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A leading provider of engineered solutions and field services
Message: Reports 2009 First Quarter Results
| May 21, 2009 | |
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Gemini Corporation Reports 2009 First Quarter Results
Modest profitability achieved in uncertain market conditions |
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CALGARY, ALBERTA--(Marketwire - May 21, 2009) - Gemini Corporation (TSX VENTURE:GKX) announces its first quarter financial results for the period ended March 31, 2009. Revenue in the first quarter totalled $14,795,000, which is a 21% decrease from the $18,721,000 achieved in the first quarter of 2008. This reduction was attributable to the significant decline in new construction activity in the oil and gas sector, which heavily impacted the Corporation's Field Services segment. Revenues for this segment were off 46% from the prior year, but improvements are expected in the second quarter and beyond based upon recent project awards. There has been relative strength in the market for maintenance, debottlenecking and upgrade projects producing reasonably solid results for these business units. In addition, the Engineering segment had a very strong quarter with a 56% increase in revenues to $7,253,000, thus exceeding the $4,651,000 achieved in the same period last year. Revenues for this segment are expected to moderate in the second quarter before strengthening again as the year draws to a close. First quarter gross profits for 2009 were $3,601,000 or 24.3% of revenue compared to $3,450,000 or 18.4% of revenue in the same period last year. This improvement was the direct result of greater staff utilization rates within Engineering driven by improved management of resources and significantly higher activity levels. By contrast, the Field Services segment's dramatic reduction in revenues coupled with pressures to reduce margins resulted in gross profit declines of more than 50%. Gross profits for this segment are expected to strengthen as revenues increase through the second and third quarters. "The results we achieved in the first quarter were in line with our expectations for 2009", said Carl Johnson, Gemini's President and CEO. "The general economic uncertainty coupled with lower commodity prices is expected to make 2009 an unpredictable year. Client confidence in the market is presently low and they are being very cautious with their project plans, resulting in a much more competitive environment for all service providers. We are maintaining a high degree of client contact and continuing to bid on a large number of projects that should maintain or strengthen revenues as the year unfolds." About Gemini Corporation Gemini Corporation offers a wide range of interrelated services including project management, engineering, fabrication, construction, and maintenance of oil & gas and industrial facilities within Canada and internationally. The Corporation is a leading provider of engineered solutions and field services through either stand-alone or integrated service approaches to a broadening client base in an array of industry sectors. The Corporation's principal target markets are conventional oil and gas, unconventional gas, heavy oil, industrial, and renewable energy. 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.ab.ca. Gemini's 2009 first-quarter report will be filed with SEDAR at http://www.sedar.com by May 22, 2009. CONSOLIDATED FINANCIAL HIGHLIGHTS
Three Months Ended
Operating Highlights ($'000) March 31, March 31,
2009 2008
Revenue $ 14,795 $ 18,721
Gross profit 3,601 3,450
Earnings before interest & taxes 199 212
Net earnings 97 8
Earnings per share (basic) $ 0.002 $ 0.000
Earnings per share (diluted) $ 0.002 $ 0.000
Operating cash flow (i)
(excludes working capital changes) $ 402 $ 479
Operating cash flow per share (i) $ 0.012 $ 0.014
Balance Sheet Highlights ($'000) March 31, December 31,
2009 2008
Working capital $ 12,535 $ 12,403
Total assets 25,797 28,554
Shareholders' equity 16,329 16,180
(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.
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