Comstock Holding Companies Reports Second Quarter 2016 Results

8/16/16

WASHINGTON & RESTON, Va.--(BUSINESS WIRE)--Comstock Holding Companies, Inc., (NASDAQ: CHCI), announced results for the first three and six months ended June 30, 2016:

Highlights of Second Quarter 2016:

  • Backlog at June 30, 2016 of 50 units valued at $21.5 million, compared to 43 units valued at $22.3 million at June 30, 2015;
  • Unit deliveries of 21, generating homebuilding revenue of $9.7 million for the three months ended June 30, 2016 compared to unit deliveries of 25 generating $12.1 million of homebuilding revenue for the same period in 2015;
  • Controlled community count and open community count of 17 and 10, respectively, at June 30, 2016 compared to 19 and 10, respectively at June 30, 2015;
  • Comstock is preparing to commence sales and development of five new communities located in Virginia, Maryland, and Washington, DC, and
  • Subsequent to the quarter end, the Company completed Comstock Investors X, L.C. a private placement offering of $14.0 million to provide capital for certain projects scheduled to commence in the second half of 2016.


Chairman and CEO, Christopher Clemente commented, “Our second quarter and first half results are in line with our expectations for early 2016. Our focus continues to be increasing revenue while reducing fixed operating costs. Our efforts in this regard over the past two years has substantially rationalized overhead expenses. The result of our cost reduction efforts resulted in reductions of fixed operating costs of 29% in the second quarter of this year and 24% year-to-date, as compared to a year ago. We expect this trend to continue with general and administrative costs for full year 2016, expecting at least a 25% reduction, as compared to 2015. We believe that our reduced cost structure coupled with the typical revenue increase that we experience in the second half of each calendar year will contribute towards our effort to generate positive results in the near future."

COMSTOCK COMMUNITIES NOW OPEN

Comstock currently has 10 communities open for sale in Virginia and Maryland, including townhomes, condominiums, single-family homes and villas priced from the high $200s to the $500s. Four additional communities are scheduled to open during the second half of 2016, with prices ranging from high $300s to high $800s. For further details on the open communities, see the attached Pipeline Report as of June 30, 2016 and the Form 10-Q filed by the company on August 15, 2016 or visit www.ComstockHomes.com.

COMSTOCK COMMUNITIES COMING SOON

Comstock has seven new communities in various stages of planning and development. The new communities, located in Maryland, Virginia and Washington, DC, include townhomes, single-family homes and multi-family units. Comstock plans to open five of these communities before year-end 2016, with the balance of them expected to open before the end of 2017. The communities opening in mid-to-late 2016 include:

  • The Townes at 1333 (Old Town Alexandria, VA) – townhomes priced from the high $800s.
  • Townes at Totten Mews (Washington, DC) – townhomes priced from the high $500s.
  • Marwood East (Loudoun County, VA) – single family homes priced from the high $500s.
  • Estates at Emerald Farm, final section (Frederick, MD) – single family homes priced from the high $300s.
  • Woods at Stone Ridge (Frederick, MD) – single family homes priced from the upper $500s.

For further details on the communities in planning, see the attached Pipeline Report as of June 30, 2016 and the Form 10-Q filed by the company on August 15, 2016.

About Comstock Holding Companies, Inc.

Comstock is a homebuilding and multi-faceted real estate development and services company that builds a wide range of housing products through its wholly owned subsidiary, Comstock Homes of Washington, LC. Our track record of developing numerous successful new home communities and nearly 6,000 homes, together with our substantial experience in building a diverse range of products including apartments, single-family homes, townhomes, mid-rise condominiums, high-rise condominiums and mixed-use (residential and commercial) developments has positioned Comstock as a leading developer and homebuilder in the Washington, D.C. metropolitan area. Comstock is a publicly traded company, trading on NASDAQ under the symbol CHCI. For more information about Comstock or its new home communities, please visitwww.comstockhomes.com.