Comstock Homebuilding Companies, Inc. Announces Purchase of Parker Chandler Homes
Comstock will maintain the Parker Chandler brand in the markets where
Parker Chandler operates. The founding principals of Parker Chandler Homes,
James Parker and Andrew Chandler will join Comstock's management team. James
Parker has been named Regional President of the Mid-South Division and Andrew
Chandler was named Regional Vice President of Land Acquisition and Development
of the Mid-South Division. Headquartered in Forsyth, Georgia, Parker Chandler
currently operates in North Atlanta and has growing operations in Charlotte,
N.C. and Myrtle Beach, S.C. Parker Chandler builds mostly single family homes
focused on the $200,000 to $500,000 price range. The Parker Chandler
acquisition is projected to generate approximately $75 million in total
revenue for the Company in 2006.
Comstock reported that there was no common stock issued in connection with
the acquisition and it does not expect to record any goodwill in connection
with the transaction. Based on post-closing purchase accounting adjustments in
the carrying cost of the acquired assets to fair market value, the acquisition
is expected to be profitable in 2006 and is expected to contribute positively
to the Company's published estimates for 2006.
"We are extremely excited about this acquisition and we are thrilled to
have James Parker, Andrew Chandler and their team joining the Comstock team,"
said Christopher Clemente, Chairman and CEO. "Parker Chandler Homes' focus on
middle market products in strong homebuilding markets is well aligned with
Comstock's strategy vision for growth. James and Andrew have more than 30
years combined experience building quality homes in the Atlanta marketplace.
We believe Atlanta is a good market with strong fundamentals to support
continued growth, and we are confident that Parker Chandler has a land
presence in Atlanta that is well aligned with market demand. Comstock will
continue to expand operations in the strongest markets in the Mid-Atlantic,
Mid-South and Southeast, and I hope to be in a position to announce additional
strategic acquisitions during the remainder of this year. This diversification
strategy will help balance the effects on our business from changing market
conditions in the Washington, D.C. market."
"We are excited to become a Comstock Homebuilding Company," said James
Parker, the President of Parker Chandler Homes. "The financial strength,
diverse range of product capabilities and entrepreneurial spirit of the
Comstock organization will help Parker Chandler Homes execute on our vision of
becoming a leading urban and suburban homebuilder in the Atlanta market and in
other strong markets in the southeast."
About Comstock Homebuilding Companies, Inc.
Comstock is a production homebuilder and real estate developer that
develops, builds, and markets single-family homes, townhouses, mid-rise
condominiums and high-rise condominiums. The Company currently builds in the
Southeast with concentrations in the Washington, D.C., North Carolina, South
Carolina and Atlanta, Georgia markets. The Company targets a diverse range of
buyers, including first-time, early move-up, secondary move-up, empty nester
move-down and active adult home buyers. For more information on Comstock
Homebuilding Companies, Inc., please visit
http://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. Statements that are predictive in nature, that depend upon or refer
to future events or conditions, or that include words such as "may," "will,"
"expects," "projects," "anticipates," "estimates," "believes," "intends,"
"plans," "should," "seeks," and similar expressions, including statements
related to Comstock's expected future financial results and anticipated growth
in the Washington, D.C. housing market, are forward-looking statements.
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. These risks and
uncertainties include, but are not limited to, economic, market and
competitive conditions affecting Comstock and its operations and products,
risks and uncertainties relating to the market for real estate generally and
in the areas where Comstock has projects, the availability and price of land
suitable for development, materials prices, labor costs, interest rates,
Comstock's ability to service its significant debt obligations, fluctuations
in operating results, anticipated growth strategies, continuing relationships
with affiliates, environmental factors, government regulations, the impact of
adverse weather conditions or natural disasters and acts of war or terrorism.
Additional information concerning these and other important risks and
uncertainties can be found under the heading "Risk Factors" in the prospectus
from Comstock's initial public offering, as filed with the Securities and
Exchange Commission on December 15, 2004. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
SOURCE Comstock Homebuilding Companies, Inc.
CONTACT: Bruce Labovitz, Chief Financial Officer, +1-703-883-1700 ext.
131, blabovitz@comstockhomebuilding.com, or Reid Kasprowicz, Investors
Relations, +1-703-883-1700 ext 106, rkasprowicz@comstockhomebuilding.com, both
of Comstock Homebuilding Companies, Inc.