RESTON, VA, Apr 25, 2008 (MARKET WIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or
the "Company") today released unaudited preliminary results for its
first quarter of 2008 which ended on March 31, 2008.
Highlights of 1Q 2008 preliminary results are as follows:
All
(dollars in 000s) DC Metro Raleigh Atlanta Markets
---------- ---------- ---------- ----------
Gross new orders 24 18 9 51
Cancellations 4 8 4 16
Net new orders 20 10 5 35
Gross new order revenue $ 8,240.2 $ 4,207.1 $ 2,785.7 $ 15,233.0
Cancellation revenue $ 888.9 $ 2,726.3 $ 954.7 $ 4,569.9
Net new order revenue $ 7,351.3 $ 1,480.7 $ 1,831.1 $ 10,663.1
Settlements 16 22 10 48
Settled revenue $ 6,062.2 $ 6,473.6 $ 3,398.0 $ 15,933.8
Backlog 17 27 14 58
Backlog revenue $ 4,609.7 $ 7,949.2 $ 4,665.0 $ 17,223.8
Additional highlights of the quarter ended March 31, 2008 include:
- Gross new order revenue at the Company's Eclipse project was $5.8
million on 12 gross new orders. Net new order revenue at the Eclipse was
$5.2 million on 9 net new orders after cancellations. Settlement revenue
for the quarter at the Eclipse was $4.4 million on 9 settlements at an
average of $484,230 per unit or $494.90 per square foot;
- The Company will report positive gross margin of approximately 13%
before non-cash charges for the quarter. Based on preliminary results, the
Company expects to report positive net income for the quarter;
- During the quarter the Company closed on a $40.0 million revolving
credit facility with KeyBank National Association which refinanced the
Company's Eclipse at Potomac Yard and Towns at Station View projects and
provided discretionary working capital to the Company;
- Concurrent with the closing of the KeyBank facility the Company
executed on its option to restructure its $30.0 million senior unsecured
debt with JP Morgan Ventures. Under the terms of the option, the Company
paid $6.0 million in cash to JP Morgan Ventures, entered into an amended
and restated five-year indenture for $9.0 million and issued a seven-year
warrant to JP Morgan Ventures for the purchase of 1.5 million shares of the
Company's Class A common stock at $0.70 per share. The remaining $15.0
million previously outstanding under the indenture was cancelled;
- The $15.0 million of debt cancellation was accounted for in accordance
with FAS 15, 'Accounting by Debtors and Creditors for Troubled Debt
Restructurings.' Under FAS 15, the Company will record an $8.4 million pre-
tax gain in the quarter after accounting for $2.2 million of restructuring
expenses and $4.4 million of future interest cost associated with the
restructured notes. In accordance with FAS 15, the $4.4 million of future
interest cost is carried on the Company's balance sheet at March 31, 2008
as additional debt associated with the restructured notes. The Company will
reduce the incremental outstanding debt and recognize the $4.4 million gain
on a quarterly basis over the remaining life of the notes.
The Company announced that it will hold an investor conference call
hosted by Christopher Clemente, Chief Executive Officer, and Bruce
Labovitz, Chief Financial Officer, on Wednesday, May 14, 2008 at 1:00
p.m. EDT. To participate by telephone, the domestic dial-in number is
877-323-2090 and the international dial-in is 416-695-6120. There is
no access code required. Investors are advised to join at least five
minutes prior to the call to register. The call will also be
available via live webcast on the Company's website at
http://www.comstockhomebuilding.com in the "Investor Relations"
section. The call will be archived for seven days. Domestic
callers can access the instant replay at 800-408-3053 and
international caller can access the instant replay at 416-695-5800.
The access code for the instant replay is 3259537.
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a
publically traded, diversified real estate development firm with a
focus on affordably 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 Washington, D.C.; Raleigh,
North Carolina; and Atlanta, Georgia metropolitan areas. Comstock
Homebuilding Companies, Inc. trades on Nasdaq under the symbol CHCI.
For more information on the Company or it projects please visit
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
Company's most recent form 10-K, as filed with the Securities and
Exchange Commission on March 16, 2007. Comstock specifically
disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future
developments or otherwise.