Comstock Reports Fourth Quarter and Fiscal Year 2023 Results

Q4 2023

  • Q4 revenue increased 18% to $11.0 million, including 12% increase in recurring fee-based revenue
  • Q4 operating income increased 22% to $1.9 million; Q4 net income increased 43% to $1.9 million
  • Q4 Adjusted EBITDA increased 17% to $2.2 million

Fiscal Year 2023

  • YTD revenue increased 14% to $44.7 million, including 13% increase in recurring fee-based revenue
  • YTD operating income increased 15% to $9.2 million; YTD net income of $7.8 million flat vs. prior year
  • YTD Adjusted EBITDA of $10.4 million, up 16% vs. prior year
  • Generated $9.0 million of cash flow from operations
  • Maintained well above-average leased percentages in both Commercial and Residential portfolios (90+%)

RESTON, Va.--()--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 fourth quarter and fiscal year ended December 31, 2023.

“Our fiscal 2023 results underscore the strength and resiliency of the growth engine we’ve built at Comstock,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “It is our goal to provide best-in-class service to our clients and deliver value to our stakeholders. Our success in achieving that goal is evidenced by our ability to deliver higher comparative quarterly revenue for the 14th consecutive period, showcase 16% growth in Adjusted EBITDA, and generate over $9 million in cash from operations during 2023. With a streamlined, debt-free balance sheet and additional world-class properties slated for delivery in the next 12 to 24 months, we have clear visibility to near-term growth. Our robust pipeline of development assets continues to expand as well, positioning us for sustainable, long-term success.”

Key Performance Metrics1

($ in thousands, except per share and portfolio data)

Q4 2023

 

Q4 2022

 

FY 2023

 

FY 2022

 

 

Revenue

$

11,016

 

$

9,302

 

$

44,721

 

$

39,313

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

$

1,943

 

$

1,595

 

$

9,164

 

$

7,952

 

 

Net income

 

1,870

 

 

1,311

 

 

7,784

 

 

7,728

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

2,165

 

$

1,857

 

$

10,423

 

$

8,994

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share — diluted

$

0.18

 

$

0.13

 

$

0.77

 

$

1.02

2

 

 

 

 

 

 

 

 

 

 

 

Managed Portfolio - # of assets

 

49

 

 

41

 

 

49

 

 

41

 

 

 

 

 

 

 

 

 

 

 

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.

Additional Highlights

  • Managed commercial portfolio leased percentage of 92%, up from 87% in FY22; produced in-place rent growth of 2% vs. prior year and leased a total of approximately 273,000 sqft. of commercial space in FY23.
  • Managed residential portfolio leased percentage of 97%, up from 88% in 2022; produced in-place rent growth of 8% vs. prior year and leased over 700 units in FY23.
  • Recognized $4.8 million incentive fee revenue, a 23% increase from FY22.
  • Completed strategic acquisition of Comstock 41 investment property in Q423.
  • Continued exponential growth of parking management portfolio, including a 50% increase in top-line revenue and 20% growth in average contract value vs. prior year.
  • Welcomed Thomas Holly and 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 that includes approximately 10 million square feet of stabilized, under construction, and planned assets that are strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in 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. You should not place any undue reliance on any forward-looking statement, which speaks only as of the date made. Any number of important factors could cause actual results to differ materially from those projected or suggested by the forward-looking statements. 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)

   

December 31,

 

December 31,

 

 

2023

 

 

 

2022

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

18,788

 

 

$

11,722

 

Accounts receivable, net

 

496

 

 

 

504

 

Accounts receivable - related parties

 

4,749

 

 

 

3,291

 

Prepaid expenses and other current assets

 

353

 

 

 

264

 

Total current assets

 

24,386

 

 

 

15,781

 

Fixed assets, net

 

478

 

 

 

421

 

Intangible assets

 

144

 

 

 

144

 

Leasehold improvements, net

 

89

 

 

 

119

 

Investments in real estate ventures

 

7,077

 

 

 

7,013

 

Operating lease assets

 

6,790

 

 

 

7,625

 

Deferred income taxes, net

 

10,885

 

 

 

11,355

 

Deferred compensation plan assets

 

53

 

 

 

 

Other assets

 

37

 

 

 

15

 

Total assets

$

49,939

 

 

$

42,473

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accrued personnel costs

$

4,681

 

 

$

4,959

 

Accounts payable and accrued liabilities

 

838

 

 

 

742

 

Current operating lease liabilities

 

854

 

 

 

791

 

Total current liabilities

 

6,373

 

 

 

6,492

 

Deferred compensation plan liabilities

 

77

 

 

 

 

Operating lease liabilities

 

6,273

 

 

 

7,127

 

Total liabilities

 

12,723

 

 

 

13,619

 

 

 

 

 

Stockholders' equity:

 

 

 

Class A common stock

 

94

 

 

 

93

 

Class B common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

202,112

 

 

 

201,535

 

Treasury stock

 

(2,662

)

 

 

(2,662

)

Accumulated deficit

 

(162,330

)

 

 

(170,114

)

Total stockholders' equity

 

37,216

 

 

 

28,854

 

Total liabilities and stockholders' equity

$

49,939

 

 

$

42,473

 

COMSTOCK HOLDING COMPANIES, INC.

Consolidated Statements of Operations

(Unaudited; In thousands, except per share data)

   

 

Three Months Ended
December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Revenue

$

11,016

 

 

$

9,302

 

 

$

44,721

 

 

$

39,313

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

8,479

 

 

 

7,259

 

 

 

33,040

 

 

 

29,371

 

Selling, general, and administrative

 

594

 

 

 

391

 

 

 

2,305

 

 

 

1,784

 

Depreciation and amortization

 

 

 

 

57

 

 

 

212

 

 

 

206

 

Total operating costs and expenses

 

9,073

 

 

 

7,707

 

 

 

35,557

 

 

 

31,361

 

Income (loss) from operations

 

1,943

 

 

 

1,595

 

 

 

9,164

 

 

 

7,952

 

Other income (expense):

 

 

 

 

 

 

 

Interest income (expense), net

 

96

 

 

 

 

 

 

96

 

 

 

(222

)

Gain (loss) on real estate ventures

 

(467

)

 

 

(117

)

 

 

(1,187

)

 

 

121

 

Other income (expense), net

 

31

 

 

 

 

 

 

79

 

 

 

2

 

Income (loss) from continuing operations before income tax

 

1,603

 

 

 

1,478

 

 

 

8,152

 

 

 

7,853

 

Provision for (benefit from) income tax

 

(267

)

 

 

167

 

 

 

368

 

 

 

125

 

Net income (loss) from continuing operations

 

1,870

 

 

 

1,311

 

 

 

7,784

 

 

 

7,728

 

Net income (loss) from discontinued operations, net of tax

 

 

 

 

(5

)

 

 

 

 

 

(381

)

Net income (loss)

$

1,870

 

 

$

1,306

 

 

$

7,784

 

 

$

7,347

 

Impact of Series C preferred stock redemption

 

 

 

 

 

 

 

 

 

 

2,046

 

Net income (loss) attributable to common stockholders

$

1,870

 

 

$

1,306

 

 

$

7,784

 

 

$

9,393

 

  

 

 

 

 

 

 

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

9,653

 

 

 

9,470

 

 

 

9,629

 

 

 

8,974

 

Diluted

 

10,169

 

 

 

10,055

 

 

 

10,108

 

 

 

9,575

 

  

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic - Continuing operations

$

0.19

 

 

$

0.14

 

 

$

0.81

 

 

$

1.09

 

Basic - Discontinued operations

 

 

 

 

 

 

 

 

 

 

(0.04

)

Basic net income (loss) per share

$

0.19

 

 

$

0.14

 

 

$

0.81

 

 

$

1.05

 

  

 

 

 

 

 

 

 

Diluted - Continuing operations

$

0.18

 

 

$

0.13

 

 

$

0.77

 

 

$

1.02

 

Diluted - Discontinued operations

 

 

 

 

 

 

 

 

 

 

(0.04

)

Diluted net income (loss) per share

$

0.18

 

 

$

0.13

 

 

$

0.77

 

 

$

0.98

 

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
December 31,

 

Year Ended December 31,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net income (loss) from continuing operations

$

1,870

 

 

$

1,311

 

 

$

7,784

 

 

$

7,728

 

Interest (income) expense, net

 

(96

)

 

 

 

 

 

(96

)

 

 

222

 

Income taxes

 

(267

)

 

 

167

 

 

 

368

 

 

 

125

 

Depreciation and amortization

 

 

 

 

57

 

 

 

212

 

 

 

206

 

Stock-based compensation

 

191

 

 

 

205

 

 

 

968

 

 

 

834

 

(Gain) loss on real estate ventures

 

467

 

 

 

117

 

 

 

1,187

 

 

 

(121

)

Adjusted EBITDA

$

2,165

 

 

$

1,857

 

$

10,423

 

 

$

8,994

 

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 in real estate ventures.

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.

Contacts

Investor Contact
Christopher Guthrie
Executive Vice President & Chief Financial Officer
cguthrie@comstock.com
703-230-1292

Media Contact
publicrelations@comstock.com
301-785-6327

Release Summary

Comstock releases fourth quarter and fiscal year 2023 results

Social Media Profiles

Contacts

Investor Contact
Christopher Guthrie
Executive Vice President & Chief Financial Officer
cguthrie@comstock.com
703-230-1292

Media Contact
publicrelations@comstock.com
301-785-6327