Genesis achieves net earnings of $13.4 million through first six months of 2008



    CALGARY, Aug. 13 /CNW/ - Genesis Land Development Corp. ("Genesis" or the
"Company") is pleased to report financial results for the six months ended
June 30, 2008. Over the first two quarters of the year, Genesis recorded total
revenues of $51,343,117 as compared to $46,581,559 over the same period in
2007. This has produced after-tax earnings in 2008 of $13,487,999 or $0.29
basic and fully diluted earnings per share vs. $10,140,106 and $0.22 basic and
fully diluted earnings per share during the first six months of 2007.
    As at June 30, 2008, Genesis' cash balance increased to $12,452,183 from
$11,007,142 at December 31, 2007. Amounts receivable at June 30, 2008 were
$60,954,835 compared to $47,587,450 at December 31, 2007. The balance of
debt/financings at June 30, 2008 was $110,945,997 vs. $85,159,905 at December
31, 2007. At June 30, 2008 Genesis maintained a debt-to-equity ratio of 0.83
exclusive of non-controlling interest and 1.34 inclusive of non-controlling
interest.

    Land Development
    ----------------
    During the six months ended June 30, 2008, Genesis sold a total of 148
lots to external builders resulting in revenues of $26,242,504. Gross margins
from lot sales during this period were $16,274,991 (62%) as compared to gross
margins of $14,177,005 (62%) over the first six months of 2007. For the first
two quarters of 2008, the average price per lot was $177,314, down from an
average price per lot in the same period last year of $197,278. The reduced
price per lot is primarily a result of a different sales mix whereby fewer
amenity lots have been sold in 2008. With the summer development season in
full swing, Genesis expects to develop nearly 400 lots in the last half of
2008. This includes development in the Airdrie community of Bayside and
Calgary communities of Sage Meadows (NW Calgary) and Taralake (NE Calgary).

    Single-Family Home Building
    ---------------------------
    Genesis Builders Group closed the sale of a total of 58 single-family
homes in the six months ended June 30, 2008. Total revenues from single-family
home sales for the first two quarters were $24,367,095 (2007 - $23,107,993).
The average price of a single-family home sold in the first six months of 2008
was $420,122, up from the average price of $316,548 for the first two quarters
of 2007. This rise is a reflection of the increases in pre-sold house prices
that were experienced during 2007 in the Calgary real estate market. On the
strength of currently pre-sold homes and ample inventory of spec product
Genesis expects to increase quarterly single-family home sales in the second
half of 2008.

    Multi-Family Home Building
    --------------------------
    During the second quarter, Generations Group of Companies further
advanced construction and pre-sales on The Breeze, a 125 unit condo/town home
development in Airdrie, Alberta. Completion of the project is now scheduled
for early 2009. Pre-sales for this project continue with a showhome scheduled
for opening in September 2008.
    Five other multi-family projects have commenced planning and approvals
while the company carefully monitors the Calgary and surrounding area
multi-family marketplace before proceeding with construction.

    Commercial
    ----------
    Genesis' commercial division has not recorded any revenues to date in
2008, but is scheduled to close the sale of a large anchor store parcel in
2008 at the Sage Hill Crossing site in NW Calgary for total revenues exceeding
$22 million. The Company has also signed a letter of intent for the sale of a
second anchor store site. Conditional leases have been signed with national
retailers in the pharmaceutical, hardware, restaurant, grocery, coffee and
banking sectors for Sage Hill Crossing, the Company's largest retail
development with approximately 1.2 million square feet of retail. Genesis has
also received approval for approximately 1 million square feet of office space
at the Sage Hill Crossing site. Current suburban office vacancy rates in
Calgary are at 3.61% while the Northwest quadrant, where Sage Hill Crossing is
located, is at 1.81% with very little future office space expected to come
on-stream in the near term in the Northwest.
    The Calgary and surrounding area residential real estate market appears
to be in a transition year after two strong years in 2006 and 2007. The excess
inventory of single-family and multi-family homes that was created is
gradually being absorbed by housing demand that remains buoyed by a strong
economic environment. The strong economy in Alberta, which is producing the
lowest unemployment rate and highest per capita incomes in Canada, is keeping
the retail, office and industrial markets robust through 2008. Behind the
strength of a well positioned and largely approved land base, Genesis expects
2008 to be another strong year for earnings despite the rebalancing
residential real estate marketplace in its operating region.

    
                         UNAUDITED FINANCIAL SUMMARY
            Six Months Ended 30th of June, 2008 and 2007 (in $CAN)
           -------------------------------------------------------
                                            2008          2007
           -------------------------------------------------------
            Assets                      356,521,910   197,843,047
           -------------------------------------------------------
            Liabilities                 223,273,908    92,115,154
           -------------------------------------------------------
            Shareholders Equity         133,248,002   105,727,893
           -------------------------------------------------------
            Revenue                      51,343,117    46,581,559
           -------------------------------------------------------
            Expenses                     33,286,690    31,679,779
           -------------------------------------------------------
            Earnings before taxes and
             non-controlling interest    18,056,427    14,901,780
           -------------------------------------------------------
            Net earnings                 13,487,999    10,140,106
           -------------------------------------------------------
            Earnings per share (basic
             & fully diluted)                  0.29          0.22
           -------------------------------------------------------
            Common Shares Outstanding    46,035,690    46,112,690
           -------------------------------------------------------
           -------------------------------------------------------
    

    Genesis Land Development Corp. is a Calgary based land development
company with an inventory of more than 24,000 future residential building
sites (single-family and multi-family) and over 300 acres of
commercial/industrial lands in Western Canada, of which more than 14,000
residential lots and over 300 acres of commercial/industrial lands are located
in the Calgary metropolitan area.

    Certain statements in this news release could constitute forward-looking
statements. The Corporation's line of business involves risk, uncertainties
and other factors which may cause actual results, performance or achievements
of Genesis to be materially different from any future results, performance or
achievements expressed or implied by such forward looking statements. Such
factors include the number of dwelling sites that Genesis will actually
develop and sell.





For further information:

For further information: Frank Devcich, C.F.O., Genesis Land Development
Corp., Toll Free: (403) 265-8079, 1-800-341-7211, Fax: (403) 266-0746, E-Mail:
genesis@genesisland.com, Internet: www.genesisland.com


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