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 three–year
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%.
Selected Financial
Results and Operating Data:
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Three months
ended
March 31,
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($000s, except for
per share items or unless otherwise noted)
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2021
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2020
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Key Financial
Data
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Total
revenues
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18,713
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23,652
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Net earnings (loss)
attributable to equity shareholders
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1,322
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(7,383)
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Net earnings (loss)
per share - basic and diluted
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0.03
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(0.18)
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Cash flows from
operating activities
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383
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8,188
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Cash flows from
operating activities per share - basic and diluted
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0.01
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0.19
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Selected Financial
Results and Operating Data (continued):
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Three months
ended
March 31,
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($000s, except for
per share items or unless otherwise noted)
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2021
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2020
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Key Operating
Data
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Land
Development
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Total residential
lots sold (units)
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47
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32
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Residential lot
revenues
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8,581
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5,752
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Development land
revenues
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925
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8,987
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Home
Building
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Homes sold
(units)
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31
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30
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Revenues
(1)
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13,870
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14,088
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Outstanding new home
orders at period end (units)
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124
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63
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(1)
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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
2020) and sold with the home. These amounts are eliminated on
consolidation
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($000s, except for
per share items or unless otherwise noted)
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As at Mar. 31,
2021
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As at Dec. 31,
2020
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Key Balance Sheet
Data
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Cash and cash
equivalents
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24,898
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29,743
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Total
assets
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265,824
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266,494
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Loans and credit
facilities
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23,846
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21,470
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Shareholders'
equity
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189,142
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187,676
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Loans and credit
facilities (debt) to total assets
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9%
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8%
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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.