Genesis records net earnings of $10.1 million through first six months of 2007.



    TSX Stock Symbol: GDC

    CALGARY, Aug. 14 /CNW/ - Genesis Land Development Corp. ("Genesis" or the
"Company") is pleased to report financial results for the six months ended
June 30, 2007. Over the first six months of the year, Genesis recorded total
revenues of $46,581,559 (2006 - $27,864,971) producing after-tax earnings of
$10,140,106 (2006 - $6,452,377) or $0.22 (2006 - $0.14) basic and fully
diluted earnings per share. For the three months ended June 30, 2007, the
Company generated revenues of $23,793,769 (2006 - $3,559,924) resulting in
after-tax earnings of $5,959,649 (2006 - $211,016) or $0.13 (2006 - $0.00)
basic and fully diluted earnings per share. Revenues for the first six months
were generated from the sale of 116 lots to external builders and the closing
of 73 single-family homes. For the second quarter ended June 30, 2007, Genesis
sold a total of 54 lots to external builders and closed 35 single-family home
sales. Genesis recognized an average sales price of $316,548 per single-family
home sold and $197,278 per external lot sold over the first six months of
fiscal 2007. For the second quarter the average single-family home price was
$338,788 while the average price for external lot sold was $217,974. The
increased prices recognized for single-family home sales in the second quarter
are due to the recognition of more recent home sales in the Calgary and
Airdrie marketplaces which experienced increasing home prices through 2006 and
the first half of 2007. Similarly, lot prices increased in the Calgary and
Airdrie markets while the sales mix of lots during the second quarter included
an increased proportion of amenity lots sold in the Genesis communities of
Taralake and Bayside. Gross margins on revenues were $19,879,702 (43%) over
the first six months of 2007 as compared to $14,617,584 (53%) for the first
six months of 2006.
    As at June 30, 2007, Genesis had a cash balance of $12,796,880 compared
to $13,411,004 at December 31, 2006. Amounts receivable have nearly doubled
over the first six months of 2007 to a balance of $33,061,291 at June 30, 2007
compared to $16,886,228 at December 31, 2006. This increase is the result of
the sale of 116 external lots over the first six months of 2007 as compared to
a total of 70 external lot sales for the entire 2006 fiscal year. The balance
of debt/financings at June 30, 2007 was $30,696,921 compared to $20,090,558 at
December 31, 2006. The majority of this increase is the result of increased
shorter term land service financings occurring from the higher level of land
development activities in the Company's communities. Additionally, Genesis
Builder's Group, the Company's wholly-owned home building subsidiary, had
utilized $3,617,989 of an available $7,500,000 line of credit as at June 30,
2007 compared to no debt at December 31, 2006. This increase is the result of
rising levels of single-family home starts. The Company's debt to equity ratio
at June 30, 2007 was 0.29 exclusive of non-controlling interest and 0.64
inclusive of non-controlling interest.
    Genesis has added to its land inventory in Alberta recently with two land
acquisition agreements. The Company has gone unconditional on its purchase of
a 617 acre parcel in the hamlet of Delacour, just 10 kilometers east of
Calgary, for a total cost of $31,385,500 ($50,868 per acre). Approximately 306
of the 617 acres have area structure plan approval from the Municipal District
of Rockyview. Subsequent to the second quarter, Genesis closed the acquisition
of 122 acres of industrial lands 5 kilometers west of Edmonton for a total
cost of $12,855,150 ($105,370 per acre). These lands have
Industrial/Commercial Core District land use and are expected to be serviced
and marketed as developed industrial sites within the next one to two years.


    
                         UNAUDITED FINANCIAL SUMMARY
           Six Months Ended 30th of June, 2007 and 2006 (in $CAN)
    -------------------------------------------------------------------------
                                                        2007         2006
    -------------------------------------------------------------------------
    Assets                                          197,843,047  160,918,452
    -------------------------------------------------------------------------
    Liabilities                                      92,115,154   68,423,533
    -------------------------------------------------------------------------
    Shareholders Equity                             105,727,893   92,494,919
    -------------------------------------------------------------------------
    Revenue                                          46,581,559   27,864,971
    -------------------------------------------------------------------------
    Expenses                                         31,679,779   15,715,999
    -------------------------------------------------------------------------
    Earnings before taxes and
     non-controlling interest                        14,901,780   12,148,972
    -------------------------------------------------------------------------
    Net earnings                                     10,140,106    6,452,377
    -------------------------------------------------------------------------
    Earnings per share (basic & fully diluted)             0.22         0.14
    -------------------------------------------------------------------------
    Common Shares Outstanding                        46,112,690   45,895,940
    -------------------------------------------------------------------------
    

    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, 1-800-341-7211, Fax: (403) 266-0746, E-Mail:
genesis@genesisland.com, Internet: www.genesisland.com


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