The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

GENESIS ACHIEVES RECORD NET EARNINGS OF $25.8 MILLION AND RETIRES DEBT OF $50.8 MILLION IN FIRST NINE MONTHS OF 2010

Wednesday, November 03, 2010

GENESIS ACHIEVES RECORD NET EARNINGS OF $25.8 MILLION AND RETIRES DEBT OF $50.8 MILLION IN FIRST NINE MONTHS OF 201020:29 EDT Wednesday, November 03, 2010TSE Stock Symbol: GDCCALGARY, Nov. 3 /CNW/ - Genesis Land Development Corp. ("Genesis" or the "Company") is pleased to report net earnings of $25.8 million or $0.58 (basic and fully diluted) earnings per share on total revenues of $102.3 million for the nine months ended September 30, 2010 as compared to net earnings of $7.5 million or $0.17 (basic and fully diluted) earnings per share on $68.3 million of revenue over the same period in 2009. Net earnings for the three months ended September 30, 2010 were $1.0 million or $0.02 (basic and fully diluted) earnings per share on revenues of $17.8 million as compared to net earnings of $0.7 million or $0.02 (basic and fully diluted) earnings per share on revenues of $20.6 million over the same period in 2009.For the first nine months of 2010, Genesis retired approximately $50.8 million of its debt. As at September 30, 2010, the Company's financings were $64.4 million as compared to $115.2 million at December 31, 2009.As a result of weather delays, contracted pre-sales of approximately $33.2 million could not be recognized. These pre-sales represented 176 of the 320 lots under development in the Calgary communities of Saddlestone and Sage Meadows. After the third quarter, Saddlestone servicing has been substantially completed and Genesis will recognize $19.2 million of revenue in Q4-2010. Servicing of Sage Meadows is almost complete with $14.0 million of pre-sales under contract.In Airdrie, Genesis has also commenced the construction of four additional show homes to promote the 255 serviced lots at Bayside 7 and 9. Genesis intends to market approximately 150 of these lots to third party builders in 2011, while maintaining a strong inventory for its building division.Genesis building division has 73 new home sales under contract in the communities of Saddlestone, Sage Meadows and Sherwood.The Company plans to focus on improved profitability through efficient operations and the reduction and restructuring of its debt.Genesis Land Development Corp. is a Calgary based land development company with an inventory of over 24,000 lots and units and a 535 acre commercial and industrial land reserve. The vast majority of this inventory is within the Calgary metropolitan area.Genesis has filed its Consolidated Unaudited Financial Statements and Management Discussion & Analysis as at and for the quarter ended September 30, 2010 on the System for Electronic Document Analysis and Retrieval (SEDAR). Copies of these documents may be obtained via SEDAR at www.sedar.comCautionary Statement Regarding Forward-Looking Information"This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"). Forward looking statements include the 75 lots which were pre-sold in Calgary along with approximately 150 lot sales in Airdrie and whether these sales will be realized in a timely basis 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., Toll Free: (403) 265-8079, 1-800-341-7211, Fax: (403) 266-0746, E-Mail: genesis@genesisland.com, Internet: www.genesisland.com