Business
Genesis Reports 2011 Second Quarter Results and a Restructuring of $54 million of Debt
TSE Stock Symbol: GDC CALGARY, Aug. 3, 2011 /CNW/ - Results of Operations Gen...
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\n\n\nTSE Stock Symbol: GDC\n\n\nCALGARY, Aug. 3, 2011 /CNW/ -\n\n\nResults of Operations\n\n\nGenesis Land Development Corp. (\"Genesis\" or the \"Company\") is pleased\n to report net earnings of $3.6 and $7.1 million or $0.08 and $0.16\n (basic and fully diluted) earnings per share on total revenues of $20.5\n and $48.4 million for the three and six months ended June 30, 2011\n (2010 - $66.2 and $84.2 million).\n\n\nThe Company achieved sales of 32 and 114 single-family lots during the\n three and six months ended June 30, 2011, primarily in the recently\n completed Phases 1 and 2 of the Calgary community of Sage Meadows and\n the Airdrie community of Bayside Phase 9, resulting in significantly\n higher lot revenues in comparison to the first six months of 2010.\n Genesis also sold 21 and 30 single- and 1 and 3 multi-family homes in\n the three and six months ended June 30, 2011, reporting lower\n home-building division sales volume in comparison to the same periods\n in 2010.\n\n\nDebt Restructuring\n\n\nGenesis has refinanced $54 million of its debt, freeing up $9 million of\n previously required annual principal repayments, and reducing its\n borrowing costs on these loans by 2.5%. Five existing loans, with\n varying maturities and capital repayment requirements have been\n consolidated into 3 loans which are not due for 30 months. The loans\n are interest only and bear interest at the greater of 7.2% or prime\n +4.2%. The security for the loans is unchanged. The elimination of the\n capital repayments reduces the need for Genesis to seek working capital\n loans as it works to improve its capital structure.\n\n\nOutlook\n\n\nGenesis is currently operating 6 show homes in 4 communities. And while\n new home closings in 2011 are expected to be below those of 2010 due to\n weather related delays in the completion of serviced lots and the\n showhomes, given the customer traffic Genesis is experiencing in the\n showhomes, it is believed the home closings volume will return to\n normal levels in 2012.\n\n\nThe land division has now completed servicing of the first two phases of\n NE Calgary community of Saddlestone, and has commenced servicing of\n phases 3 and 4 which will yield 132 lots with substantial completion\n expected late in 2011. It also expects to have 131 lots available for\n sale in Bayside 7. A third party b...