Business
Genesis Reports 2009 First Quarter Financial Results
(TSX: GDC) CALGARY, May 19 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Company") to...
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\n(TSX: GDC)\n\n\nCALGARY, May 19 /CNW/ - Genesis Land Development Corp. ("Genesis" or the\n"Company") today announced its financial results for the three months ended\nMarch 31, 2009.\n\n\nTotal revenue for the three months ended March 31, 2009 ("2009") was\n$16.6 million (2008-$29.2 million) with net earnings of $2.4 million\n(2008-$8.1 million) or $0.05 per share (2008-$0.18 per share). Residential\nhome sales were lower by 9% at $10.8 million and residential lot sales\ndeclined 67% to $5.5 million. Gross margin on residential homes was 29%\n(2008-35%) and gross margin before provision on residential lots 61%\n(2008-59%). The decline in gross margin on home sales was due primarily to\nselling prices on inventory constructed during a period of higher material and\nlabour costs.\n\n\nOn May 14, 2009, the Company obtained a conditional agreement to renew\nand extend a $23.4 million project financing facility, originally due April\n30, 2009, to May 31, 2010. The agreement is subject to the Company satisfying\ncertain conditions, including amendment of security for the loan and minimum\nscheduled repayments equal to the principal amount outstanding after giving\neffect to further loan draws. The remaining $2.9 million of financing that\nmatured on May 1, 2009 is pending.\n\n\nLand Development\n\n\nGenesis completed the sale of 30 residential lots to third party builders\n(97-2008), representing revenue of $5.5 million (2008-$16.9 million). Average\nselling price per lot was $183,000 compared to $174,000 a year earlier. The\nincrease in average sales price per lot, while affected by lower general price\nconditions, is primarily the result of sales mix that included higher priced\nlots. During the quarter, the Company collected amounts receivable that were\nsubject to an allowance for doubtful accounts in respect of nine lots and\nrecorded a new provision representing six lots for a net recovery of $184,000.\n\n\nAs reported, the Company has signed a $22 million conditional agreement\nof purchase and sale with an anchor store to be located at its Sage Hill\nCrossing shopping centre site. Progress continues to be made to satisfy the\nconditions under this agreement.\n\n\nSingle Family Home Building\n\n\nThe Company closed sales of 25 single family homes (29-2008). Average\nselling price for single ...