CALGARY, AB, March 2, 2022 /CNW/ - Genesis Land Development
Corp. (TSX: GDC) (the "Corporation" or "Genesis") reported its
fourth quarter and 2021 earnings today.
Genesis is pleased to report net earnings for the year ("YE")
2021 of $10.9 million and
$4.3 million for the fourth quarter
("Q4"), 2021, the 21st consecutive year of positive
earnings. Annual revenue of $109.8
million was achieved largely from 191 home sales and 247 lot
sales. Genesis finished the year with a successful $30 million rights offering which was completed
in December 2021.
The following are highlights of Genesis financial results for
the fourth quarter of 2021:
2021 Highlights (Q4 2021 and YE 2021)
- $109.8 Million of
Revenues in YE 2021: Higher sales volumes generated
revenue of $109.8 million in YE 2021
up from $103.9 million achieved in YE
2020. Q4 2021 revenues of $26.5
million were higher when compared to $19.8 million generated in Q4 2020.
- Net Earnings in YE 2021 were $10.9
Million: Net earnings were positive for the
21st consecutive year with net earnings attributable to equity
shareholders in YE 2021 of $10.9
million ($0.24 net earnings
per share - basic and diluted), compared to $0.2 million ($0.00
net earnings per share - basic and diluted) in YE 2020. Net
earnings attributable to equity shareholders in Q4 2021 were
$4.3 million ($0.09 net earnings per share - basic and diluted)
compared to $0.1 million
($0.00 net earnings per share - basic
and diluted) in Q4 2020.
- 191 Homes Sold - up 17% from 2020: In YE 2021,
Genesis sold 191 homes, an increase of 17% from the 163 sold in YE
2020. In Q4 2021, Genesis sold 51 homes, compared to 28 sold in Q4
2020. During YE 2021, Genesis had 249 new home orders compared to
192 for YE 2020. Genesis had 141 outstanding new home orders on
hand at December 31, 2021 (83 at
December 31, 2020).
- 247 Lots Sold - up 10% from 2020: In YE 2021,
Genesis sold 247 residential lots (60 to third-party builders and
187 through its home building division), an increase of 10% from
225 lots in YE 2020 (62 to third-party builders and 163 through its
home building division). In Q4 2021, Genesis sold 49 residential
lots (2 to third-party builders and 47 through its home building
division) compared to 30 lots in Q4 2020 (2 to a third-party
builder and 28 through its home building division).
- $29.2 Million Land
Acquisition: In YE 2021, Genesis entered into a
binding agreement to acquire approximately 157 acres of future
residential development land in the City
of Calgary. Genesis paid a non-refundable deposit of
$2.2 million, with the balance of
$27.0 million to be paid on closing,
scheduled for April 2022. This
project, now called "Huxley", is expected to be under development
in 2023.
- $50 Million Corporate
Revolving Line of Credit: In 2021, Genesis put in
place a $50 million three–year fixed
term secured corporate revolving line of credit with MCAP Financial
Corporation at an interest rate per annum equal to the higher of
prime +1.90% or 4.35%.
- $30 Million Rights
Offering: Genesis successfully closed a rights
offering on December 17, 2021,
issuing 15 million common shares of the Corporation at $2.00 per share for gross proceeds of
$30 million, representing 100% of the
total rights offered.
- Cash on hand of $64.0
Million: On December 31,
2021, Genesis had $64.0
million in cash and cash equivalents, which exceeded
outstanding loans and credit facilities balances of $32.7 million by $31.3
million.
Selected Financial Results and Operating Data:
|
|
|
Three months
ended
December 31,
|
Year ended
December 31,
|
($000s, except for
per share items or unless otherwise noted)
|
2021
|
2020
|
2021
|
2020
|
Key Financial
Data
|
|
|
|
|
|
Total
revenues
|
26,531
|
19,817
|
109,761
|
103,933
|
Net earnings
attributable to equity shareholders
|
4,252
|
125
|
10,877
|
199
|
Net earnings per
share - basic and diluted
|
0.09
|
0.00
|
0.24
|
0.00
|
Cash flows (used in)
from operating activities
|
(6,326)
|
22,858
|
2,388
|
47,983
|
Cash flows (used in)
from operating activities per share - basic and diluted
|
(0.15)
|
0.52
|
0.05
|
1.08
|
Key Operating
Data
|
|
|
|
|
Land
Development
|
|
|
|
|
Total residential
lots sold (units)
|
49
|
30
|
247
|
225
|
Residential lot
revenues
|
8,423
|
4,772
|
41,095
|
39,189
|
Development land
revenues
|
-
|
7,146
|
5,870
|
16,628
|
|
|
|
|
|
Home
Building
|
|
|
|
|
Homes sold
(units)
|
51
|
28
|
191
|
163
|
Revenues
(1)
|
26,024
|
12,198
|
92,416
|
75,025
|
Outstanding new home
orders at period end (units)
|
|
|
141
|
83
|
(1)
|
Includes other
revenues and revenues of $7,916,000 for 47 lots in Q4 2021 and
$29,620,000 for 187 lots in YE 2021 purchased by the Home Building
division from the Land Development division ($4,299,000 and 28 in
Q4 2020; $26,909,000 and 163 in YE 2020) and sold with the home.
These amounts are eliminated on consolidation
|
($000s, except for
per share items or unless otherwise noted)
|
|
|
As at Dec. 31,
2021
|
As at Dec. 31,
2020
|
Key Balance Sheet
Data
|
|
|
|
|
Cash and cash
equivalents
|
|
|
63,975
|
29,743
|
Total
assets
|
|
|
324,929
|
266,494
|
Loans and credit
facilities
|
|
|
32,668
|
21,470
|
Shareholders'
equity
|
|
|
228,624
|
187,676
|
Loans and credit
facilities to total assets
|
|
|
10%
|
8%
|
Outlook
Supported by a solid financial position, a strong new-home
market and a turnaround in the Alberta economy, Genesis is well-positioned to
take advantage of growth opportunities.
The Calgary Metropolitan Area
economy was stronger in 2021, driven in part by improved oil and
gas prices. International immigration to Calgary continued to grow in 2021 with
increased federal immigration targets and growing interprovincial
migration. The Calgary Real Estate Board forecasts that
Calgary is entering 2022 with some
of the tightest market conditions seen in over a decade and housing
market momentum will continue well into 2022. Despite these
positive signs, economic uncertainty and volatility are likely to
remain. Increases in interest rates, supply chain issues and
inflationary pressures will affect operations and could impact the
overall economic recovery. Genesis remains cautious in planning its
strategy and operations.
Genesis Annual Meeting
Genesis will hold its annual general meeting on May 25, 2022 at 9 am
(Mountain Daylight Time). The meeting will be held as a
virtual only shareholders meeting.
About Genesis
Genesis is an integrated land developer and residential home
builder operating in the Calgary
Metropolitan Area ("CMA") holding a portfolio of well-located,
entitled and unentitled primarily residential lands and serviced
lots in the CMA.
Additional Information
The information contained in this press release should be read
in conjunction with the consolidated financial statements for the
years ended December 31, 2021 and
2020 and the related Management's Discussion and Analysis
("MD&A") dated March 2, 2022
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.