CALGARY, March 14, 2018 /CNW/ - Genesis Land
Development Corp. (TSX: GDC) (the "Corporation" or "Genesis")
reported strong financial and operating results for the three
months ("Q4") and year ended December 31,
2017 ("YE 2017):
Key financial results and operating data for Genesis were as
follows:
|
|
|
|
Three months
ended
December 31,
|
Year ended
December 31,
|
($000s, except for
per share items or unless otherwise noted)
|
2017
|
2016
|
2017
|
2016
|
Key Financial
Data
|
|
|
|
|
Total
revenues
|
65,644
|
28,145
|
150,933
|
115,957
|
Direct cost of
sales
|
(36,833)
|
(24,203)
|
(97,704)
|
(89,339)
|
Gross
margin
|
28,811
|
3,942
|
53,229
|
26,618
|
Gross margin
(%)
|
43.9%
|
14.0%
|
35.3%
|
23.0%
|
Net earnings
attributable to equity shareholders
|
8,713
|
(1,216)
|
16,998
|
5,906
|
Net earnings per
share – basic and diluted
|
0.20
|
(0.03)
|
0.39
|
0.13
|
Cash flows from
operating activities
|
27,298
|
6,229
|
46,908
|
42,952
|
Cash flows from
operating activities per share – basic and diluted
|
0.62
|
0.14
|
1.08
|
0.98
|
Key Operating
Data
|
|
|
|
|
Land
Development
|
|
|
|
|
Total residential
lots sold (units)
|
78
|
65
|
266
|
204
|
Residential lot
sales
|
12,203
|
10,961
|
49,206
|
36,966
|
Gross margin on
residential lot sales
|
6,432
|
4,681
|
22,782
|
16,831
|
Gross margin (%) on
residential lot sales
|
52.7%
|
42.7%
|
46.3%
|
45.5%
|
Average revenue per
lot sold
|
156
|
169
|
185
|
181
|
Revenue - Development
land sold
|
41,000
|
-
|
55,234
|
21,237
|
|
|
|
|
|
Home
Building
|
|
|
|
|
Homes sold
(units)
|
44
|
56
|
148
|
166
|
Revenues
|
18,463
|
24,456
|
67,707
|
83,249
|
Gross margin on homes
sold
|
2,656
|
4,633
|
11,257
|
13,833
|
Gross margin (%) on
homes sold
|
14.4%
|
18.9%
|
16.6%
|
16.6%
|
Average revenue per
home sold
|
420
|
437
|
457
|
501
|
Homes subject to firm
sale contracts (units)
|
31
|
39
|
31
|
39
|
|
|
($000s, except for
per share items or unless otherwise noted)
|
As at December
31,
|
Key Balance Sheet
Data
|
2017
|
2016
|
Cash and cash
equivalents
|
23,585
|
14,318
|
Total
assets
|
301,425
|
288,995
|
Loans and credit
facilities
|
30,135
|
43,295
|
Total
liabilities
|
81,884
|
77,330
|
Shareholders'
equity
|
201,397
|
205,751
|
Total
equity
|
219,541
|
211,665
|
Loans and credit
facilities (debt) to total assets
|
10%
|
15%
|
Strong Cash Flows from Operating Activities
In 2017, Genesis generated strong cash flows from operating
activities of $46.9 million
($1.08 per share), an increase of
$ 4.0 million ($0.10 per share) from the $42.9 million ($0.98 per share) in cash flows from operating
activities in 2016.
Cash flows from operating activities were mainly used for the
following:
- Reduce Genesis' loans and credit facilities by $13.2 million, from $43.3
million at December 31, 2016
to $30.1 million at December 31, 2017. A significant portion of the
loans and credit facilities outstanding at December 31, 2017 was made up of $22.2 million related to a vendor-take-back loan
(the "VTB") on Genesis' southeast Calgary lands.
- Pay a $8.0 million installment on
the VTB in January 2017.
- Declared two dividends totalling $19.9
million ($0.46 per share) to
shareholders.
- $1.5 million (since 2015 -
$ 4.8 million) was used to repurchase
493,085 common shares (since 2015 - 1,673,479) through Genesis'
normal course issuer bid ("NCIB").
Genesis' cash on hand increased by $9.3
million as at December 31,
2017 to $23.6 million in
comparison to $14.3 million as at
December 31, 2016. A further
$8.0 million payment on the VTB was
made in January 2018.
$17 million Net Earnings
Attributable to Equity Shareholders in 2017
Net earnings for YE 2017 were $17
million ($0.39 per share), a
$11.1 million increase compared to
$5.9 million ($0.13 per share) for the year ended December 31, 2016.
Cash Dividends of $19.9 million
and Continued Share Buybacks
Since 2014 when it paid its first dividend, Genesis has returned
over $41.5 million to shareholders by
way of dividends and bought back nearly 1.7 million common shares
for over $4.7 million. The total
repurchases under the NCIB represents 3.7% of the common shares
outstanding at the commencement of the program in 2015.
|
|
|
|
|
($000s, except for
number of shares and per share
items)
|
Dividend per
share
|
Total
dividends
paid
|
Shares
repurchased
and cancelled
|
Cost of
repurchases
|
2017
|
0.46
|
19,896
|
493,085
|
1,456
|
2016
|
0.25
|
10,936
|
551,796
|
1,420
|
2015
|
0.12
|
5,331
|
628,598
|
1,887
|
2014
|
0.12
|
5,386
|
-
|
-
|
Total
|
$0.95
|
$41,549
|
1,673,479
|
$4,763
|
Residential Lot Revenues up by 33%
Total residential lot sales in 2017 were $49.2 million (266 lots), up 33% from
$37.0 million (204 lots) in 2016.
During 2017, 132 lots were sold to third-party builders, more than
twice the 58 lots sold to third-party builders in 2016. 34 of the
lots sold to third-party builders in 2017 were premium lots in the
Calgary community of Sage Meadows and 98 were in the City of Airdrie (2016 - 10 and 48 lots,
respectively). In 2017, Genesis' home building business sold 134
homes on Genesis lots, down from 146 homes sold in 2016.
Development Land Revenues of $55.2
million
Total development land sales in 2017 was $55.2 million including the sales by a limited
partnership for $46.2 million from
which third party debt of $9.1
million and debt owed to Genesis of $15.5 million was repaid.
Additional Information
The information contained in this press release should be read
in conjunction with the consolidated financial statements for the
year ended December 31, 2017 and 2016
and the related Management's Discussion and Analysis ("MD&A")
dated March 14, 2018 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".
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 Alberta,
Canada, the United States
and globally; 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 Annual Information Form
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.