Revenue Growth - Revenue for the three months ended June 30, 2024, was $10,753,000, representing a 19.9% increase from $8,967,000 in the same period of 2023[82] - Total revenue increased by 11.2% in 2024, reaching $21.39 million compared to $19.24 million in 2023, driven by a $1.7 million increase in recurring fee-based revenue from property and parking management subsidiaries[87] - The total operating revenue from asset management was $12.25 million, accounting for 57.2% of total revenue, while parking management revenue surged by 66.5% to $3.70 million[87] Revenue Breakdown - Asset management revenue increased by $624,000, or 11.6%, to $5,991,000, while property management revenue rose by $183,000, or 7.3%, to $2,703,000[83] - Parking management revenue surged by $979,000, or 90.6%, to $2,059,000, driven by the expansion of the managed portfolio[83] Operating Costs and Expenses - Total operating costs and expenses for the three months ended June 30, 2024, were $9,526,000, an increase of 14.4% from $8,324,000 in 2023[84] - Operating costs and expenses rose by 10.0% to $19.01 million in 2024, primarily due to a $1.2 million increase in personnel expenses and a $0.3 million increase in reimbursable expenses[88] - The cost of revenue increased by $1,226,000, or 16.0%, primarily due to a net increase in personnel expenses[84] Financial Performance - Adjusted EBITDA for the six months ended June 30, 2024, was $3.09 million, up from $2.65 million in 2023, reflecting significant increases in recurring fee-based property and parking management revenue[93] - Interest income for the six months ended June 30, 2024, was $0.31 million, a $0.31 million increase compared to 2023, due to interest earned on previously inactive money market sweep accounts[89] - The provision for income tax increased to $0.6 million in 2024 from $0.3 million in 2023, driven by a $0.9 million increase in pre-tax income[90] Cash Flow and Liquidity - Net cash used in operating activities improved by $1.41 million, decreasing to $(0.97) million in 2024 from $(2.37) million in 2023[97] - The company experienced a $1.4 million decrease in net cash used in operating activities, influenced by increased accounts receivable collections[98] - Cash and cash equivalents as of June 30, 2024, were $17.4 million, with an additional $10.0 million available from the credit facility, indicating adequate liquidity[95] Portfolio and Development - The managed portfolio includes 69 assets, with a total size of approximately 10 million square feet projected at full build-out[76] - The commercial portfolio's leasing rate is currently at 82%, while the residential portfolio boasts a 97% leasing rate[75] - The development pipeline includes 5 commercial assets totaling approximately 1.5 million square feet and 6 residential assets with 2,599 units, representing approximately 2.8 million square feet[76] Strategic Focus - The company aims to maintain a limited financial role in future development activities, focusing on fee-based services[79] - Management is committed to maximizing shareholder value while capitalizing on growth opportunities in the Washington, D.C. area[80]
Comstock(CHCI) - 2024 Q2 - Quarterly Report