total revenue less total expense | 807 | 557 | 2,845 | 2,275 | ||||||
Fair value change | ||||||||||
Investment property | 1,416 | 1,779 | 378 | 1,648 | ||||||
Equity investments | 4,317 | (63 | ) | 2,733 | (13,566 | ) | ||||
Total fair value change | 5,733 | 1,716 | 3,111 | (11,918 | ) | |||||
Settlement of legal claims | - | - | - | 1,483 | ||||||
Earnings (loss) before income tax | 6,540 | 2,273 | 5,956 | (8,160 | ) | |||||
Income tax (expense) recovery | (900 | ) | 1,809 | (864 | ) | 3,942 | ||||
Net earnings (loss) from operations and comprehensive income (loss) | 5,640 | 4,082 | 5,092 | (4,218 | ) | |||||
Net earnings (loss) from operations per share | 0.41 | 0.30 | 0.37 | $ | (0.30 | ) |
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 to October 31, 2012 | (8,300 | ) | (8,300 | ) | ||||
Purchase of share capital for cancellation | (46 | ) | (48 | ) | (95 | ) | (143 | ) |
Dividends paid | (1,045 | ) | (1,045 | ) | ||||
Balance - October 31, 2012 | 13,891 | 14,602 | 51,075 | 65,677 | ||||
Comprehensive income for the quarter ended January 31, 2013 | 4,082 | 4,082 | ||||||
Purchase of share capital for cancellation | (75 | ) | (79 | ) | (151 | ) | (230 | ) |
Dividends paid | (346 | ) | (346 | ) | ||||
Balance - January 31, 2013 | 13,816 | 14,523 | 54,660 | 69,183 | ||||
Comprehensive loss to October 31, 2013 | (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 | ||||
Comprehensive income for the quarter ended January 31, 2014 | 5,640 | 5,640 | ||||||
Purchase of share capital for cancellation | (91 | ) | (96 | ) | (202 | ) | (298 | ) |
Dividends paid | (338 | ) | (338 | ) | ||||
Balance - January 31, 2014 | 13,481 | 14,170 | 57,672 | 71,842 |
GENDIS INC. |
INTERIM CONDENSED STATEMENT OF CASH FLOWS |
FOR THE PERIODS ENDED JANUARY 31 |
quarter ended | year to date | ||||||||
(unaudited - thousands of Canadian dollars) | 2014 | 2013 | 2014 | 2013 | |||||
Changes in cash position | |||||||||
By operations | |||||||||
Cash receipts | 1,192 | 1,409 | 6,029 | 6,074 | |||||
Cash disbursements | (580 | ) | (756 | ) | (3,331 | ) | (3,624 | ) | |
Settlement of legal claims | - | - | - | 1,483 | |||||
Income taxes recovered (paid) | - | - | (203 | ) | 706 | ||||
Finance expense paid | (18 | ) | (34 | ) | (73 | ) | (169 | ) | |
Total by operations | 594 | 619 | 2,422 | 4,470 | |||||
By investing activities | |||||||||
Proceeds from sale of equity investments | - | 1,879 | 2,144 | 1,997 | |||||
Acquisition of equity investments | - | (1,350 | ) | - | (4,088 | ) | |||
Expenditures on investment property | (4 | ) | (96 | ) | (232 | ) | (567 | ) | |
Expenditures on furnishings and equipment | (6 | ) | (12 | ) | (30 | ) | (13 | ) | |
Total by investing activities | (10 | ) | 421 | 1,882 | (2,671 | ) | |||
By financing activities | |||||||||
Net repayment of credit facilities | - | (397 | ) | (1,901 | ) | (100 | ) | ||
Purchase of share capital for cancellation | (298 | ) | (230 | ) | (1,065 | ) | (373 | ) | |
Dividends paid | (338 | ) | (346 | ) | (1,368 | ) | (1,391 | ) | |
Total by financing activities | (636 | ) | (973 | ) | (4,334 | ) | (1,864 | ) | |
Increase (decrease) in cash | (52 | ) | 67 | (30 | ) | (65 | ) | ||
Cash - beginning of period | 99 | 10 | 77 | 142 | |||||
Cash - end of period | 47 | 77 | 47 | 77 |
Gendis Inc. |
Notes to the unaudited Interim condensed Financial Statements |
January 31, 2014 |
(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
Jan 31 | Jan 31 | |
2014 | 2013 | |
Veresen | 29,740 | 25,660 |
Osum | 11,502 | 14,487 |
Other equity investments | 3,685 | 3,020 |
44,927 | 43,167 |
3. Credit facilities
Borrowing Balance |
Remaining borrowing availability |
Carrying value of collateral | ||||
Jan 31 | Jan 31 | Jan 31 | Jan 31 | Jan 31 | Jan 31 | |
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |
Banker's acceptances | 1,499 | 3,000 | ||||
Bank demand loan | 100 | 500 | ||||
1,599 | 3,500 | 8,400 | 6,500 | 27,538 | 23,760 | |
Broker's margin account | - | - | 1,101 | 1,205 | 2,547 | 2,920 |
1,599 | 3,500 | 9,501 | 7,705 | 30,085 | 26,680 |
4. Settlement of legal claims
During the 2nd quarter of the year ended January 31, 2013, the Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company. The Company received $1.5-million.
5. Subsequent Event
On March 6, 2014, the Company declared a regular dividend of 2.5¢ per share to shareholders of record March 21, 2014, payable April 4, 2014.
6. Operating segments
Quarter Ended Jan 31 | Realty | Corporate | Inter- segment | Total | |||||
Revenue | 2014 | 1,030 | 708 | (225 | ) | 1,513 | |||
2013 | 931 | 719 | (234 | ) | 1,416 | ||||
Property & administration | 2014 | 436 | 322 | (71 | ) | 687 | |||
Expense | 2013 | 457 | 439 | (71 | ) | 825 | |||
Finance expense | 2014 | 154 | 19 | (154 | ) | 19 | |||
2013 | 163 | 34 | (163 | ) | 34 | ||||
Total revenue less total Expense | 2014 | 440 | 367 | - | 807 | ||||
2013 | 311 | 246 | - | 557 | |||||
Fair value change | 2014 | 1,416 | 4,317 | - | 5,733 | ||||
2013 | 1,779 | (63 | ) | - | 1,716 | ||||
Income tax recovery (expense) | 2014 | (597 | ) | (303 | ) | - | (900 | ) | |
2013 | (432 | ) | 2,241 | - | 1,809 | ||||
Net earnings from operations & Comprehensive income | 2014 | 1,259 | 4,381 | - | 5,640 | ||||
2013 | 1,658 | 2,424 | - | 4,082 | |||||
Year Ended Jan 31 | Realty | Corporate | Inter- segment | Total | |||||
Revenue | 2014 | 4,128 | 2,852 | (908 | ) | 6,072 | |||
2013 | 3,943 | 2,879 | (935 | ) | 5,887 | ||||
Property & administration | 2014 | 2,049 | 1,392 | (285 | ) | 3,156 | |||
Expense | 2013 | 2,033 | 1,696 | (285 | ) | 3,444 | |||
Finance expense | 2014 | 623 | 71 | (623 | ) | 71 | |||
2013 | 650 | 168 | (650 | ) | 168 | ||||
Total revenue less total expense | 2014 | 1,456 | 1,389 | - | 2,845 | ||||
2013 | 1,260 | 1,015 | - | 2,275 | |||||
Fair value change | 2014 | 378 | 2,733 | - | 3,111 | ||||
2013 | 1,648 | (13,566 | ) | - | (11,918 | ) | |||
Settlement of legal claims | 2014 | - | - | - | - | ||||
2013 | - | 1,483 | 1,483 | ||||||
Income tax recovery (expense) | 2014 | (592 | ) | (272 | ) | - | (864 | ) | |
2013 | (653 | ) | 4,595 | - | 3,942 | ||||
Net earnings (loss) from operations & Comprehensive income (loss) | 2014 | 1,242 | 3,850 | - | 5,092 | ||||
2013 | 2,255 | (6,473 | ) | - | (4,218 | ) | |||
Total assets | 2014 | 30,975 | 68,354 | (22,914 | ) | 76,415 | |||
2013 | 30,167 | 65,710 | (20,882 | ) | 74,996 | ||||
Total liabilities | 2014 | 24,677 | 2,810 | (22,914 | ) | 4,573 | |||
2013 | 22,377 | 4,318 | (20,882 | ) | 5,813 |