Genesis achieves record net earnings of $24.79 million in first six months of
2010

TSX Stock Symbol: GDC

CALGARY, Aug. 9 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Company") is pleased to report financial results for the six months ended June 30, 2010. Over the first six months of the year, Genesis recorded total revenues of $84.50 million as compared to $47.72 million over the same period in 2009. This produced after-tax earnings of $24.79 million or $0.56 basic and fully diluted earnings per share vs. $6.75 million or $0.15 basic and fully diluted earnings per share during the first six months of 2009.

For the three months ended June 30, 2010, the Company generated revenues of $66.44 million as compared to $31.12 million over the same period in 2009, resulting in after-tax earnings of $22.80 million or $0.52 basic and $0.51 fully diluted earnings per share for Q2-2010. Earnings for Q2-2009 were $4.39 million or $0.10 basic and fully diluted per share. The second quarter results for 2010 were buoyed by the $35 million sale of +/- 147 acres of fully approved lands in North Calgary. This sale produced gross margins of $23.5 million before taxes.

Genesis continues to strengthen its balance sheet in 2010. As at June 30, 2010, the Company's financings were $85.75 million as compared to $115.21 million at December 31, 2009.

Mr. Gobi Singh is quoted as saying: "I am very excited about achieving record earnings; however management's focus continues to be debt repayment. These strategic sales are a part of our ongoing plan to reduce overall corporate indebtedness and surface shareholder value through a strengthened balance sheet".

    
    Land Development
    ----------------
    

During the first six months of 2010, the Corporation sold two residential development land parcels in the city of Calgary, Alberta for a combined total of $39.06 million. Revenues from the Corporation's sale of serviced residential lots during the first six months of 2010 decreased to $9.09 million from 47 lot sales as compared to $16.45 million from 86 lot sales during the same period last year. The average price per lot sold in the first six months of 2010 and 2009 was $193,000 and $191,000 respectively. Gross margins during the first six months of 2010 were $5.66 million (62%), compared to $9.02 million (55%) over the first six months of 2009.

Genesis is currently servicing residential lots in the communities of Sage Meadows in NW Calgary and Saddlestone in NE Calgary where the Company has pre-sold 175 lots. Within the 3rd quarter of 2010, the Company also expects to complete servicing on an additional 250 serviced lots in the Bayside 7 and Bayside 9 developments in Airdrie.

    
    Single-Family Home Building
    ---------------------------
    

Genesis Builders Group ("GBG") recorded a total of 57 home sales for the first six months of 2010 compared to 60 for the same period last year. Of the first six months of 2010 sales, 25, 12 and 3 were sold in the Calgary communities of Kincora, Sherwood and Taralake, respectively, and 17 were sold in the Airdrie community of Bayside. During the three months ended June 30, 2010, GBG closed 39 single-family home sales, representing the largest number of quarterly single-family home closings in the Company's history. For the first six months of 2010, the average selling price per single-family home was $438,000 compared to an average selling price of $394,000 for the same period last year.

    
    Multi-Family Home Building
    --------------------------
    

The multi-family home building division closed 38 (2009 - 29) home sales in the first six months of 2010 at an average selling price of $232,000 per home compared to $248,000 for the same period last year. All sales occurred at The Breeze, a 125 unit condominium project in Airdrie. The decrease in the average selling price reflects the mix of units remaining and the current state of Alberta's multi-family real estate segment during 2010. Subsequent to June 30, 2010, a sale of one additional unit has closed for the project. There are a total 9 units that remain unsold in The Breeze project.

    
                         UNAUDITED FINANCIAL SUMMARY
                 Six Months Ended 30th of June, 2010 and 2009
         (all tabular amounts are in thousands of dollars except per
                     share amounts and number of shares)

    -------------------------------------------------------------------------
                                                            2010        2009
    -------------------------------------------------------------------------
    Assets                                               345,574     364,941
    -------------------------------------------------------------------------
    Liabilities                                          186,914     232,013
    -------------------------------------------------------------------------
    Shareholders Equity                                  158,660     132,928
    -------------------------------------------------------------------------
    Revenue                                               84,498      47,722
    -------------------------------------------------------------------------
    Expenses                                              50,545      40,010
    -------------------------------------------------------------------------

    Earnings before taxes and non-controlling interest    33,953       7,713

    -------------------------------------------------------------------------
    Net earnings                                          24,786       6,749
    -------------------------------------------------------------------------
    Earnings per share (basic & fully diluted)              0.56        0.15
    -------------------------------------------------------------------------
    Common Shares Outstanding                         44,306,759  44,111,757
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

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.

Cautionary Statement Regarding Forward-Looking Information

"This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"). Forward looking statements include the 75 and 90 lots which were pre-sold and whether these sales will be realized in a timely basis and the number of dwelling sites that Genesis will actually develop and sell. Although Genesis believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Genesis. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement."

SOURCE Genesis Land Development Corp.

For further information: For further information: Gobi Singh, C.E.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


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890