News Column

Gendis Inc. Announces First Quarter Earnings

June 6, 2014

WINNIPEG, MANITOBA--(Marketwired - June 6, 2014) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1st quarter ended April 30, 2014.

Net earnings for the 1st quarter were $2,440,000 ($0.18 per share) compared to net earnings of $1,845,000 ($0.13 per share) for the prior year 1st quarter. Revenue for the 1st quarter was $1,399,000 compared to $1,420,000 for the prior year 1st quarter. Revenue less expense for the 1st quarter was $643,000 compared to $655,000 for the prior year 1st quarter.

The volatility in net earnings quarter over quarter is primarily due to the change in fair value of equity investments and investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

Quarter ended Apr 30 Apr 30 in millions of Canadian dollars except per share 2014 2013 ---------------------------------------------------------------------------- Revenue Lease rental revenue 0.9 0.9 Dividends 0.5 0.5 Total revenue 1.4 1.4 Expense Property 0.4 0.4 Administration & finance 0.4 0.4 Total expense 0.8 0.8 Total revenue less Total expense 0.6 0.6 Fair value change: Veresen 2.7 1.1 Osum - (0.4) Other equity investments (0.4) (0.3) Investment properties - 1.1 Total fair value change 2.3 1.5 Income tax expense 0.5 0.3 Net earnings 2.4 1.8 Earnings per share $ 0.18$ 0.13 Apr 30 Jan 31 Apr 30 in millions of Canadian dollars 2014 2014 2013 ---------------------------------------------------------------------------- Fair value of investments: Veresen 32.4 29.7 26.8 Osum 11.5 11.5 13.2 Other equity investments 3.5 3.7 2.7 Investment properties 30.4 30.4 31.0 Other assets 1.0 1.0 0.7 Debt & payables 3.5 3.3 3.0 Deferred tax payable 1.7 1.2 0.9 Shareholders' equity 73.6 71.8 70.5 Quarter ended Apr 30 Apr 30 in millions of Canadian dollars 2014 2013 ---------------------------------------------------------------------------- Cash flow from: Operations Cash receipts 1.6 1.6 Cash disbursements & finance expense (0.4) (0.7) Income taxes paid (0.2) (0.2) Investing Proceeds on sales of investments - 2.0 Purchase of investments (0.2) - Expenditures on investment properties - (0.1) Expenditures on equipment (0.1) - Financing Increase (decrease) in debt - (2.2) Purchase of share capital for cancellation (0.3) (0.2) Dividends (0.3) (0.3) GENDIS INC. INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION Apr 30 Jan 31 Apr 30 (unaudited - thousands of Canadian dollars) 2014 2014 2013 ---------------------------------------------------------------------------- ASSETS Current assets Cash 62 47 28 Receivables 822 995 638 ---------------------------------------------------------------------------- Total current assets 884 1,042 666 ---------------------------------------------------------------------------- Non-current assets Equity investments (note 2) 47,430 44,927 42,672 Investment property 30,385 30,385 30,985 Furnishings and equipment 138 61 49 ---------------------------------------------------------------------------- Total non-current assets 77,953 75,373 73,706 ---------------------------------------------------------------------------- Total assets 78,837 76,415 74,372 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- LIABILITIES Current liabilities Credit facilities (note 3) 1,599 1,599 1,299 Payables 999 806 719 ---------------------------------------------------------------------------- Total current liabilities 2,598 2,405 2,018 ---------------------------------------------------------------------------- Non-current liabilities Post employment benefit obligation 937 937 972 Deferred income tax payable 1,656 1,231 851 ---------------------------------------------------------------------------- Total non-current liabilities 2,593 2,168 1,823 ---------------------------------------------------------------------------- Total liabilities 5,191 4,573 3,841 ---------------------------------------------------------------------------- SHAREHOLDERS' EQUITY 73,646 71,842 70,531 ---------------------------------------------------------------------------- Total liabilities and shareholders' equity 78,837 76,415 74,372 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GENDIS INC. INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED APRIL 30 quarter ended (unaudited - thousands of Canadian dollars except for share data) 2014 2013 ---------------------------------------------------------------------------- Revenue Lease rentals 899 919 Dividends 500 501 ---------------------------------------------------------------------------- Total revenue 1,399 1,420 ---------------------------------------------------------------------------- Expense Property 372 378 Administration 368 368 Finance 16 19 ---------------------------------------------------------------------------- Total expense 756 765 ---------------------------------------------------------------------------- Total revenue less Total expense 643 655 ---------------------------------------------------------------------------- Fair value change Investment property - 1,144 Equity investments 2,276 371 ---------------------------------------------------------------------------- Total fair value change 2,276 1,515 ---------------------------------------------------------------------------- Earnings before income tax 2,919 2,170 Income tax expense 479 325 ---------------------------------------------------------------------------- Net earnings from operations and comprehensive income 2,440 1,845 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net earnings from operations per share $ 0.18$ 0.13 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

GENDIS INC. INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited - thousands - shares & Retained Canadian dollars as applicable) Share Capital earnings Total # $ $ $ ---------------------------------------------------------------------------- Balance - January 31, 2013 13,816 14,523 54,660 69,183 Comprehensive income 1,845 1,845 Purchase of share capital for cancellation (48) (51) (101) (152) Dividend paid (345) (345) ---------------------------------------------------------------------------- Balance - April 30, 2013 13,768 14,472 56,059 70,531 For the remainder of the year: Comprehensive loss 3,247 3,247 Purchase of share capital for cancellation (287) (302) (611) (913) Dividends paid (1,023) (1,023) ---------------------------------------------------------------------------- Balance - January 31, 2014 13,481 14,170 57,672 71,842 Comprehensive income 2,440 2,440 Purchase of share capital for cancellation (93) (207) (300) Dividend paid (336) (336) ---------------------------------------------------------------------------- Balance - April 30, 2014 14,077 59,569 73,646 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- GENDIS INC. INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIODS ENDED APRIL 30 Quarter ended (unaudited - thousands of Canadian dollars) 2014 2013 ---------------------------------------------------------------------------- Changes in cash position By operations Cash receipts 1,614 1,583 Cash disbursements (425) (678) Income taxes paid (211) (203) Finance expense paid (17) (20) ---------------------------------------------------------------------------- Total by operations 961 682 ---------------------------------------------------------------------------- By investing activities Proceeds from sale of equity investments - 2,037 Acquisition of equity investments (227) - Expenditures on investment property - (66) Expenditures on furnishings and equipment (82) (6) ---------------------------------------------------------------------------- Total by investing activities (309) 1,965 ---------------------------------------------------------------------------- By financing activities Net repayment of credit facilities - (2,199) Purchase of share capital for cancellation (300) (152) Dividend paid (337) (345) ---------------------------------------------------------------------------- Total by financing activities (637) (2,696) ---------------------------------------------------------------------------- Increase (decrease) in cash 15 (49) Cash - beginning of period 47 77 ---------------------------------------------------------------------------- Cash - end of period 62 28 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Gendis Inc. Notes to the unaudited Interim condensed Financial Statements April 30, 2014 (All tabular amounts in thousands of Canadian dollars unless otherwise stated)



1. General information

General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2014, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2014. These policies have been consistently applied to all periods presented.

2. Equity investments

Apr 30 Jan 31 2014 2014 ---------------------------------------------------------------------------- Veresen 32,420 29,740 Osum 11,502 11,502 Other equity investments 3,508 3,685 ---------------------------------------------------------------------------- 47,430 44,927 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



3. Credit facilities

Remaining Borrowing borrowing Carrying value Balance availability of collateral ---------------------------------------------------------------------------- Apr 30 Jan 31 Apr 30 Jan 31 Apr 30 Jan 31 2014 2014 2014 2014 2014 2014 ---------------------------------------------------------------------------- Banker's acceptances 999 1,499 Bank demand loan 600 100 ---------------------------------------------------------------------------- 1,599 1,599 8,400 8,400 30,019 27,538 Broker's margin account - - 1,200 1,101 2,759 2,547 ---------------------------------------------------------------------------- 1,599 1,599 9,600 9,501 32,778 30,085 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------



4. Subsequent Event

On June 6, 2014, the Company declared a regular dividend of 2.5 cents per share to shareholders of record June 20, 2014, payable July 4, 2014.

5. Operating segments

Quarter Ended Inter- Apr 30 Realty Corporate segment Total ---------------------------------------------------------------------------- Revenue 2014 916 728 245 1,399 2013 936 711 (227) 1,420 Property & administration expense 2014 426 385 (71) 740 2013 432 385 (71) 746 Finance expense 2014 174 16 (174) 16 2013 156 19 (156) 19 Total revenue less total expense 2014 316 327 - 643 2013 348 307 - 655 Fair value change 2014 - 2,276 - 2,276 2013 1,144 371 - 1,515 Income tax expense (recovery) 2014 86 393 - 479 2013 403 (78) - 325 Net earnings from operations & Comprehensive income 2014 230 2,210 - 2,440 2013 1,089 756 - 1,845 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Total assets 2014 31,067 69,916 (22,146) 78,837 2013 31,444 63,874 (20,946) 74,372 Total liabilities 2014 24,539 2,798 (22,146) 5,191 2013 22,264 2,523 (20,946) 3,841 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- FOR FURTHER INFORMATION PLEASE CONTACT: Gendis Inc.James E. Cohen President & Chief Executive Officer (204) 474-5200 (204) 474-5201 (FAX) finance@gendis.cawww.gendis.ca Source: Gendis Inc.


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Source: Marketwire (Canada)


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