WASHINGTON & RESTON, Va.--(BUSINESS WIRE)--
Comstock Holding Companies, Inc., (NASDAQ:CHCI), announced results for
the three and nine month periods ended September 30, 2016:
Highlights of Third Quarter 2016:
-
Unit deliveries of 33, generating homebuilding revenue of $12.9
million for the three months ended September 30, 2016 compared to unit
deliveries of 24 generating $12.0 million of homebuilding revenue for
the same period in 2015;
-
Unit deliveries of 76, generating homebuilding revenue of $32.1
million for the nine months ended September 30, 2016 compared to unit
deliveries of 70 generating $34.2 million of homebuilding revenue for
the same period in 2015;
-
Controlled community count and open community count of 15 and 12,
respectively, at September 30, 2016 compared to 19 and 10,
respectively at September 30, 2015;
-
Comstock has begun development and sales of three new projects in
Virginia, Maryland, and Washington, D.C. during recent months, which
collectively represent more than $52 million of potential future
revenues;
-
During the Quarter, the Company completed its most recent private
placement offering, Comstock Investors X, L.C., providing $14.5
million of new capital at a fixed preferred return of 6%. This capital
will be utilized in connection with the development of certain
projects scheduled to begin generating revenue in 2017.
-
The Company recognized impairment recoveries of $0.7 million, related
to the recovery of previously written off land contract deposits, and
write-offs of $0.8 million, related to deposits and entitlement costs
determined to be non-recoverable, in the three and nine-months ended
September 30, 2016.
Chairman and CEO, Christopher Clemente commented, "Our effort to reduce
operating costs over the past few years has substantially rationalized
overhead expenses. During the three month period ended September 30,
2016, our fixed operating costs decreased $0.6 million (33%) as compared
to the same period in 2015 and for the nine months ending September 30,
2016, our fixed operating costs decreased $1.5 million (27%) as compared
to the same period in 2015. These efforts together with the lower cost
of capital provided through recent private placement offerings, position
Comstock to enhance results in future periods."
COMSTOCK COMMUNITIES NOW OPEN
Comstock currently has 12 communities open for sale in Virginia,
Maryland, and Washington, D.C., priced from the high $200s to the $900s.
For further details on the open communities, see the attached Pipeline
Report as of September 30, 2016 and the Form 10-Q filed by the company
on November 14, 2016 or visit www.ComstockHomes.com.
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 through
its wholly owned subsidiary, Comstock Homes of Washington, LC. Our track
record of developing numerous successful new home communities more than
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, 2015. 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)
|
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|
|
|
|
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|
|
|
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September 30,
2016
|
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December 31,
2015
|
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|
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(unaudited)
|
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|
|
|
ASSETS
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
2,464
|
|
|
|
$
|
12,448
|
|
|
Restricted cash
|
|
|
|
2,556
|
|
|
|
|
2,566
|
|
|
Trade receivables
|
|
|
|
514
|
|
|
|
|
332
|
|
|
Real estate inventories
|
|
|
|
48,189
|
|
|
|
|
38,223
|
|
|
Fixed assets, net
|
|
|
|
282
|
|
|
|
|
394
|
|
|
Other assets, net
|
|
|
|
2,570
|
|
|
|
|
4,515
|
|
|
TOTAL ASSETS
|
|
|
$
|
56,575
|
|
|
|
$
|
58,478
|
|
|
|
|
|
|
|
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|
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LIABILITIES AND STOCKHOLDERS' EQUITY
|
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|
|
|
|
|
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Accounts payable and accrued liabilities
|
|
|
$
|
12,155
|
|
|
|
$
|
7,638
|
|
|
Notes payable - secured by real estate inventories
|
|
|
|
24,848
|
|
|
|
|
24,823
|
|
|
Notes payable - due to affiliates, unsecured, net of discount
|
|
|
|
15,763
|
|
|
|
|
19,028
|
|
|
Notes payable - unsecured
|
|
|
|
1,161
|
|
|
|
|
1,548
|
|
|
Income taxes payable
|
|
|
|
21
|
|
|
|
|
-
|
|
|
TOTAL LIABILITIES
|
|
|
|
53,948
|
|
|
|
|
53,037
|
|
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|
|
|
|
|
|
|
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Commitments and contingencies
|
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|
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STOCKHOLDERS' EQUITY (DEFICIT)
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Preferred stock $0.01 par value, 824,058 and 772,210 shares issued
|
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|
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and liquidation preference of $4,120 and $3,861 at
|
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|
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|
|
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September 30, 2016 and December 31, 2015, respectively
|
|
|
$
|
1,252
|
|
|
|
$
|
1,174
|
|
|
Class A common stock, $0.01 par value, 11,038,071 shares
authorized, 3,028,225
|
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|
|
|
and 2,997,437 issued, and outstanding, respectively
|
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|
|
30
|
|
|
|
|
30
|
|
|
Class B common stock, $0.01 par value, 390,500 shares authorized,
issued, and outstanding
|
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|
|
4
|
|
|
|
|
4
|
|
|
Additional paid-in capital
|
|
|
|
176,078
|
|
|
|
|
175,963
|
|
|
Treasury stock, at cost (85,570 shares Class A common stock)
|
|
|
|
(2,662
|
)
|
|
|
|
(2,662
|
)
|
|
Accumulated deficit
|
|
|
|
(180,464
|
)
|
|
|
|
(175,785
|
)
|
|
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT
|
|
|
|
(5,762
|
)
|
|
|
|
(1,276
|
)
|
|
Non-controlling interests
|
|
|
|
8,389
|
|
|
|
|
6,717
|
|
|
TOTAL EQUITY
|
|
|
|
2,627
|
|
|
|
|
5,441
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
56,575
|
|
|
|
$
|
58,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
(Amounts in thousands, except per share data)
|
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|
|
|
|
|
|
|
|
|
|
|
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|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
Revenue—homebuilding
|
|
|
$
|
12,880
|
|
|
$
|
12,043
|
|
|
$
|
32,102
|
|
|
$
|
34,168
|
|
|
Revenue—other
|
|
|
|
223
|
|
|
|
245
|
|
|
|
685
|
|
|
|
1,001
|
|
|
Total revenue
|
|
|
|
13,103
|
|
|
|
12,288
|
|
|
|
32,787
|
|
|
|
35,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
Cost of sales—homebuilding
|
|
|
|
11,985
|
|
|
|
10,749
|
|
|
|
29,815
|
|
|
|
29,933
|
|
|
Cost of sales—other
|
|
|
|
85
|
|
|
|
103
|
|
|
|
329
|
|
|
|
456
|
|
|
Impairment charges and recovery, net
|
|
|
|
91
|
|
|
|
-
|
|
|
|
91
|
|
|
|
-
|
|
|
Sales and marketing
|
|
|
|
427
|
|
|
|
498
|
|
|
|
1,313
|
|
|
|
1,412
|
|
|
General and administrative
|
|
|
|
1,236
|
|
|
|
1,853
|
|
|
|
4,151
|
|
|
|
5,686
|
|
|
Interest and real estate tax expense
|
|
|
|
133
|
|
|
|
100
|
|
|
|
655
|
|
|
|
426
|
|
|
Operating loss
|
|
|
|
(854
|
)
|
|
|
(1,015
|
)
|
|
|
(3,567
|
)
|
|
|
(2,744
|
)
|
|
Other income, net
|
|
|
|
98
|
|
|
|
28
|
|
|
|
119
|
|
|
|
802
|
|
|
Loss before income tax expense
|
|
|
|
(756
|
)
|
|
|
(987
|
)
|
|
|
(3,448
|
)
|
|
|
(1,942
|
)
|
|
Income tax expense
|
|
|
|
-
|
|
|
|
(36
|
)
|
|
|
(57
|
)
|
|
|
(23
|
)
|
|
Net loss
|
|
|
|
(756
|
)
|
|
|
(1,023
|
)
|
|
|
(3,505
|
)
|
|
|
(1,965
|
)
|
|
Net income attributable to non-controlling interests
|
|
|
|
290
|
|
|
|
68
|
|
|
|
1,174
|
|
|
|
877
|
|
|
Net loss attributable to Comstock Holding Companies, Inc. |
|
|
|
(1,046
|
)
|
|
|
(1,091
|
)
|
|
|
(4,679
|
)
|
|
|
(2,842
|
)
|
|
Paid-in-kind dividends on Series B Preferred Stock
|
|
|
|
87
|
|
|
|
-
|
|
|
|
259
|
|
|
|
-
|
|
|
Net loss attributable to common stockholders
|
|
|
$
|
(1,133
|
)
|
|
$
|
(1,091
|
)
|
|
$
|
(4,938
|
)
|
|
$
|
(2,842
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per share
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.33
|
)
|
|
$
|
(1.49
|
)
|
|
$
|
(0.90
|
)
|
|
Diluted net loss per share
|
|
|
$
|
(0.34
|
)
|
|
$
|
(0.33
|
)
|
|
$
|
(1.49
|
)
|
|
$
|
(0.90
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares outstanding
|
|
|
|
3,326
|
|
|
|
3,284
|
|
|
|
3,317
|
|
|
|
3,166
|
|
|
Diluted weighted average shares outstanding
|
|
|
|
3,326
|
|
|
|
3,284
|
|
|
|
3,317
|
|
|
|
3,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pipeline Report as of September 30, 2016
|
|
|
Project
|
|
|
State
|
|
Product
Type (1)
|
|
Estimated
Units at
Completion
|
|
Units
Settled
|
|
Backlog (8)
|
|
Units
Owned
Unsold
|
|
Units Under
Control (2)
|
|
Total Units
Owned,
Unsettled and
Under Control
|
|
Average
New Order
Revenue Per
Unit to Date
|
|
|
City Homes at the Hampshires
|
|
|
DC
|
|
SF
|
|
38
|
|
38
|
|
-
|
|
-
|
|
-
|
|
-
|
|
$
|
|
747
|
|
|
Townes at the Hampshires (3)
|
|
|
DC
|
|
TH
|
|
73
|
|
73
|
|
-
|
|
-
|
|
-
|
|
-
|
|
$
|
|
551
|
|
|
Estates at Falls Grove |
|
|
VA |
|
SF
|
|
19
|
|
16
|
|
2
|
|
1
|
|
-
|
|
3
|
|
$
|
|
543
|
|
|
Townes at Falls Grove |
|
|
VA |
|
TH
|
|
110
|
|
78
|
|
3
|
|
29
|
|
-
|
|
32
|
|
$
|
|
301
|
|
|
Townes at Shady Grove Metro
|
|
|
MD
|
|
TH
|
|
36
|
|
26
|
|
-
|
|
10
|
|
-
|
|
10
|
|
$
|
|
626
|
|
|
Townes at Shady Grove Metro (4)
|
|
|
MD
|
|
SF
|
|
3
|
|
3
|
|
-
|
|
-
|
|
-
|
|
-
|
|
$
|
|
199
|
|
|
Momentum | Shady Grove Metro (5)
|
|
|
MD
|
|
Condo
|
|
110
|
|
-
|
|
-
|
|
110
|
|
-
|
|
110
|
|
$
|
|
-
|
|
|
Estates at Emerald Farms |
|
|
MD
|
|
SF
|
|
84
|
|
78
|
|
5
|
|
1
|
|
-
|
|
6
|
|
$
|
|
431
|
|
|
Townes at Maxwell Square |
|
|
MD
|
|
TH
|
|
45
|
|
45
|
|
-
|
|
-
|
|
-
|
|
-
|
|
$
|
|
421
|
|
|
Townes at Hallcrest
|
|
|
VA |
|
TH
|
|
42
|
|
27
|
|
13
|
|
2
|
|
-
|
|
15
|
|
$
|
|
463
|
|
|
Estates at Leeland
|
|
|
VA |
|
SF
|
|
24
|
|
2
|
|
8
|
|
14
|
|
-
|
|
22
|
|
$
|
|
460
|
|
|
Villas | Preserve at Two Rivers 28'
|
|
|
MD
|
|
TH
|
|
6
|
|
4
|
|
1
|
|
1
|
|
-
|
|
2
|
|
$
|
|
454
|
|
|
Villas | Preserve at Two Rivers 32'
|
|
|
MD
|
|
TH
|
|
10
|
|
9
|
|
1
|
|
-
|
|
-
|
|
1
|
|
$
|
|
507
|
|
|
Marrwood East (7)
|
|
|
VA |
|
SF
|
|
35
|
|
-
|
|
2
|
|
33
|
|
-
|
|
35
|
|
$
|
|
637
|
|
|
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
|
|
$
|
|
-
|
|
|
The Towns at 1333
|
|
|
VA |
|
TH
|
|
18
|
|
-
|
|
-
|
|
18
|
|
-
|
|
18
|
|
$
|
|
-
|
|
|
The Woods at Spring Ridge |
|
|
MD
|
|
SF
|
|
21
|
|
-
|
|
-
|
|
21
|
|
-
|
|
21
|
|
$
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
872
|
|
399
|
|
35
|
|
280
|
|
158
|
|
473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1) "SF" means single family home, "TH" means townhouse, "Condo"
means condominium, "MF" means multi-family.
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(2) Under land option purchase contract, not owned.
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(3) 3 of these units are subject to statutory affordable dwelling
unit program.
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(4) Units are subject to statutory moderately priced dwelling unit
program; not considered a separate community.
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(5) 18 of these units are subject to statutory moderately priced
dwelling unit program.
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(6) 5 of these units are subject to statutory affordable dwelling
unit program.
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(7) 1 of these units is subject to statutory affordable dwelling
unit program.
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(8) "Backlog" means we have an executed order with a buyer but the
settlement did not occur prior to report date.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20161114006647/en/
Company:
Comstock Holding Companies, Inc.
Christopher Conover,
703-230-1985
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