WASHINGTON & RESTON, Va.--(BUSINESS WIRE)-- Comstock Holding Companies, Inc., (NASDAQ:CHCI), announced results for the three and nine month periods ended September 30, 2016:
Highlights of Third Quarter 2016:
Unit deliveries of 33, generating homebuilding revenue of $12.9 million for the three months ended September 30, 2016 compared to unit deliveries of 24 generating $12.0 million of homebuilding revenue for the same period in 2015;
Unit deliveries of 76, generating homebuilding revenue of $32.1 million for the nine months ended September 30, 2016 compared to unit deliveries of 70 generating $34.2 million of homebuilding revenue for the same period in 2015;
Controlled community count and open community count of 15 and 12, respectively, at September 30, 2016 compared to 19 and 10, respectively at September 30, 2015;
Comstock has begun development and sales of three new projects in Virginia, Maryland, and Washington, D.C. during recent months, which collectively represent more than $52 million of potential future revenues;
During the Quarter, the Company completed its most recent private placement offering, Comstock Investors X, L.C., providing $14.5 million of new capital at a fixed preferred return of 6%. This capital will be utilized in connection with the development of certain projects scheduled to begin generating revenue in 2017.
The Company recognized impairment recoveries of $0.7 million, related to the recovery of previously written off land contract deposits, and write-offs of $0.8 million, related to deposits and entitlement costs determined to be non-recoverable, in the three and nine-months ended September 30, 2016.
Chairman and CEO, Christopher Clemente commented, "Our effort to reduce operating costs over the past few years has substantially rationalized overhead expenses. During the three month period ended September 30, 2016, our fixed operating costs decreased $0.6 million (33%) as compared to the same period in 2015 and for the nine months ending September 30, 2016, our fixed operating costs decreased $1.5 million (27%) as compared to the same period in 2015. These efforts together with the lower cost of capital provided through recent private placement offerings, position Comstock to enhance results in future periods."
COMSTOCK COMMUNITIES NOW OPEN
Comstock currently has 12 communities open for sale in Virginia, Maryland, and Washington, D.C., priced from the high $200s to the $900s. For further details on the open communities, see the attached Pipeline Report as of September 30, 2016 and the Form 10-Q filed by the company on November 14, 2016 or visit www.ComstockHomes.com.
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 more than 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.
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.
Cash and cash equivalents $ 2,464 $ 12,448
Restricted cash 2,556 2,566
Real estate inventories 48,189 38,223
Other assets, net
TOTAL ASSETS $
Accounts payable and accrued liabilities $ 12,155 $ 7,638
Notes payable - secured by real estate inventories 24,848 24,823
Notes payable - due to affiliates, unsecured, net of discount 15,763 19,028
Notes payable - unsecured 1,161 1,548
Income taxes payable 21 -
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock $0.01 par value, 824,058 and 772,210 shares issued
and liquidation preference of $4,120 and $3,861 at
September 30, 2016 and December 31, 2015, respectively $ 1,252 $ 1,174
Class A common stock, $0.01 par value, 11,038,071 shares authorized, 3,028,225
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
) (175,785 )
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT
) (1,276 )
Non-controlling interests 8,389 6,717
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue—homebuilding $ 12,880 $ 12,043 $ 32,102 $ 34,168
Revenue—other 223 245 685 1,001
Total revenue 13,103 12,288 32,787 35,169
Cost of sales—homebuilding 11,985 10,749 29,815 29,933
Cost of sales—other 85 103 329 456
Impairment charges and recovery, net
Sales and marketing 427 498 1,313 1,412
General and administrative 1,236 1,853 4,151 5,686
Interest and real estate tax expense 133 100 655 426
Operating loss
Other income, net 98 28 119 802
Loss before income tax expense
) (987 )
Income tax expense - (36 ) (57 ) (23 )
Net loss
Net income attributable to non-controlling interests 290 68 1,174 877
Net loss attributable to Comstock Holding Companies, Inc.
Paid-in-kind dividends on Series B Preferred Stock 87 - 259 -
Net loss attributable to common stockholders $
) $ (1,091 ) $
) $ (2,842 )
Basic net loss per share $
) $ (0.33 ) $
) $ (0.90 )
Diluted net loss per share $
Diluted weighted average shares outstanding 3,326 3,284 3,317 3,166
Pipeline Report as of September 30, 2016
Project State
Units at
Backlog (8)
Units Under
Owned,
Unsettled and
Revenue Per
Unit to Date
City Homes at the Hampshires DC SF 38 38 - - - - $ 747
Townes at the Hampshires (3) DC TH 73 73 - - - - $ 551
Estates at Falls Grove VA SF 19 16 2 1 - 3 $ 543
Townes at Falls Grove VA TH 110 78 3 29 - 32 $ 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 5 1 - 6 $ 431
Townes at Maxwell Square MD TH 45 45 - - - - $ 421
Townes at Hallcrest VA TH 42 27 13 2 - 15 $ 463
Estates at Leeland VA SF 24 2 8 14 - 22 $ 460
Villas | Preserve at Two Rivers 28' MD TH 6 4 1 1 - 2 $ 454
Villas | Preserve at Two Rivers 32' MD TH 10 9 1 - - 1 $ 507
Marrwood East (7) VA SF 35 - 2 33 - 35 $ 637
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 21 - - 21 - 21 $ -
Total 872 399 35 280 158 473
(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.
(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.
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Christopher Conover, 703-230-1985
Jody Burfening / Harriet Fried, 212-838-3777