Genesis achieves record net earnings of $8.7 million in third quarter of 2007



    TSX Stock Symbol: GDC

    CALGARY, Nov. 14 /CNW/ - Genesis Land Development Corp. ("Genesis" or the
"Company") is pleased to report financial results for the nine months ended
September 30, 2007. Over the first nine months of the year, Genesis recorded
total revenues of $76,382,712 as compared to $33,257,397 over the same period
in 2006. This produced after-tax earnings in 2007 of $18,850,298 or $0.41
basic and fully diluted earnings per share vs. $6,607,394 and $0.14 basic and
fully diluted earnings per share during the first nine months of 2006. For the
three months ended September 30, 2007, the Company generated revenues of
$29,801,153 as compared to $5,392,426 over the same period in 2006, resulting
in after-tax earnings of $8,710,192 or $0.19 basic and fully diluted earnings
per share for Q3-2007 while earnings for Q3-2006 were $155,016 or $0.00 basic
and fully diluted per share.
    As at September 30, 2007, Genesis had a cash balance of $14,961,851
compared to $13,411,004 at December 31, 2006. Amounts receivable at
September 30, 2007 were $44,012,314 compared to $16,886,228 at December 31,
2006, on the strength of 203 lot sales to external builders through the first
nine months of 2007. Genesis continues to maintain a strong balance sheet at
September 30, 2007 with a debt to equity ratio of 0.35 exclusive of
non-controlling interest and 0.77 inclusive of non-controlling interest. The
balance of debt/financings at September 30, 2007 was $39,592,071 compared to
$20,090,558 at December 31, 2006. Shorter term, land service project financing
accounts for $33,862,961 of the financings total. These financings are paid
off as lots associated with the specific financing are sold. Of the remaining
debt, Genesis Builders Group ("GBG"), the Company's wholly-owned single-family
home building subsidiary, had utilized $4,973,265 of an available $7,500,000
line of credit as at September 30, 2007.

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

    During the third quarter ended September 30, 2007, Genesis sold a total
of 87 lots to external builders resulting in revenues of $18,006,511. Gross
margins during this period were $12,213,979 (68%), with an average price per
lot of $206,971. Genesis completed a total of 203 external lot sales over the
nine months ended September 30, 2007 resulting in revenues of $40,890,817 with
an average price per lot of $201,432. Gross margins during the first nine
months of 2007 were $26,248,384 (65%).
    During the third quarter, Genesis acquired a 122 acre
industrial/commercial land parcel located on Highway 16A in Parkland County,
Alberta, approximately 5 kilometers west of the City of Edmonton. The total
purchase price for the property was $12,855,150 (approximately $105,000 per
acre). An independent valuation report commissioned by Genesis provided an
appraised serviced retail value of the potential sites of $37,300,000
(approximately $305,737 per serviced acre). The Company intends to service and
market the property as developed industrial sites within the next one to two
years and estimates that the land servicing costs will be approximately
$80,000 to $100,000 per acre. On October 15, 2007, Genesis completed the
acquisition of 617 acres of land in the hamlet of Delacour, located
10 kilometers east of Calgary, for $31,385,500 (approximately $50,867 per
acre). Of these lands, 306 acres are approved by the Municipal District of
Rockyview for development under an area structure plan. The Company used
proceeds raised in a Limited Partnership offering as well as a loan totaling
$18,831,300 to finance the acquisition. The loan will be repaid by October
2008 from further proceeds raised by the Limited Partnership offering.

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

    Genesis Builders Group closed the sale on a total of 26 single-family
homes in the three months ended September 30, 2007 for total closings of 99
over the first nine months of the year. Total revenues from single-family home
sales in the third quarter were $11,737,152, while the nine month year-to-date
total is $34,485,145. The average price of a single-family home sold in the
third quarter was $451,429, up from the second quarter average of $338,788.
This rise is a reflection of the increase in house prices that was experienced
during 2007 in the Calgary real estate market, as well as a significant
percentage of homes that closed in the community of Sherwood where sales
prices are above average.
    Presently, GBG has in excess of 100 homes under construction, 42 of which
have been pre-sold, with delivery of these homes expected over the next 6
months. While the average single-family home price has softened over the last
few months in Calgary, forecasts from Canada Mortgage and Housing Corp.
("CMHC") call for modest price increases for new homes in the Calgary area in
2008. This is based on a strong, energy-driven local economy with minimal
impact from the recent sub-prime crisis in the United States, based on a more
regulated Canadian mortgage marketplace.

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

    Generations Developments ("Generations") has begun construction on The
Breeze, a 125 unit condo development in Airdrie, Alberta. Pre-sales for this
project will begin in the fourth quarter of 2007 with completion of
construction and sales closings expected in the latter half of 2008.
Additionally, planning has commenced on five other multi-family projects
totaling 1,630 units with construction start dates forecast in 2008 and 2009.

    Commercial
    ----------

    Genesis recently signed a purchase and sale agreement for the sale of
commercial land to a large anchor store at its Sage Hill Crossing shopping
center site for total proceeds exceeding $22 million. The transaction is
forecast to close during the summer of 2008 with the anchor store planning to
open early in 2009. The interest shown in Sage Hill Crossing from this and
other retailers has been exceptional and the Company expects to successfully
sign numerous leases and another land sale deal in the near future.

    
                         UNAUDITED FINANCIAL SUMMARY
         Nine Months Ended 30th of September, 2007 and 2006 (in $CAN)
    -------------------------------------------------------------------------
                                                  2007              2006
    -------------------------------------------------------------------------
    Assets                                     241,491,523       170,818,727
    -------------------------------------------------------------------------
    Liabilities                                127,358,273        78,306,278
    -------------------------------------------------------------------------
    Shareholders Equity                        114,133,250        92,512,449
    -------------------------------------------------------------------------
    Revenue                                     76,382,712        33,257,397
    -------------------------------------------------------------------------
    Expenses                                    49,573,482        21,150,005
    -------------------------------------------------------------------------
    Earnings before taxes and non-controlling
     interest                                   26,809,230        12,107,392
    -------------------------------------------------------------------------
    Net earnings                                18,850,298         6,607,394
    -------------------------------------------------------------------------
    Earnings per share (basic & fully diluted)        0.41              0.14
    -------------------------------------------------------------------------
    Common Shares Outstanding                   46,019,190        46,042,190
    -------------------------------------------------------------------------
    

    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 13,000 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, (800) 341-7211, Fax: (403) 266-0746, E-Mail:
genesis@genesisland.com; Internet: www.genesisland.com


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