-
1Q homebuilding revenue totaled $7.8 million on 19 deliveries
-
Backlog doubles to 41 units valued at $18.5 million compared to a
year earlier
-
Community count of 11 at quarter-end 2014 compared to 5 a year
earlier
RESTON, Va.--(BUSINESS WIRE)--
Comstock Holding Companies, Inc. (NASDAQ:CHCI) ("Comstock" or the
"Company"), a leading homebuilding and multi-faceted real estate
development and services company focused on the Washington, D.C.
metropolitan area, today announced results for the first quarter ended
March 31, 2014.
Chairman and CEO Christopher Clemente commented, "As noted in our
year-end press release on March 28, 2014, unusually harsh winter
conditions delayed development and construction activities and impacted
Comstock's deliveries and revenue for the first quarter. However, in
spite of the weather conditions, sales during the first quarter of this
year kept pace with the strong sales we experienced during the same
period last year. Comstock generated 32 new orders valued at
approximately $14 million during the first quarter of this year compared
to 33 sales valued at $15.2 million during the same period last year.
Sales during the first quarter of this year expanded our backlog as of
quarter end to 41 units, valued at $18.5 million, as compared to 21
units, valued at $9.2 million, as of March 31, 2013. Our open community
count stands at 11, up from five at the same time last year. Based on
continued healthy activity in the market, a limited supply of existing
homes listed for sale, and our expanded pipeline of building lots, we
believe Comstock is well positioned to capitalize on the favorable
market trends in the Washington, D.C. region."
First Quarter 2014 Financial Results
Net new orders of homes totaled 32 for the three months ended March 31,
2014 compared to 33 in the same period last year. Backlog totaled 41
units (representing $18.5 million in revenue) as of March 31, 2014
compared to 21 units (representing $9.2 million in revenue) as of March
31, 2013. Average backlog price increased to $452,000 from $439,000 in
the same period last year.
Total revenue for the first quarter of 2014 totaled $8.0 million ($7.8
million from 19 home settlements) compared to $11.6 million for the 2013
first quarter ($11.4 million from 21 home settlements). The Company
reported a consolidated net loss of $0.8 million for the first quarter
of 2014 compared to net income of $1.1 million for the 2013 period. In
the first quarter of 2014, net loss attributable to Comstock Holding
Companies totaled $1.6 million, or $0.08 per diluted share, compared to
net income of $0.7 million, or $0.03 per diluted share, in the
prior-year period. The 2013 period included the reversal of a $0.7
million impairment charge reflecting increased sales activity at the
Company's Eclipse project in Arlington, VA.
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, townhomes, 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 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; adverse weather conditions or 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, 2013. 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.
|
|
|
Exhibit 1
|
|
Settled Revenue by Community
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014 (000's)
|
|
|
|
|
|
|
|
Community
|
|
|
Settled
|
|
|
Settled
Revenue
|
|
Villas as Eastgate
|
|
|
1
|
|
|
$
|
351
|
|
City Homes at the Hampshires
|
|
|
2
|
|
|
|
1,480
|
|
Townes at the Hampshires
|
|
|
6
|
|
|
|
3,063
|
|
Townes at Falls Grove |
|
|
10
|
|
|
|
2,937
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
19
|
|
|
$
|
7,831
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 2
|
|
Backlog by Community
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2014 (000's)
|
|
|
|
|
|
|
|
Community
|
|
|
Backlog
Units
|
|
|
Backlog
Revenue
|
|
Villas at Eastgate
|
|
|
10
|
|
|
$
|
3,964
|
|
City Homes at the Hampshires
|
|
|
1
|
|
|
|
747
|
|
Townes at the Hampshires
|
|
|
6
|
|
|
|
3,343
|
|
Townes at Falls Grove |
|
|
11
|
|
|
|
3,317
|
|
Townes at Maxwell Square |
|
|
4
|
|
|
|
1,635
|
|
Townes at Shady Grove Metro
|
|
|
9
|
|
|
|
5,524
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
41
|
|
|
$
|
18, 530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2014
|
|
|
December 31,
2013
|
|
ASSETS
|
|
|
(unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
7,363
|
|
|
|
$
|
11,895
|
|
|
Restricted cash
|
|
|
|
2,764
|
|
|
|
|
2,458
|
|
|
Trade receivables
|
|
|
|
523
|
|
|
|
|
346
|
|
|
Real estate inventories
|
|
|
|
41,075
|
|
|
|
|
39,843
|
|
|
Property, plant and equipment, net
|
|
|
|
223
|
|
|
|
|
243
|
|
|
Other assets
|
|
|
|
2,162
|
|
|
|
|
2,094
|
|
|
TOTAL ASSETS
|
|
|
$
|
54,110
|
|
|
|
$
|
56,879
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
7,139
|
|
|
|
$
|
7,506
|
|
|
Notes payable - secured by real estate inventories
|
|
|
|
23,481
|
|
|
|
|
22,701
|
|
|
Notes payable - due to affiliates, unsecured
|
|
|
|
4,575
|
|
|
|
|
4,687
|
|
|
Notes payable - unsecured
|
|
|
|
2,451
|
|
|
|
|
2,580
|
|
|
Income taxes payable
|
|
|
|
144
|
|
|
|
|
346
|
|
|
TOTAL LIABILITIES
|
|
|
|
37,790
|
|
|
|
|
37,820
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 8)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Class A common stock, $0.01 par value, 77,266,500 shares
authorized, 18,780,754
|
|
|
|
|
|
|
|
and 18,629,638 issued and outstanding, respectively
|
|
|
|
188
|
|
|
|
|
186
|
|
|
Class B common stock, $0.01 par value, 2,733,500 shares authorized,
issued and outstanding
|
|
|
|
27
|
|
|
|
|
27
|
|
|
Additional paid-in capital
|
|
|
|
171,030
|
|
|
|
|
170,811
|
|
|
Treasury stock, at cost (426,633 shares Class A common stock)
|
|
|
|
(2,480
|
)
|
|
|
|
(2,480
|
)
|
|
Accumulated deficit
|
|
|
|
(165,958
|
)
|
|
|
|
(164,379
|
)
|
|
TOTAL COMSTOCK HOLDING COMPANIES, INC. EQUITY
|
|
|
|
2,807
|
|
|
|
|
4,165
|
|
|
Non-controlling interest
|
|
|
|
13,513
|
|
|
|
|
14,894
|
|
|
TOTAL EQUITY
|
|
|
|
16,320
|
|
|
|
|
19,059
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
54,110
|
|
|
|
$
|
56,879
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
Revenues
|
|
|
|
|
|
|
|
Revenue—homebuilding
|
|
|
$
|
7,831
|
|
|
|
$
|
11,396
|
|
|
Revenue—other
|
|
|
|
123
|
|
|
|
|
161
|
|
|
Total revenue
|
|
|
|
7,954
|
|
|
|
|
11,557
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Cost of sales—homebuilding
|
|
|
|
6,256
|
|
|
|
|
8,796
|
|
|
Cost of sales—other
|
|
|
|
93
|
|
|
|
|
221
|
|
|
Impairment reversal
|
|
|
|
-
|
|
|
|
|
(722
|
)
|
|
Sales and marketing
|
|
|
|
538
|
|
|
|
|
446
|
|
|
General and administrative
|
|
|
|
1,889
|
|
|
|
|
1,555
|
|
|
Interest, real estate taxes and indirect costs related to inactive
projects
|
|
|
|
2
|
|
|
|
|
226
|
|
|
Operating (loss) income
|
|
|
|
(824
|
)
|
|
|
|
1,035
|
|
|
Other income, net
|
|
|
|
55
|
|
|
|
|
27
|
|
|
Loss (income) before income tax expense
|
|
|
|
(769
|
)
|
|
|
|
1,062
|
|
|
Income tax expense
|
|
|
|
(74
|
)
|
|
|
|
-
|
|
|
Net (loss) income
|
|
|
|
(843
|
)
|
|
|
|
1,062
|
|
|
Less: Net income attributable to non-controlling interests
|
|
|
|
736
|
|
|
|
|
339
|
|
|
Net (loss) income attributable to Comstock Holding Companies, Inc. |
|
|
$
|
(1,579
|
)
|
|
|
$
|
723
|
|
|
|
|
|
|
|
|
|
|
Basic net (loss) income per share
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
0.04
|
|
|
Diluted net (loss) income per share
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
20,935
|
|
|
|
|
20,524
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
20,935
|
|
|
|
|
21,717
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
2013
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(843
|
)
|
|
|
$
|
1,062
|
|
|
Adjustment to reconcile net (loss) income to net cash used in
operating activities
|
|
|
|
|
|
|
|
Amortization of loan discount and deferred financing fees
|
|
|
|
69
|
|
|
|
|
166
|
|
|
Depreciation expense
|
|
|
|
24
|
|
|
|
|
11
|
|
|
Provision for bad debt
|
|
|
|
-
|
|
|
|
|
7
|
|
|
Undistributed earnings from unconsolidated joint venture
|
|
|
|
34
|
|
|
|
|
-
|
|
|
Impairment reversal
|
|
|
|
-
|
|
|
|
|
(722
|
)
|
|
Amortization of stock compensation
|
|
|
|
134
|
|
|
|
|
171
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
|
(199
|
)
|
|
|
|
(104
|
)
|
|
Trade receivables
|
|
|
|
(177
|
)
|
|
|
|
(76
|
)
|
|
Real estate inventories
|
|
|
|
(1,216
|
)
|
|
|
|
3,160
|
|
|
Other assets
|
|
|
|
(171
|
)
|
|
|
|
(148
|
)
|
|
Accrued interest
|
|
|
|
194
|
|
|
|
|
107
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
(238
|
)
|
|
|
|
445
|
|
|
Income taxes payable
|
|
|
|
(202
|
)
|
|
|
|
-
|
|
|
Net cash (used in) provided by operating activities
|
|
|
|
(2,591
|
)
|
|
|
|
4,079
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
Investment in unconsolidated joint venture
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Purchase of property, plant and equipment
|
|
|
|
(4
|
)
|
|
|
|
(26
|
)
|
|
Restricted cash
|
|
|
|
(107
|
)
|
|
|
|
-
|
|
|
Proceeds from sale of Cascades Apartments - operating real estate,
net
|
|
|
|
-
|
|
|
|
|
274
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
(111
|
)
|
|
|
|
248
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
Proceeds from notes payable
|
|
|
|
5,405
|
|
|
|
|
9,301
|
|
|
Payments on notes payable
|
|
|
|
(5,060
|
)
|
|
|
|
(14,744
|
)
|
|
Loan financing costs
|
|
|
|
-
|
|
|
|
|
(83
|
)
|
|
Distributions to non-controlling interests
|
|
|
|
(2,117
|
)
|
|
|
|
-
|
|
|
Contributions from non-controlling interests
|
|
|
|
-
|
|
|
|
|
6,995
|
|
|
Proceeds from exercise of stock options
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Taxes paid related to net share settlement of equity awards
|
|
|
|
(58
|
)
|
|
|
|
-
|
|
|
Net cash (used in) provided by financing activities
|
|
|
|
(1,830
|
)
|
|
|
|
1,469
|
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(4,532
|
)
|
|
|
|
5,796
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
11,895
|
|
|
|
|
3,539
|
|
|
Cash and cash equivalents, end of period
|
|
|
$
|
7,363
|
|
|
|
$
|
9,335
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure for non-cash activity:
|
|
|
|
|
|
|
|
Interest paid, net of interest capitalized
|
|
|
$
|
(263
|
)
|
|
|
$
|
(30
|
)
|
|
Increase in class A common stock par value in connection with
vesting and issuance of stock
compensation
|
|
|
$
|
2
|
|
|
|
$
|
6
|
|
|
Accrued liability settled through issuance of stock
|
|
|
$
|
129
|
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
Company:
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.
News Provided by Acquire Media