Comstock Homebuilding (CHCI) Reports Q4 Loss of $0.10, Offers Guidance

March 26, 2013 5:50 PM EDT
Comstock Homebuilding (NASDAQ: CHCI) reported Q4 EPS of ($0.10), versus ($0.14) reported last year. Revenue for the quarter came in at $14.3 million, versus $21.93 million reported last year.

2013 Outlook

"For the first time in a number of years there is clear and convincing evidence that the housing market has rebounded and will continue to improve," said Christopher Clemente, Comstock's Chairman and CEO. "The inventory of existing homes on the market has dropped to levels not seen in decades, while the number of days on market has dropped to pre-recession levels. Further, historically low interest rates are contributing to the affordability of new homes, while residential rental rates continue to climb. Although the results we reported for 2012 are disappointing, our primary focus during 2012 was securing and positioning new projects to generate positive results in 2013 and beyond. Based upon our early sales success at our recently opened new communities, 2013 is off to a great start, with unit sales and revenue in the first quarter of 2013 expected to approximate the revenue levels for all of 2012".

"Based on the increased demand for new homes in the D.C. market, and our scheduled openings of additional communities, we anticipate 2013 homebuilding revenue and home settlements to be exponentially higher than in 2012," continued Clemente. "As a result, we are projecting a return to profitability for 2013. Furthermore, we believe the rebounding housing market in the D.C. area will provide an opportunity for additional growth beyond this year. Accordingly, we anticipate generating additional growth in home settlements and revenue with the goal of reaching 250-300 settlements and $125M - $150M of revenue by 2015."

To date, the Company has settled 12 homes in the first quarter of 2013 realizing $5.4 million in revenue. The total value of settled homes combined with the value of current backlog is approximately $21.5 million, representing an increase of year-to-date homebuilding revenue of more than 80% as compared to the homebuilding revenue generated in all of 2012.

For earnings history and earnings-related data on Comstock Homebuilding (CHCI) click here.

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