RESTON, VA -- (Marketwire) -- 08/15/08 -- Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) ("Comstock" or the "Company") today announced its unaudited results
for three and six months ended June 30, 2008 as follows:
For the three months ended June 30, 2008, the Company reported a net loss
of $16.6 million or ($1.00) per share basic and diluted on total revenue of
$12.0 million compared to a net loss of $4.7 million or ($0.29) per share
basic and diluted on total revenue of $114.3 million for the three months
ended June 30, 2007. In connection with these results, the Company
announced that it had elected to record a non-cash impairment and write-off
charge of $13.7 million for the three months ended June 30, 2008, compared
to a $7.5 million charge for the three months ended June 30, 2007.
For the six months ended June 30, 2008, the Company reported a net loss of
$10.1 million or ($0.61) per share basic and diluted on total revenue of
$28.4 million, compared to a net loss of $6.3 million or ($0.40) per share
basic and diluted on total revenue of $161.0 million for the six months
ended June 30, 2007. In connection with these results, the Company
announced that it had elected to record a non-cash impairment and write-off
charge of $14.6 million for the six months ended June 30, 2008 as compared
to an $8.4 million charge for the six months ended June 30, 2007.
During the period, the Company continued to execute on its debt reduction
initiative. Outstanding debt at June 30, 2008 was $153.0 million (net of a
$4.2 million deferred gain on the restructuring of its senior unsecured
notes); a reduction of $5.3 million as compared to March 31, 2008, a
reduction of $18.2 million as compared to December 31, 2007, and a
reduction of $77.1 million as compared to June 30, 2007. The company's net
debt-to-cap ratio at June 30, 2008 (adjusted for the deferred gain) was
73.5%.
For the six months ended June 30, 2008, the Company generated positive cash
flow from operating activities of $8.4 million as compared to $64.1 million
of positive cash flow from operating activities during the six months ended
June 30, 2007.
The Company reported the following orders, cancellations and backlog by
segment for the three and six months ended June 30, 2008:
Three months ended
June 30, 2008 North All
(dollars in 000s) DC Metro Carolina Georgia Markets
-------- -------- -------- --------
Gross new orders 18 12 4 34
Cancellations 8 3 3 14
Net new orders 10 9 1 20
Gross new order revenue $ 5,971 $ 3,502 $ 1,395 $ 10,868
Cancellation revenue $ 1,761 $ 899 $ 975 $ 3,635
Net new order revenue $ 4,210 $ 2,603 $ 420 $ 7,233
Backlog units 10 21 9 40
Backlog revenue $ 3,094 $ 6,732 $ 3,174 $ 13,000
Average backlog revenue per unit $ 309 $ 321 $ 353 $ 325
Six months ended
June 30, 2008 North All
(dollars in 000s) DC Metro Carolina Georgia Markets
-------- -------- -------- --------
Gross new orders 42 30 13 85
Cancellations 12 11 7 30
Net new orders 30 19 6 55
Gross new order revenue $ 14,206 $ 7,711 $ 4,188 $ 26,105
Cancellation revenue $ 3,140 $ 3,625 $ 1,930 $ 8,695
Net new order revenue $ 11,066 $ 4,086 $ 2,258 $ 17,410
Backlog units 10 21 9 40
Backlog revenue $ 3,094 $ 6,732 $ 3,174 $ 13,000
Average backlog price $ 309 $ 321 $ 353 $ 325
Additional results of the three months ended June 30, 2008 include:
-- At June 30, 2008, the Company's reported shareholder equity was $37.4
million or $2.08 per share based on 17.9 million shares issued and
outstanding.
-- Cash on hand at June 30, 2008 was $9.9 million, with receivables,
representing settlement proceeds in transit, of $0.1 million.
-- Gross profit on all revenue was $1.7 million, representing a gross
margin of 14.5% on all revenue, compared to $7.7 million or 6.7% for the
three months ended June 30, 2007.
-- Gross profit from homebuilding revenue was $1.2 million representing a
gross margin of 10.3%, compared to gross profit from homebuilding of $7.4
million or 6.7% for the three months ended June 30, 2007.
-- SG&A decreased by $3.2 million or 39.0% to $5.0 million, compared to
$8.2 million for the three months ended June 30, 2007. SG&A for the three
months ended June 30, 2008 included $0.6 million of interest and real
estate taxes related to inactive projects, an increase of $0.6 million
compared to the three months ended June 30, 2007 when there were no
inactive projects.
-- Operating loss was ($17.0) million or (141.9%) of total revenue, as
compared to ($7.9) million or (6.9%) of total revenue for the three months
ended June 30, 2007.
Additional results of the six months ended June 30, 2008 include:
-- Gross profit was $4.2 million, representing a gross margin of 14.6% on
all revenue, compared to $14.0 million or 8.7% for the six months ended
June 30, 2007. Gross profit from homebuilding was $3.2 million representing
a gross margin of 11.6%, compared to gross profit from homebuilding of
$13.6 million or 8.9% for the six months ended June 30, 2007.
-- SG&A decreased by $6.8 million or 41.5% to $9.6 million, compared to
$16.4 million for the six months ended June 30, 2007. SG&A included $1.4
million of interest and real estate taxes related to inactive projects, an
increase of $1.4 million compared to the six months ended June 30, 2007
when there were no inactive projects.
-- Operating loss was ($20.0) million or (70.4%) of total revenue, as
compared to ($10.8) million or (6.7%) of total revenue for the six months
ended June 30, 2007.
-- The Company recorded an $8.4 million gain on the restructuring of it
senior unsecured notes and deferred and additional $4.4 million of gain to
be recorded over the remaining five-year life of the notes.
At December 31, 2007, the Company established a $29.9 million valuation
allowance against its deferred tax asset. The Company is currently
projecting a tax loss for 2008 after recognizing current year tax
deductions associated with prior period impairments charges. As a result,
an effective tax rate of zero was assumed in calculating the Company's
current income tax expense for the three and six months ended June 30,
2008.
As previously reported, during the three months ended June 30, 2008 the
Company retained FTI Consulting to act as an advisor in exploring and
developing a plan of debt restructuring. The Company announced that it
will delay holding an investor conference call until certain milestones in
the process of renegotiating its debts have been achieved.
About Comstock Homebuilding Companies, Inc.
Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly
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 its 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. 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.
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 24, 2008. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether as a
result of new information, future developments or otherwise.
Comstock Homebuilding Companies, Inc.
Three Months Ended, Three Months Ended,
June 30, June 30,
-------------------- --------------------
Income Statement 2008 2007 2008 2007
--------- --------- --------- ---------
Revenue - homebuilding $ 11,435 $ 110,313 $ 27,375 $ 153,338
Revenue - other 568 3,987 1,004 7,685
--------- --------- --------- ---------
Total revenue 12,003 114,300 28,379 161,023
Expenses
Cost of sales - homebuilding 10,260 102,876 24,200 139,743
Cost of sales - other -- 3,680 28 7,304
Impairments and write-offs 13,746 7,492 14,577 8,383
Selling, general and
administrative 5,029 8,151 9,575 16,376
--------- --------- --------- ---------
Operating loss (17,032) (7,899) (20,001) (10,783)
Gain on troubled debt
restructuring -- -- (8,325) --
Other income, net (413) (302) (1,598) (646)
--------- --------- --------- ---------
Loss before minority interest (16,619) (7,597) (10,078) (10,137)
Minority interest (1) (3) (3) (5)
--------- --------- --------- ---------
Total pre tax loss (16,618) (7,594) (10,075) (10,132)
Income taxes benefit -- (2,926) -- (3,796)
--------- --------- --------- ---------
Net loss $ (16,618) $ (4,668) $ (10,075) $ (6,336)
Basic loss per share $ (1.00) $ (0.29) $ (0.61) $ (0.40)
Basic weighted average shares
outstanding 16,541 16,095 16,502 15,992
--------- --------- --------- ---------
Diluted loss per share $ (1.00) $ (0.29) $ (0.61) $ (0.40)
Diluted weighted average shares
outstanding 16,541 16,095 16,502 15,992
Comstock Homebuilding Companies, Inc.
Balance Sheet June 30, December 31,
2008 2007
ASSETS
Cash and cash equivalent $ 9,939 $ 6,822
Restricted cash 4,400 4,985
Receivables 118 370
Due from related parties 91 92
Real estate held for development and sale 186,512 203,860
Inventory not owned - variable interest
entities 19,250 19,250
Property, plant and equipment, net 1,184 1,539
Other assets 2,817 22,058
------------ ------------
TOTAL ASSETS $ 224,311 $ 258,976
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 10,477 $ 21,962
Obligations related to inventory not owned 19,050 19,050
Notes payable 144,006 141,214
Senior unsecured debt 13,182 30,000
------------ ------------
TOTAL LIABILITIES 186,715 212,226
------------ ------------
Commitments and contingencies (Note 10)
Minority interest 228 231
------------ ------------
SHAREHOLDERS' EQUITY
Class A common stock, $0.01 par value,
77,266,500 shares authorized, 15,209,075 and
15,120,955 issued and outstanding,
respectively 152 151
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 156,922 155,998
Treasury stock, at cost (391,400 Class A common
stock) (2,439) (2,439)
Accumulated deficit (117,294) (107,219)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 37,368 46,519
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 224,311 $ 258,976
============ ============
CONTACT:
Comstock Homebuilding Companies, Inc.
Bruce Labovitz
703.230.1131
Email Contact
