Comstock Homebuilding Companies, Inc.
Apr 1, 2016
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Comstock Holding Companies Announces 2015 Results and Provides Preliminary Highlights for First Quarter 2016

WASHINGTON & RESTON, Va.--(BUSINESS WIRE)--

Comstock Holding Companies, Inc., (NASDAQ:CHCI), today announced financial results for the year ended December 31, 2015 and provided an update on first quarter 2016 performance:

Highlights of Fourth Quarter of 2015

Highlights of 2015

2016 1st quarter preliminary highlights:

On a preliminary basis, the Company indicated performance metrics as set forth below during the first quarter of 2016. Note that the preliminary financial results, other than the historical results referenced below, are subject to completion of Comstock's financial and accounting closing and review procedures.

Business Commentary

Chairman and CEO Christopher Clemente commented: "Significant operational enhancements and changes to our product offerings implemented over the 18 months helped make the fourth quarter of 2015 our most productive quarter in several years. Cost reductions resulting from several operational changes will contribute to general and administrative reductions in 2016. We are confident that our reduced fixed operating costs coupled with what appears to be improving conditions in our core market of Washington, DC will contribute positively to our effort to restore the Company to profitability."

   
Year Ended December 31,
2015 2014
Revenues
Revenue—homebuilding $ 60,132 $ 47,378
Revenue—other   1,244     587  
Total revenue 61,376 47,965
 
Operating loss (3,556 ) (2,976 )
Net loss (1,963 ) (3,114 )
Net income attributable to non-controlling interests   2,604     3,725  
Net loss attributable to Comstock Holding Companies, Inc. $ (4,567 ) $ (6,839 )
 
Basic and diluted net loss per share $ (1.43 ) $ (2.27 )
 
Supplemental data
Unit deliveries 123 102
Backlog units 25 24
Backlog revenue $ 10,785 $ 12,430
Controlled communities (1) 17 19
Open communities 10 7
Pipeline units under control (1) 526 946
 
(1) Includes communities and units under land option purchase contract, not owned.
 

COMSTOCK COMMUNITIES NOW OPEN

COMSTOCK COMMUNITIES COMING SOON

About Comstock Holding Companies, Inc.

Comstock is a homebuilding and multi-faceted real estate development and services company that builds a wide range of housing products under its Comstock Homes brand through its wholly owned subsidiary, Comstock Homes of Washington, LC. Our track record of developing numerous successful new home communities and nearly 6,000 homes, together with our substantial experience in building a diverse range of products including apartments, single-family homes, townhomes, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a leading developer and homebuilder in the Washington, D.C. metropolitan area. Comstock is a publicly traded company, trading on NASDAQ under the symbol CHCI. For more information about Comstock or its new home communities, please visit www.comstockhomes.com.

Cautionary Statement Regarding Forward-Looking Statements

This release includes "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 the 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. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Some factors which may affect the accuracy of the forward-looking statements apply generally to the real estate industry, while other factors apply directly to us. Any number of important factors which could cause actual results to differ materially from those in the forward-looking statements include, without limitation: completion of Comstock's financial accounting and review procedures; general economic and market conditions, including interest rate levels; our ability to service our debt; inherent risks in investment in real estate; our ability to compete in the markets in which we operate; economic risks in the markets in which we operate, including actions related to government spending; delays in governmental approvals and/or land development activity at our projects; regulatory actions; fluctuations in operating results; our anticipated growth strategies; shortages and increased costs of labor or building materials; the availability and cost of land in desirable areas; adverse weather conditions or natural disasters; our ability to raise debt and equity capital and grow our operations on a profitable basis; and our continuing relationships with affiliates. Additional information concerning these and other important risk and uncertainties can be found under the heading "Risk Factors" in our Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, for the fiscal year ended December 31, 2014. Our actual results could differ materially from these projected or suggested by the forward-looking statements. Comstock claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all forward-looking statements contained herein. 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. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
 

December 31,
2015

December 31,
2014

ASSETS
Cash and cash equivalents $ 12,448 $ 7,498
Restricted cash 2,566 1,779
Trade receivables 332 110
Real estate inventories 38,223 40,889
Fixed assets, net 394 395
Other assets   4,515     5,696  
TOTAL ASSETS $ 58,478   $ 56,367  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 7,638 $ 8,538
Notes payable - secured by real estate inventories 24,823 28,379
Notes payable - due to affiliates, unsecured, net of discount 19,028 15,488
Notes payable - unsecured 1,548 2,064
Income taxes payable   -     43  
TOTAL LIABILITIES   53,037     54,512  
 
Commitments and contingencies - -
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, $0.01 par value, 772,210 issued and outstanding shares with a liquidation
preference of $3,861 at December 31, 2015 and 0 shares authorized, issued and outstanding

at December 31, 2014

$ 1,174 $ -
Class A common stock, $0.01 par value, 11,038,071 shares authorized, 2,997,437
and 2,726,455 issued and outstanding, respectively 30 27
Class B common stock, $0.01 par value, 390,500 shares authorized, issued and outstanding 4 4
Additional paid-in capital 175,963 171,639
Treasury stock, at cost (85,570 and 74,576 shares Class A common stock, respectively) (2,662 ) (2,583 )
Accumulated deficit   (175,785 )   (171,218 )

TOTAL COMSTOCK HOLDING COMPANIES, INC. (DEFICIT)

(1,276 ) (2,131 )
Non-controlling interests   6,717     3,986  
TOTAL EQUITY   5,441     1,855  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 58,478   $ 56,367  
 
   
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
 
Year Ended December 31,
2015 2014
Revenues
Revenue—homebuilding $ 60,132 $ 47,378
Revenue—other   1,244     587  
Total revenue 61,376 47,965
 
Expenses
Cost of sales—homebuilding 51,583 38,133
Cost of sales—other 551 372
Impairment charges and write-offs 2,765 2,695
Sales and marketing 2,076 2,130
General and administrative 7,410 7,585
Interest and real estate tax expense   547     26  
Operating loss (3,556 ) (2,976 )
Other income, net   861     230  
Loss before income tax benefit (expense) (2,695 ) (2,746 )
Income tax benefit (expense)   732     (368 )
Net loss (1,963 ) (3,114 )
Less: Net income attributable to non-controlling interests   2,604     3,725  
Net loss attributable to Comstock Holding Companies, Inc. $ (4,567 ) $ (6,839 )
 
Basic loss per share $ (1.43 ) $ (2.27 )
Diluted loss per share $ (1.43 ) $ (2.27 )
 
Basic weighted average shares outstanding

3,198

3,012
Diluted weighted average shares outstanding

3,198

3,012
 
                     
Pipeline Report as of December 31, 2015

 

 

 

Total Units

Average

Estimated Units

 

Owned,

New Order

Product Units at Units

 

Owned

Units Under

Unsettled and

Revenue Per

Project       State   Type (1)   Completion   Settled  

Backlog (8)

  Unsold  

Control (2)

 

Under Control

 

Unit to Date

City Homes at the Hampshires DC SF 38 37 - 1 - 1 746
Townes at the Hampshires (3) DC TH 73 70 2 1 - 3 552
Estates at Falls Grove VA SF 19 8 3 8 - 11 537
Townes at Falls Grove VA TH 110 57 4 49 - 53 301
Townes at Shady Grove Metro MD TH 36 26 - 10 - 10 581
Townes at Shady Grove Metro (4) MD SF 3 3 - - - - -
Momentum | Shady Grove Metro (5) MD Condo 110 - - 110 - 110 -
Estates at Emerald Farms MD SF 84 78 - 6 - 6 -
Townes at Maxwell Square MD TH 45 32 9 4 - 13 421
Townes at Hallcrest VA TH 42 7 2 33 - 35 467
Estates at Leeland VA SF 24 - 1 23 - 24 438
Villas | Preserve at Two Rivers 28' MD TH 10 2 - 8 - 8 445
Villas | Preserve at Two Rivers 32' MD TH 10 3 4 3 - 7 509
Estates at Popkins Lane VA SF 12 - - - 12 12 -
Townes at Richmond Station VA TH 54 - - - 54 54 -
Richmond Station Multi-family VA MF 104 - - - 104 104 -
Townes at Totten Mews (6) DC TH 40 - - - 40 40 -
Marrwood East (7)       VA   SF   35   -   -   -   35   35   -
Total               849   323   25   256   245   526    
 
(1) "SF" means single family home, "TH" means townhouse, "Condo" means condominium and "MF" means multi-family.
(2) Under land option purchase contract, not owned.
(3) 3 of these units are subject to statutory affordable dwelling unit program.
(4) Units are subject to statutory moderately priced dwelling unit program.
(5) 16 of these units are subject to statutory moderately priced dwelling unit program.
(6) 5 of these units are subject to statutory affordable dwelling unit program.

(7) 1 of these units is subject to statutory affordable dwelling unit program.

(8) "Backlog" means we have an executed order with a buyer but the settlement did not occur prior to report date.
 

Company:
Comstock Holding Companies, Inc.
Christopher Conover, 703-230-1985
Interim Chief Financial Officer
or
Investor Relations:
LHA
Jody Burfening / Harriet Fried, 212-838-3777
hfried@lhai.com

Source: Comstock Holding Companies, Inc.

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