Genesis Reports 2008 Financial Results

About this update from Genesis Land Development Corp.

[{"type":"text","content":"\n\n\n\n(TSX: GDC)\n\n\nCALGARY, April 30 /CNW/ - Genesis Land Development Corp. ("Genesis" or\nthe "Company") today announced its financial results for the fiscal year ended\nDecember 31, 2008.\n\n\nTotal revenue for the fiscal year was $83.8 million (2007-$99.0 million)\nwith net earnings of $9.3 million (2007-$23.2 million) or $0.20 per share\n(2007-$0.50 per share). Residential home sales increased by 4% to $50.8\nmillion and residential lot sales declined 35% to $31.8 million. Gross margin\non residential home sales was 38% (2007-29%) and gross margin before provision\non residential lot sales 63% (2007-63%). Net earnings for the year were\nadversely affected by $13.4 million in provisions on third party builder\nagreements receivable.\n\n\nTotal revenue for the fourth quarter was $8.1 million (2007-$22.6\nmillion) with net loss of $6.5 million or $0.15 per share (2007-net earnings\nof $4.4 million or $0.09 per share). Substantially all revenue in the fourth\nquarter was derived from residential home sales. Gross margins on residential\nhome sales were 43% (2007-35%). The financial results were adversely impacted\nby provisions on third party builder agreements receivable of $10.3 million.\nUnder those receivable agreements, in the event of overdue collections the\nresidential lots may be reclaimed by Company and the builder forfeits its\ndeposit, generally equal to 15% of the selling price.\n\n\nResidential Land Development\n\n\nDuring the 2008 fiscal year, Genesis completed the sale of 173\nresidential lots to third party builders (234-2007), representing revenue of\n$31.8 million (2007-$49.1 million). Due to the recent slowdown in residential\nhousing sales in Alberta and elsewhere, certain third party builders were\nunable to meet their building obligations under lot sale agreements pertaining\nto 97 lots, resulting in an agreements receivable provision of $18.5 million\nof which $13.4 million was charged to earnings.\n\n\nSingle Family Home Building\n\n\nThe Company closed 113 sales of single family homes during the fiscal\nyear (135-2007). Revenue from the sale of single family homes was $50.8\nmillion compared to $48.7 million in the previous year, an increase of 4%.\nAverage selling price for single family homes was $403,000 compared to\n$361,000 in the previous year.\n\n\nMulti-Family Home Build...

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