CALGARY, Nov. 25, 2015 /CNW/ - Gemini Corporation
(GKX-TSXV) announces its third quarter financial results for the
period ended September 30, 2015.
Revenue in the third quarter of 2015 totalled $46.1 million, which was a 37% increase over the
$33.7 million achieved in the third
quarter of 2014. This brings year to date revenue to a total of
$145.3 million compared to
$95.5 million for the same period
last year. The revenue growth for 2015 has been primarily
attributable to the major rail loading terminal project that the
Corporation has been completing. The project has been turned over
to the client for commissioning and testing, so revenue for the
fourth quarter is expected to decline to approximately half of the
third quarter level. Ongoing constraints on capital spending by oil
and gas producers are limiting industry activity and creating
extremely competitive pricing conditions and compressed
margins.
Third quarter gross profit for 2015 was $(9.3) million compared to $6.0 million in the same period of 2014 and the
results for the year to date are $(6.3)
million versus $14.4 million,
respectively. The gross profit in the third quarter was driven
negative by significant cost overruns on the rail loading terminal
project. The cost mitigation efforts to complete the project did
not yield the level of savings that had been anticipated and as a
result the costs incurred in the third quarter were substantially
higher than expected. As previously reported, the Corporation
entered into an amending agreement for this contract that provided
for the sharing of excess costs beyond the specified lump sum
contract value. This agreement provided for the excess costs to be
split equally between the client and Gemini, with the client
further providing cash flow support for a portion of the excess
costs in the form of a credit obligation on a non-interest bearing
basis for a period of 5 years.
The Corporation's 2015 third quarter net loss was $9.0 million (12¢ per share – basic) compared to
the 2014 third quarter net income of $1.3
million (2¢ per share – basic). The net loss for the nine
months ended September 30, 2015
totalled $13.4 million (17¢ per share
– basic) compared to a net income of $1.5
million (3¢ per share – basic) for the same period of
2014.
"The rail loading project encountered various unforeseen
challenges this year, however, Gemini demonstrated resiliency by
managing through these difficult circumstances," stated
Doug Lautermilch, Gemini's President
and CEO. "The project has been turned over to the client and we are
now focussing on increasing the 2016 backlog of work secured with
numerous clients and executing that backlog with a much leaner and
efficient organization to return to profitability."
About Gemini Corporation
Gemini Corporation is a
professional services firm that designs, builds and maintains
energy and industrial facilities. We provide regulatory,
environmental, engineering, fabrication, installation and
maintenance solutions for clients through stand-alone or integrated
service delivery models. Our design-build capabilities
differentiate Gemini and provide value-added benefits for clients,
such as cost certainty, schedule compression and one point of
accountability. The Corporation's principal target markets are
midstream oil and gas, oil and gas production, in-situ heavy oil,
and oil and gas processing across western Canada.
Shares of Gemini trade on the TSX Venture Exchange under the
symbol "GKX". For more information about the Corporation and its
services, go to www.geminicorp.ca.
Gemini's 2015 third quarter report will be filed on SEDAR at
http://www.sedar.com by November 26,
2015.
CONSOLIDATED
FINANCIAL HIGHLIGHTS
|
|
|
|
Operating
Highlights ($'000)
|
Three Months
Ended
|
Nine Months
Ended
|
Sept
30, 2015
|
Sept
30, 2014
|
Sept
30, 2015
|
Sept
30, 2014
|
Revenue
|
$
|
46,055
|
$
|
33,744
|
$
|
145,279
|
$
|
95,469
|
Gross
profit
|
|
(9,295)
|
|
6,045
|
|
(6,276)
|
|
14,371
|
Income (loss)
before interest & taxes
|
|
(10,503)
|
|
1,793
|
|
(15,988)
|
|
2,420
|
Net (loss)
income
|
$
|
(8,976)
|
$
|
1,253
|
$
|
(13,420)
|
$
|
1,495
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic)
|
$
|
(0.12)
|
$
|
0.02
|
$
|
(0.17)
|
$
|
0.03
|
Earnings per share
(diluted)
|
$
|
(0.12)
|
$
|
0.02
|
$
|
(0.17)
|
$
|
0.02
|
Financial
Position Highlights ($'000)
|
September
30, 2015
|
December
31, 2014
|
Working
capital
|
$
|
9,305
|
$
|
19,635
|
Total
assets
|
|
68,177
|
|
65,342
|
Shareholders'
equity
|
|
17,138
|
|
30,712
|
Disclaimer
This news release may contain
forward looking information that represents Gemini's internal
projections, expectations, estimates or beliefs concerning, among
other things, the timing of any recovery in oil and gas prices,
timing for the completion of the rail loading terminal project, the
extent of the cost overruns and additional unrecoverable costs
relating to the rail loading terminal project, the recovery
of the markets for the Corporation'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", "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.
SOURCE Gemini Corporation