GlobeNewswire Inc | Aug 16, 2021 05:00PM EDT

August 16, 2021

WASHINGTON, D.C. and RESTON, Va., Aug. 16, 2021 (GLOBE NEWSWIRE) -- On August 16, 2021, Comstock Holding Companies, Inc., (NASDAQ: CHCI) (the Company), announced financial results for the three and six months ended June 30, 2021:

Highlights of Second Quarter 2021:

-- Net income increased by 850% to $11.2 million during the second quarter 2021, as compared to $1.2 million during the same period of the prior year -- Total revenue increased by 40% to $6.3 million during the second quarter 2021, as compared to $4.5 million during the same period of the prior year -- Cash and cash equivalents increased to $10.2 million as of June 30, 2021, as compared to $7.0 million as of December 31, 2020 -- The significant increase in net income is attributable in part to deferred tax benefits realized in the current quarter as a result of the Companys demonstrated ability to generate consistent positive results over the past 3 years since refocusing its operating platform and expectations that current operations will continue to generate future income

Highlights of First Half 2021:

-- Net income increased by 880% to $11.5 million during the first half 2021, as compared to $1.2 million during the same period of the prior year -- Total revenue increased by 32% to $13.2 million during the first half 2021, as compared to $9.9 million during the same period of the prior year -- Cash and cash equivalents increased to $10.2 million as of June 30, 2021, as compared to $3.2 million as of June 30, 2020

Comstocks results for the second quarter are driven by the strategy we adopted in early 2018 when we transformed our operating platform to focus on commercial real estate development, asset management and related services said Christopher Clemente, Chairman and CEO of Comstock Holding Companies Inc. Because of the consistency of our positive results over numerous quarters and the predictability provided by key asset management agreements, in Q2 Comstock met the criteria necessary to recover a portion of its previously discounted tax asset. I look forward to reporting on our continued progress on increasing assets under management and related revenue, and profitability which should result in the realization of additional portions of our tax asset in future periods.

AboutComstock Holding Companies, Inc.

Comstock Holding Companies, Inc. (Comstock or CHCI) is a developer, operator, and asset manager of mixed-use and transit-oriented development properties in the greater Washington, D.C. metropolitan area, where we focus primarily on select high-growth urban and transitioning sub-urban markets. We provide a broad range of real estate asset management services, including development and construction management services, leasing and property management services, debt and equity financing origination, and other real estate related services. Comstocks Anchor Portfolio includes two of the largest transit-oriented, mixed-use developments in the Washington, D.C. area, as detailed in our current Investor Presentation that is available on our website. Our customers primarily include private and institutional owners and investors in the real estate properties that we manage and various governmental bodies that have a vested interest in public-private partnerships responsible for the development of certain properties that we develop and manage. We also co-invest capital with our asset management clients and institutional real estate investors in stabilized office, retail, residential and mixed-use properties, retaining an economic interest while also providing management services to such institutional partnership ventures. Our acquisition of stabilized properties through institutional partnerships, coupled with the ongoing development and management of assets included in our Anchor Portfolio enable the Company to increase its assets under management and realize competitive advantages of scale while growing our revenue and enhancing our overall returns. The Company also provides additional fee-based real estate services, including capital markets, brokerage, and title insurance to properties in the Companys managed portfolio.

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, 703-230-1292Chief 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 2021 31, 2020ASSETS Current assets: Cash and cash equivalents $ 10,205 $ 7,032 Trade receivables 26 62 Trade receivables - related parties 3,038 3,568 Prepaid and other assets 265 215 Current assets held for sale 4,100 1,477 Total current assets 17,634 12,354 Deferred income taxes, net 11,310 ? Equity method investments at fair value 3,652 6,307 Fixed assets, net 188 170 Operating lease right-of-use assets 7,582 7,914 Long term assets held for sale ? 1,834 TOTAL ASSETS $ 40,366 $ 28,579 LIABILITIES AND STOCKHOLDERS? EQUITY Current liabilities: Accrued personnel costs $ 1,572 $ 2,333 Accounts payable and accrued liabilities 664 854 Short term operating lease liabilities 592 569 Short term notes payable 48 5 Current liabilities held for sale 2,147 742 Total current liabilities 5,023 4,503 Long term notes payable - due to affiliates 5,500 5,500 Long term operating lease liabilities, net of current 7,059 7,361 portionTOTAL LIABILITIES $ 17,582 $ 17,364 Commitments and contingencies (Note 9) STOCKHOLDERS? EQUITY Series C preferred stock $0.01 par value, 20,000,000shares authorized, 3,440,690 issued and outstanding and $ 6,765 $ 6,765 liquidation preference of $17,203 at June30, 2021 andDecember 31, 2020Class A common stock, $0.01 par value, 59,779,750shares authorized, 8,093,778 and 7,953,729 issued, and 81 79 8,008,208 and 7,868,159 outstanding at June30, 2021and December 31, 2020, respectivelyClass B common stock, $0.01 par value, 220,250 sharesauthorized, issued and outstanding at June30, 2021 and 2 2 December 31, 2020Additional paid-in capital 200,262 200,147 Treasury stock, at cost (85,570 shares Class A common (2,662 ) (2,662 )stock)Accumulated deficit (181,664 ) (193,116 )TOTAL STOCKHOLDERS' EQUITY $ 22,784 $ 11,215 TOTAL LIABILITIES AND STOCKHOLDERS? EQUITY $ 40,366 $ 28,579

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, 2021 2020 2021 2020 Revenues $ 6,324 $ 4,505 $ 13,164 $ 9,939 Operating expenses Direct costs 5,502 3,213 11,580 7,849 General and 322 390 631 707 administrativeSales and marketing 8 1 18 1 Operating income 492 901 935 1,382 Interest expense (58 ) (77 ) (116 ) (226 )Other income, net 29 28 18 25 Income from continuingoperations before income 463 852 837 1,181 taxIncome tax benefit 11,316 (13 ) 11,314 (14 )(expense)Loss on equity methodinvestments carried at (131 ) (41 ) (112 ) (88 )fair valueIncome from continuing 11,648 798 12,039 1,079 operationsIncome (loss) fromdiscontinued operations, (443 ) 382 (587 ) 89 net of taxesNet income $ 11,205 $ 1,180 $ 11,452 $ 1,168 Income (loss) per share Basic: Continuing operations $ 1.42 $ 0.10 $ 1.47 $ 0.13 Discontinued operations $ (0.05 ) $ 0.05 $ (0.07 ) $ 0.01 Income (loss) per share Diluted: Continuing operations $ 1.29 $ 0.10 $ 1.34 $ 0.13 Discontinued operations $ (0.05 ) $ 0.05 $ (0.07 ) $ 0.01 Basic weighted average 8,215 8,056 8,191 8,003 shares outstandingDiluted weighted average 9,061 8,348 9,014 8,294 shares outstanding