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Comstock Homebuilding Companies, Inc. Reports Results for Three Months Ended March 31, 2009

05/13/2009

RESTON, VA, May 13, 2009 (MARKETWIRE via COMTEX News Network) -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company") today released results for the three months ended March 31, 2009. In connection therewith, the Company filed a Form 10-Q with the Securities and Exchange Commission. The Company's 1Q 2009 results are highlighted as follows:

--  Gross new order revenue for the quarter decreased $7.2 million, or
    47.5%, to $7.9 million on 25 homes as compared to $15.1 million on 50 homes
    for the three months ended March 31, 2008. Net new order revenue for the
    quarter decreased $2.7 million, or 26.3%, to $7.4 million on 22 homes as
    compared to $10.1 million on 34 homes for the quarter ended March 31, 2008.

--  Settlements during the quarter decreased by 75.0%, or 36 homes, to 12
    as compared to 48 homes for the three months ended March 31, 2008.  Revenue
    from homebuilding decreased by $11.2 million, or 70.0%, to $4.7 million for
    the quarter as compared to $15.9 million for the three months ended
    March 31, 2008.

--  The Company's sales, settlements and backlog were as follows:


                                     Three months ended March 31, 2009
                                   --------------------------------------
                                   Washington   North
                                    DC Metro   Carolina  Georgia   Total
                                   ----------  --------  -------  -------
Gross new orders                           12        13        -       25
Cancellations                               -         3        -        3
Net new orders                             12        10        -       22
Gross new order revenue            $    5,614  $  2,319  $     -  $ 7,933
Cancellation revenue               $        -  $    523  $     -  $   523
Net new order revenue              $    5,614  $  1,796  $     -  $ 7,410
Average gross new order price      $      468  $    178  $     -  $   317
Settlements                                 8         4        -       12
Settlement revenue - homebuilding  $    4,160  $    566  $     -  $ 4,726
Average settlement price           $      520  $    142  $     -  $   394
Backlog units                               7        12        1       20
Backlog revenue                    $    2,189  $  2,983  $   386  $ 5,558
Average backlog price              $      313  $    249  $   386  $   278

--  The Company did not record any additional impairment or write-off
    charges in the quarter as compared to $0.8 million for the three months
    ended March 31, 2008. Management based its decision on current market
    conditions and estimates for the future. If market conditions deteriorate
    or actual costs are higher than budgeted, however, the Company may incur
    additional impairment charges in the future.

--  Selling, general and administrative expenses for the quarter decreased
    $1.2 million or 31.6% to $2.6 million, as compared to $3.8 million for the
    three months ended March 31, 2008.

--  The operating loss for the quarter was $(2.9) million which was
    unchanged compared to $(2.9) million for the three months ended March 31,
    2008. Operating margin for the quarter was (54.5%) as compared to
    (18.3%) for the three months ended March 31, 2008.

--  Other (income) expense, net for the quarter decreased by $0.8 million
    to $(0.4) million as compared to $(1.2) million for the three months ended
    March 31, 2008.

--  Unrestricted cash was $3.1 million at March 31, 2009, a reduction of
    $2.9 million as compared to December 31, 2008.

--  Notes payable -- secured by real estate was $82.1 million at March 31,
    2009 which represented a $2.4 million reduction as compared to December 31,
    2008.  Notes payable -- unsecured was $18.2 million which is unchanged from
    December 31, 2008.

--  Shareholder equity was $28.2 million at March 31, 2009 which
    represents a book value per share of $1.53 based on approximately 18.3
    million shares outstanding.


The Company reported that management and the Company's board of directors are continuing to work on strategic plans aimed at generating unrestricted cash flow to help secure its ability to continue operating as a going concern.

"While it's certainly not a trend yet, we have seen a pick up in traffic and sales at certain Washington, DC area projects over the past few weeks," said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. "We are hopeful that it is a sign of better times ahead for the homebuilding and real estate industries. We continue to work on developing solutions with our lenders that would secure our ability to survive the economic downturn that is affecting the homebuilding industry."

BALANCE SHEET                                      March 31,   December 31,
                                                      2009         2008
                                                  -----------  -----------
ASSETS
      Cash and cash equivalents                   $     3,146  $     5,977
      Restricted cash                                   4,028        3,859
      Receivables                                           -            -
      Due from related parties                             77            -
      Real estate held for development and sale       126,123      129,542
      Inventory not owned - variable interest
       entities                                        19,250       19,250
      Property, plant and equipment, net                  661          829
      Other assets                                      1,450        1,402
                                                  -----------  -----------
         TOTAL ASSETS                             $   154,735  $   160,859
                                                  ===========  ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
      Accounts payable and accrued liabilities    $     7,188  $     8,232
      Obligations related to inventory not owned       19,050       19,050
      Notes payable - secured by real estate           82,123       84,563
      Notes payable - unsecured                        18,209       18,266
                                                  -----------  -----------
         TOTAL LIABILITIES                            126,570      130,111
                                                  -----------  -----------
      Commitments and contingencies (Note 9)
      SHAREHOLDERS' EQUITY
      Class A common stock, $0.01 par value,
       77,266,500 shares authorized, 15,608,438
       and  15,608,438 issued and outstanding,
       respectively                                       156          156
      Class B common stock, $0.01 par value,
       2,733,500 shares authorized, 2,733,500
       issued and outstanding                              27           27
      Additional paid-in capital                      157,119      157,058
      Treasury stock, at cost (391,400 Class A
       common stock)                                   (2,439)      (2,439)
      Accumulated deficit                            (126,921)    (124,277)
                                                  -----------  -----------
      TOTAL COMSTOCK HOMEBUILDING COMPANIES, INC
       SHAREHOLDERS' EQUITY                            27,942       30,525
      Non-controlling interest                            223          223
                                                  -----------  -----------
      TOTAL EQUITY                                     28,165       30,749
                                                  ===========  ===========
      TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $   154,735  $   160,859
                                                  ===========  ===========
                                                        Three Months Ended
INCOME STATEMENT                                             March 31,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
Revenues
       Revenue - homebuilding                           $  4,726  $ 15,940
       Revenue - other                                       797       436
                                                        --------  --------
        Total revenue                                      5,523    16,376
Expenses
       Cost of sales - homebuilding                        4,145    13,940
       Cost of sales - other                                   -        28
       Impairments and write-offs                              -       832
       Selling, general and administrative                 2,575     3,788
       Interest, real estate taxes and indirect costs
        related to inactive projects                       1,800       758
                                                        --------  --------
Operating loss                                            (2,997)   (2,970)
Loss (gain) on troubled debt restructuring                     -    (8,325)
Other (income) loss, net                                    (353)   (1,185)
                                                        --------  --------
Total pre tax (loss) income                               (2,644)    6,540
Income taxes expense                                           2         -
                                                        --------  --------
Net (loss) income                                         (2,646)    6,540
Net (loss) income attributable to non-controlling
 interest                                                      1         2
                                                        ========  ========
Net (loss) income attributable to Comstock Homebuilding
 Companies, Inc                                         $ (2,645) $  6,542
                                                        ========  ========
Basic (loss) earnings per share                         $  (0.15) $   0.40
Basic weighted average shares outstanding                 17,554    16,544
                                                        ========  ========
Diluted (loss) earnings per share                       $  (0.15) $   0.39
Diluted weighted average shares outstanding               17,554    16,589
                                                        ========  ========

About Comstock Homebuilding Companies, Inc.

Comstock Homebuilding Companies, Inc. is a publicly traded real estate enterprise with a focus on a variety of affordably priced, for-sale residential products. The company currently operates as Comstock Homes in the Washington, D.C.; Raleigh, NC; and Atlanta, GA markets. Comstock trades on Nasdaq as CHCI. For more information please visit www.comstockhomebuilding.com.

Cautionary Statement

This release may contain "forward-looking" statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's Form 10-K as filed with the Securities and Exchange Commission on March 31, 2009. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Contact:
Bruce Labovitz
Email Contact
703.230.1131


SOURCE: Comstock Homebuilding Companies, Inc.

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