Comstock Homebuilding Companies, Inc. Reports $0.26 Earnings Per
Share for Second Quarter of 2005 Company Raises Guidance as It
Continues to Experience Strong Demand for Housing in Its Core
Market of the Greater Washington DC Area RESTON, Va., Aug. 1
/PRNewswire-FirstCall/ -- Comstock Homebuilding Companies, Inc.
(NASDAQ:CHCI) ("Comstock" or the "Company") today announced for its
second quarter ended June 30, 2005 it earned $0.26 per share (basic
and diluted) on total revenue of $39.9 million, exceeding its
previously announced expectations for the second quarter of $0.22
to $0.25 per share. The Company, which executed its initial public
offering of stock in December 2004, announced that on a comparable
basis, adjusted for current quarter tax rates and share counts, pro
forma earnings for the same quarter of 2004 would have been $0.16
per share on both a basic and diluted basis. The Company raised its
previously issued guidance for the full year from a range of $2.62
to $2.71 to a range of $2.68 to $2.73. The Company will conduct a
conference call for interested investors on Monday, August 1, 2005,
at 4:45 PM Eastern Daylight 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
800-295-4740 and the access code is 76720796; the call may also be
accessed on the Internet at http://www.comstockhomebuilding.com/ in
the Investor Relations section. "This was an exciting quarter for
us at Comstock," said Christopher Clemente, Chairman and CEO. "We
were successful in raising an additional $56 million of capital to
accelerate our growth, we added demographically diverse land
positions to our inventory, we delivered on the commitments we made
to our investors, and we realized a 28 percent increase of revenue
for the same quarter last year. Demand for affordable new homes in
our core market, the Greater Washington, DC region, is still strong
and our land inventory remains well aligned with the homeownership
trends in the market." Highlights of Financial Results -- Three
months ended June 30, 2005: * The Company generated basic earnings
per share for the second quarter of $0.26 on a weighted average
shares outstanding of 11.8 million and diluted earnings per share
of $0.26 on a weighted average shares outstanding of 12.0 million;
* Total revenue for the second quarter was $39.9 million with $39.6
million of revenue derived from homebuilding, compared to total
revenue of $31.1 million for the three months ended June 30, 2004
with $29.1 million of revenue derived from homebuilding. This
represents a 36% increase in revenue from homebuilding; * The
Company delivered 123 new homes in the second quarter at an average
per unit revenue of approximately $322,000 as compared to 88 new
homes at an average per unit revenue of $331,000 during the three
months ended June 30, 2004. This reduction in average per unit
revenue was a direct result of the Company's mix of delivered units
with 74 of the second quarter 2005 settlements coming from the
Company's new Penderbrook project where average revenue per
settlement was $249,000; * Gross profit was $10.2 million for the
second quarter and operating income was $4.6 million representing a
25.7% gross margin and an 11.6% operating margin compared to 29.4%
and 15.0% respective gross and operating margins for the three
months ended June 30, 2004. Exclusive of Penderbrook, the Company's
gross profit on the balance of revenue for the second quarter was
$7.3 million representing a gross margin of 34.6%; * The contract
value of new orders (net of cancellations) for the second quarter
was $59.2 million on 160 new orders representing a 127.0% increase
in the contract value of new orders and an 125.4% increase in new
orders as compared to the three months ended June 30, 2004.
Highlights of Financial Results -- Six months ended June 30, 2005:
* The Company generated basic earnings per share for the six months
ended June 30, 2005 of $0.59 on a weighted average shares
outstanding of 11.7 million and diluted earnings per share of $0.58
on a weighted average shares outstanding of 11.9 million; * Total
revenue for the six months ended June 30, 2005 was $68.6 million
with $68.1 million of revenue derived from homebuilding, compared
to total revenue of $49.0 million for the six months ended June 30,
2004 with $44.3 million of revenue derived from homebuilding; * The
Company delivered 201 new homes in the six months ended June 30,
2005 at an average per unit revenue of approximately $339,000 as
compared to 134 new homes at an average per unit revenue of
$330,000 during the six months ended June 30, 3004; * Gross profit
was $21.4 million for the six months ended June 30, 2005 and
operating income was $10.7 million representing a 31.1% gross
margin and a 15.6% operating margin compared to 29.7% and 15.6%
respective gross and operating margins for the six months ended
June 30, 2004. Exclusive of Penderbrook, the Company's gross profit
on the balance of it revenue for the six months ended June 30, 2005
was $18.2 million representing a gross margin of 36.7%; * The
contract value of new orders (net of cancellations) for the six
months ended June 30, 2005 was $165.0 million on 416 new orders
representing a 125.6% increase in the contract value of new orders
and a 104.9% increase in new orders as compared to the six months
ended June 30, 2004; * Backlog revenue at June 30, 2005 was $268.6
million of which $146.2 million was related to the Company's
Eclipse at Potomac Yard project where settlements will begin in the
second half of 2006. Guidance for Full Year 2005: During the
Company's investor conference call, expectations for 2005 results
will be discussed in detail by the Company. * The Company raised
its 2005 earnings guidance slightly stating that it expects to
deliver approximately 715 homes and generate full year earnings,
adjusted for the dilution of its follow-on offering, in the range
of $2.68 to $2.73 per share (diluted) based on an estimated
weighted average shares outstanding of approximately 13.0 million
-- previous guidance had been a range of $2.62 to $2.71, also
diluted for the follow-on offering. About Comstock Homebuilding
Companies, Inc. Comstock is a production homebuilder and real
estate developer that develops, builds, and markets single-family
homes, townhouses, mid-rise condominiums and high-rise
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.
(Amounts in thousands, except share data) Three Months Ended Six
Months Ended June 30, June 30, 2005 2004 2005 2004 Predecessor
Predecessor Revenues Sale of real estate -- Homes $ 39,599 $ 29,118
$ 68,064 $ 44,254 Other revenue 312 1,983 576 4,728 Total revenue
39,911 31,101 68,640 48,982 Expenses Cost of sales of real estate
29,658 20,455 47,249 30,768 Cost of sales of other 9 1,498 20 3,646
Selling, general and administrative 5,608 4,479 10,660 6,910
Operating income 4,636 4,669 10,711 7,658 Other (income) expense,
net (154) (3) (190) 60 Income before minority interest and equity
in earnings of real estate partnerships 4,790 4,672 10,901 7,598
Minority interest 7 1,700 8 2,548 Income before equity in earnings
of real estate partnerships 4,783 2,972 10,893 5,050 Equity in
earnings of real estate partnerships 4 30 34 58 Total pre tax
income 4,787 3,002 10,927 5,108 Income Taxes 1721 - 4,052 - Net
Income $ 3,066 $ 3,002 $ 6,875 $ 5,108 Basic earnings per share
0.26 0.42 0.59 0.72 Basic weighted average shares outstanding
11,831 7,067 11,727 7,067 Diluted earnings per share 0.26 0.42 0.58
0.72 Diluted weighted average shares outstanding 11,993 7,067
11,882 7,067 Pro forma as adjusted for tax and share count Net
Income 1,923 3,214 Basic earnings per share 0.16 0.27 Diluted
earnings per share 0.16 0.27 DATASOURCE: Comstock Homebuilding
Companies, Inc. CONTACT: Carrie Blewitt, +1-202-448-3129, , for
Comstock Homebuilding Companies, Inc. Web site:
http://www.comstockhomebuilding.com/
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