Business
Genesis achieves net earnings of $7.47 million in first nine months of 2009
Genesis achieves net earnings of $7.47 million in first nine months of 2009
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nNov. 16, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 16 /CNW/ -- Genesis Land Development Corp. (\"Genesis\" or the \"Company\") is pleased to report financial results for the nine months ended September 30, 2009. Over the first nine months of the year, Genesis recorded total revenues of $68,343,466 as compared to $75,733,310 over the same period in 2008. This produced after-tax earnings in 2009 of $7,469,664 or $0.17 basic and fully diluted earnings per share vs. $15,815,920 and $0.34 basic and fully diluted earnings per share during the first nine months of 2008. For the three months ended September 30, 2009, the Company generated revenues of $20,621,319 as compared to $24,390,193 over the same period in 2008, resulting in after-tax earnings of $720,873 or $0.02 basic and fully diluted earnings per share for Q3-2009 while earnings for Q3-2008 were $2,327,921 or $0.05 basic and fully diluted per share. In the third quarter of 2009, Genesis wrote down $1,559,355 of real estate held for development and sale which has an approximate after tax earnings impact of $1,100,000 ($0.03 per share) with real estate write-downs for the first nine months of the year totaling $4,153,684. In the first nine months of 2008, the Company wrote down $120,740 of real estate.As at September 30, 2009, Genesis had a book value of $310,215,338 for real estate held for development and sale. Of this total, land held for future development was $180,416,225, land under development was $118,919,298 and housing projects under development was $21,916,684 with total cumulative write-downs to date of $11,036,869 on all real estate. The balance of financings at September 30, 2009 was $109,236,516 compared to $132,704,174 at December 31, 2008. Genesis has reduced its debt balance over the course of 2009 by $23,467,658. Of this reduction, $8,042,805 relates to financing for the multi-family projects which have a September 30, 2009 debt balance of $14,390,657. Land projects loans were reduced by $10,380,669 during 2009 and at September 30, 2009, land project loans tied to the collection of proceeds from lot sales comprise $63,086,539 of the September 30, 2009 financings total.Land Development----------------During the first nine months of 2009, Genesis sold a total of 101 lots to external builders resulting in revenues of $19,163,871. Gross margins during ...