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Press release from CNW Group

Genesis Announces After-Tax Net Asset Value of $8.25 Per Basic and Fully Diluted Share

Thursday, April 15, 2010

Genesis Announces After-Tax Net Asset Value of $8.25 Per Basic and Fully Diluted Share11:23 EDT Thursday, April 15, 2010CALGARY, April 15 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Corporation") (TSX:GDC) is pleased to announce that it has received its previously announced (see press release dated March 3, 2010) independent appraisal of its entire land development portfolio and has estimated Genesis' after-tax net asset value as at December 31, 2009. << Independent Appraisal --------------------- >> Cushman & Wakefield Ltd. ("Cushman") of Calgary, Alberta conducted an independent appraisal of all of Genesis' properties as at December 31, 2009 using a direct comparison approach. The direct comparison approach is based on an analysis of sales, offers and listings on sites considered comparable to the subject property with respect to location, parcel size, development potential and other relevant factors. The appraised pre-tax value of Genesis' properties is Cdn. $513.5 million ("Total Pre-Tax Land Value"). << After-Tax Net Asset Value as at December 31, 2009 ------------------------------------------------- >> Genesis estimates its after-tax net asset value ("NAV") at December 31, 2009 to be $364.0 Million or $8.25 per basic and fully diluted share. The estimated NAV was calculated using the Cushman Total Pre-Tax Land Value plus additional balance sheet assets less balance sheet liabilities and a 29% corporate tax rate as at December 31, 2009. The book value of all remaining assets and liabilities as set forth in the audited consolidated financial statements of the Corporation for the year ended December 31, 2009 has been added to the Total Pre-Tax Land Value to calculate the Pre-Tax "Net" Asset Value. Estimated taxes have been deducted from the Pre-Tax Net Asset Value as if all properties were sold at their December 31, 2009 market values to determine NAV. The NAV calculation is as follows (all figures in $CDN): << Net Asset Value Calculation: Cushman Appraisal Values (See Note 1 below and 2) ------------------------------------------------- Serviced Single-Family Lot Inventory: $ 89.0 M Serviced Multi-Family Sites: $ 23.5 M Fully Approved Commercial/Industrial Sites - Calgary, Airdrie & Edmonton: $ 91.1 M Fully Approved Developable Lands - Calgary & Airdrie: $ 218.0 M Other Raw and Partially Approved Lands: $ 91.9 M TOTAL PRE-TAX LAND VALUE: $ 513.5 M Other Balance Sheet Assets (See Note 3 below): $ 59.2 M Balance Sheet Liabilities (See Note 4 below): $(150.4 M) Add amounts due from Non-controlling interest ("NCI") $ 26.4 M PRE-TAX NAV: $ 448.7 M Estimated Tax $(84.7 M) AFTER-TAX NAV: $ 364.0 M Basic and Fully Diluted Shares Outstanding: 44.1 M AFTER TAX NAV PER BASIC AND DULLY DILUTED SHARE: $ 8.25 Assumptions: ------------ >> 1) Appraised values represent 100% Genesis owned lands - Limited partnership lands owned by other limited partnership investors (and the corresponding NCI liability) are excluded from the calculation.2) Cushman's appraised values of lands represents market value based on comparative figures of similar market transactions, except for single-family lots currently under development which are valued as if serviced and subdivided with adjustment for estimated future costs to complete. Lot inventory has been valued on a per lot basis, multi-family sites have been valued on a per door basis and all other lands were valued on a per acre basis.3) Other Balance Sheet Assets in the NAV Calculation includes amounts receivable ($15,383), housing projects under development (19,436), cash and cash equivalents ($4,578), future income taxes ($2,213) and other operating assets ($17,568) at book value as at December 31, 2009. "Balance Sheet Liabilities" include financings ($117,639), customer deposits ($4,985), accounts payable and accrued liabilities ($8,350), income taxes payable ($11,138) and land development service costs ($8,300) as at December 31, 2009.4) Goodwill for land development, housing, commercial and industrial operations, future land or lot development profits and housing profits are excluded from the NAV calculation.5) Genesis has used a 2009 Corporate Tax Rate of 29% to calculate taxes in determining NAV.Genesis will be hosting a teleconference call to discuss 2009 year end results, the December 31, 2009 NAV calculation and 2010 operations on Wednesday, April 21, 2010 at 9 A.M. Mountain Standard Time. Genesis requests that participants RSVP to Genesis at 403-265-8079 or by e-mail at genesis@genesisland.com. Teleconference details, including call-in numbers, will be released Monday, April 19th.Genesis Land Development Corp. is a Calgary based land development company with an estimated inventory of more than 28,000 future residential building sites (single-family and multi-family) and over 1,000 acres of commercial/ industrial lands in Western Canada, of which more than an estimated 14,000 residential lots and over 530 acres of commercial/industrial lands are in the Calgary and Edmonton metropolitan areas.Cautionary Statement Regarding Forward-Looking InformationThis press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including the estimated pre-tax net asset value of the Corporation, the estimated after tax net asset value of the Corporation and estimated corporate tax rate and the number of dwelling sites that Genesis will actually develop and sell. Although Genesis believes that the expectations reflected in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information available to Genesis. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking statements. As such, readers are cautioned not to place undue reliance on the forward looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement."For further information: Gobi Singh, C.E.O., Genesis Land Development Corp., Tel: (403) 265-8079, Toll Free: 1-800-341-7211, Fax: (403) 266-0746, E-Mail: genesis@genesisland.com, Internet: www.genesisland.com