CALGARY, Aug. 31, 2016 /CNW/ - Gemini Corporation
("Gemini" or the "Company") announces its financial results for the
second quarter and first six months of 2016.
Revenue in the second quarter of 2016 totalled $29.2 million which was a 50% decrease from the
$58.3 million achieved in the second
quarter of 2015. The decrease is due to the completion of the rail
loading facility contract which generated significant revenue in
2015. Gemini's year to date revenue of $60.1
million was principally achieved through two fabrication
contracts as compared to revenue of $99.2
million for the same period last year. Workloads across
Gemini's segments remain subdued with the lack of activity in the
oil and gas sector. Although oil and gas market uncertainties and
excess capacity in the engineering and construction industries have
negatively impacted revenue in the first half of 2016, Gemini is
actively pursuing new business in other industrial sectors.
Second quarter gross profit for 2016 was $2.9 million (10% margin) compared to
$0.3 million (1% margin) in the same
period of 2015. Year to date gross profit was $5.2 million (9% margin) versus $3.0 million (3% margin) in the first six months
of 2015. Despite the improvement in gross profits over last year,
margins remain low relative to historic levels as oil and gas
producers press service providers to lower prices in a highly
competitive market.
Gemini's 2016 second quarter adjusted EBITDA was a loss of
$0.8 million compared to a loss of
$3.0 million in the second quarter of
2015. Adjusted EBITDA for the six months ended June 30, 2016 was a loss of $1.6 million compared to a loss of $4.0 million for the same period of 2015.
"2016 has proven to be one of the toughest years for the oil and
gas markets" stated Pete Sametz,
Gemini's President and CEO. "While this translates into far fewer
project opportunities and significantly increased competition on
pricing, we have made great improvements to our processes and
systems to allow us to compete in a changed market. In our
Ponoka fabrication and module
assembly facility, we have enjoyed another year of breaking our
internal records. This includes delivering the largest module we
have ever assembled and shipped; assembling the most modules
standing at once (43) and attaining a peak of 453 personnel
on-site. We are extremely proud of the teams we have across the
business working on our backlog; these people have taken our client
service and project delivery to new levels, resulting in positive
client feedback and recognition" says Mr. Sametz. "This feedback is
significant considering where Gemini was less than a year ago and
it is a tribute to our project teams working hard, communicating
and executing expertly for our clients."
About Gemini
Gemini is an integrated project construction company focused on
energy and industrial facilities. Founded in 1982, Gemini offers
services on either a stand-alone basis or a combination, integrated
to provide our clients with a single point of accountability.
Gemini is capable of servicing our clients through the full life
cycle of their assets; from asset acquisition, regulatory support,
engineering, fabrication construction, maintenance, turnarounds,
de-commissioning, reclamation and remediation. Gemini provides full
project management to integrate any or all these services. The
Company's principal target markets are midstream oil and gas, heavy
oil, oil sands, oil and gas production and processing, power and
other industrials.
The Company operates in Western
Canada and is headquartered in Calgary, Alberta with offices in Ponoka, Fort
Saskatchewan and Fort St. John,
BC. The Ponoka facility is
a 50 acre site suited to delivering approximately 240 modules/year
(capable of standing 100 modules), fabrication capability to
produce over 3,000 tonnes/year and over 650,000 diameter inches of
pipe welding annually. This facility also houses a paint booth
capable of handling a full size Alberta module on trailer for blasting and
various coatings including paint and fireproofing. The Fort Saskatchewan facility is capable of
producing an additional 30 modules per year on its 3.5 acre site.
From the Fort St. John office, our
environmental group is able to offer field services throughout
northeast British Columbia and
northwest Alberta.
CONSOLIDATED FINANCIAL HIGHLIGHTS
($'000 except per share data)
Operating Highlights
|
Three months
ended
|
|
Six months
ended
|
|
June 30,
2016
|
June 30,
2015
|
|
June 30,
2016
|
June 30,
2015
|
Revenue
|
$
|
29,242
|
$
|
58,330
|
|
$
|
60,063
|
$
|
99,224
|
Gross
profit
|
2,942
|
324
|
|
5,220
|
3,018
|
Loss from operating
activities
|
(1,697)
|
(3,325)
|
|
(2,904)
|
(5,485)
|
Net Loss
|
(1,865)
|
(2,677)
|
|
(3,319)
|
(4,444)
|
|
per share - basic and
diluted
|
(0.02)
|
(0.03)
|
|
(0.04)
|
(0.06)
|
Adjusted
EBITDA
|
(779)
|
(2,983)
|
|
(1,620)
|
(3,997)
|
Financial Position Highlights
|
June 30,
2016
|
|
December 31,
2015
|
Working
capital
|
$
|
5,022
|
|
$
|
8,943
|
Total
assets
|
43,471
|
|
44,773
|
Total
equity
|
10,009
|
|
13,246
|
These financial results are presented in conformance with
International Financial Reporting Standards ("IFRS"). All figures
are in Canadian dollars unless otherwise noted. Certain financial
and operational measures referred to in this press release,
including "adjusted EBITDA" and "working capital", are not
prescribed measures under IFRS. For a description of these
measures, see the "Non-IFRS Measures" section in Gemini's
June 30, 2016 Management's Discussion
& Analysis.
Disclaimer
This news release may contain forward looking information
that represents Gemini's internal projections, expectations,
estimates or beliefs concerning, among other things, the timing of
any recovery in oil and gas prices, the recovery of the markets for
the Company's products and services, 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 Company
does not undertake to update any forward-looking information in
this document whether as to new information, future events or
otherwise.
Shares of Gemini trade on the TSX Venture Exchange under the
symbol "GKX". For more information about Gemini and its services,
go to www.geminicorp.ca.
Gemini's 2016 second quarter report will be filed on SEDAR at
http://www.sedar.com by August 31,
2016.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE Gemini Corporation