Three Months Ended September 30, 2008
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Washington North
(dollars in 000s) Metro Carolina Georgia Total
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Gross new orders 19 19 4 42
Cancellations 5 4 3 12
Net new orders 14 15 1 30
Gross new order
revenue $ 6,129 $ 2,767 $ 1,060 $ 9,956
Cancellation
revenue $ 1,561 $ 794 $ 1,163 $ 3,518
Net new order
revenue $ 4,568 $ 1,973 $ (103) $ 6,438
Backlog units 5 16 4 25
Backlog revenue $ 1,273 $ 4,449 $ 1,315 $ 7,037
Avg. backlog price $ 255 $ 278 $ 329 $ 281
Nine Months Ended September 30, 2008
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Washington North
(dollars in 000s) Metro Carolina Georgia Total
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Gross new orders 61 49 17 127
Cancellations 17 15 10 42
Net new orders 44 34 7 85
Gross new order
revenue $20,194 $10,483 $ 5,260 $35,937
Cancellation
revenue $ 4,701 $ 4,419 $ 3,093 $12,213
Net new order
revenue $15,493 $ 6,064 $ 2,167 $23,724
Backlog units 5 16 4 25
Backlog revenue $ 1,273 $ 4,449 $ 1,315 $ 7,037
Avg. backlog price $ 255 $ 278 $ 329 $ 281
* Total cash on hand at September 30, 2008 was $10.1 million,
with $6.3 million of unrestricted cash.
* Gross profit on all revenue was $2.1 million, representing a
gross margin of 16.1%, compared to $6.6 million, or 12.7%, for
the three months ended September 30, 2007.
* Gross profit from homebuilding was $1.3 million, representing
a gross margin of 10.6%, compared to gross profit from
homebuilding of $6.0 million, or 12.6%, for the three months
ended September 30, 2007.
* SG&A was $4.6 million, a $3.3 million, or 41.9% decrease as
compared to SG&A of $7.9 million for the three months ended
September 30, 2007.
* Operating loss was ($4.7) million, or (35.7%), compared to
($70.3) million, or (135.2%), for the three months ended
September 30, 2007.
* The Company reported a $1.2 million gain on troubled debt
restructuring related to foreclosures by BB&T. The gains resulted
from the reversal of prior period impairments and relief from
accrued interest and project costs.
* The Company reported other income of $1.3 million including a
$0.9 million gain related to the settlement of claims with the
principal shareholders of Parker-Chandler Homes and a $0.4 million
gain relating to defaulted unit purchases at the Company's Eclipse
project.
* Gross profit on all revenue was $6.3 million, representing a
gross margin of 15.1%, compared to $20.6 million, or 9.7%,
for the nine months ended September 30, 2007.
* Gross profit from homebuilding was $4.5 million, representing
a gross margin of 11.3%, compared to gross profit from
homebuilding of $19.6 million, or 9.8%, for the nine months
ended September 30, 2007.
* SG&A was $12.7 million, an $11.5 million, or 47.5%, decrease
compared to SG&A of $24.2 million for the nine months ended
September 30, 2007.
* Operating loss was ($24.7) million, or (59.5%), compared to
($81.1) million, or (38.1%), for the nine months ended
September 30, 2007.
* Impairments and write-offs were $14.6 million, compared to
$77.4 million for the nine months ended September 30, 2007.
Comstock Homebuilding Companies, Inc.
Income Statement
(dollars in 000s) Three Months Ended, Nine Months Ended,
September 30, September 30,
--------------------------------------------
2008 2007 2008 2007
--------------------------------------------
Revenues
Revenue -
homebuilding $ 12,270 $ 47,769 $ 39,645 $201,106
Revenue - other 803 4,217 1,807 11,902
--------------------------------------------
Total revenue 13,073 51,986 41,452 213,008
Expenses
Cost of sales -
homebuilding 10,968 41,748 35,168 181,491
Cost of sales - other 1 3,643 28 10,947
Impairments and
write-offs 2 69,017 14,580 77,400
Selling, general and
administrative 4,566 7,860 12,725 24,235
Interest, real
estate taxes and
indirect costs
related to
inactive projects 2,199 -- 3,615 --
--------------------------------------------
Operating loss (4,663) (70,282) (24,664) (81,065)
Gain on troubled debt
restructuring (1,194) -- (9,519) --
Other income, net (1,268) (715) (2,865) (1,361)
--------------------------------------------
Loss before minority
interest (2,201) (69,567) (12,279) (79,704)
Minority interest (4) (2) (7) (7)
--------------------------------------------
Total pre tax loss (2,197) (69,565) (12,272) (79,697)
Income taxes expense
(benefit) 5 (27,097) 5 (30,893)
--------------------------------------------
Net loss $ (2,202) $(42,468) $(12,277) $(48,804)
============================================
Basic loss per share $ (0.13) $ (2.63) $ (0.70) $ (3.04)
Basic weighted average
shares outstanding 17,475 16,151 17,431 16,046
============================================
Diluted loss per share $ (0.13) $ (2.63) $ (0.70) $ (3.04)
Diluted weighted
average shares
outstanding 17,475 16,151 17,431 16,046
============================================
Comstock Homebuilding Companies, Inc.
Balance Sheet
(dollars in 000s) September December
30, 2008 31, 2007
ASSETS
Cash and cash equivalent $ 6,304 $ 6,822
Restricted cash 3,836 4,985
Receivables 210 370
Due from related parties 92 92
Real estate held for development and sale 147,019 203,860
Inventory not owned - variable interest
entities 19,250 19,250
Property, plant and equipment, net 1,000 1,539
Other assets 2,692 22,058
--------------------
TOTAL ASSETS $180,403 $258,976
====================
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 8,544 $ 21,962
Obligations related to inventory not owned 19,050 19,050
Notes payable 104,392 141,214
Senior unsecured debt 12,962 30,000
--------------------
TOTAL LIABILITIES 144,948 212,226
--------------------
Commitments and contingencies
Minority interest 224 231
--------------------
SHAREHOLDERS' EQUITY
Class A common stock, $0.01 par value,
77,266,500 shares authorized, 15,211,455
and 15,120,955 issued and outstanding,
respectively 152 151
Class B common stock, $0.01 par value,
2,733,500 shares authorized, 2,733,500
issued and outstanding 27 27
Additional paid-in capital 156,987 155,998
Treasury stock, at cost (391,400 Class A
common stock) (2,439) (2,439)
Accumulated deficit (119,496) (107,219)
--------------------
TOTAL SHAREHOLDERS' EQUITY 35,231 46,519
--------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $180,403 $258,976
====================