View all news

Comstock Homebuilding Companies, Inc. Reports 129% Growth In Settlements for 2005

01/30/2006

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,
[email protected]; or Media Contact: Carrie Blewitt of Qorvis
Communications, +1-202-448-3129, [email protected], for Comstock
Homebuilding Companies, Inc.

Categories: Press Releases
View all news