RESTON, VA, May 10, 2007 (MARKET WIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or
the "Company") today announced first quarter earnings for the three
months ended March 31, 2007. The Company reported a net loss of $1.7
million or ($0.11) per share basic and diluted on total revenue of
$46.7 million as compared to net income of $1.2 million or $0.09 per
share basic and diluted for the three months ended March 31, 2006.
The Company will conduct a conference call for interested investors
on Friday, May 11, 2007, at 1:00 PM Eastern Time. During the call the
Company will discuss the financial results detailed in this release.
The dial-in number for the conference call is 877-519-4471 and the
access code is 8696237; the call may also be accessed on the Internet
at www.comstockhomebuilding.com in the Investor Relations section.
Highlights of Financial Results -- Three months ended March 31,
2007:
-- The Company generated a basic and diluted loss for the quarter of
($0.11) per share on basic and diluted shares outstanding of 15.9 million;
-- Total revenue for the quarter was $46.7 million with $43.0 million of
revenue derived from homebuilding as compared to total revenue of $36.6
million for the three months ended March 31, 2006 with $36.4 million of
revenue derived from homebuilding.
-- The Company delivered 131 new homes in the quarter at average revenue
per unit of approximately $328,000 as compared to 112 new homes at average
revenue per unit of $325,000 during the three months ended March 31, 2006;
-- Gross profit from all revenue was $6.2 million for the three months
ended March 31, 2007, representing a 13.3% gross margin as compared to $9.4
million for the three months ended March 31, 2006, representing a gross
margin of 25.7%;
-- Gross profit from homebuilding was $6.2 million for the three months
ended March 31, 2007, representing a 14.3% gross margin from homebuilding
as compared to $9.2 million for the three months ended March 31, 2006,
representing a gross margin from homebuilding of 25.3%;
-- The Company reported SG&A expenses of $8.2 million or 17.6% of total
revenue for the three months ended March 31, 2007 as compared to $7.6
million or 20.9% of total revenue for the three months ended March 31,
2006;
-- During the three months ended March 31, 2007 the Company delivered 58
homes at it Eclipse project in Arlington, Virginia generating revenue of
$23.8 million;
-- Backlog at March 31, 2007 was $117.1 million on 285 sold but
undelivered homes as compared to $212.0 million on 540 sold but undelivered
homes at March 31, 2006;
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies is a diversified
real estate development firm with a focus on moderately 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 greater Washington, D.C., Atlanta,
Georgia and Raleigh, North Carolina metropolitan areas. Comstock
Homebuilding Companies Inc. trades on Nasdaq under the symbol CHCI.
For more information please visit our web site at
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.
Financial Results from Operations
Three months ended
March 31,
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2007 2006
Revenues
Revenue - Homebuilding $ 43,025 $ 36,365
Revenue - Other 3,698 230
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Total revenue 46,723 36,595
Expenses
Cost of sales of real estate 36,867 27,161
Cost of sales of other 3,624 10
Impairments and write-offs 891 0
Selling, general and administrative 8,225 7,646
-------- --------
Gross Profit 6,232 9,424
Operating (loss) income (2,884) 1,778
Other (income) expense, net (344) (233)
-------- --------
(Loss) income before minority interest and equity in
earnings of real estate partnerships (2,540) 2,011
Minority interest (1) (7)
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Income before equity in losses of real estate
partnerships (2,539) 2,018
Equity in earnings of real estate partnerships (27)
-------- --------
Total pre tax (loss) income (2,539) 1,991
Income Taxes (benefit) expense (870) 751
-------- --------
Net (loss) Income $ (1,669) $ 1,240
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Basic (loss) earnings per share $ (0.11) $ 0.09
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Basic weighted average shares outstanding 15,888 13,981
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Diluted (loss) earnings per share $ (0.11) $ 0.09
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Diluted weighted average shares outstanding 15,888 14,071
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Media Contact:
Bryan Murray
703.230.1417
SOURCE: Comstock Homebuilding Companies, Inc.