Gemini Corporation Reports 2011 Third Quarter Results
November 24 2011 - 6:37PM
Marketwired
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.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
Contacts: Gemini Corporation Doug Lautermilch President &
CEO (403) 259-0311dlautermilch@geminicorp.ca Gemini Corporation
Robert Brookwell Executive VP & CFO (403)
258-5401rbrookwell@geminicorp.cawww.geminicorp.ca
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