RESTON, VA, Aug 17, 2009 (MARKETWIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company") today released its unaudited results for the three and six months ended June 30, 2009. In connection therewith, the Company filed a Form 10-Q with the Securities and Exchange Commission. The Company's 2009 second quarter results are highlighted as follows:
For the three months ended June 30, 2009, the Company reported a net loss of $27.7 million or ($1.58) per share basic and diluted on total revenue of $3.0 million compared to a net loss of $16.6 million or ($1.00) per share basic and diluted on total revenue of $12.0 million for the three months ended June 30, 2008. In connection with these results, the Company announced that it had elected to record a non-cash impairment and write-off charge of $22.9 million for the three months
ended June 30, 2009, compared to a $13.7 million non-cash impairment
and write-off charge for the three months ended June 30, 2008.
For the six months ended June 30, 2009, the Company reported a net loss of $30.4 million or ($1.73) per share basic and diluted on total revenue of $8.5 million, compared to a net loss of $10.1 million or ($0.61) per share basic and diluted on total revenue of $28.4 million for the six months ended June 30, 2008. In connection with these results, the Company recorded a non-cash impairment and write-off charge of $22.9 million for the six months ended June 30, 2009 as compared to a $14.6 million charge for the six months ended June 30, 2008.
The Company reported the following orders, cancellations and backlog for the three and six months ended June 30, 2009:
Three months ended June 30, 2009
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Washington North
Metro Area Carolina Georgia Total
---------- --------- ------- --------
Gross new orders 22 - - 22
Cancellations 5 3 1 9
Net new orders 17 (3) (1) 13
Gross new order revenue $ 5,396 $ - $ - $ 5,396
Cancellation revenue $ 1,669 $ 570 $ 386 $ 2,625
Net new order revenue $ 3,727 $ (570) $ (386) $ 2,771
Average gross new order price $ 245 $ - $ - $ 245
Settlements 6 2 - 8
Settlement revenue - homebuilding $ 1,777 $ 359 $ - $ 2,136
Average settlement price $ 296 $ 180 $ - $ 267
Backlog units 18 7 - 25
Backlog revenue $ 4,138 $ 2,053 $ - $ 6,191
Average backlog price $ 230 $ 293 $ - $ 248
Six months ended June 30, 2009
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Washington North
Metro Area Carolina Georgia Total
---------- ---------- ------- --------
Gross new orders 34 13 - 47
Cancellations 5 6 1 12
Net new orders 29 7 (1) 35
Gross new order revenue $ 11,009 $ 2,319 $ - $ 13,328
Cancellation revenue $ 1,669 $ 1,093 $ 386 $ 3,148
Net new order revenue $ 9,340 $ 1,226 $ (386) $ 10,180
Average gross new order price $ 324 $ 178 $ - $ 284
Settlements 14 6 - 20
Settlement revenue - homebuilding $ 5,936 $ 926 $ - $ 6,862
Average settlement price $ 424 $ 154 $ - $ 343
Backlog units 18 7 - 25
Backlog revenue $ 4,138 $ 2,053 $ - $ 6,191
Average backlog price $ 230 $ 293 $ - $ 248
Additional results for the three months ended June 30, 2009 include:
-- At June 30, 2009, the Company's reported shareholder equity was $0.4
million or $0.02 per share based on 17.6 million shares issued and
outstanding.
-- Cash on hand at June 30, 2009 was $1.0 million.
-- Gross profit on all revenue was $0.5 million, representing a gross
margin of 16.5% on all revenue, compared to $1.5 million or 12.1% for the
three months ended June 30, 2008.
-- Gross profit from homebuilding revenue was $0.2 million representing a
gross margin of 9.4%, compared to gross profit from homebuilding of $1.2
million or 10.3% for the three months ended June 30, 2008.
-- SG&A decreased by $1.9 million or 46.4% to $2.2 million, compared to
$4.1 million for the three months ended June 30, 2008.
-- Operating loss was $26.2 million, as compared to an operating loss of
$17.0 million for the three months ended June 30, 2008.
Additional results of the six months ended June 30, 2009 include:
-- Gross profit on all revenue was $1.5 million, representing a gross
margin of 17.2% on all revenue, compared to $3.5 million or 12.2% for the
six months ended June 30, 2008.
-- Gross profit from homebuilding was $0.8 million representing a gross
margin of 11.4%, compared to gross profit from homebuilding of $3.2 million
or 11.6% for the six months ended June 30, 2008.
-- SG&A decreased by $3.1 million or 41.7% to $4.4 million, compared to
$7.5 million for the six months ended June 30, 2008.
-- Operating loss was $29.2 million as compared to an operating loss of
$20.0 million for the six months ended June 30, 2008.
The Company reported that management and the Company's board of directors are continuing to work on strategic plans aimed at generating unrestricted cash flow to help secure its ability to continue operating as a going concern.
"We continue to take the steps necessary to position Comstock for a return to profitability as market conditions improve," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "We remain focused on reaching an amicable reorganization of our secured debts and we are making progress in that regard. That said the near future is a critical time for Comstock as we seek to bring to conclusion the negotiations with all of our lenders and secure our ability to continue as a going concern."
Three Months Ended Six Months Ended
--------- --------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Revenues
Revenue - homebuilding $ 2,136 $ 11,435 $ 6,862 $ 27,375
Revenue - other 829 568 1,626 1,004
--------- --------- --------- ---------
Total revenue 2,965 12,003 8,488 28,379
Expenses
Cost of sales - homebuilding 1,935 10,260 6,080 24,200
Cost of sales - other 541 293 950 713
Impairments and write-offs 22,938 13,746 22,938 14,577
Selling, general and
administrative 2,188 4,079 4,354 7,473
Interest, real estate taxes
and indirect costs
related to inactive projects 1,554 657 3,354 1,416
--------- --------- --------- ---------
Operating loss (26,191) (17,032) (29,188) (20,001)
Gain on troubled debt
restructuring - - - (8,325)
Other (income) loss, net 1,552 (413) 1,199 (1,598)
--------- --------- --------- ---------
Total pre tax loss (27,743) (16,619) (30,387) (10,078)
Income taxes expense - - 1 -
--------- --------- --------- ---------
Net (loss) income (27,743) (16,619) (30,388) (10,078)
Net (loss) income attributable
to noncontrolling interest - (1) - (3)
--------- --------- --------- ---------
Net (loss) income attributable
to Comstock Homebuilding
Companies, Inc $ (27,743) $ (16,618) $ (30,388) $ (10,075)
Basic loss per share $ (1.58) $ (1.00) $ (1.73) $ (0.61)
Basic weighted average shares
outstanding 17,554 16,541 17,554 16,502
========= ========= ========= =========
Diluted loss per share $ (1.58) $ (1.00) $ (1.73) $ (0.61)
Diluted weighted average shares
outstanding 17,554 16,541 17,554 16,502
========= ========= ========= =========
June 30, December 31,
2009 2008
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ASSETS
Cash and cash equivalents $ 1,043 $ 5,977
Restricted cash 3,878 3,859
Real estate held for development and sale 98,409 129,542
Inventory not owned - variable interest
entities - 19,250
Property, plant and equipment, net 457 830
Other assets 1,542 1,402
------------- -------------
TOTAL ASSETS $ 105,329 $ 160,860
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LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 9,501 $ 8,232
Obligations related to inventory not owned - 19,050
Notes payable - secured by real estate 77,151 90,086
Notes payable - unsecured 18,252 12,743
------------- -------------
TOTAL LIABILITIES 104,904 130,111
------------- -------------
Commitments and contingencies (Note 9)
SHAREHOLDERS' EQUITY
Class A common stock, $0.01 par value,
77,266,500 shares authorized, 15,608,438
and 15,608,438 issued and outstanding,
respectively 156 156
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 157,121 157,058
Treasury stock, at cost (391,400 Class A
common stock) (2,439) (2,439)
Accumulated deficit (154,663) (124,277)
------------- -------------
TOTAL COMSTOCK HOMEBUILDING COMPANIES,
INC SHAREHOLDERS' EQUITY 202 30,525
Noncontrolling interest 223 223
------------- -------------
TOTAL EQUITY 425 30,749
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 105,329 $ 160,860
============= =============
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly traded, diversified real estate development firm with a focus on affordably 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.; Raleigh, North Carolina and Atlanta, Georgia metropolitan areas. Comstock Homebuilding Companies, Inc. trades on NASDAQ under the symbol CHCI. For more information on the Company or its projects, please visit 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. 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. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent form 10-K, as filed with the Securities and Exchange Commission on March 24, 2008. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
CONTACT:
Comstock Homebuilding Companies, Inc.
Jeff Dauer
703.883.1700
SOURCE: Comstock Homebuilding Companies, Inc.
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