Company Overview - Comstock Holding Companies, Inc. reported earnings for the quarter ended March 31, 2024[9]. - The company is classified as an emerging growth company under the Securities Act of 1933[6]. - The company is headquartered at 1900 Reston Metro Plaza, Reston, Virginia[2]. - Christopher Clemente serves as the Chairman and Chief Executive Officer[16]. - The company’s telephone number is (703) 230-1985[4]. Financial Reporting - The press release was issued on May 14, 2024, detailing the financial results[9]. - The report is not deemed "filed" under the Securities Exchange Act of 1934[10]. - The report includes an interactive data file embedded within the Inline XBRL document[8]. - The financial statements and exhibits are part of the filing requirements[11]. - The company has not elected to use the extended transition period for new financial accounting standards[6].

Business Operations - Comstock completed the sale of Comstock Environmental Services, LLC on March 31, 2022, reflecting a strategic divestiture to focus on asset management growth[18]. - Comstock operates a fee-based, asset-light, and substantially debt-free business model, which mitigates risks associated with real estate development[7]. - The company aims to diversify and grow its managed portfolio of assets both organically and through third-party relationships[7]. - Comstock's asset management services platform is anchored by a long-term agreement that extends through 2035, covering all properties in the Anchor Portfolio[44]. - The company operates under long-term asset management agreements that provide recurring fee-based revenue streams, with a cost-plus fee structure[164]. Financial Performance - The aggregate market value of the voting and non-voting common equity held by non-affiliates was $11.91 million as of June 30, 2023[38]. - Total current assets increased to $24,386 million in December 2023, up from $15,781 million in December 2022, representing a growth of 54.5%[46]. - Cash and cash equivalents rose to $18,788 million, compared to $11,722 million in the previous year, marking a 60.1% increase[46]. - Total liabilities decreased to $12,723 million from $13,619 million, a reduction of 6.6% year-over-year[46]. - Stockholders' equity increased significantly to $37,216 million, up from $28,854 million, reflecting a growth of 29.0%[46]. - The company's revenue for the year ended December 31, 2023, was $24,877 million, an increase of 19.7% from $20,825 million in 2022[81]. - Total revenue for the year ended December 31, 2023, was $44,721 million, a 13.1% increase from $39,313 million in 2022[121]. - For the year ended December 31, 2023, the company reported a net income from continuing operations of $7,784 million, compared to $7,728 million in 2022, reflecting a slight increase[127]. - The company recognized incentive fee revenue of $4.8 million in 2023, an increase from $3.9 million in 2022, indicating a positive trend in performance fees[144]. Asset Management - The company recognized $1.3 million in revenue from asset management services for the BLVD Forty Four property for the year ended December 31, 2023[77]. - Revenue from asset management for 2023 was $29,278 million, up from $26,680 million in 2022, representing an increase of 9.9%[121]. - The managed portfolio includes 49 assets, with 13 commercial assets totaling 2.0 million square feet at 92% leased and 6 residential assets totaling 1.8 million square feet at 97% leased[167]. - The development pipeline consists of 5 commercial assets (1.5 million square feet), 6 residential assets (2,599 units, 2.8 million square feet), and 1 hotel (140 keys)[169]. Liabilities and Equity - The company’s current liabilities decreased to $6,373 million from $6,492 million, a decline of 1.8%[46]. - The company’s accumulated deficit improved to $(162,330) million from $(170,114) million, indicating a reduction in losses[46]. - The company’s basic net income per share for continuing operations was $0.81 for the year ended December 31, 2023, down from $1.09 in 2022[127]. - The company had total deferred tax assets of $12,662 million as of December 31, 2023, down from $13,298 million in 2022, primarily due to changes in valuation allowances[125]. Taxation - The effective tax rate for the year ended December 31, 2023, was 4.51%, compared to 1.59% in 2022, reflecting changes in valuation allowances and state tax rates[12]. - The company’s total current taxes for the year ended December 31, 2023, were $(102) million, compared to $180 million in 2022, reflecting a significant change in tax positions[12]. - The company’s effective tax rates for 2023 and 2022 were impacted by valuation allowance releases of $1.5 million and $1.1 million, respectively[148]. Cybersecurity - The company’s cybersecurity risk management strategy is aligned with the National Institute of Standards and Technology's framework, utilizing third-party experts for vulnerability assessments[178]. - The company has not experienced any material cybersecurity incidents to date, but acknowledges ongoing risks[181]. - The company’s cybersecurity risks are assessed annually, with management prepared to address material incidents[183]. Corporate Governance - The company has established effective disclosure controls and procedures as of December 31, 2023, according to evaluations by its CEO and CFO[199]. - The company is not subject to any material legal proceedings, and any potential liabilities are not expected to materially affect its financial position[187]. - The company has adequate insurance coverage and reserves related to legal proceedings[187]. - No changes have occurred in the company's internal control over financial reporting that materially affect its effectiveness as of December 31, 2023[202]. Real Estate Ventures - The company’s investments in real estate ventures totaled $7,077 million, slightly up from $7,013 million in the previous year[46]. - Total fixed assets, net, increased to $478 million from $421 million, a rise of 13.5%[46]. - The company entered into a Business Management Agreement with DCS Real Estate Investments, LC, with an annual management fee of $0.4 million[191]. Headquarters and Operations - The company’s principal executive offices are located at 1900 Reston Metro Plaza, 10th Floor, Reston, VA 20190[175]. - The company executed a lease for its corporate headquarters at 1900 Reston Metro Plaza, totaling 25,630 square feet as of December 31, 2023[186]. - The company executed a lease expansion agreement for an additional 3,778 square feet on November 1, 2022[196].

Company Overview - Comstock Companies, Inc. reported earnings for the fourth quarter and fiscal year ended December 31, 2023[13]. - The company is listed on the NASDAQ Capital Market under the trading symbol CHCI[2]. - The company’s principal executive offices are located in Reston, Virginia[2]. - The report was signed by Christopher Clemente, Chairman and CEO of Comstock Holding Companies, Inc.[9]. Regulatory Compliance - The report is filed under the Securities Exchange Act of 1934, indicating compliance with regulatory requirements[6]. - The company has not elected to use the extended transition period for new financial accounting standards[4]. - The company is classified as an emerging growth company under the Securities Act of 1933[12]. Earnings Report Details - The press release detailing the earnings was issued on March 21, 2024[13]. - The earnings report includes financial results that are expected to impact future performance[13]. - The report does not include specific financial figures or performance metrics in the provided content[13].

Revenue Growth and Performance - Revenue increased by 12.9% in 2023, driven by a $1.7 million increase primarily from the expansion of the managed portfolio and a $0.9 million increase in incentive fees[150] - The company’s asset management revenue grew by 12.9% to $10.6 million, contributing 73.3% of total revenue in Q3 2023[150] - Total revenue increased by 12.3% to $33.7 million in 2023, driven by a $3.7 million increase, primarily from portfolio expansion and higher incentive fees[155] - Asset management revenue grew by 7.5% to $22.5 million, contributing 66.8% of total revenue[155] - Property management revenue increased by 13.2% to $7.7 million, representing 22.9% of total revenue[155] - Parking management revenue surged by 54.0% to $3.5 million, accounting for 10.3% of total revenue[155] Managed Portfolio and Asset Details - The managed portfolio includes 46 assets, with 17 assets in the development pipeline representing 5.8 million square feet, projected to grow to 65 assets and nearly 10 million square feet at full build-out[141][137] - Commercial properties in the managed portfolio total 13 assets with 2.0 million square feet, 92% leased, while residential properties include 6 assets with 97% leased units[142] - The company’s Anchor Portfolio includes Reston Station, Loudoun Station, and Herndon Station, strategically located along Metro’s Silver Line[138] Operating Costs and Expenses - Operating costs and expenses increased by 3.0% in 2023, primarily due to a $0.1 million increase in recoverable costs and rent expense[152] - Operating costs and expenses rose by 12.0% to $26.5 million, mainly due to a $1.5 million increase in personnel expenses[157] Net Income and Financial Performance - Net income from continuing operations for Q3 2023 was $4.7 million, compared to $3.7 million in Q3 2022[149] - Adjusted EBITDA for the nine months ended September 30, 2023, was $8.3 million, compared to $7.1 million in 2022[169] Discontinued Operations and Asset Management Agreement - The company completed the sale of Comstock Environmental Services, LLC (CES) on March 31, 2022, reflecting it as a discontinued operation in financial statements[144] - On June 13, 2022, the company executed a new asset management agreement (2022 AMA) extending through 2035, increasing base fees and introducing a mark-to-market incentive fee[145] Other Income and Expenses - Other income (expense) decreased by $0.7 million, primarily due to a $1.0 million net decrease in mark-to-market valuations of real estate ventures[158] - Provision for income tax increased by $0.2 million to $0.3 million in 2023, driven by higher pre-tax income and a higher estimated tax rate[154] Cash Flow and Liquidity - Net cash used in operating activities was $0.4 million in 2023, a $2.2 million decrease from 2022, primarily due to changes in net working capital[174] - The company had $10.9 million in cash and cash equivalents and $10.0 million in available borrowings on its credit facility as of September 30, 2023[163] Parking Management Revenue - Parking management revenue increased by 37.0% to $1.3 million in Q3 2023, driven by higher activity in managed parking assets[150]

Revenue Performance - Revenue for the three months ended June 30, 2023, was $8.967 million, a 5.9% increase from $8.467 million in the same period of 2022[119] - Total revenue increased by 11.9% in 2023, reaching $19.2 million, compared to $17.2 million in 2022, driven by the expansion of the managed portfolio with 9 additional assets[127] - Property management revenue rose by 18.6% to $5.1 million, while parking management revenue surged by 65.7% to $2.2 million[127] Operating Costs and Expenses - Total operating costs and expenses for the three months ended June 30, 2023, were $8.324 million, reflecting a 13.3% increase from $7.350 million in the same period of 2022[122] - Operating costs increased primarily due to a $0.4 million rise in personnel expenses from increased headcount and compensation[124] - Operating costs and expenses increased by 17.4% to $17.3 million in 2023, primarily due to a $1.4 million rise in personnel expenses and increases in IT, regulatory, and rent costs[128] Net Income and Adjusted EBITDA - The company reported a net income of $475,000 for the three months ended June 30, 2023, compared to $704,000 in the same period of 2022[119] - Adjusted EBITDA for the six months ended June 30, 2023, was $2.7 million, down from $3.0 million in the same period of 2022[137] Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were $9.0 million, with an additional $10.0 million available from credit facilities[138] - Net cash used in operating activities increased by $1.8 million in 2023, primarily due to changes in net working capital[143] - Net cash provided by investing activities was $0.1 million in 2023, a significant improvement from $(2.1 million) in 2022[145] - Net cash used in financing activities decreased by $4.1 million in 2023, largely due to a $4.0 million payment related to the early redemption of Series C Preferred Stock in 2022[146] Asset Management and Strategic Focus - Asset management revenue decreased by $171,000, or 3.1%, while property management revenue increased by $328,000, or 15.0%, and parking management revenue increased by $343,000, or 46.5%[120] - The managed portfolio currently includes 16 assets in the development pipeline, representing a total of 5.8 million square feet[110] - The company has a long-term asset management agreement that extends through 2035, covering most of the properties currently managed[108] - The company completed the sale of Comstock Environmental Services on March 31, 2022, reflecting a strategic focus on its asset management business[113] - The company aims to maximize shareholder value while expanding its managed portfolio and revenue[116] Other Income and Tax Provision - Other income (expense) showed a significant decline, totaling $(432,000) in 2023 compared to $142,000 in 2022, mainly due to a $0.7 million decrease in mark-to-market valuations of real estate ventures[129] - Provision for income tax was $0.3 million in 2023, compared to a tax benefit of $0.1 million in 2022, reflecting a $0.4 million variance due to a deferred tax asset valuation allowance release[130]

The Company maintains certain non-cancelable operating leases that contain various renewal options. (See Note 6 for additional information) The Company may also value its non-financial assets and liabilities, including items such as long-lived assets, at fair value on a nonrecurring basis if it is determined that impairment has occurred. Such fair value measurements typically use significant unobservable inputs (Level 3), unless a quoted market price (Level 1) or quoted prices for similar instruments, quote ...

The following table summarizes our cash flows for the periods indicated (in thousands): | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------|-------|-----------------------|----------|------------| | Continuing operations | | Year Ended \n2022 | December | 31, \n2021 | | Net cash provided by (used in) operating activities | $ | 8,397 | $ | 8,688 | | Net cash provided by (used in) investing activities | | (2,099) | | 1,276 | | Net cash provided by ( ...

Revenue Performance - Revenue for the three months ended September 30, 2022, was $12.8 million, a 26.1% increase from $10.2 million in the same period of 2021[108]. - Total revenue increased by 28.6% in 2022, reaching $30.0 million compared to $23.3 million in 2021, driven by a $4.0 million increase in incentive fees and growth in managed portfolio[115]. - Asset management revenue was $20.9 million, accounting for 69.7% of total revenue, while property management and parking management revenues were $6.8 million (22.8%) and $2.3 million (7.5%), respectively[115]. - Parking management revenue increased by 106.8% to $914,000 in Q3 2022, compared to $442,000 in Q3 2021[109]. Operating Costs and Expenses - Total operating costs and expenses increased by 27.2% to $8.9 million in Q3 2022, primarily due to a $2.4 million rise in personnel expenses[112]. - Operating costs and expenses rose by 22.8% to $23.7 million in 2022, primarily due to a $4.8 million increase in personnel expenses[116][118]. Net Income and Earnings - Net income from continuing operations for the three months ended September 30, 2022, was $3.7 million, compared to $3.1 million in the same period of 2021[108]. - Adjusted EBITDA for the nine months ended September 30, 2022, was $7.1 million, compared to $4.6 million in the same period of 2021[127]. Asset Management and Development - Asset management revenue accounted for 73.3% of total revenue in Q3 2022, increasing by $1.36 million or 16.9% compared to Q3 2021[109]. - The managed portfolio includes 40 operating assets, with 15 commercial assets totaling approximately 2.2 million square feet and 6 multifamily assets totaling 1,636 units[99]. - The development pipeline consists of 13 assets, including approximately 1.5 million square feet of planned commercial development and approximately 2,600 multifamily units[99]. Cash Flow and Financing - Cash and cash equivalents as of September 30, 2022, were $5.4 million, with an additional $10.0 million available from credit facilities[128]. - Net cash provided by operating activities decreased by $1.3 million in 2022, primarily due to changes in net working capital[132]. - Net cash used in financing activities increased by $9.9 million, driven by a $4.0 million payment for early redemption of Series C preferred stock and a $5.5 million payment to settle the credit facility[135]. Other Financial Metrics - Other income (expense) improved significantly, changing from $(0.3) million in 2021 to $0.018 million in 2022, mainly due to higher mark-to-market valuations of equity method investments[119]. - The company reported a $2.0 million discount on the redemption of Series C preferred stock, which was added to net income for the three and nine months ended September 30, 2022[104]. - The provision for income tax was $0.1 million in 2022, remaining relatively flat compared to an immaterial tax provision in 2021[114]. - The company recognized $3.9 million in incentive fees for the three and nine months ended September 30, 2022, related to an operating asset triggering event scheduled for October 1, 2022[139]. Strategic Focus - The company completed the sale of Comstock Environmental Services for approximately $1.4 million on March 31, 2022, to focus on core asset management business[103]. - The company anticipates maintaining the ability to manage risk and pursue growth opportunities in the greater Washington, D.C. area[106].

Revenue Performance - Revenue for the three months ended June 30, 2022, was $8.467 million, a 33.9% increase from $6.324 million in the same period of 2021[114] - Total revenue increased by 30.6% in 2022, reaching $17.2 million compared to $13.2 million in 2021, driven by growth in asset management fees and additional properties[121] - Asset management revenue rose by 26.1% to $11.5 million in 2022, while property management revenue increased by 29.4% to $4.3 million[121] Operating Costs and Expenses - Total operating costs and expenses increased by 26.0% to $7.350 million, primarily due to a $1.3 million rise in personnel expenses[116][118] - Operating costs and expenses grew by 20.3% in 2022, totaling $14.7 million, primarily due to an $2.4 million increase in personnel expenses[124] Net Income and Financial Performance - Net income from continuing operations for the three months ended June 30, 2022, was $714,000, compared to $11.649 million in the same period of 2021[114] - Adjusted EBITDA for the six months ended June 30, 2022, was $2.99 million, compared to $1.28 million for the same period in 2021[133] Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2022, were $8.4 million, with an additional $4.5 million available from credit facilities[134] - Net cash used in operating activities was $(590,000) for the six months ended June 30, 2022, compared to $822,000 in 2021[138] - Net cash used in investing activities was $(2.1 million) in 2022, a significant change from $2.5 million provided in 2021[141] - Net cash used in financing activities increased by $4.3 million in 2022, primarily due to a $4.0 million cash payment for early redemption of Series C preferred stock[142] Strategic Focus and Development - The company completed the divestiture of Comstock Environmental Services for approximately $1.4 million to focus on core asset management business[108] - The company has a development pipeline consisting of 13 assets, including approximately 1.5 million square feet of planned commercial development and 2,600 multifamily units[104] - The company’s managed portfolio includes 40 operating assets, with 15 commercial assets totaling approximately 2.2 million square feet[104] - The company is focused on the greater Washington, D.C. area for real estate development and asset management, leveraging over 35 years of experience[112] COVID-19 Impact and Future Outlook - The company continues to monitor the impact of COVID-19, believing its Anchor Portfolio is well-positioned to withstand potential negative effects[111] - The company expects to continue generating future taxable income, supporting the recognition of tax benefits[126] - The outstanding balance of $5.5 million on the credit facility is scheduled to mature in April 2023, with plans to extend or pay down the balance[136] Preferred Stock Redemption - The Series C preferred stock redemption resulted in a $2.0 million discount compared to the carrying value, which was added to net income for the period[110]

Revenue and Income - Revenue for the three months ended March 31, 2022, was $8.731 million, a 27.6% increase from $6.840 million in the same period of 2021[109]. - The company reported a net income of $1.747 million for the three months ended March 31, 2022, compared to a net income of $247,000 in the same period of 2021[109]. - Net income from continuing operations for Q1 2022 was $2.014 million, compared to $390 thousand in Q1 2021, representing a significant increase[120]. - Adjusted EBITDA for Q1 2022 was $1.606 million, up from $617 thousand in Q1 2021, indicating strong operational performance[120]. Revenue Breakdown - Asset management revenue increased by $1.104 million (22.6%) to $5.997 million, while property management revenue rose by $501,000 (30.7%) to $2.131 million[110]. - Other income increased by $244,000, primarily due to higher mark-to-market valuations of fixed-rate debt associated with equity method investments[113]. Operating Costs and Expenses - Total operating costs and expenses for the three months ended March 31, 2022, were $7.366 million, reflecting a 15.1% increase from $6.397 million in 2021[112]. Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2022, were $11.6 million, with an additional $4.5 million available from credit facilities, reflecting adequate liquidity[121]. - Net cash used in operating activities decreased to $1.952 million in Q1 2022 from $2.040 million in Q1 2021, showing improved cash flow management[125]. - Total net decrease in cash and cash equivalents for Q1 2022 was $4.263 million, compared to a decrease of $375 thousand in Q1 2021, indicating cash flow challenges[125]. - The company has historically financed operations through internally generated funds and credit facilities, emphasizing a reliance on operational cash flow[123]. - Future liquidity may be affected by credit availability, cash flow from operations, and working capital management[122]. - The company believes it has adequate liquidity to fund current operations and meet existing debt commitments[124]. Investments and Development - The company completed the divestiture of Comstock Environmental Services for approximately $1.4 million, enhancing its focus on core asset management business[104]. - The managed portfolio includes 36 operating assets, comprising 15 commercial assets totaling approximately 2.2 million square feet and 6 multifamily assets totaling 1,636 units[99]. - The development pipeline consists of 12 assets, including approximately 1.4 million square feet of planned commercial development and approximately 2,600 multifamily units[99]. Risk Management and Strategy - The company expects to maintain the ability to manage risk and pursue growth opportunities in the greater Washington, D.C. area, leveraging over 35 years of experience[107]. - The benefit from income taxes was $0.5 million in 2022, attributed to a release of a deferred tax asset valuation allowance[114]. Financing Activities - Net cash used in investing activities was $1.785 million in Q1 2022, a shift from $1.653 million provided in Q1 2021, primarily due to a $2.7 million real estate investment[129]. - Net cash used in financing activities increased to $297 thousand in Q1 2022 from $105 thousand in Q1 2021, driven by changes in loan activity and tax payments[130].