CALGARY, May 12, 2016 /CNW/ - Genesis Land
Development Corp. (TSX: GDC) (the "Corporation" or "Genesis") is
pleased to report its financial and operating results for the three
months ended March 31, 2016.
SUMMARY CORPORATE HIGHLIGHTS
Our key financial results and operating data are as follows:
|
|
|
Three months
ended
March 31,
|
($000s, except for
per share items or unless otherwise noted)
|
2016
|
2015
|
Key Financial
Data
|
|
|
Total
revenues
|
32,424
|
15,773
|
Gross
margin
|
8,234
|
4,691
|
Net earnings
attributable to equity shareholders
|
2,110
|
60
|
Net earnings per
share – basic and diluted
|
0.05
|
0.00
|
Cash flows from (used
in) operating activities
|
12,269
|
(18,727)
|
Cash flows from (used
in) operating activities per share(1)
|
0.28
|
(0.42)
|
Key Operating
Data
|
|
|
Residential lots sold
to third parties (units)
|
-
|
3
|
Residential lots sold
through home building business segment (units)
|
36
|
15
|
Average revenue per
lot sold
|
194
|
179
|
Homes sold
(units)
|
42
|
32
|
Average revenue per
home sold
|
529
|
478
|
New home orders
(units)
|
28
|
19
|
|
|
|
As at March
31,
|
|
2016
|
2015
|
Homes with firm sale
contracts (units)
|
49
|
124
|
|
|
|
Key Balance Sheet
Data ($000s, except for per share items or unless otherwise
noted)
|
As at
March 31,
2016
|
As at
December 31,
2015
|
Cash and cash
equivalents
|
9,708
|
11,399
|
Total
assets
|
312,115
|
331,045
|
Loans and credit
facilities
|
48,108
|
63,819
|
Total
liabilities
|
85,436
|
106,054
|
Shareholders'
equity
|
213,698
|
212,125
|
Total
equity
|
226,679
|
224,991
|
(1)
Basic and diluted amounts per share
|
|
|
Highlights
Volumes and Revenue:
- Genesis sold 42 homes in Q1 2016 with revenues of $22,209,000 (Q1 2015 – 32 and $15,301,000 respectively). Of the 42 homes, 36
were built on residential lots supplied by Genesis' land
development segment, generating residential lot revenues of
$6,969,000 (Q1 2015 – 18 and
$3,230,000 respectively).
- Sales of homes, delivered on a quick possession basis, were
higher at 21 during Q1 2016 compared to 9 during Q1 2015.
- New homes orders were 28 during Q1 2016 compared to 19 in Q1
2015.
- The Q1 2016 closing order book of 49 firm home sales contracts
compared to 124 at the close of Q1 2015. This year over year
decline is believed to be due to home buyers preferring homes that
can be delivered on a quick possession basis, Genesis has been
successful in delivering quick possession homes in sufficient
volumes to offset the decline in pre-sales orders.
- A 14 acre development land parcel was sold in Q1 2016 with
revenues of $10,250,000 (Q1 2015 –
Nil).
Net Earnings:
- Net earnings were $2,110,000 for
Q1 2016 compared to $60,000 for Q1
2015.
Cash Flows from Operating Activities
- Cash inflows from operating activities were $12,269,000 (inflows of $0.28 per share) at Q1 2016 compared to cash
outflows of $18,727,000 (outflows of
$0.42 per share) at Q1 2015.
Restructuring:
- Genesis is reviewing and restructuring its business to deal
with the continuing challenging economic environment with various
initiatives already complete or substantially under way.
Additional Information
The information contained in this press release
should be read in conjunction with the unaudited condensed
consolidated interim financial statements for the three months
ended March 31, 2016 and 2015 and the
related Management's Discussion and Analysis ("MD&A") dated
May 12, 2016 which have been filed
with Canadian securities regulatory authorities. Copies of these
documents may be obtained via www.sedar.com or our website at
www.genesisland.com.
About Genesis
Genesis Land Development Corp. is a land
developer and residential home builder in the Calgary Metropolitan Area. The Corporation's
common shares are listed on the Toronto Stock Exchange (TSX:
GDC).
ADVISORIES
Forward-Looking Statements
This news release may contain certain
statements which constitute forward-looking statements or
information ("forward-looking statements") within the meaning of
applicable securities legislation, including Canadian Securities
Administrators' National Instrument 51-102 'Continuous Disclosure
Obligations', concerning the business, operations and financial
performance and condition of Genesis. 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". Forward-looking
statements in this news release include statements with respect to
the economic environment and restructuring initiatives by Genesis.
Although Genesis believes that the anticipated future
results, performance or achievements expressed or implied by
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 many of which
are beyond the Corporation's control, 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: the impact or
unanticipated impact of general economic conditions in Canada, the United
States and globally; the impact of election of governments
in Alberta and Canada and the direction of policy which could
impact the overall pace of economic growth; local real estate
conditions, including the development of properties in close
proximity to Genesis' properties; the uncertainties of real estate
development and acquisition activity; fluctuations in interest
rates; labour matters, governmental regulations, stock market
volatility 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 Corporation's MD&A under the
heading "Risks and Uncertainties" and the AIF under the heading
"Risk Factors". Furthermore, any forward-looking statements
contained in the news release are made as of the date of this news
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.
SOURCE Genesis Land Development Corp.