- Revenue increased for the 13th consecutive quarter to $14.5
million; YTD revenue of $33.7 million, up 12% vs. prior
year
- Net income increased 27% to $4.7 million; YTD net income of
$5.9 million
- Adjusted EBITDA increased 35% to $5.6 million; YTD Adjusted
EBITDA of $8.3 million, up 16% vs. prior year
- Commercial and Residential portfolios each remain well over
90% leased
- Parking management expansion continues, 37% revenue growth
vs. prior year; YTD revenue up 54%
- Further strengthened balance sheet, including 81% current
ratio growth vs. 12/31/22
Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or
the “Company”), a leading asset manager, developer, and operator of
mixed-use and transit-oriented properties in the Washington, D.C.
region, announced its financial results for the third quarter ended
September 30, 2023.
“The strategic growth platform we have built at Comstock
continues to produce positive results, as evidenced by top-line
revenue growth for the 13th consecutive quarter that included a 13%
increase in recurring fee-based revenue streams,” said Christopher
Clemente, Comstock’s Chairman and Chief Executive Officer. “In Q3
we achieved significant increases in both operating income and
Adjusted EBITDA while further strengthening our balance sheet, a
testament to the resiliency of our business model. We remain
well-positioned to both sustain current operations and capitalize
on new growth opportunities that may arise during this time of
dislocation in the real estate industry. I am proud of the
high-quality assets we manage and our best-in-class team members
that show up every single day focused on providing remarkable
services and experiences. I look forward to reporting on our
continued success in future periods as we strive to maximize value
for our shareholders.”
Key Performance Metrics1
($ in thousands, except per share and
portfolio data)
Q3 2023
Q3 2022
YTD 2023
YTD 2022
Revenue
$
14,463
$
12,813
$
33,705
$
30,011
Income from operations
$
5,257
$
3,875
$
7,221
$
6,357
Net income
4,685
3,689
5,914
6,417
3
Adjusted EBITDA
$
5,605
$
4,143
$
8,258
$
7,137
Net income per share — diluted
$
0.46
$
0.37
$
0.59
$
0.90
2, 3
Managed Portfolio - # of assets
46
40
46
40
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
Amount reflects $2.0 million positive
impact of Q2 2022 Series C Preferred Stock redemption
3
Amounts reflect impact of $0.5 million
non-cash tax benefit stemming from partial release of deferred tax
valuation allowance
Q3 2023 Highlights
- Recognized $4.8 million incentive fee revenue based on
achievement of operating asset stabilization, pursuant to the terms
of the 2022 Asset Management Agreement (“2022 AMA”).
- Welcomed Securiport, Noku Sushi, and Tous les Jour to Reston
Station, which has secured 8 new leases year-to-date covering
nearly 200,000 sqft of office and retail spaces.
- Managed commercial portfolio leased percentage of 92%, up from
87% in Q3 2022; produced in-place rent growth of 5.5% vs. prior
year.
- Managed residential portfolio leased percentage of 97%, up from
88% in Q3 2022; produced in-place rent growth of 5.1% vs. prior
year.
- Continued growth of parking management portfolio, including 26%
growth in average parking management contract value vs. prior
year.
- Added former JBG Smith executive David Paul to Board of
Directors.
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)
September 30,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
10,935
$
11,722
Accounts receivable, net
571
504
Accounts receivable - related parties
10,381
3,291
Prepaid expenses and other current
assets
307
264
Total current assets
22,194
15,781
Fixed assets, net
512
421
Intangible assets
144
144
Leasehold improvements, net
97
119
Investments in real estate ventures
5,984
7,013
Operating lease assets
7,002
7,625
Deferred income taxes, net
10,720
11,355
Other assets
35
15
Total assets
$
46,688
$
42,473
Liabilities and Stockholders'
Equity
Current liabilities:
Accrued personnel costs
$
3,226
$
4,959
Accounts payable and accrued
liabilities
975
742
Current operating lease liabilities
838
791
Total current liabilities
5,039
6,492
Operating lease liabilities
6,493
7,127
Total liabilities
11,532
13,619
Stockholders' equity:
Class A common stock
94
93
Class B common stock
2
2
Additional paid-in capital
201,922
201,535
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(164,200
)
(170,114
)
Total stockholders' equity
35,156
28,854
Total liabilities and stockholders'
equity
$
46,688
$
42,473
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Statements of
Operations
(Unaudited; In thousands, except
per share data)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue
$
14,463
$
12,813
$
33,705
$
30,011
Operating costs and expenses:
Cost of revenue
8,557
8,346
24,561
22,112
Selling, general, and administrative
575
537
1,711
1,393
Depreciation and amortization
74
55
212
149
Total operating costs and expenses
9,206
8,938
26,484
23,654
Income (loss) from operations
5,257
3,875
7,221
6,357
Other income (expense):
Interest expense
—
(94
)
—
(222
)
Gain (loss) on real estate ventures
(241
)
(31
)
(720
)
238
Income (loss) from continuing operations
before income tax
5,017
3,751
6,549
6,375
Provision for (benefit from) income
tax
332
62
635
(42
)
Net income (loss) from continuing
operations
4,685
3,689
5,914
6,417
Net income (loss) from discontinued
operations, net of tax
—
(99
)
—
(376
)
Net income (loss)
$
4,685
$
3,590
$
5,914
$
6,041
Impact of Series C preferred stock
redemption
—
—
—
2,046
Net income (loss) attributable to common
stockholders
$
4,685
$
3,590
$
5,914
$
8,087
Weighted-average common stock
outstanding:
Basic
9,647
9,464
9,621
8,806
Diluted
10,130
10,007
10,082
9,363
Net income (loss) per share:
Basic - Continuing operations
$
0.49
$
0.39
$
0.61
$
0.96
Basic - Discontinued operations
—
(0.01
)
—
(0.04
)
Basic net income (loss) per share
$
0.49
$
0.38
$
0.61
$
0.92
Diluted - Continuing operations
$
0.46
$
0.37
$
0.59
$
0.90
Diluted - Discontinued operations
—
(0.01
)
—
(0.04
)
Diluted net income (loss) per share
$
0.46
$
0.36
$
0.59
$
0.86
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 September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Net income (loss) from continuing
operations
$
4,685
$
3,689
$
5,914
$
6,417
Interest expense
—
94
—
222
Income taxes
332
62
635
(42
)
Depreciation and amortization
74
55
212
149
Stock-based compensation
273
212
777
629
(Gain) loss on equity method
investments
241
31
720
(238
)
Adjusted EBITDA
$
5,605
$
4,143
$
8,258
$
7,137
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/20231109314015/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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