Genesis announces fourth quarter and full year 2006 financial results



    TSE Stock Symbol: GDC

    CALGARY, April 3 /CNW/ - Genesis Land Development Corp. ("Genesis" or the
"Company") is pleased to report financial results for the quarter and fiscal
year ended December 31, 2006. For the three months ended December 31, 2006,
Genesis revenues totaled $18,505,878 producing net earnings of $1,809,415
($0.04 per share). Total revenues for 2006 were $51,669,402 with net earnings
of $8,416,210 ($0.18 per share), compared to 2005 revenues of $35,697,993
leading to net earnings of $9,231,626 ($0.20 per share). Overall margins in
2006 of 44% were slightly behind 2005 margins of 46% as single-family home
building became a greater component of the sales mix in 2006. Residential
single-family home sales, net of lot revenue, accounted for $16,531,551 (32%)
of total 2006 revenues, while land and lot sales were $34,382,235 (67%) and
interest and other income was $755,616 (1%). In 2005, 98% of Company revenues
were from lot sales.
    The fourth quarter of 2006 was notable for Genesis as the Company began
to experience significant expansion of its single-family home building
subsidiary. The Genesis Builders Group Inc. ("GBGI"; formerly Reliant Homes
Inc.) closed 37 home sales in the final three months of the year resulting in
revenues and gross margins (net of lot portion of sales) of $9,938,446 and
$1,883,202 (19% of sales) respectively. More than half of the 70 single-family
home sales in 2006 were completed in the final quarter with further sales
growth, over 180 single-family home closings, forecast for 2007. The average
price per single family home sold in the fourth quarter (net of lot portion of
sales) was $268,607. Margins are expected to increase in 2007 as further
increases in housing prices in the Calgary market are realized and the Company
experiences cost savings from economies of scale.
    Genesis' land division completed 63 residential lot sales to third-party
builders in the fourth quarter of 2006 resulting in external lot revenues of
$8,834,498 ($140,230 per lot) and gross margins of $5,212,707 (59%). A total
of 81 external lot sales were completed in 2006, with 64 in Calgary, 5 in
Airdrie and 12 in Brooks, Alberta. Overall land margins in 2006, including
internally recognized residential lot sales and the sale of the North Calgary
Commercial Campus property in the first quarter, were 55%, up from 46% in
2005. The Company did not sell lots externally in the second and third
quarters of 2006 as the internal single-family home building operations were
assessing the Genesis lot inventory. As GBGI continues to gradually grow its
operations, Genesis will continue to externally sell lots produced in excess
of GBGI's needs. With over 1,000 single-family lots forecast to be produced in
2007, the Company is expecting to sell approximately 370 lots to outside
builders, predominantly in the third and fourth quarters, while maintaining
sufficient inventory for GBGI's housing starts. Going forward, GBGI will
absorb all the lots possible of the Company's inventory of over 10,000
approved and anticipated zoned single-family lots with the excess to be sold
externally as they are available.
    General and administrative costs increased in 2006 to $7,527,950 from
$4,210,646 in 2005, an increase of $3,317,304 or 79%. This increase was
primarily the result of the costs incurred as a result of the Company's
limited partnership offerings and the acquisition of a private home building
company in July 2006 and the subsequent growth in home building operations.
Genesis headcount rose by 209% during 2006 from 23 full time staff to 71 at
December 31, 2006. This increase is reflective of the Company's positioning
for future growth from the vertical integration model adopted in 2006, which
augments the traditional land development business with single-family,
multi-family and commercial development operations.
    Genesis generated cash flow from operations of $10,780,050 in 2006 as
compared to $6,365,730 in 2005. The increased cash flows were applied in large
part to a reduction of financing liabilities as Genesis continued to further
strengthen its balance sheet. Financing liabilities were reduced from
$43,436,383 at December 31, 2005 to $20,090,558 at December 31, 2006. Land
project loans, which are shorter term financings payable on the collection of
agreements receivable, were $19,144,187 thereby making up 95% of the debt as
at December 31, 2006. Genesis' home building subsidiary, GBGI, increased its
operating line during the year to $7,500,000 of which no debt was drawn as at
December 31, 2006. Genesis closed 2006 with a cash balance of $13,411,004, an
increase of $9,931,540 from the December 31, 2005 balance of $3,479,464.
    Operations began in 2006 on the Company's multi-family home building and
commercial divisions. Genesis' lot inventory of over 13,000 approved and
anticipated zoned multi-family dwelling sites is expected to begin generating
revenues beginning in 2008 as planning and design has begun on a number of
projects already in 2007. Genesis remains very excited about its future
commercial operations, particularly the Sage Hill Crossing commercial
property. Stripping and grading and off-site work has begun on this site and a
major anchor store deal is expected to close in the second quarter on Phase 1
of the project. A number of other strong retailers have expressed interest
and/or signed letters of intent.
    On March 20, 2007, Genesis transferred into trust the remaining amounts
owed on the total cost of $5,700,000 for the acquisition of 1,140 acres of raw
land near the resort town of Radium, British Columbia. On September 27, 2006,
Genesis received approval for Phase 1 development (comprising of 273 lots plus
a golf course) on these lands. Phase 1 development is anticipated to be
started by summer 2007. The Company continues to seek new lands to add to its
inventory and presently has a number of offers outstanding on potential land
acquisitions.

    
                          AUDITED FINANCIAL SUMMARY
             Year Ended 31st of December, 2006 and 2005 (in $CAN)
    -------------------------------------------------------------------------
                                                       2006          2005
    -------------------------------------------------------------------------
    Assets                                         170,533,812   160,262,633
    -------------------------------------------------------------------------
    Liabilities                                     75,614,076    75,617,364
    -------------------------------------------------------------------------
    Shareholders Equity                             94,919,736    84,645,269
    -------------------------------------------------------------------------
    Revenue                                         51,669,402    35,697,993
    -------------------------------------------------------------------------
    Expenses                                        38,339,764    23,642,641
    -------------------------------------------------------------------------
    Earnings before taxes and non-controlling
     interest                                       13,329,638    12,055,352
    -------------------------------------------------------------------------
    Net earnings                                     8,416,210     9,231,626
    -------------------------------------------------------------------------
    Earnings per share (basic & fully diluted)            0.18          0.20
    -------------------------------------------------------------------------
    Common Shares Outstanding                       46,102,190    46,345,940
    -------------------------------------------------------------------------
    

    Genesis Land Development Corp. is a Calgary based land development
company with an inventory of more than 23,000 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, 1-800-341-7211, Fax: (403) 266-0746, E-Mail:
genesis@genesisland.com; Internet: www.genesisland.com


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