Comstock Reports First Quarter 2022 Results


  • Revenue increased 28% to $8.7 million in Q1 2022 from $6.8 million in Q1 2021
  • Net income from continuing operations of $2.0 million in Q1 2022 compared to $0.4 million in Q1 2021
  • Adjusted EBITDA increased by $1.0 million to $1.6 million in Q1 2022 from $0.6 million in Q1 2021

RESTON, Va., May 16, 2022 (GLOBE NEWSWIRE) — Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”) announced its financial results for the quarter ended March 31, 2022.

“Our first quarter performance continues our trend of delivering positive results, demonstrating the strength of our anchor portfolio and the reliability of our vertically integrated operating and investing platform,” said Christopher Clemente, Chief Executive Officer. of Comstock. “First quarter highlights include the continued expansion of our BLVD-branded residential portfolio and the divestiture of our Pennsylvania-based environmental advisory business, allowing us to focus on our asset management platforms. and rapidly growing core investment business in one of the nation’s most active markets.We are well positioned to continue to benefit from the “flight to quality” trend that has recently transformed the net absorption of offices in positive, also increasing residential occupancy and rents Strong demand for our portfolio of mixed-use and transit-oriented assets gives me confidence that our market position will contribute to our continued success in periods coming.

Key performance indicators1

(in thousands of dollars, except per share data)
Q1 2022 Q1 2021
Revenue $ 8,731 $ 6,840
Income from operations $ 1,365 $ 443
Net revenue 2014 390
Adjusted EBITDA $ 1,606 $ 617
Net earnings per share — diluted $ 0.22 $ 0.05
Managed portfolio – number of assets 36 26
1 All amounts represent continuing operations. Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure.

First Quarter 2022 Highlights

  • Completion of the joint venture acquisition of The Ansel, a 250-unit luxury apartment building located at Metro’s Rockville Station in Rockville, Maryland; renamed BLVD Ansel and, along with the adjacent BLVD Forty Four, positions Comstock as the primary supplier to the Rockville Town Center neighborhood.
  • Completed the divestiture of the Comstock Environmental Services (“CES”) business line through March 31, 2022 through the sale to August Mack Environmental, Inc. for total consideration of approximately $1.4 million.
  • Executed over 100,000 square feet of rental business across our managed portfolio.
  • A $0.5 million tax benefit from the partial release of the net operating loss valuation allowance.

About Comstock

Comstock is a leading developer and manager of mixed-use and transit-oriented properties in the Washington, DC metro area. As a vertically integrated, multi-faceted asset management and real estate services company, Comstock has designed, developed, built, acquired and managed thousands of residential units and millions of square feet of commercial and mixed-use properties. since 1985, and has been selected by multiple jurisdictions as the lead public-private partnership developer responsible for developing some of the largest transit-focused developments in the Washington, DC area. Comstock offers a wide range of real estate-related services, including asset management, strategic capital markets advisory services, development and construction management, marketing and leasing services, management office and retail properties, residential property management and commercial garage management. Comstock is listed on the Nasdaq under the symbol CHCI. For more information, please visit: ComstockCompanies.com.

Caution Regarding Forward-Looking Statements

This 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 the use of words such as “anticipate”, ” believe, “”estimate”, “may”, “intend”, “expect”, “will”, “should”, “seek” or other similar expressions. Forward-looking statements are based in large party on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. A number of important factors could cause actual results to differ materially from those indicated in the forward-looking statements. Additional information regarding the factors Important risk factors and uncertainties can be found under the heading “Risk Factors” in our most recent Annual Report on Form 10-K, as filed. 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.

Contact Investor
Christopher Guthrie, Chief Financial Officer
cguthrie@comstockcompanies.com
703-230-1292

Media Contact
Shanna Wilson
swilson@comstockcompanies.com
917-674-3096

COMSTOCK HOLDING COMPANIES, INC.
Consolidated balance sheets
(Unaudited; in thousands, except per share data)

March, 31st, The 31st of December,
2022 2021
Assets
Current assets:
Cash and cash equivalents $ 11,560 $ 15,823
Accounts Receivable 802 46
Debtors – related parties 2,505 1,697
Prepaid expenses and other current assets 415 197
Current assets held for sale 2,313
Total current assets 15,282 20,076
Fixed assets, net 389 264
Leasehold improvements, net 119
Investments in real estate projects 7,490 4,702
Operating lease assets 7,161 7,245
Deferred income taxes, net 11,766 11,300
other assets 90 15
Total assets 42,297 43,602
Liabilities and equity
Current liabilities:
Staff costs to be paid $ 1,394 $ 3,468
Accounts payable and accrued liabilities 1,104 783
Current operating lease debts 667 616
Current liabilities held for sale 1,194
Total current liabilities 3,165 6,061
Credit facility – due to affiliates 5,500 5,500
Operating lease debts 6,744 6,745
Total responsibilities 15,409 18,306
Commitments and contingencies (note 7)
Equity:
Series C Preferred Shares; nominal value of $0.01; aggregate liquidation preference of $17,203; 20,000 shares authorized; 3,441 issued and outstanding as of March 31, 2022 and December 31, 2021 6,765 6,765
class A ordinary shares; nominal value of $0.01; 59,780 shares authorized; 8,232 issued and 8,146 outstanding as of March 31, 2022; 8,102 issued and 8,017 outstanding as of December 31, 2021 82 81
class B ordinary shares; nominal value of $0.01; 220 shares authorized, issued and outstanding as of March 31, 2022 and December 31, 2021 2 2
Premium 200 461 200 617
Treasury shares, at cost (86 Class A common shares) (2,662 ) (2,662 )
Accumulated deficit (177,760 ) (179,507 )
Full shareholder equity 26,888 25,296
Total Liabilities and Equity 42,297 43,602

COMSTOCK HOLDING COMPANIES, INC.
Consolidated Statements of Income
(Unaudited; in thousands, except per share data)

Quarter ended March 31
2022 2021
Revenue $ 8,731 $ 6,840
Operating costs and expenses:
Revenue cost 6,935 6,078
Selling, general and administrative expenses 387 299
Depreciation and amortization 44 20
Total operating costs and expenses 7,366 6,397
Operating income (loss) 1,365 443
Other income (expenses)
Interest expense (59 ) (58 )
Gain (loss) on real estate projects 252 6
Other income (expenses), net 1
Profit (loss) from continuing operations before income taxes 1,558 392
Provision for (benefit of) income tax (456 ) 2
Net income (loss) from continuing operations 2014 390
Net profit (loss) from discontinued operations, net of tax (267 ) (143 )
Net profit (loss) $ 1,747 $ 247
Weighted average common shares outstanding:
Basic 8,340 8,166
Diluted 8,974 8,997
Net earnings (loss) per share:
Basic – Continuous Operations $ 0.24 $ 0.05
Basic – Discontinued operations (0.03 ) (0.02 )
Basic net earnings (loss) per share $ 0.21 $ 0.03
Diluted – Continuing operations $ 0.22 $ 0.05
Diluted – Discontinued operations (0.03 ) (0.02 )
Diluted net earnings (loss) per share $ 0.19 $ 0.03

COMSTOCK HOLDING COMPANIES, INC.
Non-GAAP Financial Measures
(Unaudited; in thousands)

Adjusted EBITDA

The following table provides a reconciliation of net income (loss) from continuing operations, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA:

Quarter ended March 31
2022 2021
Net income (loss) from continuing operations $ 2014 $ 390
Interest expense, net 59 58
Income taxes (456 ) 2
Depreciation and amortization 44 20
Stock-based compensation 197 153
(Gain) loss on equity accounted investments (252 ) (6 )
Adjusted EBITDA $ 1,606 $ 617

We define Adjusted EBITDA as net income from continuing operations, excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, compensation based on equity and the gain or loss on equity accounted investments.

We use Adjusted EBITDA to assess financial performance, analyze underlying trends in our business, and establish operational objectives and forecasts that are used when allocating resources. We plan to calculate Adjusted EBITDA consistently using the same methods in each period.

We believe Adjusted EBITDA is a useful measure because it allows investors to better understand changes over comparative periods by providing financial results that are unaffected by certain non-cash items that management does not consider to be indicative. of our operational performance.
Although we believe Adjusted EBITDA is useful to investors when evaluating our business, it is not prepared and presented in accordance with GAAP and should therefore be viewed as supplemental. Adjusted EBITDA should not be considered in isolation or as a substitute for other measures of financial performance presented in accordance with GAAP. Adjusted EBITDA may differ from similarly titled measures presented by other companies.

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