-
First quarter homebuilding revenue of $11.4 million compared to
$3.2 million last year
-
Net income from continuing operations of $1.1 million compared to
net loss of $(1.4) million last year
-
Raising revenue outlook and reaffirming forecast for profitable 2013
RESTON, Va.--(BUSINESS WIRE)--
Comstock Holding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the
"Company"), a homebuilding and multi-faceted real estate development and
services company in the Washington, D.C. metropolitan area, today
announced results for the first quarter of 2013, ended March 31.
Business Update
"As expected, first-quarter homebuilding revenue approximated the
homebuilding revenue we generated for all of 2012," commented Chairman
and CEO Christopher Clemente. "With our backlog of sold homes increasing
and new communities coming on line during the upcoming months, we
believe we are well positioned to produce enhanced results each quarter
this year as compared to 2012.
"During the housing downturn, we implemented many initiatives in
preparation for the market's recovery," continued Clemente. "Those
initiatives included developing a strong land acquisitions team,
building new relationships with land developers and project lenders, and
where needed, committing management's personal resources and guarantees
on construction loans to facilitate Comstock's access to favorable
project financing. As a result Comstock is positioned to take full
advantage of the rebounding market.
"The spring season is off to a strong start and ongoing sales at our
communities continue to be robust. With first-quarter homebuilding
revenue of $11.4 million combined with our second quarter settlements to
date and backlog of $26.1 million (on 56 units), we believe we are
within easy reach of the $55 million to $64 million revenue target for
2013 that we provided in March. Because our project performance
continues to outpace our early expectations, we are increasing our
revenue forecast for the year to a range of $64 million to $69 million
based on an upward revision of our projected home settlements to
125-140. At this higher revenue level, we are even more confident that
we will restore Comstock to profitability in 2013, which is our primary
objective for the year.
"It is important to note that Comstock's current operations do not
reflect the full earnings power of our business due to the joint venture
partnerships we used during the economic downturn to fund two of our
currently open housing communities. We are currently exploring more
cost-effective financing options that would give us the flexibility to
fund future projects through the Company's improved balance sheet."
First-Quarter 2013 Financial Results
Total revenue for the first quarter of 2013 totaled $11.6 million ($11.4
million from 21 home settlements) compared to $3.9 million for the 2012
first quarter. This compares to 17 settlements and $3.2 million in
homebuilding revenue in the first quarter of 2012.
The Company reported net income from continuing operations of $1.1
million for the first quarter 2013 compared to a net loss from
continuing operations of $(1.4) million for the same period in 2012. In
the first quarter of 2013, net income attributable to Comstock Holding
Companies totaled $0.7 million, or $0.03 per diluted share, compared to
$3.9 million, or $0.19 per diluted share, in the prior-year period,
which included a gain of $6.5 million within net income from
discontinued operations resulting from the $19.35 million sale of
Cascades Apartments, the Company's first investment grade property. The
Company's 2013 results reflect the reversal of an impairment charge of
$0.7 million reflecting increased sales activity at its Eclipse project.
Pipeline Update (refer to Exhibit 1 and Exhibit 2)
|
•
|
|
Hampshires
|
|
|
73 townhome lots and 38 single family lots in the Lamond Riggs
neighborhood in northeast, Washington, DC. Construction on the
single family units began in August 2012, with the first closings
occurring during March 2013. Construction on the townhomes began
in April 2013. There are 7 single family units currently in
backlog, with average revenue of $740,500. There are 4 townhome
units currently in backlog, with average revenue of $535,000.
|
|
|
|
|
|
|
|
|
|
|
•
|
|
Shady Grove
|
|
|
36 townhome lots and 117 multi-family lots across the street from
the Shady Grove Metro station in Rockville, MD (Montgomery
County). Closing on the property took place in March 2013. Site
development is expected to begin in June.
|
|
|
|
|
|
|
|
|
|
|
•
|
|
Falls Grove
|
|
|
110 townhome lots and 19 single family lots off Route 28 in
Manassas, VA (Prince William County). The Company purchased the
first 7 single family lots in 2011, closing on the remaining lots
in May 2013. Site development is expected to begin in June.
|
|
|
|
|
|
|
|
|
|
|
•
|
|
Eastgate
|
|
|
66 finished "six-plex" lots in Chantilly, VA (Loudoun County).
Construction on the units began in December 2012, with the first
closings occurring during March 2013. There are 35 units currently
in backlog, with average revenue of $378,000. Since inception,
sales have consistently averaged 2 per week, achieving consistent
revenue increases.
|
|
|
|
|
|
|
|
About Comstock Holding Companies, Inc.
Comstock is a homebuilding and multi-faceted real estate development and
services company that builds a wide range of housing products under its
Comstock Homes brand through its wholly owned subsidiary, Comstock Homes
of Washington, LC. Our track record of developing numerous successful
new home communities and more than 5,500 homes, together with our
substantial experience in building a diverse range of products including
apartments, single-family homes, townhouses, mid-rise condominiums,
high-rise condominiums and mixed-use (residential and commercial)
developments has positioned Comstock as a leading residential developer
and homebuilder in the Washington, D.C. metropolitan area. Comstock
Holding Companies, Inc. is a publicly traded company, trading on NASDAQ
under the symbol: CHCI. For more information about Comstock or its new
home communities, please visit www.comstockhomes.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 including incurring substantial indebtedness
with respect to projects, the diversion of management's attention and
other negative consequences. 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. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether
as a result of new information, future developments or otherwise.
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
|
Settled Revenue by Community
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2013
|
|
Community
|
|
|
|
Settled
|
|
|
|
Settled
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
Eastgate Villas |
|
|
|
5
|
|
|
|
$1,831,340 |
|
The Hampshires - Singles
|
|
|
|
6
|
|
|
|
$4,469,650 |
|
The Hampshires - Towns
|
|
|
|
-
|
|
|
|
-
|
|
Penderbrook Square (Sold Out)
|
|
|
|
2
|
|
|
|
$365,000 |
|
The Eclipse
|
|
|
|
8
|
|
|
|
$4,729,700 |
|
Total
|
|
|
|
21
|
|
|
|
$11,395,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2
|
|
|
|
|
|
Form of Entity Structure by Community
|
|
|
|
|
|
|
|
Community
|
|
|
|
Entity Structure
|
|
Eastgate Villas |
|
|
|
Joint Venture
|
|
Falls Grove - Single Family/Townhomes
|
|
|
|
Comstock VII
|
|
The Hampshires - Single Family/Townhomes
|
|
|
|
Joint Venture/Comstock VII
|
|
The Eclipse
|
|
|
|
100% CHCI
|
|
Shady Grove - Townhomes/Multi-Fam
|
|
|
|
Comstock VII
|
Notes:
Information is provided to aid the reader in understanding the
allocation of community profit to non-controlling interests
Joint Venture - essentially 50/50 profit
split after certain fee reimbursement to CHCI
Comstock VII - investors entitled to 20%
preferred distribution and return of capital in advance of CHCI
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2013
|
|
|
December 31,
2012
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
9,335
|
|
|
|
$
|
3,539
|
|
|
Restricted cash
|
|
|
|
3,307
|
|
|
|
|
3,203
|
|
|
Trade receivables
|
|
|
|
1,680
|
|
|
|
|
1,611
|
|
|
Real estate held for development and sale
|
|
|
|
25,376
|
|
|
|
|
27,781
|
|
|
Property, plant and equipment, net
|
|
|
|
237
|
|
|
|
|
222
|
|
|
Other assets
|
|
|
|
2,134
|
|
|
|
|
2,343
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
$
|
42,069
|
|
|
|
$
|
38,699
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
5,136
|
|
|
|
$
|
4,691
|
|
|
Notes payable - secured by real estate held for development and
sale, net of discount
|
|
|
|
14,262
|
|
|
|
|
19,492
|
|
|
Notes payable - due to affiliates, unsecured
|
|
|
|
5,064
|
|
|
|
|
5,041
|
|
|
Notes payable - unsecured
|
|
|
|
2,967
|
|
|
|
|
3,096
|
|
|
Income taxes payable
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
|
|
|
|
27,429
|
|
|
|
|
32,320
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 10)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Class A common stock, $0.01 par value, 77,266,500 shares
authorized, 18,243,053 and
|
|
|
|
|
|
|
|
|
|
|
17,816,420 issued and outstanding, respectively
|
|
|
|
182
|
|
|
|
|
176
|
|
|
Class B common stock, $0.01 par value, 2,733,500 shares authorized,
issued and outstanding
|
|
|
|
27
|
|
|
|
|
27
|
|
|
Additional paid-in capital
|
|
|
|
170,404
|
|
|
|
|
170,070
|
|
|
Treasury stock, at cost (426,633 shares Class A common stock)
|
|
|
|
(2,480
|
)
|
|
|
|
(2,480
|
)
|
|
Accumulated deficit
|
|
|
|
(161,626
|
)
|
|
|
|
(162,349
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL COMSTOCK HOLDING EQUITY
|
|
|
|
6,507
|
|
|
|
|
5,444
|
|
|
Non-controlling interest
|
|
|
|
8,133
|
|
|
|
|
935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY
|
|
|
|
14,640
|
|
|
|
|
6,379
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
42,069
|
|
|
|
$
|
38,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Revenue—homebuilding
|
|
|
$
|
11,396
|
|
|
|
$
|
3,186
|
|
|
Revenue—other
|
|
|
|
161
|
|
|
|
|
749
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
|
11,557
|
|
|
|
|
3,935
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Cost of sales—homebuilding
|
|
|
|
8,796
|
|
|
|
|
2,754
|
|
|
Cost of sales—other
|
|
|
|
221
|
|
|
|
|
1,064
|
|
|
Impairments (reversals) (Note 2)
|
|
|
|
(722
|
)
|
|
|
|
—
|
|
|
Selling, general and administrative
|
|
|
|
1,997
|
|
|
|
|
1,886
|
|
|
Interest, real estate taxes and indirect costs related to inactive
projects
|
|
|
|
226
|
|
|
|
|
600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
|
1,039
|
|
|
|
|
(2,369
|
)
|
|
Other income, net
|
|
|
|
27
|
|
|
|
|
29
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax benefit
|
|
|
|
1,066
|
|
|
|
|
(2,340
|
)
|
|
Income tax benefit
|
|
|
|
—
|
|
|
|
|
912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing operations
|
|
|
|
1,066
|
|
|
|
|
(1,428
|
)
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations
|
|
|
|
(4
|
)
|
|
|
|
(122
|
)
|
|
Gain on sale of real estate from discontinued operations
|
|
|
|
—
|
|
|
|
|
6,516
|
|
|
Income tax expense from discontinued operations
|
|
|
|
—
|
|
|
|
|
(912
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income from discontinued operations
|
|
|
|
(4
|
)
|
|
|
|
5,482
|
|
|
Net income
|
|
|
|
1,062
|
|
|
|
|
4,054
|
|
|
Less: Net income from continuing operations attributable to
non-controlling interests
|
|
|
|
339
|
|
|
|
|
—
|
|
|
Less: Net income from discontinued operations attributable to
non-controlling interests
|
|
|
|
—
|
|
|
|
|
103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Comstock Holding Companies, Inc. |
|
|
$
|
723
|
|
|
|
$
|
3,951
|
|
|
|
|
|
|
|
|
|
Basic income per share
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.04
|
|
|
|
$
|
(0.07
|
)
|
|
Discontinued operations
|
|
|
|
—
|
|
|
|
|
0.26
|
|
|
Net income per share
|
|
|
$
|
0.04
|
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
|
|
|
|
|
Continuing operations
|
|
|
$
|
0.03
|
|
|
|
$
|
(0.07
|
)
|
|
Discontinued operations
|
|
|
|
—
|
|
|
|
|
0.26
|
|
|
Net income per share
|
|
|
$
|
0.03
|
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
20,524
|
|
|
|
|
20,287
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
21,717
|
|
|
|
|
20,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to Comstock Holding Companies, Inc. |
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations
|
|
|
$
|
727
|
|
|
|
$
|
(1,428
|
)
|
|
(Loss) income from discontinued operations
|
|
|
|
(4
|
)
|
|
|
|
5,379
|
|
|
Net income
|
|
|
$
|
723
|
|
|
|
$
|
3,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
1,062
|
|
|
|
$
|
4,054
|
|
|
Adjustment to reconcile net income to net cash provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of loan discount and deferred financing fees
|
|
|
|
166
|
|
|
|
|
335
|
|
|
Depreciation expense
|
|
|
|
11
|
|
|
|
|
91
|
|
|
Provision for bad debt
|
|
|
|
7
|
|
|
|
|
—
|
|
|
Gain on sale of operating real estate, net
|
|
|
|
—
|
|
|
|
|
(6,516
|
)
|
|
Loss on disposal of property, plant and equipment
|
|
|
|
—
|
|
|
|
|
1
|
|
|
Impairment (reversals)
|
|
|
|
(722
|
)
|
|
|
|
—
|
|
|
Amortization of stock compensation
|
|
|
|
171
|
|
|
|
|
272
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
(104
|
)
|
|
|
|
(19
|
)
|
|
Trade receivables
|
|
|
|
(76
|
)
|
|
|
|
629
|
|
|
Real estate held for development and sale
|
|
|
|
3,160
|
|
|
|
|
1,906
|
|
|
Other assets
|
|
|
|
(148
|
)
|
|
|
|
(411
|
)
|
|
Accrued interest
|
|
|
|
107
|
|
|
|
|
(502
|
)
|
|
Accounts payable and accrued liabilities
|
|
|
|
445
|
|
|
|
|
(925
|
)
|
|
Income taxes payable
|
|
|
|
—
|
|
|
|
|
(10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
|
4,079
|
|
|
|
|
(1,095
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
|
(26
|
)
|
|
|
|
—
|
|
|
Proceeds from sale of Cascades Apartments — operating real estate,
net
|
|
|
|
274
|
|
|
|
|
18,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
|
|
248
|
|
|
|
|
18,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from notes payable
|
|
|
|
9,301
|
|
|
|
|
—
|
|
|
Payments on notes payable
|
|
|
|
(14,744
|
)
|
|
|
|
(12,087
|
)
|
|
Loan financing costs
|
|
|
|
(83
|
)
|
|
|
|
—
|
|
|
Distribution of non-controlling interests and preferred returns
|
|
|
|
—
|
|
|
|
|
(2,944
|
)
|
|
Proceeds from Comstock Investor VII, L.C. private placement
|
|
|
|
6,995
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
1,469
|
|
|
|
|
(15,031
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents
|
|
|
|
5,796
|
|
|
|
|
2,274
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
3,539
|
|
|
|
|
5,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
9,335
|
|
|
|
$
|
7,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure for non-cash activity:
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid, net of interest capitalized
|
|
|
$
|
(30
|
)
|
|
|
$
|
831
|
|
|
Reduction in proceeds from sale of Cascades Apartment and increase
in other assets related to
|
|
|
|
|
|
|
|
|
|
|
|
amounts placed in escrow upon settlement of Cascades Apartments
sale
|
|
|
$
|
—
|
|
|
|
$
|
950
|
|
|
Increase in class A common stock par value in connection with
issuance of stock compensation
|
|
|
$
|
6
|
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comstock Holding Companies, Inc.
Joe Squeri, 703-230-1229
Chief
Financial Officer
or
Investor Relations:
LHA
Harriet
Fried/Jody Burfening
212-838-3777
hfried@lhai.com
Source: Comstock Holding Companies, Inc.
News Provided by Acquire Media