Press release from PR Newswire
Genesis Reports Earnings for the year ended December 31, 2011
Monday, March 05, 2012
TSE Stock Symbol: GDC
CALGARY, March 5, 2012 /PRNewswire/ -
Results of Operations
Calgary, AB - March 5, 2012 - Genesis Land Development Corp. ("Genesis" or the "Corporation") reports net earnings of $11.1 million or $0.25 (basic and fully diluted) earnings per share (EPS) on total revenues of $95.8 million for the year ended December 31, 2011 (2010 - $33.5 million, $0.75, and $137.83 million respectively).
The Corporation achieved the following sales in number of units sold:
|Three months ended December 31,||Year ended December 31,|
|(Number of units)||(Number of units)|
|Single-family residential lots||93||128||255||184|
The single-family residential lots were primarily sold in phases 1 and 2 of the Calgary community of Sage Meadows, phase 1 of the Calgary community of Kinwood through a joint venture and the Airdrie community of Bayside in phases 4, 7 and 9.
During the year, the Corporation completed a major refinancing of $54.2 million of loans to more favourable terms improving the Corporation's cash flows and decreasing interest costs by approximately 3 percentage points.
With the projected improvement in economic conditions in the Calgary metropolitan area, Genesis is looking forward to 2012. Genesis is in an advantageous position with its inventory of completed lots, 9 professionally prepared showhomes and an inventory of approved lands within the Calgary Metropolitan Area ("CMA"). The focus of the Corporation's management in 2012 is the growth and optimization of operations and the reduction of non-project debt. Additionally, Genesis is working on the following initiatives:
- Disposition of certain non-core lands.
- Pursue a planning program to improve zoning on over 3,000 acres of land within the CMA. With approvals, management estimates that the value of these lands should increase significantly.
- Actively market the 425 serviced lots in inventory.
- Complete the sale of +/- 33.45 acres for $31.7 million at Genesis's Sage Hill Crossing Commercial development in NW Calgary to RioCan Real Estate Investment Trust by the end of 2012.
FINANCIAL SUMMARY As at and for the three months and years ended December, 2011 and 2010 (all tabular amounts are in thousands of dollars except per share amounts and number of outstanding shares)
|Three months ended||Year ended|
|December 31,||December 31,|
|Expenses net of finance income||24,002||16,276||82,119||88,180|
|Earnings before taxes||1,666||19,327||13,641||49,203|
|Earnings attributable to equity holders||2,057||10,454||11,060||33,514|
|Earnings per share - basic||0.05||0.24||0.25||0.76|
|Earnings per share - fully diluted||0.05||0.23||0.25||0.75|
|December 31,||December 31,|
|Common Shares Outstanding||44,484,287||44,347,697|
About Genesis: Genesis is a Calgary based land development company and residential home builder with land holdings in Alberta and British Columbia. Its active operations are located primarily in the Calgary metropolitan area.
This press release should be read in conjunction with the Consolidated Financial Statements for the year ended December 31, 2011 and Management Discussion & Analysis of the Corporation for the three months and year ended December 31, 2011, which have been filed on the System for Electronic Document Analysis and Retrieval (SEDAR). Copies of these documents may be obtained via SEDAR at www.sedar.com
Cautionary Statement Regarding Forward-Looking Information
This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements") within the meaning of applicable securities legislation concerning the business, operations and financial performance and condition of Genesis. Forward-looking statements include, but are not limited to, statements with respect to the estimated corporate tax rate and the number of dwelling sites that Genesis will actually develop and sell. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Although Genesis believes that the anticipated future results, performance or achievements expressed or implied by the forward-looking statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements because they involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Genesis to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Accordingly, Genesis cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, general economic conditions; local real estate conditions, including the development of properties in close proximity to Genesis' properties; timely leasing of newly-developed properties and re-leasing of occupied square footage upon expiration; dependence on tenants' financial condition; the uncertainties of real estate development and acquisition activity; the ability to effectively integrate acquisitions; interest rates; availability of equity and debt financing; the impact of newly-adopted accounting principles on Genesis' accounting policies and on period-to-period comparisons of financial results; economic conditions in Western Canada, not realizing on the anticipated benefits from the transaction or not realizing on such anticipated benefits within the expected time frame and other risks and factors described from time to time in the documents filed by Genesis with the securities regulators in Canada available at www.sedar.com., including the Annual Information Form under the heading "Risk Factors" and in Genesis' most recent interim report under the heading "Management's Discussion and Analysis." Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Caution should be exercised in the evaluation and use of the appraisal results. The appraisal is an estimate of market value at specific dates and not a precise measure of value, being based on subjective comparison of related activity taking place in the real estate market. The appraisal is based on various assumptions of future expectations and while the appraiser's assumptions are considered to be reasonable at the current time, some of the assumptions may not materialize or may differ materially from actual experience in the future.
SOURCE Genesis Land Development Corp.
For further information: <p> <b>Contact: </b><br/> <b>Jeff Blair, Interim C.E.O., Genesis Land Development Corp.</b><br/> <b>Simon Fletcher, C.F.O, Genesis Land Development Corp.</b><br/> <b>Tel: (403) 265-8079, Toll Free: 1-800-341-7211, Fax: (403) 266-0746</b><br/> <b>E-Mail: </b><a href="mailto:firstname.lastname@example.org" font-weight="bold">email@example.com</a><b> Internet: </b><a href="http://www.genesisland.com">www.genesisland.com</a> </p>