Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) on May 14 reported a net loss for the quarter ended March 31 of $892,000 (-$.05 per diluted share), compared to a loss of $2.6 million (-$.15) for the comparable quarter in 2009.
Revenues for the 2010 quarter increased 84.4% to $9.1 million from $4.9 million for the comparable 2009 quarter. Home building revenues totaled $5.7 million, a 35.7% increase over the same period of 2009 as closings increased 100% to 16 units in the first quarter of 2010 as compared to 8 settlements during the comparable quarter in 2009. The company did not break out data on average prices.
New orders, net of cancellations, increased 50.0% to 18 units, up from 12 in the 2009 quarter. There was one cancellation in the first quarter of 2010 compared to zero in the first quarter of 2009.
Comstock ended the quarter with a backlog of 5 homes sold but not settled, a decrease of 28.6% on a unit basis compared to the same period in 2009. The value of gross revenue applicable to the backlog units decreased 14.1% to $1.9 million, when compared to the backlog at the end of the first quarter in 2009.
Gross margins on homebuilding were zero in the first quarter of 2010, unchanged from the same period in 2009. SG&A was down to $1.45 million from 2.04 million in the prior-year quarter.
The company reported other revenues for the quarter of $3.4 million, a 325% increase over the same period of 2009, including $2.8 million from the sale of land to other builders and rental income. During the quarter, the company also recognized other income related to settlements with vendors on trade payables of $0.8 million, as compared to $0.3 million of other income related to settlements with vendors on trade payables in the same period of 2009.
As of March 31, 2010 the Company's total debts were $37.9 million, representing a decrease of $62.4 million, or 62.2% from the end of the first quarter of last year and a decrease of $29.7 million, or 43.9% from December 31, 2009. In addition to the decrease of liabilities resulting from the restructuring of its Senior Note, the company recorded an additional $15.9 million decrease in bank debt in connection with the deconsolidation of certain subsidiaries of which the company is no longer the primary beneficiary. Total debt is down from approximately $340 million at peak in 2006.
Comstock ended the quarter with approximately $1.03 million in cash and another $3.3 million in restricted cash.
"We continue to focus on enhancing shareholder value and on positioning Comstock to capitalize on emerging opportunities in a stabilizing market." said Christopher Clemente, chairman and CEO. "We believe our Strategic Realignment Plan, implemented in the latter half of 2009, has greatly enhanced our ability to return Comstock to profitability on a regular basis in the near future."
Comstock shares closed at $2.57 Wednesday, down 5.5% on the session as the overall market continued its recent, Eurodebt-inspired selloff.
