WASHINGTON & RESTON, Va.--(BUSINESS WIRE)--Comstock Holding Companies, Inc., (NASDAQ: CHCI), announced results for the first three and six months ended June 30, 2016:
Highlights of Second Quarter 2016:
- Backlog at June 30, 2016 of 50 units valued at $21.5 million, compared to 43 units valued at $22.3 million at June 30, 2015;
- Unit deliveries of 21, generating homebuilding revenue of $9.7 million for the three months ended June 30, 2016 compared to unit deliveries of 25 generating $12.1 million of homebuilding revenue for the same period in 2015;
- Controlled community count and open community count of 17 and 10, respectively, at June 30, 2016 compared to 19 and 10, respectively at June 30, 2015;
- Comstock is preparing to commence sales and development of five new communities located in Virginia, Maryland, and Washington, DC, and
- Subsequent to the quarter end, the Company completed Comstock Investors X, L.C. a private placement offering of $14.0 million to provide capital for certain projects scheduled to commence in the second half of 2016.
Chairman and CEO, Christopher Clemente commented, “Our second quarter and first half results are in line with our expectations for early 2016. Our focus continues to be increasing revenue while reducing fixed operating costs. Our efforts in this regard over the past two years has substantially rationalized overhead expenses. The result of our cost reduction efforts resulted in reductions of fixed operating costs of 29% in the second quarter of this year and 24% year-to-date, as compared to a year ago. We expect this trend to continue with general and administrative costs for full year 2016, expecting at least a 25% reduction, as compared to 2015. We believe that our reduced cost structure coupled with the typical revenue increase that we experience in the second half of each calendar year will contribute towards our effort to generate positive results in the near future."
COMSTOCK COMMUNITIES NOW OPEN
Comstock currently has 10 communities open for sale in Virginia and Maryland, including townhomes, condominiums, single-family homes and villas priced from the high $200s to the $500s. Four additional communities are scheduled to open during the second half of 2016, with prices ranging from high $300s to high $800s. For further details on the open communities, see the attached Pipeline Report as of June 30, 2016 and the Form 10-Q filed by the company on August 15, 2016 or visit www.ComstockHomes.com.
COMSTOCK COMMUNITIES COMING SOON
Comstock has seven new communities in various stages of planning and development. The new communities, located in Maryland, Virginia and Washington, DC, include townhomes, single-family homes and multi-family units. Comstock plans to open five of these communities before year-end 2016, with the balance of them expected to open before the end of 2017. The communities opening in mid-to-late 2016 include:
- The Townes at 1333 (Old Town Alexandria, VA) – townhomes priced from the high $800s.
- Townes at Totten Mews (Washington, DC) – townhomes priced from the high $500s.
- Marwood East (Loudoun County, VA) – single family homes priced from the high $500s.
- Estates at Emerald Farm, final section (Frederick, MD) – single family homes priced from the high $300s.
- Woods at Stone Ridge (Frederick, MD) – single family homes priced from the upper $500s.
For further details on the communities in planning, see the attached Pipeline Report as of June 30, 2016 and the Form 10-Q filed by the company on August 15, 2016.
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 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, 2015. 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)|
|Cash and cash equivalents||$||3,377||$||12,448|
|Real estate inventories||34,914||38,223|
|Fixed assets, net||291||394|
|Other assets, net||4,892||4,515|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accounts payable and accrued liabilities||$||8,398||$||7,638|
|Notes payable - secured by real estate inventories||21,846||24,823|
|Notes payable - due to affiliates, unsecured, net of discount||15,692||19,028|
|Notes payable - unsecured||1,336||1,548|
|Income taxes payable||21||-|
|Commitments and contingencies|
|STOCKHOLDERS’ EQUITY (DEFICIT)|
|Preferred stock $0.01 par value, 806,647 and 772,210 shares issued|
|and liquidation preference of $4,033 and $3,861 at|
|June 30, 2016 and December 31, 2015, respectively||$||1,226||$||1,174|
Class A common stock, $0.01 par value, 11,038,071 shares authorized, 3,020,810
|and 2,997,437 issued, and outstanding, respectively||30||30|
|Class B common stock, $0.01 par value, 390,500 shares authorized, issued, and outstanding||4||4|
|Additional paid-in capital||175,982||175,963|
|Treasury stock, at cost (85,570 shares Class A common stock)||(2,662||)||(2,662||)|
|TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT||(4,838||)||(1,276||)|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||47,339||$||58,478|
|COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES|
|CONSOLIDATED STATEMENT OF OPERATIONS|
|(Amounts in thousands, except per share data)|
|Three Months Ended June 30,||Six Months Ended June 30,|
|Cost of sales—homebuilding||9,185||10,594||17,830||19,184|
|Cost of sales—other||153||188||244||353|
|Sales and marketing||403||489||886||914|
|General and administrative||1,373||1,936||2,915||3,833|
|Interest and real estate tax expense||306||156||522||326|
|Other income, net||13||582||21||774|
Loss before income tax expense
|Income tax (expense) benefit||(32||)||(57||)||(57||)||13|
|Net income attributable to non-controlling interests||448||534||884||809|
|Net loss attributable to Comstock Holding Companies, Inc.||(1,909||)||(808||)||(3,633||)||(1,751||)|
|Paid-in-kind dividends on Series B Preferred Stock||86||-||172||-|
|Net loss attributable to common stockholders||$||(1,995||)||$||(808||)||$||(3,805||)||$||(1,751||)|
|Basic net loss per share||$||(0.60||)||$||(0.25||)||$||(1.15||)||$||(0.57||)|
|Diluted net loss per share||$||(0.60||)||$||(0.25||)||$||(1.15||)||$||(0.57||)|
|Basic weighted average shares outstanding||3,319||3,173||3,312||3,077|
|Diluted weighted average shares outstanding||3,319||3,173||3,312||3,077|
|Pipeline Report as of June 30, 2016|
|City Homes at the Hampshires||DC||SF||38||38||-||-||-||-||$||728|
|Townes at the Hampshires (3)||DC||TH||73||73||-||-||-||-||$||551|
|Estates at Falls Grove||VA||SF||19||13||5||1||-||6||$||544|
|Townes at Falls Grove||VA||TH||110||62||12||36||-||48||$||301|
|Townes at Shady Grove Metro||MD||TH||36||26||-||10||-||10||$||626|
|Townes at Shady Grove Metro (4)||MD||SF||3||3||-||-||-||-||$||199|
|Momentum | Shady Grove Metro (5)||MD||Condo||110||-||-||110||-||110||$||-|
|Estates at Emerald Farms||MD||SF||84||78||4||2||-||6||$||413|
|Townes at Maxwell Square||MD||TH||45||41||4||-||-||4||$||421|
|Townes at Hallcrest||VA||TH||42||18||16||8||-||24||$||458|
|Estates at Leeland||VA||SF||24||2||6||16||-||22||$||450|
|Villas | Preserve at Two Rivers 28'||MD||TH||10||4||2||4||-||6||$||450|
|Villas | Preserve at Two Rivers 32'||MD||TH||10||8||-||2||-||2||$||505|
|Marrwood East (7)||VA||SF||35||-||1||34||-||35||$||591|
|Estates at Popkins Lane||VA||SF||12||-||-||-||12||12||$||-|
|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||$||-|
|The Towns at 1333||VA||TH||18||-||-||-||18||18||$||-|
|The Woods at Spring Ridge||MD||SF||24||-||-||-||24||24||$||-|
|(1) "SF" means single family home, "TH" means townhouse, "Condo" means condominium, "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; not considered a separate community.|
|(5) 18 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.|