Company Reports Record Revenue and Diluted Earnings Per Share of
$1.45 for the Nine Months Ended September 30, 2005 RESTON, Va.,
Nov. 7 /PRNewswire-FirstCall/ -- Comstock Homebuilding Companies,
Inc. (NASDAQ:CHCI) ("Comstock or the "Company") today announced
third quarter earnings for the three months ended September 30,
2005 of $0.82 per share (basic) and $0.81 (diluted) on total
revenue of $78.4 million, exceeding previously issued guidance for
the third quarter of $0.80 diluted earnings per share. The Company,
which executed an initial public offering of stock in December
2004, announced that on a comparable basis, adjusted for the
current quarter's tax rate and share counts, pro forma earnings for
the three months ended September 30, 2004 were $0.25 per share
(basic) and $0.24 (diluted). For the nine months ended September
30, 2005 the Company reported earnings per share of $1.47 (basic)
and $1.45 (diluted). On a pro forma basis, adjusted for tax rates
and share counts, earnings per share for the nine months ended
September 30, 2004 were $0.53 (basic) and $0.52 (diluted). The
Company will conduct a conference call for interested investors on
Monday, November 7, 2005, at 4:45 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 800-299-8538 and the access code is
89191233; the call may also be accessed on the Internet at
http://www.comstockhomebuilding.com/ in the Investor Relations
section. Highlights of Financial Results - Three months ended
September 30, 2005: * The Company generated basic earnings per
share for the quarter of $0.82 on shares outstanding of 14.0
million and diluted earnings per share of $0.81 on shares
outstanding of 14.2 million; * Total revenue for the quarter was
$78.4 million with $72.4 million of revenue derived from
homebuilding, as compared to total revenue of $25.8 million for the
three months ended September 30, 2004 with $23.4 million of revenue
derived from homebuilding. This represents a 204% increase in total
revenue and a 210% increase in revenue from homebuilding; * The
Company delivered 202 new homes in the quarter at an average per
unit revenue of approximately $358,000 as compared to 74 new homes
at an average per unit revenue of $316,000 during the three months
ended September 30, 2004; * Gross profit from all revenue was $24.5
million for the quarter representing a 31.2% gross margin. Gross
profit from condominium conversions was $3.4 million representing
gross margin of 13.7%. Exclusive of condominium conversions gross
profit for the quarter was $21.1 million representing a gross
margin of 39.2%. Gross profit for the three months ended September
30, 2004, during which there was no condominium conversion revenue,
was $10.2 million representing a 39.3% gross margin; * The Company
sold 19 lots at its Woodlands of Round Hill project (previously
known as the Hamlets of Blue Ridge) contributing to $6.0 million of
other revenue and a 48.3% gross margin from other revenue; *
Operating income was $17.9 million for the quarter representing a
22.8% operating margin as compared to operating income of $7.5
million and an operating margin of 29.1% for the three months ended
September 30, 2004. Selling, general and administrative expenses
for the quarter were $6.6 million representing 8.4% of total
revenue as compared to $2.6 million representing 10.2% of total
revenue for the three months ended September 30, 2004. Highlights
of Financial Results - Nine months ended September 30, 2005: * The
Company generated basic earnings per share for the nine months of
$1.47 on weighted average shares outstanding of 12.5 million and
diluted earnings per share of $1.45 on weighted average shares
outstanding of 12.7 million; * Total revenue for the nine months
was $147.1 million with $140.5 million of revenue derived from
homebuilding, as compared to total revenue of $74.8 million for the
nine months ended September 30, 2004 with $67.6 million of revenue
derived from homebuilding. This represents a 96.6% increase in
total revenue and a 107.6% increase in revenue from homebuilding; *
The Company delivered 403 homes during the nine months at an
average per unit revenue of approximately $349,000 as compared to
208 homes at an average per unit revenue of $325,000 during the
nine months ended September 30, 2004; * Gross profit from all
revenue was $45.9 million for the nine months representing a 31.2%
gross margin. Gross profit from condominium conversions was $6.0
million representing gross margin of 13.9%. Exclusive of
condominium conversions gross profit for the nine months was $39.9
million representing a gross margin of 38.3%. Gross profit for the
nine months ended September 30, 2004, during which there was no
condominium conversion revenue, was $24.7 million representing a
33.1% gross margin; * Operating income was $28.6 million for the
nine months representing a 19.5% operating margin as compared to
operating income of $15.2 million and an operating margin of 20.3%
for the nine months ended September 30, 2004. Selling, general and
administrative expenses for the nine months were $17.2 million
representing 11.7% of total revenue as compared to $9.5 million
representing 12.8% of total revenue for the nine months ended
September 30, 2004; * Backlog revenue at September 30, 2005 was
$231.8 million on 567 sold units of which approximately $148
million is derived from 371 sold units at the Company's Eclipse on
Center Park at Potomac Yard project. "We are extremely pleased with
the results of this quarter," said Christopher Clemente, Chairman
and CEO. "We delivered 202 homes this quarter alone which
represents a record for the company and is in keeping with the
growth strategy we have been implementing over the past several
years. We feel confident that our inventory is well positioned to
continue to provide growth for us. We believe that demand for
affordable housing in our core market, the Greater Washington, DC
region, will continue as a result of job growth and population
growth in the region. Our concentration over the past two years on
providing affordably priced product has provided an opportunity for
our primary target markets of first time and early move-up buyers
to find a home they can afford in a desirable location. Our recent
entry into the condominium conversion business has been very
successful. The conversion projects we are currently marketing have
helped us meet an immediate demand for affordable housing in supply
constrained locations. We believe that as long as job growth is
strong and incomes remain high, housing demand will continue in the
Washington area. We are excited about our prospects for growth
throughout the region over the next several years." 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 from Operations Note: The Company's
results pre-IPO are referred to as "Predecessor" in the Company's
financial statements. Three Months Ended Nine Months Ended Comstock
Homebuilding Sept 30, Sept 30, Companies, Inc. (In thousands US
dollars, 2005 2004 2005 2004 except per share data) Predecessor
Predecessor Revenues Sale of real estate - Homes $ 72,409 $ 23,395
$ 140,473 $ 67,649 Other revenue 6,028 2,437 6,604 7,165 Total
revenue 78,437 25,832 147,077 74,814 Expenses Cost of sales of real
estate 50,838 13,897 98,087 44,665 Cost of sales of other 3,118
1,773 3,138 5,419 Selling, general and administrative 6,562 2,636
17,222 9,546 Operating income 17,919 7,526 28,630 15,184 Other
(income) expense, net (463) 241 (653) 301 Income before minority
interest and equity in earnings of real estate partnerships 18,382
7,285 29,283 14,883 Minority interest 6 1,812 14 4,360 Income
before equity in earnings of real estate partnerships 18,376 5,473
29,269 10,523 Equity in earnings of real estate partnerships 48 35
82 93 Total pre tax income 18,424 5,508 29,351 10,616 Income Taxes
6,941 - 10,993 - Net Income $ 11,483 $ 5,508 $ 18,358 $ 10,616
Basic earnings per share 0.82 0.78 1.47 1.50 Basic weighted average
shares outstanding 13,987 7,067 12,491 7,067 Diluted earnings per
share 0.81 0.78 1.45 1.50 Diluted weighted average shares
outstanding 14,168 7,067 12,653 7,067 Proforma basic earnings per
share - adjusted for tax and share count 0.82 0.25 1.47 0.53
Proforma diluted earnings per share - adjusted for tax and share
count 0.81 0.24 1.45 0.52 DATASOURCE: Comstock Homebuilding
Companies, Inc. CONTACT: Carrie Blewitt, +1-202-448-3129, or , for
Comstock Homebuilding Companies, Inc. Web site:
http://www.comstockhomebuilding.com/
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