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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: 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 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 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 environment. As a result of securing project approvals and the stabilization 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 Corporation (OTCBB: Bulletin Board: ICBL). We are pleased with the progress that is being made on completing the merger and the resultant synergies that we anticipate."

The Company's Financial Statements have been prepared in accordance with generally excepted accounting principals ("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, is a high-speed Internet cable modem services provider. The use of cable modems for Internet access provides customers the ability to download and upload multi-media at speeds hundreds of times faster than those of typical telephone modems.

"Safe Harbor" statement under the Private Securities Litigation Reform Act 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" 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
 ----------- -----------
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
 ----------- -----------

Operating expenses
Selling, administrative and general
 expenses 2,325,000 2,011,589
 ----------- -----------
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)
 =========== ===========

Net income 587,000 6,563,471
 =========== ===========

Earnings per share 0.11 1.29
 =========== ===========

Weighted average number of shares 5,300,000 5,085,754
 =========== ===========
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 2, 1999
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