Business
Genesis achieves net earnings of $17.6 million through first nine months of 2008
TSX Stock Symbol: GDC CALGARY, Nov. 14 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "...
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nTSX Stock Symbol: GDC\n\n\nCALGARY, Nov. 14 /CNW/ - Genesis Land Development Corp. ("Genesis" or the\n"Company") is pleased to report financial results for the nine months ended\nSeptember 30, 2008. Over the first three quarters of the year, Genesis\nrecorded total revenues of $80,233,310 as compared to $76,382,712 over the\nsame period in 2007. This produced after-tax earnings in 2008 of $17,651,556\nor $0.38 basic and fully diluted earnings per share vs. $18,850,298 and $0.41\nbasic and fully diluted earnings per share during the first nine months of\n2007.\n\n\nAs at September 30, 2008, Genesis had a cash balance of $9,718,832\ncompared to $11,007,142 at December 31, 2007. Amounts receivable at September\n30, 2008 were $55,100,888 compared to $47,587,450 at December 31, 2007. The\nbalance of debt/financings at September 30, 2008 was $111,853,054 compared to\n$85,159,905 at December 31, 2007. At September 30, 2008 Genesis maintained a\ndebt to equity ratio of 1.16 exclusive of non-controlling interest and 1.66\ninclusive of non-controlling interest.\n\n\nLand Development\n----------------\n\n\nDuring the nine months ended September 30, 2008, Genesis sold a total of\n206 lots to external builders resulting in revenues of $36,532,608 before\naccounts receivable write-downs. In the third quarter of 2008, Genesis wrote\ndown a total of $5,794,837 of accounts receivable on 32 lot sales which have\nbeen deemed uncollectible. Genesis retains ownership of these lots and the 15%\ndeposit paid by the purchaser. During the third quarter of 2008, Genesis sold\na total of 140 lots, of which, 107 lot sales were sold to a third party\nnon-builder corporation for total proceeds of $23 million. Due to the nature\nof this sale to a new corporate entity in the current economic environment,\nonly 21 of the 107 lot sales have been recorded in the current quarter.\nRevenue for this sale has been recognized using the instalment method of\nrevenue recognition, whereby revenues recorded are based on the cash received\nto date ($4.5 million). Gross margins on lots sales during the first nine\nmonths of 2008 were $23,167,255 (63%) as compared to gross margins of\n$26,249,000 (65%) over the first nine months of 2007. The average price per\nlot sold during the first three quarters of 2008 was $177,340 as compared to\nan average...