Comstock Homebuilding Companies, which in late March disclosed that its auditor expressed doubt that the company could survive as a going concern, announced Thursday that effective May 22, 2009, Bruce Labovitz, its CFO, was no longer employed by the Company.
Comstock said Jeff Dauer, chief accounting officer, has assumed the CFO position on an interim basis.
"I believe Jeff's considerable accounting and finance background, his track record of generating accurate and timely quarterly and annual reports for Comstock over the past several years, and his thorough understanding of Sarbanes Oxley and the accounting issues relative to our industry make him well suited for this role at Comstock Homebuilding Companies," said Christopher Clemente, Comstock's chairman and CEO. "Effective immediately I will be working directly with our lenders in an effort to develop a solution that is a win-win for all parties in hopes of finding common ground that affords Comstock Homebuilding Companies an opportunity to continue operations."
On May 13, the company reported that it lost $2.65 million for the first quarter of 2009. It delivered a scant 12 homes during the quarter, generating revenues of $4.7 million, and booked net new orders of 22 for $7.4 million in anticipated revenue. It had only 20 units in backlog with an aggregate value of $5.5 million at quarter's end and was down to $3.1 million in unrestricted cash.
On March 31, Comstock reported that it had "elected not to make" an interest payment of $218,000 due on senior unsecured debt to J.P. Morgan Ventures. At the same time, it disclosed that Pricewaterhouse Coopers, its auditor, said that it had "substantial doubt that the company would continue operating throughout 2009 as a going concern."
Shares of Comstock (NASDAQ:CHCI) were trading down two cents to $0.19 in heavier-than-normal volume at midday Thursday.