Comstock Homebuilding Companies, Inc. Reports Record Net Income for First Quarter of 2005
May 03 2005 - 5:05PM
PR Newswire (US)
Comstock Homebuilding Companies, Inc. Reports Record Net Income for
First Quarter of 2005 EPS Guidance for 2005 Increased Based on
Continued Strong Demand for New Homes in the Greater Washington, DC
Region RESTON, Va., May 3 /PRNewswire-FirstCall/ -- Comstock
Homebuilding Companies, Inc. (NASDAQ:CHCI) ("Comstock" or the
"Company") today announced earnings for its first quarter ended
March 31, 2005 and provided quarter-by- quarter guidance for the
year. The Company noted the continued strength of demand for new
homes in its core market, the Greater Washington, DC region, as an
explanation of why first quarter EPS exceeded analyst expectations
by $0.10 per share, and the Company raised guidance to $2.85 to
$2.94 for the full year. The Company will conduct a conference call
for interested investors on Tuesday, May 3, 2005, at 5:00 PM
Eastern Standard Time. During the call the Company will discuss the
financial results and earnings guidance detailed in this release.
The dial-in number for the conference call is 866-761-0749 and the
access code is 13645429; the call may also be accessed on the
Internet at http://www.comstockhomebuilding.com/ in the Investor
Relations section. Highlights of Financial Results: * The Company
generated basic earnings per share of $0.33 on a weighted average
shares outstanding of 11.6 million and diluted earnings per share
of $0.32 on a weighted average shares outstanding of 11.8 million;
* Total revenue for the first quarter was $28.7 million with $28.5
million of total revenue derived from homebuilding, as compared to
total revenue of $17.9 million for the three months ended March 31,
2004 with $15.1 million of total revenue derived from homebuilding;
* The Company delivered 78 new homes in the first quarter at an
average per unit revenue of $365,000 as compared to 46 new homes at
an average per unit revenue of $329,050 during the three months
ended March 31, 2004; * Gross profit was $11.1 million for the
first quarter and operating income was $6.1 million representing a
38.7% gross margin and a 21.1% operating margin as compared to
30.3% and 17.4% respective gross and operating margins for the
three months ended March 31, 2004; * The contract value of new
orders (net of cancellations) for the first quarter was $103.3
million on 246 new orders representing a 119.2% increase in the
contract value of the new orders and an 86.4% increase in new
orders as compared to the three months ended March 31, 2004; *
Backlog at March 31, 2005 was 615 units representing future revenue
of $248.2 million of which $105.3 million is expected to deliver
before December 31, 2005. Of the $248.2 million of backlog, $138.6
million was related to the Company's Eclipse at Potomac Yard
project where settlements will begin in the second half of 2006.
Guidance for the Quarters and Full Year 2005: During the Company's
investor conference call, expectations for 2005 quarterly and full
year results will be discussed in detail for the first time by the
Company. * The Company expects that total revenue for the year
ending December 31, 2005 will be between $265 million -- $275
million with estimated earnings of $2.85 -- $2.94 per share
(diluted) based on an estimated weighted average shares outstanding
of 11.9 million; * The Company is increasing full year 2005
guidance and is, for the first time, introducing detailed quarterly
guidance as follows: Diluted earnings per share estimates Current
Range Q1 $0.32 $0.32 Q2 $0.22 to $0.25 estimated Q3 $0.92 to $0.95
estimated Q4 $1.39 to $1.42 estimated 2005 $2.85 to $2.94 estimated
Previous $2.15 to $2.20 * Based on current backlog and land
inventory, the Company estimates that it will generate total
revenue in 2006 of between $400 million and $425 million. * Like
many of its peers, the Company has experienced delays in obtaining
permits on certain projects as a result of the adoption of a new
building code throughout the country, causing a shift of revenue
from the second quarter into the third and fourth quarters of 2005.
Management noted that no additional delays are anticipated as a
result of these building code changes. "Comstock is executing the
growth plan we detailed in our IPO road show last December," said
Christopher Clemente, Chairman and Chief Executive Officer. "This
growth is in keeping with the strategic 5 year plan we commenced in
2003 that projects annual revenues reaching $500 million. During
the first quarter we continued working to secure some of the best
opportunities in our markets (Washington, DC and Raleigh, NC) and
we put a significant amount of our new capital to work by closing
on over $100 million of new developments throughout the Northern
Virginia suburbs. As demonstrated by our growing backlog, demand
for our homes remains strong. We see this demand continuing
throughout the year. Our most recent project opening, Penderbrook,
in Fairfax, Virginia, experienced overwhelming demand in April.
Comstock continues to benefit from the tremendous job growth in its
core market, the Greater Washington, DC area." About Comstock
Homebuilding Companies, Inc. Comstock is a production homebuilder
that develops, builds, and markets single-family homes, townhouses,
and condominiums. The Company currently operates in the Washington,
D.C. and Raleigh, North Carolina markets where it targets a diverse
range of buyers, including first-time, early move-up, secondary
move-up, empty nester move-down and active adult home buyers. For
more information on Comstock, please visit
http://www.comstockhomebuilding.com/. Cautionary Statement
Regarding Forward-Looking Statements This release contains
"forward-looking" statements that are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Reform Act
of 1995. Statements that are predictive in nature, that depend upon
or refer to future events or conditions, or that include words such
as "may," "will," "expects," "projects," "anticipates,"
"estimates," "believes," "intends," "plans," "should," "seeks," and
similar expressions, including statements related to Comstock's
expected future financial results and anticipated growth in the
Washington, D.C. housing market, are forward-looking statements.
Forward-looking statements involve known and unknown risks and
uncertainties that may cause actual future results to differ
materially from those projected or contemplated in the
forward-looking statements. These risks and uncertainties include,
but are not limited to, economic, market and competitive conditions
affecting Comstock and its operations and products, risks and
uncertainties relating to the market for real estate generally and
in the areas where Comstock has projects, the availability and
price of land suitable for development, materials prices, labor
costs, interest rates, Comstock's ability to service its
significant debt obligations, fluctuations in operating results,
anticipated growth strategies, continuing relationships with
affiliates, environmental factors, government regulations, the
impact of adverse weather conditions or natural disasters and acts
of war or terrorism. Additional information concerning these and
other important risks and uncertainties can be found under the
heading "Risk Factors" in the prospectus from Comstock's initial
public offering, as filed with the Securities and Exchange
Commission on December 15, 2004. Comstock specifically disclaims
any obligation to update or revise any forward-looking statements,
whether as a result of new information, future developments or
otherwise. Financial Results COMSTOCK HOMEBUILDING COMPANIES, INC.
Three months ended March 31, (Amounts in thousands, excpet share
data) 2004 2005 (unaudited) Revenues Sale of real estate-Homes
$15,136 $28,465 Other revenue 2,745 264 Total revenue 17,881 28,729
Expenses Cost of sales of real estate 10,313 17,591 Cost of sales
of other 2,148 11 Selling, general and administrative 2,310 5,052
Operating income 3,110 6,075 Other (income) expense, net 184 (36)
Income before minority interest and equity in earnings of real
estate partnerships 2,926 6,111 Minority interest 848 1 Income
before equity in earnings of real estate partnerships 2,078 6,110
Equity in earnings of real estate partnerships 28 30 Total pre tax
income 2,106 6,140 Income Taxes 2,331 Net Income $2,106 $3,809
Basic earnings per share 592 0.33 Basic weighted average shares
outstanding 3,558 11,620,667 Dilutive earnings per share 592 0.32
Dilutive weighted average shares outstanding 3,558 11,768,817
Proforma basic EPS as adjusted for tax and the Company's initial
public offering 0.11 n/a Proforma dilutive EPS as adjusted for tax
and the Company's initial public offering 0.11 n/a Select Balance
Sheet Data March 31, March 31, (Amounts in thousands) 2004 2005
(unaudited) Cash and cash equivalents $18,699 $47,957 Real estate
held for development & sale 73,586 211,303 Inventory not owned
- variable interest entities - 33,547 Total assets 97,906 299,281
Notes payable-homebuilding 63,005 152,016 Shareholders' equity
7,831 66,570 DATASOURCE: Comstock Homebuilding Companies, Inc.
CONTACT: Al Black, +1-703-744-7833, or , for Comstock Homebuilding
Companies, Inc. Web site: http://www.comstockhomebuilding.com/
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