- Revenue increased 18% to $10.3 million vs. $8.7 million in
Q1 2022; driven by 9% growth in asset management and 37% growth in
three property management subsidiaries combined
- Non-cash impacts of prior year tax benefit and investment
valuation decline resulted in net income of $0.7 million vs. $2.0
million in Q1 2022
- Adjusted EBITDA of $1.6 million represents slight increase
vs. Q1 2022
- Strong demand across portfolio of residential assets
increased leased percentage to 93% as of Q1 2023, up from 84% in Q1
2022 and driven in part by successful lease up of BLVD Ansel, which
was acquired in March 2022 and is now 91% leased
- Commercial portfolio assets remained in demand with a 90%
leased percentage, up from 82% in Q1 2022 and driven by 366k square
feet of office and retail leasing in FY 2022 and approximately 100k
square feet in Q1 2023
Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or
the “Company”), a leading asset manager, developer, and operator of
mixed-use and transit-oriented properties in the Washington, D.C.
region, announced its financial results for the first quarter ended
March 31, 2023. The Company has also posted an updated Investor
Presentation on its IR website, ir.comstockcompanies.com.
“Once again, Comstock’s results for the first quarter
demonstrate the resiliency of our asset-light and virtually
debt-free business model, while the quality of our mixed-use and
transit-oriented portfolio of managed assets continues to deliver
revenue and Adjusted EBITDA growth. Our Q1 comparative increase in
top line revenue included significant increases in critical
fee-based, recurring revenue streams that provide us with
visibility to the future growth potential of our business,” said
Christopher Clemente, Comstock’s Chairman and Chief Executive
Officer. “I believe much of our success throughout the pandemic and
going forward is because we show up every day, driven by our
primary goal of producing value for our shareholders. I thank our
dedicated team members and look forward to reporting on our
continued progress in upcoming periods.”
Key Performance Metrics1
($ in thousands, except per share and
portfolio data)
Q1 2023
Q1 2022
Revenue
$
10,275
$
8,731
Income from operations
$
1,321
$
1,365
Net income
754
2,014
2
Adjusted EBITDA
$
1,626
$
1,606
Net income per share — diluted
$
0.07
$
0.22
2
Managed Portfolio - # of assets
45
36
1
All amounts represent continuing
operations. Please see the included financial tables for a
reconciliation of Adjusted EBITDA to the most directly comparable
GAAP financial measure
2
Amounts reflect impact of $0.5 million
non-cash tax benefit stemming from partial release of deferred tax
valuation allowance
Q1 2023 Highlights
- Executed approximately 100,000 square feet of new commercial
leases including a long-term lease agreement with Ebbitt House, the
first ever expansion of the iconic Old Ebbitt Grill brand, bringing
one of the top grossing restaurants in the nation to Reston
Station.
- Managed commercial portfolio 90% leased, up from 82% in Q1
2022.
- Managed residential portfolio 93% leased, up from 84% in Q1
2022 and aided by the rapid lease up pace of BLVD Ansel, which has
grown its lease percentage from 20% in Q1 2022 up to 91%; while
residential portfolio in-place rents also increased 8% vs. the
prior year.
- Continued growth of our wholly owned subsidiary ParkX
Management LC, one of the fastest growing managers of commercial
parking garage assets in the Washington, D.C. region.
About Comstock
Founded in 1985, Comstock is a leading asset manager, developer,
and operator of mixed-use and transit-oriented properties in the
Washington, D.C. region. With a managed portfolio comprising
approximately 10 million square feet at full build-out that
includes stabilized and development assets strategically located at
key Metro stations, Comstock is at the forefront of the urban
transformation taking place in the fastest growing segments of one
of the nation’s best real estate markets. Comstock’s developments
include some of the largest and most prominent mixed-use and
transit-oriented projects in the mid-Atlantic region, as well as
multiple large-scale public-private partnership developments. For
more information, please visit Comstock.com.
Cautionary Statement Regarding Forward-Looking
Statements
This release may include "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 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. Any number
of important factors could cause actual results to differ
materially from those in the forward-looking statements. Additional
information concerning important risk factors and uncertainties can
be found under the heading "Risk Factors" in our latest Annual
Report on Form 10-K, as filed with the Securities and Exchange
Commission. 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.
Consolidated Balance
Sheets
(Unaudited; In thousands)
March 31,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
9,059
$
11,722
Accounts receivable, net
574
504
Accounts receivable - related parties
3,494
3,291
Prepaid expenses and other current
assets
456
264
Total current assets
13,583
15,781
Fixed assets, net
466
421
Intangible assets
144
144
Leasehold improvements, net
111
119
Investments in real estate ventures
6,313
7,013
Operating lease assets
7,420
7,625
Deferred income taxes, net
11,198
11,355
Other assets
3
15
Total assets
$
39,238
$
42,473
Liabilities and Stockholders'
Equity
Current liabilities:
Accrued personnel costs
994
4,959
Accounts payable and accrued
liabilities
967
742
Current operating lease liabilities
806
791
Total current liabilities
2,767
6,492
Operating lease liabilities
6,918
7,127
Total liabilities
9,685
13,619
Stockholders' equity:
Class A common stock
94
93
Class B common stock
2
2
Additional paid-in capital
201,479
201,535
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(169,360
)
(170,114
)
Total stockholders' equity
29,553
28,854
Total liabilities and stockholders'
equity
$
39,238
$
42,473
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Statements of
Operations
(Unaudited; In thousands, except
per share data)
Three Months Ended March
31,
2023
2022
Revenue
$
10,275
$
8,731
Operating costs and expenses:
Cost of revenue
8,323
6,935
Selling, general, and administrative
564
387
Depreciation and amortization
67
44
Total operating costs and expenses
8,954
7,366
Income (loss) from operations
1,321
1,365
Other income (expense):
Interest expense
—
(59
)
Gain (loss) on real estate ventures
(411
)
252
Income (loss) from continuing operations
before income tax
910
1,558
Provision for (benefit from) income
tax
156
(456
)
Net income (loss) from continuing
operations
754
2,014
Net income (loss) from discontinued
operations, net of tax
—
(267
)
Net income (loss)
$
754
$
1,747
Weighted-average common stock
outstanding:
Basic
9,583
8,340
Diluted
10,069
8,974
Net income (loss) per share:
Basic - Continuing operations
$
0.08
$
0.24
Basic - Discontinued operations
—
(0.03
)
Basic net income (loss) per share
$
0.08
$
0.21
Diluted - Continuing operations
$
0.07
$
0.22
Diluted - Discontinued operations
—
(0.03
)
Diluted net income (loss) per share
$
0.07
$
0.19
COMSTOCK HOLDING COMPANIES,
INC.
Non-GAAP Financial
Measures
(Unaudited; In thousands)
Adjusted EBITDA
The following table presents a
reconciliation of net income (loss) from continuing operations, the
most directly comparable financial measure as measured in
accordance with GAAP, to Adjusted EBITDA:
Three Months Ended March
31,
2023
2022
Net income (loss) from continuing
operations
$
754
$
2,014
Interest expense
—
59
Income taxes
156
(456
)
Depreciation and amortization
67
44
Stock-based compensation
238
197
(Gain) loss on equity method
investments
411
(252
)
Adjusted EBITDA
$
1,626
$
1,606
We define Adjusted EBITDA as net income (loss) from continuing
operations, excluding the impact of interest expense (net of
interest income), income taxes, depreciation and amortization,
stock-based compensation, and gain or loss on equity method
investments.
We use Adjusted EBITDA to evaluate financial performance,
analyze the underlying trends in our business and establish
operational goals and forecasts that are used when allocating
resources. We expect to compute Adjusted EBITDA consistently using
the same methods each period.
We believe Adjusted EBITDA is a useful measure because it
permits investors to better understand changes over comparative
periods by providing financial results that are unaffected by
certain non-cash items that are not considered by management to be
indicative of our operational performance.
While we believe that Adjusted EBITDA is useful to investors
when evaluating our business, it is not prepared and presented in
accordance with GAAP, and therefore should be considered
supplemental in nature. Adjusted EBITDA should not be considered in
isolation, or as a substitute, for other financial performance
measures presented in accordance with GAAP. Adjusted EBITDA may
differ from similarly titled measures presented by other
companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230512005407/en/
Investor Contact Christopher
Guthrie Executive Vice President & Chief Financial Officer
cguthrie@comstock.com 703-230-1292
Media Contact Shanna Wilson
shanna.wilson@allisonpr.com 917-674-3096
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