CALGARY,
April 29, 2016 /CNW/ - Gemini
Corporation (GKX-TSXV) today announced its financial results for
the fiscal year ended December 31,
2015.
Gemini experienced very mixed results in 2015.
Revenue increased 16% to a record $167
million from $144 million in
2014. This was driven principally by the rail loading terminal
project that commenced in September, 2014 and was completed in the
fourth quarter of 2015. The facility has been commissioned and
tested with operating results exceeding the designed performance
targets. Although this project was successful in driving revenue,
there were significant cost overruns on the facility that seriously
impaired profitability.
Gross profit for 2015 was profoundly impacted by
the cost overruns on the rail loading terminal project, which
resulted in negative margins for the Field Solutions segment. The
majority of the excess costs incurred on this project were related
to the site civil work and construction of the facility. Project
commencement was delayed in 2014 and the schedule lengthened into
2015, with winter construction, and other construction challenges
resulting in significant unplanned incremental costs being incurred
in 2015.
The net loss for 2015 was $17.2 million (22¢ per share) compared to the net
earnings of $3.0 million (5¢ per
share) in 2014. The fourth quarter loss was $3.8 million (5¢ per share) compared to net
earnings of $1.5 million (2¢ per
share) in 2014. Non-cash goodwill impairment charges of
$2.3 million for 2015 and
$2.0 million in the fourth quarter
were recognized due to the current challenging market
conditions.
Looking beyond the cost challenges of the rail
loading terminal project, the Corporation's fabrication, field
projects and environmental business units all performed well in
relation to the challenging conditions that existed throughout 2015
in the oil and gas services market. The fabrication operations in
particular, have been engaged to construct modules for some of the
most prominent projects in Alberta
at the present time. Their reputation for quality and on-time
delivery is generating increasing opportunities for this business
unit.
The ongoing decline of commodity prices has
created significant pressure to reduce costs throughout the oil and
gas industry. The Corporation has taken action to align costs to
revenue by reducing staff, pay rates and other variable and fixed
costs. Management is monitoring industry information carefully to
position the organization for success as the market stabilizes and
begins to recover.
"Downsizing has occurred in all aspects of our
business as the drive for efficiency, cost effectiveness and smart
technical and operational solutions for our clients becomes
paramount", stated Gemini's newly appointed President and CEO,
Peter Sametz. "We have excellent
personnel at our Ponoka
fabrication shop, our construction and maintenance group located in
Fort Saskatchewan, and our
environmental and regulatory groups in Calgary and Fort St. John. All of these
units are busy and developing new business in this difficult
environment. We remain optimistic that we will come out of the
current economic downturn stronger, nimbler and more
efficient."
CONSOLIDATED FINANCIAL HIGHLIGHTS
Operating
Highlights ($'000)
|
Three Months
Ended
(Unaudited)
|
Year
Ended
(Audited)
|
Dec 31,
2015
|
Dec 31,
2014
|
Dec 31,
2015
|
Dec 31,
2014
|
Revenue
|
$ 21,278
|
$ 48,460
|
$166,557
|
$143,953
|
Gross
profit
|
4,008
|
7,462
|
(2,267)
|
21,841
|
Income (loss)
before interest & taxes
|
(3,682)
|
2,190
|
(19,669)
|
4,605
|
Net Income
(loss)
|
$ (3,763)
|
$ 1,479
|
$(17,183)
|
$ 2,968
|
|
|
|
|
|
Earnings per share
(basic)
|
$ (0.05)
|
$ 0.02
|
$ (0.22)
|
$ 0.05
|
Earnings per share
(diluted)
|
$ (0.05)
|
$ 0.02
|
$ (0.22)
|
$ 0.04
|
Balance Sheet
Highlights ($'000)
|
December
31, 2015
|
December 31,
2014
|
Working
capital
|
$ 8,943
|
$ 19,635
|
Total
assets
|
44,773
|
65,342
|
Shareholders'
equity
|
13,360
|
30,784
|
About Gemini Corporation
Gemini
Corporation is a professional services firm that provides
engineering, regulatory, fabrication, installation and maintenance
solutions for clients through stand-alone or integrated service
delivery models. For more than 30 years, Gemini has been harnessing
the energy of its staff and clients to power innovation in
conventional and unconventional oil and gas, in-situ heavy oil and
industrial facilities across western Canada. Our integrated design-build project
delivery model differentiates Gemini and provides tremendous
value-added benefits for clients, such as constructability advice
at the design phase, schedule compression and one point of
accountability.
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 annual financial report will be filed with SEDAR at
http://www.sedar.com on April 29,
2016.
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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Gemini Corporation