Business
Genesis records earnings of $6.76 million in 2009
Genesis records earnings of $6.76 million in 2009
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Mar. 31, 2010 (Canada NewsWire Group) -- /CNW/ -- Genesis Land Development Corp. (\"Genesis\" or the \"Company\") is pleased to report financial results for the fiscal year ended December 31, 2009. Total revenues for the year were $86,561,817 (2008 - $83,830,638) with net earnings of $6,755,931 (2008 - $9,284,181) or $0.15 per share (2008 - $0.20 per share). Residential home sales accounted for $62,712,690 (72%) of total fiscal 2009 revenues, while residential lot sales were $23,138,346 (27%) and interest and other income was $710,781 (1%). In 2008, 61% of Company revenues were from home sales ($50,759,835) with 38% of revenues generated from land and lot sales ($31,797,919) while interest income accounted for 1% of revenues ($1,272,884).Consolidated operating margins decreased in 2009 to 29% from 2008 margins of 48%. The decline in operating margins was primarily due to reductions in sales prices of single and multi-family homes sold during the year. As a result of weakening market conditions, Genesis aggressively reduced housing prices in order to move lot and housing inventory. General and administrative expenses, net of non-controlling interest allocations, were $10,235,000 in 2009 compared to $9,193,000 in 2008, an increase of $1,042,000 (11%), which is primarily due to higher fees for professional services incurred during the year.Genesis added to its raw and developed land base in 2009. Land held for future development and under development increased from $253,150,746 at December 31, 2008 to $300,147,850 at December 31, 2009, an increase of $46,997,104 or 19% before write-downs. The Corporation recognized write-downs of real estate in the amount of $7,642,349 and $6,961,905 during the years ended December 31, 2009 and 2008, respectively. The increase of $680,000 of 10% in the write-downs compared to prior year is primarily driven by continuing declines in valuation of certain real estate properties despite a general economic recovery of Alberta's real estate market during the second half of 2009. During the year ended December 31, 2009, the Corporation closed the $30,258,000 purchase of 1,476 acres of residential land at Delacour in the Municipal District of Rocky View, northeast of Calgary as well as the $20,733,000 limited partnership purchase of 319 acres of residential land at Airdrie.The Corporation ...