CALGARY,
AB, July 28, 2022 /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,
2022 ("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 2022:
2022 Highlights (Q2 2022 and YTD 2022)
- 198 New Home Orders YTD, up 47% from YTD 2021:
New home orders for the six months ended June 30, 2022 were 198 units compared to 135
units for the same period in 2021. The Corporation ended the second
quarter of 2022 with 272 outstanding new home orders, compared to
125 at the end of Q2 2021.
- Dividend Declared: The Corporation declared
an unconditional special cash dividend of $0.075 per common share for a total of
$4.265 million on July 28, 2022, payable on August 26, 2022 to shareholders of record on
August 12, 2022.
- Land Acquisitions: In Q2 2022, Genesis entered
into a binding agreement to acquire approximately 160 acres of
future residential development land in the southeast sector of the
City of Calgary. Depending on the
timing of the receipt of certain approvals from the City of Calgary, the closing date will be
either June 15, 2023 for a total
purchase price of $28.0 million
or January 31, 2025 for a total
purchase price of $30.0 million.
Subsequent to the period end, Genesis paid $5.0 million to acquire land from two limited
partnerships (controlled entities within the consolidated entity).
With this transaction Genesis will directly own three land parcels
totaling 456 acres in North Conrich, on the eastern edge of
Calgary, in Rocky View County. The
transaction closed on July 28,
2022.
- Cash on Hand of $11.9
Million: On June 30,
2022, Genesis had $11.9
million in cash and cash equivalents and loans and credit
facilities of $18.0 million which is
6% of the total book value of assets.
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)
|
2022
|
2021
|
2022
|
2021
|
|
Key Financial Data
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|
|
|
|
|
|
Total
revenues
|
22,211
|
29,529
|
42,590
|
48,242
|
|
Net earnings (loss)
attributable to equity shareholders
|
97
|
2,688
|
(399)
|
4,010
|
|
Net earnings (loss) per
share - basic and diluted
|
0.00
|
0.06
|
(0.01)
|
0.09
|
|
Cash flows (used in)
from operating activities
|
(12,891)
|
7,084
|
(39,333)
|
7,467
|
|
Cash flows (used in)
from operating activities per share -
basic and
diluted
|
(0.22)
|
0.16
|
(0.69)
|
0.17
|
|
Key Operating Data
|
|
|
|
|
|
Land Development
|
|
|
|
|
|
Total residential lots
sold (units)
|
24
|
66
|
56
|
113
|
|
Residential lot
revenues
|
4,746
|
10,414
|
10,454
|
18,995
|
|
Development land
revenues
|
-
|
-
|
2,200
|
925
|
|
|
|
|
|
|
Home Building
|
|
|
|
|
|
Homes sold
(units)
|
36
|
62
|
67
|
93
|
|
Revenues
(1)
|
21,524
|
28,427
|
38,790
|
42,297
|
|
Outstanding new home
orders at period end (units)
|
|
|
272
|
125
|
|
(1) Includes other revenues
and revenues of $4,059,000 for 22 lots in Q2 2022 and $8,854,000
for 50 lots in YTD 2022 purchased by the Home Building division
from the Land Development division ($9,312,000 and 62 in Q2 2021;
$13,975,000 and 93 in YTD 2021) and sold with the home. These
amounts are eliminated on consolidation.
|
Selected Financial Results and Operating Data
(continued):
|
($000s, except for
per share items or unless otherwise noted)
|
|
|
As at Jun. 30,
2022
|
As at Dec. 31,
2021
|
|
Key Balance Sheet Data
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
11,919
|
63,975
|
|
Total assets
|
|
|
322,862
|
324,929
|
|
Loans and credit
facilities
|
|
|
18,014
|
32,668
|
|
Shareholders'
equity
|
|
|
228,243
|
228,624
|
|
Loans and credit
facilities to total assets
|
|
|
6 %
|
10 %
|
Outlook
Supported by a solid financial position, a robust new-home
market and a stronger Alberta and
Calgary economy, Genesis remains
well-positioned to take advantage of growth opportunities.
Driven by improved oil and natural gas prices and increases in
international and interprovincial immigration, prospects for the
local economy are positive for 2022. However, increasing interest
rates and inflationary pressures are impacting home affordability.
While housing price gains, rising lending rates and consumer
inflation are expected to weigh on demand in the second half of
this year, home supply in the Calgary market remains tight at just under 2
months. In its June report, the Calgary Real Estate Board noted
that further interest rate increases are expected to slow sales
activity, with some slippage in price growth possible in the coming
months. Considering market conditions and economic uncertainty,
Genesis remains cautious in executing its strategy.
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, 2022 and 2021 and the
related Management's Discussion and Analysis ("MD&A") dated
July 28, 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.
Website: 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.