Gemini Corporation reports 2016 third quarter results

CALGARY, Nov. 22, 2016 /CNW/ - Gemini Corporation (GKX-TSXV) announced today the financial and operating results for the three and nine months ended September 30, 2016. All financial figures are expressed in Canadian dollars.

The third quarter 2016 adjusted EBITDA was $3.6 million on revenue of $22.1 million, compared to a loss of $12.8 million on revenue of $46.1 million in the same quarter last year. Although revenue was down significantly compared to the same period last year, the Company was able to execute its projects safely, on time and on budget for its clients. The majority of revenue during the quarter came from the completion of the large module programs performed at the Ponoka fabrication facility. Project delivery by our construction and maintenance teams in the Heartland area has continued to deliver excellent client service and work quality. Our Environmental Solutions team has seen a slow but steady pick up in work volume and client activity this quarter compared to the second quarter of 2016.

"We are encouraged by the effort our team has put in this quarter to generate positive operating cash flows," said Pete Sametz, Gemini's President and CEO. "However, we still continue to face marketplace challenges as we pursue additional backlog for 2017 with new and existing clients. It has been difficult to determine a successful market price in the current 'race to the bottom' pricing environment. Our focus remains on creating value for our clients by providing an integrated approach ensuring that safety and quality are not sacrificed in our delivery, and we will continue to pursue this with unwavering enthusiasm and passion."

During the quarter, the Company generated operating cash flows of $4.7 million which resulted in the repayment of $4.4 million on the bank operating line. The bank operating line at September 30, 2016 was $2.4 million, down from $6.8 million at June 30, 2016.

Third quarter gross profit for 2016 was $6.3 million compared to a $9.3 million loss in the same period of 2015. We expect revenue for the remainder of 2016 to track well below the levels achieved in 2015 as a result of the completion of the major rail loading terminal project last year and reduced activity in the oil and gas sector. It is anticipated that margins will remain compressed well into 2017 until there is a reduction in the service industry capacity or a sustained improvement in commodity prices.

Gemini reported a non-cash impairment of $3.2 million in the third quarter as a result of impairment in the Environmental Solutions segment and adjustments to the remaining useful lives of certain corporate assets.


Three Months Ended
September 30

Nine Months Ended
September 30










Gross profit (loss)





Net loss





Net loss per share - basic and diluted





Adjusted EBITDA (1)





September 30

December 31

Total assets



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Working capital (1)



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(1) Non-IFRS financial measure



The 2016 Q3 Management's Discussion and Analysis, and the Condensed Consolidated Interim Financial Statements provide a detailed explanation of Gemini's operating results for the three and nine months ended September 30, 2016. These documents are available online at and SEDAR immediately after the results are released by newswire under Gemini's profile at


This news release may contain forward looking information that represents Gemini's 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" and similar expressions. The 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. Gemini does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

This news release refers to certain Non-IFRS financial measures that are not determined in accordance with International Financial Reporting Standards ("IFRS"). The measures used are "backlog", "working capital" and "adjusted EBITDA". These measures are used by our management to assist in making operating decisions and assessing performance. While we calculate these measures consistently from period to period, they likely will not be directly comparable to similar measures used by other companies because they do not have standardized meanings prescribed by IFRS. See the "Non-IFRS Measures" section of the September 30, 2016 MD&A. Investors are encouraged to evaluate each adjustment and the reasons Gemini considers it appropriate for supplemental analysis. Investors are cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indication of Gemini's performance. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.


Gemini, through its subsidiaries, operates as an integrated project solutions company focused on energy and industrial facilities. Gemini offers services on either a stand-alone basis or in a combination, integrated to provide our clients with a single point of accountability. The Company will be celebrating its 35th anniversary in 2017.

Through an all-in commitment from every individual in the Company, Gemini is determined to change the client perspective of how project services should be delivered. The Company is uniquely qualified to provide a full spectrum of modular and integrated project solutions, leveraging a philosophy and approach that directly aligns with its clients' business objectives.

The Company is capable of servicing its clients through the full life cycle of their assets; from asset acquisition, environmental and regulatory support, engineering, fabrication construction, maintenance, turnarounds, de-commissioning, reclamation and remediation. Gemini provides full project management to integrate any or all of these services. The Company's principal target markets are oil and gas, heavy oil, oil sands, midstream and pipeline facilities, hydrocarbon processing, power and other industrials.

The Company operates in western Canada and is headquartered in Calgary with offices in Ponoka, Fort Saskatchewan and Fort St. John. Services and products are delivered through three business segments: Field Solutions, Engineered Solutions and Environmental Solutions.

Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For more information about the Company and its services, go to

Gemini's 2016 third quarter report will be filed on SEDAR at by November 22, 2016.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Gemini Corporation

For further information: Pete Sametz, President & CEO, (403) 781-9881,; Chris Podolsky, CFO, (403) 301-4252,


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