Melcor Developments announces third quarter results, declares quarterly dividend of $0.13

EDMONTON, AB—(Marketwired – November 03, 2017) – Melcor Developments Ltd. (TSX: MRD), an Alberta–based real estate development and asset management company, today reported results for the quarter ended September 30, 2017. Third quarter revenue was $62.80 million, down 1% over Q3–2016. Revenue for the first half of the year was $148.32 million, up 9%.

Year to date revenue growth was driven by a significant increase in sales in the Community Development division, with divisional revenue up 23% compared to 2016. This was offset by the 2% decline in Investment Property revenue as a US asset was sold in December 2016.

Net income for the quarter was $11.52 million or $0.34 per share (basic), down 29% over Q3–2016. Year to date net income was $6.44 million or $0.19 per share (basic) compared to $10.32 million or $0.31 per share (basic) in the same period of 2016. Year to date net income is significantly impacted by the $12.75 million non–cash fair value loss on investment properties. This loss was primarily the result of an increase in capitalization rates on our downtown Edmonton office properties recorded in the first quarter. This compares to a gain of $15.59 million in the nine months ended in 2016.

Funds from operations (FFO) was $12.79 million or $0.34 per share (basic) in the quarter, up 25% over Q3–2016. Year to date FFO was $28.17 million or $0.84 per share compared to $22.80 million or $0.69 per share in the same period of 2016. FFO eliminates the elements that have no cash impact on our business from net income and management believes FFO better reflects Melcor's true operating performance.

Darin Rayburn, Melcor's President and Chief Executive Officer, commented on the quarter: “We continue to see stable performance across the company and are pleased with our results through the first nine months of 2017. Our Community and Property Development divisions have had an active fall construction season with mild weather and no snow through the end of October.

Our Investment Properties and REIT divisions continue to perform steadily, with stable occupancy and operating results on our portfolio of commercial and residential assets.

I am grateful to each member of our team for demonstrating creativity and innovation in response to an economic environment that has changed dramatically over the past several years. Our team has continually adapted their business to meet changing market needs and our stable results in 2017 are attributable to their commitment to understand and adjust to the market across all divisions.

Overall, our geographic diversity, product mix, conservatively managed balance sheet and strong team provide us with a solid foundation for the future in spite of ongoing market stress. We are well positioned going into our fourth quarter, which has historically been our strongest quarter of the year.”

The Board today declared a quarterly dividend of $0.13 per share, payable on December 29, 2017 to shareholders of record on December 15, 2017. The dividend is an eligible dividend for Canadian tax purposes.

Third Quarter Results

We achieved stable results in each of our main operating divisions in Q3–2017 and year to date, with year to date growth in revenue driven by the 23% increase in revenue in the Community Development division. We continue to focus on working with our builders to diversify our product mix with an emphasis on affordable lot options. This strategy has positively impacted our financial results, with inventory remaining well–positioned in many of our active communities.

Our Community Development and Property Development divisions have been busy through the 2017 construction season. Driven by builder demand, the Community Development division began development of new community phases in many of our operating regions. The Property Development team has 185,000 sf in development underway for 2017. During the quarter, two properties were completed and transferred to our Investment Properties division.

Highlights of the third quarter include:

  • Revenue of $62.80 million remained steady compared to Q3–2016 and grew by 9% to $148.32 million year to date. Year to date revenue growth of 23% in the Community Development division is the largest driver in the overall revenue growth.
  • The Investment Properties and REIT division combined revenue remained steady over 2016 as a result of stable occupancy and gross leasable area in the portfolio.
  • Net income was $11.52 million in the quarter and $6.44 million year to date. Year to date net income is significantly impacted by the $12.75 million non–cash fair value loss on investment properties. This loss was primarily the result of an increase in capitalization rates on our downtown Edmonton office properties recorded in the first quarter, as well as fair value losses on REIT units due to unit price appreciation.
  • Funds from operations was $28.17 million year to date, up 24% over the same period last year. Management believes funds from operations (FFO) is a more accurate reflection of our true operating performance.
  • We continue to invest in land holdings for future development and made the following acquisitions during Q3–2017:
    • — 14.55 acres of commercial raw land in Leduc, AB for a purchase price of $10.11 million,
    • — 10.00 acres in Red Deer, AB for a purchase price of $0.79 million,
  • On September 18, 2017 we sold a parking lot in downtown Edmonton for $3.05 million ($2.99 million net of transaction costs).
  • We paid a quarterly dividend of $0.13 per share on September 29,2017. The REIT paid distributions of $0.05625 per trust unit in July, August and September for a quarterly payout ratio of 84%.
  • On November 3, 2017 we declared a quarterly dividend of $0.13 per share, payable on December 29, 2017 to shareholders of record on December 15, 2017. The dividend is an eligible dividend for Canadian tax purposes.

Selected Highlights

     
($000s except as noted) Three months ended   Nine months ended 
  30–Sept–17 30–Sept–16   Change 30–Sept–17   30–Sept–16   Change
  Revenue 62,795 63,432   (1.0)% 148,317   136,070   9.0 %
  Gross margin (%) * 44.4% 45.9%   (1.5)% 46.2%   48.0%   (1.8)%
  Net income 11,517 16,260   (29.2)% 6,441   10,324   (37.6)%
  Net margin (%) * 18.3% 25.6%   (7.3)% 4.3%   7.6%   (3.3)%
  Funds from operations * 12,787 10,225   25.1 % 28,171   22,803   23.5 %
Per Share Data ($)                  
  Basic earnings 0.34 0.49   (30.6)% 0.19   0.31   (38.7)%
  Diluted earnings 0.34 0.49   (30.6)% 0.19   0.31   (38.7)%
  Funds from operations * 0.38 0.31   22.6 % 0.84   0.69   21.7 %
                   
As at ($000s except as noted)         30–Sept–17   31–Dec–16   Change
  Shareholders' equity         980,648   994,721   (1.4)%
  Total assets         1,918,805   1,891,988   1.4 %
Per Share Data ($)                  
  Book value *         29.39   29.83   (1.5)%
                     

MD&A and Financial Statements

Information included in this press release is a summary of results. This press release should be read in conjunction with Melcor's consolidated financial statements and management's discussion and analysis for the three and nine months ended September 30, 2017, which can be found on the company's website at www.Melcor.ca or on SEDAR (www.sedar.com).

About Melcor Developments Ltd.

Melcor is a diversified real estate development and asset management company that transforms real estate from raw land through to high– quality finished product in both residential and commercial built form. Melcor develops and manages mixed–use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses. Melcor owns a well diversified portfolio of assets in Alberta, Saskatchewan, British Columbia, Arizona and Colorado.

Melcor has been focused on real estate since 1923. The company has built over 100 communities across Western Canada and today manages 3.90 million sf in commercial real estate assets and 612 residential rental units. Melcor is committed to building communities that enrich quality of life – communities where people live, work, shop and play.

Melcor's headquarters are located in Edmonton, Alberta, with regional offices throughout Alberta and in Kelowna, British Columbia and Phoenix, Arizona. Melcor has been a public company since 1968 and trades on the Toronto Stock Exchange (TSX: MRD).

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 2017 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.

DELSEY introduces CHATELET under-seater

PARIS, FRANCE—(Marketwired – November 03, 2017) – DELSEY, the iconic luggage brand with over 70 years of innovation, timeless quality and audacious design, is adding to their signature CHATELET collection with the latest travel necessity, the under–seater.

Driven to create luggage that meets the latest traveler demands, DELSEY created under–seaters as an answer to the new economy fare regulations airlines are leaning towards. The trend to charge increasing fees for checked and even carry–on bags has travelers searching for new packing methods. Overhead bins fill quickly, and air travelers are often left with only the space under the seat in front of them. Under–seaters are designed to do just that – fit under the seat to maximize that precious space. And best of all this allows travelers without an aisle seat to access their belongings inflight, without disturbing other passengers.

Creating an under–seater for the sought after DELSEY CHATELET collection means travelers can now complete their travel set with this vintage–chic piece. The CHATELETcollection embodies everything French, everything chic and everything DELSEY. The under–seater is a soft–side piece with the attractive vegan–leather trim for a look that can go from the office to vacation and anywhere in–between. Available in chocolate or champagne, DELSEY CHATELET adds an elegant signature touch to any travel ensemble.

The DELSEY CHATELET under–seater has a roomy main compartment can fit a couple of outfits for a weekend get–away or a quick change upon arrival. The large front pocket features deluxe soft–touch Bordeaux fabric lining and is perfect to hold an iPad, travel documents, magazines and anything else that travelers may want to access in flight. Shoe pockets, zippered pouches and an elastic strap in the interior make organizing and packing easy. The smart band on the back of the case can either hold additional magazines or can be used to slip over the trolley handle of a larger suitcase depending on each traveler's needs. The bags are lightweight and easy to carry while the two–wheel trolley system with recessed wheels offers superior mobility and a convenient option for dashing through the airport!

The DELSEY CHATELET under–seater can be purchased at www.shop.delsey.com.

ABOUT DELSEY: An iconic brand, DELSEY is a French company and a creator of baggage since 1946. For more than 70 years DELSEY has offered consumers cases which bring together quality and audacious design. DELSEY creates ingenious baggage designed to accompany travellers wherever they go and to adapt to all types of journey, both professional and personal. Its strength grounded in its expertise, the brand is behind numerous innovations recognised by important prizes in the design world. DELSEY brings together style and functionality to create products that reflects the personality of each consumer. Today DELSEY is present on five continents and in more than 110 countries. A DELSEY bag is sold every 10 seconds.

Image Available: http://www.marketwire.com/library/MwGo/2017/11/3/11G147379/Images/Luggge–5da3b6950418af2fa6de2a1dd6f6470a.jpg

Avoiding Web Accessibility Issues

PROVIDENCE, RI—(Marketwired – November 03, 2017) – As a major landmark in the fight for universal website accessibility, 2018 will usher in new legal regulations to be upheld by any business or organization with an online presence. Since the Department of Justice (DOJ) proposed in 2010 that websites should be considered as “places of public accommodation” as defined under the Americans with Disabilities Act (ADA), many websites have worked to diligently accommodate disabled site visitors. The forthcoming 2018 guidelines will put a finer point on the parameters for accessibility compliance and should go a long way to improving the online experience for the millions of Americans who are disabled by making accessibility a matter of human rights. In preparation for these new regulations, all businesses with online storefronts and websites can ensure they currently comply with the Web Content Accessibility Guidelines (WCAG) 2.0, which have been a leading list of protocols on the best–accessible site structure, text, and multimedia displays since they were first introduced in 2008.

For more on these most common website accessibility issues and how to avoid them, please visit the Bureau of Internet Accessibility to access “The Most Common Web Accessibility Issues To Avoid” https://www.boia.org/blog/the–most–common–web–accessibility–issues–to–avoid

About the Bureau of Internet Accessibility:

Mobile and Web accessibility compliance is a requirement, but trying to understand the WCAG 2.0 Guidelines and how they relate to ADA, ACAA, OCR, AODA, Section 508 and other compliance requirements, can be confusing. The Bureau of Internet Accessibility (BoIA) has been helping eliminate the accessibility digital divide since 2001. The organization's reports, tools, and services have assisted businesses in improving, maintaining, and proving the accessibility of their websites. With services that include self–help tools, audits, training, remediation and implementation support, BoIA has the experience and expertise to ensure that accessibility efforts are worthwhile and successful. For more information, visit www.BoIA.org.

Streetwise Reports Examines One Analyst's Initiation on Solar Power Firm with 'Strong Backlog Powering Rapid Growth'

SAN FRANCISCO, CA—(Marketwired – November 03, 2017) – Analyst Pardeep Sangha with Haywood Securities explained the investment thesis for this provider of solar power projects to the commercial market.

Included in this article is: UGE International Ltd. (TSX VENTURE: UGE) (OTCQB: UGEIF)

In its Oct. 31 research note, Haywood Securities initiated coverage on UGE International Ltd., with analyst Pardeep Sangha. UGE is “undervalued” and currently trading “below its peer group average,” Sangha wrote.

Sangha, who titled the report, “Strong Backlog Powering Rapid Growth,” indicated UGE, “one of the leading solar solution providers to mid–scale commercial and industrial clients in Ontario and in the Northeast U.S.,” is “at a revenue inflection point and “turning the corner to profitability.” The $6.3 million that the company generated in Q2/17, the most recent quarter for which a figure is available, exceeded the amount it generated in all of 2016. Also during that quarter, UGE was EBITDA positive for the first time, an achievement that Sangha said he expects to continue into 2018.

Continue reading this article: Coverage Initiated on Solar Power Firm with 'Strong Backlog Powering Rapid Growth'

About Streetwise Reports – The Energy Report

The Energy Report shares investment ideas for the oil & gas, renewable and alternative energy industries. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

DISCLOSURE:

The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.

The full disclosure is provided at the end of the published article: Coverage Initiated on Solar Power Firm with 'Strong Backlog Powering Rapid Growth'

Align Technology to Speak at Upcoming Financial Conferences

SAN JOSE, CA—(Marketwired – November 03, 2017) – Align Technology, Inc. (NASDAQ: ALGN) today announced that the company is scheduled to speak at upcoming financial conferences. The presentation, as noted below, will be webcast live via the Investor Relations section of Align Technology's website at http://investor.aligntech.com. An archived replay will remain on the website for approximately three months.

Conference: Credit Suisse 26th Annual Healthcare Conference

Date: Tuesday, November 7, 2017

Presentation: 2:10 p.m. to 2:40 p.m. Mountain Standard Time

Speakers: John Morici, CFO

Shirley Stacy, VP Finance, Corporate and Investor Communications

Conference: 2017 Northcoast Research Fall Management Forum

Date: Thursday, November 9, 2017

Format: One–on–One Forum, No Company Presentation

Speakers: John Morici, CFO

Yin Cantor, Director, Corporate and Investor Communications

About Align Technology, Inc.

Align Technology designs and manufactures the Invisalign® system, the most advanced clear aligner system in the world, and iTero® intraoral scanners and services. Align's products help dental professionals achieve the clinical results they expect and deliver effective, cutting–edge dental options to their patients. Visit www.aligntech.com for more information.

For additional information about the Invisalign system or to find an Invisalign provider in your area, please visit www.invisalign.com. For additional information about iTero digital scanning system, please visit www.itero.com.