CORRECTING and REPLACING Walton Yellowhead Development Corporation Reports First Quarter 2013 Results
CALGARY--(BUSINESS WIRE)-- Headline of release should read: Walton Yellowhead Development Corporation Reports First Quarter 2013 Results (sted Walton Yellowhead Development Corporation Reports on Project Update and Fiscal Year-End and Q4 2012 Results).
The corrected release reads:
WALTON YELLOWHEAD DEVELOPMENT CORPORATION REPORTS FIRST QUARTER 2013 RESULTS
Walton Yellowhead Development Corporation (the "Corporation") announced today its results for the first quarter of 2013.
First Quarter Financial Results
During the first quarter of 2013, the Corporation generated total revenues of $461 (March 31, 2012 - $4,815) and incurred total expenses of $190,400 (March 31, 2012 - $194,160), which translated into a net loss before tax of $189,939 (March 31, 2012 - $189,345).
The amount of revenues and expenditures incurred by the Corporation to date are not materially inconsistent with the amounts originally anticipated by management given the current stage of development. Due to the delay in obtaining municipal approvals and the revised scope of work to service the project when evaluated against the original assumptions used by management in preparing the prospectus, the Corporation's ability to meet the investment objectives as outlined in the prospectus may be adversely impacted.
While management has made adjustments to the development plan to enable completion of the project within the approximate three-year investment time frame, it is still obtaining additional information which will allow it to evaluate what impact these changes may have on the targeted internal rate of return for the project. Management will report back to investors once an evaluation is complete.
Highlights for the First Quarter
During the first quarter of 2013, the Corporation:
- Submitted a revised tentative plan to the City of Edmonton to address concerns raised by the Transportation Department on the originally planned alignment for 118A Avenue. Subsequently, the Transportation Department recommended approval of the application for subdivision.
- Commenced preparing a detailed design and engineering drawings, including, an update to the Neighbourhood Design Report in accordance with the accepted servicing solution.
- Started preparing tender documents to obtain contract prices for work to service the property including earthworks, underground utilities and surface works.
The Corporation held a working session meeting with its Board of Directors to evaluate what impact the revisions to the servicing concept and transportation-related design imposed by the City of Edmonton would have on the overall investment objectives of the Corporation, and to consider what steps the Corporation could take to address any deviations in cash flows and project timing, when compared to the project's initial assumptions. The Corporation is still obtaining additional information which will allow it to evaluate what impact these changes may have on the targeted internal rate of return for the project.
Launched in 2011, the Corporation owns a 131.4-acre industrial development within the Winterburn Industrial Park, in northwest Edmonton, Alberta, which is marketed under the name "Yellowhead 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 (Alberta) LP, both of which are members of the Walton Group.
Walton is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. As one of North America's leading land-based real estate investment and development firms, our expertise is in the research, acquisition, management and development of strategically located land in major growth corridors throughout Canada and the U.S. Walton currently manages over 74,000 acres, laying the foundation for communities where people can live, work and play, and creating wealth for our clients around the globe. Since 1979, Walton has returned over $1.4 billion CAD* in client distributions.
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 three months ended March 31, 2013, and related notes, prepared in accordance with International Financial Reporting Standards.
*As of March 31, 2013, the amount returned is unaudited and consists of:
- Exit proceeds on sales of pre-development land
- Distributions, interest and principal repayment on development projects
- Interest and principal repayment on corporate bonds
Walton Yellowhead Development Corporation
Blair Nixon, 1.403.265.4255
KEYWORDS: North America Canada
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