CALGARY, March 14, 2018 /CNW/ – Genesis Land Development Corp. (TSX: GDC) (the “Corporation” or “Genesis”) reported strong financial and operating results for the three months (“Q4”) and year ended December 31, 2017 (“YE 2017):
Key financial results and operating data for Genesis were as follows:
|
Three months ended |
Year ended |
|||
|
($000s, except for per share items or unless otherwise noted) |
2017 |
2016 |
2017 |
2016 |
|
Key Financial Data |
||||
|
Total revenues |
65,644 |
28,145 |
150,933 |
115,957 |
|
Direct cost of sales |
(36,833) |
(24,203) |
(97,704) |
(89,339) |
|
Gross margin |
28,811 |
3,942 |
53,229 |
26,618 |
|
Gross margin (%) |
43.9% |
14.0% |
35.3% |
23.0% |
|
Net earnings attributable to equity shareholders |
8,713 |
(1,216) |
16,998 |
5,906 |
|
Net earnings per share â basic and diluted |
0.20 |
(0.03) |
0.39 |
0.13 |
|
Cash flows from operating activities |
27,298 |
6,229 |
46,908 |
42,952 |
|
Cash flows from operating activities per share â basic and diluted |
0.62 |
0.14 |
1.08 |
0.98 |
|
Key Operating Data |
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|
Land Development |
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|
Total residential lots sold (units) |
78 |
65 |
266 |
204 |
|
Residential lot sales |
12,203 |
10,961 |
49,206 |
36,966 |
|
Gross margin on residential lot sales |
6,432 |
4,681 |
22,782 |
16,831 |
|
Gross margin (%) on residential lot sales |
52.7% |
42.7% |
46.3% |
45.5% |
|
Average revenue per lot sold |
156 |
169 |
185 |
181 |
|
Revenue – Development land sold |
41,000 |
– |
55,234 |
21,237 |
|
Home Building |
||||
|
Homes sold (units) |
44 |
56 |
148 |
166 |
|
Revenues |
18,463 |
24,456 |
67,707 |
83,249 |
|
Gross margin on homes sold |
2,656 |
4,633 |
11,257 |
13,833 |
|
Gross margin (%) on homes sold |
14.4% |
18.9% |
16.6% |
16.6% |
|
Average revenue per home sold |
420 |
437 |
457 |
501 |
|
Homes subject to firm sale contracts (units) |
31 |
39 |
31 |
39 |
|
($000s, except for per share items or unless otherwise noted) |
As at December 31, |
|
|
Key Balance Sheet Data |
2017 |
2016 |
|
Cash and cash equivalents |
23,585 |
14,318 |
|
Total assets |
301,425 |
288,995 |
|
Loans and credit facilities |
30,135 |
43,295 |
|
Total liabilities |
81,884 |
77,330 |
|
Shareholders’ equity |
201,397 |
205,751 |
|
Total equity |
219,541 |
211,665 |
|
Loans and credit facilities (debt) to total assets |
10% |
15% |
Strong Cash Flows from Operating Activities
In 2017, Genesis generated strong cash flows from operating activities of $46.9 million ($1.08 per share), an increase of $ 4.0 million ($0.10 per share) from the $42.9 million ($0.98 per share) in cash flows from operating activities in 2016.
Cash flows from operating activities were mainly used for the following:
- Reduce Genesis’ loans and credit facilities by $13.2 million, from $43.3 million at December 31, 2016 to $30.1 million at December 31, 2017. A significant portion of the loans and credit facilities outstanding at December 31, 2017 was made up of $22.2 million related to a vendor-take-back loan (the “VTB”) on Genesis’ southeast Calgary lands.
- Pay a $8.0 million installment on the VTB in January 2017.
- Declared two dividends totalling $19.9 million ($0.46 per share) to shareholders.
- $1.5 million (since 2015 – $ 4.8 million) was used to repurchase 493,085 common shares (since 2015 – 1,673,479) through Genesis’ normal course issuer bid (“NCIB”).
Genesis’ cash on hand increased by $9.3 million as at December 31, 2017 to $23.6 million in comparison to $14.3 million as at December 31, 2016. A further $8.0 million payment on the VTB was made in January 2018.
$17 million Net Earnings Attributable to Equity Shareholders in 2017
Net earnings for YE 2017 were $17 million ($0.39 per share), a $11.1 million increase compared to $5.9 million ($0.13 per share) for the year ended December 31, 2016.
Cash Dividends of $19.9 million and Continued Share Buybacks
Since 2014 when it paid its first dividend, Genesis has returned over $41.5 million to shareholders by way of dividends and bought back nearly 1.7 million common shares for over $4.7 million. The total repurchases under the NCIB represents 3.7% of the common shares outstanding at the commencement of the program in 2015.
|
($000s, except for number of shares and per share |
Dividend per |
Total |
Shares |
Cost of |
|
2017 |
0.46 |
19,896 |
493,085 |
1,456 |
|
2016 |
0.25 |
10,936 |
551,796 |
1,420 |
|
2015 |
0.12 |
5,331 |
628,598 |
1,887 |
|
2014 |
0.12 |
5,386 |
– |
– |
|
Total |
$0.95 |
$41,549 |
1,673,479 |
$4,763 |
Residential Lot Revenues up by 33%
Total residential lot sales in 2017 were $49.2 million (266 lots), up 33% from $37.0 million (204 lots) in 2016. During 2017, 132 lots were sold to third-party builders, more than twice the 58 lots sold to third-party builders in 2016. 34 of the lots sold to third-party builders in 2017 were premium lots in the Calgary community of Sage Meadows and 98 were in the City of Airdrie (2016 – 10 and 48 lots, respectively). In 2017, Genesis’ home building business sold 134 homes on Genesis lots, down from 146 homes sold in 2016.
Development Land Revenues of $55.2 million
Total development land sales in 2017 was $55.2 million including the sales by a limited partnership for $46.2 million from which third party debt of $9.1 million and debt owed to Genesis of $15.5 million was repaid.
Additional Information
The information contained in this press release should be read in conjunction with the consolidated financial statements for the year ended December 31, 2017 and 2016 and the related Management’s Discussion and Analysis (“MD&A”) dated March 14, 2018 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”.
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 Alberta, 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 Annual Information Form 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.
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