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CORRECTING And REPLACING -- Comstock Holding Companies, Inc. Reports Results For Three And Twelve Months Ended December 31, 2012

This release contains "forward-looking" statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements including incurring substantial indebtedness with respect to projects, the diversion of management's attention and other negative consequences. Additional information concerning these and other important risks and uncertainties can be found under the heading "Risk Factors" in the Company's most recent Form 10-K, as filed with the Securities 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.

COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
     
  December 31, 2012 December 31, 2011
ASSETS    
Cash and cash equivalents  $ 3,539  $ 5,639
Restricted cash 3,203 3,082
Trade receivables 1,611 2,228
Real estate held for development and sale 27,781 21,212
Operating real estate, net 12,095
Property, plant and equipment, net 222 105
Other assets 2,343 2,018
     
TOTAL ASSETS  $ 38,699  $ 46,379
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
LIABILITIES    
     
Accounts payable and accrued liabilities  $ 4,691  $ 3,987
Notes payable - secured by real estate held for development and sale, net of discount 19,492 10,541
Notes payable - secured by operating real estate 9,957
Notes payable - due to affiliates, unsecured 5,041 5,008
Notes payable - unsecured 3,096 4,309
Income taxes payable 33
     
TOTAL LIABILITIES 32,320 33,835
     
Commitments and contingencies (Note 15) —  — 
SHAREHOLDERS' EQUITY    
Class A common stock, $0.01 par value, 77,266,500 shares authorized, 17,627,826 and 17,944,503 issued and outstanding, respectively 176 179
Class B common stock, $0.01 par value, 2,733,500 shares authorized, 2,733,500 issued and outstanding 27 27
Additional paid-in capital 170,070 168,620
Treasury stock, at cost (391,400 shares Class A common stock) (2,480) (2,439)
Accumulated deficit (162,349) (156,684)
     
TOTAL COMSTOCK HOLDING COMPANIES, INC. EQUITY 5,444 9,703
Non-controlling interests 935 2,841
     
TOTAL EQUITY 6,379 12,544
     
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY  $ 38,699  $ 46,379
 
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
     
  Twelve Months Ended December 31,
  2012 2011
Revenues    
Revenue - homebuilding  $ 11,633  $ 14,062
Revenue - other 2,669 7,871
     
Total revenue 14,302 21,933
Expenses    
Cost of sales - homebuilding 9,692 12,160
Cost of sales - other 3,484 7,434
Impairments and write-offs 2,358 — 
Selling, general and administrative 8,658 7,399
Interest, real estate taxes and indirect costs related to inactive projects 2,135 2,739
     
Operating loss (12,025) (7,799)
Gain on troubled debt restructuring (219)
Gain on legal settlement, net (9,434)
Other income, net (18) (304)
     
(Loss) income before income tax benefit (expense) (12,007) 2,158
Income taxes benefit (expense) 2,484 (33)
     
Net (loss) income from continuing operations (9,523) 2,125
Discontinued operations:    
Loss from discontinued operations (98) (527)
Gain on sale of the real estate from discontinued operations 6,466
Income tax expense from discontinued operations (2,484)
     
Net income (loss) from discontinued operations 3,884 (527)
Net (loss) income (5,639) 1,598
Less: Net loss from continuing operations attributable to non-controlling interests (77)
Less: Net income from discontinued operations attributable to non-controlling interests 103 491
     
Net (loss) income attributable to Comstock Holding Companies, Inc.  $ (5,665)  $ 1,107
     
Basic (loss) income per share:    
Continuing operations  $ (0.47)  $ 0.10
Discontinued operations 0.19 (0.05)
Net (loss) income per share  $ (0.28)  $ 0.05
Diluted (loss) income per share:    
Continuing operations  $ (0.47)  $ 0.10
Discontinued operations 0.19 (0.05)
Net (loss) income per share  $ (0.28)  $ 0.05
Basic weighted average shares outstanding 19,970 20,287
Diluted weighted average shares outstanding 19,970 20,720
Net (loss) income attributable to Comstock Holding Companies, Inc.:    
(Loss) income from continuing operations  $ (9,446)  $ 2,125
Income (loss) from discontinuing operations 3,781 (1,018)
Net (loss) income  $ (5,665)  $ 1,107
 
COMSTOCK HOLDING COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except per share data)
     
  Twelve Months Ended December 31,
  2012 2011
Cash flows from operating activities:    
Net (loss) income  $ (5,639)  $ 1,598
Adjustment to reconcile net (loss) income to net cash (used in) provided by operating activities    
Amortization of loan discount and deferred financing fees 1,283 1,444
Depreciation expense 122 196
Provision for bad debt 60 1
Impairments and write-offs 2,358 — 
Amortization of stock compensation 1,447 932
Loss (gain) on extinguishment of notes payable 73 (219)
Gain on trade payable settlements (161)
Gain on sale of operating real estate, net (6,466) — 
Loss on disposal of property, plant and equipment 1 — 
Changes in operating assets and liabilities:    
Restricted cash (121) 19
Trade receivables 569 (1,837)
Real estate held for development and sale (8,984) 10,292
Other assets (433) (678)
Accrued interest (495) 752
Accounts payable and accrued liabilities 217 364
Income taxes payable (33) 33
     
Net cash (used in) provided by operating activities (16,041) 12,736
     
Cash flows from investing activities:    
Investment in Cascades Apartments – operating real estate, net —  (9,764)
Purchase of property, plant and equipment (158) (78)
Proceeds from sale of Cascades Apartments – operating real estate, net 19,075
     
Net cash provided by (used in) investing activities 18,917 (9,842)
     
Cash flows from financing activities:    
Proceeds from notes payable 24,986 38,908
Payments on notes payable (27,512) (38,436)
Loan financing costs (518) (1,548)
Proceeds from SunBridge warrant issuance 996
Distribution to non-controlling interest holders (2,944) — 
Contribution from non-controlling interest holders 1,012 2,350
     
Net cash (used in) provided by financing activities (4,976) 2,270
     
Net (decrease) increase in cash and cash equivalents (2,100) 5,164
Cash and cash equivalents, beginning of period 5,639 475
     
Cash and cash equivalents, end of period  $ 3,539  $ 5,639
     
Supplemental disclosures:    
Interest paid, net of interest capitalized  $ 1,226  $ 522
Reduction in proceeds from sale of Cascades Apartments and increase in other assets related to amount placed in escrow upon settlement of Cascades Apartments sale  $ 275 $ — 
Increase in class A common stock par value in connection with issuance of stock compensation $ —   $ 8
Increase in additional paid in capital in connection with SunBridge warrant $ —   $ 996
Increase in treasury stock and accrued liabilities for net-settlement of stock compensation  $ 41 $ —  
CONTACT: Joe Squeri
         Chief Financial Officer
         703.230.1229

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