Comstock(US:CHCI)2023-08-10 16:00Revenue 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]