Walton Yellowhead Development Corporation (the “Corporation”)
announced today the Corporation’s results for the third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Corporation generated total
revenues of $2,148 and incurred total expenses of $201,788, which
translated into a net loss before tax of $199,640. The revenues
generated by the Corporation consisted of interest income earned on the
cash held by the Corporation. The total expenses primarily consisted of
$135,448 in costs for the management of the Corporation and $32,816 in
servicing fees. The nature and amount of expenses incurred during the
third quarter of 2012 were consistent with management’s expectations.
The net loss before tax of $199,640 was partially offset by a deferred
tax recovery of $49,910, resulting in an overall net loss of $149,730.
On a year-to-date basis, the Corporation generated total revenues of
$10,749 and incurred total expenses of $591,976 which translated into a
net loss before tax of $581,227. The revenues generated by the
Corporation consisted of interest income earned on the cash held by the
Corporation. The total expenses primarily consisted of $403,399 in costs
for the management of the Corporation and $97,734 in servicing fees. The
nature and amount of expenses incurred during the year-to-date period
were consistent with management’s expectations for the period. The net
loss before tax of $581,227 was partially offset by a deferred tax
recovery of $280,402, resulting in an overall net loss of $300,825.
The net loss incurred for the third quarter and for the year-to-date
period was consistent with management’s expectations because the
Corporation is not expected to generate significant revenue, except
during periods when the sale of lots is completed.
Highlights For The Third Quarter
In July, the Corporation received approval from Edmonton’s City
Council for the rezoning of Phase 1 to allow development for business
and light industrial uses, and the construction of a storm water
Management has been in discussions with senior administration from the
City of Edmonton to ensure the most efficient and cost effective
servicing solution is reached to address the servicing requirements
for the Winterburn Industrial Area, in accordance with the Winterburn
Industrial Area Master Plan (“AMP”); and
In August, the Corporation submitted a technical background and cost
analysis for a proposed servicing solution which was accepted in
principle in September.
Due to the seasonal nature of construction in Edmonton and the longer
than anticipated time to obtain approvals, no further construction is
expected to commence in 2012 due to unfavorable weather conditions. As a
result, the projected completion dates for the Phase 1 milestones are
behind the anticipated completion dates reported for the second quarter
of 2012. Construction will commence in spring 2013 when weather
conditions permit. Notwithstanding these delays for Phase 1, the
Corporation expects that it will be able to complete the overall project
within the approximate three-year time frame disclosed in the
Corporation’s prospectus, and remains on track for achieving an internal
rate or return of 13%.
Launched in 2011, the Corporation owns a two-phase industrial 131.4-acre
development in northwest Edmonton, Alberta, within the Winterburn
The Corporation is managed by Walton Asset Management L.P. and the
development of the property is managed by Walton Development and
Management L.P., both of which are members of the Walton Group.
The Walton Group is a multinational group of real estate investment and
development companies headquartered in Calgary, Alberta, Canada.
Walton’s expertise is the research, acquisition, management and
development of strategically located land in major North American growth
corridors. With more than 70,000 acres of land under management, the
Walton Group is one of North America’s premier land asset managers.
Walton manages and/or owns land assets in Phoenix, Austin, Dallas,
Atlanta, Charlotte, the Washington D.C. region, Ottawa, Toronto,
Edmonton and Calgary.
For more information about the Walton Yellowhead Development
Corporation, please visit www.sedar.com.
For more information about Walton, visit www.Walton.com.
This news release, required by Canadian laws, does not constitute an
offer of securities, and is not for distribution or dissemination
outside Canada. This news release contains forward looking information,
and actual future results may differ from what is disclosed in this news
release. The risks, uncertainties and other factors that could influence
results are described in the prospectus and other documents filed with
Canadian securities regulatory authorities and available online at www.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and
are based on unaudited financial statements for the period ended
September 30, 2012, and related notes, prepared in accordance with
International Financial Reporting Standards.