- Deliveries of 2,358 Homes Increased 23% YoY
-
- Home Sales Revenues of $922.4
Million Increased 25% YoY -
- First Quarter
Net Income Increased 93% YoY to $64.3
Million, or $2.00 Per Diluted
Share -
- First Quarter Adjusted Net Income Increased
114% YoY to $71.4 Million, or
$2.22 Per Diluted Share -
-
Total Lots Increased to 75,089, with Controlled Lots at 58% of
Total Lots -
- Community Count Increased to a Record 253
-
GREENWOOD VILLAGE, Colo., April 24,
2024 /PRNewswire/ -- Century Communities, Inc. (NYSE:
CCS), one of the nation's largest homebuilders, today announced
financial results for its first quarter ended March 31, 2024.
First Quarter 2024 Highlights
- Net income of $64.3 million, or
$2.00 per diluted share
- Adjusted net income of $71.4
million, or $2.22 per diluted
share
- Pre-tax income of $84.3
million
- Adjusted EBITDA of $109.6
million
- Total revenues of $948.5 million
- Deliveries of 2,358 homes
- Net new home contracts of 2,866
- Homebuilding gross margin of 21.3%
- Adjusted homebuilding gross margin of 22.8%
- Completed the acquisition of Landmark Homes of Tennessee on January
22, 2024
"Our first quarter deliveries of 2,358 homes increased 23%
versus the prior year quarter as we continued to see solid demand
for affordable new homes, with our adjusted net income and net
income increasing by 114% and 93%, respectively," said Dale Francescon, Chairman and Co-Chief Executive
Officer. "Our first quarter net new contracts of 2,866 homes
increased by 42% on a year-over-year basis and 22%
quarter-over-quarter, with sequential increases in each month of
the quarter. We increased our quarterly cash dividend by 13% to
$0.26 per share and repurchased
186,887 shares of our common stock."
Rob Francescon, Co-Chief
Executive Officer and President, said, "Our total lot inventory of
75,089 increased by 46% 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 first quarter. Our
community count grew by 8% on a year-over-year basis to 253, a
record for the Company. Even with the solid demand for new homes,
we've had continued success in managing our costs and maintained
our cycle times in the four-to-five-month timeframe. Our balance
sheet remains strong with $2.4
billion in stockholders' equity, $1.0
billion in liquidity and net homebuilding debt to net
capital of 24.9%."
First Quarter 2024 Results
Net income for the first quarter 2024 was $64.3 million, or $2.00 per diluted share. Adjusted net income,
which excludes purchase price accounting and an impairment on other
investment, was $71.4 million, or
$2.22 per diluted share.
Total revenues were $948.5
million, with first quarter home sales revenues totaling
$922.4 million. Deliveries totaled
2,358 homes. The average sales price of home deliveries for the
first quarter 2024 was $391,200.
Net new home contracts in the first quarter 2024 were
2,866, and at the end of the first quarter 2024, the Company
had 1,590 homes in backlog, representing $667.2 million of backlog dollar value.
Adjusted homebuilding gross margin percentage, excluding
interest and purchase accounting, was 22.8% in the first quarter of
2024. Homebuilding gross margin percentage in the first quarter
2024 was 21.3%. Selling, general, and administrative expenses
as a percent of home sales revenues was 12.4% in the quarter.
Adjusted EBITDA and EBITDA for the first quarter 2024 were
$109.6 million and $100.3 million, respectively.
Financial services revenues and pre-tax income were $24.9 million and $10.0
million, respectively, in the first quarter 2024.
Our book value per share increased to a record $76.10 as of March 31,
2024.
Balance Sheet and Liquidity
The Company ended the first quarter 2024 with a strong financial
position, including $2.4 billion of
stockholders' equity and $1.0 billion
of total liquidity, including $207.6
million of cash.
During the first quarter, the Company increased its quarterly
cash dividend by 13% to $0.26 per
share and repurchased 186,887 shares of its common stock for
$16.1 million.
As of March 31, 2024, homebuilding
debt to capital decreased to 29.4% from 29.9% at December 31, 2023 and net homebuilding debt to
net capital increased to 24.9% from 22.4% at December 31, 2023.
Full Year 2024 Outlook
Scott Dixon, Interim Chief
Financial Officer of the Company, commented, "We are encouraged
with our start to the year as we continue to see solid demand
across our national footprint and are successfully managing our
costs and cycle times. We will grow both our community count and
deliveries on a year-over-year basis this year, and we continue to
expect our full year 2024 deliveries to be in the range of 10,000
to 11,000 homes and our home sales revenues to be in the range of
$3.8 billion to $4.2 billion."
Webcast and Conference Call
The Company will host a webcast and conference call on
Wednesday, April 24, 2024, at
5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's
first 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 May 1, 2024, by
dialing 877-344-7529 (domestic) or 412-317-0088 (international) and
entering the passcode 5208502. 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. 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 and its expectations for growth in its community count and
deliveries during 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
March 31,
|
|
|
2024
|
|
2023
|
Revenues
|
|
|
|
|
|
|
Homebuilding
Revenues
|
|
|
|
|
|
|
Home sales
revenues
|
|
$
|
922,402
|
|
$
|
735,600
|
Land sales and other
revenues
|
|
|
1,216
|
|
|
1,535
|
Total homebuilding
revenues
|
|
|
923,618
|
|
|
737,135
|
Financial services
revenues
|
|
|
24,925
|
|
|
15,855
|
Total
revenues
|
|
|
948,543
|
|
|
752,990
|
Homebuilding Cost of
Revenues
|
|
|
|
|
|
|
Cost of home sales
revenues
|
|
|
(725,570)
|
|
|
(601,385)
|
Cost of land sales and
other revenues
|
|
|
(37)
|
|
|
—
|
Total homebuilding
cost of revenues
|
|
|
(725,607)
|
|
|
(601,385)
|
Financial services
costs
|
|
|
(14,877)
|
|
|
(10,781)
|
Selling, general, and
administrative
|
|
|
(114,109)
|
|
|
(98,313)
|
Other income
(expense)
|
|
|
(9,630)
|
|
|
1,498
|
Income before income
tax expense
|
|
|
84,320
|
|
|
44,009
|
Income tax
expense
|
|
|
(19,988)
|
|
|
(10,698)
|
Net income
|
|
$
|
64,332
|
|
$
|
33,311
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
2.02
|
|
$
|
1.04
|
Diluted
|
|
$
|
2.00
|
|
$
|
1.04
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
|
31,808,959
|
|
|
31,914,414
|
Diluted
|
|
|
32,238,808
|
|
|
32,117,082
|
Century Communities,
Inc.
Consolidated Balance
Sheets
(Unaudited)
(in thousands, except
share amounts)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Assets
|
|
(unaudited)
|
|
(audited)
|
Cash and cash
equivalents
|
|
$
|
122,840
|
|
$
|
226,150
|
Cash held in
escrow
|
|
|
84,776
|
|
|
101,845
|
Accounts
receivable
|
|
|
65,995
|
|
|
76,213
|
Inventories
|
|
|
3,107,133
|
|
|
3,016,641
|
Mortgage loans held for
sale
|
|
|
217,702
|
|
|
251,852
|
Prepaid expenses and
other assets
|
|
|
388,801
|
|
|
350,193
|
Property and equipment,
net
|
|
|
74,647
|
|
|
69,075
|
Deferred tax assets,
net
|
|
|
17,601
|
|
|
16,998
|
Goodwill
|
|
|
32,082
|
|
|
30,395
|
Total assets
|
|
$
|
4,111,577
|
|
$
|
4,139,362
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
135,784
|
|
$
|
147,265
|
Accrued expenses and
other liabilities
|
|
|
274,308
|
|
|
303,392
|
Notes
payable
|
|
|
1,069,762
|
|
|
1,062,471
|
Revolving line of
credit
|
|
|
—
|
|
|
—
|
Mortgage repurchase
facilities
|
|
|
212,447
|
|
|
239,298
|
Total
liabilities
|
|
|
1,692,301
|
|
|
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, 31,790,585 and 31,774,615
shares issued
and outstanding at March 31, 2024 and December 31, 2023,
respectively
|
|
|
318
|
|
|
318
|
Additional paid-in
capital
|
|
|
569,581
|
|
|
592,989
|
Retained
earnings
|
|
|
1,849,377
|
|
|
1,793,629
|
Total stockholders'
equity
|
|
|
2,419,276
|
|
|
2,386,936
|
Total liabilities and
stockholders' equity
|
|
$
|
4,111,577
|
|
$
|
4,139,362
|
Century Communities,
Inc.
Homebuilding
Operational Data
(Unaudited)
|
|
Net New Home
Contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
|
2023
|
|
|
%
Change
|
West
|
|
440
|
|
|
343
|
|
|
28.3
|
%
|
Mountain
|
|
611
|
|
|
333
|
|
|
83.5
|
%
|
Texas
|
|
514
|
|
|
475
|
|
|
8.2
|
%
|
Southeast
|
|
450
|
|
|
242
|
|
|
86.0
|
%
|
Century
Complete
|
|
851
|
|
|
629
|
|
|
35.3
|
%
|
Total
|
|
2,866
|
|
|
2,022
|
|
|
41.7
|
%
|
Home
Deliveries
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average Sales
Price
|
West
|
|
284
|
|
$
|
606.5
|
|
203
|
|
$
|
634.9
|
|
39.9
|
%
|
|
(4.5)
|
%
|
Mountain
|
|
495
|
|
$
|
513.4
|
|
455
|
|
$
|
539.8
|
|
8.8
|
%
|
|
(4.9)
|
%
|
Texas
|
|
424
|
|
$
|
309.4
|
|
327
|
|
$
|
273.5
|
|
29.7
|
%
|
|
13.1
|
%
|
Southeast
|
|
379
|
|
$
|
426.1
|
|
198
|
|
$
|
439.0
|
|
91.4
|
%
|
|
(2.9)
|
%
|
Century
Complete
|
|
776
|
|
$
|
262.0
|
|
729
|
|
$
|
253.4
|
|
6.4
|
%
|
|
3.4
|
%
|
Total / Weighted
Average
|
|
2,358
|
|
$
|
391.2
|
|
1,912
|
|
$
|
384.7
|
|
23.3
|
%
|
|
1.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Century Communities,
Inc.
Homebuilding
Operational Data
(Unaudited)
|
|
Selling
Communities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
Increase/(Decrease)
|
|
|
2024
|
|
2023
|
|
|
Amount
|
|
%
Change
|
West
|
|
28
|
|
26
|
|
|
2
|
|
7.7
|
%
|
Mountain
|
|
46
|
|
40
|
|
|
6
|
|
15.0
|
%
|
Texas
|
|
41
|
|
35
|
|
|
6
|
|
17.1
|
%
|
Southeast
|
|
30
|
|
28
|
|
|
2
|
|
7.1
|
%
|
Century
Complete
|
|
108
|
|
105
|
|
|
3
|
|
2.9
|
%
|
Total
|
|
253
|
|
234
|
|
|
19
|
|
8.1
|
%
|
Backlog
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
Homes
|
|
Dollar
Value
|
|
Average
Sales Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Sales Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Sales Price
|
West
|
|
262
|
|
$
|
176,732
|
|
$
|
674.5
|
|
220
|
|
$
|
133,249
|
|
$
|
605.7
|
|
19.1
|
%
|
|
32.6
|
%
|
|
11.4
|
%
|
Mountain
|
|
279
|
|
|
161,477
|
|
$
|
578.8
|
|
319
|
|
|
152,521
|
|
$
|
478.1
|
|
(12.5)
|
%
|
|
5.9
|
%
|
|
21.1
|
%
|
Texas
|
|
258
|
|
|
78,396
|
|
$
|
303.9
|
|
303
|
|
|
95,464
|
|
$
|
315.1
|
|
(14.9)
|
%
|
|
(17.9)
|
%
|
|
(3.6)
|
%
|
Southeast
|
|
214
|
|
|
99,448
|
|
$
|
464.7
|
|
249
|
|
|
110,864
|
|
$
|
445.2
|
|
(14.1)
|
%
|
|
(10.3)
|
%
|
|
4.4
|
%
|
Century
Complete
|
|
577
|
|
|
151,154
|
|
$
|
262.0
|
|
829
|
|
|
221,514
|
|
$
|
267.2
|
|
(30.4)
|
%
|
|
(31.8)
|
%
|
|
(1.9)
|
%
|
Total / Weighted
Average
|
|
1,590
|
|
$
|
667,207
|
|
$
|
419.6
|
|
1,920
|
|
$
|
713,612
|
|
$
|
371.7
|
|
(17.2)
|
%
|
|
(6.5)
|
%
|
|
12.9
|
%
|
Lot
Inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned
|
|
Controlled
|
|
Total
|
|
Owned
|
|
Controlled
|
|
Total
|
|
Owned
|
|
Controlled
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
West
|
|
4,397
|
|
|
3,230
|
|
|
7,627
|
|
|
4,279
|
|
|
763
|
|
|
5,042
|
|
|
2.8
|
%
|
|
323.3
|
%
|
|
51.3
|
%
|
Mountain
|
|
8,475
|
|
|
5,602
|
|
|
14,077
|
|
|
10,314
|
|
|
2,325
|
|
|
12,639
|
|
|
(17.8)
|
%
|
|
140.9
|
%
|
|
11.4
|
%
|
Texas
|
|
9,422
|
|
|
11,183
|
|
|
20,605
|
|
|
7,578
|
|
|
3,217
|
|
|
10,795
|
|
|
24.3
|
%
|
|
247.6
|
%
|
|
90.9
|
%
|
Southeast
|
|
5,461
|
|
|
10,370
|
|
|
15,831
|
|
|
5,610
|
|
|
3,658
|
|
|
9,268
|
|
|
(2.7)
|
%
|
|
183.5
|
%
|
|
70.8
|
%
|
Century
Complete
|
|
3,955
|
|
|
12,994
|
|
|
16,949
|
|
|
3,585
|
|
|
10,285
|
|
|
13,870
|
|
|
10.3
|
%
|
|
26.3
|
%
|
|
22.2
|
%
|
Total
|
|
31,710
|
|
|
43,379
|
|
|
75,089
|
|
|
31,366
|
|
|
20,248
|
|
|
51,614
|
|
|
1.1
|
%
|
|
114.2
|
%
|
|
45.5
|
%
|
% of Total
|
|
42.2 %
|
|
|
57.8 %
|
|
|
100.0 %
|
|
|
60.8 %
|
|
|
39.2 %
|
|
|
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
March 31,
|
|
|
2024
|
|
2023
|
Numerator
|
|
|
|
|
|
|
Net income
|
|
$
|
64,332
|
|
$
|
33,311
|
Denominator
|
|
|
|
|
|
|
Weighted average common
shares outstanding - basic
|
|
|
31,808,959
|
|
|
31,914,414
|
Dilutive effect of
stock-based compensation awards
|
|
|
429,849
|
|
|
202,668
|
Weighted average common
shares outstanding - diluted
|
|
|
32,238,808
|
|
|
32,117,082
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
2.02
|
|
$
|
1.04
|
Diluted
|
|
$
|
2.00
|
|
$
|
1.04
|
|
|
|
|
|
|
|
Adjusted earnings
per share
|
|
|
|
|
|
|
Numerator
|
|
|
|
|
|
|
Net income
|
|
$
|
64,332
|
|
$
|
33,311
|
Income tax
expense
|
|
|
19,988
|
|
|
10,698
|
Income before income
tax expense
|
|
|
84,320
|
|
|
44,009
|
Inventory
impairment
|
|
|
—
|
|
|
—
|
Impairment on other
investment
|
|
|
7,722
|
|
|
—
|
Purchase price
accounting for acquired work in process inventory
|
|
|
1,581
|
|
|
—
|
Adjusted income before
income tax expense
|
|
|
93,623
|
|
|
44,009
|
Adjusted income tax
expense(1)
|
|
|
(22,193)
|
|
|
(10,698)
|
Adjusted net
income
|
|
$
|
71,430
|
|
$
|
33,311
|
|
|
|
|
|
|
|
Denominator -
Diluted
|
|
|
32,238,808
|
|
|
32,117,082
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
|
$
|
2.22
|
|
$
|
1.04
|
|
|
(1)
|
The tax rates used in
calculating adjusted net income for the three months ended March
31, 2024 and 2023 was 23.7% and 24.3%, 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 interest,
inventory impairment, and purchase price accounting for acquired
work in process inventory 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 and indebtedness 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
March 31,
|
|
|
2024
|
|
%
|
|
2023
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Home sales
revenues
|
|
$
|
922,402
|
|
100.0
|
%
|
|
$
|
735,600
|
|
100.0
|
%
|
Cost of home sales
revenues
|
|
|
(725,570)
|
|
(78.7)
|
%
|
|
|
(601,385)
|
|
(81.8)
|
%
|
Inventory
impairment
|
|
|
—
|
|
—
|
%
|
|
|
—
|
|
—
|
%
|
Homebuilding gross
margin
|
|
|
196,832
|
|
21.3
|
%
|
|
|
134,215
|
|
18.2
|
%
|
Add: Inventory
impairment
|
|
|
—
|
|
—
|
%
|
|
|
—
|
|
—
|
%
|
Add: Interest in cost
of home sales revenues
|
|
|
12,033
|
|
1.3
|
%
|
|
|
9,807
|
|
1.3
|
%
|
Adjusted homebuilding
gross margin excluding interest and inventory impairment
|
|
$
|
208,865
|
|
22.6
|
%
|
|
$
|
144,022
|
|
19.6
|
%
|
Add: Purchase price
accounting for acquired work in process inventory
|
|
|
1,581
|
|
0.2
|
%
|
|
|
—
|
|
—
|
%
|
Adjusted homebuilding
gross margin excluding interest, inventory impairment
and purchase price accounting for acquired work in process
inventory
|
|
$
|
210,446
|
|
22.8
|
%
|
|
$
|
144,022
|
|
19.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2024
|
|
2023
|
|
%
Change
|
Net income
|
|
$
|
64,332
|
|
$
|
33,311
|
|
|
93.1
|
%
|
Income tax
expense
|
|
|
19,988
|
|
|
10,698
|
|
|
86.8
|
%
|
Interest in cost of
home sales revenues
|
|
|
12,033
|
|
|
9,807
|
|
|
22.7
|
%
|
Interest expense
(income)
|
|
|
(1,515)
|
|
|
(2,364)
|
|
|
(35.9)
|
%
|
Depreciation and
amortization expense
|
|
|
5,475
|
|
|
3,292
|
|
|
66.3
|
%
|
EBITDA
|
|
|
100,313
|
|
|
54,744
|
|
|
83.2
|
%
|
Inventory
impairment
|
|
|
—
|
|
|
—
|
|
|
NM
|
|
Impairment on other
investment
|
|
|
7,722
|
|
|
—
|
|
|
NM
|
|
Purchase price
accounting for acquired work in process inventory
|
|
|
1,581
|
|
|
—
|
|
|
NM
|
|
Adjusted
EBITDA
|
|
$
|
109,616
|
|
$
|
54,744
|
|
|
100.2
|
%
|
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.
(in
thousands)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
Notes
payable
|
|
$
|
1,069,762
|
|
$
|
1,062,471
|
Revolving line of
credit
|
|
|
—
|
|
|
—
|
Construction loan
agreements
|
|
|
(60,867)
|
|
|
(44,895)
|
Total homebuilding
debt
|
|
|
1,008,895
|
|
|
1,017,576
|
Total stockholders'
equity
|
|
|
2,419,276
|
|
|
2,386,936
|
Total
capital
|
|
$
|
3,428,171
|
|
$
|
3,404,512
|
Homebuilding debt to
capital
|
|
|
29.4 %
|
|
|
29.9 %
|
|
|
|
|
|
|
|
Total homebuilding
debt
|
|
$
|
1,008,895
|
|
$
|
1,017,576
|
Cash and cash
equivalents
|
|
|
(122,840)
|
|
|
(226,150)
|
Cash held in
escrow
|
|
|
(84,776)
|
|
|
(101,845)
|
Net homebuilding
debt
|
|
|
801,279
|
|
|
689,581
|
Total stockholders'
equity
|
|
|
2,419,276
|
|
|
2,386,936
|
Net capital
|
|
$
|
3,220,555
|
|
$
|
3,076,517
|
|
|
|
|
|
|
|
Net homebuilding debt
to net capital
|
|
|
24.9 %
|
|
|
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.