Comstock(CHCI) - 2022 Q2 - Quarterly Report

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]