Comstock Homebuilding Cos. / CHCI

About Comstock Homebuilding Cos.

11465 Sunset Hills Rd., Fifth Floor, Reston, Va. 20190
www.comstockhomebuilding.com | 703-883-1700 | Founded: 1985

Industry: Real Estate | Category: Public Companies

Like other home builders, Comstock felt the significant slowdown in the housing market last year. Its stock dropped from $11.37 a share in spring 2006 to $3.71 in mid-April of this year. Comstock reported a loss of $39.8 million for 2006, compared with a profit of $27.6 million in 2005, a result of taking $57 million in writedowns and impairment charges. The company laid off 10 employees in an effort to downsize.
"The housing markets have been lousy," said Bryan Murray, vice president of investor relations. "People are out shopping, but they're not buying."
As a result, Comstock slowed its conversion of two projects — one in Leesburg, the other in Fair Oaks — from apartments to condominiums and postponed building part of a new condo development in Manassas Park. It also saw a slowdown in sales at a major project, the Eclipse on Center Park, a new high-rise condominium complex at Potomac Yard in Arlington. The prices at which it sold houses dropped, and the concessions added to deals increased, according to its filings with the Securities and Exchange Commission.
Still, the company said it plans to move forward with a condo project near the D.C. Armory.
Last year, the company bought two smaller home-building firms in Raleigh and Atlanta, which is a new market for Comstock, while pulling out of the Myrtle Beach, S.C., and Charlotte areas.

2006 Financial Data

Revenues: $245,881,000 | Net Income: $-39,845,000
Asssets: $517,429,000 | Earnings Per Share: $-2.63
Total employees: 172 | Local employees: 60