CALGARY, May 25, 2016 /CNW/ - Gemini Corporation
(GKX-TSXV) announces its first quarter financial results for the
period ended March 31, 2016.
Revenue in the first quarter of 2016 totalled $31 million, which was a 25% decrease from the
$41 million achieved in the first
quarter of 2015. Module fabrication work related to Alberta's Northwest Upgrader and Fort Hills
projects were the primary contributors to this first quarter
activity within the Corporation's Field Solutions segment. Spending
constraints in the current low commodity price environment are
continuing to create a highly competitive market.
First quarter gross profit for 2016 was $2.3 million compared to $2.7 million in the same period last year. This
reduction was influenced by the compressed margins being earned on
fabrication and field work as a result of the current market
conditions. The low level of activity in the first quarter
experienced in both the engineering and environmental business
units had a negative effect on utilization rates. Staff reductions
combined with variable and fixed cost alterations continued through
the quarter to better align costs to expected revenue levels.
The Corporation's 2016 first quarter net loss was $1.5 million (2¢ per share) compared to a net
loss of $1.8 million (2¢ per share)
in the same period last year.
"In the first quarter we continued to reduce costs and
restructure our organization to stabilize Gemini's business in the
current market environment," stated Peter
Sametz, Gemini's President and CEO. "We are adjusting our
structure and implementing process improvements that will enable
Gemini to improve margins and overall business performance in the
months ahead while focusing on our existing clients and new
business opportunities."
About Gemini Corporation
Gemini Corporation is a
professional services firm that designs, builds and maintains
energy and industrial facilities. We provide regulatory,
environmental, engineering, fabrication, installation and
maintenance solutions for clients through stand-alone or integrated
service delivery models. Our design-build capabilities
differentiate Gemini and provide tremendous value-added benefits
for clients, such as cost certainty, schedule compression and one
point of accountability. The Corporation's principal target markets
are midstream oil and gas, oil and gas production, in-situ heavy
oil, and oil and gas processing across western Canada.
Shares of Gemini trade on the TSX Venture Exchange under the
symbol "GKX". For more information about the Corporation and its
services, go to www.geminicorp.ca.
Gemini's 2016 first-quarter report will be filed on SEDAR at
http://www.sedar.com by May 26,
2016.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Operating
Highlights ($'000)
|
Three Months
Ended
(Unaudited)
|
March
31,
2016
|
March
31,
2015
|
Revenue
|
$
|
30,821
|
$
|
40,894
|
Gross
profit
|
2,278
|
2,694
|
Income (loss) from
operating activities
|
(1,207)
|
(2,160)
|
Net income
(loss)
|
$
|
(1,454)
|
$
|
(1,767)
|
|
|
|
Earnings per share
(basic & diluted)
|
$
|
(0.02)
|
$
|
(0.02)
|
Financial
Position Highlights ($'000)
|
March
31,
2016
|
December
31,
2015
|
Working
capital
|
$
|
6,528
|
$
|
8,943
|
Total
assets
|
53,086
|
44,773
|
Shareholders'
equity
|
11,799
|
13,246
|
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.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Gemini Corporation