SOURCE: Comstock Homebuilding Companies, Inc.

Comstock Homebuilding Companies, Inc.

August 17, 2009 10:38 ET

Comstock Homebuilding Companies, Inc. Reports Results for Three and Six Months Ended June 30, 2009

RESTON, VA--(Marketwire - August 17, 2009) - Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company") today released its unaudited results for the three and six months ended June 30, 2009. In connection therewith, the Company filed a Form 10-Q with the Securities and Exchange Commission. The Company's 2009 second quarter results are highlighted as follows:

For the three months ended June 30, 2009, the Company reported a net loss of $27.7 million or ($1.58) per share basic and diluted on total revenue of $3.0 million compared to a net loss of $16.6 million or ($1.00) per share basic and diluted on total revenue of $12.0 million for the three months ended June 30, 2008. In connection with these results, the Company announced that it had elected to record a non-cash impairment and write-off charge of $22.9 million for the three months ended June 30, 2009, compared to a $13.7 million non-cash impairment and write-off charge for the three months ended June 30, 2008.

For the six months ended June 30, 2009, the Company reported a net loss of $30.4 million or ($1.73) per share basic and diluted on total revenue of $8.5 million, compared to a net loss of $10.1 million or ($0.61) per share basic and diluted on total revenue of $28.4 million for the six months ended June 30, 2008. In connection with these results, the Company recorded a non-cash impairment and write-off charge of $22.9 million for the six months ended June 30, 2009 as compared to a $14.6 million charge for the six months ended June 30, 2008.

The Company reported the following orders, cancellations and backlog for the three and six months ended June 30, 2009:

                                       Three months ended June 30, 2009
                                    ---------------------------------------
                                    Washington   North
                                    Metro Area Carolina   Georgia   Total
                                    ---------- ---------  -------  --------
Gross new orders                            22         -        -        22
Cancellations                                5         3        1         9
Net new orders                              17        (3)      (1)       13
Gross new order revenue             $    5,396 $       -  $     -  $  5,396
Cancellation revenue                $    1,669 $     570  $   386  $  2,625
Net new order revenue               $    3,727 $    (570) $  (386) $  2,771
Average gross new order price       $      245 $       -  $     -  $    245
Settlements                                  6         2        -         8
Settlement revenue - homebuilding   $    1,777 $     359  $     -  $  2,136
Average settlement price            $      296 $     180  $     -  $    267
Backlog units                               18         7        -        25
Backlog revenue                     $    4,138 $   2,053  $     -  $  6,191
Average backlog price               $      230 $     293  $     -  $    248



                                        Six months ended June 30, 2009
                                    ---------------------------------------
                                    Washington   North
                                    Metro Area Carolina   Georgia   Total
                                    ---------- ---------- -------  --------
Gross new orders                            34         13       -        47
Cancellations                                5          6       1        12
Net new orders                              29          7      (1)       35
Gross new order revenue             $   11,009 $    2,319 $     -  $ 13,328
Cancellation revenue                $    1,669 $    1,093 $   386  $  3,148
Net new order revenue               $    9,340 $    1,226 $  (386) $ 10,180
Average gross new order price       $      324 $      178 $     -  $    284
Settlements                                 14          6       -        20
Settlement revenue - homebuilding   $    5,936 $      926 $     -  $  6,862
Average settlement price            $      424 $      154 $     -  $    343
Backlog units                               18          7       -        25
Backlog revenue                     $    4,138 $    2,053 $     -  $  6,191
Average backlog price               $      230 $      293 $     -  $    248


Additional results for the three months ended June 30, 2009 include:

--  At June 30, 2009, the Company's reported shareholder equity was $0.4
    million or $0.02 per share based on 17.6 million shares issued and
    outstanding.
--  Cash on hand at June 30, 2009 was $1.0 million.
--  Gross profit on all revenue was $0.5 million, representing a gross
    margin of 16.5% on all revenue, compared to $1.5 million or 12.1% for the
    three months ended June 30, 2008.
--  Gross profit from homebuilding revenue was $0.2 million representing a
    gross margin of 9.4%, compared to gross profit from homebuilding of $1.2
    million or 10.3% for the three months ended June 30, 2008.
--  SG&A decreased by $1.9 million or 46.4% to $2.2 million, compared to
    $4.1 million for the three months ended June 30, 2008.
--  Operating loss was $26.2 million, as compared to an operating loss of
    $17.0 million for the three months ended June 30, 2008.
    

Additional results of the six months ended June 30, 2009 include:

--  Gross profit on all revenue was $1.5 million, representing a gross
    margin of 17.2% on all revenue, compared to $3.5 million or 12.2% for the
    six months ended June 30, 2008.
--  Gross profit from homebuilding was $0.8 million representing a gross
    margin of 11.4%, compared to gross profit from homebuilding of $3.2 million
    or 11.6% for the six months ended June 30, 2008.
--  SG&A decreased by $3.1 million or 41.7% to $4.4 million, compared to
    $7.5 million for the six months ended June 30, 2008.
--  Operating loss was $29.2 million as compared to an operating loss of
    $20.0 million for the six months ended June 30, 2008.
    

The Company reported that management and the Company's board of directors are continuing to work on strategic plans aimed at generating unrestricted cash flow to help secure its ability to continue operating as a going concern.

"We continue to take the steps necessary to position Comstock for a return to profitability as market conditions improve," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "We remain focused on reaching an amicable reorganization of our secured debts and we are making progress in that regard. That said the near future is a critical time for Comstock as we seek to bring to conclusion the negotiations with all of our lenders and secure our ability to continue as a going concern."

                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Revenues
  Revenue - homebuilding        $   2,136  $  11,435  $   6,862  $  27,375
  Revenue - other                     829        568      1,626      1,004
                                ---------  ---------  ---------  ---------
Total revenue                       2,965     12,003      8,488     28,379

Expenses
  Cost of sales - homebuilding      1,935     10,260      6,080     24,200
  Cost of sales - other               541        293        950        713
  Impairments and write-offs       22,938     13,746     22,938     14,577
  Selling, general and
   administrative                   2,188      4,079      4,354      7,473
  Interest, real estate taxes
   and indirect costs
   related to inactive projects     1,554        657      3,354      1,416
                                ---------  ---------  ---------  ---------

Operating loss                    (26,191)   (17,032)   (29,188)   (20,001)
Gain on troubled debt
 restructuring                          -          -          -     (8,325)
Other (income) loss, net            1,552       (413)     1,199     (1,598)
                                ---------  ---------  ---------  ---------

Total pre tax loss                (27,743)   (16,619)   (30,387)   (10,078)
Income taxes expense                    -          -          1          -
                                ---------  ---------  ---------  ---------

Net (loss) income                 (27,743)   (16,619)   (30,388)   (10,078)
Net (loss) income attributable
 to noncontrolling interest             -         (1)         -         (3)
                                ---------  ---------  ---------  ---------
Net (loss) income attributable
 to Comstock Homebuilding
 Companies, Inc                 $ (27,743) $ (16,618) $ (30,388) $ (10,075)
                                =========  =========  =========  =========

Basic loss per share            $   (1.58) $   (1.00) $   (1.73) $   (0.61)

Basic weighted average shares
 outstanding                       17,554     16,541     17,554     16,502
                                =========  =========  =========  =========

Diluted loss per share          $   (1.58) $   (1.00) $   (1.73) $   (0.61)

Diluted weighted average shares
 outstanding                       17,554     16,541     17,554     16,502
                                =========  =========  =========  =========



                                                June 30,     December 31,
                                                  2009           2008
                                              -------------  -------------
ASSETS
  Cash and cash equivalents                   $       1,043  $       5,977
  Restricted cash                                     3,878          3,859
  Real estate held for development and sale          98,409        129,542
  Inventory not owned - variable interest
   entities                                               -         19,250
  Property, plant and equipment, net                    457            830
  Other assets                                        1,542          1,402
                                              -------------  -------------
    TOTAL ASSETS                              $     105,329  $     160,860
                                              =============  =============
LIABILITIES AND SHAREHOLDERS' EQUITY
  Accounts payable and accrued liabilities    $       9,501  $       8,232
  Obligations related to inventory not owned              -         19,050
  Notes payable - secured by real estate             77,151         90,086
  Notes payable - unsecured                          18,252         12,743
                                              -------------  -------------
    TOTAL LIABILITIES                               104,904        130,111
                                              -------------  -------------
  Commitments and contingencies (Note 9)
    SHAREHOLDERS' EQUITY
  Class A common stock, $0.01 par value,
   77,266,500 shares authorized, 15,608,438
   and 15,608,438 issued and outstanding,
   respectively                                         156            156
  Class B common stock, $0.01 par value,
   2,733,500 shares authorized, 2,733,500
   issued and outstanding                                27             27
  Additional paid-in capital                        157,121        157,058
  Treasury stock, at cost (391,400 Class A
   common stock)                                     (2,439)        (2,439)
  Accumulated deficit                              (154,663)      (124,277)
                                              -------------  -------------
    TOTAL COMSTOCK HOMEBUILDING COMPANIES,
     INC SHAREHOLDERS' EQUITY                           202         30,525
  Noncontrolling interest                               223            223
                                              -------------  -------------
    TOTAL EQUITY                                        425         30,749
                                              -------------  -------------
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                   $     105,329  $     160,860
                                              =============  =============


About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly traded, diversified real estate development firm with a focus on affordably priced for-sale residential products. Comstock builds and markets single-family homes, townhouses, mid-rise condominiums, high-rise condominiums, mixed-use urban communities and active adult communities. The company currently markets its products under the Comstock Homes brand in the Washington, D.C.; Raleigh, North Carolina and Atlanta, Georgia metropolitan areas. Comstock Homebuilding Companies, Inc. trades on NASDAQ under the symbol CHCI. For more information on the Company or its projects, please visit www.comstockhomebuilding.com.

Cautionary Statement Regarding Forward-Looking Statements

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent form 10-K, as filed with the Securities and Exchange Commission on March 24, 2008. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Contact Information

  • CONTACT:
    Comstock Homebuilding Companies, Inc.
    Jeff Dauer
    703.883.1700