Business
Melcor Developments Ltd., EDMONTON AB (TSE:MRD) Releases First Quarter Results
Melcor Developments Ltd., EDMONTON AB (TSE:MRD) Releases First Quarter Results.
About this update from Melcor Developments Ltd.
[{"type":"text","content":"\n\n\n\n\nEDMONTON, May 1 /CNW/ - Melcor Developments Ltd., an Alberta based real\nestate development company recorded net earnings of $7,105,000 or $0.23 per\nshare (basic) on revenue of $34,428,000 for the three months ended March 31,\n2006 compared with net earnings of $2,573,000 or $.09 per share (basic) on\nrevenue of $15,593,000 for the same period in 2005. All per share amounts have\nbeen restated to reflect the change in the number of shares outstanding caused\nby the ten-for-one division of common shares which was approved by the\nshareholders on April 12, 2006.\nThe Company declared a semi-annual dividend of $.15 per share payable on\nJune 30, 2006 to shareholders of record on June 16, 2006. This compares to a\nsemi-annual dividend of $.075 per share paid on June 30, 2005. The increased\ndividend results from the strength of the Company's financial position, the\ngrowth of shareholders equity and rising share values over the past few years.\nMajor significant events during the quarter include:\n\n- The current quarter revenue and earnings are significantly higher\n than in 2005 due to the increase amount of sales in the Community\n Development division. Earnings can fluctuate on both an annual and\n quarterly basis due to the cyclical nature of the real estate\n business and the timing of registration of subdivisions. This quarter\n benefited with the registration of two phases of residential\n communities which added 172 lot sales for $11,321,000 in revenue\n compared to 2005 which saw one plan registration that generated 20\n lot sales and revenue of $1,137,000 during the same period.\n\n- The Property Development Division has begun construction on 115,000\n square feet of office space in north west Calgary, Alberta in a\n project known as Crowfoot West Business Centre. The Division has also\n commenced expansion of developments in Leduc and Chestermere.\n\n- The Investment Property Division operations continue to improve with\n the addition of revenue producing assets during 2005 and increased\n lease rates and occupancies.\n\n- The Community Development Division has continued its strong sales and\n earnings in all company regions as its builder customers continue to\n acquire inventory for future sales. The current quarter recorded the\n sale of thirty acres in Tuscon, Arizona which is the last of the\n Company's d...