Melcor Developments Ltd.

March 03, 2010 17:02 ET

Melcor Developments Ltd. (TSX: MRD) Reports Earnings for 2009

EDMONTON, ALBERTA--(Marketwire - March 3, 2010) - Melcor Developments Ltd. (TSX:MRD), an Alberta based public real estate development company, recorded net earnings of $23,224,000 or $0.78 per share (basic) for the twelve months ended December 31, 2009 on revenue of $136,608,000 compared with earnings of $41,021,000 or $1.32 per share (basic) on revenue of $108,436,000 for the same period in 2008. Fiscal 2009 was Melcor's fifth best year in the history of the Company in terms of earnings and would have been the fourth best based on earnings if 2008 results had not been buoyed by a large non-operating gain.

For the three months ended December 31, 2009, earnings are $9,918,000 or $0.33 per share (basic) on revenue of $48,872,000 compared to earnings of $14,404,000 or $0.47 (basic) per share on revenue of $41,758,000 during the same period in the prior year. 

While management expected that markets, in general, would remain depressed throughout 2009, they started to pickup during the first half of the year and have showed good strength since then. All divisions achieved significant progress despite tougher market conditions. 

Highlights for the year include:

  • The annexation of 1501 acres of land in two major communities (686 acres to the City of Regina and 815 acres to the City of Red Deer);
  • Advancement of development planning in all divisions which will benefit earnings and asset growth over the next 5 years;
  • An increase of 101,550 square feet of income producing properties (89,150 square feet net of joint venture interest) plus 50 residential rental units and the acquisition of 2 properties adjoining existing holdings;
  • Increased net operating income in all divisions over the prior year;
  • The opening in June of the Black Mountain Golf Course in Kelowna which generated positive cash from operations during the year; and
  • The successful mortgage financing of $37.8 million on investment properties at competitive terms.

Management expects that real estate markets will remain under pressure for the foreseeable future as the economy adjusts to continued credit uncertainty, the threat of increased interest rates and inflation, the impact of current government deficits and potential increases in vacancy rates for commercial properties. In spite of those challenges, the Company remains confident that it has the appropriate assets, capital resources and an experienced management team to manage operations through the remainder of the current economic recovery. We are cautiously optimistic that the basic fundamentals of the Alberta economy will have a positive affect on the real estate markets.

The annual meeting of Melcor Developments Ltd. will be held on April 16, 2010 at the University of Alberta, Business Building (Stollery Executive Development Centre) Room 504, 5th Floor, 11211 Saskatchewan Drive, Edmonton, Alberta, Canada.

Contact Information

  • Melcor Developments Ltd.
    Business Contact
    Ralph B. Young
    President & CEO
    (780) 423-6931
    Melcor Developments Ltd.
    Investor Relations
    Michael D. Shabada, C.A.
    Vice-President, Finance & CFO
    (780) 945-2819