CALGARY, AB, July 29, 2021 /CNW/ - Genesis Land
Development Corp. (TSX: GDC) (the "Corporation" or "Genesis")
reported its financial and operating results for the three months
("Q2") and six months ended June 30,
2021 ("YTD"). Genesis is an integrated land developer and
residential home builder owning and developing a growing portfolio
of well-located, entitled and unentitled residential, commercial
and mixed-use lands and serviced lots throughout the Calgary Metropolitan Area.
The following are highlights of Genesis financial results for
the first half of 2021:
2021 Highlights (Q2 2021 and YTD 2021)
- 135 New Home Orders, up 63% from YTD 2020: New
home orders in YTD 2021 were 135 units compared to 83 units for the
same period in 2020. The Corporation ended the second quarter of
2021 with 125 outstanding new home orders, compared to 55 at the
end of Q2 2020.
- $29.5 Million of
Revenues in Q2 2021: Genesis sold 62 homes, 4
residential lots to third-parties in Q2 2021 generating revenues of
$29.5 million. In Q2 2020, Genesis
sold 52 homes, 35 residential lots to third-parties and one
non-core development land parcel, held by a controlled limited
partnership, generating revenues of $30.7
million.
- $4.0 Million Net Earnings
in YTD 2021: Net earnings attributable to equity
shareholders in YTD 2021 were $4.0
million ($0.10 net earnings
per share - basic and diluted) compared to net loss attributable to
equity shareholders of $3.7 million
($0.09 net loss per share - basic and
diluted) in YTD 2020.
- $25.7 Million of Cash and
Cash Equivalents: On June 30,
2021, Genesis had $25.7
million in cash and cash equivalents, which exceeded
outstanding loans and credit facilities balances of $18.0 million by $7.7
million.
Selected Financial Results and Operating Data:
|
|
|
Three months
ended
June 30,
|
Six months ended
June 30,
|
($000s, except for
per share items or unless otherwise noted)
|
2021
|
2020
|
2021
|
2020
|
Key Financial
Data
|
|
|
|
|
|
Total
revenues
|
29,529
|
30,725
|
48,242
|
54,377
|
Net earnings (loss)
attributable to equity shareholders
|
2,688
|
3,644
|
4,010
|
(3,739)
|
Net earnings (loss)
per share - basic and diluted
|
0.07
|
0.09
|
0.10
|
(0.09)
|
Cash flows from
operating activities
|
7,084
|
7,044
|
7,467
|
15,232
|
Cash flows from
operating activities per share - basic and diluted
|
0.17
|
0.17
|
0.18
|
0.36
|
Key Operating
Data
|
|
|
|
|
Land
Development
|
|
|
|
|
Total residential
lots sold (units)
|
66
|
87
|
113
|
119
|
Residential lot
revenues
|
10,414
|
14,739
|
18,995
|
20,491
|
Development land
revenues
|
-
|
175
|
925
|
9,162
|
|
|
|
|
|
Home
Building
|
|
|
|
|
Homes sold
(units)
|
62
|
52
|
93
|
82
|
Revenues
(1)
|
28,427
|
23,901
|
42,297
|
37,989
|
Outstanding new home
orders at period end (units)
|
|
|
125
|
55
|
(1)
|
Includes other
revenues and revenues of $9,312,000 for 62 lots in Q2 2021 and
$13,975,000 for 93 lots in YTD 2021 purchased by the Home Building
division from the Land Development division ($8,090,000 and 52 in
Q2 2020; $13,265,000 and 82 in YTD 2020) and sold with the home.
These amounts are eliminated on consolidation
|
($000s, except for
per share items or unless otherwise noted)
|
|
|
As at Jun. 30,
2021
|
As at Dec. 31,
2020
|
Key Balance Sheet
Data
|
|
|
|
|
Cash and cash
equivalents
|
|
|
25,746
|
29,743
|
Total
assets
|
|
|
275,349
|
266,494
|
Loans and credit
facilities
|
|
|
18,014
|
21,470
|
Shareholders'
equity
|
|
|
191,843
|
187,676
|
Loans and credit
facilities (debt) to total assets
|
|
|
7%
|
8%
|
Outlook
The Calgary Metropolitan Area
economy has been relatively robust since the latter part of 2020.
This has led to lower unemployment levels (9.1% as of June 2021 per the City
of Calgary) and a stronger housing market. The Calgary Real
Estate Board forecasts that housing market momentum will continue
for the remainder of 2021 fueled by low mortgage interest rates,
low levels of housing supply, pent up demand and increased demand
for suburban single-family homes. Alberta GDP is forecast by RBC
Economics to grow by 5.9% in 2021. Despite these positive signs
there is still uncertainty as to the depth and duration of the
economic recovery and Genesis remains cautious in planning its
strategy and operations.
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 six months ended
June 30, 2021 and 2020 and the
related Management's Discussion and Analysis ("MD&A") dated
July 29, 2021 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.
ADVISORIES
Cautionary Note Regarding Forward-Looking
Statements
This news release contains 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", "proposed", "scheduled",
"future", "likely", "seeks", "estimates", "plans", "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.
Forward-looking statements are based on factors or
assumptions made by us with respect to, among other things,
opportunities that may or may not be pursued by us; changes in the
real estate industry; fluctuations in the Canadian and Alberta economy; changes in the number of lots
sold and homes delivered per year; and changes in laws or
regulations or the interpretation or application of those laws and
regulations. Because forward-looking statements relate to
the future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of our control.
Forward-looking statements in this news release include, but
are not limited to, plans and strategies relating to adding
additional inventory of serviced lots and future residential
development land; planning for the development of the next phases
of Genesis' communities; obtaining zoning and service approvals;
anticipated general economic and business conditions (including in
the context of COVID-19); and areas of continued operational
focus.
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 of contractual arrangements and
incurred obligations on future operations and liquidity; 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; ability to access and raise capital on favorable terms; not
realizing on the anticipated benefits from transactions or not
realizing on such anticipated benefits within the expected time
frame; the cyclicality of the oil and gas industry; changes in the
Canadian / U.S. dollar exchange rate; labor matters; governmental
regulations; general economic and financial conditions; stock
market volatility; the impacts of COVID-19 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
in the Corporation's MD&A under the heading "Risks and
Uncertainties" and the Corporation's annual information form under
the heading "Risk Factors".
Furthermore, the forward-looking statements contained in this
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.