Genesis achieves record financial results in 2007

About this update from Genesis Land Development Corp.

[{"type":"text","content":"\n\n\n\nTSX Stock Symbol: GDC\n\n\nCALGARY, March 31 /CNW/ - Genesis Land Development Corp. ("Genesis" or\nthe "Company") is pleased to report financial results for the fiscal year\nended December 31, 2007. Total revenues for the year were $98,974,402 (2006 -\n$51,655,128) with after-tax earnings of $23,217,665 (2006 - $8,416,210) or\n$0.50 per share (2006 - $0.18 per share). Consolidated operating margins\nincreased in 2007 (46%) from 2006 (44%). Residential single-family home sales\naccounted for $48,722,228 (49%) of total fiscal 2007 revenues, while\nresidential lot sales were $49,054,112 (50%) and interest and other income was\n$1,198,062 (1%). In 2006, 37% of Company revenues were from single-family home\nsales ($19,013,008) with 62% of revenues generated from land and lot sales\n($31,886,504), while interest income accounted for 1% of revenues ($755,616).\n\n\nGeneral and administrative costs ("G & A") increased in 2007 to\n$11,425,113 from $7,527,950 in 2006, an increase of $3,897,163 or 52%. This\nincrease was primarily the result of increased activity from the Company's\nEquity Investment division involved in limited partnership arrangements used\nas financing vehicles for raw land acquisitions in 2007. These limited\npartnership expenses are offset by the non-controlling interest allocation to\nthe limited partners on the income statement. Additionally, increased growth\nin home building operations contributed to the remainder of the increase in\nG & A charges.\n\n\nFor the three months ended December 31, 2007, Genesis revenues totaled\n$22,591,690 (2006 - $18,397,731) producing after-tax earnings of $4,367,367\n(2006 - $1,808,816) or $0.09 per share (2006 - $0.04 per share). Gross margins\nin the fourth quarter of 2007 were 54% on residential lot sales and 20% on\nresidential single-family home sales for a combined margin of 42% on lot and\nhome sales. For the final quarter of 2006, gross margins were 47% on\nresidential lot sales and 19% on residential single-family home sales for a\ncombined margin of 33% on lot and home sales.\n\n\nGenesis added substantially to its raw and developed land base in 2007.\nReal estate held for development and sale increased from $130,084,381 at\nDecember 31, 2006 to $221,264,426 at December 31, 2007, an increase of\n$91,180,045 or 70%. More specif...

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