CALGARY, May 19 /CNW/ - Genesis Land Development Corp. ("Genesis" or the
"Company") today announced its financial results for the three months ended
March 31, 2009.
Total revenue for the three months ended March 31, 2009 ("2009") was
$16.6 million (2008-$29.2 million) with net earnings of $2.4 million
(2008-$8.1 million) or $0.05 per share (2008-$0.18 per share). Residential
home sales were lower by 9% at $10.8 million and residential lot sales
declined 67% to $5.5 million. Gross margin on residential homes was 29%
(2008-35%) and gross margin before provision on residential lots 61%
(2008-59%). The decline in gross margin on home sales was due primarily to
selling prices on inventory constructed during a period of higher material and
On May 14, 2009, the Company obtained a conditional agreement to renew
and extend a $23.4 million project financing facility, originally due April
30, 2009, to May 31, 2010. The agreement is subject to the Company satisfying
certain conditions, including amendment of security for the loan and minimum
scheduled repayments equal to the principal amount outstanding after giving
effect to further loan draws. The remaining $2.9 million of financing that
matured on May 1, 2009 is pending.
Genesis completed the sale of 30 residential lots to third party builders
(97-2008), representing revenue of $5.5 million (2008-$16.9 million). Average
selling price per lot was $183,000 compared to $174,000 a year earlier. The
increase in average sales price per lot, while affected by lower general price
conditions, is primarily the result of sales mix that included higher priced
lots. During the quarter, the Company collected amounts receivable that were
subject to an allowance for doubtful accounts in respect of nine lots and
recorded a new provision representing six lots for a net recovery of $184,000.
As reported, the Company has signed a $22 million conditional agreement
of purchase and sale with an anchor store to be located at its Sage Hill
Crossing shopping centre site. Progress continues to be made to satisfy the
conditions under this agreement.
Single Family Home Building
The Company closed sales of 25 single family homes (29-2008). Average
selling price for single family homes was $394,000 compared to $408,000 a year
Multi-Family Home Building
The Company's multi family home building division closed three sales in
2009 (nil-2008). Construction at the Breeze, a 125 unit condominium project in
Airdrie, Alberta is expected to be complete in the second quarter of 2009.
Presales for this project represent approximately 25% of unit inventory.
- During the quarter ended March 31, 2009, the Company completed the
purchase of 1,476 acres in Delacour (north east Calgary).
- On April 9, 2009, the Company completed the acquisition of 319 acres
- On February 2, 2009, the Company completed a $5.6 million financing
maturing January 31, 2010.
- $12 million of financing was renewed on March 10, 2009 with a
maturity date of May 1, 2010.
- On April 9, 2009, the Company completed a $6.1 million financing due
one year from the date of advance; approximately $2.2 million has
since repaid from the proceeds of sale of inventory.
- On April 16, 2009 the Company entered in to a $5.1 million financing
agreement that has since closed.
About Genesis Land Development Corp.
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
sites and over 300 acres of commercial/industrial lands are located in the
Calgary metropolitan area.
This news release contains certain statements or disclosures that may
constitute forward-looking information under applicable securities laws. All
statements and disclosures, other than those of historical fact, which address
activities, events, outcomes, results or developments that the Company
anticipates or expects may or will occur in the future (in whole or in part)
should be considered forward-looking information. In some cases,
forward-looking information can be identified by terms such as "forecast",
"future", "may", "will", "expect", "anticipate", "believe", "potential",
"enable", "plan", "continue", "contemplate", "pro forma" or other comparable
terminology. Forward-looking information presented in such statements or
disclosures may, among other things, relate to: sources of income; forecasts
of capital expenditures and the sources of the financing thereof; expectations
regarding the ability of the Company to raise capital; movements in currency
exchange rates; anticipated income taxes; the Company's business outlook;
plans and objectives of management for future operations; forecast business
results; and anticipated financial performance.
For further information:
For further information: Dale Kearns, Interim Chief Financial Officer,
(403) 265-8079, email@example.com, www.genesisland.com