Walton Edgemont Development Corporation Reports Third Quarter 2012 Results
CALGARY, Alberta--(BUSINESS WIRE)-- Walton Edgemont Development Corporation (the "Corporation") announced today the Corporation's results for the third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Corporation generated total revenues of $15,654 and incurred total expenses of $246,057, which translated into a net loss before tax of $230,403. The revenues generated by the Corporation consisted of interest income earned on the cash held by the Corporation. The total expenses primarily consisted of $146,059 in costs for the management of the Corporation, $35,107 in servicing fees, and $33,906 in marketing expenses.
On a year-to-date basis, the Corporation generated total revenues of $38,243 and incurred total expenses of $701,088, which translated into a net loss before tax of $662,845. The revenues generated by the Corporation consisted of interest income earned on the cash held by the Corporation. The total expenses primarily consisted of $435,002 in costs for the management of the Corporation, $104,557 in servicing fees, and $70,707 in marketing expenses. The increase in management fees, servicing fees and marketing expense was offset by a $450,000 decrease in organizational expenses, which were incurred during the comparative period in relation to the Corporation's prospectus and private placement offerings. The nature and amount of expenses incurred during the year-to-date period were consistent with management's expectations for the period. The overall net loss incurred during the third quarter of 2012 was consistent with management's expectations because the Corporation is not expected to generate significant revenue, except during periods when the sale of lots is completed.
Highlights For The Third Quarter
During the third quarter, the following milestones were achieved:
In August, the Corporation executed a draft of the development servicing agreement ("Development Servicing Agreement") for the Phase 1 of the project with the City of Edmonton. This agreement allows the Corporation to commence underground utility construction for Phase 1 of the project while the Development Servicing Agreement is being finalized by the City; and
During September, the Corporation commenced installation of the underground utilities for Phase 1 of the project.
In comparison to the anticipated completion dates for the Phase 1 milestones as reported for the second quarter of 2012, the anticipated completion dates for some of the remaining Phase 1 milestones are slightly behind schedule. These delays are not, however, expected to affect the ability of the Corporation to complete the project within the approximate six-year time frame disclosed in the Corporation's prospectus and offering memorandum, and remains on track for achieving an internal rate of return of 13.5%.
Launched in 2011, the Corporation owns a four-phase residential 201.5-acre development in southwest Edmonton, Alberta, marketed under the name of "Woodhaven Edgemont."
The Corporation is managed by Walton Asset Management L.P. and the development of the properties is managed by Walton Development and Management L.P., both of which are members of the Walton Group.
The Walton Group is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. Walton's expertise is the research, acquisition, management and development of strategically located land in major North American growth corridors. With more than 70,000 acres of land under management, the Walton Group is one of North America's premier land asset managers. Walton manages and/or owns land assets in Phoenix, Austin, Dallas, Atlanta, Charlotte, the Washington D.C. region, Ottawa, Toronto, Edmonton and Calgary.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online atwww.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and are based on unaudited financial statements for the period ended September 30, 2012, and related notes, prepared in accordance with International Financial Reporting Standards.
Walton Edgemont Development Corporation
Blair Nixon, 1-403-265-4255
KEYWORDS: North America Canada
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