- Increased 2024 Guidance for Home Sales
Revenues and Deliveries -
- Second Quarter Net
Income Increased 63% YoY to $83.7
Million, or $2.61 Per Diluted
Share -
- Home Sales Revenues of $1.0 Billion Increased 24% YoY -
-
Deliveries of 2,617 Homes Increased 17% YoY -
- Net New
Home Contracts of 2,780 Increased 20% YoY -
- J. Scott
Dixon Appointed as Chief Financial Officer -
GREENWOOD VILLAGE, Colo., July 24,
2024 /PRNewswire/ -- Century Communities, Inc. (NYSE:
CCS), one of the nation's largest homebuilders, today announced
financial results for its second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Net income of $83.7 million, or
$2.61 per diluted share, a 63% YoY
Increase
- Pre-tax income of $110.6 million,
a 61% YoY Increase
- EBITDA of $129.1 million, a 61%
YoY Increase
- Total revenues of $1.0 billion, a
23% YoY Increase
- Community count of 266, a Company record and 14% YoY
Increase
- Deliveries of 2,617 homes, a 17% YoY Increase
- Net new home contracts of 2,780, a 20% YoY Increase
- Homebuilding gross margin of 22.5%
- Adjusted homebuilding gross margin of 24.0%
"We continued to see solid demand for affordable new homes in
the second quarter, with our net new contracts of 2,780 homes
increasing by 20% versus the prior year quarter," said Dale Francescon, Chairman and Co-Chief Executive
Officer. "Second quarter deliveries of 2,617 homes and home sales
revenues of $1.0 billion increased by
17% and 24%, respectively, on a year-over-year basis. We generated
an adjusted homebuilding gross margin of 24% in the quarter, an
increase of 300 basis points versus second quarter 2023 levels, and
adjusted net income of $85.2 million,
or $2.65 per diluted share, increased
by 66% on a year-over-year basis. Finally, I am pleased to announce
that Century's Board of Directors appointed Scott Dixon as Chief Financial Officer, and the
entire management team wants to congratulate Scott on his
well-deserved promotion."
Rob Francescon, Co-Chief
Executive Officer and President, said, "Our total lot inventory of
78,097 increased by 35% over the prior year with the higher lot
count driven by gains in our controlled lots, which accounted for
58% of our total lots at the end of the second quarter. Our
community count grew by 14% on a year-over-year basis to 266, a
record for the Company. Our balance sheet remains strong with
$2.5 billion in stockholders' equity
and $841 million in liquidity, and,
during the second quarter, we repurchased 464,980 shares of our
common stock for $37 million at an
average share price of $79.61. Given
the strong performance we have experienced through the first half
of the year, we have increased our full year 2024 guidance for home
deliveries to be in the range of 10,700 to 11,300 homes and our
home sales revenues to be in the range of $4.2 to $4.4
billion."
Second Quarter 2024 Results
Net income for the second quarter 2024 was $83.7 million, or $2.61 per diluted share. Adjusted net income,
which excludes purchase price accounting and inventory impairment,
was $85.2 million, or $2.65 per diluted share.
Total revenues were $1.0 billion,
with second quarter home sales revenues totaling $1.0 billion as well. Deliveries totaled 2,617
homes. The average sales price of home deliveries for the second
quarter 2024 was $388,800.
Net new home contracts in the second quarter 2024 were
2,780, and at the end of the second quarter 2024, the Company
had 1,753 homes in backlog, representing $754.6 million of backlog dollar value.
Adjusted homebuilding gross margin percentage, excluding
interest, inventory impairment and purchase accounting, was 24.0%
in the second quarter of 2024. Homebuilding gross margin percentage
in the second quarter 2024 was 22.5%. Selling, general, and
administrative expenses as a percent of home sales revenues was
12.4% in the quarter. Adjusted EBITDA and EBITDA for the second
quarter 2024 were $130.6 million and
$129.1 million, respectively.
Financial services revenues and pre-tax income were $21.7 million and $5.7
million, respectively, in the second quarter 2024.
Our book value per share increased to a record $78.68 as of June 30,
2024.
Balance Sheet and Liquidity
The Company ended the second quarter 2024 with a strong
financial position, including $2.5
billion of stockholders' equity and $840.5 million of total liquidity, including
$151.5 million of cash.
During the second quarter, the Company maintained its quarterly
cash dividend of $0.26 per share and
repurchased 464,980 shares of its common stock for $37.0 million at an average share price of
$79.61.
As of June 30, 2024, homebuilding
debt to capital was 31.1% compared to 29.4% at March 31, 2024 and net homebuilding debt to net
capital was 28.1% compared to 24.9% at March
31, 2024.
Stock Repurchase Program
The Company also announced that its Board of Directors approved
a new stock repurchase program for up to an additional 4.5 million
shares of Century common stock through open market, privately
negotiated or other transactions from time to time and in such
amounts as management deems appropriate.
Full Year 2024 Outlook
Scott Dixon, Chief Financial
Officer of the Company, commented, "Given the strength that we have
seen in our orders, deliveries and community count through the
first half of the year, we have increased our full year 2024
guidance for home deliveries to be in the range of 10,700 to 11,300
homes and our home sales revenues to be in the range of
$4.2 to $4.4
billion."
Scott Dixon Appointed as Chief Financial Officer
Century Communities also announced today that its Board of
Directors on July 22nd
appointed J. Scott Dixon as the
Company's Chief Financial Officer. Mr. Dixon had been serving as
the Company's Interim Chief Financial Officer since March of this
year. Mr. Dixon has been with Century for over 10 years, and, prior
to his role as Interim Chief Financial Officer, had been Century's
Assistant Chief Financial Officer since May
2022. Prior to serving as Assistant Chief Financial Officer,
Mr. Dixon served as Chief Accounting Officer of Century from
November 2016 to May 2022, and prior to that position, he served
as Century's Vice President of Accounting from November 2013 to November
2016. He was heavily involved in Century's initial public
offering in 2014 and has been responsible for overseeing its SEC
reporting, financial planning and analysis, and directly managing
the finance team. Prior to joining Century, Mr. Dixon worked in
Ernst & Young's audit practice, most recently as a Senior
Manager in the audit and assurance practice, specializing in real
estate. Mr. Dixon holds a Master of Science degree in Accounting
from the University of Virginia and a
Bachelor of Science degree in Finance from the University of Denver. Mr. Dixon is also a Certified
Public Accountant.
Webcast and Conference Call
The Company will host a webcast and conference call on
Wednesday, July 24, 2024, at
5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's
second quarter 2024 results, provide commentary, and conduct a
question-and-answer session. To participate in the call, please
dial 833-816-1103 (domestic) or 412-317-0685 (international). The
live webcast will be available at www.centurycommunities.com in the
Investors section. A replay of the conference call will be
available through July 31, 2024, by
dialing 877-344-7529 (domestic) or 412-317-0088 (international) and
entering the passcode 1119095. A replay of the webcast will be
available on the Company's website for at least one year.
About Century Communities
Century Communities, Inc. (NYSE: CCS) is one of the nation's
largest homebuilders, an industry leader in online home sales, and
the highest-ranked homebuilder on Newsweek's list of America's Most
Trustworthy Companies 2024, consecutively awarded for a second
year. Through its Century Communities and Century Complete brands,
Century's mission is to build attractive, high-quality homes at
affordable prices to provide its valued customers with A HOME FOR
EVERY DREAM®. Century is engaged in all aspects of homebuilding —
including the acquisition, entitlement and development of land,
along with the construction, innovative marketing and sale of
quality homes designed to appeal to a wide range of homebuyers. The
Company operates in 18 states and over 45 markets across the U.S.,
and also offers title, insurance and lending services in select
markets through its Parkway Title, IHL Home Insurance Agency, and
Inspire Home Loans subsidiaries. To learn more about Century
Communities, please visit www.centurycommunities.com.
Non-GAAP Financial Measures
In addition to the Company's operating results presented in
accordance with United States
generally accepted accounting principles (GAAP), this press release
includes the following non-GAAP financial measures: adjusted net
income, adjusted diluted earnings per common share, adjusted
homebuilding gross margin, EBITDA, adjusted EBITDA, and ratio of
net homebuilding debt to net capital. These non-GAAP financial
measures should not be used as a substitute for the Company's
operating results presented in accordance with GAAP, and an
analysis of any non-GAAP financial measure should be used in
conjunction with results presented in accordance with GAAP. Please
refer to the reconciliation of each of the above referenced
non-GAAP financial measures following the historical financial
information presented in this press release.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and, as such, may involve known and unknown risks,
uncertainties and assumptions. Forward-looking statements may be
identified by the use of words such as "anticipate," "believe,"
"expect," "intend," "estimate," "plan," "continue," "will," "may,"
"potential," "guidance" and "outlook" and other similar expressions
that predict or indicate future events or trends or that are not
statements of historical matters. Forward-looking statements in
this release include the Company's operating and financial guidance
for 2024. Forward-looking statements should not be read as a
guarantee of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which
such performance or results will be achieved. Forward-looking
statements are based on historical information available at the
time the statements are made and are based on management's
reasonable belief or expectations with respect to future events,
and are subject to risks and uncertainties, many of which are
beyond the Company's control, that could cause actual performance
or results to differ materially from the belief or expectations
expressed in or suggested by the forward-looking statements. The
following important factors could cause actual results to differ
materially from those expressed in the forward-looking statement:
adverse changes in general economic conditions, including increased
interest rates, inflation, and employment levels; the potential
impact of global supply chain disruptions, labor, land and raw
material or other resource shortages and delays, and municipal and
utility delays on the Company's business, industry and the broader
economy; the ability to identify and acquire desirable land;
availability and cost of financing; the effect of tax changes;
reliance on contractors and key personnel; availability and pricing
for land, labor and raw materials or other resources; the ability
to pay dividends in the future; and the other factors included in
the Company's most recent Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q. Forward-looking statements speak
only as of the date on which they are made and the Company
undertakes no obligation to update any forward-looking statement to
reflect future events, developments or otherwise, except as may be
required by applicable law.
Century Communities,
Inc.
Consolidated
Statements of Operations
(Unaudited)
(in thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Homebuilding
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales
revenues
|
|
$
|
1,017,414
|
|
$
|
818,360
|
|
$
|
1,939,816
|
|
$
|
1,553,960
|
Land sales and other
revenues
|
|
|
377
|
|
|
1,554
|
|
|
1,593
|
|
|
3,089
|
Total homebuilding
revenues
|
|
|
1,017,791
|
|
|
819,914
|
|
|
1,941,409
|
|
|
1,557,049
|
Financial services
revenues
|
|
|
21,659
|
|
|
24,277
|
|
|
46,585
|
|
|
40,132
|
Total
revenues
|
|
|
1,039,450
|
|
|
844,191
|
|
|
1,987,994
|
|
|
1,597,181
|
Homebuilding Cost of
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of home sales
revenues
|
|
|
(787,556)
|
|
|
(656,834)
|
|
|
(1,513,127)
|
|
|
(1,258,219)
|
Cost of land sales and
other revenues
|
|
|
—
|
|
|
(375)
|
|
|
(37)
|
|
|
(375)
|
Total homebuilding
cost of revenues
|
|
|
(787,556)
|
|
|
(657,209)
|
|
|
(1,513,164)
|
|
|
(1,258,594)
|
Financial services
costs
|
|
|
(15,996)
|
|
|
(11,770)
|
|
|
(30,873)
|
|
|
(22,551)
|
Selling, general, and
administrative
|
|
|
(125,973)
|
|
|
(105,120)
|
|
|
(240,082)
|
|
|
(203,433)
|
Inventory
impairment
|
|
|
(570)
|
|
|
—
|
|
|
(570)
|
|
|
—
|
Other income
(expense)
|
|
|
1,278
|
|
|
(1,344)
|
|
|
(8,353)
|
|
|
154
|
Income before income
tax expense
|
|
|
110,633
|
|
|
68,748
|
|
|
194,952
|
|
|
112,757
|
Income tax
expense
|
|
|
(26,909)
|
|
|
(17,303)
|
|
|
(46,897)
|
|
|
(28,001)
|
Net income
|
|
$
|
83,724
|
|
$
|
51,445
|
|
$
|
148,055
|
|
$
|
84,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.65
|
|
$
|
1.61
|
|
$
|
4.67
|
|
$
|
2.65
|
Diluted
|
|
$
|
2.61
|
|
$
|
1.60
|
|
$
|
4.60
|
|
$
|
2.63
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
31,648,130
|
|
|
32,025,186
|
|
|
31,728,544
|
|
|
31,970,106
|
Diluted
|
|
|
32,092,789
|
|
|
32,247,396
|
|
|
32,165,798
|
|
|
32,182,545
|
Century Communities,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(in thousands, except
share amounts)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Assets
|
|
(unaudited)
|
|
(audited)
|
Cash and cash
equivalents
|
|
$
|
106,682
|
|
$
|
226,150
|
Cash held in
escrow
|
|
|
44,823
|
|
|
101,845
|
Accounts
receivable
|
|
|
78,260
|
|
|
76,213
|
Inventories
|
|
|
3,295,336
|
|
|
3,016,641
|
Mortgage loans held for
sale
|
|
|
255,305
|
|
|
251,852
|
Prepaid expenses and
other assets
|
|
|
404,315
|
|
|
350,193
|
Property and equipment,
net
|
|
|
97,215
|
|
|
69,075
|
Deferred tax assets,
net
|
|
|
17,426
|
|
|
16,998
|
Goodwill
|
|
|
32,082
|
|
|
30,395
|
Total assets
|
|
$
|
4,331,444
|
|
$
|
4,139,362
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
158,778
|
|
$
|
147,265
|
Accrued expenses and
other liabilities
|
|
|
271,849
|
|
|
303,392
|
Notes
payable
|
|
|
1,075,344
|
|
|
1,062,471
|
Revolving line of
credit
|
|
|
111,000
|
|
|
—
|
Mortgage repurchase
facilities
|
|
|
248,816
|
|
|
239,298
|
Total
liabilities
|
|
|
1,865,787
|
|
|
1,752,426
|
Stockholders'
equity:
|
|
|
|
|
|
|
Preferred stock, $0.01
par value, 50,000,000 shares authorized, none
outstanding
|
|
|
—
|
|
|
—
|
Common stock, $0.01 par
value, 100,000,000 shares authorized, 31,336,340 and 31,774,615
shares issued
and outstanding at June 30, 2024 and December 31, 2023,
respectively
|
|
|
313
|
|
|
318
|
Additional paid-in
capital
|
|
|
540,573
|
|
|
592,989
|
Retained
earnings
|
|
|
1,924,771
|
|
|
1,793,629
|
Total stockholders'
equity
|
|
|
2,465,657
|
|
|
2,386,936
|
Total liabilities and
stockholders' equity
|
|
$
|
4,331,444
|
|
$
|
4,139,362
|
Century Communities,
Inc.
Homebuilding
Operational Data
(Unaudited)
|
|
Net New Home
Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
|
2023
|
|
|
%
Change
|
|
|
2024
|
|
|
2023
|
|
|
%
Change
|
West
|
|
376
|
|
|
237
|
|
|
58.6
|
%
|
|
|
816
|
|
|
580
|
|
|
40.7
|
%
|
Mountain
|
|
552
|
|
|
446
|
|
|
23.8
|
%
|
|
|
1,163
|
|
|
779
|
|
|
49.3
|
%
|
Texas
|
|
520
|
|
|
400
|
|
|
30.0
|
%
|
|
|
1,034
|
|
|
875
|
|
|
18.2
|
%
|
Southeast
|
|
386
|
|
|
351
|
|
|
10.0
|
%
|
|
|
836
|
|
|
593
|
|
|
41.0
|
%
|
Century
Complete
|
|
946
|
|
|
883
|
|
|
7.1
|
%
|
|
|
1,797
|
|
|
1,512
|
|
|
18.8
|
%
|
Total
|
|
2,780
|
|
|
2,317
|
|
|
20.0
|
%
|
|
|
5,646
|
|
|
4,339
|
|
|
30.1
|
%
|
Home
Deliveries
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average
Sales
Price
|
|
Homes
|
|
Average
Sales
Price
|
West
|
|
325
|
|
$
|
626.7
|
|
254
|
|
$
|
548.2
|
|
28.0
|
%
|
|
14.3
|
%
|
Mountain
|
|
486
|
|
$
|
532.7
|
|
455
|
|
$
|
503.7
|
|
6.8
|
%
|
|
5.8
|
%
|
Texas
|
|
485
|
|
$
|
301.1
|
|
450
|
|
$
|
281.2
|
|
7.8
|
%
|
|
7.1
|
%
|
Southeast
|
|
349
|
|
$
|
441.3
|
|
275
|
|
$
|
426.5
|
|
26.9
|
%
|
|
3.5
|
%
|
Century
Complete
|
|
972
|
|
$
|
262.2
|
|
801
|
|
$
|
257.3
|
|
21.3
|
%
|
|
1.9
|
%
|
Total / Weighted
Average
|
|
2,617
|
|
$
|
388.8
|
|
2,235
|
|
$
|
366.2
|
|
17.1
|
%
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average
Sales
Price
|
|
Homes
|
|
Average
Sales
Price
|
West
|
|
609
|
|
$
|
617.3
|
|
457
|
|
$
|
586.7
|
|
33.3
|
%
|
|
5.2
|
%
|
Mountain
|
|
981
|
|
$
|
523.0
|
|
910
|
|
$
|
521.7
|
|
7.8
|
%
|
|
0.2
|
%
|
Texas
|
|
909
|
|
$
|
304.9
|
|
777
|
|
$
|
278.0
|
|
17.0
|
%
|
|
9.7
|
%
|
Southeast
|
|
728
|
|
$
|
433.4
|
|
473
|
|
$
|
431.7
|
|
53.9
|
%
|
|
0.4
|
%
|
Century
Complete
|
|
1,748
|
|
$
|
262.1
|
|
1,530
|
|
$
|
255.5
|
|
14.2
|
%
|
|
2.6
|
%
|
Total / Weighted
Average
|
|
4,975
|
|
$
|
389.9
|
|
4,147
|
|
$
|
374.7
|
|
20.0
|
%
|
|
4.1
|
%
|
Century Communities,
Inc.
Homebuilding
Operational Data
(Unaudited)
|
|
Selling
Communities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
Increase
|
|
|
2024
|
|
2023
|
|
|
Amount
|
|
%
Change
|
West
|
|
26
|
|
23
|
|
|
3
|
|
13.0
|
%
|
Mountain
|
|
47
|
|
41
|
|
|
6
|
|
14.6
|
%
|
Texas
|
|
45
|
|
38
|
|
|
7
|
|
18.4
|
%
|
Southeast
|
|
34
|
|
29
|
|
|
5
|
|
17.2
|
%
|
Century
Complete
|
|
114
|
|
102
|
|
|
12
|
|
11.8
|
%
|
Total
|
|
266
|
|
233
|
|
|
33
|
|
14.2
|
%
|
Backlog
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
West
|
|
313
|
|
$
|
213,931
|
|
$
|
683.5
|
|
203
|
|
$
|
129,616
|
|
$
|
638.5
|
|
54.2
|
%
|
|
65.0
|
%
|
|
7.0
|
%
|
Mountain
|
|
345
|
|
|
198,484
|
|
$
|
575.3
|
|
310
|
|
|
149,369
|
|
$
|
481.8
|
|
11.3
|
%
|
|
32.9
|
%
|
|
19.4
|
%
|
Texas
|
|
293
|
|
|
87,826
|
|
$
|
299.7
|
|
253
|
|
|
78,360
|
|
$
|
309.7
|
|
15.8
|
%
|
|
12.1
|
%
|
|
(3.2)
|
%
|
Southeast
|
|
250
|
|
|
107,965
|
|
$
|
431.9
|
|
325
|
|
|
148,616
|
|
$
|
457.3
|
|
(23.1)
|
%
|
|
(27.4)
|
%
|
|
(5.6)
|
%
|
Century
Complete
|
|
552
|
|
|
146,417
|
|
$
|
265.2
|
|
911
|
|
|
244,118
|
|
$
|
268.0
|
|
(39.4)
|
%
|
|
(40.0)
|
%
|
|
(1.0)
|
%
|
Total / Weighted
Average
|
|
1,753
|
|
$
|
754,623
|
|
$
|
430.5
|
|
2,002
|
|
$
|
750,079
|
|
$
|
374.7
|
|
(12.4)
|
%
|
|
0.6
|
%
|
|
14.9
|
%
|
Lot
Inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
Controlled
|
|
Total
|
|
Owned
|
|
Controlled
|
|
Total
|
|
Owned
|
|
Controlled
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West
|
|
4,434
|
|
|
3,665
|
|
|
8,099
|
|
|
4,207
|
|
|
1,867
|
|
|
6,074
|
|
|
5.4
|
%
|
|
96.3
|
%
|
|
33.3
|
%
|
Mountain
|
|
8,651
|
|
|
4,987
|
|
|
13,638
|
|
|
9,818
|
|
|
3,400
|
|
|
13,218
|
|
|
(11.9)
|
%
|
|
46.7
|
%
|
|
3.2
|
%
|
Texas
|
|
9,777
|
|
|
9,823
|
|
|
19,600
|
|
|
7,627
|
|
|
6,811
|
|
|
14,438
|
|
|
28.2
|
%
|
|
44.2
|
%
|
|
35.8
|
%
|
Southeast
|
|
5,461
|
|
|
12,446
|
|
|
17,907
|
|
|
5,769
|
|
|
4,079
|
|
|
9,848
|
|
|
(5.3)
|
%
|
|
205.1
|
%
|
|
81.8
|
%
|
Century
Complete
|
|
4,454
|
|
|
14,399
|
|
|
18,853
|
|
|
3,550
|
|
|
10,647
|
|
|
14,197
|
|
|
25.5
|
%
|
|
35.2
|
%
|
|
32.8
|
%
|
Total
|
|
32,777
|
|
|
45,320
|
|
|
78,097
|
|
|
30,971
|
|
|
26,804
|
|
|
57,775
|
|
|
5.8
|
%
|
|
69.1
|
%
|
|
35.2
|
%
|
% of Total
|
|
42.0 %
|
|
|
58.0 %
|
|
|
100.0 %
|
|
|
53.6 %
|
|
|
46.4 %
|
|
|
100.0 %
|
|
|
|
|
|
|
|
|
|
|
Century Communities,
Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
Adjusted net income and adjusted diluted earnings per share
(which we refer to as "Adjusted EPS") are non-GAAP financial
measures that we believe are useful to management, investors and
other users of our financial information in evaluating our
operating results and understanding our operating trends without
the effect of certain non-recurring items. We believe excluding
certain non-recurring items provides more comparable assessment of
our financial results from period to period. We define adjusted net
income as consolidated net income before (i) income tax expense,
(ii) inventory impairment, if applicable (iii) restructuring costs,
if applicable, (iv) loss on debt extinguishment, if applicable, (v)
purchase price accounting for acquired work in process inventory,
if applicable, and (vi) impairment on other investments, if
applicable, less adjusted income tax expense, calculated using our
estimated annual effective tax rate after discrete items for the
applicable period. Adjusted EPS is calculated by dividing adjusted
net income by weighted average common shares – diluted.
Adjusted Net Income
and Adjusted Diluted Earnings Per Common Share
|
(in thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
83,724
|
|
$
|
51,445
|
|
$
|
148,055
|
|
$
|
84,756
|
Denominator
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
|
|
31,648,130
|
|
|
32,025,186
|
|
|
31,728,544
|
|
|
31,970,106
|
Dilutive effect of
stock-based compensation awards
|
|
|
444,659
|
|
|
222,210
|
|
|
437,254
|
|
|
212,439
|
Weighted average common
shares outstanding - diluted
|
|
|
32,092,789
|
|
|
32,247,396
|
|
|
32,165,798
|
|
|
32,182,545
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
2.65
|
|
$
|
1.61
|
|
$
|
4.67
|
|
$
|
2.65
|
Diluted
|
|
$
|
2.61
|
|
$
|
1.60
|
|
$
|
4.60
|
|
$
|
2.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
83,724
|
|
$
|
51,445
|
|
$
|
148,055
|
|
$
|
84,756
|
Income tax
expense
|
|
|
26,909
|
|
|
17,303
|
|
|
46,897
|
|
|
28,001
|
Income before income
tax expense
|
|
|
110,633
|
|
|
68,748
|
|
|
194,952
|
|
|
112,757
|
Inventory
impairment
|
|
|
570
|
|
|
—
|
|
|
570
|
|
|
—
|
Impairment on other
investment
|
|
|
—
|
|
|
—
|
|
|
7,722
|
|
|
—
|
Purchase price
accounting for acquired work in process inventory
|
|
|
973
|
|
|
—
|
|
|
2,553
|
|
|
—
|
Adjusted income before
income tax expense
|
|
|
112,176
|
|
|
68,748
|
|
|
205,797
|
|
|
112,757
|
Adjusted income tax
expense(1)
|
|
|
(26,985)
|
|
|
(17,303)
|
|
|
(49,506)
|
|
|
(28,001)
|
Adjusted net
income
|
|
$
|
85,191
|
|
$
|
51,445
|
|
$
|
156,291
|
|
$
|
84,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator -
Diluted
|
|
|
32,092,789
|
|
|
32,247,396
|
|
|
32,165,798
|
|
|
32,182,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
|
$
|
2.65
|
|
$
|
1.60
|
|
$
|
4.86
|
|
$
|
2.63
|
|
|
(1)
|
The tax rates used in
calculating adjusted net income for the three and six months ended
June 30, 2024 were 24.1%, respectively, which are reflective of the
Company's GAAP tax rate for the six months ended June 30, 2024.
The tax rates used in calculating adjusted net income for the
three and six months ended June 30, 2023 were 25.2% and 24.8%,
respectively, which are reflective of the Company's GAAP tax rates
for the applicable periods.
|
Century Communities,
Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
Adjusted homebuilding gross margin excluding inventory
impairment (if applicable), interest in cost of home sales
revenues, and purchase price accounting for acquired work in
process inventory (if applicable) are not measurements of financial
performance under GAAP; however, the Company's management believes
that this information is meaningful as it isolates the impact that
inventory impairment, indebtedness, and acquisitions have on
homebuilding gross margin and permits the Company's stockholders to
make better comparisons with the Company's competitors, who adjust
gross margins in a similar fashion. This non-GAAP
financial measure should not be used as a substitute for the
Company's operating results. An analysis of any non-GAAP
financial measure should be used in conjunction with results
presented in accordance with GAAP.
Adjusted
Homebuilding Gross Margin
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2024
|
|
%
|
|
2023
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales
revenues
|
|
$
|
1,017,414
|
|
100.0
|
%
|
|
$
|
818,360
|
|
100.0
|
%
|
Cost of home sales
revenues
|
|
|
(787,556)
|
|
(77.4)
|
%
|
|
|
(656,834)
|
|
(80.3)
|
%
|
Inventory
impairment
|
|
|
(570)
|
|
(0.1)
|
%
|
|
|
—
|
|
—
|
%
|
Homebuilding gross
margin
|
|
|
229,288
|
|
22.5
|
%
|
|
|
161,526
|
|
19.7
|
%
|
Add: Inventory
impairment
|
|
|
570
|
|
0.1
|
%
|
|
|
—
|
|
—
|
%
|
Add: Interest in cost
of home sales revenues
|
|
|
13,592
|
|
1.3
|
%
|
|
|
10,270
|
|
1.3
|
%
|
Adjusted homebuilding
gross margin excluding interest and inventory impairment
|
|
$
|
243,450
|
|
23.9
|
%
|
|
$
|
171,796
|
|
21.0
|
%
|
Add: Purchase price
accounting for acquired work in process inventory
|
|
|
973
|
|
0.1
|
%
|
|
|
—
|
|
—
|
%
|
Adjusted homebuilding
gross margin excluding interest, inventory impairment
and purchase price accounting for acquired work in process
inventory
|
|
$
|
244,423
|
|
24.0
|
%
|
|
$
|
171,796
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
%
|
|
2023
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales
revenues
|
|
$
|
1,939,816
|
|
100.0
|
%
|
|
$
|
1,553,960
|
|
100.0
|
%
|
Cost of home sales
revenues
|
|
|
(1,513,127)
|
|
(78.0)
|
%
|
|
|
(1,258,219)
|
|
(81.0)
|
%
|
Inventory
impairment
|
|
|
(570)
|
|
(0.0)
|
%
|
|
|
—
|
|
—
|
%
|
Homebuilding gross
margin
|
|
|
426,119
|
|
22.0
|
%
|
|
|
295,741
|
|
19.0
|
%
|
Add: Inventory
impairment
|
|
|
570
|
|
0.0
|
%
|
|
|
—
|
|
—
|
%
|
Add: Interest in cost
of home sales revenues
|
|
|
25,625
|
|
1.3
|
%
|
|
|
20,077
|
|
1.3
|
%
|
Adjusted homebuilding
gross margin excluding interest and inventory impairment
|
|
$
|
452,314
|
|
23.3
|
%
|
|
$
|
315,818
|
|
20.3
|
%
|
Add: Purchase price
accounting for acquired work in process inventory
|
|
|
2,553
|
|
0.1
|
%
|
|
|
—
|
|
—
|
%
|
Adjusted homebuilding
gross margin excluding interest, inventory impairment
and purchase price accounting for acquired work in process
inventory
|
|
$
|
454,867
|
|
23.4
|
%
|
|
$
|
315,818
|
|
20.3
|
%
|
Century Communities,
Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
EBITDA and Adjusted EBITDA
The following table presents EBITDA and Adjusted EBITDA for the
three months ended March 31, 2024 and
2023. EBITDA and adjusted EBITDA are non-GAAP financial measures we
use as a supplemental measure in evaluating operating performance.
We define EBITDA as net income before (i) income tax expense, (ii)
interest in cost of home sales revenues, (iii) other interest
expense (income), and (iv) depreciation and amortization expense.
We define adjusted EBITDA as EBITDA before loss on debt
extinguishment (if applicable), inventory impairment (if
applicable), purchase price accounting for acquired work in process
inventory (if applicable), and impairment on other investments (if
applicable). We believe EBITDA and adjusted EBITDA provide an
indicator of general economic performance that is not affected by
fluctuations in interest rates or effective tax rates, levels of
depreciation or amortization, and items considered to be
non-recurring. Accordingly, our management believes that these
measurements are useful for comparing general operating performance
from period to period. Neither EBITDA or adjusted EBITDA should be
considered in addition to, and not as a substitute for,
consolidated net income in accordance with GAAP as a measure of
performance. Our presentation of Adjusted EBITDA should not be
construed as an indication that our future results will be
unaffected by unusual or non-recurring items. Each of our EBITDA
and adjusted EBITDA is limited as an analytical tool, and should
not be considered in isolation or as a substitute for analysis of
our results as reported under GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
2024
|
|
2023
|
|
%
Change
|
Net income
|
|
$
|
83,724
|
|
$
|
51,445
|
|
|
62.7
|
%
|
|
$
|
148,055
|
|
$
|
84,756
|
|
|
74.7
|
%
|
Income tax
expense
|
|
|
26,909
|
|
|
17,303
|
|
|
55.5
|
%
|
|
|
46,897
|
|
|
28,001
|
|
|
67.5
|
%
|
Interest in cost of
home sales revenues
|
|
|
13,592
|
|
|
10,270
|
|
|
32.3
|
%
|
|
|
25,625
|
|
|
20,077
|
|
|
27.6
|
%
|
Interest
income
|
|
|
(810)
|
|
|
(2,578)
|
|
|
(68.6)
|
%
|
|
|
(2,324)
|
|
|
(4,942)
|
|
|
(53.0)
|
%
|
Depreciation and
amortization expense
|
|
|
5,689
|
|
|
3,621
|
|
|
57.1
|
%
|
|
|
11,165
|
|
|
6,913
|
|
|
61.5
|
%
|
EBITDA
|
|
|
129,104
|
|
|
80,061
|
|
|
61.3
|
%
|
|
|
229,418
|
|
|
134,805
|
|
|
70.2
|
%
|
Inventory
impairment
|
|
|
570
|
|
|
—
|
|
|
NM
|
|
|
|
570
|
|
|
—
|
|
|
NM
|
|
Impairment on other
investment
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
|
|
7,722
|
|
|
—
|
|
|
NM
|
|
Purchase price
accounting for acquired work in process inventory
|
|
|
973
|
|
|
—
|
|
|
NM
|
|
|
|
2,553
|
|
|
—
|
|
|
NM
|
|
Adjusted
EBITDA
|
|
$
|
130,647
|
|
$
|
80,061
|
|
|
63.2
|
%
|
|
$
|
240,263
|
|
$
|
134,805
|
|
|
78.2
|
%
|
Century Communities,
Inc.
Reconciliation of Non-GAAP Financial
Measures
(Unaudited)
Ratio of Net Homebuilding Debt to Net Capital
The following table presents the Company's ratio of net
homebuilding debt to net capital, which is a non-GAAP financial
measure. The Company calculates this by dividing net
homebuilding debt (homebuilding debt less cash and cash
equivalents, and cash held in escrow) by net capital (net
homebuilding debt plus total stockholders' equity). Homebuilding
debt is our total debt minus outstanding borrowings under our
construction loan agreement and mortgage repurchase facilities. The
most directly comparable GAAP measure is the ratio of debt to
capital. The Company believes the ratio of net homebuilding debt to
net capital is a relevant and useful financial measure to investors
in understanding the leverage employed in its operations and as an
indicator of the Company's ability to obtain external
financing.
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Notes
payable
|
|
$
|
1,075,344
|
|
$
|
1,062,471
|
Revolving line of
credit
|
|
|
111,000
|
|
|
—
|
Construction loan
agreements
|
|
|
(72,860)
|
|
|
(44,895)
|
Total homebuilding
debt
|
|
|
1,113,484
|
|
|
1,017,576
|
Total stockholders'
equity
|
|
|
2,465,657
|
|
|
2,386,936
|
Total
capital
|
|
$
|
3,579,141
|
|
$
|
3,404,512
|
Homebuilding debt to
capital
|
|
|
31.1 %
|
|
|
29.9 %
|
|
|
|
|
|
|
|
Total homebuilding
debt
|
|
$
|
1,113,484
|
|
$
|
1,017,576
|
Cash and cash
equivalents
|
|
|
(106,682)
|
|
|
(226,150)
|
Cash held in
escrow
|
|
|
(44,823)
|
|
|
(101,845)
|
Net homebuilding
debt
|
|
|
961,979
|
|
|
689,581
|
Total stockholders'
equity
|
|
|
2,465,657
|
|
|
2,386,936
|
Net capital
|
|
$
|
3,427,636
|
|
$
|
3,076,517
|
|
|
|
|
|
|
|
Net homebuilding debt
to net capital
|
|
|
28.1 %
|
|
|
22.4 %
|
Contact Information:
Tyler Langton, Senior Vice President of Investor
Relations
303-268-8345
Investorrelations@CenturyCommunities.com
Category:
Earnings
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SOURCE Century Communities, Inc.