Melcor Developments Ltd. (TSX:MRD) Reports Second Quarter 2011 Results
EDMONTON, ALBERTA -- (Marketwire) -- 07/27/11 -- Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development company, today reported financial results for the six month period ended June 30, 2011. Melcor recorded net income of $8.43 million or $0.28 per share (basic) on revenue of $49.47 million compared with net income of $13.18 million or $0.43 per share (basic) on revenue of $64.40 million for the same period in 2010.
Second quarter net income was $4.49 million or $0.15 per share (basic) on revenue of $24.62 million compared to net income of $6.28 million or $0.20 per share (basic) on revenue of $34.83 million in the second quarter of 2010.
Ralph Young, Melcor's President and CEO stated: "As anticipated, revenue in the first half of 2011 was slightly behind our 2010 results; however, we are pleased with the progress we are making in executing our business plan. We believe we are on track for the remainder of 2011 and well positioned for 2012, as we continue to strategically invest in new community and property development projects to drive future results."
Additional highlights for Q2-2011 include:
-- Fair value gains on investment properties of $2.23 million for the six month period ended June 30, 2011 as a result of higher leasing activity and continuing progress on Property Development projects. -- The Community Development division continues to build inventory across all regions to meet current and future demand. Cash used in these development activities was $12.73 million in Q2-2011 compared to $0.80 million in Q2-2010. -- The Investment Properties division continues to build its US holdings through the acquisition of a 264-unit residential property near Houston, Texas for US$21.50 million. -- Melcor made the following appointments: -- Brian Baker as Executive Vice President and Chief Operating Officer; -- Peter Daly as Executive Vice President, Community Development Division; and -- Darin Rayburn as Executive Vice President, Investment Properties Division.
Melcor expects the current moderate rate of housing demand to incrementally improve through the balance of 2011. Melcor continues to identify and pursue opportunities in the western Canadian marketplace. The company is cautiously optimistic that the basic fundamentals of the western Canadian economy, particularly in Alberta, will have a positive effect on Melcor's future growth. In addition, Melcor continues its planned expansion into the US real estate market where it believes relatively good investment opportunities are available.
Melcor Developments Ltd. - Business Contact
Ralph B. Young
President & CEO
Melcor Developments Ltd. - Investor Relations
Jonathan Chia, CA
VP Finance & CFO