Genesis Development and Construction Ltd. Announces Record First Quarter Financial Results.NEW YORK--(BUSINESS WIRE)--June 25, 1998-- Revenues Increase 116%, Net Income Up 143% GENESIS DEVELOPMENT AND CONSTRUCTION LTD LTD 1 Laron-type dwarfism 2 Leukotriene D 3 Long-term depression, see there 4. Long-term disability . (Nasdaq: GDCUF, GDCOF, GDCWF and GDCZF) today reported record revenues and earnings for its first quarter ended March 31, 1998. Revenues under Israeli GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). for the three months ended March 31, 1998 increased 116% to approximately $11,580,000, from approximately $5,372,000 for the same period in the previous year. Net income under Israeli GAAP increased 143% to approximately $911,000, or $0.17 per share, for the three months ended March 31, 1998, from approximately $374,000, or $0.09 per share, for the same period in the previous year. Commenting on the record results, Eli Aran, Chairman of Genesis, stated, "We are once again very pleased by the Company's continued strong performance. Genesis has been capitalizing on the growth in the Israeli population and the resulting demand for both residential and public construction. The Company's financial results are proof positive that our strategic business plan is right on track and is being successfully implemented. By continuing to build on our expertise in developing Israeli mid-market residential properties, we expect to continue to enhance and expand our business opportunities and, as a result, increase our profitability." The Company reported its results under Israeli GAAP. In accordance with applicable Israeli accounting rules, the Company maintains its accounts and presents its financial statements in Israeli Shekels ("NIS Niš or Nish (both: nēsh), city (1991 pop. 175,391), SE Serbia, on the Nišava River. An important railway and industrial center, it has industries that manufacture textiles, electronics, spirits, and locomotives. "), adjusted for changes in the Israeli Consumer Price Index ("CPI (1) (Characters Per Inch) The measurement of the density of characters per inch on tape or paper. A printer's CPI button switches character pitch. (2) (Counts Per I ") through the latest balance sheet date ("Adjusted NIS"). This presentation permits the financial information to be set forth in constant terms as measured by changes in the CPI, as more fully explained in the Notes to such financial statements. Amounts stated herein are in U.S. dollars and have been translated from Adjusted NIS at the representative exchange rate on March 31, 1998 (NIS 3.597 = $1.00), as published by the Bank of Israel The Bank of Israel (Hebrew: בנק ישראל) is the central bank of Israel. The Bank of Israel is located in Jerusalem, with a branch office in Tel Aviv. . Such dollar amounts have been included solely for the convenience of the reader and should not be construed as a representation that the NIS amounts actually represent such dollar amounts or could be converted into dollars at that rate. Results under Israeli GAAP did not differ materially from results under U.S. GAAP, except with respect to the calculation of earnings per share for the three month period ended March 31, 1997. Under U.S. GAAP 2,660,000 of the Company's shares, which were subject to an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. arrangement during the first quarter of 1997, were not included in the weighted average number of outstanding shares used to calculate earnings per share for the first quarter of 1997. Under Israeli GAAP, such shares were included in the 1997 first quarter calculation of earnings per share. Headquartered in Haifa, Israel, Genesis Development and Construction Ltd. is an Israeli real estate development and construction management company with a primary focus on residential and public properties in Israel. The Company acts as a general contractor A general contractor is an organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or any other execution of work or facility. , subcontracting all of its construction activities. In addition to managing all of its own projects, Genesis also provides consulting, management and financial management services to other real estate developers and contractors. -0- This report may contain forward-looking statements which are made pursuant to the 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. provisions of 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. Such forward-looking statements involve risks and uncertainties, and concern, among other things, the ability of the Company to compete in the Israeli real estate industry and the strength of such industry, and are subject to changes in the Israeli economy, continuing immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , the availability of land, and the continued availability of raw materials and labor. Further information regarding these risks is described from time to time in the Company's filings with the Securities and Exchange Commission. CONTACT: GENESIS DEVELOPMENT AND CONSTRUCTION LTD. Eli Aran Telephone: (914) 634-0300 Fax: (914) 634-8077 or Rubenstein Investor Relations Investor relations The process by which the corporation communicates with its investors. Contact: Jeffrey Volk Telephone: (212) 843-8086 Fax: (212) 843-9200 |
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