TSE Stock Symbol: GDC
CALGARY, Nov. 8, 2012 /CNW/ -
Results of Operations
Genesis Land Development Corp. ("Genesis" or the "Corporation") reports
net earnings for the three and nine months ended September 30, 2012 of
$5 million and $16 million or $0.11 and $0.36 basic and fully diluted
earnings per share (2011 - $1.9 million and $9 million or $0.04 and
$0.20 fully diluted earnings per share) on total revenues of $30.2
million and $83.9 million for the three and nine months ended September
30, 2012 (2011 - $21.7 million and $70 million).
The Corporation achieved the following sales:
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Three months ended September 30,
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Nine months ended September 30,
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2012
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2011
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2012
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2011
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(Number of units)
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(Number of units)
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Single-family residential lots
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66
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48
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241
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162
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Development land parcels
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2
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1
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4
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5
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Single-family homes
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18
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24
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56
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54
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Multi-family homes
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-
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-
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1
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3
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Repayment of debt and new financing
During the nine months ended September 30, 2012, the Corporation reduced
its debt by $11 million, a total reduction of 12% since year end. Total
debt at September 30, 2012 was $77.2 million.
On October 30, 2012, the Corporation entered into a commitment letter in
the amount of $71.5 million to receive development financing for its
Sage Hill Crossing commercial project. The financing will be used to
repay the existing loan amounting to $16.7 million and to complete
servicing of Sagehill Crossing commercial project. All advances to
complete the servicing will be funded on a cost to complete basis. A
previously disclosed sale to Riocan Real Estate Investment Trust in the
amount of $31.7 million will be recognized upon substantial completion
of servicing of the lands under the agreement.
Outlook
The Calgary market appears set for a period of stable growth after
experiencing significant improvements year over year. Genesis has an
inventory of 444 fully serviced lots, 9 professionally staged show
homes and a supply of approved lands within the Calgary Metropolitan
Area ("CMA"). These assets serve Genesis well in a stable market while
also allowing for adjustments should the market fluctuate. The focus
of the Corporation in 2012 continues to be the optimization of
operations, core lands and housing operations.
FINANCIAL SUMMARY As at and for the three and nine months ended
September 30, 2012 and 2011
(all tabular amounts are in thousands of dollars except per share
amounts and number of outstanding shares)
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Three months ended
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Nine months ended
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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Revenue
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30,222
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21,724
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83,876
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70,092
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Expenses net of finance income
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22,434
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19,262
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62,008
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58,117
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Earnings before taxes
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7,788
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2,462
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21,868
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11,975
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Earnings attributable to equity holders
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4,956
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1,877
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15,987
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9,003
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Earnings per share (basic & fully diluted)
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0.11
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0.04
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0.36
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0.20
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September 30,
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September 30,
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2012
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2011
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Assets
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376,714
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360,877
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Liabilities
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127,539
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124,841
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Total equity
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249,175
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236,036
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Common Shares Outstanding
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44,737,603
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44,484,287
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About Genesis:
Genesis is a Calgary based land development company and residential home
builder with land holdings in Alberta and British Columbia. Its active
operations are located primarily in the CMA.
This press release should be read in conjunction with the Condensed
Consolidated Interim Financial Statements and Management Discussion &
Analysis of the Corporation for the three and nine months ended
September 30, 2012, which have been filed on the System for Electronic
Document Analysis and Retrieval (SEDAR). Copies of these documents may
be obtained via SEDAR at www.sedar.com
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain statements which constitute
forward-looking statements or information ("forward-looking
statements") within the meaning of applicable securities legislation
concerning the business, operations and financial performance and
condition of Genesis. Forward-looking statements include, but are not
limited to, statements with respect to the estimated corporate tax rate
and the number of dwelling sites that Genesis will actually develop and
sell. Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Although Genesis believes
that the anticipated future results, performance or achievements
expressed or implied by the forward-looking statements are based upon
reasonable assumptions and expectations, the reader should not place
undue reliance on forward-looking statements because they involve
assumptions, known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Genesis to differ materially from anticipated future results,
performance or achievement expressed or implied by such forward-looking
statements. Accordingly, Genesis cannot give any assurance that its
expectations will in fact occur and cautions that actual results may
differ materially from those in the forward-looking statements.
Factors that could cause actual results to differ materially from those
set forth in the forward-looking statements include, but are not
limited to, general economic conditions; local real estate conditions,
including the development of properties in close proximity to Genesis'
properties; timely leasing of newly-developed properties and re-leasing
of occupied square footage upon expiration; dependence on tenants'
financial condition; the uncertainties of real estate development and
acquisition activity; the ability to effectively integrate
acquisitions; interest rates; availability of equity and debt
financing; the impact of newly-adopted accounting principles on
Genesis' accounting policies and on period-to-period comparisons of
financial results; economic conditions in Western Canada, not realizing
on the anticipated benefits from the transaction or not realizing on
such anticipated benefits within the expected time frame and other
risks and factors described from time to time in the documents filed by
Genesis with the securities regulators in Canada available at
www.sedar.com., including the Annual Information Form under the heading
"Risk Factors" and in Genesis' most recent interim report under the
heading "Management's Discussion and Analysis." Furthermore, the
forward-looking statements contained in this press release are made as
of the date of this press release and, except as required by applicable
law, Genesis does not undertake any obligation to publicly update or to
revise any of the forward-looking statements, whether as a result of
new information, future events or otherwise.
Caution should be exercised in the evaluation and use of the appraisal
results. The appraisal is an estimate of market value at specific dates
and not a precise measure of value, being based on subjective
comparison of related activity taking place in the real estate market.
The appraisal is based on various assumptions of future expectations
and while the appraiser's assumptions are considered to be reasonable
at the current time, some of the assumptions may not materialize or may
differ materially from actual experience in the future.
SOURCE: Genesis Land Development Corp.