Mr. Iain Stewart reports
GENESIS REPORTS 2021 SECOND QUARTER RESULTS
Genesis Land Development Corp. has released its financial and operating results for the three months (Q2) and six months ended June 30, 2021 (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 2021:
2021 highlights (Q2 2021 and YTD 2021)
135 new home orders, up 63 per cent from YTD 2020:
- New home orders in YTD 2021 were 135 units compared with 83 units for the same period in 2020. The corporation ended the second quarter of 2021 with 125 outstanding new home orders, compared with 55 at the end of Q2 2020.
revenues in Q2 2021:
Genesis sold 62 homes, four residential lots to third parties in Q2 2021 generating revenues of $29.5-million. In Q2 2020, Genesis sold 52 homes, 35 residential lots to third parties and one non-core development land parcel, held by a controlled limited partnership, generating revenues of $30.7-million.
$4.0-million net earnings in YTD 2021:
Net earnings attributable to equity shareholders in YTD 2021 were $4.0-million (10 cents net earnings per share -- basic and diluted) compared with net loss attributable to equity shareholders of $3.7-million (nine-cent net loss per share -- basic and diluted) in YTD 2020.
$25.7-million of cash and cash equivalents:
On June 30, 2021, Genesis had $25.7-million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $18.0-million by $7.7-million.
The Calgary Metropolitan Area economy has been relatively robust since the latter part of 2020. This has led to lower unemployment levels (9.1 per cent as of June, 2021, per the City of Calgary) and a stronger housing market. The Calgary Real Estate Board forecasts that housing market momentum will continue for the remainder of 2021 fuelled by low mortgage interest rates, low levels of housing supply, pent-up demand and increased demand for suburban single-family homes. Alberta GDP is forecast by RBC Economics to grow by 5.9 per cent in 2021. Despite these positive signs there is still uncertainty as to the depth and duration of the economic recovery and Genesis remains cautious in planning its strategy and operations.
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, 2021, and 2020 and the related management's discussion and analysis (MD&A) dated July 29, 2021, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via SEDAR or on the company's website.
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