Gemini Corporation Reports 2008 Third Quarter Results
26 November 2008 - 7:01AM
Marketwired Canada
Gemini Corporation (TSX VENTURE:GKX) today announced its third quarter financial
results for the period ended September 30, 2008.
Revenue in the third quarter totalled $20,810,000, a 5% increase over the
$19,780,000 achieved in the third quarter of 2007. Revenues to date for 2008
total $59,383,000 compared to $50,472,000 last year, which is an 18% increase
year over year. The Corporation's strong backlog of work is providing the
foundation for these revenue gains. Engineering revenues have regained some
momentum and are expected to continue improving into 2009. Field Services is
expected to slow somewhat as existing projects are completed and our operations
transition onto new projects over the coming quarters.
The current economic uncertainty is presenting some challenges for determining
which projects will proceed in 2009 and when they will commence, but most
clients are continuing to indicate reasonably solid activity levels going
forward. The emphasis on longer-term project opportunities is providing a
greater degree of stability to the revenues and there are numerous projects in
the planning phases within both segments that are expected to proceed. The
Corporation is continuing to recruit personnel in its Engineering segment to
support client project requirements into 2009.
Third quarter gross profits for 2008 were $4.1 million compared to the $3.8
million achieved in the same period last year. This brings year to date gross
profits to $10.9 million for 2008 compared to $10.3 million in 2007. Gross
profits are continuing to improve as utilization rates within Engineering return
to traditional levels and as additional project management improvements are
instituted within Field Services.
Net earnings for the third quarter of 2008 were $556,000 (1.5 cents per share)
or 34% higher than the net earnings of $415,000 (1.1 cents per share) for the
same quarter last year. This improves the Corporation's year to date net
earnings to more than $1 million greater than the same period in 2007. This
trend is expected to continue into the fourth quarter and result in higher
annual earnings for 2008 compared to 2007.
"We have made some solid operational progress so far in 2008", said Carl
Johnson, Gemini's President and CEO. "Our challenge now is to ensure that the
current economic turmoil does not throw us off track from the path we have been
able to establish. Remaining focussed on the execution of our strategy will be
key to our success as we navigate through the uncertainty ahead."
About Gemini Corporation
Gemini Corporation offers a wide range of interrelated services including
engineering, fabrication, construction, operations and maintenance of oil & gas
and industrial facilities within Canada and internationally. The Corporation is
a leading provider of engineered solutions and field services through either
stand-alone or integrated, full-service approaches to a broadening client base
in an array of industry sectors.
Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For
more information about the Corporation and its services, go to
www.geminicorp.ab.ca.
Gemini's 2008 third quarter report will be filed with SEDAR at
http://www.sedar.com by November 26, 2008.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
Operating Highlights ($'000) 2008 2007 2008 2007
Revenue $ 20,810 $ 19,780 $ 59,383 $ 50,472
Gross profit 4,094 3,814 10,923 10,250
Earnings before interest & taxes 955 830 1,532 154
Net earnings (loss) 556 415 774 (267)
Earnings per share (basic) $ 0.015 $ 0.011 $ 0.021 $ (0.009)
Earnings per share (diluted) $ 0.015 $ 0.011 $ 0.021 $ (0.009)
Operating cash flow (1) $ 924 $ 1,071 $ 1,678 $ 1,047
(excludes working capital
changes)
Operating cash flow per share $ 0.027 $ 0.031 $ 0.048 $ 0.030
Balance Sheet Highlights ($'000) September 30, December 31,
2008 2007
Working capital $ 9,202 $ 7,839
Total assets 33,060 26,739
Shareholders' equity 14,057 12,900
(1) Operating cash flow is a non-GAAP financial measure which does not have
a standard meaning and therefore may not be comparable to similar
measures presented by other companies.
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.
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