Gemini Corporation Reports Fiscal 2010 Results
25 March 2011 - 8:52AM
Marketwired Canada
Gemini Corporation (TSX VENTURE:GKX) today announced its financial results for
the fiscal year ended December 31, 2010.
Revenue for 2010 totalled $73 million compared to the $75 million achieved in
2009. Fourth quarter revenue for 2010 declined 25% to $16 million from $21
million in the same period last year. This reduction was principally due to
delays in the commencement of projects planned for that quarter. Client planning
issues and cautious spending practices under the current market conditions lead
to some of the work being delayed into 2011. The Corporation's current backlog
has increased and client indications are for stronger activity in 2011, although
the ultimate timing of the work remains uncertain and therefore first quarter
revenues will continue to be weak.
Operating performance through the first three quarters of 2010 was on track with
revenue growing and profitability increasing as a result of stringent cost
control measures and improving utilization rates. Unfortunately, this all
changed in the fourth quarter with the significant decline in revenue and the
requirement to retain staff in anticipation of projects commencing prior to year
end. In addition, a lump-sum project undertaken for a major client in December
ran into cost challenges in the first quarter of 2011, thus requiring the
$400,000 loss on the project to be recognized in the 2010 year end results. The
net effect was a loss of $666,000 (1.9 cents per share) for 2010 compared to a
loss of $127,000 (0.4 cents per share) for 2009.
"The fourth quarter decline in revenue and resulting loss seriously overshadowed
what had been a promising improvement in operating results to the end of the
third quarter", said Doug Lautermilch, Gemini's President and CEO. "A great deal
of work has gone into lowering Gemini's fixed cost structure and repositioning
the company for an economic recovery. Our entire organization feels the
frustration and disappointment with the fourth quarter results and they are
certainly not a reflection of the effort and dedication put forward throughout
2010. Focussing on our core competencies and marketing them to clients is
helping to build our backlog of work sufficiently to return to profitability as
the 2011 year progresses."
About Gemini Corporation
Gemini Corporation offers a wide range of interrelated services including
project management, engineering, fabrication, construction, and maintenance of
oil & gas and industrial facilities within Canada and internationally. The
Corporation is a leading provider of engineered solutions and field services
through either stand-alone or integrated service approaches to clients in the
energy and industrial sectors. The Corporation's principal target markets are
conventional oil and gas, unconventional gas, heavy oil, heavy industrial,
power, and renewable energy.
Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For
more information about the Corporation and its services, go to
www.geminicorp.ca.
Gemini's 2010 annual report will be filed with SEDAR at www.sedar.com by March
25, 2011.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Operating Highlights Three Months Ended Year Ended
($'000) (Unaudited) (Audited)
Dec 31, Dec 31, Dec 31, Dec 31,
2010 2009 2010 2009
Revenue $ 15,684 $ 20,895 $ 72,882 $ 74,908
Gross profit 1,477 3,026 13,833 14,811
(Loss) earnings before
interest & taxes (2,103) 577 (613) 180
Net loss (1,545) (499) (666) (127)
Earnings per share
(basic) $ (0.044) $ (0.014) $ (0.019) $ (0.004)
Earnings per share
(diluted) $ (0.044) $ (0.014) $ (0.019) $ (0.004)
Operating cash flow (i)
(excludes working
capital changes) $ (1,285) $ (143) $ 432 $ 1,332
Operating cash flow per
share $ (0.037) $ (0.004) $ 0.012 $ 0.038
December 31, December 31,
Balance Sheet Highlights ($'000) 2010 2009
Working capital $ 8,908 $ 11,793
Total assets 22,943 32,873
Shareholders' equity 14,671 15,162
(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 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.
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