WINNIPEG, MANITOBA — (Marketwire) — 06/08/12 — Gendis Inc. (TSX: GDS) today announced its financial results for the 1st quarter ended April 30, 2012.
Revenue for the 1st quarter was $1,513,000 compared to $1,638,000 for last year–s 1st quarter. Net earnings for the 1st quarter were $227,000 ($0.02 per share) compared to a loss of $261,000 ($0.02 per share) for last year–s 1st quarter. The increase in earnings is primarily due to the reduction in fair value declines for investment properties quarter over quarter. Lease rental revenue and recoverable property expenses have declined marginally quarter over quarter. Investment income is even with the prior year quarter.
1.0 General information
General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial report for the year ended January 31, 2012. The principal accounting policies applied in the preparation of these condensed interim financial statements are the same as set out in Note 2 to the complete audited annual financial report for the year ended January 31, 2012. These policies have been consistently applied to all periods presented.
2.0 Equity investments
3.0 Investment property
The Company–s investment properties were valued at January 31, 2012 by independent professionally qualified appraisers. The Company–s investment properties were valued at April 30, 2012 and April 2011 by the Company–s in- house valuation model.
4.0 Credit facilities
The credit facility provides for a borrowing capacity of 70% of the market value of marketable securities, namely Veresen, lodged as collateral. The credit facility expires on July 31, 2012.
5.0 Deferred income tax payable
6.0 Operating segments
The segment information provided to the CEO for the reportable segments is as follows:
7.0 Subsequent Events
Subsequent to the quarter ended April 30, 2012, the Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company. The Company expects to receive approximately $1.5-million during the quarter ending July 31, 2012.
On June 8, 2012, the Company declared a regular dividend of $0.025 per share to shareholders of record June 22, 2012, payable July 6, 2012.
Contacts:
Gendis Inc.
James E. Cohen
President & Chief Executive Officer
(204) 474-5200
(204) 474-5201 (FAX)