Welcome!

News Feed Item

Melcor Reports Record Results for Its 90th Year of Business

EDMONTON, ALBERTA -- (Marketwired) -- 03/12/14 -- Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development and asset management company reported solid results for the fourth quarter and year ended December 31, 2013. Revenue was a record $303.74 million, an increase of 10.5% over 2012 and total assets grew 19.4% to $1.73 billion. Fair value gains of $47.57 million were recorded in 2013, a decrease of 19.5% compared to 2012. Net income decreased by 6.1% to $98.62 million or $3.24 per share as a result of lower fair value gains in 2013 and one time adjustments related to the formation of Melcor REIT. Adjusted earnings, which reflect our proportionate interest in the earnings for the REIT, were $110.44 million or $3.63 per share, also a company record. This is compared to $105.02 million or $3.49 per share in 2012. Management considers adjusted earnings and adjusted earnings per share a clearer measure of operational and relative performance.

Strong revenue and earnings in the fourth quarter contributed to Melcor's performance in its 90th year of business. Fourth quarter revenue grew 7.2% to $152.19 million compared to Q4-2012. Basic earnings per share was $1.77 compared to $1.84 in the prior year while adjusted basic earnings was $1.87 compared to $1.84 in 2012.

Brian Baker, Melcor's President and Chief Executive Officer commented on the year: "We are pleased to report record results for 2013. Our results reflect the efforts of a disciplined team executing on its strategy. Our four principle operating divisions - combined with Melcor REIT - are integrated in a way that is unique in our industry. It is a powerful business model that fuels our continued growth in a controlled and balanced manner.

With a stable financial position, extraordinary assets, inventory for future development, and the strongest management team in industry, we remain confident of our future growth and success."

A Record Year

With continued strong market demand, 2013 was the third consecutive year that Melcor achieved record revenue. Some of the highlights of the year include:


--  Record consolidated revenues of $303.74 million and record revenues in
    each division 
--  Adjusted basic earnings per share of $3.63 
--  Asset growth of 19.4% to $1.73 billion 
--  Successful completion of the REIT IPO realized a long term strategy of
    accessing the capital markets to help support our continued growth 
--  Gross margin improved to 44.4% as a result of efficient execution in all
    divisions

Strategically and operationally, Melcor is well positioned for continued growth with an effective team and quality assets in markets that are outperforming national averages.

Building Strategically

Melcor REIT was formed through an IPO, which raised gross proceeds of $91.30 million. This strategic initiative resulted in the conversion of a portion of the equity held in the 27 assets sold to the REIT to cash. Part of the IPO proceeds were distributed to shareholders through a special dividend of $0.50 per share.

Melcor also continued to invest in land inventory, developing commercial properties and improving existing leasable properties in 2013.


--  The Community Development division acquired several parcels of raw land
    for future development, including: 
    --  the remaining 25% interest on 1,032.00 acres of land planned for
        future residential development in Aurora, Colorado 
    --  Canadian land assemblies totaling 576.81 acres in key markets
--  The Property Development division had projects totaling over $142.26
    million under development (at fair value) in 2013, compared to projects
    under development of $61.87 million in 2012. The division completed and
    transferred 13 buildings totaling 103,388 sq. ft. to the Investment
    Properties division in 2013. This compares with 6 buildings and 69,947
    sq. ft. last year. 
--  The Investment Properties and REIT divisions portfolios grew through
    third-party acquisitions and transfers of completed buildings from our
    Property Development division. Highlights of note include: 
    --  three third-party property acquisitions, totaling 345,543 sq. ft.
        (at JV%) at a cost of $49.05 million, two of which were completed by
        the REIT 
    --  29 condo units in the US for $2.59 million 
    --  55,156 sq. ft. (at JV%) with a fair value of $26.14 million from
        Property Development comprised of 13 buildings in Airdrie,
        Chestermere and Red Deer, Alberta

People: Our Key Asset

Brian Baker was appointed President and Chief Executive Officer on July 2, 2013 following the retirement of Ralph Young.

Over the past two years, Melcor has significantly expanded overall resource capacity with the addition of 38 employment positions. This additional talent base positions the company well to both manage our increasing asset base and to effectively execute on growth strategies.

Return to Shareholders

Melcor paid annual dividends of $0.50 per share, plus a special dividend of $0.50, to shareholders. Melcor has been paying dividends since 1969.

Outlook

The majority of our assets are in Alberta, with steadily growing inventory in the US. We believe the economic indicators in these regions provide a strong business outlook for the foreseeable future.


--  Alberta fundamentals remain solid, with low unemployment rates, high net
    in-migration, weekly earnings exceeding the national average, strong
    capital investment, moderate inflation and relative stability in the
    price of oil. These fundamentals create a favorable environment for both
    residential and commercial property development. 
--  The US continues its moderate economic recovery with some lingering
    uncertainty, but with an increasing sense of optimism.

Our key differentiators are our financial strength, diversified business model, proven track record and the experience and integrity of our personnel.

Annual Results

Information included in this press release is a summary of results. This press release should be read in conjunction with Melcor's 2013 Annual Report to shareholders. Melcor's consolidated financial statements and management's discussion and analysis are filed on SEDAR (www.sedar.com) and are available on Melcor's website at www.Melcor.ca. Melcor's management information circular and other material will be mailed to shareholders of record on or about March 21, 2014.

Annual General Meeting

We invite shareholders to join us at Melcor's annual meeting on April 24, 2014 at 11:00 am MDT. The meeting will be held in the Empire Ballroom at the Fairmont Hotel Macdonald, 10065 - 100 Street NW, Edmonton, Alberta. We look forward to seeing you there.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and asset management company with a rich heritage of integrity and innovation in real estate since 1923.

Through integrated operating divisions, Melcor manages the full life cycle of real estate development: acquiring raw land, community planning, construction and development, and managing revenue- producing office, retail and residential assets. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.

Melcor is committed to building communities that enrich quality of life - communities where people live, work, shop and play.

Non-Standard Measures

Adjusted earnings and adjusted basic earnings per share are key metrics used by management which are not defined by International Financial Reporting Standards ("IFRS"), do not have standard meanings and may not be comparable with other industries or companies. These non-IFRS measures are more fully defined and discussed in Melcor's Management Discussion and Analysis for the year ended December 31, 2013, which is available on SEDAR (www.sedar.com) and Melcor's website at www.Melcor.ca.

Forward-looking Statements

In order to provide our investors with an understanding of our current results and future prospects, our public communications often include written or verbal forward-looking statements.

Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-oriented financial information.

This news release and other materials filed with the Canadian securities regulators contain statements that are forward-looking. These statements represent Melcor's intentions, plans, expectations, and beliefs and are based on our experience and our assessment of historical and future trends, and the application of key assumptions relating to future events and circumstances.

Future-looking statements may involve, but are not limited to, comments with respect to our strategic initiatives for 2014 and beyond, future development plans and objectives, targets, expectations of the real estate, financing and economic environments, our financial condition or the results of or outlook of our operations.

By their nature, forward-looking statements require assumptions and involve risks and uncertainties related to the business and general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, valuations, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from targets, expectations, estimates or intentions expressed in forward-looking statements. We caution readers of this document not to place undue reliance on forward-looking statements. Assumptions about the performance of the Canadian and US economies and how this performance will affect Melcor's business are material factors we consider in determining our forward-looking statements. For additional information regarding material risks and assumptions, please see the discussion under Business Environment and Risk in our annual MD&A.

Readers should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Except as may be required by law, we do not undertake to update any forward-looking statement, whether written or oral, made by the company or on its behalf.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"A lot of times people will come to us and have a very diverse set of requirements or very customized need and we'll help them to implement it in a fashion that you can't just buy off of the shelf," explained Nick Rose, CTO of Enzu, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Cloud Expo, Inc. has announced today that Andi Mann returns to 'DevOps at Cloud Expo 2017' as Conference Chair The @DevOpsSummit at Cloud Expo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great t...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, introduced the technologies required for implementing these idea...
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive ad...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...