Comstock Holding Companies, Inc. Reports First Quarter 2014 Results *1Q homebuilding revenue totaled $7.8 million on 19 deliveries *Backlog doubles to 41 units valued at $18.5 million compared to a year earlier *Community count of 11 at quarter-end 2014 compared to 5 a year earlier Business Wire RESTON, Va. -- May 15, 2014 Comstock Holding Companies, Inc. (NASDAQ:CHCI) (“Comstock” or the “Company”), a leading homebuilding and multi-faceted real estate development and services company focused on the Washington, D.C. metropolitan area, today announced results for the first quarter ended March 31, 2014. Chairman and CEO Christopher Clemente commented, “As noted in our year-end press release on March 28, 2014, unusually harsh winter conditions delayed development and construction activities and impacted Comstock’s deliveries and revenue for the first quarter. However, in spite of the weather conditions, sales during the first quarter of this year kept pace with the strong sales we experienced during the same period last year. Comstock generated 32 new orders valued at approximately $14 million during the first quarter of this year compared to 33 sales valued at $15.2 million during the same period last year. Sales during the first quarter of this year expanded our backlog as of quarter end to 41 units, valued at $18.5 million, as compared to 21 units, valued at $9.2 million, as of March 31, 2013.Our open community count stands at 11, up from five at the same time last year. Based on continued healthy activity in the market, a limited supply of existing homes listed for sale, and our expanded pipeline of building lots, we believe Comstock is well positioned to capitalize on the favorable market trends in the Washington, D.C. region.” First Quarter 2014 Financial Results Net new orders of homes totaled 32 for the three months ended March 31, 2014 compared to 33 in the same period last year. Backlog totaled 41 units (representing $18.5 million in revenue) as of March 31, 2014 compared to 21 units (representing $9.2 million in revenue) as of March 31, 2013. Average backlog price increased to $452,000 from $439,000 in the same period last year. Total revenue for the first quarter of 2014 totaled $8.0 million ($7.8 million from 19 home settlements) compared to $11.6 million for the 2013 first quarter ($11.4 million from 21 home settlements). The Company reported a consolidated net loss of $0.8 million for the first quarter of 2014 compared to net income of $1.1 million for the 2013 period. In the first quarter of 2014, net loss attributable to Comstock Holding Companies totaled $1.6 million, or $0.08 per diluted share, compared to net income of $0.7 million, or $0.03 per diluted share, in the prior-year period. The 2013 period included the reversal of a $0.7 million impairment charge reflecting increased sales activity at the Company’s Eclipse project in Arlington, VA. 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 more than 5,500 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 residential developer and homebuilder in theWashington, 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: 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, 2013. 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. Exhibit 1 Settled Revenue by Community Three Months Ended March 31, 2014 (000’s) Community Settled Settled Revenue Villas as Eastgate 1 $ 351 City Homes at the Hampshires 2 1,480 Townes at the Hampshires 6 3,063 Townes at Falls Grove 10 2,937 Total 19 $ 7,831 Exhibit 2 Backlog by Community Three Months Ended March 31, 2014 (000’s) Community Backlog Backlog Units Revenue Villas at Eastgate 10 $ 3,964 City Homes at the Hampshires 1 747 Townes at the Hampshires 6 3,343 Townes at Falls Grove 11 3,317 Townes at Maxwell Square 4 1,635 Townes at Shady Grove Metro 9 5,524 Total 41 $ 18, 530 COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share data) March 31, December 31, 2014 2013 ASSETS (unaudited) Cash and cash equivalents $ 7,363 $ 11,895 Restricted cash 2,764 2,458 Trade receivables 523 346 Real estate inventories 41,075 39,843 Property, plant and equipment, net 223 243 Other assets 2,162 2,094 TOTAL ASSETS $ 54,110 $ 56,879 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued liabilities $ 7,139 $ 7,506 Notes payable - secured by real estate 23,481 22,701 inventories Notes payable - due to affiliates, unsecured 4,575 4,687 Notes payable - unsecured 2,451 2,580 Income taxes payable 144 346 TOTAL LIABILITIES 37,790 37,820 Commitments and contingencies (Note 8) - - STOCKHOLDERS’ EQUITY Class A common stock, $0.01 par value, 77,266,500 shares authorized, 18,780,754 and 18,629,638 issued and outstanding, 188 186 respectively Class B common stock, $0.01 par value, 2,733,500 shares authorized, issued and 27 27 outstanding Additional paid-in capital 171,030 170,811 Treasury stock, at cost (426,633 shares (2,480 ) (2,480 ) Class A common stock) Accumulated deficit (165,958 ) (164,379 ) TOTAL COMSTOCK HOLDING COMPANIES, INC. 2,807 4,165 EQUITY Non-controlling interest 13,513 14,894 TOTAL EQUITY 16,320 19,059 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 54,110 $ 56,879 COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) For the three months ended March 31, 2014 2013 Revenues Revenue—homebuilding $ 7,831 $ 11,396 Revenue—other 123 161 Total revenue 7,954 11,557 Expenses Cost of sales—homebuilding 6,256 8,796 Cost of sales—other 93 221 Impairment reversal - (722 ) Sales and marketing 538 446 General and administrative 1,889 1,555 Interest, real estate taxes and indirect costs related to inactive 2 226 projects Operating (loss) income (824 ) 1,035 Other income, net 55 27 Loss (income) before income tax (769 ) 1,062 expense Income tax expense (74 ) - Net (loss) income (843 ) 1,062 Less: Net income attributable to 736 339 non-controlling interests Net (loss) income attributable to $ (1,579 ) $ 723 Comstock Holding Companies, Inc. Basic net (loss) income per share $ (0.08 ) $ 0.04 Diluted net (loss) income per share $ (0.08 ) $ 0.03 Basic weighted average shares 20,935 20,524 outstanding Diluted weighted average shares 20,935 21,717 outstanding COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands, except per share data) Three Months Ended March 31, 2014 2013 Cash flows from operating activities: Net (loss) income $ (843 ) $ 1,062 Adjustment to reconcile net (loss) income to net cash used in operating activities Amortization of loan discount and deferred 69 166 financing fees Depreciation expense 24 11 Provision for bad debt - 7 Undistributed earnings from unconsolidated 34 - joint venture Impairment reversal - (722 ) Amortization of stock compensation 134 171 Changes in operating assets and liabilities: Restricted cash (199 ) (104 ) Trade receivables (177 ) (76 ) Real estate inventories (1,216 ) 3,160 Other assets (171 ) (148 ) Accrued interest 194 107 Accounts payable and accrued liabilities (238 ) 445 Income taxes payable (202 ) - Net cash (used in) provided by operating (2,591 ) 4,079 activities Cash flows from investing activities: Investment in unconsolidated joint venture - - Purchase of property, plant and equipment (4 ) (26 ) Restricted cash (107 ) - Proceeds from sale of Cascades Apartments - - 274 operating real estate, net Net cash (used in) provided by investing (111 ) 248 activities Cash flows from financing activities: Proceeds from notes payable 5,405 9,301 Payments on notes payable (5,060 ) (14,744 ) Loan financing costs - (83 ) Distributions to non-controlling interests (2,117 ) - Contributions from non-controlling interests - 6,995 Proceeds from exercise of stock options - - Taxes paid related to net share settlement of (58 ) - equity awards Net cash (used in) provided by financing (1,830 ) 1,469 activities Net (decrease) increase in cash and cash (4,532 ) 5,796 equivalents Cash and cash equivalents, beginning of 11,895 3,539 period Cash and cash equivalents, end of period $ 7,363 $ 9,335 Supplemental disclosure for non-cash activity: Interest paid, net of interest capitalized $ (263 ) $ (30 ) Increase in class A common stock par value in connection with vesting and issuance of stock $ 2 $ 6 compensation Accrued liability settled through issuance of $ 129 $ - stock Contact: Company: Comstock Holding Companies, Inc. Joe Squeri, 703-230-1229 Chief Financial Officer or Investor Relations: LHA Jody Burfening / Harriet Fried, 212-838-3777 firstname.lastname@example.org
Comstock Holding Companies, Inc. Reports First Quarter 2014 Results
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