Comstock Holding Companies, Inc., (NASDAQ: CHCI), announced
results for the first three and six months ended June 30, 2016:
Highlights of Second Quarter 2016:
- Backlog at June 30, 2016 of 50 units
valued at $21.5 million, compared to 43 units valued at $22.3
million at June 30, 2015;
- Unit deliveries of 21, generating
homebuilding revenue of $9.7 million for the three months ended
June 30, 2016 compared to unit deliveries of 25 generating $12.1
million of homebuilding revenue for the same period in 2015;
- Controlled community count and open
community count of 17 and 10, respectively, at June 30, 2016
compared to 19 and 10, respectively at June 30, 2015;
- Comstock is preparing to commence sales
and development of five new communities located in Virginia,
Maryland, and Washington, DC, and
- Subsequent to the quarter end, the
Company completed Comstock Investors X, L.C. a private placement
offering of $14.0 million to provide capital for certain projects
scheduled to commence in the second half of 2016.
Chairman and CEO, Christopher Clemente commented, “Our second
quarter and first half results are in line with our expectations
for early 2016. Our focus continues to be increasing revenue while
reducing fixed operating costs. Our efforts in this regard over the
past two years has substantially rationalized overhead expenses.
The result of our cost reduction efforts resulted in reductions of
fixed operating costs of 29% in the second quarter of this year and
24% year-to-date, as compared to a year ago. We expect this trend
to continue with general and administrative costs for full year
2016, expecting at least a 25% reduction, as compared to 2015. We
believe that our reduced cost structure coupled with the typical
revenue increase that we experience in the second half of each
calendar year will contribute towards our effort to generate
positive results in the near future."
COMSTOCK COMMUNITIES NOW OPEN
Comstock currently has 10 communities open for sale in Virginia
and Maryland, including townhomes, condominiums, single-family
homes and villas priced from the high $200s to the $500s. Four
additional communities are scheduled to open during the second half
of 2016, with prices ranging from high $300s to high $800s. For
further details on the open communities, see the attached Pipeline
Report as of June 30, 2016 and the Form 10-Q filed by the company
on August 15, 2016 or visit www.ComstockHomes.com.
COMSTOCK COMMUNITIES COMING SOON
Comstock has seven new communities in various stages of planning
and development. The new communities, located in Maryland, Virginia
and Washington, DC, include townhomes, single-family homes and
multi-family units. Comstock plans to open five of these
communities before year-end 2016, with the balance of them expected
to open before the end of 2017. The communities opening in
mid-to-late 2016 include:
- The Townes at 1333 (Old Town
Alexandria, VA) – townhomes priced from the high $800s.
- Townes at Totten Mews (Washington, DC)
– townhomes priced from the high $500s.
- Marwood East (Loudoun County, VA) –
single family homes priced from the high $500s.
- Estates at Emerald Farm, final section
(Frederick, MD) – single family homes priced from the high
$300s.
- Woods at Stone Ridge (Frederick, MD) –
single family homes priced from the upper $500s.
For further details on the communities in planning, see the
attached Pipeline Report as of June 30, 2016 and the Form 10-Q
filed by the company on August 15, 2016.
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 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, 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.
COMSTOCK HOLDING COMPANIES, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in
thousands, except share and per share data)
June 30,2016
December 31,2015
(unaudited)
ASSETS Cash and cash equivalents $ 3,377 $
12,448 Restricted cash 2,763 2,566 Trade receivables 1,102 332 Real
estate inventories 34,914 38,223 Fixed assets, net 291 394 Other
assets, net 4,892 4,515 TOTAL ASSETS $
47,339 $ 58,478
LIABILITIES AND
STOCKHOLDERS’ EQUITY Accounts payable and accrued liabilities $
8,398 $ 7,638 Notes payable - secured by real estate inventories
21,846 24,823 Notes payable - due to affiliates, unsecured, net of
discount 15,692 19,028 Notes payable - unsecured 1,336 1,548 Income
taxes payable 21 - TOTAL LIABILITIES
47,293 53,037 Commitments and
contingencies STOCKHOLDERS’ EQUITY (DEFICIT) Preferred stock $0.01
par value, 806,647 and 772,210 shares issued and liquidation
preference of $4,033 and $3,861 at June 30, 2016 and December 31,
2015, respectively $ 1,226 $ 1,174
Class A common stock, $0.01 par value,
11,038,071 shares authorized, 3,020,810
and 2,997,437 issued, and outstanding, respectively 30 30 Class B
common stock, $0.01 par value, 390,500 shares authorized, issued,
and outstanding 4 4 Additional paid-in capital 175,982 175,963
Treasury stock, at cost (85,570 shares Class A common stock) (2,662
) (2,662 ) Accumulated deficit (179,418 ) (175,785 )
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT (4,838 ) (1,276 )
Non-controlling interests 4,884 6,717
TOTAL EQUITY 46 5,441 TOTAL LIABILITIES
AND STOCKHOLDERS’ EQUITY $ 47,339 $ 58,478
COMSTOCK
HOLDING COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENT OF OPERATIONS (Amounts in thousands, except per
share data) Three Months Ended June 30, Six
Months Ended June 30, 2016
2015 2016 2015
(unaudited) (unaudited) (unaudited) (unaudited) Revenues
Revenue—homebuilding $ 9,699 $ 12,115 $ 19,222 $ 22,125
Revenue—other 279 449 462
756 Total revenue 9,978 12,564 19,684 22,881
Expenses Cost of sales—homebuilding 9,185 10,594 17,830 19,184 Cost
of sales—other 153 188 244 353 Sales and marketing 403 489 886 914
General and administrative 1,373 1,936 2,915 3,833 Interest and
real estate tax expense 306 156
522 326 Operating loss (1,442 ) (799 ) (2,713
) (1,729 ) Other income, net 13 582
21 774
Loss before income tax expense
(1,429 ) (217 ) (2,692 ) (955 ) Income tax (expense) benefit
(32 ) (57 ) (57 ) 13 Net loss (1,461 )
(274 ) (2,749 ) (942 ) Net income attributable to non-controlling
interests 448 534 884
809 Net loss attributable to Comstock Holding
Companies, Inc. (1,909 ) (808 ) (3,633 ) (1,751 ) Paid-in-kind
dividends on Series B Preferred Stock 86 -
172 - Net loss attributable to
common stockholders $ (1,995 ) $ (808 ) $ (3,805 ) $ (1,751 )
Basic net loss per share $ (0.60 ) $ (0.25 ) $ (1.15 ) $
(0.57 ) Diluted net loss per share $ (0.60 ) $ (0.25 ) $ (1.15 ) $
(0.57 ) Basic weighted average shares outstanding 3,319
3,173 3,312 3,077 Diluted weighted average shares outstanding 3,319
3,173 3,312 3,077
Pipeline Report as of
June 30, 2016 Project State
ProductType (1)
EstimatedUnits atCompletion
UnitsSettled
Backlog (8)
UnitsOwnedUnsold
UnitsUnderControl (2)
Total UnitsOwned,Unsettled andUnder
Control
AverageNew OrderRevenue PerUnit to
Date
City Homes at the Hampshires DC SF 38
38 - - - - $ 728 Townes at the Hampshires (3) DC TH
73 73 - - - - $ 551 Estates at Falls Grove VA SF 19 13 5 1 - 6 $
544 Townes at Falls Grove VA TH 110 62 12 36 - 48 $ 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
4 2 - 6 $ 413 Townes at Maxwell Square MD TH 45 41 4 - - 4 $ 421
Townes at Hallcrest VA TH 42 18 16 8 - 24 $ 458 Estates at Leeland
VA SF 24 2 6 16 - 22 $ 450 Villas | Preserve at Two Rivers 28' MD
TH 10 4 2 4 - 6 $ 450 Villas | Preserve at Two Rivers 32' MD TH 10
8 - 2 - 2 $ 505 Marrwood East (7) VA SF 35 - 1 34 - 35 $ 591
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 $ - The Towns at 1333 VA TH 18 - - - 18 18 $ - The Woods at
Spring Ridge MD SF 24 - -
- 24 24 $ -
Total
891 366 50
223 252 525
(1) "SF" means single family home, "TH"
means townhouse, "Condo" means condominium, "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; not considered a separate community. (5) 18
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/20160815006233/en/
Company:Comstock Holding Companies, Inc.Christopher
Conover, 703-230-1985Chief Financial OfficerorInvestor
Relations:LHAJody Burfening / Harriet Fried,
212-838-3777hfried@lhai.com
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