CALGARY, Nov. 22, 2016 /CNW/ - Gemini Corporation
(GKX-TSXV) announced today the financial and operating results for
the three and nine months ended September
30, 2016. All financial figures are expressed in Canadian
dollars.
The third quarter 2016 adjusted EBITDA was $3.6 million on revenue of $22.1 million, compared to a loss of $12.8 million on revenue of $46.1 million in the same quarter last year.
Although revenue was down significantly compared to the same period
last year, the Company was able to execute its projects safely, on
time and on budget for its clients. The majority of revenue during
the quarter came from the completion of the large module programs
performed at the Ponoka
fabrication facility. Project delivery by our construction and
maintenance teams in the Heartland area has continued to deliver
excellent client service and work quality. Our Environmental
Solutions team has seen a slow but steady pick up in work volume
and client activity this quarter compared to the second quarter of
2016.
"We are encouraged by the effort our team has put in this
quarter to generate positive operating cash flows," said
Pete Sametz, Gemini's President and
CEO. "However, we still continue to face marketplace challenges as
we pursue additional backlog for 2017 with new and existing
clients. It has been difficult to determine a successful market
price in the current 'race to the bottom' pricing environment. Our
focus remains on creating value for our clients by providing an
integrated approach ensuring that safety and quality are not
sacrificed in our delivery, and we will continue to pursue this
with unwavering enthusiasm and passion."
During the quarter, the Company generated operating cash flows
of $4.7 million which resulted in the
repayment of $4.4 million on the bank
operating line. The bank operating line at September 30, 2016 was $2.4 million, down from $6.8 million at June 30,
2016.
Third quarter gross profit for 2016 was $6.3 million compared to a $9.3 million loss in the same period of 2015. We
expect revenue for the remainder of 2016 to track well below the
levels achieved in 2015 as a result of the completion of the major
rail loading terminal project last year and reduced activity in the
oil and gas sector. It is anticipated that margins will remain
compressed well into 2017 until there is a reduction in the service
industry capacity or a sustained improvement in commodity
prices.
Gemini reported a non-cash impairment of $3.2 million in the third quarter as a result of
impairment in the Environmental Solutions segment and adjustments
to the remaining useful lives of certain corporate assets.
CONSOLIDATED FINANCIAL OVERVIEW
($'000's)
|
Three Months
Ended
September 30
|
Nine Months
Ended
September 30
|
|
|
|
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Revenue
|
22,129
|
46,055
|
82,192
|
145,279
|
Gross profit
(loss)
|
6,258
|
(9,295)
|
11,478
|
(6,276)
|
Net loss
|
(1,229)
|
(8,976)
|
(4,548)
|
(13,420)
|
Net loss per share -
basic and diluted
|
(0.02)
|
(0.12)
|
(0.06)
|
(0.17)
|
Adjusted EBITDA
(1)
|
3,573
|
(12,758)
|
1,953
|
(16,755)
|
|
|
|
|
|
|
|
|
September 30
2016
|
December 31
2015
|
Total
assets
|
|
|
30,811
|
44,773
|
Total non-current
liabilities
|
|
|
3,913
|
4,785
|
Working capital
(1)
|
|
|
7,574
|
8,943
|
Total
equity
|
|
|
8,780
|
13,246
|
|
|
|
|
|
(1) Non-IFRS financial
measure
|
|
|
|
|
MD&A AND FINANCIAL STATEMENTS
The 2016 Q3 Management's Discussion and Analysis, and the
Condensed Consolidated Interim Financial Statements provide a
detailed explanation of Gemini's operating results for the three
and nine months ended September 30,
2016. These documents are available online at
www.geminicorp.ca and SEDAR immediately after the results are
released by newswire under Gemini's profile at www.sedar.com.
FORWARD-LOOKING STATEMENTS AND NON-IFRS FINANCIAL
MEASURES
This news release may contain forward looking information that
represents Gemini's expectations, estimates or beliefs concerning,
among other things, the timing of any recovery in oil and gas
prices, the recovery of the markets for the Company's products and
services, 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" and similar expressions. The 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. Gemini does
not undertake to update any forward-looking information in this
document whether as to new information, future events or
otherwise.
This news release refers to certain Non-IFRS financial measures
that are not determined in accordance with International Financial
Reporting Standards ("IFRS"). The measures used are "backlog",
"working capital" and "adjusted EBITDA". These measures are used by
our management to assist in making operating decisions and
assessing performance. While we calculate these measures
consistently from period to period, they likely will not be
directly comparable to similar measures used by other companies
because they do not have standardized meanings prescribed by IFRS.
See the "Non-IFRS Measures" section of the September 30, 2016 MD&A. Investors are
encouraged to evaluate each adjustment and the reasons Gemini
considers it appropriate for supplemental analysis. Investors are
cautioned, however, that these measures should not be construed as
an alternative to net earnings determined in accordance with IFRS
as an indication of Gemini's performance. The forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement.
ABOUT GEMINI CORPORATION
Gemini, through its subsidiaries, operates as an integrated
project solutions company focused on energy and industrial
facilities. Gemini offers services on either a stand-alone basis or
in a combination, integrated to provide our clients with a single
point of accountability. The Company will be celebrating its 35th
anniversary in 2017.
Through an all-in commitment from every individual in the
Company, Gemini is determined to change the client perspective of
how project services should be delivered. The Company is uniquely
qualified to provide a full spectrum of modular and integrated
project solutions, leveraging a philosophy and approach that
directly aligns with its clients' business objectives.
The Company is capable of servicing its clients through the full
life cycle of their assets; from asset acquisition, environmental
and regulatory support, engineering, fabrication construction,
maintenance, turnarounds, de-commissioning, reclamation and
remediation. Gemini provides full project management to integrate
any or all of these services. The Company's principal target
markets are oil and gas, heavy oil, oil sands, midstream and
pipeline facilities, hydrocarbon processing, power and other
industrials.
The Company operates in western Canada and is headquartered in Calgary with offices in Ponoka, Fort
Saskatchewan and Fort St.
John. Services and products are delivered through three
business segments: Field Solutions, Engineered Solutions and
Environmental Solutions.
Shares of Gemini trade on the TSX Venture Exchange under the
symbol "GKX". For more information about the Company and its
services, go to www.geminicorp.ca.
Gemini's 2016 third quarter report will be filed on SEDAR at
http://www.sedar.com by November 22,
2016.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Gemini Corporation