CORRECTED: Comstock Reports Fourth Quarter and Fiscal Year 2024 Results

Associated Press

22-03-2025

Comstock Holding Companies, Inc. (Nasdaq: CHCI) ('Comstock' or the 'Company') has issued this press release to correct an error in its reporting of Q4 2024 Adjusted EBITDA when announcing its financial results for the fourth quarter and fiscal year ended December 31, 2024 earlier today.
The Company inadvertently understated Q4 2024 Adjusted EBITDA by originally reporting a result of $3.1 million in the Key Performance Metrics table and associated non-GAAP financial measures reconciliation table. The Company's actual Q4 2024 Adjusted EBITDA was $5.4 million and Adjusted EBITDA growth presented in the third bullet of the Q4 2024 summary results consequently should have been 148%, not 45%. The corrected press release follows:
Comstock Reports Fourth Quarter and Fiscal Year 2024 Results
Consistent revenue growth and positive operating cash flows continue CHCI's successful track record
Q4 2024
Q4 revenue of $16.9 million up 54% vs. prior year, including 38% increase in recurring fee-based revenue
$3.2 million of supplemental fee revenue earned in Q4 alone
Q4 net income of $10.3 million, including 162% increase in operating income
Q4 Adjusted EBITDA increased 148% to $5.4 million
Generated $7.8 million of operating cash in Q4
Fiscal Year 2024
YTD revenue increased 15% to $51.3 million, including 25% increase in recurring fee-based revenue
YTD net income of $14.6 million, up 87% vs. prior year
YTD Adjusted EBITDA increased 11% to $11.6 million
Year-end cash holdings of $28.8 million
Managed Portfolio
Strong AUM growth continued throughout 2024, major assets on track for late 2025 delivery
23 additional AUM vs. prior year, primarily driven by rapid ParkX expansion
Commercial and Residential portfolio assets in high demand and leased well-above industry average
The Row at Reston Station nears delivery of two Trophy office towers, luxury residential tower, Virginia's first JW Marriott hotel and branded residential condominiums, and mixed-use retail
Comstock Holding Companies, Inc. (Nasdaq: CHCI) ('Comstock' or the 'Company'), a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region, announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.
'Our fiscal year 2024 results are the latest data point in what is now a seven-year track record of producing positive net earnings and consistent growth in revenue and Adjusted EBITDA,' said Christopher Clemente, Comstock's Chairman and Chief Executive Officer. 'Dating back to our transition to the asset-light, debt free business model we now deploy, our top-line CAGR is an industry-defying 25%. We have earned our reputation as a best-in-class provider of real estate services in the Washington, D.C. region, fostering consistent AUM growth that has produced stable revenue streams through our fee-based services. Our streamlined balance sheet and our ability to consistently generate operating cash provides us with significant working capital that will allows us to supplement our growth through additional investment opportunities in 2025 and beyond.'
Key Performance Metrics
($ in thousands, except per share and portfolio data)
Q4 2024
Q4 2023
YTD 2024
YTD 2023
Revenue
$
16,908
$
11,016
$
51,294
$
44,721
Net income
$
10,327
$
1,870
$
14,560
$
7,784
Adjusted EBITDA
5,377
2,165
11,597
10,423
Net income per share — diluted
$
0.99
$
0.18
$
1.41
$
0.77
Managed Portfolio - # of assets
72
49
72
49
Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure.
Mr. Clemente continued, 'In a time when companies are returning to work and individuals are seeking quality, convenient places to live, the assets in our managed portfolio continue to deliver. The stabilized commercial and residential properties that anchor the transit-oriented, mixed-use neighborhoods we serve are more than 90% leased. We recently announced a new 87,000 square foot lease with Carfax to relocate their headquarters to Reston Station's Metro Plaza District. Over the past 3 years, our dedicated team has been working hard to finalize construction and leasing for The Row at Reston Station, the second phase of the five-phase Reston Station development. This premier 1.5 million square foot development will include Virginia's first and only JW Marriott hotel and branded residential tower, the luxury BLVD Haley residential tower, and two Trophy-class office towers. Supplementing these world-class buildings are premium retail offerings that include a flagship 50,000 square foot VIDA health and wellness facility, the D.C. area's first Puttshack location that will provide an upscale, tech-themed mini-golf experience with a full bar and restaurant, and Ebbitt House, the first ever expansion of D.C.'s famous Old Ebbitt Grill. A 2,500 space parking garage will easily accommodate all tenants and guests at Northern Virginia's newest must-visit destination that is set to deliver later this fall.'
Mr. Clemente concluded, 'Finally, I would like to sincerely thank every member of the Comstock team, as well as our loyal shareholders, customers, and partners for contributing to our success in 2024. Our primary focus is on delivering exceptional results for our customers and providing exceptional experiences to all those that live, work, and play in the communities that we serve. We are well-positioned and remain committed to delivering value to all stakeholders for many years to come.'
Additional Information
Stabilized Commercial managed portfolio leased percentage of 93%; 8 new commercial leases executed in Q4, representing 104,000 sqft. of office and retail spaces; 28 new leases executed YTD, representing over 245,000 square feet.
Residential managed portfolio leased percentage of 96%; average in-place rents increased 4% vs. prior year and more than 600 units leased YTD.
ParkX-related AUM expansion led to QTD and YTD increases in total revenue of 56% and 69%, respectively, for ParkX Management subsidiary.
The Row at Reston Station construction progress on track for late 2025 delivery; JW Marriott condominium pre-sales continue to exceed expectations.
In 2024, managed portfolio assets generated well over $100 million in gross revenue for the asset owners.
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. You should not place any undue reliance on any forward-looking statement, which speaks only as of the date made. Any number of important factors could cause actual results to differ materially from those projected or suggested by the forward-looking statements. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.
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 that includes approximately 10 million square feet of stabilized, under construction, and planned assets that are strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in 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.
COMSTOCK HOLDING COMPANIES, INC.
Consolidated Balance Sheets
(Unaudited; In thousands)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
28,761
$
18,788
Accounts receivable, net
282
496
Accounts receivable - related parties
7,254
4,749
Prepaid expenses and other current assets
430
353
Total current assets
36,727
24,386
Fixed assets, net
574
478
Intangible assets
144
144
Leasehold improvements, net
60
89
Investments in real estate ventures
6,228
7,077
Operating lease assets
5,916
6,790
Deferred income taxes, net
14,720
10,885
Deferred compensation plan assets
438
53
Other assets
60
37
Total assets
$
64,867
$
49,939
Liabilities and Stockholders' Equity
Current liabilities:
Accrued personnel costs
$
4,952
$
4,681
Accounts payable and accrued liabilities
781
838
Current operating lease liabilities
922
854
Total current liabilities
6,655
6,373
Deferred compensation plan liabilities
492
77
Operating lease liabilities
5,351
6,273
Total liabilities
12,498
12,723
Stockholders' equity:
Class A common stock
97
94
Class B common stock
2
2
Additional paid-in capital
202,702
202,112
Treasury stock
(2,662
)
(2,662
)
Accumulated deficit
(147,770
)
(162,330
)
Total stockholders' equity
52,369
37,216
Total liabilities and stockholders' equity
$
64,867
$
49,939
COMSTOCK HOLDING COMPANIES, INC.
Consolidated Statements of Operations
(Unaudited; In thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
Revenue
$
16,908
$
11,016
$
51,294
$
44,721
Operating costs and expenses:
Cost of revenue
11,255
8,479
38,630
33,040
Selling, general, and administrative
487
594
2,075
2,305
Depreciation and amortization
84
—
302
212
Total operating costs and expenses
11,826
9,073
41,007
35,557
Income (loss) from operations
5,082
1,943
10,287
9,164
Other income (expense):
Interest income
196
96
672
96
Gain (loss) on real estate ventures
72
(467
)
(297
)
(1,187
)
Other income (expense), net
7
31
63
79
Income (loss) from operations before income tax
5,357
1,603
10,725
8,152
Provision for (benefit from) income tax
(4,970
)
(267
)
(3,835
)
368
Net income (loss)
$
10,327
$
1,870
$
14,560
$
7,784
Weighted-average common stock outstanding:
Basic
9,895
9,653
9,846
9,629
Diluted
10,418
10,169
10,327
10,108
Net income (loss) per share:
Basic
$
1.04
$
0.19
$
1.48
$
0.81
Diluted
$
0.99
$
0.18
$
1.41
$
0.77
COMSTOCK HOLDING COMPANIES, INC.
Non-GAAP Financial Measures
(Unaudited; In thousands)
(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 December 31,
Year Ended December 31,
2024
2023
2024
2023
Net income (loss)
$
10,327
$
1,870
$
14,560
$
7,784
Interest income
(196
)
(96
)
(672
)
(96
)
Income taxes
(4,970
)
(267
)
(3,835
)
368
Depreciation and amortization
84
—
302
212
Stock-based compensation
204
191
945
968
(Gain) loss on real estate ventures
(72
)
467
297
1,187
Adjusted EBITDA
$
5,377
$
2,165
$
11,597
$
10,423
The increases in Adjusted EBITDA for the three months and year ended December 31, 2024 are primarily driven by significant increases in recurring fee-based property and parking management revenue and supplemental asset management fee revenue.
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 in real estate ventures.
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.
[email protected] Contact
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SOURCE: Comstock Holding Companies, Inc.
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PUB: 03/21/2025 11:16 PM/DISC: 03/21/2025 11:16 PM