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

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.


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
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
In the 21st century, security on the Internet has become one of the most important issues. We hear more and more about cyber-attacks on the websites of large corporations, banks and even small businesses. When online we’re concerned not only for our own safety but also our privacy. We have to know that hackers usually start their preparation by investigating the private information of admins – the habits, interests, visited websites and so on. On the other hand, our own security is in danger bec...
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
DevOps is speeding towards the IT world like a freight train and the hype around it is deafening. There is no reason to be afraid of this change as it is the natural reaction to the agile movement that revolutionized development just a few years ago. By definition, DevOps is the natural alignment of IT performance to business profitability. The relevance of this has yet to be quantified but it has been suggested that the route to the CEO’s chair will come from the IT leaders that successfully ma...
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
SYS-CON Events announced today that Interface Masters Technologies, a leader in Network Visibility and Uptime Solutions, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading vendor in the network monitoring and high speed networking markets. Based in the heart of Silicon Valley, Interface Masters' expertise lies in Gigabit, 10 Gigabit and 40 Gigabit Eth...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
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 @...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...