Greenscape Capital Group Inc.("Greenscape") TSX-V: GRN is pleased to provide a corporate update.
Greenscape is pleased to announce that revenues, net operating income and profitability are all ramping up significantly at the Canopy Parking Facility servicing the Denver International Airport. The accumulated earnings at Canopy (the 81.2% owned subsidiary of Greenscape) have allowed the company to make its first distribution to parent company Greenscape Capital which totaled USD $1,040,645. This million dollar injection into Greenscape paid down over $500,000 in principal debt and allowed the company to proceed with its replacement financing strategy as described in the Greenscape News Release dated May 13, 2013.
Canopy's first full operational year was 2011 where annual car counts saw 515,114 vehicles parked. The start-up year brought in US$4,042,000 of revenue and EBITDA was a loss of US$883,239. As operations ramped up through a strong 2012, Canopy reported 673,234 vehicles parked to drive US$6,578,000 in revenue and EBITDA of US$1,510,000.
The financial performance of Canopy continues to improve and FY Q1 Canopy parked car counts were up 26% year-over-year.
During the past several months, Greenscape has built an impressive management team to lead the company through its transition into a premier parking industry company with a focus on revenue producing parking facilities in the United States and Canada.
Rick Baxter was appointed as Chief Executive Officer in November of 2012. Mr. Baxter currently serves on the Canadian Advisory Board for Marsh and McLennan Companies, parent company of Marsh, Guy Carpenter, Mercer and Oliver Wyman. He was a member of Tourism Vancouver's Board for 12 years and the Chairman of the board during the 2010 Olympic Winter Games. He also previously served as a Director of EcoTrust Canada and Climate Smart. Born and raised in Vancouver, Mr. Baxter has been recognized as one of Canada's Top 40 under 40, a national program designed to promote mentorship and professional development. He holds an Economics degree from the University of B.C., and has completed the Executive Leadership Course at the Stanford Graduate School of Business.
Under Mr. Baxter's leadership, an impressive Board was built which included the appointments of Mr. Patrick Bonney, a professional corporate financial and strategic advisor with corporate finance and merger and acquisition experience at firms such as Deutsche Bank, WestLB Securities, Royal Bank and Yasuda Trust and Mr. Robert Emri, a real estate investment industry professional who was formerly a partner at Professors Capital, a San Diego based real estate firm and is presently the President of Emri Capital and Mr. John LaGourgue who has a broad range of business experience including Fortune 500 experience with EMC Corporation.
The Year Ahead : Commitment to Focus on Growth through Acquisition of Additional Parking Facilities
With Canopy Airport Parking now achieving significant annual earnings and with the commencement of distributions now having occurred, Greenscape is looking to solidify its balance sheet by refinancing high interest debt that was incurred during the construction and launch of the facility. After completion of the refinancing process, which is expected in early July, Greenscape will embark on an aggressive growth strategy in the North American parking sector.
Management has been busy building relationships with key finance and parking industry leaders that will provide a basis for meaningful expansion of the Company's assets in the United States. The Canopy Parking facility serves as the core corporate asset and carries an upon completion value of US$37.1 million, based on a Cushman Wakefield appraisal. Management is excited to build significant shareholder value through the renewed focus of the company's mandate and ample opportunities in the parking sector.
Concurrent with the company's exclusive focus on parking assets, Greeenscape will be seeking approval for a name change that reflects the commitment to building a premier North American parking company.
In addition to being named official demonstrator site for the US Green Parking Council, Canopy was named the 2012 Innovative Sustainability Project of the Year award by the National Parking Association. This award recognizes Canopy's innovation, excellence in operations and best practices.
Parking Industry Overview
The parking industry is an industry with $25-$30 billion in annual revenues. It is estimated that there are more than 136,000,000 passenger cars in the United States alone and that 96% of the time, these vehicles are parked. The industry generates revenue from parking at locations such as airports, commercial destinations, corporate buildings, public spots, stadiums, hospitals and academic facilities.
Canopy Asset Overview
Greenscape's Canopy Airport Parking facility is a 4,200 stall facility that services the Denver International Airport (DIA) in Denver, Colorado. DIA is the 5th busiest airport in the United States and the 10th busiest in the world. By size, it is the largest airport in the United States and the 3rd largest in the world. Canopy is a state of the art sustainable parking facility, is certified by the US Green Parking Council as an official demonstrator site and has been labeled as the world's greenest parking facility. It was estimated by Architectural Energy Corporation (AEC) that the total cost savings annually at the Canopy facility is 70% when compared with engineering baselines. The lot is LEED Gold certified and integrates wind and solar power generation, geothermal heating and cooling, LED lighting, recycled steel and asphalt and sophisticated run off containment systems into its design.
To view a brief video describing Greenscape's Canopy Airport Parking facility please visit https://www.youtube.com/watch?feature=player_embedded&v=C6ry0KkN3-U
Comments from management
Rick Baxter, Chief Executive Officer, states, "Canopy's operational performance continues to improve. Now, through regular distributions, Greenscape recognizes financial benefits from this performance. The Company will proceed with its previously described plan to obtain favourable replacement financing on existing debt and this will serve as a platform for acquiring new projects that are accretive to earnings."
Greenscape Capital Group is headquartered in Vancouver, British Columbia. The company's core asset is the Canopy Airport Parking Facility, a 4,200 space state-of-the-art parking structure servicing the Denver International Airport. Canopy is known as North America's Greenest Parking Facility, is certified as a Demonstrator Site for the Green Parking Council and operates up to 75% more energy efficiently than competing parking facilities, thereby increasing the company's bottom line. Greenscape seeks to maximize shareholder value by exploring new opportunities in the parking industry. For more information visit www.greenscapecapital.com.