WINNIPEG, MANITOBA--(Marketwire - Dec. 10, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3^rd quarter ended October 31, 2012 of the fiscal year ending January 31, 2013.

Revenue for the 3^rd quarter was $1,431,000 compared to $1,419,000 for last year's 3^rd quarter. Net loss for the 3^rd quarter was $791,000 ($0.06 per share) compared to a profit of $3,015,000 ($0.21 per share) for last year's 3^rd quarter.

Revenue year-to-date was $4,471,000 compared to $4,517,000 last year. Net loss year-to-date was $8,300,000 ($0.60 per share) compared to a loss of $671,000 ($0.05 per share) for last year.

Lease rental revenue increased marginally while investment income was essentially even quarter over quarter and year-to-date. The decrease in earnings is primarily due to the change in fair value for equity investments and investment properties quarter over quarter and year-to-date.

Condensed summarized information is as follows:

		quarter ended						year-to-date
in millions of Canadian dollars		Oct 31			Oct 31			Oct 31			Oct 31
except per share		2012			2011			2012			2011
Lease rental revenue			0.9			0.9			3.0			3.0
Investment income			0.5			0.5			1.5			1.5
Fair value change:
	Veresen		0.1			0.9			(4.4	)		2.8
	OSUM		(1.0	)		0.5			(8.2	)		(8.5	)
	Other equity investments		0.1			(0.1	)		(0.9	)		(0.1	)
	Investment properties		(0.8	)		1.6			(0.1	)		1.8
Expenses			(0.7	)		(0.9	)		(2.8	)		(2.9	)
Settlement of legal claims			-			-			1.5			-
Income tax recovery (expense)			0.1			(0.4	)		2.1			1.7
Net earnings (loss)			(0.8	)		3.0			(8.3	)		(0.7	)
Earnings (loss) per share		$	(0.06	)	$	0.21		$	(0.60	)	$	(0.05	)
Fair value of investments:
	Veresen								25.8			28.8
	OSUM								17.4			19.4
	Other equity investments								1.8			0.1
	Investment properties								27.9			26.9
Other assets									0.7			0.7
Debt & payables									5.5			12.7
Deferred tax payable									2.4			2.0
Shareholders' equity									65.7			61.2

			quarter ended		year-to-date
in millions of Canadian dollars			Oct 31	Oct 31	Oct 31	Oct 31
except per share			2012	2011	2012	2011
Cash flow from:
	Operations
		Cash receipts	1.6	1.9	4.7	4.7
		Cash disbursements	(0.8)	(1.1)	(2.9)	(3.0)
		Finance expense	—	(0.1)	(0.1)	(0.3)
		Settlement of legal claims	—	—	1.5	(1.3)
		Income taxes	—	—	0.7	(0.1)
	Investing
		Proceeds on sales of investments	—	—	0.1	—
		Purchase of investments	—	—	(2.7)	—
		Expenditures on investment properties	(0.5)	—	(0.5)	—
	Financing
		Debt advance (reduction)	0.1	(0.6)	0.3	0.4
		Purchase of share capital for cancellation	(0.1)	—	(0.1)	—
		Dividends	(0.3)	(0.3)	(1.0)	(0.3)

GENDIS INC.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
(unaudited - thousands of Canadian dollars)			Oct 31	Oct 31	Jan 31
		note	2012	2011	2012
ASSETS
Current assets
	Cash		10	86	142
	Receivables		710	574	1,464
Total current assets			720	660	1,606
Non current assets
	Equity investments	2	44,930	48,280	55,813
	Investment property		27,900	26,880	27,560
	Furnishings and equipment		39	49	52
Total non current assets			72,869	75,209	83,425
Total assets			73,589	75,869	85,031
LIABILITIES
	Current liabilities
	Credit facilities	3	3,897	11,395	3,600
	Payables		472	400	582
	Current income tax payable		154	-	-
Total current liabilities			4,523	11,795	4,182
Non current liabilities
	Post employment benefit obligation		951	855	961
	Deferred income tax payable		2,438	1,980	4,723
Total non current liabilities			3,389	2,835	5,684
Total liabilities			7,912	14,630	9,866
SHAREHOLDERS' EQUITY			65,677	61,239	75,165
Total liabilities and shareholders' equity			73,589	75,869	85,031

GENDIS INC.
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian dollars except for share data)
		quarter						year-to-date
		2012			2011			2012			2011
Revenue
Lease rentals			931			912			2,959			2,990
Dividends and other investment income			500			507			1,512			1,527
	Total revenue		1,431			1,419			4,471			4,517
Expense
	Property		370			396			1,413			1,456
	Administration		301			348			1,206			1,140
	Finance		30			104			134			289
Total expense			701			848			2,753			2,885
Fair value change
	Investment property		(851	)		1,602			(131	)		1,827
	Equity investments		(807	)		1,233			(13,503	)		(5,869	)
Total fair value change			(1,658	)		2,835			(13,634	)		(4,042	)
Settlement of legal claims			-			-			1,483			-
Earnings (loss) before income tax			(928	)		3,406			(10,433	)		(2,410	)
Income tax (expense) recovery			137			(391	)		2,133			1,739
Net earnings (loss) from operations and comprehensive income (loss)			(791	)		3,015			(8,30	)		(671	)
Net earnings (loss) from operations per share		$	(0.06	)	$	0.21		$	(0.60	)	$	(0.05	)

GENDIS INC.

CONDENSED INTERIM STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

	Share				Retained		Total
(unaudited - thousands - shares &	Capital				Earnings
Canadian dollars as applicable)	#		$		$		$
Balance - January 31, 2011	13,937		14,650		47,608		62,258
Comprehensive loss to July 31, 2011					(3,686	)	(3,686	)
Balance - July 31, 2011	13,937		14,650		43,922		58,572
Comprehensive income for the
quarter ended October 31, 2011					3,015		3,015
Dividend paid					(348	)	(348	)
Balance - October 31, 2011	13,937		14,650		46,589		61,239
Comprehensive income for the remainder of the year					17,759		17,759
Dividends paid					(3,833	)	(3,833	)
Balance - January 31, 2012	13,937		14,650		60,515		75,165
Comprehensive loss to July 31, 2012					(7,509	)	(7,509	)
Purchase of share capital for cancellation	(6	)	(6	)	(13	)	(19	)
Dividends paid					(697	)	(697	)
Balance - July 31, 2012	13,931		14,644		52,296		66,940
Comprehensive loss for the
quarter ended October 31, 2012					(791	)	(791	)
Purchase of share capital for cancellation	(40	)	(42	)	(82	)	(124	)
Dividend paid					(348	)	(348	)
Balance - October 31, 2012	13,891		14,602		51,075		65,677

GENDIS INC.
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDED OCTOBER 31
			quarter				year-to-date
(unaudited - thousands of Canadian dollars)			2012		2011		2012		2011
Changes in cash position
	By operations
		Cash receipts	1,580		1,889		4,665		4,715
		Cash disbursements	(760	)	(1,042	)	(2,868	)	(3,067	)
Receipt (payment) on settlement of legal claims			-		-		1,483		(1,250	)
		Income taxes (paid) recovered	-		-		706		(74	)
		Finance expense paid	(28	)	(102	)	(135	)	(290	)
	Total by operations		792		745		3,851		34
	By investing activities
		Proceeds from sale of equity investments	-		-		118		-
		Acquisition of equity investments	-		-		(2,739	)	-
		Expenditures on investment property	(471	)	(8	)	(471	)	(33	)
		Proceeds on sale of equipment	-		3		-		3
		Expenditures on furnishings and equipment	-		(9	)	-		(9	)
	Total by investing activities		(471	)	(14	)	(3,092	)	(39	)
	By financing activities
		Net advance (repayment) of credit facilities	103		(587	)	297		400
		Purchase of share capital for cancellation	(124)		-		(143	)	-
		Dividends paid	348		(348	)	(1,045	)	(348	)
	Total by financing activities		(369	)	(935	)	(891	)	52
Increase (decrease) in cash			(48	)	(204	)	(132	)	47
Cash - beginning of period			58		290		142		39
Cash - end of period			10		86		10		86

Gendis Inc.

Notes to the unaudited Condensed Interim Financial Statements

October 31, 2012

(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 report for the year ended January 31, 2012.
   The principal accounting policies applied in the preparation of these condensed interim financial statements are the same as set out in Note 2 to the complete audited annual financial report for the year ended January 31, 2012. These policies have been consistently applied to all periods presented.
   
   
2. Investments

							Oct 31	Jan 31
							2012	2012
Veresen							25,760	30,120
OSUM							17,405	25,595
Other equity investments							1,765	98
							44,930	55,813
3. Credit facilities
	Borrowing			Remaining borrowing			Carrying value
	Balance			availability			of collateral
	Oct 31	Jan 31		Oct 31	Jan 31		Oct 31	Jan 31
	2012	2012		2012	2012		2012	2012
Banker's acceptances	3,497	3,000
Bank demand loan	400	600
	3,897	3,600		6,100	8,400		23,852	27,890
Broker's margin account	-	-		1,177	1,115		2,673	2,328
	3,897	3,600		7,277	9,515		26,525	30,218

4. Settlement of legal claims
   The Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company.
   
   
5. Subsequent Event
   On December 10, 2012, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 21, 2012, payable January 4, 2013.
   
   During the period November 1, 2012 to December 10, 2012, the Company sold 105,000 shares of OSUM for net proceeds of $899,000.
   
   

   During the period November 1, 2012 to December 10, 2012, the Company purchased 1-million shares of Input Capital Corp., a private company, for $1-million.