(MENAFN Editorial) WINNIPEG, Manitoba, Dec. 04, 2017 (GLOBE NEWSWIRE) -- Gendis Inc. (TSX:) today announced its financial results for the 3rd quarter ended October 31, 2017.

Revenue for the 3rd quarter was $1,299,000 compared to $1,198,000 for last year. Revenue less expense for the 3rd quarter was $336,000 compared to a loss of $107,000 for last year. Net earnings for the 3rd quarter were $429,000 ($0.03 per share) compared to $1,188,000 ($0.09 per share) for last year.

Revenue year-to-date was $4,517,000 compared to $3,741,000 year-to-date last year. Revenue less expense year-to-date was a loss of $995,000 compared to income of $528,000 year-to-date last year. Net earnings year-to-date were $3,748,000 ($0.29 per share) compared to $9,015,000 ($0.70 per share) year-to-date last year.

The volatility in net earnings quarter over quarter and year over year is primarily due to the change in fair value of investment in securities, primarily the Company's investment in Veresen with its sales to Pembina Pipeline and from investment properties with the attendant effect on deferred income taxes.

Condensed summarized information is as follows:

Quarter ended YTD ended in millions of Canadian dollars Oct 31 Oct 31 Oct 31 Oct 31 except per share 2017 2016 2017 2016 Revenue Lease rental revenue 0.8 0.7 3.0 2.2 Dividends & other income 0.5 0.5 1.5 1.5 Total revenue 1.3 1.2 4.5 3.7 Expense Property 0.5 0.9 4.3 2.1 Administration & finance 0.5 0.4 1.2 1.1 Total expense 1.0 1.3 5.5 3.2 Total revenue less total expense 0.3 (0.1 ) (1.0 ) 0.5 Fair value change: Pembina Pipeline (0.8 ) — (0.8 ) — Veresen 1.2 2.4 11.2 8.4 Osum (0.6 ) — (3.2 ) — Other security investments (0.3 ) (0.4 ) (0.3 ) — Investment properties 0.7 (0.8 ) (1.6 ) — Total fair value change 0.2 1.2 5.3 8.4 Income tax (expense)recovery (0.1 ) 0.1 (0.6 ) 0.1 Net earnings 0.4 1.2 3.7 9.0 Earnings per share 0.03 0.09 0.29 0.70

Oct 31 Jan 31 Oct 31 in millions of Canadian dollars 2017
2017
2016 Fair value of investments: Pembina Pipeline 24.0 — — Veresen — 26.4 24.3 Osum 2.7 5.8 4.8 Other security investments 2.3 2.6 2.8 Investment properties 30.9 31.7 30.2 Cash 4.2 0.2 0.1 Other assets 1.5 1.0 1.5 Debt & payables 3.7 7.8 7.2 Shareholders' equity 61.9 59.9 56.3 Quarter ended Year to date ended Oct 31 Oct 31 Oct 31 Oct 31 in millions of Canadian dollars 2017 2016 2017 2016 Cash flow from: Operations Cash receipts Lease rentals 0.9 0.9 2.8 2.6 Dividends & other receipts 0.5 0.6 1.7 1.6 Cash disbursements Property (1.4 ) (0.4 ) (4.4 ) (2.0 ) Administration & finance expense (0.3 ) (0.4 ) (1.4 ) (1.1 ) Income taxes recovered — — — 0.6 Investing Proceeds on sale of security investment 12.9 — 12.9 — Expenditures on investment properties and equipment

(0.1

)

—

(0.7

)

(0.1

) Financing Decrease in debt (7.7 ) (0.2 ) (5.0 ) (0.6 ) Purchase of share capital for cancellation (0.2 ) — (0.8 ) — Dividends (0.3 ) (0.3 ) (0.9 ) (1.0 ) For more information, please contact: James E. Cohen President & Chief Executive Officer Telephone: (204)474-5200 E-mail: Fax: (204)474-5201 Web site: The Company holds a portfolio of commercial and industrial real estate properties in Canada, investments in exchange-traded securities and investments in the securities of private enterprises. Security investments are primarily in companies involved in pipelines, oil and gas development, canola crop marketing, & agricultural crop protection. The investments are held for income generation and long-term capital growth. The Company's business is organized in two operating segments, the Corporate operations and the Realty operations.

GENDIS INC. INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION Oct 31 Jan 31 Oct 31 (unaudited - thousands of Canadian dollars) 2017 2017 2016 ASSETS Current assets Cash 4,169 162 146 Receivables 1,465 891 967 Total current assets 5,634 1,053 1,113 Non-current assets Investment in securities (note 2) 28,855 34,815 31,849 Investment properties 30,900 31,740 30,200 Furnishings and equipment 158 142 152 Deferred income tax — — 208 Total non-current assets 59,913 66,697 62,409 Total assets 65,547 67,750 63,522 LIABILITIES Current liabilities Credit facilities (note 3) — 4,997 4,495 Payables 1,699 1,447 1,778 Total current liabilities 1,699 6,444 6,273 Non-current liabilities Post employment benefit obligation 966 966 951 Deferred income tax 1,016 441 — Total non-current liabilities 1,982 1,407 951 Total liabilities 3,681 7,851 7,224 SHAREHOLDERS' EQUITY 61,866 59,899 56,298 Total liabilities and shareholders' equity 65,547 67,750 63,522

GENDIS INC. INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED OCTOBER 31 (unaudited - thousands of Canadian Quarter ended Year-to-date ended dollars except for share data) 2017 2016 2017 2016 Revenue Lease rentals 836 683 3,015 2,175 Dividends & other income 463 515 1,502 1,566 Total revenue 1,299 1,198 4,517 3,741 Expense Property 513 928 4,279 2,070 Administration 410 343 1,110 1,046 Finance 40 34 123 97 Total expense 963 1,305 5,512 3,213 Total revenue less total expense 336 (107 ) (995 ) 528 Fair value change Investment properties 672 (783 ) (1,554 ) 25 Investment in securities (465 ) 1,971 6,872 8,358 Total fair value change 207 1,188 5,318 8,383 Earnings before income tax 543 1,081 4,323 8,911 Income tax (expense) recovery (114 ) 107 (575 ) 104 Net earnings from operations and comprehensive income

429

1,188

3,748

9,015 Net earnings from operations per share

$

0.03

$

0.09

$

0.29

$

0.70

GENDIS INC. INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited - thousands - shares & Canadian dollars as applicable) Share Capital Retained earnings Total # $ $ $ Balance – January 31, 2016 12,801 13,457 34,788 48,245 Comprehensive income 9,015 9,015 Purchase of share capital for cancellation

(1

)

(1

)

(1

)

(2

) Dividends (960 ) (960 ) Balance – October 31, 2016 12,800 13,456 42,842 56,298 For the remainder of the year: Comprehensive income 4,010 4,010 Purchase of share capital for cancellation

(31

)

(34

)

(55

)

(89

) Dividend (320 ) (320 ) Balance – January 31, 2017 12,769 13,422 46,477 59,899 Comprehensive income 3,748 3,748 Purchase of share capital for cancellation

(200

)

(210

)

(622

)

(832

) Dividends (949 ) (949 ) Balance – October 31, 2017 12,569 13,212 48,654 61,866

GENDIS INC. INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIODS ENDED OCTOBER 31 (unaudited Quarter ended Year to date ended thousands of Canadian dollars) 2017 2016 2017 2016 Changes in cash position By operations Cash receipts Lease rentals 909 889 2,764 2,614 Dividends & other receipts 539 557 1,694 1,549 Cash disbursements Property (1,394 ) (420 ) (4,398 ) (2,032 ) Administration (315 ) (345 ) (1,249 ) (1,009 ) Income taxes recovered — — — 638 Finance expense paid (45 ) (34 ) (127 ) (97 ) Total by operations (306 ) 647 (1,316 ) 1,663 By investing activities Proceeds from sale of security investments

12,863

—

12,863

— Expenditures on investment properties (128 ) (42 ) (714 ) (45 ) Expenditures on furnishings and equipment

—

—

(49

)

(17

) Total by investing activities 12,735 (42 ) 12,100 (62 ) By financing activities Net repayment of credit facilities (7,743 ) (203 ) (4,996 ) (603 ) Purchase of share capital for cancellation

(224

)

—

(832

)

(2

) Dividends paid (314 ) (320 ) (949 ) (960 ) Total by financing activities (8,281 ) (523 ) (6,777 ) (1,565 ) Increase in cash 4,148 82 4,007 36 Cash – beginning of period 21 64 162 110 Cash – end of period 4,169 146 4,169 146

Gendis Inc.

Notes to the unaudited Interim condensed Financial Statements
October 31, 2017
(All tabular amounts in thousands of Canadian dollars unless otherwise stated)

1. General information
General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2017, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2017. These policies have been consistently applied to all periods presented.

2. Investment in securities

fair value change fair value QTR YTD Oct 31 Oct 31 Oct 31 Jan 31 2017 2017 2017 2017 Pembina Pipeline (818 ) (818 ) 23,952 — Veresen 1,173 11,196 — 26,440 Osum (618 ) (3,188 ) 2,650 5,838 Other security investments (202 ) (318 ) 2,253 2,537 (465 ) 6,872 28,855 34,815 Pembina Pipeline acquired all of the Company's shares of Veresen on October 2, 2017 for cash proceeds of $12.9 million and the receipt of 562,725 shares of Pembina Pipeline.

3. Investment properties

fair value change fair value QTR YTD Oct 31 Oct 31 Oct 31 Jan 31 2017 2017 2017 2016 Industrial 652 (1,324 ) 24,280 24,890 Commercial 20 (230 ) 6,620 6,850 672 (1,554 ) 30,900 31,740 4. Credit facilities

Borrowing
Balance Remaining
borrowing
availability Carrying value
of collateral Oct 31 Jan 31 Oct 31 Jan 31 Oct 31 Jan 31 2017 2017 2017 2017 2017 2017 Bank credit facility — 4,997 10,000 5,000 22,183 24,504 Broker's margin account — — 887 979 1,774 1,958 — 4,997 10,887 5,979 23,957 26,462

5. Operating segments

Quarter
Ended
Oct 31



Realty



Corporate

Inter-
Segment



Total Revenue 2017 853 723 (277 ) 1,299 2016 700 725 (227 ) 1,198 Property & administration 2017 582 427 (86 ) 923 Expense 2016 988 360 (77 ) 1,271 Finance expense 2017 191 40 (191 ) 40 2016 150 34 (150 ) 34 Total revenue less total 2017 80 256 — 336 expense 2016 (438 ) 331 — (107 ) Fair value change 2017 672 (465 ) — 207 2016 (783 ) 1,971 — 1,188 Income tax recovery (expense) 2017 (266 ) 152 — (114 ) 2016 91 16 — 107 Comprehensive income (loss) 2017 486 (57 ) — 429 2016 (1,130 ) 2,318 — 1,188 YTD
Ended
Oct 31



Realty



Corporate

Inter-
Segment



Total Revenue 2017 3,067 2,199 (749 ) 4,517 2016 2,227 2,189 (675 ) 3,741 Property & administration 2017 4,486 1,162 (259 ) 5,389 expense 2016 2,250 1,098 (232 ) 3,116 Finance expense 2017 490 123 (490 ) 123 2016 443 97 (443 ) 97 Total revenue less total 2017 (1,909 ) 914 — (995 ) expense 2016 (466 ) 994 — 528 Fair value change 2017 (1,554 ) 6,872 — 5,318 2016 25 8,358 — 8,383 Income tax recovery (expense) 2017 362 (937 ) — (575 ) 2016 105 (1 ) — 104 Comprehensive income (loss) 2017 (3,101 ) 6,849 — 3,748 2016 (336 ) 9,351 — 9,015 Total assets 2017 32,777 57,507 (24,737 ) 65,547 2016 31,302 54,839 (22,619 ) 63,522 Total liabilities 2017 26,568 1,850 (24,737 ) 3,681 2016 23,709 6,134 (22,619 ) 7,224

6. Subsequent Event
On December 4, 2017, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 22, 2017, payable January 5, 2018.

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