Comstock Homebuilding Companies, Inc. Reports $0.26 Earnings Per Share for Second Quarter of 2005
"This was an exciting quarter for us at Comstock," said Christopher
Clemente, Chairman and CEO. "We were successful in raising an additional $56
million of capital to accelerate our growth, we added demographically diverse
land positions to our inventory, we delivered on the commitments we made to
our investors, and we realized a 28 percent increase of revenue for the same
quarter last year. Demand for affordable new homes in our core market, the
Greater Washington, DC region, is still strong and our land inventory remains
well aligned with the homeownership trends in the market."
Highlights of Financial Results -- Three months ended June 30, 2005:
* The Company generated basic earnings per share for the second quarter
of $0.26 on a weighted average shares outstanding of 11.8 million and
diluted earnings per share of $0.26 on a weighted average shares
outstanding of 12.0 million;
* Total revenue for the second quarter was $39.9 million with $39.6
million of revenue derived from homebuilding, compared to total
revenue of $31.1 million for the three months ended June 30, 2004 with
$29.1 million of revenue derived from homebuilding. This represents a
36% increase in revenue from homebuilding;
* The Company delivered 123 new homes in the second quarter at an
average per unit revenue of approximately $322,000 as compared to 88
new homes at an average per unit revenue of $331,000 during the three
months ended June 30, 2004. This reduction in average per unit
revenue was a direct result of the Company's mix of delivered units
with 74 of the second quarter 2005 settlements coming from the
Company's new Penderbrook project where average revenue per settlement
was $249,000;
* Gross profit was $10.2 million for the second quarter and operating
income was $4.6 million representing a 25.7% gross margin and an 11.6%
operating margin compared to 29.4% and 15.0% respective gross and
operating margins for the three months ended June 30, 2004. Exclusive
of Penderbrook, the Company's gross profit on the balance of revenue
for the second quarter was $7.3 million representing a gross margin of
34.6%;
* The contract value of new orders (net of cancellations) for the second
quarter was $59.2 million on 160 new orders representing a 127.0%
increase in the contract value of new orders and an 125.4% increase in
new orders as compared to the three months ended June 30, 2004.
Highlights of Financial Results -- Six months ended June 30, 2005:
* The Company generated basic earnings per share for the six months
ended June 30, 2005 of $0.59 on a weighted average shares outstanding
of 11.7 million and diluted earnings per share of $0.58 on a weighted
average shares outstanding of 11.9 million;
* Total revenue for the six months ended June 30, 2005 was $68.6 million
with $68.1 million of revenue derived from homebuilding, compared to
total revenue of $49.0 million for the six months ended June 30, 2004
with $44.3 million of revenue derived from homebuilding;
* The Company delivered 201 new homes in the six months ended June 30,
2005 at an average per unit revenue of approximately $339,000 as
compared to 134 new homes at an average per unit revenue of $330,000
during the six months ended June 30, 3004;
* Gross profit was $21.4 million for the six months ended June 30, 2005
and operating income was $10.7 million representing a 31.1% gross
margin and a 15.6% operating margin compared to 29.7% and 15.6%
respective gross and operating margins for the six months ended June
30, 2004. Exclusive of Penderbrook, the Company's gross profit on the
balance of it revenue for the six months ended June 30, 2005 was $18.2
million representing a gross margin of 36.7%;
* The contract value of new orders (net of cancellations) for the six
months ended June 30, 2005 was $165.0 million on 416 new orders
representing a 125.6% increase in the contract value of new orders and
a 104.9% increase in new orders as compared to the six months ended
June 30, 2004;
* Backlog revenue at June 30, 2005 was $268.6 million of which $146.2
million was related to the Company's Eclipse at Potomac Yard project
where settlements will begin in the second half of 2006.
Guidance for Full Year 2005: During the Company's investor conference call, expectations for 2005
results will be discussed in detail by the Company.
* The Company raised its 2005 earnings guidance slightly stating that it
expects to deliver approximately 715 homes and generate full year
earnings, adjusted for the dilution of its follow-on offering, in the
range of $2.68 to $2.73 per share (diluted) based on an estimated
weighted average shares outstanding of approximately 13.0 million --
previous guidance had been a range of $2.62 to $2.71, also diluted for
the follow-on offering.
About Comstock Homebuilding Companies, Inc. Comstock is a production homebuilder and real estate developer that
develops, builds, and markets single-family homes, townhouses, mid-rise
condominiums and high-rise condominiums. The Company currently operates in
the Washington, D.C. and Raleigh, North Carolina markets where it targets a
diverse range of buyers, including first-time, early move-up, secondary move-
up, empty nester move-down and active adult home buyers. For more information
on Comstock, please visit http://www.comstockhomebuilding.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains "forward-looking" statements that are made pursuant
to the Safe Harbor provisions of the Private Securities Litigation Reform Act
of 1995. Statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as "may," "will,"
"expects," "projects," "anticipates," "estimates," "believes," "intends,"
"plans," "should," "seeks," and similar expressions, including statements
related to Comstock's expected future financial results and anticipated growth
in the Washington, D.C. housing market, are forward-looking statements.
Forward-looking statements involve known and unknown risks and uncertainties
that may cause actual future results to differ materially from those projected
or contemplated in the forward-looking statements. These risks and
uncertainties include, but are not limited to, economic, market and
competitive conditions affecting Comstock and its operations and products,
risks and uncertainties relating to the market for real estate generally and
in the areas where Comstock has projects, the availability and price of land
suitable for development, materials prices, labor costs, interest rates,
Comstock's ability to service its significant debt obligations, fluctuations
in operating results, anticipated growth strategies, continuing relationships
with affiliates, environmental factors, government regulations, the impact of
adverse weather conditions or natural disasters and acts of war or terrorism.
Additional information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the prospectus
from Comstock's initial public offering, as filed with the Securities and
Exchange Commission on December 15, 2004. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
Financial Results
Comstock Homebuilding Companies, Inc.
(Amounts in thousands, except share data)
Three Months Ended Six Months Ended
June 30, June 30,
2005 2004 2005 2004
Predecessor Predecessor
Revenues
Sale of real estate
-- Homes $ 39,599 $ 29,118 $ 68,064 $ 44,254
Other revenue 312 1,983 576 4,728
Total revenue 39,911 31,101 68,640 48,982
Expenses
Cost of sales of
real estate 29,658 20,455 47,249 30,768
Cost of sales of
other 9 1,498 20 3,646
Selling, general and
administrative 5,608 4,479 10,660 6,910
Operating income 4,636 4,669 10,711 7,658
Other (income) expense,
net (154) (3) (190) 60
Income before minority
interest and equity in
earnings of real estate
partnerships 4,790 4,672 10,901 7,598
Minority interest 7 1,700 8 2,548
Income before equity
in earnings of real
estate partnerships 4,783 2,972 10,893 5,050
Equity in earnings of
real estate partnerships 4 30 34 58
Total pre tax income 4,787 3,002 10,927 5,108
Income Taxes 1721 - 4,052 -
Net Income $ 3,066 $ 3,002 $ 6,875 $ 5,108
Basic earnings per
share 0.26 0.42 0.59 0.72
Basic weighted average
shares outstanding 11,831 7,067 11,727 7,067
Diluted earnings per
share 0.26 0.42 0.58 0.72
Diluted weighted
average shares
outstanding 11,993 7,067 11,882 7,067
Pro forma as adjusted
for tax and share count
Net Income 1,923 3,214
Basic earnings per share 0.16 0.27
Diluted earnings per share 0.16 0.27
SOURCE Comstock Homebuilding Companies, Inc.
CONTACT: Carrie Blewitt, +1-202-448-3129, cblewitt@qorvis.com
for Comstock Homebuilding Companies, Inc.