Genesis Announces Special Cash Dividend and Reports 2016 Third Quarter Results

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:

 

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.