- Revenue increased 6% to $9.0 million, representing 12th
consecutive quarter of YoY growth
- YTD revenue increased 12% to $19.2 million, including 25%
growth in recurring fee-based revenue streams
- Net income of $0.5 million; $1.2 million YTD
- Generated over $1.0 million of Adjusted EBITDA; $2.7 million
YTD
- Commercial portfolio remains over 90% leased; in-place rent
growth of 6% vs. prior year
- Residential portfolio now over 95% leased; in-place rent
growth of 7% vs. prior year
Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or
the “Company”), a leading asset manager, developer, and operator of
mixed-use and transit-oriented properties in the Washington, D.C.
region, announced its financial results for the second quarter
ended June 30, 2023.
“We continue to benefit from the flight-to-quality trend, which
in recent years has significantly increased demand for mixed-use
and transit-oriented developments in premier suburban locations and
contributed to our top-line revenue growth,” said Christopher
Clemente, Comstock’s Chairman and Chief Executive Officer. “As
evidenced by our ability to attract and retain tenants in a
challenging environment faced with widespread capital market
headwinds, we are well positioned for ongoing success. I am
confident our growth will persist well into the future, primarily
based on three key factors: our virtually debt-free, asset-light,
fee-based business model, the proven demand for the high-quality
assets we manage, develop, and operate, and the tireless dedication
of our team members, who show up every day and are committed to
delivering extraordinary services and experiences for our
customers.”
Key Performance Metrics1
($ in thousands, except per share and
portfolio data)
Q2 2023
Q2 2022
YTD 2023
YTD 2022
Revenue
$
8,967
$
8,467
$
19,242
$
17,198
Income from operations
$
643
$
1,117
$
1,964
$
2,482
Net income
475
714
1,229
2,728
3
Adjusted EBITDA
$
1,027
$
1,388
$
2,653
$
2,994
Net income per share — diluted
$
0.05
$
0.30
2
$
0.12
$
0.53
2, 3
Managed Portfolio - # of assets
45
36
45
36
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
2
Amounts reflect $2.0 million positive
impact of Q2 2022 Series C Preferred Stock redemption
3
Amounts reflect impact of $0.5 million
non-cash tax benefit stemming from partial release of deferred tax
valuation allowance
Q2 2023 Highlights
- Welcomed Seerist, Inc. to Reston Station’s Commerce District,
the fifth new lease signed to Reston Station in 2023.
- Increased leased percentage of managed commercial portfolio to
91%, up from 85% in Q2 2022.
- Increased leased percentage of managed residential portfolio to
97%, up from 89% in Q2 2022.
- Significant construction progress on Reston Row development
(Phase II of Reston Station), while advancing plans for multiple
properties in the development pipeline to prepare them for
commencement in 2024.
About Comstock
Founded in 1985, Comstock is a leading asset manager, developer,
and operator of mixed-use and transit-oriented properties in the
Washington, D.C. region. With a managed portfolio comprising
approximately 10 million square feet at full build-out that
includes stabilized and development assets strategically located at
key Metro stations, Comstock is at the forefront of the urban
transformation taking place in the fastest growing segments of one
of the nation’s best real estate markets. Comstock’s developments
include some of the largest and most prominent mixed-use and
transit-oriented projects in the mid-Atlantic region, as well as
multiple large-scale public-private partnership developments. For
more information, please visit Comstock.com.
Cautionary Statement 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 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.
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Balance
Sheets
(Unaudited; In thousands)
June 30,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
9,031
$
11,722
Accounts receivable, net
499
504
Accounts receivable - related parties
4,984
3,291
Prepaid expenses and other current
assets
532
264
Total current assets
15,046
15,781
Fixed assets, net
471
421
Intangible assets
144
144
Leasehold improvements, net
104
119
Investments in real estate ventures
6,234
7,013
Operating lease assets
7,212
7,625
Deferred income taxes, net
11,052
11,355
Other assets
43
15
Total assets
$
40,306
$
42,473
Liabilities and Stockholders'
Equity
Current liabilities:
Accrued personnel costs
1,739
4,959
Accounts payable and accrued
liabilities
840
742
Current operating lease liabilities
822
791
Total current liabilities
3,401
6,492
Operating lease liabilities
6,707
7,127
Total liabilities
10,108
13,619
Stockholders' equity:
Class A common stock
94
93
Class B common stock
2
2
Additional paid-in capital
201,649
201,535
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(168,885
)
(170,114
)
Total stockholders' equity
30,198
28,854
Total liabilities and stockholders'
equity
$
40,306
$
42,473
COMSTOCK HOLDING COMPANIES,
INC.
Consolidated Statements of
Operations
(Unaudited; In thousands, except
per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue
$
8,967
$
8,467
$
19,242
$
17,198
Operating costs and expenses:
Cost of revenue
7,681
6,831
16,004
13,766
Selling, general, and administrative
572
469
1,136
856
Depreciation and amortization
71
50
138
94
Total operating costs and expenses
8,324
7,350
17,278
14,716
Income (loss) from operations
643
1,117
1,964
2,482
Other income (expense):
Interest expense
—
(69
)
—
(128
)
Gain (loss) on real estate ventures
(68
)
17
(479
)
269
Income (loss) from continuing operations
before income tax
622
1,066
1,532
2,624
Provision for (benefit from) income
tax
147
352
303
(104
)
Net income (loss) from continuing
operations
475
714
1,229
2,728
Net income (loss) from discontinued
operations, net of tax
—
(10
)
—
(277
)
Net income (loss)
475
704
$
1,229
$
2,451
Impact of Series C preferred stock
redemption
—
2,046
—
2,046
Net income (loss) attributable to common
stockholders
$
475
$
2,750
$
1,229
$
4,497
Weighted-average common stock
outstanding:
Basic
9,632
8,599
9,608
8,470
Diluted
10,052
9,157
10,060
9,033
Net income (loss) per share:
Basic - Continuing operations
$
0.05
$
0.32
$
0.13
$
0.56
Basic - Discontinued operations
—
—
—
(0.03
)
Basic net income (loss) per share
$
0.05
$
0.32
$
0.13
$
0.53
Diluted - Continuing operations
$
0.05
$
0.30
$
0.12
$
0.53
Diluted - Discontinued operations
—
—
—
(0.03
)
Diluted net income (loss) per share
$
0.05
$
0.30
$
0.12
$
0.50
COMSTOCK HOLDING COMPANIES,
INC.
Non-GAAP Financial
Measures
(Unaudited; In thousands)
Adjusted EBITDA
The following table presents a
reconciliation of net income (loss) from continuing operations, the
most directly comparable financial measure as measured in
accordance with GAAP, to Adjusted EBITDA:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net income (loss) from continuing
operations
$
475
$
714
$
1,229
$
2,728
Interest expense
—
69
—
128
Income taxes
147
352
303
(104
)
Depreciation and amortization
71
50
138
94
Stock-based compensation
266
220
504
417
(Gain) loss on equity method
investments
68
(17
)
479
(269
)
Adjusted EBITDA
$
1,027
$
1,388
$
2,653
$
2,994
We define Adjusted EBITDA as net income (loss) from continuing
operations, excluding the impact of interest expense (net of
interest income), income taxes, depreciation and amortization,
stock-based compensation, and gain or loss on equity method
investments.
We use Adjusted EBITDA to evaluate financial performance,
analyze the underlying trends in our business and establish
operational goals and forecasts that are used when allocating
resources. We expect to compute Adjusted EBITDA consistently using
the same methods each period.
We believe Adjusted EBITDA is a useful measure because it
permits investors to better understand changes over comparative
periods by providing financial results that are unaffected by
certain non-cash items that are not considered by management to be
indicative of our operational performance.
While we believe that Adjusted EBITDA is useful to investors
when evaluating our business, it is not prepared and presented in
accordance with GAAP, and therefore should be considered
supplemental in nature. Adjusted EBITDA should not be considered in
isolation, or as a substitute, for other financial performance
measures presented in accordance with GAAP. Adjusted EBITDA may
differ from similarly titled measures presented by other
companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810597697/en/
Investor Contact Christopher
Guthrie Executive Vice President & Chief Financial Officer
cguthrie@comstock.com 703-230-1292
Media Contact Shanna Wilson
shanna.wilson@allisonpr.com 917-674-3096
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