Business
Genesis achieves net earnings of $13.4 million through first six months of 2008
CALGARY, Aug. 13 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Company") is pleased t...
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Aug. 13 /CNW/ - Genesis Land Development Corp. ("Genesis" or the\n"Company") is pleased to report financial results for the six months ended\nJune 30, 2008. Over the first two quarters of the year, Genesis recorded total\nrevenues of $51,343,117 as compared to $46,581,559 over the same period in\n2007. This has produced after-tax earnings in 2008 of $13,487,999 or $0.29\nbasic and fully diluted earnings per share vs. $10,140,106 and $0.22 basic and\nfully diluted earnings per share during the first six months of 2007.\n\n\nAs at June 30, 2008, Genesis' cash balance increased to $12,452,183 from\n$11,007,142 at December 31, 2007. Amounts receivable at June 30, 2008 were\n$60,954,835 compared to $47,587,450 at December 31, 2007. The balance of\ndebt/financings at June 30, 2008 was $110,945,997 vs. $85,159,905 at December\n31, 2007. At June 30, 2008 Genesis maintained a debt-to-equity ratio of 0.83\nexclusive of non-controlling interest and 1.34 inclusive of non-controlling\ninterest.\n\n\nLand Development\n\n\n----------------\n\n\nDuring the six months ended June 30, 2008, Genesis sold a total of 148\nlots to external builders resulting in revenues of $26,242,504. Gross margins\nfrom lot sales during this period were $16,274,991 (62%) as compared to gross\nmargins of $14,177,005 (62%) over the first six months of 2007. For the first\ntwo quarters of 2008, the average price per lot was $177,314, down from an\naverage price per lot in the same period last year of $197,278. The reduced\nprice per lot is primarily a result of a different sales mix whereby fewer\namenity lots have been sold in 2008. With the summer development season in\nfull swing, Genesis expects to develop nearly 400 lots in the last half of\n2008. This includes development in the Airdrie community of Bayside and\nCalgary communities of Sage Meadows (NW Calgary) and Taralake (NE Calgary).\n\n\nSingle-Family Home Building\n\n\n---------------------------\n\n\nGenesis Builders Group closed the sale of a total of 58 single-family\nhomes in the six months ended June 30, 2008. Total revenues from single-family\nhome sales for the first two quarters were $24,367,095 (2007 - $23,107,993).\nThe average price of a single-family home sold in the first six months of 2008\nwas $420,122, up from the average price of $316,548 for the first tw...