WASHINGTON & RESTON, Va.--(BUSINESS WIRE)--
Comstock Holding Companies, Inc., (NASDAQ:CHCI), today announced
financial results for the year ended December 31, 2015 and provided an
update on first quarter 2016 performance:
Highlights of Fourth Quarter of 2015
-
Fourth Quarter Revenue Up 166% to $26.2 Million from $9.8 Million in
4Q14
-
Fourth Quarter Unit Deliveries Up 165% to 53 from 20 in Same Period
2014
-
Fourth Quarter net income attributable to Comstock of $1.0 million
before accounting for 2015 impairments of $2.8 million.
Highlights of 2015
-
2015 Revenue Up 28% to $61.4 Million from $48.0 Million in 2014
-
2015 Unit Deliveries Up 21% to 123 from 102 in 2014
-
Net loss of $(4.6) million or $(1.43) per diluted share in 2015
compared to net loss of $(6.8) million or $(2.27) per diluted share in
2014
-
2015 results reflect an impairment charge of $(2.8) million or $(0.86)
per diluted share
-
Backlog at year-end 2015 of 25 units valued at $10.8 million, compared
to 24 units valued at $12.4 million at year-end 2014;
The
Company filed a Form 12b-25 Notification of Late Filing with the U.S.
Securities and Exchange Commission on March 31, 2016 with regard to
its Form 10-K for the year ended December 31, 2015. The Company needs
additional time to complete the accounting associated with the
Company's conversion of Stonehenge debt to preferred equity and most
recent private offering, the Comstock Growth Fund II. The Company
expects that it will complete the subject work in time for the Company
to file its Form 10-K for the fiscal year ended December 31, 2015
within the fifteen-day extension provided by Rule 12b- 25 of the
Exchange Act.
2016 1st quarter preliminary highlights:
On a preliminary basis, the Company indicated performance metrics as set
forth below during the first quarter of 2016. Note that the preliminary
financial results, other than the historical results referenced below,
are subject to completion of Comstock's financial and accounting closing
and review procedures.
-
Homebuilding revenue in the first quarter of 2016 of $9.5 million
compared to approximately $10.0 million in the same period of 2015,
-
Unit deliveries in the first quarter of 2016 of 22, compared to 21
unit deliveries in the same period of 2015,
-
Backlog at March 31, 2016 of 38 units valued at approximately $16.3
million, all of which is expected to be delivered in 2016, compared to
27 units valued at $14.3 million at March 31, 2015.
Business Commentary
Chairman and CEO Christopher Clemente commented: "Significant
operational enhancements and changes to our product offerings
implemented over the 18 months helped make the fourth quarter of 2015
our most productive quarter in several years. Cost reductions resulting
from several operational changes will contribute to general and
administrative reductions in 2016. We are confident that our reduced
fixed operating costs coupled with what appears to be improving
conditions in our core market of Washington, DC will contribute
positively to our effort to restore the Company to profitability."
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Year Ended December 31,
|
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2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
Revenue—homebuilding
|
|
$
|
60,132
|
|
|
$
|
47,378
|
|
|
Revenue—other
|
|
|
1,244
|
|
|
|
587
|
|
|
Total revenue
|
|
|
61,376
|
|
|
|
47,965
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(3,556
|
)
|
|
|
(2,976
|
)
|
|
Net loss
|
|
|
(1,963
|
)
|
|
|
(3,114
|
)
|
|
Net income attributable to non-controlling interests
|
|
|
2,604
|
|
|
|
3,725
|
|
|
Net loss attributable to Comstock Holding Companies, Inc. |
|
$
|
(4,567
|
)
|
|
$
|
(6,839
|
)
|
|
|
|
|
|
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|
Basic and diluted net loss per share
|
|
$
|
(1.43
|
)
|
|
$
|
(2.27
|
)
|
|
|
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Supplemental data
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Unit deliveries
|
|
|
123
|
|
|
|
102
|
|
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Backlog units
|
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25
|
|
|
|
24
|
|
|
Backlog revenue
|
|
$
|
10,785
|
|
|
$
|
12,430
|
|
|
Controlled communities (1)
|
|
|
17
|
|
|
|
19
|
|
|
Open communities
|
|
|
10
|
|
|
|
7
|
|
|
Pipeline units under control (1)
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|
526
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946
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(1) Includes communities and units under land option purchase
contract, not owned.
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COMSTOCK COMMUNITIES NOW OPEN
-
Townes at Falls Grove (Manassas, VA, Prince William County) - townhome
style condominiums priced from the high $200s
-
Townes at Shady Grove (Rockville, MD, Montgomery County) - townhomes,
adjacent to the Metro, priced from the low $600s
-
Townes at Maxwell Square (Frederick, MD, Frederick County) - townhomes
in historic downtown Frederick priced from the high $300s
-
Townes at Hallcrest (Sterling, VA, Loudoun County) - townhomes priced
from the mid $400s
-
Estates at Falls Grove (Manassas, VA, Prince William County) -
single-family homes priced from the high $400s
-
Estates at Leeland (Fredericksburg, VA, Stafford County) -
single-family homes priced from the mid $300s
-
The Villas at Two Rivers I (Odenton, MD, Anne Arundel County) - villas
priced from the low $400s
-
The Villas at Two Rivers II (Odenton, MD, Anne Arundel County) -
villas priced from the low $400s
COMSTOCK COMMUNITIES COMING SOON
-
Marrwood East (Loudoun County, VA) - single-family homes priced from
the $600s with sales activity beginning in February 2016
-
Townes at Shady Grove - Phase II (Rockville, MD, Montgomery County) --
townhomes, adjacent to the Metro, priced from the low $600s
-
The Estates at Popkins Lane (Alexandria, VA) - single-family homes
priced from the mid $800s with construction activity beginning in late
2016 and sales activity beginning in winter of 2017
-
Townes at Totten Mews (Washington, DC) - townhomes priced from the
high $500s with construction and sales activity beginning in mid 2016.
-
The Townes at Richmond Station (Manassas, VA) - townhomes priced from
the $300s with construction activity beginning in late 2017 and sales
activity in early 2018.
-
Condos at Richmond Station (Manassas, VA) - condominiums priced from
the high $200s with construction activity beginning in late 2017 and
sales activity in early 2018.
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 nearly 6,000 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 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: completion of
Comstock's financial accounting and review procedures; 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, 2014. 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.
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COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
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|
CONSOLIDATED BALANCE SHEETS
|
|
(Amounts in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
12,448
|
|
|
$
|
7,498
|
|
|
Restricted cash
|
|
|
2,566
|
|
|
|
1,779
|
|
|
Trade receivables
|
|
|
332
|
|
|
|
110
|
|
|
Real estate inventories
|
|
|
38,223
|
|
|
|
40,889
|
|
|
Fixed assets, net
|
|
|
394
|
|
|
|
395
|
|
|
Other assets
|
|
|
4,515
|
|
|
|
5,696
|
|
|
TOTAL ASSETS
|
|
$
|
58,478
|
|
|
$
|
56,367
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
7,638
|
|
|
$
|
8,538
|
|
|
Notes payable - secured by real estate inventories
|
|
|
24,823
|
|
|
|
28,379
|
|
|
Notes payable - due to affiliates, unsecured, net of discount
|
|
|
19,028
|
|
|
|
15,488
|
|
|
Notes payable - unsecured
|
|
|
1,548
|
|
|
|
2,064
|
|
|
Income taxes payable
|
|
|
-
|
|
|
|
43
|
|
|
TOTAL LIABILITIES
|
|
|
53,037
|
|
|
|
54,512
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
|
-
|
|
|
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
Preferred Stock, $0.01 par value, 772,210 issued and outstanding
shares with a liquidation
|
|
|
|
|
|
preference of $3,861 at December 31, 2015 and 0 shares authorized,
issued and outstanding
|
|
|
|
|
|
at December 31, 2014
|
|
$
|
1,174
|
|
|
$
|
-
|
|
|
Class A common stock, $0.01 par value, 11,038,071 shares authorized,
2,997,437
|
|
|
|
|
|
and 2,726,455 issued and outstanding, respectively
|
|
|
30
|
|
|
|
27
|
|
|
Class B common stock, $0.01 par value, 390,500 shares authorized,
issued and outstanding
|
|
|
4
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
175,963
|
|
|
|
171,639
|
|
|
Treasury stock, at cost (85,570 and 74,576 shares Class A common
stock, respectively)
|
|
|
(2,662
|
)
|
|
|
(2,583
|
)
|
|
Accumulated deficit
|
|
|
(175,785
|
)
|
|
|
(171,218
|
)
|
|
TOTAL COMSTOCK HOLDING COMPANIES, INC. (DEFICIT)
|
|
|
(1,276
|
)
|
|
|
(2,131
|
)
|
|
Non-controlling interests
|
|
|
6,717
|
|
|
|
3,986
|
|
|
TOTAL EQUITY
|
|
|
5,441
|
|
|
|
1,855
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
58,478
|
|
|
$
|
56,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(Amounts in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
Revenues
|
|
|
|
|
|
Revenue—homebuilding
|
|
$
|
60,132
|
|
|
$
|
47,378
|
|
|
Revenue—other
|
|
|
1,244
|
|
|
|
587
|
|
|
Total revenue
|
|
|
61,376
|
|
|
|
47,965
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Cost of sales—homebuilding
|
|
|
51,583
|
|
|
|
38,133
|
|
|
Cost of sales—other
|
|
|
551
|
|
|
|
372
|
|
|
Impairment charges and write-offs
|
|
|
2,765
|
|
|
|
2,695
|
|
|
Sales and marketing
|
|
|
2,076
|
|
|
|
2,130
|
|
|
General and administrative
|
|
|
7,410
|
|
|
|
7,585
|
|
|
Interest and real estate tax expense
|
|
|
547
|
|
|
|
26
|
|
|
Operating loss
|
|
|
(3,556
|
)
|
|
|
(2,976
|
)
|
|
Other income, net
|
|
|
861
|
|
|
|
230
|
|
|
Loss before income tax benefit (expense)
|
|
|
(2,695
|
)
|
|
|
(2,746
|
)
|
|
Income tax benefit (expense)
|
|
|
732
|
|
|
|
(368
|
)
|
|
Net loss
|
|
|
(1,963
|
)
|
|
|
(3,114
|
)
|
|
Less: Net income attributable to non-controlling interests
|
|
|
2,604
|
|
|
|
3,725
|
|
|
Net loss attributable to Comstock Holding Companies, Inc. |
|
$
|
(4,567
|
)
|
|
$
|
(6,839
|
)
|
|
|
|
|
|
|
|
Basic loss per share
|
|
$
|
(1.43
|
)
|
|
$
|
(2.27
|
)
|
|
Diluted loss per share
|
|
$
|
(1.43
|
)
|
|
$
|
(2.27
|
)
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
3,198
|
|
|
|
3,012
|
|
|
Diluted weighted average shares outstanding
|
|
|
3,198
|
|
|
|
3,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
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|
|
Pipeline Report as of December 31, 2015
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Units
|
|
Average
|
|
|
|
|
|
|
|
|
|
Estimated
|
|
|
|
|
|
Units
|
|
|
|
Owned,
|
|
New Order
|
|
|
|
|
|
|
|
Product
|
|
Units at
|
|
Units
|
|
|
|
Owned
|
|
Units Under
|
|
Unsettled and
|
|
Revenue Per
|
|
Project
|
|
|
|
State
|
|
Type (1)
|
|
Completion
|
|
Settled
|
|
Backlog (8)
|
|
Unsold
|
|
Control (2)
|
|
Under Control
|
|
Unit to Date
|
|
City Homes at the Hampshires
|
|
|
|
DC
|
|
SF
|
|
38
|
|
37
|
|
-
|
|
1
|
|
-
|
|
1
|
|
746
|
|
Townes at the Hampshires (3)
|
|
|
|
DC
|
|
TH
|
|
73
|
|
70
|
|
2
|
|
1
|
|
-
|
|
3
|
|
552
|
|
Estates at Falls Grove |
|
|
|
VA |
|
SF
|
|
19
|
|
8
|
|
3
|
|
8
|
|
-
|
|
11
|
|
537
|
|
Townes at Falls Grove |
|
|
|
VA |
|
TH
|
|
110
|
|
57
|
|
4
|
|
49
|
|
-
|
|
53
|
|
301
|
|
Townes at Shady Grove Metro
|
|
|
|
MD
|
|
TH
|
|
36
|
|
26
|
|
-
|
|
10
|
|
-
|
|
10
|
|
581
|
|
Townes at Shady Grove Metro (4)
|
|
|
|
MD
|
|
SF
|
|
3
|
|
3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Momentum | Shady Grove Metro (5)
|
|
|
|
MD
|
|
Condo
|
|
110
|
|
-
|
|
-
|
|
110
|
|
-
|
|
110
|
|
-
|
|
Estates at Emerald Farms |
|
|
|
MD
|
|
SF
|
|
84
|
|
78
|
|
-
|
|
6
|
|
-
|
|
6
|
|
-
|
|
Townes at Maxwell Square |
|
|
|
MD
|
|
TH
|
|
45
|
|
32
|
|
9
|
|
4
|
|
-
|
|
13
|
|
421
|
|
Townes at Hallcrest
|
|
|
|
VA |
|
TH
|
|
42
|
|
7
|
|
2
|
|
33
|
|
-
|
|
35
|
|
467
|
|
Estates at Leeland
|
|
|
|
VA |
|
SF
|
|
24
|
|
-
|
|
1
|
|
23
|
|
-
|
|
24
|
|
438
|
|
Villas | Preserve at Two Rivers 28'
|
|
|
|
MD
|
|
TH
|
|
10
|
|
2
|
|
-
|
|
8
|
|
-
|
|
8
|
|
445
|
|
Villas | Preserve at Two Rivers 32'
|
|
|
|
MD
|
|
TH
|
|
10
|
|
3
|
|
4
|
|
3
|
|
-
|
|
7
|
|
509
|
|
Estates at Popkins Lane |
|
|
|
VA |
|
SF
|
|
12
|
|
-
|
|
-
|
|
-
|
|
12
|
|
12
|
|
-
|
|
Townes at Richmond Station |
|
|
|
VA |
|
TH
|
|
54
|
|
-
|
|
-
|
|
-
|
|
54
|
|
54
|
|
-
|
|
Richmond Station Multi-family
|
|
|
|
VA |
|
MF
|
|
104
|
|
-
|
|
-
|
|
-
|
|
104
|
|
104
|
|
-
|
|
Townes at Totten Mews (6)
|
|
|
|
DC
|
|
TH
|
|
40
|
|
-
|
|
-
|
|
-
|
|
40
|
|
40
|
|
-
|
|
Marrwood East (7)
|
|
|
|
VA |
|
SF
|
|
35
|
|
-
|
|
-
|
|
-
|
|
35
|
|
35
|
|
-
|
|
Total
|
|
|
|
|
|
|
|
849
|
|
323
|
|
25
|
|
256
|
|
245
|
|
526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) "SF" means single family home, "TH" means townhouse, "Condo"
means condominium and "MF" means multi-family.
|
|
(2) Under land option purchase contract, not owned.
|
|
(3) 3 of these units are subject to statutory affordable dwelling
unit program.
|
|
(4) Units are subject to statutory moderately priced dwelling unit
program.
|
|
(5) 16 of these units are subject to statutory moderately priced
dwelling unit program.
|
|
(6) 5 of these units are subject to statutory affordable dwelling
unit program.
|
|
(7) 1 of these units is subject to statutory affordable dwelling
unit program.
|
|
(8) "Backlog" means we have an executed order with a buyer but the
settlement did not occur prior to report date.
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160401005937/en/
Company:
Comstock Holding Companies, Inc.
Christopher
Conover, 703-230-1985
Interim 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