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Comstock Homebuilding Reports Profitable Q4, Second Consecutive Profitable Quarter
After a difficult early 2009, Comstock Homebuilding Companies announced net income for its fourth quarter ended December 31, 2009 of $1.4 million, compared to a net loss of $4.8 million for the fourth quarter of 2008.
After a difficult early 2009, Comstock Homebuilding Cos. announced net income for its fourth quarter ended December 31, 2009 of $1.4 million, compared to a net loss of $4.8 million for the fourth quarter of 2008. Total revenue for the fourth quarter of 2009 was $4 million compared to total revenue of $5.2 million for the comparable 2008 quarter.
The firm has come a ways from March, 2009 when it announced that its accounting firm expressed substantial doubt that Comstock would continue operating throughout 2009 as a going concern. It also warned that if efforts to free up cash and restructure debts with its creditors were unsuccessful, "the Company may be forced to seek bankruptcy protection while it reorganizes."
In an effort to stabilize Comstock, management formulated its Strategic Realignment Plan and spent much of 2009 negotiating with lenders to eliminate and restructure debt in order to reposition the firm with an improved balance sheet. Comstock has reduced debt from $340 million in mid-2006 to $67.6 million as of December 31, 2009.
During much of 2009, management focused on efforts to stabilize the company, including the termination of operations in the Atlanta market, the suspension of operations in the Raleigh, N.C. market, and the identification of key real-estate assets in the company's core market of Washington, D.C., to be retained by Comstock.
For the year ended December 31, 2009, total revenue was $25.1 million, compared to total revenue of $46.7 million for the year ended December 31, 2008. Net loss for the year ended December 31, 2009 was $26.8 million, primarily as a result of losses reported in the first half of 2009, as compared to a net loss of $17.1 million for the year ended December 31, 2008.