CALGARY, Nov. 10, 2016 /CNW/ -
SPECIAL CASH DIVIDEND
On November 10, 2016, Genesis Land
Development Corp.'s (TSX: GDC) (the "Corporation" or "Genesis") Board of Directors approved the
payment of a special cash dividend of $0.25 per common share for a total of
approximately $10,900,000 payable in
December 2016.
THIRD QUARTER RESULTS
Genesis is pleased to report its financial and operating results
for the three and nine months ended September, 2016.
Key financial results and operating data are as follows:
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
($000s, except for
per share items or unless otherwise noted)
|
2016
|
2015
|
2016
|
2015
|
|
|
|
|
|
Key Financial
Data
|
|
|
|
|
Total
revenues
|
29,240
|
34,918
|
87,812
|
82,513
|
Gross
margin
|
6,839
|
9,734
|
22,676
|
13,278
|
Net earnings
attributable to equity shareholders
|
2,184
|
4,256
|
7,122
|
5,649
|
Net earnings per
share – basic and diluted
|
0.05
|
0.09
|
0.16
|
0.12
|
Cash flows from (used
in) operating activities
|
10,060
|
8,919
|
36,723
|
(11,132)
|
Cash flows from (used
in) operating activities per share(1)
|
0.23
|
0.20
|
0.85
|
(0.25)
|
|
|
|
|
|
Key Operating
Data
|
|
|
|
|
Residential lots sold
to third parties (units)
|
24
|
13
|
46
|
19
|
Residential lots sold
through home building business segment
(units)
|
22
|
32
|
93
|
74
|
Average revenue per
lot sold
|
196
|
160
|
187
|
175
|
Development land sold
(acres)
|
7
|
-
|
1,674
|
4
|
Homes sold
(units)
|
28
|
67
|
110
|
158
|
Average revenue per
home sold
|
537
|
484
|
534
|
498
|
New home orders
(units)
|
38
|
38
|
112
|
99
|
|
|
|
|
|
|
|
As at
September 30,
|
|
|
|
2016
|
2015
|
Homes (with lots)
subject to firm sale contracts (units)
|
|
|
65
|
78
|
|
|
|
Key Balance Sheet
Data ($000s, except for per share items or unless otherwise
noted)
|
As
at
September
30,
2016
|
As at
December
31,
2015
|
Cash and cash
equivalents
|
15,938
|
11,399
|
Total
assets
|
302,424
|
331,045
|
Loans and credit
facilities
|
38,558
|
63,819
|
Total
liabilities
|
77,644
|
106,054
|
Shareholders'
equity
|
217,995
|
212,125
|
Total
equity
|
224,780
|
224,991
|
(1)
Basic and diluted amounts per share
|
|
|
Summary of Operating Results
The results for the nine months ended September 30, 2016 are substantially improved
relative to the same period in 2015. 2016 revenues included three
land parcel sales ($21,237,000) with
no significant land parcel sales in the same period in 2015
($100,000). Despite an ongoing
challenging economic environment, the business is delivering strong
results. General, administrative and sales expenses for the third
quarter of 2016 were reduced by $1,302,000 to $3,388,000 compared to $4,690,000 in the third quarter of 2015, or by
27.8%. General, administrative and sales for the period ended
September 30, 2016 have reduced by
$1,871,000 to $11,706,000 compared to $13,577,000 for the same period in 2015.
Highlights
Volumes and Revenue:
- The Land division:
- Sold a 7 acre development land parcel to the City of Calgary in Q3 2016 with revenues of
$9,437,000 (Q3 2015 – Nil).
- Sold 46 lots during Q3 2016 compared to 45 lots during Q3
2015.
- The Genesis home building division:
- Sold 28 homes in Q3 2016 with revenues of $15,051,000 (Q3 2015 – 67 and $32,448,000 respectively). Of the 28 homes, 22
were built on residential lots supplied by Genesis, generating
residential lot revenues of $4,267,000 (Q3 2015 – 32 and $4,739,000 respectively), which is included in
the revenues of the home building division.
- New home orders were 38 during Q3 2016 compared to 38 in Q3
2015. YTD new home orders were 112 during 2016 compared to 99 in
2015.
- The Q3 2016 closing order book of 65 firm home sales contracts
compares to 78 firm home sales contracts at the close of Q3 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-construction sales
orders.
Net Earnings:
- Net earnings were $2,184,000 for
Q3 2016 compared to $4,256,000 in Q3
2015 and $7,122,000 for YTD 2016
compared to $5,649,000 for YTD
2015.
- Net earnings for the three and nine months ended September 2016 were impacted by a $3,293,000 write-down of a single parcel of
undeveloped non-core land located in Alberta (2015 - Nil and $11,261,000).
Cash Flows from Operating Activities:
- Cash inflows from operating activities on a quarterly basis
were $10,060,000 (inflows of
$0.23 per share) at Q3 2016 compared
to cash inflows of $8,919,000
(inflows of $0.20 per share) at Q3
2015. Cash inflows from operating activities were $36,723,000 (inflows of $0.85 per share) YTD compared to cash outflows of
$11,132,000 (outflows of $0.25 per share) at Q3 2015. This is a positive
year-over-year increase of $47,855,000.
Loans and credit facilities:
- Loans and credit facilities at September
30, 2016 were $38,558,000,
compared to $63,819,000 at
December 31, 2015, a reduction of
$25,261,000. This includes payment of
the first $8,000,000 installment on
the $40,000,000 VTB paid in
January 2016.
- The components of loans and credit facilities related to land
servicing and home building (excluding the vendor-take-back
mortgage and a loan held by a limited partnership) amount to
$2,068,000 as at September 30, 2016 which is a reduction of
$2,777,000 since June 30, 2016 and $19,305,000 since December
31, 2015.
Continued cost reductions:
- Genesis continues to review its business with a focus on cost
reductions and improving operational efficiency.
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 and nine months ended
September 30, 2016 and 2015 and the
related Management's Discussion and Analysis ("MD&A") dated
November 10, 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 Genesis' ongoing review of its
business. 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;
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.