RESTON, VA, May 10, 2006 (MARKET WIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock or
the "Company") today announced first quarter earnings for the three
months ended March 31, 2006 of $0.09 per share (basic and diluted) on
total revenue of $36.6 million. These earnings were within the
Company's previously issued guidance range of $0.02 to $0.22 for the
quarter.
The Company will conduct a conference call for interested investors
on Thursday, May 11, 2006, at 8:45 AM Eastern Standard Time. During
the call the Company will discuss the financial results detailed in
this release. The dial-in number for the conference call is
866-406-5408 and the access code is 7326932; the call may also be
accessed on the Internet at www.comstockhomebuilding.com in the
Investor Relations section.
Highlights of Financial Results -- Three months ended March 31, 2006:
-- The Company generated basic earnings per share for the quarter of
$0.09 on shares outstanding of 14.0 million and diluted earnings per share
of $0.09 on shares outstanding of 14.1 million.
-- Total revenue for the quarter was $36.6 million with $36.4 million of
revenue derived from homebuilding, as compared to total revenue of $28.7
million for the three months ended March 31, 2005 with $28.5 million of
revenue derived from homebuilding.
-- The Company delivered 112 new homes in the quarter at an average per
unit revenue of approximately $325,000 as compared to 78 new homes at an
average per unit revenue of $365,000 during the three months ended March
31, 2005.
-- Gross profit from all revenue was $9.4 million for the quarter
representing a 25.8% gross margin as compared to $11.1 million representing
a gross margin of 38.7% for the three months ended March 31, 2005.
-- On January 19, 2006 the company closed on the acquisition of Parker
Chandler Homes, Inc. in Atlanta, Georgia. The acquisition, which was
approximately $63 million, added close to 1,600 lots to the Company's
inventory of controlled land.
"We are pleased to be reporting these results which are within the
range of our estimates for the period," said Christopher Clemente,
Chairman and CEO. "We believe we are well positioned to continue to
deliver growth in revenue and earnings in 2006."
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies is a diversified
real estate development firm with a focus on moderately priced
for-sale residential products. Comstock builds and markets
single-family homes, townhouses, mid-rise condominiums, high-rise
condominiums, mixed-use urban communities and active adult
communities. The company currently markets its products under the
Comstock Homes brand in the Washington, D.C. and Raleigh, North
Carolina markets, under the Capitol Homes brand in Raleigh, North
Carolina and under the Parker Chandler Homes brand in Atlanta,
Georgia and parts of the Carolinas. Comstock develops mixed-use,
urban communities and active-adult communities under the Comstock
Communities brand. Comstock Homebuilding Companies Inc. trades on
Nasdaq under the symbol CHCI. For more information 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.
Comstock Homebuilding Companies Inc
Income Statements
Three Months Ended
March 31,
----------------------
2006 2005
---------- ----------
Revenues
Sale of real estate -- Homes $ 36,365 $ 28,465
Other revenue 230 264
---------- ----------
Total revenue 36,595 28,729
Expenses
Cost of sales of real estate 27,161 17,591
Cost of sales of other 10 11
---------- ----------
Gross Profit 9,424 11,127
Selling, general and administrative 7,646 5,052
---------- ----------
Operating income 1,778 6,075
Other (income) expense, net (233) (36)
---------- ----------
Income before minority interest and equity in
earnings of real estate partnerships 2,011 6,111
Minority interest (7) 1
---------- ----------
Income before equity in earnings of real estate
partnerships 2,018 6,110
Equity in earnings of real estate partnerships (27) 30
---------- ----------
Total pre tax income 1,991 6,140
Income Taxes 751 2,331
---------- ----------
Net Income $ 1,240 $ 3,809
========== ==========
Basic earnings per share 0.09 0.33
========== ==========
Basic weighted average shares outstanding 13,981 11,621
========== ==========
Diluted earnings per share 0.09 0.32
========== ==========
Diluted weighted average shares outstanding 14,071 11,769
========== ==========
Media Contact:
Bryan Murray
Contact via http://www.marketwire.com/mw/emailprcntct?id=4460E55399A1F295
703.883.1700 ext. 217
SOURCE: Comstock Homebuilding Companies, Inc.