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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