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Winnipeg Free Press - PRINT EDITION
Gendis profit boosted by tax refund in Q4
INVESTMENT holding company Gendis Inc. has reported a hefty increase in profit, thanks mainly to an $11.2-million refund from a 12-year-old tax case.
The Winnipeg-based company announced Friday it had net earnings of $17.1 million, or $1.23 a share, for the fiscal year that ended on Jan. 31. That compares with net earnings of $10.7 million, or 77 cents a share, for the previous fiscal year.
The company, whose investment portfolio includes six commercial buildings in Manitoba and northwestern Ontario and shares in three oil and gas companies, said the increase in net earnings was primarily due to an $11.2-million tax refund it received during the fourth quarter from Canada Revenue Agency.
The refund stems from a 12-year-old dispute with the agency over how much income tax Gendis should have paid on the 1995 sale of its 51 per cent stake in Sony Canada.
The agency claimed the company owed an extra $28.4 million in taxes and interest, and Gendis fought the case all the way to the Supreme Court of Canada.
It ended with Canada Revenue agreeing to refund 25 per cent of the $28.4 million Gendis paid back in 2001, plus interest.
Aside from the tax refund, Gendis also reported a $200,000 increase in revenues for the year -- $5.9 million versus $5.7 million.
Company president and CEO James Cohen said in the fourth quarter, the company also acquired one million shares in Oak Point Energy Ltd., a Calgary-based junior oilsands developer with a project in the Northern Athabasca oilsands region of Alberta.
Cohen said the $2-million investment complements Gendis's energy, infrastructure and pipeline investments in OSUM Oilsands Corp. and in Veresen Inc. (formerly Fort Chicago Energy Limited Partnership).
"Gendis also has a 100 per cent leased commercial real estate portfolio and we have recently made, and will continue to make, investments in the global agri-foods sector through purchases in publicly traded marketable securities as buying opportunities are identified," Cohen said.
Gendis's shares(TSX:GDS) closed up four cents Friday at $3.44.
murray.mcneill@freepress.mb.ca
Republished from the Winnipeg Free Press print edition April 14, 2012 B5
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