CALGARY, AB, May 5, 2021 /CNW/ – Genesis Land Development Corp. (TSX: GDC) (the “Corporation” or “Genesis”) reported its financial and operating results for the three months (“Q1”) ended March 31, 2021. 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.
As demonstrated in the highlights below, Genesis has focused on executing its business plan while preserving cash resources and protecting its balance sheet:
Q1 2021 Highlights
- 72 New Home Orders, up 85% from Q1 2020: New home orders for the three months ended March 31, 2021 were 72 units compared to 39 units for the same period in 2020. The Corporation ended the first quarter of 2021 with 124 outstanding new home orders, compared to 63 in Q1 2020.
- $18.7 Million of Revenues in Q1 2021: Genesis sold 31 homes, 16 residential lots to third-parties and a development land parcel, held by a controlled limited partnership, in Q1 2021 generating revenues of $18.7 million. In Q1 2020, Genesis sold 30 homes, 2 residential lots to third-parties and one development land parcel generating revenues of $23.7 million.
- $1.3 Million Net Earnings in Q1 2021: Net earnings attributable to equity shareholders in Q1 2021 were $1.3 million ($0.03 net earnings per share – basic and diluted) compared to net loss attributable to equity shareholders of $7.4 million ($0.18 net loss per share – basic and diluted) in Q1 2020.
- $29.2 Million Land Acquisition: In Q1 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, currently scheduled for April 2022. Upon completion, the community is expected to yield over 1,200 housing units.
- $24.9 Million of Cash and Cash Equivalents: On March 31, 2021, Genesis had $24.9 million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $23.8 million by $1.1 million.
- $50-Million Corporate Revolving Line of Credit: In Q1 2021, Genesis finalized a $50-million threeâyear fixed term secured corporate revolving line of credit with a major Canadian financial institution at an interest rate per annum equal to the higher of prime +1.90% or 4.35%.
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Selected Financial Results and Operating Data: |
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Three months ended |
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($000s, except for per share items or unless otherwise noted) |
2021 |
2020 |
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Key Financial Data |
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Total revenues |
18,713 |
23,652 |
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Net earnings (loss) attributable to equity shareholders |
1,322 |
(7,383) |
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Net earnings (loss) per share – basic and diluted |
0.03 |
(0.18) |
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Cash flows from operating activities |
383 |
8,188 |
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Cash flows from operating activities per share – basic and diluted |
0.01 |
0.19 |
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Selected Financial Results and Operating Data (continued): |
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Three months ended |
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($000s, except for per share items or unless otherwise noted) |
2021 |
2020 |
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Key Operating Data |
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Land Development |
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Total residential lots sold (units) |
47 |
32 |
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Residential lot revenues |
8,581 |
5,752 |
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Development land revenues |
925 |
8,987 |
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Home Building |
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Homes sold (units) |
31 |
30 |
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Revenues (1) |
13,870 |
14,088 |
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Outstanding new home orders at period end (units) |
124 |
63 |
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(1) |
Includes other revenue and revenues of $4,663,000 for 31 lots in Q1 2021 purchased by Genesis’ home building division from its land development division ($5,175,000 and 30 in Q1 |
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($000s, except for per share items or unless otherwise noted) |
As at Mar. 31, |
As at Dec. 31, |
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Key Balance Sheet Data |
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Cash and cash equivalents |
24,898 |
29,743 |
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Total assets |
265,824 |
266,494 |
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Loans and credit facilities |
23,846 |
21,470 |
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Shareholders’ equity |
189,142 |
187,676 |
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Loans and credit facilities (debt) to total assets |
9% |
8% |
Outlook
The Calgary Metropolitan Area economy has seen a modest rebound since the summer of 2020 which has led to lower unemployment levels and a stronger housing market. Vaccines being rolled out across Canada, firmer natural resource prices, increased job growth, record levels of savings and continued low interest rates, have all contributed to a stronger housing market in the first quarter of 2021.
The Calgary Real Estate Board forecasts that housing market momentum, fueled by low mortgage interest rates, low levels of housing supply and increased demand for suburban single-family homes, will continue for the remainder of 2021. Alberta GDP is forecast by RBC Economics to grow by 4.3% in 2021. Despite these positive signs there is significant uncertainty as to the depth and duration of any economic recovery and Genesis remains cautious in planning its strategy and operations.
Genesis Annual Meeting
Genesis will hold its Annual General Meeting on May 14, 2021 at 9 am (Mountain Daylight Time). As a result of ongoing provincial COVID-19 limitations and restrictions on in-person indoor gatherings, our Meeting will be held as a virtual only shareholders meeting. If the provincial COVID-19 limitations and restrictions on in-person indoor gatherings are modified or removed such that an in-person meeting of Genesis shareholders would be permitted.
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 months ended March 31, 2021 and 2020 and the related Management’s Discussion and Analysis (“MD&A”) dated May 5, 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 favourable 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; labour 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.
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