WINNIPEG, MANITOBA — (Marketwire) — 04/13/12 — Gendis Inc. (TSX: GDS) today announced its financial results for the 4th quarter and fiscal year ended January 31, 2012.
Revenue for the 4th quarter was $1.4-million compared to $1.6-million for last year–s 4th quarter. Revenue for the year was $5.9-million compared to $5.7-million last year.
Net earnings for the 4th quarter were $17.8-million compared to $1.3-million for last year–s 4th quarter. The increase in earnings is due to the settlement with the Canada Revenue Agency on a long outstanding tax matter and the fair value increase in the investment in OSUM based on OSUM–s recent equity financing.
Net earnings for the year were $17.1-million compared to $10.7-million last year. The increase in earnings is primarily due to the settlement with the Canada Revenue Agency.
“As we move forward into fiscal 2013, we do so with much confidence in our solid and growing investment portfolio, which is designed to capitalize on the continuing rise in global living standards and the ever-increasing demands for energy and improving nutrition and diet,” commented Gendis President & Chief Executive Officer, James E. Cohen. “Already during this first quarter, we have strengthened our investment portfolio and enhanced our position in the Western Canadian energy sector with a new $2 million investment (for 1 million shares), in Calgary-based Oak Point Energy Ltd.
“Oak Point is the only junior oil sands developer with a project in the –majors-dominated– Northern Athabasca oil sands region of Northeast Alberta,” he added.
A private company, Oak Point Energy has secured rights to over 63,000 gross acres (99 sections) of Tier 1 oil sands land in the Athabasca region of northeast Alberta. Their lands include the Lewis Steepbank, Lewis Southwest, Chelsea River, Great Divide and Duncan.
Oak Point Energy has several proprietary designs and patents pending on modular facilities related to more environmentally sensitive and cost efficient means of extracting oil resources.
“We are delighted to have secured a strong investment position in a company that combines access to exceptional oil resources with a unique, proprietary, highly efficient modular, portable Steam Assisted Gravity Drainage (SAGD) technology,” Mr. Cohen stated.
Oak Point–s SAGD facility design will be deployed throughout its operations, with the first installation at Lewis Steepbank in operation by summer of 2013.
“This new investment complements Gendis– energy, infrastructure and pipeline investments held through our ownership of shares in Veresen Inc. and OSUM Oilsands Corp.,” Mr. Cohen added. “Gendis also has a 100% leased commercial real estate portfolio and we have recently made, and will continue to make, investments in the global agri-foods sector through purchases in publicly traded marketable securities as buying opportunities are identified.”
“We are confident that our focus on energy and agri-foods, along with the commercial real estate sector will serve us well both now, and well into the future,” he concluded.
Condensed summarized information is as follows:
Gendis Inc. has applied International Financial Reporting Standards (–IFRS–) for the quarters ended January 31, 2012 and 2011, and has retrospectively applied those standards to all prior year periods. Applying those standards has resulted in an increase in volatility to reported earnings, primarily from fair value changes to the Company–s investments in equity securities and real estate. The Company reported net earnings of $2.6-million ($0.18 per share) in the prior year 4th quarter and has restated net earnings to $1.3- million ($0.09 per share) under IFRS for the prior year 4th quarter. Similarly, The Company reported annual net earnings of $0.5-million ($0.03 per share) for the prior year and has restated net earnings to $10.7-million ($0.77 per share) under IFRS for the prior year.
1. Significant Accounting Policies and Basis of Presentation
These unaudited condensed interim financial statements are prepared in accordance with International Financial Reporting Standards (–IFRS–) as issued by the International Accounting Standards Board using the accounting standards expected to be effective at January 31, 2012. These condensed interim financial statements do not contain all the disclosures that would be required under generally accepted accounting principles for a comprehensive set of financial statements.
These condensed interim financial statements are presented in Canadian dollars, which is the Company–s functional and presentation currency. The condensed consolidated interim financial statements for the quarter ended January 31, 2012 have been reviewed by the Company–s Audit Committee on April 13, 2012. The condensed consolidated interim financial statements for the quarter ended January 31, 2012 have not been audited or reviewed by the Company–s independent Auditors.
2. Investments
3. Credit facilities
4. Recovery of Income Tax
During the 4th quarter ended January 31, 2012, the Company reached a settlement with the Canada Revenue Agency of its tax case involving the sale of the Company–s shares in Sony of Canada Ltd in 1995. The Company received $11.2-million. The settlement represents a refund of 25% of the tax and arrears interest paid in 2001 on re assessment, plus interest from 2001 to the refund date.
5. Operating segments
The segment information provided to the CEO for the reportable segments is as follows:
Contacts:
Gendis Inc.
James E. Cohen
President & Chief Executive Officer
(204)474-5200
(204)474-5201 (FAX)