Gemini Corporation reports 2016 first quarter results

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

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