On May 15, 2019, Comstock Holding Companies, Inc., (NASDAQ: CHCI)
(the “Company”), announced results for the three months ended March
31, 2019:
Highlights of First Quarter 2019, as
compared to First Quarter 2018:
- Net income attributable to common stockholders of $0.07
million, or $0.02 per basic and diluted share, as compared to net
loss attributable to common stockholders of ($0.72) million in the
same period of the prior year, or ($0.21) per basic and diluted
share.
- Revenue from asset management operations of $3.7 million during
the first quarter 2019, compared to $2.8 million during the same
period of the prior year.
- Revenue from real estate services of $0.7 million, compared to
$0.4 million during the same period of the prior year.
- Cash flows provided by operating activities increased to $2.9
million during the first quarter 2019, compared to ($0.05) million
used in operations during the same period of the prior year.
Highlights associated with the Company’s
recently announced balance sheet recapitalization and completion of
platform transition:
- On April 30, 2019 the Company announced it executed a series of
transactions that (i) complete the wind-down and divestiture of all
liabilities associated with its legacy homebuilding operation, (ii)
allow retention by the Company of approximately $18.5 Million of
previously invested capital, and (iii) entry into a new
long-term asset management agreement with a market rate fee
structure that preserves the financial stability afforded by the
cost-plus feature of the previous arrangement while providing the
Company with incentive fee participation in the private commercial
real estate portfolio (“CRE Portfolio”) controlled by the Company’s
Chairman and Chief Executive Officer, Christopher Clemente, which
has expanded to now include approximately 7 million square feet of
transit-oriented and mixed-use development and stabilized
assets.
- The Company expanded the CRE Portfolio through the addition of
a 12-acre property adjacent to its existing Reston Station
development, that includes three stabilized Class-A office
buildings totaling 408,000 square feet and land entitled for 1.1
million square feet of additional mixed-use development.
- The Company negotiated the anchor lease with Google for its
Trophy-Class office building at the Reston Station
development.
“I am pleased to report that we have
successfully transitioned away from our homebuilding operating
platform into a commercial development and asset management
platform with scale and potential to consistently generate positive
results” said Comstock’s Chairman and CEO, Christopher Clemente.
“Results for the first quarter begin to demonstrate the benefits of
the many changes implemented over the past year, including
replacement of the initial anchor asset management agreement with a
new agreement that we believe significantly enhances Comstock’s
earnings potential. With a clean balance sheet, and a reshaped
management team of experienced commercial development and asset
management professionals, I am confident that our Company is well
positioned to generate positive results as we advance development
of our portfolio of transit-oriented and mixed use assets, while
seeking to continue growing assets under management and expanding
our real estate related service offerings”.
About Comstock Holding Companies,
Inc.Comstock Holding Companies, Inc. (“CHCI”) is a
multi-faceted real estate development, asset management and real
estate related services company that, since 1985, has designed,
developed, constructed and managed several thousand residential
units and millions of square feet of residential and mixed-use
projects throughout the Washington, DC metropolitan market and in
other key markets in the southeastern United States. In early 2018,
CHCI began transitioning its operating platform from being
primarily focused on developing on-balance sheet, for-sale,
homebuilding projects to being focused on commercial real estate
development, asset management and real estate related services.
Anchoring the transition of CHCI is a long-term asset management
agreement covering two of the largest transit-oriented, mixed-use
developments in the Washington, DC area; Reston Station, a nearly 5
million square foot transit-oriented, mixed-use development located
in Reston, VA, and Loudoun Station, a nearly 2.5 million square
foot transit-oriented, mixed-use development in Ashburn, VA, as
well as other additional development assets. Comstock’s substantial
experience in entitling, designing, developing, and managing a
diverse range of properties including apartments, single-family
homes, townhomes, mid-rise condominiums, high-rise condominiums and
mixed-use (residential and commercial) properties, as well as large
scale commercial parking garages and infrastructure projects, has
positioned the Comstock organization as a premier developer and
real estate asset manager in the mid-Atlantic Region. In
addition to providing real estate development, asset management,
and property management services, CHCI provides development supply
chain services, including capital markets, real estate brokerage,
environmental consulting and design services in the Washington, DC
metropolitan area and in New Jersey and Pennsylvania.
Comstock Holding Companies, Inc. is publicly
traded on NASDAQ under the symbol CHCI. For more
information, please visit www.ComstockCompanies.com.
About Reston
StationStrategically located mid-way between Tysons Corner
and Dulles International Airport, Reston Station is among the
largest mixed-use, transit-oriented developments in the Washington,
DC area. Located at the terminus of Phase I of Metro’s Silver Line
and encompassing nearly 40 acres spanning the Dulles Toll Road and
surrounding Reston’s first Metro Station, Reston Station is already
home to more than 1,000 residents, numerous businesses, multiple
retail establishments, and several popular restaurants. With more
than 1 million square feet of completed and stabilized buildings,
approximately 4 million square feet of additional development in
various stages of entitlement, development and construction, and a
3,500-space underground parking garage and bus transit facility
adjacent to the Wiehle Reston-East Metro Station, the Reston
Station neighborhood is quickly becoming Fairfax County’s urban
focal point in the Dulles Corridor.
For more information about Reston Station,
please visit www.RestonStation.com.
About Loudoun StationLocated at
the terminus station on Metro’s Silver Line, minutes from Dulles
International Airport, Loudoun Station represents Loudoun County’s
first (and currently its only) Metro-connected development. Loudoun
Station has approximately 700,000 square feet of mixed-use
development completed, including hundreds of rental apartments,
approximately 150,000 square feet of retail, restaurants, and
entertainment venues, 50,000 square feet of Class-A office, and a
1,500-space commuter parking garage. Approximately 2 million square
feet of additional development is slated for Loudoun Station.
Located adjacent to Metro’s Ashburn Station, the Loudoun Station
neighborhood represents Loudoun County’s beginning transformation
into a transit connected community with direct connectivity to
Dulles International Airport, Reston, Tysons Corner and downtown
Washington, DC. As Loudoun County’s only transit connected
neighborhood, Loudoun Station has become the new downtown of
Loudoun County in the Dulles Corridor.
For more information about Loudoun Station,
please visit www.LoudounStation.com.
Cautionary Statement Regarding
Forward-Looking StatementsThis release may include
"forward-looking" statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by use
of words such as "anticipate," "believe," "estimate," "may,"
"intend," "expect," "will," "should," "seeks" or other similar
expressions. Forward-looking statements are based largely on our
expectations and involve inherent risks and uncertainties, many of
which are beyond our control. Any number of important factors could
cause actual results to differ materially from those in the
forward-looking statements. Additional information concerning
important risk factors and uncertainties can be found under the
heading "Risk Factors" in our latest Annual Report on Form 10-K, as
filed with the Securities and Exchange Commission. Comstock
specifically disclaims any obligation to update or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise.
Company: Comstock Holding
Companies, Inc. Christopher Guthrie, 703-230-1292 Chief Financial
Officer
Source: Comstock Holding Companies,
Inc.
COMSTOCK HOLDING COMPANIES, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share and per
share data)
|
|
March 31,2019 |
|
|
December 31,2018 |
|
|
|
(unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,755 |
|
|
$ |
5,780 |
|
Restricted cash |
|
|
1,138 |
|
|
|
1,231 |
|
Trade receivables |
|
|
1,434 |
|
|
|
1,329 |
|
Trade receivables - related parties |
|
|
1,290 |
|
|
|
2,950 |
|
Real estate inventories |
|
|
17,598 |
|
|
|
20,253 |
|
Fixed assets, net |
|
|
205 |
|
|
|
221 |
|
Goodwill |
|
|
1,702 |
|
|
|
1,702 |
|
Intangible assets, net |
|
|
153 |
|
|
|
170 |
|
Lease right-of-use assets |
|
|
156 |
|
|
|
— |
|
Other assets, net |
|
|
1,490 |
|
|
|
1,464 |
|
TOTAL ASSETS |
|
$ |
30,921 |
|
|
$ |
35,100 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
6,803 |
|
|
$ |
7,614 |
|
Deferred revenue |
|
|
1,250 |
|
|
|
1,875 |
|
Notes payable - secured by real estate inventories, net of deferred
financing charges |
|
|
10,033 |
|
|
|
13,432 |
|
Notes payable - due to affiliates, unsecured, net of discount |
|
|
4,935 |
|
|
|
4,903 |
|
Notes payable - unsecured, net of deferred financing charges |
|
|
595 |
|
|
|
595 |
|
Lease liabilities |
|
|
156 |
|
|
|
— |
|
Income taxes payable |
|
|
54 |
|
|
|
51 |
|
TOTAL LIABILITIES |
|
|
23,826 |
|
|
|
28,470 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 14) |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY (DEFICIT) |
|
|
|
|
|
|
|
|
Series C preferred stock $0.01 par value, 20,000,000 and 3,000,000
shares authorized, 2,799,848 issued and outstanding and
liquidation preference of $13,999, at March 31, 2019 and
December 31, 2018, respectively |
|
$ |
7,193 |
|
|
$ |
7,193 |
|
Class A common stock, $0.01 par value, 59,779,750 and
11,038,071 sharesauthorized, 3,749,413 and 3,703,5113 issued, and
3,663,843 and 3,617,943outstanding at March 31, 2019 and December
31, 2018, respectively |
|
|
37 |
|
|
|
37 |
|
Class B common stock, $0.01 par value, 220,250 shares
authorized, issued and outstanding at March 31, 2019 and
December 31, 2018 |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
180,769 |
|
|
|
180,673 |
|
Treasury stock, at cost (85,570 shares Class A common
stock) |
|
|
(2,662 |
) |
|
|
(2,662 |
) |
Accumulated deficit |
|
|
(194,250 |
) |
|
|
(194,319 |
) |
TOTAL COMSTOCK HOLDING COMPANIES, INC. DEFICIT |
|
|
(8,911 |
) |
|
|
(9,076 |
) |
Non-controlling interests |
|
|
16,006 |
|
|
|
15,706 |
|
TOTAL EQUITY |
|
|
7,095 |
|
|
|
6,630 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
30,921 |
|
|
$ |
35,100 |
|
COMSTOCK HOLDING COMPANIES, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except per share
data)
|
|
Three Months Ended
March 31, |
|
|
|
2019 |
|
|
2018 |
|
Revenues |
|
|
|
|
|
|
|
|
Revenue—homebuilding |
|
$ |
6,978 |
|
|
$ |
5,561 |
|
Revenue—asset management |
|
|
3,652 |
|
|
|
2,791 |
|
Revenue—real estate services |
|
|
728 |
|
|
|
447 |
|
Total revenue |
|
|
11,358 |
|
|
|
8,799 |
|
Expenses |
|
|
|
|
|
|
|
|
Cost of sales—homebuilding, excluding impairment charges |
|
|
6,722 |
|
|
|
5,495 |
|
Cost of sales—asset management |
|
|
3,317 |
|
|
|
2,541 |
|
Cost of sales—real estate services |
|
|
494 |
|
|
|
177 |
|
Impairment charges |
|
|
— |
|
|
|
558 |
|
Sales and marketing |
|
|
114 |
|
|
|
219 |
|
General and administrative |
|
|
305 |
|
|
|
360 |
|
Interest and real estate taxes |
|
|
34 |
|
|
|
85 |
|
Operating income (loss) |
|
|
372 |
|
|
|
(636 |
) |
Other income, net |
|
|
— |
|
|
|
14 |
|
Income (loss) before income tax
expense |
|
|
372 |
|
|
|
(622 |
) |
Income tax expense |
|
|
3 |
|
|
|
6 |
|
Net Income (loss) |
|
|
369 |
|
|
|
(628 |
) |
Net income attributable to
non-controlling interests |
|
|
300 |
|
|
|
95 |
|
Net income (loss) attributable to
common stockholders |
|
|
69 |
|
|
|
(723 |
) |
|
|
|
|
|
|
|
|
|
Basic net income (loss) per
share |
|
$ |
0.02 |
|
|
$ |
(0.21 |
) |
Diluted net income (loss) per
share |
|
$ |
0.02 |
|
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding |
|
|
3,850 |
|
|
|
3,448 |
|
Diluted weighted average shares
outstanding |
|
|
3,965 |
|
|
|
3,448 |
|
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