Genesis Restates Third Quarter Results

About this update from Genesis Land Development Corp.

[{"type":"text","content":"\n\n\n\nTSX Stock Symbol: GDC\n\n\nCALGARY, Feb. 4 /CNW/ - Genesis Land Development Corp. ("Genesis" or the\n"Company") reports restated financial results for the nine months ended\nSeptember 30, 2008. As disclosed in the Company's press release dated January\n12, 2009, one bulk lot sales transaction for $4,500,000 that was previously\nrecognized as revenue for the third quarter was reversed and has been deferred\nuntil certain other criteria are met.\n\n\nAs disclosed in the restated financial statements, Genesis recorded total\nrevenues of $75,733,310 over the first three quarters of 2008 as compared to\n$76,382,712 over the same period in 2007. This produced after-tax earnings in\n2008 of $15,815,920 or $0.34 basic and fully diluted earnings per share vs.\n$18,850,298 and $0.41 basic and fully diluted earnings per share during the\nfirst nine months of 2007.\n\n\nAs at September 30, 2008, Genesis had a cash balance of $10,029,686\ncompared to $11,007,142 at December 31, 2007. Amounts receivable at September\n30, 2008 were $55,100,888 compared to $47,587,450 at December 31, 2007. The\nbalance of debt/financings at September 30, 2008 was $116,853,054 compared to\n$85,159,905 at December 31, 2007. At September 30, 2008 Genesis maintained a\ndebt to equity ratio of 1.20 exclusive of non-controlling interest and 1.72\ninclusive of non-controlling interest.\n\n\nThe financial statement effects of the restatement are as follows:\n\n\nSUMMARY OF RESTATEMENT\n Three months ended September 30, 2008\n As reported Adjustment Restated\n --------------------------------------------\n $ $ $\n\nResidential lot sales revenue 10,290,104 (4,500,000) 5,790,104\nCost of sales - residential\n lots 3,518,580 (2,181,000) 1,337,580\nInterest expense 895,504 189,146 1,084,650\nProvision for taxes - Future 2,868,416 (672,510) 2,195,906\nNet earnings and comprehensive\n income 4,163,557 (1,835,636) 2,327,921\nCash flow from operating\n activities (4,231,333) (4,689,146) (8,920,479)\nCash flow from financing\n activities 1,537,871 5,000,000 6,537,871\nIncrease (decrease) in cash\n and cash equivalents (2,733,351) 310,854 (2,422,497)\n\n\n Nine months ended September 30, 2008\n As reported Adjustment Restated\n --------------------------------------------\n\nResidential lot sales revenue 36,532,608 (4,500,000) 32,032,608\nCost of sales...

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