The Company will conduct a conference call for interested investors on
Tuesday, May 3, 2005, at 5:00 PM Eastern Standard Time. During the call the
Company will discuss the financial results and earnings guidance detailed in
this release. The dial-in number for the conference call is 866-761-0749 and
the access code is 13645429; the call may also be accessed on the Internet at
http://www.comstockhomebuilding.com in the Investor Relations section.
Highlights of Financial Results:
- The Company generated basic earnings per share of $0.33 on a weighted
average shares outstanding of 11.6 million and diluted earnings per
share of $0.32 on a weighted average shares outstanding of 11.8 million;
- Total revenue for the first quarter was $28.7 million with $28.5 million
of total revenue derived from homebuilding, as compared to total revenue
of $17.9 million for the three months ended March 31, 2004 with $15.1
million of total revenue derived from homebuilding;
- The Company delivered 78 new homes in the first quarter at an average
per unit revenue of $365,000 as compared to 46 new homes at an average
per unit revenue of $329,050 during the three months ended March 31,
2004;
- Gross profit was $11.1 million for the first quarter and operating
income was $6.1 million representing a 38.7% gross margin and a 21.1%
operating margin as compared to 30.3% and 17.4% respective gross and
operating margins for the three months ended March 31, 2004;
- The contract value of new orders (net of cancellations) for the first
quarter was $103.3 million on 246 new orders representing a
119.2% increase in the contract value of the new orders and an
86.4% increase in new orders as compared to the three months ended March
31, 2004;
- Backlog at March 31, 2005 was 615 units representing future revenue of
$248.2 million of which $105.3 million is expected to deliver before
December 31, 2005. Of the $248.2 million of backlog, $138.6 million was
related to the Company's Eclipse at Potomac Yard project where
settlements will begin in the second half of 2006.
Guidance for the Quarters and Full Year 2005:
During the Company's investor conference call, expectations for 2005
quarterly and full year results will be discussed in detail for the first time
by the Company.
- The Company expects that total revenue for the year ending December 31,
2005 will be between $265 million -- $275 million with estimated
earnings of $2.85 -- $2.94 per share (diluted) based on an estimated
weighted average shares outstanding of 11.9 million;
- The Company is increasing full year 2005 guidance and is, for the first
time, introducing detailed quarterly guidance as follows:
Diluted earnings per share estimates
Current Range
Q1 $0.32 $0.32
Q2 $0.22 to $0.25 estimated
Q3 $0.92 to $0.95 estimated
Q4 $1.39 to $1.42 estimated
2005 $2.85 to $2.94 estimated
Previous $2.15 to $2.20
- Based on current backlog and land inventory, the Company estimates that
it will generate total revenue in 2006 of between $400 million and $425
million.
- Like many of its peers, the Company has experienced delays in obtaining
permits on certain projects as a result of the adoption of a new
building code throughout the country, causing a shift of revenue from
the second quarter into the third and fourth quarters of 2005.
Management noted that no additional delays are anticipated as a result
of these building code changes.
"Comstock is executing the growth plan we detailed in our IPO road show
last December," said Christopher Clemente, Chairman and Chief Executive
Officer. "This growth is in keeping with the strategic 5 year plan we
commenced in 2003 that projects annual revenues reaching $500 million. During
the first quarter we continued working to secure some of the best
opportunities in our markets (Washington, DC and Raleigh, NC) and we put a
significant amount of our new capital to work by closing on over $100 million
of new developments throughout the Northern Virginia suburbs. As demonstrated
by our growing backlog, demand for our homes remains strong. We see this
demand continuing throughout the year. Our most recent project opening,
Penderbrook, in Fairfax, Virginia, experienced overwhelming demand in April.
Comstock continues to benefit from the tremendous job growth in its core
market, the Greater Washington, DC area."
About Comstock Homebuilding Companies, Inc.
Comstock is a production homebuilder that develops, builds, and markets
single-family homes, townhouses, and 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. Three months ended March 31,
(Amounts in thousands, excpet share
data) 2004 2005
(unaudited)
Revenues
Sale of real estate-Homes $15,136 $28,465
Other revenue 2,745 264
Total revenue 17,881 28,729
Expenses
Cost of sales of real estate 10,313 17,591
Cost of sales of other 2,148 11
Selling, general and administrative 2,310 5,052
Operating income 3,110 6,075
Other (income) expense, net 184 (36)
Income before minority interest and
equity in earnings of real estate
partnerships 2,926 6,111
Minority interest 848 1
Income before equity in earnings of
real estate partnerships 2,078 6,110
Equity in earnings of real estate
partnerships 28 30
Total pre tax income 2,106 6,140
Income Taxes 2,331
Net Income $2,106 $3,809
Basic earnings per share 592 0.33
Basic weighted average shares
outstanding 3,558 11,620,667
Dilutive earnings per share 592 0.32
Dilutive weighted average shares
outstanding 3,558 11,768,817
Proforma basic EPS as adjusted for
tax and the Company's initial public
offering 0.11 n/a
Proforma dilutive EPS as adjusted for
tax and the Company's initial public
offering 0.11 n/a
Select Balance Sheet Data March 31, March 31,
(Amounts in thousands) 2004 2005
(unaudited)
Cash and cash equivalents $18,699 $47,957
Real estate held for development &
sale 73,586 211,303
Inventory not owned - variable
interest entities - 33,547
Total assets 97,906 299,281
Notes payable-homebuilding 63,005 152,016
Shareholders' equity 7,831 66,570
SOURCE Comstock Homebuilding Companies, Inc.
CONTACT: Al Black, +1-703-744-7833, or ablack@qorvis.com, for Comstock
Homebuilding Companies, Inc