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RESTON, Va., March 30, 2012(GLOBE NEWSWIRE) -- Comstock Homebuilding Companies, Inc.(Nasdaq:CHCI) ("Comstock" or the "Company"), a multi-faceted real estate development and services company focused on the Washington, D.C.metropolitan area, announced a net loss for its fourth quarter ended December 31, 2011of $(2.7) millionor $(0.14)per basic and diluted share, compared to a net loss for its fourth quarter ended December 31, 2010of $(1.5) millionor $(0.09)earnings per basic and diluted share. Total revenue for the fourth quarter of 2011 was $6.3 millioncompared to $2.7 millionfor the comparable 2010 quarter.
For the year ended
December 31, 2011, the Company reported a net income of $1.1 millionor $0.05per basic and diluted share compared to a net loss of $(7.7) millionor $(0.42)per basic and diluted share for the year ended December 31, 2010. Included in the 2011 results was a gain related to a legal settlement of $9.4 million. Total revenue for the year ended December 31, 2011was $22.2 millionas compared to $23.9 millionfor the year ended December 31, 2010. Cash flow from operating activities was $12.7 millionfor 2011 compared to $15.4 millionfor 2010.
Notable Events and Accomplishments
The Company announced the following business updates in its Multi-family and Homebuilding divisions during 2011 and into the first quarter of 2012:
March 7, 2012, Comstock Cascades II L.C., an entity in which the Company has a controlling interest, closed on the previously announced sale of the Potomac Square Apartment project for a total purchase price of $19.35 million. After repayment of the construction loan, guarantor credit enhancement fees, minority investor's equity and preferred return, current net proceeds to the Company were approximately $4.7 million. Comstock's multi-family division constructed the Class A apartment project within the Cascades master planned community located in Loudoun County, Virginia. Construction began during the first quarter of 2011 and was substantially completed in the fourth quarter of 2011. Cardinal Bank of Tysons Corner, Virginia provided a $10.5 million construction loan for the project.
The Company announced that its multi-family division has secured development rights for a new apartment community to be known as Boulevard on Newell located proximate to the
Silver SpringMetro rail station in downtown Silver Spring, Maryland. The Company has initiated the process of securing rezoning and land development permits for the planned multi-family project and expects to commence development in early 2014.
- The Company announced that during Q1-2012 its Homebuilding unit secured building permits and broke ground on a model home at The Hampshires, a 110 unit new home community located within the Lamond-Riggs neighborhood on New Hampshire Avenue, in the Northeast quadrant of Washington, D.C. The Hampshires is located proximate to two Metro rail stations just inside the Washington, D.C.-Maryland border. Sales of the 37 single-family homes and 73 townhomes at The Hampshires are expected to commence in mid-2012 with prices expected to start from the $400's for the townhomes and the $600's for the single-family homes.
- The Company announced that during Q1-2012 its Homebuilding unit has purchased land and secured preliminary approvals for a new community to be known as Falls Grove located in northern Prince William County near Centreville, Virginia. The property will be developed with 110 townhouses and 19 single family homes with prices expected to start from the $200's for the townhomes and the $400's for the single-family homes. The Company anticipates development to commence in mid-2012 and unit sales to commence in the second half of 2012.
Additional noteworthy accomplishments include:
During 2011, the Company continued to monetize existing inventory at the Eclipse condominium project, where it settled 17 units reducing remaining inventory to 27 units (out of a total of 465 units) and at the
Penderbrook Squarecondominium project where it settled 29 units reducing remaining inventory to 39 (out of a total of 424 units)
The Company's overall liquidity and financial performance improved during the year. Overall unrestricted cash increased to
$5.6 millionas of December 31, 2011from $0.5 millionas of December 31, 2010. Total book equity increased to $12.5 millionas of December 31, 2011from $6.7 millionas of December 31, 2010. The settlement of the Balfour lawsuit, new financings and cash flow from our continuing operations contributed to the ongoing improvement in the financial condition of the Company.
"The Company made significant strides in its homebuilding and apartment operations during 2011," said
Christopher Clemente, Chairman and CEO. "Our improved liquidity and balance sheet has enhanced our ability to pursue additional opportunities and we look forward to a successful 2012."
Comstock Homebuilding Companies, Inc.
Comstock is a multi-faceted real estate development and services company. Our substantial experience in building a diverse range of products including single-family homes, townhouses, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a prominent real estate developer and homebuilder in the Washington, D.C. metropolitan area.
Comstock Homebuilding Companies, Inc.trades on the NASDAQ Capital Marketexchange under the symbol CHCI. For more information on the Company or its projects please visit www.comstockhomebuilding.com
Comstock Homebuilding Companies, Inc.logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5034
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. 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 including incurring substantial indebtedness with respect to projects, the diversion of management's attention and other negative consequences. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent 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 HOMEBUILDING COMPANIES, INC.AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share data) December 31,
ASSETS Cash and cash equivalents $ 5,639 $ 475 Restricted cash 3,082 5,201 Trade receivables 2,228 392 Real estate held for development and sale 21,212 34,008 Operating real estate, net 12,095 -- Property, plant and equipment, net 105 50 Other assets 2,018 802 TOTAL ASSETS $ 46,379 $ 40,928 LIABILITIES AND SHAREHOLDERS' EQUITY LIABILITIES Accounts payable and accrued liabilities $ 3,987 $ 5,884 Notes payable - secured by real estate held for development and sale, net of discount 10,541 18,853 Notes payable - secured by operating real estate 9,957 -- Notes payable - due to affiliates, unsecured 5,008 5,008 Notes payable - unsecured 4,309 4,515 Income taxes payable 33 -- TOTAL LIABILITIES 33,835 34,260 Commitments and contingencies (Note 15) -- -- SHAREHOLDERS' EQUITY Class A common stock, $0.01par value, 77,266,500 shares authorized, 17,944,503 and 17,120,467 issued and outstanding, respectively 179 171 Class B common stock, $0.01par value, 2,733,500 shares authorized, 2,733,500 issued and outstanding 27 27 Additional paid-in capital 168,620 166,700 Treasury stock, at cost (391,400 shares Class A common stock) (2,439) (2,439) Accumulated deficit (156,684) (157,791) TOTAL COMSTOCK HOMEBUILDING EQUITY 9,703 6,668 Non-controlling interest 2,841 -- TOTAL EQUITY 12,544 6,668 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 46,379 $ 40,928 COMSTOCK HOMEBUILDING COMPANIES, INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) Twelve Months Ended December 31, 2011 2010 Revenues Revenue - homebuilding $ 14,062 $ 19,070 Revenue - other 8,147 4,781 Total revenue 22,209 23,851 Expenses Cost of sales - homebuilding 12,160 19,186 Cost of sales - other 7,825 4,011 Impairments and write-offs -- 1,548 Selling, general and administrative 7,443 5,606 Interest, real estate taxes and indirect costs related to inactive projects 3,102 2,224 Operating loss (8,321) (8,724) Gain on troubled debt restructuring (219) -- Gain on legal settlement, net (9,434) -- Other income, net (299) (1,037) Total pre tax income (loss) 1,631 (7,687) Income taxes expense 33 11 Net income (loss) from continuing operations 1,598 (7,698 ) Less: Net income attributable to non-controlling interests 491 -- Net income (loss) attributable to Comstock Homebuilding Companies, Inc. $ 1,107 $ (7,698) Basicincome(loss) per share $ 0.05 $ (0.42) Diluted income(loss) per share $ 0.05 $ (0.42) Basicweighted average shares outstanding 20,287 18,313 Diluted weighted average shares outstanding. 20,720 18,313 COMSTOCK HOMEBUILDING COMPANIES, INC.AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except per share data) Twelve Months Ended December 31, 2011 2010 Cash flows from operating activities: Net income (loss) $ 1,598 $ (7,698) Adjustment to reconcile net income (loss) to net cash provided by operating activities Amortization of loan discount and deferred financing fees 1,444 -- Depreciation expense 196 98 Provision for bad debt 1 (13) Impairments and write-offs -- 1,548 Amortization of stock compensation 932 704 Gain on debt restructuring (219) -- Gain on trade payable settlements (161) (860) Changes in operating assets and liabilities: Restricted cash 19 (1,952) Trade receivables (1,837) (405) Real estate held for development and sale 10,292 19,927 Other assets (678) 1,187 Accrued interest 752 -- Accounts payable and accrued liabilities 364 2,856 Income taxes payable 33 -- Net cash provided by operating activities 12,736 15,392 Cash flows from investing activities: Investment in construction in process and operating real estate (9,764) -- Purchase of property, plant and equipment (78) (4) Net cash used in investing activities (9,842) (4) Cash flows from financing activities: Proceeds from notes payable 38,908 823 Payments on notes payable (38,436) (17,649) Loan financing costs (1,548) -- Proceeds from SunBridge warrant issuance 996 -- Proceeds from warrant exercise -- 828 Proceeds from Cascades Private Placement 2,350 -- Net cash provided by (used in) financing activities 2,270 (15,998) Net increase (decrease) in cash and cash equivalents 5,164 (610) Cash and cash equivalents, beginning of period 475 1,085 Cash and cash equivalents, end of period $ 5,639 $ 475 Comstock Homebuilding Companies, Inc.
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