CALGARY, Alberta--(BUSINESS WIRE)--Walton Yellowhead 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 $2,148 and incurred total expenses of $201,788, which translated into a net loss before tax of $199,640. The revenues generated by the Corporation consisted of interest income earned on the cash held by the Corporation. The total expenses primarily consisted of $135,448 in costs for the management of the Corporation and $32,816 in servicing fees. The nature and amount of expenses incurred during the third quarter of 2012 were consistent with management’s expectations. The net loss before tax of $199,640 was partially offset by a deferred tax recovery of $49,910, resulting in an overall net loss of $149,730.
On a year-to-date basis, the Corporation generated total revenues of $10,749 and incurred total expenses of $591,976 which translated into a net loss before tax of $581,227. The revenues generated by the Corporation consisted of interest income earned on the cash held by the Corporation. The total expenses primarily consisted of $403,399 in costs for the management of the Corporation and $97,734 in servicing fees. The nature and amount of expenses incurred during the year-to-date period were consistent with management’s expectations for the period. The net loss before tax of $581,227 was partially offset by a deferred tax recovery of $280,402, resulting in an overall net loss of $300,825.
The net loss incurred for the third quarter and for the year-to-date period 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
- In July, the Corporation received approval from Edmonton’s City Council for the rezoning of Phase 1 to allow development for business and light industrial uses, and the construction of a storm water management facility;
- Management has been in discussions with senior administration from the City of Edmonton to ensure the most efficient and cost effective servicing solution is reached to address the servicing requirements for the Winterburn Industrial Area, in accordance with the Winterburn Industrial Area Master Plan (“AMP”); and
- In August, the Corporation submitted a technical background and cost analysis for a proposed servicing solution which was accepted in principle in September.
Due to the seasonal nature of construction in Edmonton and the longer than anticipated time to obtain approvals, no further construction is expected to commence in 2012 due to unfavorable weather conditions. As a result, the projected completion dates for the Phase 1 milestones are behind the anticipated completion dates reported for the second quarter of 2012. Construction will commence in spring 2013 when weather conditions permit. Notwithstanding these delays for Phase 1, the Corporation expects that it will be able to complete the overall project within the approximate three-year time frame disclosed in the Corporation’s prospectus, and remains on track for achieving an internal rate or return of 13%.
Additional Information
Launched in 2011, the Corporation owns a two-phase industrial 131.4-acre development in northwest Edmonton, Alberta, within the Winterburn Industrial Park.
The Corporation is managed by Walton Asset Management L.P. and the development of the property 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.
For more information about the Walton Yellowhead Development Corporation, please visit www.sedar.com. For more information about Walton, visit www.Walton.com.
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 at www.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.