On March 31, 2021, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the "Company"), announced financial results for the year ended December 31, 2020:
Highlights of 2020 year-end financial results:
Company 2020 highlights:
"The Covid-19 pandemic created many challenges for our industry in 2020. I am pleased to report that as a result of the commitment of our dedicated team of commercial real estate professionals, Comstock was able to generate growth in our top and bottom lines, most notably increasing our year over year net income by 133% while increasing revenues in all aspects of our operations," said Christopher Clemente, Chairman and CEO of Comstock Holding Companies Inc. "Our success in 2020 demonstrates the financial stability provided by our long-term asset management agreements, the quality of our portfolio assets and the continued strong demand for our real estate and real estate related services."
About Comstock Holding Companies, Inc.
Comstock Holding Companies, Inc. ("Comstock" or "CHCI") is a developer, operator, and asset manager of mixed-use and transit-oriented development properties in the greater Washington, D.C. metropolitan area, where we focus primarily on select high-growth urban and transitioning "sub-urban" markets. We provide a broad range of real estate asset management services, including development and construction management services, leasing and property management services, debt and equity financing origination, and other real estate related services. Our customers primarily include private and institutional owners and investors in the real estate properties that we manage and various governmental bodies that have a vested interest in public-private partnerships responsible for the development of certain properties that we develop and manage. CHCI's managed portfolio includes two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area; Reston Station, a five million square foot transit-oriented and mixed-use development in Reston, Virginia, and Loudoun Station, a nearly 2.5 million square foot transit-oriented, mixed-use development in Ashburn, Virginia, as well as other additional development assets. We also invest capital on behalf of our asset management clients and institutional real estate investors in office, retail, residential and mixed-use properties, generally retaining an economic interest for the Company and providing management services to those properties, thereby enabling the Company to increase its assets under management in order to realize competitive advantages of scale and enhance our overall returns. The Company also provides additional fee-based real estate services, including corporate planning, capital markets, brokerage, title insurance, design, and environmental consulting and engineering services, to properties in the Company's managed portfolio and to other clients in the U.S. Mid-Atlantic Region.
Comstock Holding Companies, Inc. is publicly traded on NASDAQ under the symbol CHCI. For more information, visit www.ComstockCompanies.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.
Christopher Guthrie, 703-230-1292
Chief Financial Officer
Source: Comstock Holding Companies, Inc.
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share data)
December 31, 2020 December 31, 2019 ASSETS Current assets: Cash and cash equivalents $ 7,032 $ 3,511 Trade receivables, net 1,482 1,886 Trade receivables - related parties 3,598 3,644 Prepaid and other assets, net 242 274 Total current assets 12,354 9,315 Equity method investments at fair value 6,307 8,421 Fixed assets, net 266 278 Operating lease right-of-use assets 7,914 114 Goodwill 1,702 1,702 Intangible assets, net 36 103 TOTAL ASSETS $ 28,579 $ 19,933 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accrued personnel costs $ 2,442 $ 2,916 Accounts payable 523 1,438 Accrued liabilities 964 166 Short term operating lease liabilities 569 -- Short term notes payable - due to affiliates, net of discount -- 5,706 Short term notes payable 5 77 Total current liabilities 4,503 10,303 Long term notes payable - due to affiliates 5,500 -- Long term notes payable, net of deferred financing charges -- 1,212 Long term operating lease liabilities, net of current portion 7,361 61 TOTAL LIABILITIES $ 17,364 $ 11,576 Commitments and contingencies (Note 10) STOCKHOLDERS' EQUITY Series C preferred stock, $0.01 par value, 20,000,000 shares authorized, 3,440,690 shares issued and outstanding with a liquidation preference of $17,203 at December 31, 2020 and 2019 $ 6,765 $ 6,765 Class A common stock, $0.01 par value, 59,779,750 shares authorized, 7,953,729 and 7,849,756 issued and 7,868,159 and 7,764,186 outstanding at December 31, 2020 and 2019, respectively 79 78 Class B common stock, $0.01 par value, 220,250 shares authorized, issued and outstanding at December 31, 2020 and 2019 2 2 Additional paid-in capital $ 200,147 $ 199,372 Treasury stock, at cost (85,570 shares Class A common stock) (2,662 ) (2,662 ) Accumulated deficit (193,116 ) (195,198 ) TOTAL EQUITY $ 11,215 $ 8,357 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 28,579 $ 19,933
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
For the years ended December 31, 2020 2019 Revenue Asset management $ 21,923 $ 19,605 Real estate services 6,803 5,712 Total revenue 28,726 25,317 Operating expenses Direct costs - asset management 18,445 16,561 Direct costs - real estate services 4,097 4,611 General and administrative 2,956 1,487 Sales and marketing 661 383 Operating income 2,567 2,275 Interest expense (379 ) (474 ) Other income, net 112 225 Income before income tax expense 2,300 2,026 Income tax expense (25 ) (2 ) Loss on equity method investments carried at fair value (193 ) (560 ) Net income from continuing operations 2,082 1,464 Net loss from discontinued operations, net of tax -- (571 ) Net income $ 2,082 $ 893 Income per share from continuing operations Basic net income per share $ 0.26 $ 0.22 Diluted net income per share $ 0.24 $ 0.22 Loss per share from discontinued operations Basic net loss per share $ -- $ (0.09 ) Diluted net loss per share $ -- $ (0.09 ) Income per share Basic net income per share $ 0.26 $ 0.13 Diluted net income per share $ 0.24 $ 0.13 Basic weighted average shares outstanding 8,056 6,617 Diluted weighted average shares outstanding 8,539 6,799