Gemini Reports First Quarter 2017 Results

Gemini Reports First Quarter 2017 Results

Canada NewsWire

CALGARY, May 26, 2017 /CNW/ – Gemini Corporation (GKX-TSXV) (“Gemini” or the “Company”) today announced first quarter 2017 results.

“The business environment in Western Canada continues to be fiercely competitive and although requests for proposals and bidding activity has been steady, Gemini’s win rate has not been as good as we had hoped. Our first quarter was slower than expected”, said Pete Sametz, Gemini’s President and CEO.

“As we actively seek out new business opportunities and refine our estimating process, our key challenge for the remainder of the year continues to be securing new work with reasonable margins while maintaining the excellent execution and client satisfaction levels that were achieved in 2016. We have excellent employees who are working very closely with key clients to support them in this tough environment. We continue to manage our balance sheet carefully and we are very pleased to announce the closing of a $14 million credit facility for working capital needs with our new financial partner, ATB Financial.”

FINANCIAL HIGHLIGHTS


Three months ended
March 31,


($’000’s)


2017

2016

Revenue


$6,718

$30,821

Gross profit (loss)


(266)

2,278

Net loss


(2,898)

(1,454)

Net loss per share – basic and diluted


(0.04)

(0.02)

Adjusted EBITDA(1)


(2,595)

(841)


($’000’s)


March 31,


2017

December
31,

2016

Working capital(1)


$4,414

$8,334

Working capital ratio(1)


1.6:1

1.8:1

Total assets


16,932

23,089

Total equity


4,860

7,741

Total liabilities to equity ratio(1)


2.5:1

2.0:1


(1) 

Non-IFRS financial measure  

 

FIRST QUARTER 2017 OVERVIEW

  • For the three months ended March 31, 2017, Gemini recorded revenue of $6.7 million, a decline of 78% or $30.8 million from the same period in 2016. The Ponoka fabrication facility was inactive during the first quarter due to lack of significant projects, compared to the same period last year where modules were being constructed related to the Alberta Northwest Upgrader and Fort Hills projects.
  • Adjusted EBITDA for the three months ended March 31, 2017 was a loss of $2.6 million, compared to a loss of $0.8 million in the first quarter of 2016.
  • Administrative expenses for the quarter decreased by $0.9 million, a reduction of 27% compared to the same period in 2016. This reduction is a result of significant cost cutting measures and restructuring undertaken in 2016, the impact of which are now being realized.
  • Cash flow from operations was $0.5 million for the quarter. By comparison, Gemini’s operations used $3.0 million of cash during the same period in 2016.
  • Gemini ended the quarter with $1.8 million cash, up slightly from the year end cash balance of $1.6 million.
  • On March 30, 2017, the Company signed a term sheet for a two year committed senior secured revolving credit facility of up to $14 million plus an accordion feature for an additional $4 million as needed. The new credit facility was finalized and put in place effective May 25, 2017.
  • The Company completed a corporate amalgamation effective April 1, 2017. The amalgamation allows for the simplification of back office processes and realization of future cost savings and operating efficiencies.

OUTLOOK

The Company and industry adjusted to the reduced activity levels in 2016 and now Gemini is working to grow cash flow, personnel, project quality and capability, while competing fiercely for new business. The industry optimism that existed at the beginning of the year, based on improved economic activity, an increase in capital budgets and improved energy prices, has now given way to the sober realization that 2017 is recovering slower than anticipated.

Today the Company finds itself dealing with an environment where the lowest cost is the primary consideration when awarding new work. Requests for proposals and bidding activity remains high, however, the Company found it challenging to secure new work at profitable levels in the first quarter of the year despite positive feedback on our technical submissions and execution strategies. Having strengthened the balance sheet and secured a new credit facility, the Company will continue to balance the desire for work volume with a cautious risk management approach that seeks to avoid exposing the Company to financial loss by bidding unprofitable or excessively risky projects.

Gemini continues to focus on business development, rigorous estimating and controls, operational excellence and execution processes to find innovative ways to bring value to clients and secure new backlog. Interestingly, many of the proposals and requests for pricing are also associated with work not expected to commence until 2018 as clients attempt to lock in today’s low prices for next year’s work.

The Company is now expecting revenue for 2017 to be less than 2016 but expects activity to pick up in the second half of 2017 into 2018. Gemini’s fabrication shop in Ponoka has recently started to ramp up activity with key long-term clients. Environmental and maintenance services are also seeing increased activity, while construction activity levels in the Fort Saskatchewan region remain challenging.

The Company experienced a higher than normal level of attrition in the first five months of 2017 and has decided to defer the replacement of all non-essential positions until backlog levels improve. On an annualized basis, approximately $2.1 million of salary costs have been eliminated through attrition and we expect to realize further savings in the second quarter. Processes have also been established to ramp back up quickly as necessary. The Company is confident that the quality and dedication of Gemini’s personnel are best of class and our accessibility to the local workforce will allow us to bring on new personnel as required.

While the economic environment for Gemini remains highly competitive, the Company continues to have confidence in the teams’ ability to secure new work with reasonable margins while maintaining the excellent execution standards and client satisfaction that was achieved in 2016. Gemini is fortunate to have solid, trusted relationships with a group of active, growth oriented clients that we value highly. 

MD&A AND FINANCIAL STATEMENTS
The 2017 Q1 Management’s Discussion and Analysis, and the Consolidated Financial Statements provide a detailed explanation of Gemini’s operating results for the three months ended March 31, 2017. Gemini’s 2017 first quarter will be filed on SEDAR at http://www.sedar.com by May 26, 2017.

FORWARD-LOOKING STATEMENTS AND NON-IFRS FINANCIAL MEASURES
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”, “working capital ratio” 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 March 31, 2017 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.

ABOUT GEMINI
Gemini 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.

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.

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

SOURCE Gemini Corporation

View original content: http://www.newswire.ca/en/releases/archive/May2017/26/c2104.html

Ironhorse Announces Q1 2017 Financial and Operating Results

Ironhorse Announces Q1 2017 Financial and Operating Results

Canada NewsWire

CALGARY, May 26, 2017 /CNW/ - Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG) announces its financial and operating results for the three months ended March 31, 2017.

Financial and Operation Summary

The Company’s reported production has decreased 19% to 164 boe/d in the first quarter of 2017 from 202 boe/d produced in the fourth quarter of 2016.  The decrease in production is primarily attributed to the Nisku L2L Pool shut in of production for 10 days in March due to a third party compressor turnaround which halted the blend gas supply required to produce from the pool.

The Company realized a net loss of $33,000 for the first quarter, a 95% or $667,000 reduction from the $700,000 net loss in Q4 2016 which included a $797,000 impairment charge. 

Despite lower production, Q1 2017 operating netbacks improved 21% to $271,000 compared to $224,000 for Q4 2016 benefiting from 8% higher realized commodity prices on a boe basis and reduced operating costs which included equalization credits for 2015 fee adjustments on third party compression recorded in the current quarter. 

Quarterly funds from operations remained positive for the third consecutive quarter improving 27% to $180,000 compared to $142,000 for Q4 2016 as a result of higher operating netbacks. The Company continues to be well positioned financially with a positive working capital position of $3.0 million at March 31, 2017.

Combined production from the Pembina Nisku light oil property averaged 1,180 boe/d gross (184 boe/d net) during April 2017. Net production is projected to average in the range of 140 boe/d to 170 boe/d, as the pool operator manages the reservoir performance and optimizes the pool production and water injection requirements.


SELECTED INFORMATION

For three months ended


March 31,

December 31,

March 31,

($ thousands except per share & unit amounts)


2017

2016

2016


Financial

Petroleum and natural gas revenues (1)


758

884

162

Funds from operations (2)


180

142

(131)

Per share – basic and diluted


0.01

0.01

Net loss


(33)

(700)

(144)

Per share – basic and diluted



(0.03)

(0.01)

Capital expenditures (3)



(1)


Operation

Production

Light Oil & NGL (bbl/d)


140

167

44

Gas (mcf/d)


146

212

137

Total (boe/d)


164

202

67

Petroleum and natural gas revenues ($/boe)


51.42

47.61

26.50

Royalties ($/boe)


21.86

19.09

11.27

Operating expenses ($/boe)


11.22

16.41

12.75

Operating netback ($/boe)


18.34

12.11

2.48


(1)


Petroleum and natural gas revenues are before royalty expense.


(2)


Funds from operations and net debt are non-GAAP measures as defined in the Advisory section of the MD&A.


(3)


Capital expenditures are before acquisitions and dispositions.

 

Additional Information

Ironhorse’s complete results for the three months ended March 31, 2017, including unaudited condensed financial statements and the management’s discussion and analysis are available on SEDAR and the Company’s web site at www.ihorse.ca

About Ironhorse:

Ironhorse Oil & Gas Inc. is a Calgary-based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol “IOG.”

Forward-looking statements:

Statements throughout this release that are not historical facts may be considered to be “forward looking statements.” These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company’s objectives, goals, or future plans, including management’s assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and changes in the regulatory and taxation environment. As a consequence, the Company’s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manor; pipeline restrictions; and field production rates and decline rates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this release are made as at the date of this release and Ironhorse assumes no obligation to update or revise any forward-looking statements to reflect new events or circumstances, except as required by applicable laws.

Boe Conversion – Certain natural gas volumes have been converted to barrels of oil equivalent (“boe”) whereby six thousand cubic feet (mcf) of natural gas is equal to one barrel (bbl) of oil. This conversion ratio is based on an energy equivalency conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

SOURCE Ironhorse Oil & Gas Inc.

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Prodigy Ventures Inc. Announces Q1 2017 Financial Results

Prodigy Ventures Inc. Announces Q1 2017 Financial Results

Canada NewsWire

(TSXV-PGV)

TORONTO, May 26, 2017 /CNW/ – Prodigy Ventures Inc. (TSXV: PGV) (“Prodigy” or the “Company“) today announced the results for the first quarter ended March 31, 2017.

“I am very pleased with our growth this quarter as we continue to strengthen our position in the Canadian market as one of the leading boutique technology service providers in the country,” stated Tom Beckerman, CEO of Prodigy. “We are off to a fast start this year, expanding our sales and marketing, building our pipeline, and developing new clients. And, with our new relationship with Ov2 Securities, we are actively seeking acquisitions to add additional customers, new revenue streams and increase cash flow.”

Mr. Beckerman continued, “As well, we continue to gain traction with our iVideo brand as we release new versions with enhanced features. We have increased our R&D expenses in this segment of the business for both our B2C and B2B iVideo applications. This increase, coupled with significant sales and marketing expense increases in our services provider business, reduced our net income for Q1, but position us well for our next stage of growth.”

First Quarter 2017 Financial Results

  • Revenue for the three-month period ended March 31, 2017 totalled $3,063,308 compared to $2,697,267 for the three months ended March 31, 2016, an increase of 13.6%.
  • Gross profit for the three-month period ended March 31, 2017 of $989,384 as compared to $1,003,324 for the three-month period ended March 31, 2016, a decrease of 1.4%, due to increased costs of technology talent.
  • Operating Expenses for the three-month period ended March 31, 2017 of $752,850 as compared to $490,006 for the three-month period ended March 31, 2016, an increase of 53.6%.
  • Net Income for the three-month period ended March 31, 2017 totalled $169,169 as compared to $372,303 for the three-month period ended March 31, 2016, a decrease of 54.6%.
  • The Company had working capital of $2,093,598 as of March 31, 2017 compared to $1,952,165 as of December 31, 2016.

Three months ended March 31

2017

$

2016

$

Revenue

3,063,308

2,697,267

Gross Profit

989,384

1,003,324

Expenses

752,850

490,006

Net and comprehensive income for the period

169,169

372,303

Net income per share – basic and diluted

0.00

0.00

 


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Prodigy Ventures Inc.

Prodigy Ventures is an innovation company that has combined an enterprise services business – Prodigy Labs – with a Venture Builder business. The two businesses work together to sell services and create new enterprise-grade platforms and apps using technologies such as mobile video, proximity, wearables, 3D & augmented reality.

Prodigy has been named as one of Canada’s fastest growing technology companies in the 19th annual Deloitte Technology Fast 50™ awards for demonstrating bold innovation, dedicated leadership and strong growth. Prodigy also ranked on Deloitte’s Technology Fast 500™, a ranking of the 500 fastest growing technology, media, telecommunications, life sciences and energy tech companies in North America.

Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. In particular, this news release contains forward-looking statements in respect of among other things, the Company’s expectations with respect to revenue growth and cash flow for certain products or services, the ability to increase shareholder value with iVideo and the identification of potential acquisitions to add additional customers, new revenue streams and increase cash flow. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information obtained from third party sources is reliable, they can give no assurance that those expectations will prove to have been correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risk factors set forth in the Company’s Management’s Discussion and Analysis for the quarter ended March 31, 2017, a copy of which is filed on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive. These statements are made as at the date hereof and unless otherwise required by law, the Company does not intend, or assume any obligation, to update these forward-looking statements.

SOURCE Prodigy Ventures Inc.

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