Gemini Corporation (GKX-TSXV) ("Gemini" or the "Company") today announced fourth quarter and full year 2016 results.
"For Gemini, 2016 was a year of recovery, stabilization and transformation as the Company successfully executed on multiple projects and generated positive operating cash flows. The Company was presented with many challenges and obstacles in 2016 as the energy sector in western Canada continued to experience declines in output and investment in capital. Gemini's success is tied closely to our clients who operate in this sector," said Pete Sametz, Gemini's President and CEO.
"The rail loading terminal project in 2015 resulted in an erosion of the working capital and cash position of the Company at the start of the year. Gemini paid off its line of credit of $10.3 million during the year. The improved balance sheet and financial condition has enabled the company to negotiate a new credit facility effective March 30, 2017 for working capital financing."
FULL YEAR 2016 OVERVIEW
FOURTH QUARTER 2016 OVERVIEW
The oil and gas industry in western Canada is starting to show modest signs of improvement. Industry spending appears to remain focused on operational maintenance and the completion of projects that were underway prior to the recent downturn. Gemini continues to pursue new business in industrial sectors outside of energy where integrated fabrication, construction and maintenance offerings are easily transferable. Requests for proposals and bidding activity in the first quarter of 2017 have increased fairly significantly compared to the second half of 2016. Gemini continues to pursue additional backlog for 2017 as its primary objective. The Company currently has approximately $40.0 million of secured revenue and are awaiting the results of several proposal submissions.
It is expected that revenue for 2017 could increase modestly from 2016 with continued pressure on margins as clients attempt to lock in 2016 pricing at reduced levels for future projects. Gemini's focus continues to be on servicing sustaining projects and streamlining operating activities. It is anticipated that margins will remain compressed for the first half of 2017 as service industry capacity is reduced and commodity prices stabilize.
Gemini has an outstanding and well respected client base and there is additional work to pursue with them. The Company believes that an integrated approach with an emphasis on safety and exemplary execution creates value for its clients in this challenging environment. Gemini is focused on the tasks at hand and is responding with unwavering enthusiasm and passion. We are encouraged by the strong performance of our team particularly in the second half of 2016 and confident that the initiatives put in place in 2016 will position the Company for success in 2017 as the western Canadian energy sector recovers.
MD&A AND FINANCIAL STATEMENTS
The 2016 Q4 Management's Discussion and Analysis, and the Consolidated Financial Statements provide a detailed explanation of Gemini's operating results for the three months and year ended December 31, 2016. Gemini's 2016 fourth quarter and full year report will be filed on SEDAR at http://www.sedar.com by March 31, 2017.
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 www.geminicorp.ca.
SOURCE: Gemini Corporation
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.