CALGARY, ALBERTA -- (Marketwire) -- 03/22/12 -- Gemini Corporation (TSX VENTURE:GKX) today announced its financial results for the fiscal year ended December 31, 2011.
Revenue in the fourth quarter of 2011 was $18,673,000; a 19% increase from the $15,684,000 achieved in the same period last year. This resulted in the 2011 revenue totalling $64,102,000, which is 12% below the 2010 level. The slower than expected activity experienced in the first half of the year accounted for the majority of the shortfall in year over year revenue. This lag in activity was most pronounced for the Field Solutions business unit, wherein field construction project awards fell far short of expectations. Efforts were stepped up throughout the year to expand the Corporation's workload within its engineering, maintenance and fabrication operations. The revenue growth achieved in the second half of the year from these operations was driven by strengthening market conditions and focussed key client business development initiatives. The Corporation's current backlog of work has increased significantly and client activity continues to support improved results for 2012.
Fourth quarter gross profit for 2011 was $2,904,000 compared to $1,508,000 for the same period in 2010. Notwithstanding the improvement for the quarter, gross profit for the year finished 17% lower at $11,526,000 compared to the $13,963,000 achieved in 2010. Margin compression was experienced throughout the year as labour cost escalation for both trades and professionals worked its way into the market. In addition, reaching optimum utilization rates has been a challenge at times due to the variability of work flow, especially in the first half of the year, resulting in lower productivity and higher costs. Finally, certain project management challenges experienced and resolved in the fourth quarter negatively impacted margins. Administrative expenses were reduced more than 5% in 2011, but this was not sufficient to offset the gross profit reductions accumulated through the year.
The fourth quarter net loss was $430,000 (1.2 cents per share), which compared favourably to the net loss of $1,545,000 incurred for the same period in 2010.