News Details

• 3Q homebuilding revenue of $9.2 million compared to $2.5 million in 3Q last year
• 3Q net income from continuing operations of $0.3 million compared to net loss of $(4.2) million 3Q last year
• Net new home orders increased to 104 for the first nine months of 2013 compared to 47 in the first nine months of the prior year
• Backlog of $22.5 million at quarter-end, up from $5.1 million one year earlier

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 third quarter of 2013, ended September 30.

"The significant increase in new orders, settlements and revenue generated in the third quarter and the first nine months of 2013 is the result of two primary factors; a meaningful increase in demand for new homes in our core market of Washington, DC, and our focus on increasing our open community count so that we can position Comstock to capitalize on the increased demand" stated Chairman and CEO, Christopher Clemente. "At year end 2012, we had two open communities. We expect to have six open communities by year-end 2013. With additional increases planned for 2014, we expect to continue the progress we have made over the past year towards our ultimate goal of generating consistently positive results.

Third-Quarter 2013 Financial Results

Net new orders of homes increased to 27 for the three months ended September 30, 2013 from 13 in the same period last year. For the nine months ended September 30, 2013, net new orders increased to 104 from 47 in the same period last year. Backlog totaled 50 units (representing $22.5 million in revenue) as of September 30, 2013 compared to 9 units (representing $5.1 million in revenue) as of September 30, 2012. Average backlog price decreased to $449 from $568 in the same period last year, which is largely related to product mix.

Total revenue for the third quarter of 2013 totaled $9.6 million ($9.2 million from 20 home settlements) compared to $3.5 million ($2.5 million from 12 home settlements) for the third quarter of 2012. Total revenue for the nine months ended September 30, 2013 totaled $33.3 million ($32.6 million from 63 home settlements) compared to $11.7 million ($9.5 million from 41 settlements) for the nine months ended September 30, 2012. The Company reported net income from continuing operations of $0.3 million for the third quarter of 2013 compared to a net loss from continuing operations of $(4.2) million for the same period in 2012. In the third quarter of 2013, net loss attributable to Comstock Holding Companies totaled $(0.7) million, or $(0.03) per diluted share, compared to $(4.5) million, or $(0.22) per diluted share, in the same period last year. The 2012 period included a loss of $(0.4) million within net (loss) income from discontinued operations resulting from the tax impact of the $19.35 million sale of Cascades Apartments, the Company's first investment grade multi-family property.

The Company's results for the nine months ended September 30, 2013 reflected the reversal of an impairment charge of $0.7 million reflecting increased sales activity at its Eclipse project in the first quarter of 2013, which was fully settled and exited by the Company in the second quarter of 2013.

Backlog and 2013 Revenue Update (see Exhibit 1)

As of November 11, 2013, the Company has total backlog of $24.3 million representing 51 units. Of these units in backlog, 46 representing $21.3 million in revenue are expected to close this year. Total revenue settled to date as of November 11, 2013 is $37.6 million representing 73 units. Consequently, the Company estimates total homebuilding revenue for 2013 will be approximately $60 million on 120 units settled. Backlog detail by community is as follows:

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 includes "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Some factors which may affect the accuracy of the forward-looking statements apply generally to the real estate industry, while other factors apply directly to us. Any number of important factors which could cause actual results to differ materially from those in the forward-looking statements include, without limitation: general economic and market conditions, including interest rate levels; our ability to service our debt; inherent risks in investment in real estate; our ability to compete in the markets in which we operate; economic risks in the markets in which we operate, including actions related to government spending; delays in governmental approvals and/or land development activity at our projects; regulatory actions; fluctuations in operating results; our anticipated growth strategies; shortages and increased costs of labor or building materials; the availability and cost of land in desirable areas; natural disasters; our ability to raise debt and equity capital and grow our operations on a profitable basis; and our continuing relationships with affiliates. Additional information concerning these and other important risk and uncertainties can be found under the heading "Risk Factors" in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, for the fiscal year ended December 31, 2012. Our actual results could differ materially from these projected or suggested by the forward-looking statements. Comstock claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements contained herein. 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 Holding Companies, Inc.
Joe Squeri, 703-230-1229
Chief Financial Officer
or
Investor Relations:
LHA
Jody Burfening / Harriet Fried
212-838-3777
hfried@lhai.com

Source: Comstock Holding Companies, Inc.

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