Comstock Homebuilding Companies, Inc. Reports Results for Three and Twelve Months Ended December 31, 2011
March 30 2012 - 6:13PM
Comstock Homebuilding Companies, Inc. (Nasdaq:CHCI) ("Comstock" or
the "Company"), a multi-faceted real estate development and
services company focused on the Washington, D.C. metropolitan area,
announced a net loss for its fourth quarter ended December 31, 2011
of $(2.7) million or $(0.14) per basic and diluted share, compared
to a net loss for its fourth quarter ended December 31, 2010 of
$(1.5) million or $(0.09) earnings per basic and diluted share.
Total revenue for the fourth quarter of 2011 was $6.3 million
compared to $2.7 million for the comparable 2010 quarter.
For the year ended December 31, 2011, the Company reported a net
income of $1.1 million or $0.05 per basic and diluted share
compared to a net loss of $(7.7) million or $(0.42) per basic and
diluted share for the year ended December 31, 2010. Included in the
2011 results was a gain related to a legal settlement of $9.4
million. Total revenue for the year ended December 31, 2011 was
$22.2 million as compared to $23.9 million for the year ended
December 31, 2010. Cash flow from operating activities was $12.7
million for 2011 compared to $15.4 million for 2010.
Notable Events and Accomplishments
The Company announced the following business updates in its
Multi-family and Homebuilding divisions during 2011 and into the
first quarter of 2012:
- On March 7, 2012, Comstock Cascades II L.C., an entity in which
the Company has a controlling interest, closed on the previously
announced sale of the Potomac Square Apartment project
for a total purchase price of $19.35 million. After repayment
of the construction loan, guarantor credit enhancement fees,
minority investor's equity and preferred return, current net
proceeds to the Company were approximately $4.7 million.
Comstock's multi-family division constructed the Class A apartment
project within the Cascades master planned community located
in Loudoun County, Virginia. Construction began during
the first quarter of 2011 and was substantially completed in the
fourth quarter of 2011. Cardinal Bank of Tysons Corner,
Virginia provided a $10.5 million construction loan
for the project.
- The Company announced that its multi-family division has
secured development rights for a new apartment community to be
known as Boulevard on Newell located proximate to the Silver Spring
Metro rail station in downtown Silver Spring, Maryland. The
Company has initiated the process of securing rezoning and land
development permits for the planned multi-family project and
expects to commence development in early 2014.
- The Company announced that during Q1-2012 its Homebuilding unit
secured building permits and broke ground on a model home at The
Hampshires, a 110 unit new home community located within the
Lamond-Riggs neighborhood on New Hampshire Avenue, in the
Northeast quadrant of Washington, D.C. The Hampshires is
located proximate to two Metro rail stations just inside
the Washington, D.C.-Maryland border. Sales of the 37
single-family homes and 73 townhomes at The Hampshires are expected
to commence in mid-2012 with prices expected to start from the
$400's for the townhomes and the $600's for the
single-family homes.
- The Company announced that during Q1-2012 its Homebuilding unit
has purchased land and secured preliminary approvals for a new
community to be known as Falls Grove located in
northern Prince William County near Centreville,
Virginia. The property will be developed with 110 townhouses
and 19 single family homes with prices expected to start from
the $200's for the townhomes and the $400's for the
single-family homes. The Company anticipates development to
commence in mid-2012 and unit sales to commence in the second half
of 2012.
Additional noteworthy accomplishments include:
- During 2011, the Company continued to monetize existing
inventory at the Eclipse condominium project, where it settled 17
units reducing remaining inventory to 27 units (out of a total of
465 units) and at the Penderbrook Square condominium project where
it settled 29 units reducing remaining inventory to 39 (out of a
total of 424 units)
- The Company's overall liquidity and financial performance
improved during the year. Overall unrestricted cash increased
to $5.6 million as of December 31, 2011 from $0.5 million as of
December 31, 2010. Total book equity increased to $12.5 million as
of December 31, 2011 from $6.7 million as of December 31,
2010. The settlement of the Balfour lawsuit, new financings
and cash flow from our continuing operations contributed to the
ongoing improvement in the financial condition of the Company.
"The Company made significant strides in its homebuilding and
apartment operations during 2011," said Christopher Clemente,
Chairman and CEO. "Our improved liquidity and balance sheet has
enhanced our ability to pursue additional opportunities and we look
forward to a successful 2012."
About Comstock Homebuilding Companies, Inc.
Comstock is a multi-faceted real estate development and services
company. Our substantial experience in building a diverse range of
products including single-family homes, townhouses, mid-rise
condominiums, high-rise condominiums and mixed-use (residential and
commercial) developments has positioned Comstock as a prominent
real estate developer and homebuilder in the Washington,
D.C. metropolitan area. Comstock Homebuilding Companies, Inc.
trades on the NASDAQ Capital Market exchange under the symbol CHCI.
For more information on the Company or its projects please visit
www.comstockhomebuilding.com
The Comstock Homebuilding Companies, Inc. logo is
available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5034
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 including incurring
substantial indebtedness with respect to projects, the diversion of
management's attention and other negative consequences. 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. 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 HOMEBUILDING
COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(Amounts in thousands,
except per share data) |
|
|
December 31,
2011 |
December 31,
2010 |
ASSETS |
|
|
Cash and cash equivalents |
$ 5,639 |
$ 475 |
Restricted cash |
3,082 |
5,201 |
Trade receivables |
2,228 |
392 |
Real estate held for development and
sale |
21,212 |
34,008 |
Operating real estate, net |
12,095 |
-- |
Property, plant and equipment, net |
105 |
50 |
Other assets |
2,018 |
802 |
|
|
|
TOTAL ASSETS |
$ 46,379 |
$ 40,928 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
LIABILITIES |
|
|
|
|
|
Accounts payable and accrued
liabilities |
$ 3,987 |
$ 5,884 |
Notes payable - secured by real estate
held for development and sale, net of discount |
10,541 |
18,853 |
Notes payable - secured by operating real
estate |
9,957 |
-- |
Notes payable - due to affiliates,
unsecured |
5,008 |
5,008 |
Notes payable - unsecured |
4,309 |
4,515 |
Income taxes payable |
33 |
-- |
|
|
|
TOTAL LIABILITIES |
33,835 |
34,260 |
|
|
|
Commitments and contingencies (Note
15) |
-- |
-- |
SHAREHOLDERS' EQUITY |
|
|
Class A common stock, $0.01 par
value, 77,266,500 shares authorized, 17,944,503 and 17,120,467
issued and outstanding, respectively |
179 |
171 |
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 |
168,620 |
166,700 |
Treasury stock, at cost (391,400 shares
Class A common stock) |
(2,439) |
(2,439) |
Accumulated deficit |
(156,684) |
(157,791) |
|
|
|
TOTAL COMSTOCK HOMEBUILDING EQUITY |
9,703 |
6,668 |
Non-controlling interest |
2,841 |
-- |
|
|
|
TOTAL EQUITY |
12,544 |
6,668 |
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
$ 46,379 |
$ 40,928 |
|
|
|
|
COMSTOCK HOMEBUILDING
COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF OPERATIONS |
(Amounts in thousands,
except per share data) |
|
|
Twelve Months Ended December 31, |
|
2011 |
2010 |
Revenues |
|
|
Revenue - homebuilding |
$ 14,062 |
$ 19,070 |
Revenue - other |
8,147 |
4,781 |
Total revenue |
22,209 |
23,851 |
Expenses |
|
|
Cost of sales - homebuilding |
12,160 |
19,186 |
Cost of sales - other |
7,825 |
4,011 |
Impairments and write-offs |
-- |
1,548 |
Selling, general and administrative |
7,443 |
5,606 |
Interest, real estate taxes and indirect
costs related to inactive projects |
3,102 |
2,224 |
Operating loss |
(8,321) |
(8,724) |
Gain on troubled debt restructuring |
(219) |
-- |
Gain on legal settlement, net |
(9,434) |
-- |
Other income, net |
(299) |
(1,037) |
Total pre tax income (loss) |
1,631 |
(7,687) |
Income taxes expense |
33 |
11 |
Net income (loss) from continuing
operations |
1,598 |
(7,698 ) |
Less: Net income attributable to
non-controlling interests |
491 |
-- |
Net income (loss) attributable to Comstock
Homebuilding Companies, Inc. |
$ 1,107 |
$ (7,698) |
|
|
|
Basic income(loss) per share |
$ 0.05 |
$ (0.42) |
Diluted income(loss) per share |
$ 0.05 |
$ (0.42) |
|
|
|
Basic weighted average shares
outstanding |
20,287 |
18,313 |
Diluted weighted average shares
outstanding. |
20,720 |
18,313 |
|
|
|
|
COMSTOCK
HOMEBUILDING COMPANIES, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS
OF CASH FLOWS |
(Amounts in thousands,
except per share data) |
|
|
Twelve Months Ended December 31, |
|
2011 |
2010 |
Cash flows from operating activities: |
|
|
Net income (loss) |
$ 1,598 |
$ (7,698) |
Adjustment to reconcile net income (loss)
to net cash provided by operating activities |
|
|
Amortization of loan discount and
deferred financing fees |
1,444 |
-- |
Depreciation expense |
196 |
98 |
Provision for bad debt |
1 |
(13) |
Impairments and write-offs |
-- |
1,548 |
Amortization of stock compensation |
932 |
704 |
Gain on debt restructuring |
(219) |
-- |
Gain on trade payable settlements |
(161) |
(860) |
Changes in operating assets and
liabilities: |
|
|
Restricted cash |
19 |
(1,952) |
Trade receivables |
(1,837) |
(405) |
Real estate held for development and
sale |
10,292 |
19,927 |
Other assets |
(678) |
1,187 |
Accrued interest |
752 |
-- |
Accounts payable and accrued
liabilities |
364 |
2,856 |
Income taxes payable |
33 |
-- |
|
|
|
Net cash provided by operating
activities |
12,736 |
15,392 |
|
|
|
Cash flows from investing activities: |
|
|
Investment in construction in process and
operating real estate |
(9,764) |
-- |
Purchase of property, plant and
equipment |
(78) |
(4) |
|
|
|
Net cash used in investing
activities |
(9,842) |
(4) |
|
|
|
Cash flows from financing activities: |
|
|
Proceeds from notes payable |
38,908 |
823 |
Payments on notes payable |
(38,436) |
(17,649) |
Loan financing costs |
(1,548) |
-- |
Proceeds from SunBridge warrant
issuance |
996 |
-- |
Proceeds from warrant exercise |
-- |
828 |
Proceeds from Cascades Private
Placement |
2,350 |
-- |
|
|
|
Net cash provided by (used in) financing
activities |
2,270 |
(15,998) |
|
|
|
Net increase (decrease) in cash and cash
equivalents |
5,164 |
(610) |
Cash and cash equivalents, beginning of
period |
475 |
1,085 |
|
|
|
Cash and cash equivalents, end of period |
$ 5,639 |
$ 475 |
CONTACT: Joe Squeri
Chief Financial Officer
703.230.1229
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