Gemini Corporation Reports Substantial Improvements in 2003 Financial Results
----Amazing results from another service company. The following bodes well for the future "In fact, one
contract obtained in late 2003 alone will more than double GEM's operating revenues."
CALGARY, ALBERTA--(CCNMatthews - Mar 25, 2004) - The year ended
December 31, 2003 was a very successful year for Gemini
Corporation. Gross revenues increased 36% to $25,564,000;
however, the most significant financial achievements were the
increases in net earnings, cash flow and working capital which
grew 533%, 1723% and 458%, respectively. Another important
milestone in Gemini's progress was the improvement in retained
earnings, from a deficit position of $1,258,000 at December 31,
2002 to a positive balance of $431,000 at December 31, 2003.
These significant gains can be attributed in part to high
activity levels within Gemini Engineering's core group of clients
and the resurgence of junior oil and gas companies, who comprise
GEM Production Management's primary customer base. There was also
a substantial improvement in the operations of Kinetic Projects,
which was able to achieve earnings targets despite a very
competitive marketplace through managing projects effectively and
maintaining low overhead costs. Financial results of the three
months and year ended December 31, 2003 are summarized below:
/T/
SUMMARY OF OPERATIONS
Three Months ended Twelve Months ended
Dec. 31, 2003 Dec. 31, 2002 Dec. 31, 2003 Dec. 31, 2002
Revenues $7,746,000 $4,682,100 $25,564,100 $18,832,600
Gross margin 37.9% 28.7% 32.0% 26.7%
Earnings (loss)
before income
taxes $1,728,100 $ 82,000 $ 2,499,400 $ (405,800)
Net earnings
(loss) $1,286,200 $ (30,300) $ 1,688,900 $ (389,600)
Earnings (loss)
per share $ 0.041 $ (0.002) $ 0.052 $ (0.015)
Cash flow from
operations $1,247,000 $ 84,200 $ 1,750,100 $ (107,800)
/T/
Although 2004 results will be dependent on a number of factors
including commodity prices, industry activity and political
events, we remain quite optimistic. Oil and gas prices continue
at high levels as do the activity levels of our clients. In the
Gemini Engineering operations, the primary focus will be on sales
to attract new clients and our biggest challenge may be to manage
growth while retaining and recruiting high quality employees.
GEM's operations are expected to increase in 2004, in both
engineering and contract operating activities. In fact, one
contract obtained in late 2003 alone will more than double GEM's
operating revenues. One factor that contributed to the success
achieved in our construction and fabrication operations in 2003
was the ability to provide full service project execution
(engineering, procurement and construction). This capability,
combined with growing demand and aggressive marketing
initiatives, should result in a further improvement in financial
results in 2004. Gemini's new Edmonton office which is offering
environmental engineering consulting services also shows great
promise.
Gemini Corporation is a growth oriented company providing
engineered solutions through a variety of inter-related services
including project management, fabrication, construction and
operating services, in Canada and internationally. It is a leader
in providing cost effective solutions to its clients. The
Corporation currently has 30.8 million shares outstanding and
trades on the TSX Venture Exchange under the symbol GKX.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Gemini Corporation
Carl Johnson
President and Chief Executive Officer
(403) 259-0301
or
Gemini Corporation
Marlene Quiring
VP and Controller
(403) 259-0348
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release. |
