Business
Genesis achieves net earnings of $4.38 million in second quarter of 2009
TSX Stock Symbol: GDC CALGARY, Aug. 17 /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, Aug. 17 /CNW/ - Genesis Land Development Corp. ("Genesis" or the\n"Company") is pleased to report financial results for the three and six months\nended June 30, 2009. For the three months ended June 30, 2009, the Company\ngenerated revenues of $31.1 million as compared to $22.2 million over the same\nperiod in 2008, resulting in after-tax earnings of $4.39 million or $0.10\nbasic and fully diluted earnings per share for Q2-2009 while earnings for\nQ2-2008 were $5.39 million or $0.12 basic and fully diluted per share. During\nthe first six months of the year, Genesis recorded total revenues of $47.7\nmillion as compared to $51.3 million over the same period in 2008. This\nproduced after-tax earnings in 2009 of $6.75 million or $0.15 basic and fully\ndiluted earnings per share vs. $13.49 million and $0.29 basic and fully\ndiluted earnings per share during the first six months of 2008.\n\n\nAs at June 30, 2009, Genesis had a book value of $320.6 million for real\nestate held for development and sale. Of this total, land held for future\ndevelopment was $180.0 million, land under development was $120.9 million and\nhousing projects under development was $29.2 million.\n\n\nLand Development\n----------------\n\n\nDuring the first six months of 2009, Genesis sold a total of 86 lots to\nexternal builders resulting in revenues of $16.5 million. Gross margins during\nthis period were $9.0 million (55%), with an average price per lot of\n$191,000. Genesis completed a total of 203 external lot sales over the six\nmonths ended June 30, 2008 resulting in revenues of $26.2 million with an\naverage price per lot of $177,000. Gross margins during the first six months\nof 2008 were $16.3 million (62%). The higher price per lot in 2009 is a\nreflection of a greater portion of amenity lot sales occurring in 2009.\n\n\nDuring the second quarter, Genesis sold 56 lots to external builders with\n55 lots sold in the Calgary communities of Kincora, Sherwood and Taralake and\n1 lot sold in the Airdrie community of Bayside. The company has subsequently\nsold out its lots in the community of Taralake but continues to sell lots in\nthe communities of Kincora, Sherwood, Bayside and Canals from its inventory of\napproximately 200 serviced lots. With the increased demand in the Calgary\nMetropolit...