GlobeNewswire Inc | Aug 17, 2020 09:00AM EDT

August 17, 2020

WASHINGTON and RESTON, Va., Aug. 17, 2020 (GLOBE NEWSWIRE) -- On August 14, 2020, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the Company), announced results for the three and six months ended June 30, 2020:

Highlights of Second Quarter 2020, as compared to Second Quarter 2019:

-- Net income increased to $1.2 million during the second quarter 2020, as compared to a net loss of $0.2 million during the same period of the prior year. -- Total revenue increased by 21% to $6.5 million during the second quarter 2020, as compared to $5.3 million during the same period of the prior year. -- Revenue from asset management operations decreased by 7% to $4.1 million during the second quarter 2020, as compared to $4.4 million during the same period of the prior year, due to cost reductions resulting from receipt of financing proceeds received under the CARES Act. -- Revenue from real estate services increased by 159% to $2.3 million during the second quarter 2020, compared to $0.9 million during the same period of the prior year. -- Operating income increased to $1.3 million during the second quarter 2020, as compared to approximately breakeven operating income during the same period of the prior year.

Highlights of First Half 2020, as compared to First Half 2019:

-- Net income increased to $1.2 million during the first half 2020, as compared to a net loss of $0.2 million during the same period of the prior year. -- Total revenue increased by 31% to $13.4 million during the first half 2020, as compared to $10.2 million during the same period of the prior year. -- Revenue from asset management operations increased by 11% to $9.6 million during the first half 2020, as compared to $8.6 million during the same period of the prior year. -- Revenue from real estate services increased by 137% to $3.9 million during the first half 2020, compared to $1.6 million during the same period of the prior year. -- Operating income increased by 248% to $1.5 million during the first half 2020, as compared to $0.4 million during the same period of the prior year.

We continue to monitor the impact of the Covid-19 pandemic on the real estate market and implement the latest risk mitigation protocols recommended by the CDC and OSHA to ensure the safety of our workforce, construction crews, residential and commercial tenants, and visitors to all properties Comstock develops and manages, said Christopher Clemente, Chairman and CEO of Comstock Holding Companies Inc. I am pleased to report that to date, the financial performance of our AUM properties gives me confidence that we are well positioned to weather the pandemic storm. Our ability to grow the top and bottom lines during the second quarter and first half of 2020 demonstrates the financial stability provided by our long-term asset management agreements, the quality of our portfolio assets and the continued demand for such properties, as well as the commitment of our team to producing positive results. I look forward to reporting on our continued progress in future periods.

AboutComstock Holding Companies, Inc.

Comstock Holding Companies, Inc. (Nasdaq: CHCI) is a leading real estate development, asset management and real estate services company that has designed, developed, constructed and managed several thousand residential units and millions of square feet of residential and mixed-use projects throughout the Washington, D.C. metropolitan market since 1985. In 2019, Comstock completed the disposition of its for-sale homebuilding operation to focus exclusively on commercial real estate investment, development, asset management and real estate related services. Anchoring CHCIs transition is a long-term asset management agreement covering two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area; Reston Station, a 5+ million square foot transit-oriented and mixed-use development in Reston, Virginia, and Loudoun Station, a nearly 2.5 million square foot transit-oriented, mixed-use development in Ashburn, Virginia, and additional development assets. Comstock has significant experience entitling, designing, developing, and managing a diverse range of properties including mixed-use (commercial and residential) properties, hotels, apartments, condominiums, and large-scale infrastructure projects, including commercial parking garages serving Metro commuters.

Comstock Holding Companies, Inc. is publicly traded onNASDAQunder the symbol CHCI. For more information, visitwww.ComstockCompanies.com.

Cautionary Statement Regarding Forward-Looking Statements

This release may include "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements. Additional information concerning important risk factors and uncertainties can be found under the heading "Risk Factors" in our latest Annual Report on Form 10-K, as filed with theSecurities and Exchange Commission. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Company: Comstock Holding Companies, Inc. Christopher Guthrie, 703-230-1292 Chief Financial Officer

Source:Comstock Holding Companies, Inc.

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share and per share data)

June 30, December 2020 31, 2019ASSETS Current assets: Cash and cash equivalents $ 3,143 $ 3,511 Trade receivables 1,927 1,886 Trade receivables - related parties 2,995 3,644 Prepaid and other assets, net 348 274 Total current assets 8,413 9,315 Equity method investments at fair value 7,616 8,421 Fixed assets, net 259 278 Goodwill 1,702 1,702 Intangible assets, net 70 103 Operating lease right-of-use assets 85 114 TOTAL ASSETS $ 18,145 $ 19,933 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accrued personnel costs $ 666 $ 2,916 Accounts payable 806 1,438 Accrued liabilities 566 166 Short term notes payable - due to affiliates, net of ? 5,706 discountShort term notes payable 87 77 Total current liabilities 2,125 10,303 Long term notes payable - due to affiliates 5,519 ? Long term notes payable - net of deferred financing 545 1,212 chargesLong term operating lease liabilities, net of current 35 61 portionTOTAL LIABILITIES $ 8,224 $ 11,576 Commitments and contingencies STOCKHOLDERS? EQUITY Series C preferred stock $0.01 par value, 20,000,000shares authorized, 3,440,690 issued and outstanding $ 6,765 $ 6,765 and liquidation preference of $17,203 at June 30,2020 and December 31, 2019Class A common stock, $0.01 par value, 59,779,750shares authorized, 7,941,776 and 7,849,756 issued, 79 78 and 7,856,206 and 7,764,186 outstanding at June 30,2020 and December 31, 2019, respectivelyClass B common stock, $0.01 par value, 220,250 sharesauthorized, issued and outstanding at June 30, 2020 2 2 and December 31, 2019Additional paid-in capital 199,767 199,372 Treasury stock, at cost (85,570 shares Class A common (2,662 ) (2,662 )stock)Accumulated deficit (194,030 ) (195,198 )TOTAL COMSTOCK HOLDING COMPANIES, INC. EQUITY $ 9,921 $ 8,357 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 18,145 $ 19,933

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except per share data)

Three Months Ended June Six Months Ended June 30, 30, 2020 2019 2020 2019Revenues Revenue?asset management $ 4,140 $ 4,439 $ 9,575 $ 8,593 Revenue?real estate 2,324 898 3,855 1,626 servicesTotal revenue 6,464 5,337 13,430 10,219 Expenses Direct costs - asset 3,217 3,940 7,849 7,607 managementDirect costs - real 1,098 909 2,479 1,403 estate servicesGeneral and 634 477 1,232 781 administrativeSelling and Marketing 216 ? 380 ? Operating income 1,299 11 1,490 428 Other income, net 28 27 37 84 Interest expense (93 ) (116 ) (257 ) (134 ) Income (loss) before 1,234 (78 ) 1,270 378 income tax expenseIncome tax expense 13 ? 14 ? Loss on equity methodinvestments carried at (41 ) ? (88 ) ? fair valueNet income (loss) from 1,180 (78 ) 1,168 378 continuing operationsNet loss fromdiscontinued operations, ? (159 ) ? (530 ) net of taxNet income (loss) $ 1,180 $ (237 ) $ 1,168 $ (152 ) Income (loss) per sharefrom continuing operationsBasic net income (loss) $ 0.15 $ (0.01 ) $ 0.15 $ 0.07 per shareDiluted net income (loss) $ 0.14 $ (0.01 ) $ 0.14 $ 0.07 per shareLoss per share from discontinued operationsBasic net loss per share $ ? $ (0.02 ) $ ? $ (0.10 ) Diluted net loss per $ ? $ (0.02 ) $ ? $ (0.10 ) share Basic weighted average 8,056 6,634 8,030 5,242 shares outstandingDiluted weighted averageshares outstanding 8,348 6,634 8,294 5,420 (continuing operations)Diluted weighted averageshares outstanding ? 6,634 ? 5,242 (discontinued operations)