Genesis Development and Construction Ltd. Announces 1998 Year End Revenues of $29.5 Million Dollars.NEW CITY, N.Y.--(BUSINESS WIRE)--July 2, 1999-- Genesis Development and Construction Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : GDCOF, GDCUF, GDCWF, GDCZF), announced its 1998 results. For the year ended December 31, 1998, the Company had total revenues of approximately $29.5 million, a decrease of $5.7 million, or 16.3% compared to approximately $35.2 million for the year ended December 31, 1997. Revenues from contracting in 1998 were $21.9 million, compared to $25.3 million for the year ended December 31, 1997. This decrease is attributed primarily to the fact that more projects were completed by the Company in 1997 than in 1998. The Company also had revenues of approximately $6.1 million from the sale of real estate development rights and approximately $1.4 million from consulting activities. Total cost of revenues amounted to $25.8 million, an increase of $.7 million or 2.7% compared to $25.1 million for the year ended December 31, 1997. Gross profit, as a percentage of total revenues decreased to 12.5% for the year ended December 31, 1998, from 28.6% for the year ended December 31, 1997, primarily as a result of an increase in costs associated with the sale of real estate rights. Gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for contracting increased to 9.7% for the year ended December 31, 1998, from 7.2% for the year ended December 31, 1997. As a result of the foregoing, the Company had net income of approximately $0.6 million for the year ended December 31, 1998, a decrease of approximately $6.0 million, as compared to $6.6 million for the year ended December 31, 1997 and earnings per share of $0.11 for the year ended December 31, 1998, a decrease of $1.18 as compared to the year ended December 31, 1997. The Company attributes the 1998 primarily results to the unsettled political atmosphere in Israel which, the Company believes, had a depressive de·pres·sive adj. 1. Tending to depress or lower. 2. Depressing; gloomy. 3. Of or relating to psychological depression. n. A person suffering from psychological depression. effect on the Israeli economy in general and led to a slow down in the real estate market. Mr. Eli Aran, Chairman of Genesis, in commenting about the 1998 fiscal year, made reference to the recent election of a new Prime Minister in Israel and the widely held expectation that the Israeli economy will now begin to improve. Furthermore, Mr. Aran states: "we are looking forward to returning to work under the current stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. environment. As a result of securing project approvals and the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders we will begin construction on our backlog of 1,255 units (representing approximately $150 million U.S.). With these events now behind us, the Company is excited not only about its growing business, but looks with anticipation to the recently announced merger with Internet Cable See cable Internet. Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: ICBL ICBL International Campaign to Ban Landmines ICBL Irish Credit Bureau LTD ). We are pleased with the progress that is being made on completing the merger and the resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials synergies that we anticipate." The Company's Financial Statements have been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally excepted accounting principals ("GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ") in Israel, which differ in certain respects from U.S. GAAP. In particular, under Israeli GAAP revenue derived from projects is recognized when at least 90% of the project is completed and at least 75% of the units in the project are sold or 25% of the project is completed and all units in the project are sold. Under U.S. GAAP the Company would be able to recognize revenues for a project when the project expenditures are predictable and there is a reasonable likelihood of completion. GENESIS DEVELOPMENT & CONSTRUCTION, LTD., operates its business primarily in three segments of the Israeli real estate industry: (i) development and construction, (ii) the provision of management and financial management services for construction projects and (iii) the sale of real estate development rights. Since the beginning of 1998, the Company has also engaged in the acquisition and development of income producing residential properties for long-term lease by the Company to agencies of the Israeli government. To date, the Company's revenues have been derived primarily from real estate development and construction activities and, to some extent, from the sale of real estate development rights and from consulting, management, and financial management services in connection with construction projects. INTERNET CABLE CORPORATION, headquartered in Charleston, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , is a high-speed Internet See broadband. cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. services provider. The use of cable modems for Internet access See how to access the Internet. provides customers the ability to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and upload See download. upload - /uhp'lohd/ To transfer programs or data over a digital communications link from a smaller or peripheral "client" system to a larger or central "host" one. Opposite: download. multi-media at speeds hundreds of times faster than those of typical telephone modems. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Statements in this release regarding Internet Cable Corporation and Genesis Development and Construction Ltd., which are not historical facts, are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements in this release, see the "Risk Factors" section in the Company's prospectus dated January 30, 1997 and in Internet Cable Corporation's prospectus dated May 10, 1999. -0-
GENESIS DEVELOPMENT AND CONSTRUCTION LTD.
Consolidated Statement of Operations for 1997/1998
Years Ended December 31, 1998
For the year ended
December 31,
--------------------------
1998 1997
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Revenues:
Contracting 21,919,000 25,347,491
Sale of real estate development rights 6,107,000 3,831,255
Sale of real estate development rights
to related parties -- 5,301,000
Consulting 1,427,000 689,693
----------- -----------
29,453,000 35,169,439
----------- -----------
Cost of revenues:
Contracting Costs (20,496,000) (23,513,485)
Cost of sale of real estate development
rights (5,171,000) (424,343)
Cost of sale of real estate development
rights to related parties -- (1,159,341)
Consulting costs (102,000) --
----------- -----------
(25,769,000) (25,097,169)
----------- -----------
Gross profit 3,684,000 10,072,270
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Operating expenses
Selling, administrative and general
expenses 2,325,000 2,011,589
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Consulting fees to related party -- --
Total operating expenses 2,325,000 2,011,589
----------- -----------
Operating income 1,359,000 8,060,681
Financial income (expenses), net (135,000) 222,487
Amortization of Bridge Notes issuance
costs -- (238,529)
----------- -----------
Income before income taxes 1,224,000 8,044,639
Income taxes (note 23) (593,000) (1,481,168)
----------- -----------
Income after taxes 631,000
Loss from affiliated companies (44,000) (1,481,168)
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Net income 587,000 6,563,471
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Earnings per share 0.11 1.29
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Weighted average number of shares 5,300,000 5,085,754
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