Comstock Homebuilding Companies, Inc. Reports 129% Growth In Settlements for 2005
For the twelve months ended December 31,
2004 2005 %Change
(number in 000s except units)
Total new orders 652 739 13.3 %
Total new order revenue 240,349 267,888 11.5 %
Average new order revenue 368.6 362.5 -1.7 %
Net new orders 608 630 3.6 %
Net new order revenue 224,200 229,924 2.6 %
Average net new order price 368.8 365.0 -1.0 %
Settlements 263 603 129.3 %
Backlog (1) 174,600 190,047 8.8 %
Backlog units (1) 453 474 4.6 %
Average backlog revenue 385.4 400.9 4.0 %
For the three months ended December 31,
2004 2005 %Change
(number in 000s except unit data)
Total new orders 128 154 20.3 %
Total new order revenue 56,949 46,560 -18.2 %
Average new order revenue 444.9 302.3 -32.0 %
Net new orders 118 110 -6.8 %
Net new order revenue 53,556 32,560 -39.2 %
Average net new order price 453.9 296.0 -34.8 %
Settlements 55 200 263.6 %
(1) 2004 Backlog includes Raleigh, NC
"As demonstrated by the significant growth we experienced in 2005 there is
tremendous opportunity in our core markets," said Christopher Clemente,
Chairman and CEO. "Nonetheless, the rate of home price appreciation in the
Washington, DC market during the past few years led to pricing resistance
which negatively impacted new order rates in the region in the fourth quarter.
Additionally, in many parts of the nation, cancellations by investors
negatively impacted settlement activity during the period. We believe the
strong demand caused by the tremendous job growth in the Washington, DC area,
the absence of investors from the market, and a slower, more sustainable rate
of appreciation, will lead to better balance in the market. To address these
changing market conditions we are focusing on geographic expansion into
additional strong growth markets throughout the mid-Atlantic and Southeast as
demonstrated by our first acquisition; Parker Chandler Homes, with operations
in Georgia and the Carolinas. We believe that our strong backlog of sold
units, our land position in multiple markets, and our overall focus on
moderately priced products provides a solid foundation for continued healthy
year over year growth in 2006 and beyond."
The Company issued updated earnings estimates for the three months ended
December 31, 2005 of $0.65 diluted. As a result, the company updated its
fiscal 2005 earnings estimate to $2.12 diluted, ahead of its original
expectations for 2005. This current estimate includes an impairment charge on
select inventory in the Company's Raleigh operation.
The company expects to report full operating results for the twelve months
ended December 31, 2005 and revise its full year 2006 guidance in late
February 2006. When available, the details of the release date and
corresponding investor conference call will be available on the Company's
website under the Investor Relations section.
About Comstock Homebuilding Companies, Inc. Comstock is a production
homebuilder that develops, builds, and markets single-family homes,
townhouses, mid-rise condominiums, high-rise condominiums, mixed-use
developments and condominium conversions. The Company currently markets its
products under the Comstock brand in the Washington, D.C. and Raleigh, North
Carolina markets and under the Parker Chandler Homes brand in Atlanta, Georgia
and parts of the Carolinas. The company targets a diverse range of buyers of
moderately priced homes. For more information on Comstock, please visit
http://www.comstockhomebuilding.com.
This press release includes "forward-looking statements" within the
meaning of the federal securities laws, which involve uncertainties and risks.
These include statements regarding events or developments that the Company
expects or anticipates will occur in the future, such as statements about the
Company's strategies to improve operating performance. Please refer to the
Company's most recent prospectus and its other filings with the Securities and
Exchange Commission for a complete discussion of these and other important
factors that could cause results to differ materially from those projected by
these forward-looking statements.
SOURCE Comstock Homebuilding Companies, Inc.
CONTACT: Company Contact: Bruce Labovitz, Chief Financial Officer of
Comstock Homebuilding Companies, Inc., +1-703-883-1700 ext. 131,
blabovitz@comstockhomes.com; or Media Contact: Carrie Blewitt of Qorvis
Communications, +1-202-448-3129, cblewitt@qorvis.com, for Comstock
Homebuilding Companies, Inc.