Gemini Corporation reports 2016 first quarter results

CALGARY, May 25, 2016

Revenue in the first quarter of 2016 totalled $31 million, which was a 25% decrease from the $41 million achieved in the first quarter of 2015. Module fabrication work related to Alberta's Northwest Upgrader and Fort Hills projects were the primary contributors to this first quarter activity within the Corporation's Field Solutions segment. Spending constraints in the current low commodity price environment are continuing to create a highly competitive market.

First quarter gross profit for 2016 was $2.3 million compared to $2.7 million in the same period last year. This reduction was influenced by the compressed margins being earned on fabrication and field work as a result of the current market conditions. The low level of activity in the first quarter experienced in both the engineering and environmental business units had a negative effect on utilization rates. Staff reductions combined with variable and fixed cost alterations continued through the quarter to better align costs to expected revenue levels.

The Corporation's 2016 first quarter net loss was $1.5 million (2¢ per share) compared to a net loss of $1.8 million (2¢ per share) in the same period last year.

"In the first quarter we continued to reduce costs and restructure our organization to stabilize Gemini's business in the current market environment," stated Peter Sametz, Gemini's President and CEO. "We are adjusting our structure and implementing process improvements that will enable Gemini to improve margins and overall business performance in the months ahead while focusing on our existing clients and new business opportunities."

About Gemini Corporation
Gemini Corporation is a professional services firm that designs, builds and maintains energy and industrial facilities. We provide regulatory, environmental, engineering, fabrication, installation and maintenance solutions for clients through stand-alone or integrated service delivery models. Our design-build capabilities differentiate Gemini and provide tremendous value-added benefits for clients, such as cost certainty, schedule compression and one point of accountability. The Corporation's principal target markets are midstream oil and gas, oil and gas production, in-situ heavy oil, and oil and gas processing across western Canada.

Shares of Gemini trade on the TSX Venture Exchange under the symbol "GKX". For more information about the Corporation and its services, go to www.geminicorp.ca.