TSE Stock Symbol: GDC
CALGARY, May 14 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Company") is pleased to report financial results for the three months ended March 31, 2008. Over the first three months of the year, Genesis recorded total revenues of $29,163,241 as compared to $22,787,790 over the same period in 2007. This produced after-tax earnings in 2008 of $8,101,308 or $0.18 basic and fully diluted earnings per share vs. $4,180,457 and $0.09 basic and fully diluted earnings per share during the first three months of 2007.
As at March 31, 2008, Genesis had a cash balance of $11,474,523 compared to $11,007,142 at December 31, 2007. Amounts receivable at March 31, 2008 were $58,381,201 compared to $47,587,450 at December 31, 2007. Genesis continues to maintain a strong balance sheet at March 31, 2008 with a debt to equity ratio of 0.73 exclusive of non-controlling interest and 1.21 inclusive of non-controlling interest. The balance of debt/financings at March 31, 2008 was $93,323,886 compared to $85,159,905 at December 31, 2007. Land project financing accounts for $65,801,475 of the financings total. These financings are paid off as lots associated with the specific financing are sold. Of the remaining debt, $7,919,266 relates to home building operating lines for Genesis Builders Group (single-family) and Generations Group of Companies (multi-family).
Land Development
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During the first quarter ended March 31, 2008, Genesis sold a total of 97 lots to external builders resulting in revenues of $16,853,237. Gross margins during this period were $9,952,886 (59%) as compared to gross margins of $5,504,863 (50%) in the first quarter of 2007. For the first quarter of 2008, the average price per lot was $173,745 as compared to an average price per lot in the same period last year of $179,253. The reduced price per lot is a result of a different sales mix whereby fewer amenity lots were sold in Q1-2008.
Single-Family Home Building
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Genesis Builders Group closed the sale on a total of 29 single-family homes in the three months ended March 31, 2008. Total revenues from single-family home sales in the first quarter were $11,854,357 compared to $11,250,425 for the first quarter of 2007. The average price of a single-family home sold in the first quarter was $408,460, significantly up from the average price of $296,063 for the first quarter of 2007. This rise is a reflection of the increases in house prices that were experienced during 2007 in the Calgary real estate market. While prices in the Calgary residential housing market have remained strong, total MLS listings have risen significantly in 2008 resulting in a competitive marketplace for the sale of newly constructed homes.
Multi-Family Home Building
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Generations Group of Companies continues construction on The Breeze, a 125 unit condo/town home development in Airdrie, Alberta with completion of the project scheduled for late 2008/early 2009. Pre-sales for this project to date have exceeded $5.8 million. Additionally, planning is underway for five additional multi-family projects totaling 1,630 units with construction start dates forecast between 2008 and 2010.
Commercial
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Genesis has signed a purchase and sale agreement for the sale of commercial land to a large anchor store at its Sage Hill Crossing shopping center site for total proceeds exceeding $22 million. This transaction is forecast to close during the third quarter of 2008 with the anchor store planning to open in the first half of 2009. Numerous letters of intent ("LOI") and offers to lease ("OTL") have been signed with national and international retailers for the Sage Hill Crossing shopping centre. The Company's two other active commercial projects, Taralake Plaza and Bayside Village are also experiencing excellent demand with LOIs and OTLs signed with retailers that include major pharmaceutical, grocery and restaurant chains. Genesis also announces that Arthur Wong has resigned as a director of the Company, effective April 30, 2008. Genesis wishes to thank Mr. Wong for his service as a director and wishes him all the best.
UNAUDITED FINANCIAL SUMMARY
Three Months Ended 31st of March, 2008 and 2007 (in $CAN)
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2008 2007
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Assets 322,400,309 179,420,559
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Liabilities 194,802,621 80,097,605
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Shareholders Equity 127,597,688 99,322,954
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Revenue 29,163,241 22,787,790
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Expenses 18,084,935 16,747,226
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Earnings before taxes and non-controlling
interest 11,078,306 6,040,564
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Net earnings 8,101,308 4,180,457
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Earnings per share (basic & fully diluted) 0.18 0.09
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Common Shares Outstanding 46,035,690 46,112,690
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Genesis Land Development Corp. is a Calgary based land development company with an inventory of more than 24,000 future residential building sites (single-family and multi-family) and over 300 acres of commercial/industrial lands in Western Canada, of which more than 14,000 residential lots and over 300 acres of commercial/industrial lands are located in the Calgary metropolitan area.
Certain statements in this news release could constitute forward-looking statements. The Corporation's line of business involves risk, uncertainties and other factors which may cause actual results, performance or achievements of Genesis to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Such factors include the number of dwelling sites that Genesis will actually develop and sell.