Comstock(US:CHCI)2022-11-09 16:00Revenue 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].