Gemini Corporation Reports Fiscal 2011 Results

Gemini Corporation (TSX VENTURE:GKX) today announced its financial results for
the fiscal year ended December 31, 2011.


Revenue in the fourth quarter of 2011 was $18,673,000; a 19% increase from the
$15,684,000 achieved in the same period last year. This resulted in the 2011
revenue totalling $64,102,000, which is 12% below the 2010 level. The slower
than expected activity experienced in the first half of the year accounted for
the majority of the shortfall in year over year revenue. This lag in activity
was most pronounced for the Field Solutions business unit, wherein field
construction project awards fell far short of expectations. Efforts were stepped
up throughout the year to expand the Corporation's workload within its
engineering, maintenance and fabrication operations. The revenue growth achieved
in the second half of the year from these operations was driven by strengthening
market conditions and focussed key client business development initiatives. The
Corporation's current backlog of work has increased significantly and client
activity continues to support improved results for 2012.


Fourth quarter gross profit for 2011 was $2,904,000 compared to $1,508,000 for
the same period in 2010. Notwithstanding the improvement for the quarter, gross
profit for the year finished 17% lower at $11,526,000 compared to the
$13,963,000 achieved in 2010. Margin compression was experienced throughout the
year as labour cost escalation for both trades and professionals worked its way
into the market. In addition, reaching optimum utilization rates has been a
challenge at times due to the variability of work flow, especially in the first
half of the year, resulting in lower productivity and higher costs. Finally,
certain project management challenges experienced and resolved in the fourth
quarter negatively impacted margins. Administrative expenses were reduced more
than 5% in 2011, but this was not sufficient to offset the gross profit
reductions accumulated through the year.


The fourth quarter net loss was $430,000 (1.2 cents per share), which compared
favourably to the net loss of $1,545,000 incurred for the same period in 2010.
Unfortunately, the Corporation was unable to recover from the substantial loss
incurred in the first quarter of 2011 and finished the year with an overall net
loss of $1,700,000 (4.9 cents per share) compared to the net loss of $649,000
(1.9 cents per share) recognized in 2010.


"2011 was a very challenging year, but the encouraging part is that our backlog
of work is growing and we are in a position to put the losses behind us",
commented Doug Lautermilch, Gemini's President and CEO. "Our business
development initiatives and process enhancements directed at carefully managing
utilization and costs should position Gemini for a return to profitability as
early as the first quarter of 2012. In addition, our focus on securing
reimbursable work instead of pursuing lump sum projects should reduce the
associated financial risks."


About Gemini Corporation

Gemini Corporation is a professional services firm that designs, builds and
maintains energy and industrial facilities. Founded in 1982, Gemini provides
services on either a standalone basis or by combining engineering and field
service capabilities to increase project efficiency and provide a single point
of accountability. The Corporation's principal target markets are conventional
and unconventional oil and gas, in-situ heavy oil, and heavy industrial
facilities. 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 2011 annual financial report will be filed with SEDAR at
http://www.sedar.com on or before March 30, 2012.


CONSOLIDATED FINANCIAL HIGHLIGHTS



                               Three Months Ended          Year Ended       
                                  (Unaudited)               (Audited)       
                                                                            
                                Dec 31,     Dec 31,     Dec 31,     Dec 31, 
Operating Highlights ($'000)       2011        2010        2011        2010 
                                                                            
Revenue                       $  18,673   $  15,684   $  64,102   $  72,882 
Gross profit                      2,904       1,508      11,526      13,963 
Loss before interest & taxes       (419)     (2,094)     (1,991)       (569)
Net loss                      $    (430)     (1,545)  $  (1,700)       (649)
                                                                            
Earnings per share (basic &                                                 
 diluted)                     $  (0.012)  $  (0.044)  $  (0.049)  $  (0.019)
                                                                            
Operating cash flow (i)                                                     
 (excludes working capital                                                  
 changes)                     $    (160)  $  (1,781)  $    (996)  $     682 
Operating cash flow per                                                     
 share                        $  (0.005)  $  (0.051)  $  (0.028)  $   0.019 
                                                                            
                                                                            
Balance Sheet Highlights ($'000)      December 31, 2011    December 31, 2010
                                                                            
Working capital                              $    7,119           $    8,802
Total assets                                     28,585               23,246
Shareholders' equity                             13,069               14,661



(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 quarterly news releases to indicate the amount of
cash generated for operating purposes during the period.


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.