Genesis Reports 2013 Third Quarter Results

About this update from Genesis Land Development Corp.

[{"type":"text","content":"\n\n\nCALGARY, Nov. 7, 2013 /CNW/ - Genesis Land Development Corp. (TSX: GDC)\n (the \"Corporation\" or \"Genesis\") is pleased to report its financial and\n operating results for the three months and nine months ended September\n 30, 2013.\n\n\nSummary\n\n\n\nCash flows from operating activities per share for the three and nine\n months ended September 30, 2013 were $0.06 and $1.19 compared to $0.02\n and $0.32 for the same periods in 2012. This increase was mainly due to\n receipt of payments from purchasers of residential lots and homes and\n the receipt of $27,713,000 from the sale of sites 1 and 2 in the Sage\n Hill Crossing commercial development.\n\n\n\n\nManagement's core strategy to \"build a strong, profitable and\n sustainable home building operation\", alongside its successful land\n development operation, is already showing results as revenues from the\n home building segment increased significantly from $7,366,000 to\n $16,915,000 and $25,593,000 to $46,902,000 in the three and nine months\n ended September 30, 2013 compared to the same periods in 2012. The\n number of homes sold increased dramatically from 18 to 40 and 57 to 122\n in the three and nine months ended September 30, 2013 compared to the\n same periods in 2012.\n\n\n\n\nThe Corporation's strategy is to sell more lots through its home\n building segment and thus realize both the land development margin and\n the home building margin.  In the short term, land development revenue\n declines as those lots sold through the home building division, and\n related profits, are not recognized until the home is built and sold.\n This accounts for a significant portion of the decline in residential\n lot sales to third parties from 28 to 17 and 192 to 88 for the three\n and nine months ended September 30, 2013 compared to the same periods\n in 2012.\n\n\n\n\nThe Corporation is working aggressively to generate higher gross margins\n in home building. Gross margin as a percentage of revenue before\n impairment for the three and nine months ended September 30, 2013 was\n 26% and 28% compared to 30% and 38% for the same periods in 2012. The\n reduction is largely a result of the higher weighting of revenue to\n home sales.\n\n\n\n\nAdjusted earnings per share before impairment (recovery) related to\n equity shareholders and before proxy contest costs for the thre...

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