EX-99.1 2 q322earningsrelease.htm EX-99.1 Document
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Comstock Reports Third Quarter 2022 Results
•Revenue increased 26% to $12.8 million in Q3 2022 vs. $10.1 million in Q3 2021; YTD revenue increased 29% to $30.0 million vs. $23.3 million in 2021
•Operating income increased 24% to $3.9 million in Q3 2022 vs. $3.1 million in Q2 2021; YTD operating income increased 56% to $6.4 million in Q3 2022 vs. $4.1 million in 2021
•Further strengthened balance sheet through pay off of $5.5 million balance on $10.0 million revolving credit facility
RESTON, Va. — November 10, 2022 — Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”) announced its financial results for the three and nine months ended September 30, 2022.

“We continue to achieve positive financial results, primarily driven by the consistency and strength of our Anchor Portfolio and highlighted by our 9th consecutive quarter of year-over-year top line growth,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “We completed the deleveraging of our balance sheet by paying off our last remaining debt, minimizing the risk associated with rising interest rates and positioning us to continue our recent trend of year-over-year revenue and earnings growth. Our growing revenue pipeline and our low-leverage, asset-light business model will drive further earnings growth, allowing us to out-perform many industry peers and deliver value for our shareholders.”
Key Performance Metrics1
($ in thousands, except per share data)
RevenueQ3 2022Q3 2021YTD 2022YTD 2021
$12,813 $10,164 $30,011 $23,328 
Income from operations$3,875 $3,137 $6,357 $4,072 
Net income2
3,6893,0576,41715,096
Adjusted EBITDA$4,143 $3,317 $7,137 $4,595 
Net income per share — diluted$0.37 $0.34 $0.90 $1.67 
Managed Portfolio - # of assets40304030
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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
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Net income for YTD 2021 includes the impact of a $11.3 million tax benefit stemming from the partial release of deferred tax valuation allowance. Excluding this impact, YTD 2022 net income increased 70% vs. the prior year, to $6.5 million
Q3 2022 Highlights
•Recognized $3.9 million incentive fee revenue based on achievement of operating asset stabilization, pursuant to the terms of the 2022 Asset Management Agreement (“2022 AMA”).
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•Continued to deleverage the balance sheet to reduce exposure to increasing interest rates through $5.5 million full pay down of outstanding principal balance on $10.0 million revolving credit facility.
•Secured approximately 98,000 square feet of new leases in Q3 related to office and retail assets, including a lease to Puttshack, whose 29,000 square foot facility will anchor Phase II of Reston Station, (which is currently under construction) and will be the first active entertainment venue of its kind in the area; Portfolio-wide, new leases secured year-to-date now at nearly 350,000 square feet.
•Advanced development of Phase II of Reston Station, the Reston Row District, that includes approximately 500,000 square feet of office space in two Trophy-Class towers, 450 multi-family units, 136,000 square feet of retail, dining, and entertainment venues, and Virginia’s first JW Marriott luxury hotel and branded condominium tower.
•Further expansion of managed assets in the Anchor Portfolio via significant additions land to the Reston Station development, including approximately 8 acres across Wiehle Avenue from the JW Marriott hotel/condo that will represent Phase III of Reston Station and approximately 3 acres located at the intersection of Reston Station Boulevard and Metro Center Drive. The Reston Station neighborhood now covers nearly 80 acres spanning the Dulles Toll Road and surrounding the Wiehle Reston-East Metro Station.
•Continued expansion of the ParkX portfolio of managed commercial garages, with new locations open or coming soon in Fairfax County, Montgomery County, and Washington, D.C.
•Utilization of leased commercial properties in our managed portfolio increased during the period, a trend that began early in the year.
•Residential portfolio continues to experience year-over-year growth in occupancy levels and revenue.
About Comstock
Founded in 1985, Comstock is a leading developer, investor, and asset manager of mixed-use and transit-oriented properties in the Washington, D.C. region. With a managed portfolio comprising approximately 10 million square feet of transit-oriented and mixed-use properties, including 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
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obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Investor ContactMedia Contact
Christopher GuthrieShanna Wilson
Executive Vice President & Chief Financial Officer
shanna.wilson@allisonpr.com
cguthrie@comstock.com
917-674-3096

703-230-1292
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COMSTOCK HOLDING COMPANIES, INC.
Consolidated Balance Sheets
(Unaudited; In thousands)

September 30,December 31,
20222021
Assets
Current assets:
Cash and cash equivalents$5,357 $15,823 
Accounts receivable, net793 46 
Accounts receivable - related parties6,884 1,697 
Prepaid expenses and other current assets339 197 
Current assets held for sale— 2,313 
Total current assets13,373 20,076 
Fixed assets, net404 264 
Intangible assets144 — 
Leasehold improvements, net126 — 
Investments in real estate ventures7,207 4,702 
Operating lease assets6,807 7,245 
Deferred income taxes, net11,470 11,300 
Other assets22 15 
Total assets$39,553 $43,602 
Liabilities and Stockholders' Equity
Current liabilities:
Accrued personnel costs4,307 3,468 
Accounts payable and accrued liabilities818 783 
Current operating lease liabilities692 616 
Current liabilities held for sale— 1,194 
Total current liabilities5,817 6,061 
Credit facility - due to affiliates— 5,500 
Operating lease liabilities6,393 6,745 
Total liabilities12,210 18,306 
Stockholders' equity:
Series C preferred stock— 6,765 
Class A common stock93 81 
Class B common stock2 2 
Additional paid-in capital201,330 200,617 
Treasury stock(2,662)(2,662)
Accumulated deficit(171,420)(179,507)
Total stockholders' equity27,343 25,296 
Total liabilities and stockholders' equity$39,553 $43,602 
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COMSTOCK HOLDING COMPANIES, INC.
Consolidated Statements of Operations
(Unaudited; In thousands, except per share data)


Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Revenue$12,813 $10,164 $30,011 $23,328 
Operating costs and expenses:
Cost of revenue8,346 6,695 22,112 18,275 
Selling, general, and administrative537 309 1,393 916 
Depreciation and amortization55 23 149 65 
Total operating costs and expenses8,938 7,027 23,654 19,256 
Income (loss) from operations3,875 3,137 6,357 4,072 
Other income (expense):
Interest expense(94)(60)(222)(176)
Gain (loss) on real estate ventures(31)1 238 (93)
Other income (expense), net1 4 2 4 
Income (loss) from continuing operations before income tax3,751 3,082 6,375 3,807 
Provision for (benefit from) income tax62 25 (42)(11,289)
Net income (loss) from continuing operations3,689 3,057 6,417 15,096 
Net income (loss) from discontinued operations, net of tax(99)(137)(376)(724)
Net income (loss)3,590 2,920 6,041 14,372 
Impact of Series C preferred stock redemption — — 2,046 — 
Net income (loss) attributable to common shareholders$3,017 $11,205 $4,764 $11,452 
Weighted-average common stock outstanding:
Basic9,4648,2348,8068,205
Diluted10,0079,0729,3639,030
Net income (loss) per share:
Basic - Continuing operations$0.39 $0.37 $0.96 $1.84 
Basic - Discontinued operations(0.01)(0.02)(0.04)(0.09)
Basic net income (loss) per share$0.38 $0.35 $0.92 $1.75 
Diluted - Continuing operations$0.37 $0.34 $0.90 $1.67 
Diluted - Discontinued operations(0.01)(0.02)(0.04)(0.08)
Diluted net income (loss) per share$0.36 $0.32 $0.86 $1.59 
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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 September 30,Nine Months Ended September 30,
2022202120222021
Net income (loss) from continuing operations$3,689 $3,057 $6,417 $15,096 
Interest expense94 60 222 176 
Income taxes62 25 (42)(11,289)
Depreciation and amortization55 23 149 65 
Stock-based compensation212 153 629 454 
(Gain) loss on equity method investments31 (1)(238)93 
Adjusted EBITDA$4,143 $3,317 $7,137 $4,595 

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.
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