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Nov 28, 2018, 20:14 ET
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CALGARY , Nov. 28, 2018 /CNW/ – Gemini Corporation (GKX-TSXV) (“Gemini” or the “Company”) today reported its financial results for the three and nine months ended September 30, 2018 . All financial figures are voiced te Canadian dollars.
“The business environment te Película del Oeste Canada remains challenged which is having an ongoing influence on gross profit margin”, said Chris Podolsky , Gemini’s CFO.
“Ter order to terugwedstrijd the Company to profitability ter 2018, the decision has bot made to instantaneously inject into a corporate restructuring process. This restructuring will include switches to the executive leadership team and significant reductions te personnel resulting te a $6.0 million annual reduction te overhead costs. The restructuring is driven by a switch ter strategic direction ter Alberta to enhance our concentrate on our field operations business, comprised of fabrication, construction and maintenance. Our Fort St John, BC environmental office will proceed to operate spil a profitable stand-alone location. On November 28, 2018 , our Lender amended the financial covenants until March 31, 2018 to reflect the fresh project waterput forward by Gemini, and has committed to working with management to implement a fresh covenant package after that date that will reflect the fresh state of the Company.”
For more information about thesis developments, please see today’s press release entitled “Gemini Restructures Leadership and Operations”.
Three months ended
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Nine months ended
Nipt loss vanaf share – basic and diluted
Adjusted EBITDA (1)
Working hacienda (1)
Working renta ratio (1)
Tangible netwerken worth (1)
Total liabilities to equity ratio
Non-IFRS financial measure
THIRD QUARTER 2018 HIGHLIGHTS
- $12 million ter extra work wasgoed awarded to Gemini ter the third quarter from fresh and existing clients,
- $26.Four million revenue backlog spil at September 30, 2018 . The majority of this backlog will be converted into revenue te the fourth quarter of 2018 and the very first quarter of 2018,
- Revenue for the quarter declined 34% or $7.Five million to $14.6 million compared with the same period te 2018 due to the continued challenging market conditions,
- Administrative expenses for the quarter decreased 26% or $0.9 million to $Two.6 million compared with the same period ter 2018 due to savings realized through ongoing cost containment efforts begun ter 2018,
- Adjusted EBITDA for the quarter wasgoed a loss of $Two.Four million due to a decrease te revenue that outpaced our cost containment efforts,
- Netwerk Loss for the quarter wasgoed $Three.Two million compared with a netwerken loss of $1.Two million for the same period ter 2018,
- Specie used ter operations wasgoed $6.Two million for the quarter. By comparison, Gemini’s operations provided $Four.7 million of metselspecie during the same period ter 2018, and
- Gemini ended the quarter with $11.7 million drawn against the revolving line of credit, compared with nil drawn spil at September 30, 2018 .
While the economic environment for Gemini remains very competitive, the Company proceeds to have confidence and success ter the team’s capability to secure fresh work. Gemini is fortunate to have solid, trusted relationships with a group of active, growth oriented clients.
The Company resumes to maintain project quality while rivaling for fresh business ter a competitive marketplace. The restructuring of Alberta operations ter the fourth quarter of 2018 will permit the Company to bid competitively and profitably on fresh projects te line with current market expectations.
Requests for proposals and bidding activity remain high and the Company liked success te the third quarter securing fresh business with fresh and existing clients. Revenue backlog spil at September 30, 2018 wasgoed $26.Four million .
The excess fabrication capacity te the Alberta market resumes to waterput downward pressure on gross profit margins and wij do not see this switching te the foreseeable future. Higher revenue volumes combined with the planned reduction ter G&A costs will help Gemini tegenstoot the pressure on gross profit margin thereby restoring profitability. The Company will proceed to oscilación the desire for work volume with a cautious risk management treatment that seeks to avoid exposing the Company to financial loss by bidding unprofitable or excessively risky projects. Gemini resumes to concentrate on business development, rigorous estimating and controls, operational excellence and execution processes to find innovative ways to bring value to clients and secure fresh backlog.
MD&A AND FINANCIAL STATEMENTS
FORWARD-LOOKING STATEMENTS AND NON-IFRS FINANCIAL MEASURES
This news release refers to certain Non-IFRS financial measures that are not determined ter accordance with International Financial Reporting Standards (“IFRS”). The measures used are “backlog”, “working haber”, “working renta ratio” and “adjusted EBITDA”. Thesis measures are used by our management to assist ter making operating decisions and assessing spectacle. While wij calculate thesis 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, 2018 MD&A. Investors are encouraged to evaluate each adjustment and the reasons Gemini considers it adequate for supplemental analysis. Investors are cautioned, however, that thesis measures should not be construed spil an alternative to televisiekanaal earnings determined te accordance with IFRS spil an indication of Gemini’s vertoning. The forward-looking statements contained te this news release are expressly qualified by this cautionary statement.
The Company provides fabrication, construction, maintenance, environmental and regulatory support to customers involved te oil and gas, strong oil, oil sands, midstream and pipeline facilities, hydrocarbon processing, power and other industrials.
Shares of Gemini trade on the TSX Venture Exchange under the symbol “GKX”. For more information about the Company and its services, go to www.geminicorp.ca.
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The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.