GDC Genesis Land Development Corp

CALGARY, AB, Nov. 3, 2021 /CNW/ - Genesis Land Development Corp. (TSX: GDC) (the "Corporation" or "Genesis") reported its financial and operating results for the three months ("Q3") and nine months ended September 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 third quarter of 2021:

2021 Highlights (Q3 2021 and YTD 2021)

• 168 New Home Orders, up 22% from YTD 2020: New home orders for YTD 2021 were 168 units compared to 138 units for the same period in 2020. The Corporation ended the third quarter of 2021 with 111 outstanding new home orders, compared to 57 at the end of Q3 2020.
• Land Servicing Spend up 155% from YTD 2020: Implementation of Genesis' growth strategy is proceeding well with land servicing expenditures during the first nine months of 2021 of $37.5 million, including three new subdivision phases, up from $14.7 million for the same period in 2020. Housing operations have expanded to five communities as of September 30, 2021, up from two a year earlier including operations in two communities being developed by third party developers.
• Revenues of $83.2 Million in YTD 2021: Genesis sold 140 homes, 58 residential lots to third parties and four development land parcels through September 30, 2021 generating revenues of $83.2 million. In the same period in 2020, Genesis sold 135 homes, 60 residential lots to third parties and three development land parcels generating revenues of $84.1 million. Genesis sold 47 homes, 38 residential lots to third-parties and three development land parcels in Q3 2021 generating revenues of $35.0 million. In Q3 2020, Genesis generated revenues of $29.7 million which included 53 homes and 23 residential lots sold to third parties.
• $6.6 Million Net Earnings in YTD 2021: Net earnings attributable to equity shareholders in YTD 2021 were $6.6 million ($0.16 net earnings per share - basic and diluted) compared to net earnings attributable to equity shareholders of $0.07 million ($0.00 net earnings per share - basic and diluted) in YTD 2020. Net earnings attributable to equity shareholders in Q3 2021 were $2.6 million ($0.06 net earnings per share - basic and diluted) compared to net earnings attributable to equity shareholders of $3.8 million ($0.09 net earnings per share - basic and diluted) in Q3 2020.
• $29.7 Million of Cash and Cash Equivalents: On September 30, 2021, Genesis had $29.7 million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $21.4 million by $8.3 million.

Selected Financial Results and Operating Data:

Outlook

The Calgary Metropolitan Area economy has been relatively strong in 2021, primarily due to improved oil and gas prices resulting in lower unemployment levels (9.2% as of September 2021 per the City of Calgary) and a continued strong housing market. The Calgary Real Estate Board forecasts that housing market momentum will continue for the remainder of 2021 fueled by low mortgage interest rates, low levels of housing supply and pent up demand for suburban single-family homes. Despite these positive signs, economic uncertainty and volatility are likely to remain as the COVID-19 pandemic continues to impact the Alberta economy. Global and Canadian supply chain issues and inflationary pressures will affect operations and could impact the overall economic recovery. Genesis remains cautious in planning its strategy and operations.

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 nine months ended September 30, 2021 and 2020 and the related Management's Discussion and Analysis ("MD&A") dated November 3, 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 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.