CALGARY,
AB, May 5, 2022 /CNW/ - Genesis Land
Development Corp. (TSX: GDC) (the "Corporation" or "Genesis")
reported its financial and operating results for the three months
ended March 31, 2022 ("Q1"). 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 quarter of 2022:
Q1 2022 Highlights
- 175 New Home Orders, up 143% from Q1 2021: New
home orders for the three months ended March
31, 2022 were 175 units compared to 72 units for the same
period in 2021. The Corporation ended the first quarter of 2022
with 285 outstanding new home orders, compared to 124 at the end of
Q1 2021.
- $20.4 Million of
Revenues in Q1 2022: In Q1 2022, Genesis sold 31
homes, 4 residential lots to third parties and a development land
parcel, generating aggregate revenues of $20.4 million. In Q1 2021, Genesis sold 31 homes,
16 residential lots to third parties and a development land parcel
held by a controlled limited partnership, generating aggregate
revenues of $18.7 million.
- $0.5 Million Net Loss in Q1
2022: Net loss attributable to equity shareholders
in Q1 2022 was $0.5 million
($0.01 net loss per share - basic and
diluted), compared to net earnings attributable to equity
shareholders of $1.3 million
($0.03 net earnings per share - basic
and diluted) in Q1 2021.
- $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. A non-refundable deposit of $2.2 million was paid in February 2021. Genesis closed the transaction on
April 4, 2022 and paid the balance of
$27.0 million to the seller. This
project, now called "Huxley", is expected to be under development
in 2023.
- Cash on Hand of $23.0
Million: On March 31,
2022, Genesis had $23.0
million in cash and cash equivalents, which exceeded
outstanding loans and credit facilities balances of $15.4 million by $7.6
million.
Selected Financial Results and Operating Data:
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|
|
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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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|
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2022
|
2021
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Key Financial Data
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|
|
|
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Total
revenues
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|
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20,379
|
18,713
|
Net (loss) earnings
attributable to equity shareholders
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(496)
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1,322
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Net (loss) earnings per
share - basic and diluted
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|
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(0.01)
|
0.03
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Cash flows (used in)
from operating activities
|
|
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(26,442)
|
383
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Cash flows (used in)
from operating activities per share - basic and diluted
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|
(0.47)
|
0.01
|
Selected Financial Results and Operating Data
(continued):
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|
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Three months
ended
March 31,
|
($000s, except for
per share items or unless otherwise noted)
|
|
|
2022
|
2021
|
Key Operating
Data
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Land
Development
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Total residential lots
sold (units)
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32
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47
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Residential lot
revenues
|
|
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5,708
|
8,581
|
Development land
revenues
|
|
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2,200
|
925
|
|
|
|
|
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Home
Building
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|
|
|
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Homes sold
(units)
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|
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31
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31
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Revenues
(1)
|
|
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17,266
|
13,870
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Outstanding new home
orders at period end (units)
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285
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124
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(1)
Includes other revenues and revenues of $4,795,000 for 28 lots
in Q1 2022 purchased by the Home Building division from the Land
Development division ($4,663,000 and 31 in Q1 2021) and sold with
the home. These amounts are eliminated on
consolidation
|
($000s, except for per share items or unless
otherwise noted)
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|
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As at Mar. 31,
2022
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As at Dec. 31,
2021
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Key Balance Sheet Data
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|
|
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Cash and cash
equivalents
|
|
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22,996
|
63,975
|
Total assets
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|
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311,299
|
324,929
|
Loans and credit
facilities
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|
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15,433
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32,668
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Shareholders'
equity
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228,134
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228,624
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Loans and credit
facilities to total assets
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5%
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10%
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Outlook
Supported by a solid financial position, a strong new-home
market and a buoyant Alberta
economy, Genesis is well-positioned to take advantage of growth
opportunities in 2022.
Driven by improved oil and natural gas prices and increases in
international and interprovincial immigration, prospects for the
local economy are excellent for 2022. The Calgary Real Estate Board
reports that Calgary has some of
the tightest market conditions seen in over a decade and housing
market momentum will continue. Housing price gains, rising lending
rates and consumer inflation are expected to weigh on demand in the
second half of this year. Nonetheless, persistently tight housing
inventories are expected to continue over the next several months.
In light of geo-political events and resulting 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 months ended March 31, 2022 and 2021 and the related
Management's Discussion and Analysis ("MD&A") dated
May 5, 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.
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.