Century Communities Reports Fourth Quarter and Full Year 2023 Results

- Full Year Deliveries of 9,568 Homes and Revenues of $3.7 Billion -
- Fourth Quarter Net Income Increased 15% Year-Over-Year to $91.3 Million, $2.83 Per Diluted Share -
- Net Homebuilding Debt to Net Capital of 22.4%, a Year End Company Record -
- Book Value per Share Increased to a Company Record $75.12 -
- 21(st) Consecutive Year of Profitability -

GREENWOOD VILLAGE, Colo., Jan. 31, 2024 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS), one of the nation's largest homebuilders, today announced financial results for its fourth quarter and full year ended December 31, 2023.

Fourth Quarter 2023 Highlights

    --  Net income of $91.3 million, or $2.83 per diluted share
    --  Adjusted net income of $94.5 million, or $2.93 per diluted share
    --  Pre-tax income of $126.1 million
    --  EBITDA of $145.2 million
    --  Total revenues of $1.2 billion
    --  Deliveries of 3,157 homes, a quarterly Company record
    --  Net new home contracts of 2,340
    --  Homebuilding gross margin of 21.6%
    --  Adjusted homebuilding gross margin of 23.0%

Full Year 2023 Highlights

    --  Net income of $259.2 million, or $8.05 per diluted share
    --  Adjusted net income of $260.6 million, or $8.09 per diluted share
    --  Pre-tax income of $350.8 million
    --  EBITDA of $405.3 million
    --  Total revenues of $3.7 billion
    --  Deliveries of 9,568 homes
    --  Net new home contracts of 8,828
    --  Homebuilding gross margin of 21.2%
    --  Adjusted homebuilding gross margin of 22.5%

"Our fourth quarter deliveries of 3,157 homes, a quarterly record for the Company, increased 39% sequentially as we benefitted from our increased level of home starts earlier in the year and continued improvements in our cycle times," said Dale Francescon, Chairman and Co-Chief Executive Officer. "On the back of this strong fourth quarter performance, we delivered 9,568 homes and generated total revenues of $3.7 billion for the full year 2023. We saw meaningful improvement in our cycle times, deliveries and earnings in the second half of 2023 as compared to the first, and are optimistic about the outlook for 2024, especially given the strong underlying demand that exists for affordable new homes. For the full year 2024, we expect our 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."

Rob Francescon, Co-Chief Executive Officer and President, said, "Our net new home contracts of 2,340 in the fourth quarter 2023 increased 86% over year ago levels and exceeded our expectations given the quarter's typical seasonal decline. Our total lot inventory of 73,720 increased by 39% over the prior year end, with the higher lot count driven entirely by gains in our controlled lots, which accounted for 59% of our total lots at the end of the fourth quarter. Our balance sheet remains strong with $2.4 billion in stockholders' equity, $1.1 billion in liquidity and net homebuilding debt to net capital of 22.4%, the lowest year end level in our history as a public company."

Fourth Quarter 2023 Results

Net income for the fourth quarter 2023 was $91.3 million, or $2.83 per diluted share. Adjusted net income was $94.5 million, or $2.93 per diluted share.

Total revenues were $1.2 billion, with fourth quarter home sales revenues totaling $1.2 billion as well. Deliveries totaled 3,157 homes, a quarterly record for the Company. The average sales price of home deliveries for the fourth quarter 2023 was $375,500.

Net new home contracts in the fourth quarter 2023 were 2,340, and at the end of the fourth quarter 2023, the Company had 1,070 homes in backlog, representing $400.8 million of backlog dollar value.

Adjusted homebuilding gross margin percentage, excluding interest and inventory impairment, was 23.0% in the fourth quarter of 2023. Homebuilding gross margin percentage in the fourth quarter 2023 was 21.6%. Selling, general, and administrative expenses as a percent of home sales revenues was 11.1% in the quarter. EBITDA for the fourth quarter 2023 was $145.2 million.

Financial services revenues and pre-tax income were $16.5 million and $1.8 million, respectively, in the fourth quarter 2023.

Our book value per share increased to a record $75.12 as of December 31, 2023.

Full Year 2023 Results

Net income for the full year 2023 was $259.2 million, or $8.05 per diluted share. Adjusted net income was $260.6 million, or $8.09 per diluted share.

Total revenues were $3.7 billion, with full year 2023 home sales revenues totaling $3.6 billion. Deliveries totaled 9,568 homes. The average sales price of home deliveries for the full year 2023 was $376,700.

Net new home contracts totaled 8,828 for the full year 2023.

Adjusted homebuilding gross margin percentage, excluding interest and inventory impairment, was 22.5% in 2023. Homebuilding gross margin percentage in 2023 was 21.2%. Selling, general, and administrative expenses as a percent of home sales revenues was 12.4% in 2023. EBITDA for the full year 2023 was $405.3 million.

Financial services revenues and pre-tax income were $80.2 million and $31.6 million, respectively, for the full year 2023.

Balance Sheet and Liquidity

The Company ended the quarter with a strong financial position, including $2.4 billion of stockholders' equity and $1.1 billion of total liquidity, including $328.0 million of cash.

During the fourth quarter, the Company maintained its quarterly cash dividend of $0.23 per share.

As of December 31, 2023, homebuilding debt to capital decreased to 29.9% from 32.0% at December 31, 2022. As of December 31, 2023, net homebuilding debt to net capital decreased to 22.4% from 23.5% at December 31, 2022.

Full Year 2024 Outlook

David Messenger, Chief Financial Officer of the Company, commented, "Given continued strong demand for affordable new homes, cycle times that are in line with historical levels and further growth in our community count, we 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, January 31, 2024, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's fourth quarter and full year 2023 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 February 7, 2024, by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering the passcode 3626796. 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 2023. 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 further growth in its community count. 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 December
                                                                                                                                           31,                              Year Ended December 31,


                                                                                                                         2023                           2022              2023                          2022



     
              Revenues



     Homebuilding Revenues



     Home sales revenues                                                                                   $
            1,185,409              $
            1,152,248 $
            3,604,434             $
            4,393,786



     Land sales and other revenues                                                                                       3,717                            3,825               7,528                          16,697



     Total homebuilding revenues                                                                                     1,189,126                        1,156,073           3,611,962                       4,410,483



     Financial services revenues                                                                                        16,456                           23,060              80,223                          95,433



     Total revenues                                                                                                  1,205,582                        1,179,133           3,692,185                       4,505,916



     
              Homebuilding Cost of Revenues



     Cost of home sales revenues                                                                                     (927,805)                       (939,733)        (2,838,436)                    (3,305,366)



     Cost of land sales and other revenues                                                                             (1,773)                         (1,477)            (2,147)                       (10,628)



     Total homebuilding cost of revenues                                                                             (929,578)                       (941,210)        (2,840,583)                    (3,315,994)



     Financial services costs                                                                                         (14,677)                        (11,013)           (48,660)                       (54,275)



     Selling, general, and administrative                                                                            (131,959)                       (109,257)          (447,311)                      (430,742)



     Inventory impairment and other                                                                                    (1,877)                        (10,149)            (1,877)                       (10,149)



     Other expense                                                                                                     (1,417)                         (5,102)            (2,924)                       (17,856)



     Income before income tax expense                                                                                  126,074                          102,402             350,830                         676,900



     Income tax expense                                                                                               (34,756)                        (22,913)           (91,606)                      (151,774)



     Net income                                                                                               $
            91,318                 $
            79,489   $
            259,224               $
            525,126





     
              Earnings per share:



     Basic                                                                                                      $
            2.87                   $
            2.50      $
            8.12                 $
            16.12



     Diluted                                                                                                    $
            2.83                   $
            2.47      $
            8.05                 $
            15.92



     
              Weighted average common shares outstanding:



     Basic                                                                                                          31,774,340                       31,772,786          31,918,942                      32,578,967



     Diluted                                                                                                        32,236,990                       32,195,308          32,209,359                      32,977,935


                                                                                                        
              
                Century Communities, Inc.

                                                                                                       
              
                Consolidated Balance Sheets

                                                                                                               
              
                (Unaudited)

                                                                                                         
              (in thousands, except share amounts)




                                                                                                                                                                            December 31,                       December 31,


                                                                                                                                                                        2023                          2022



              
                Assets                                                                                                                              (unaudited)                   (audited)



              Cash and cash equivalents                                                                                                                     $
            226,150             $
              296,724



              Cash held in escrow                                                                                                                                     101,845                          56,569



              Accounts receivable                                                                                                                                      76,213                          52,797



              Inventories                                                                                                                                           3,016,641                       2,830,645



              Mortgage loans held for sale                                                                                                                            251,852                         203,558



              Prepaid expenses and other assets                                                                                                                       350,193                         250,535



              Property and equipment, net                                                                                                                              69,075                          31,688



              Deferred tax assets, net                                                                                                                                 16,998                          20,856



              Goodwill                                                                                                                                                 30,395                          30,395



              Total assets                                                                                                                                $
            4,139,362           $
              3,773,767



              
                Liabilities and stockholders' equity



              Liabilities:



              Accounts payable                                                                                                                              $
            147,265             $
              106,926



              Accrued expenses and other liabilities                                                                                                                  303,392                         299,588



              Notes payable                                                                                                                                         1,062,471                       1,019,412



              Revolving line of credit



              Mortgage repurchase facilities                                                                                                                          239,298                         197,626



              Total liabilities                                                                                                                                     1,752,426                       1,623,552



              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, 31,774,615 and 31,772,791 shares issued                                                       318                             318
    and outstanding at December 31, 2023 and December 31, 2022, respectively



              Additional paid-in capital                                                                                                                              592,989                         584,803



              Retained earnings                                                                                                                                     1,793,629                       1,565,094



              Total stockholders' equity                                                                                                                            2,386,936                       2,150,215



              Total liabilities and stockholders' equity                                                                                                  $
            4,139,362           $
              3,773,767


                                 
              
               Century Communities, Inc.

                       
              
               Homebuilding Operational Data
                (1)

                                        
             
                (Unaudited)





     
                Net New Home Contracts




                                                             Three Months Ended December 31,                Year Ended December 31,


                                        2023             2022                                % Change 2023         2022             % Change



     West                               310              263                17.9               1,159 1,147             1.0
                                                                              %
                                                                                                                     %



     Mountain                           440              150               193.3               1,614 1,397            15.5

                                                                              %                                      %



     Texas                              378              262                44.3               1,630 1,306            24.8
                                                                              %
                                                                                                                     %



     Southeast                          351              110               219.1               1,296 1,174            10.4

                                                                              %                                      %


      Century Complete                   861              473                82.0               3,129 2,729            14.7
                                                                              %
                                                                                                                     %



     Total                            2,340            1,258                86.0               8,828 7,753            13.9
                                                                              %
                                                                                                                     %



     
                Home Deliveries


     (dollars in thousands)




                                                Three Months Ended December 31,


                                                2023                                               2022                   % Change


                                   Homes                Average Sales                  Homes                  Average Sales            Homes Average Sales
                                          Price                                              Price                         Price



     West                           395 $
             585.1                          391          $
          673.0     1.0
                                                                                                                                     %
                                                                                                                %               (13.1)



     Mountain                       567 $
             495.2                          535          $
          549.5     6.0
                                                                                                                                     %
                                                                                                                %                (9.9)



     Texas                          458 $
             291.4                          351          $
          301.8    30.5
                                                                                                                                     %
                                                                                                                %                (3.4)



     Southeast                      519 $
             435.3                          489          $
          404.7     6.1
                                                                                                                                     %
                                                                                                                %                  7.6



     Century Complete             1,218 $
             258.0                        1,137          $
          256.2     7.1
                                                                                                                                     %
                                                                                                                %                  0.7



     Total / Weighted Average     3,157 $
             375.5                        2,903          $
          396.9     8.7
                                                                                                                                     %
                                                                                                                %                (5.4)




                                                    Year Ended December 31,


                                                2023                                               2022                   % Change


                                   Homes                Average Sales                  Homes                  Average Sales            Homes Average Sales
                                          Price                                              Price                         Price



     West                         1,133 $
             588.6                        1,591          $
          675.3  (28.8)
                                                                                                                                     %
                                                                                                                %               (12.8)



     Mountain                     1,892 $
             508.7                        2,001          $
          568.5   (5.4)
                                                                                                                                     %
                                                                                                                %               (10.5)



     Texas                        1,617 $
             285.2                        1,642          $
          322.8   (1.5)
                                                                                                                                     %
                                                                                                                %               (11.6)



     Southeast                    1,370 $
             434.2                        1,682          $
          430.4  (18.5)
                                                                                                                                     %
                                                                                                                %                  0.9



     Century Complete             3,556 $
             258.5                        3,678          $
          252.3   (3.3)
                                                                                                                                     %
                                                                                                                %                  2.5



     Total / Weighted Average     9,568 $
             376.7                       10,594          $
          414.7   (9.7)
                                                                                                                                     %
                                                                                                                %                (9.2)


                        
        
               Century Communities, Inc.

              
              
         Homebuilding Operational Data
             (1)

                           
           
                (Unaudited)





      Selling Communities




                                                       As of December                     Increase/
                                                        31,                      (Decrease)


                                   2023            2022                   Amount                    % Change



     West                           27              24                        3         12.5

                                                                                         %



     Mountain                       51              31                       20         64.5

                                                                                         %



     Texas                          43              33                       10         30.3

                                                                                         %



     Southeast                      27              22                        5         22.7

                                                                                         %


      Century Complete              103              98                        5          5.1

                                                                                         %



     Total                         251             208                       43         20.7

                                                                                         %



     
                Backlog


     (dollars in thousands)




                                               
          
               As of December 31,


                                                              2023                                                      2022        
           
            % Change


                               Homes           Dollar                          Average Sales       Homes                     Dollar                     Average Sales                  Homes     Dollar
                                                Value                                                            Value                                                             Value     Average Sales
                                                        Price                                                       Price                                             Price



     West                       106  $
      67,425          $
              636.1                     80    $
      57,524             $
           719.0      32.5
                                                                                                                                                                  %             %
                                                                                                                                              %                17.2         (11.5)



     Mountain                   163      92,785          $
              569.2                    441       223,938             $
           507.8    (63.0)
                                                                                                                                                                  %             %
                                                                                                                                              %              (58.6)          12.1



     Texas                      168      53,044          $
              315.7                    155        47,363             $
           305.6       8.4
                                                                                                                                                                  %             %
                                                                                                                                              %                12.0            3.3



     Southeast                  131      57,165          $
              436.4                    205        96,671             $
           471.6    (36.1)
                                                                                                                                                                  %             %
                                                                                                                                              %              (40.9)         (7.5)



     Century Complete           502     130,362          $
              259.7                    929       245,882             $
           264.7    (46.0)
                                                                                                                                                                  %             %
                                                                                                                                              %              (47.0)         (1.9)



     Total / Weighted Average 1,070 $
      400,781          $
              374.6                  1,810   $
      671,378             $
           370.9    (40.9)
                                                                                                                                                                  %             %
                                                                                                                                              %              (40.3)           1.0



     
                Lot Inventory




                                              
     
               As of December 31,


                                                  2023                                       2022                       % Change




                                         Owned                      Controlled                   Total                 Owned              Controlled Total Owned Controlled Total





     West                        4,036   3,259       7,295                 4,433        509               4,942   (9.0)           540.3      47.6

                                                                                                                 %               %        %



     Mountain                    8,615   5,025      13,640                10,845      1,566              12,411  (20.6)           220.9       9.9

                                                                                                                 %               %        %



     Texas                       8,647  11,027      19,674                 7,432      3,876              11,308    16.3            184.5      74.0

                                                                                                                 %               %        %



     Southeast                   5,486  10,941      16,427                 5,576      5,733              11,309   (1.6)            90.8      45.3
                                                                                                                                 %
                                                                                                                 %                        %


      Century Complete            3,839  12,845      16,684                 3,826      9,323              13,149     0.3             37.8      26.9
                                                                                                                                 %
                                                                                                                 %                        %



     Total                      30,623  43,097      73,720                32,112     21,007              53,119   (4.6)           105.2      38.8

                                                                                                                 %               %        %



     % of Total                 41.5 % 58.5 %    100.0 %               60.5 %    39.5 %            100.0 %




     (1) Commencing in the first quarter of 2023, our Century Complete operations in Texas were realigned and are now managed under our Texas segment. Accordingly, we have presented segment information under this
            new basis as of and for the three months and year ended December 31, 2023, and we have restated the corresponding segment information for those segments as of and for the three months and year ended
            December 31, 2022.

Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures that we believe are useful to management, investors and other users of the Company's financial information in evaluating its operating results and understanding its operating trends without the effect of certain non-recurring items. The Company believes excluding certain non-recurring items provides more comparable assessment of its financial results from period to period. We define adjusted net income as consolidated net income before (i) income tax expense, (ii) inventory impairment (iii) restructuring costs, and (iv) loss on debt extinguishment, less adjusted income tax expense, calculated using the Company's GAAP tax rate for the applicable period. Adjusted diluted earnings per share 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 December
                                                                                                                   31,                          Year Ended December 31,


                                                                                               2023                          2022           2023                        2022



     
                Numerator



     Net income                                                                      $
           91,318              $
              79,489 $
           259,224             $
            525,126



     
                Denominator



     Weighted average common shares outstanding - basic                                   31,774,340                      31,772,786       31,918,942                    32,578,967



     Dilutive effect of stock-based compensation awards                                      462,650                         422,522          290,417                       398,968



     Weighted average common shares outstanding - diluted                                 32,236,990                      32,195,308       32,209,359                    32,977,935



     
                Earnings per share:



     Basic                                                                             $
           2.87                $
              2.50    $
           8.12               $
            16.12



     Diluted                                                                           $
           2.83                $
              2.47    $
           8.05               $
            15.92





     
                Adjusted earnings per share



     
                Numerator



     Net income                                                                      $
           91,318              $
              79,489 $
           259,224             $
            525,126



     Income tax expense                                                                       34,756                          22,913           91,606                       151,774



     Income before income tax expense                                                        126,074                         102,402          350,830                       676,900



     Inventory impairment                                                                      1,877                          10,149            1,877                        10,149



     Adjusted income before income tax expense                                               127,951                         112,551          352,707                       687,049



     Adjusted income tax expense(2)                                                         (33,410)                       (25,236)        (92,096)                    (154,050)



     
                Adjusted net income                                                $
           94,541              $
              87,315 $
           260,611             $
            532,999





     
                Denominator - Diluted                                                   32,236,990                      32,195,308       32,209,359                    32,977,935





     
                Adjusted diluted earnings per share                                  $
           2.93                $
              2.71    $
           8.09               $
            16.16




     (2) The tax rates used in calculating adjusted net income for the years ended December 31, 2023 and 2022 was 26.1% and 22.4%, respectively, which are reflective of the Company's GAAP tax rates for the
            applicable periods. For the three months ended December 31, 2023 and 2022, our adjusted income tax expense is reflective of our full year effective tax rate of approximately 26.1% and 22.4% applied to
            adjusted income before income tax expense.

Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

Adjusted homebuilding gross margin excluding inventory impairment and interest 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 December 31,


                                                                                             2023                         %                          2022           %





              Home sales revenues                                                 $
         1,185,409     100.0                  $
              1,152,248          100.0

                                                                                                           %                                                   %



              Cost of home sales revenues                                                (927,805)   (78.3)                             (939,733)        (81.6)

                                                                                                           %                                                   %



              Inventory impairment                                                         (1,877)    (0.2)                              (10,149)         (0.9)

                                                                                                           %                                                   %



              Homebuilding gross margin                                                    255,727      21.6                                202,366           17.6

                                                                                                           %                                                   %



              Add: Inventory impairment                                                      1,877       0.2                                 10,149            0.9

                                                                                                           %                                                   %



              Add: Interest in cost of home sales revenues                                  15,198       1.3                                 15,324            1.3

                                                                                                           %                                                   %



              Adjusted homebuilding gross margin excluding interest and inventory   $
         272,802      23.0                    $
              227,839           19.8

                                                                                                           %                                                   %
    impairment








                                                                                          
             
          Year Ended December 31,


                                                                                             2023                         %                          2022           %





              Home sales revenues                                                 $
         3,604,434     100.0                  $
              4,393,786          100.0

                                                                                                           %                                                   %



              Cost of home sales revenues                                              (2,838,436)   (78.7)                           (3,305,366)        (75.2)

                                                                                                           %                                                   %



              Inventory impairment                                                         (1,877)    (0.1)                              (10,149)         (0.2)

                                                                                                           %                                                   %



              Homebuilding gross margin                                                    764,121      21.2                              1,078,271           24.5

                                                                                                           %                                                   %



              Add: Inventory impairment                                                      1,877       0.1                                 10,149            0.2

                                                                                                           %                                                   %



              Add: Interest in cost of home sales revenues                                  45,927       1.3                                 54,669            1.2

                                                                                                           %                                                   %



              Adjusted homebuilding gross margin excluding interest and inventory   $
         811,925      22.5                  $
              1,143,089           26.0

                                                                                                           %                                                   %
    impairment

Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

EBITDA and Adjusted EBITDA

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), and inventory impairment (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 December 31,                     Year Ended December 31,


                                                   2023                    2022                  % Change             2023                  2022         % Change



     Net income                               $
      91,318        $
              79,489         14.9          $
        259,224             $
      525,126   (50.6)

                                                                                             %                                                    %



     Income tax expense                           34,756                    22,913         51.7                 91,606                 151,774   (39.6)

                                                                                             %                                                    %



     Interest in cost of home sales revenues      15,198                    15,324        (0.8)                45,927                  54,669   (16.0)

                                                                                             %                                                    %



     Interest expense (income)                     (791)                     (22)          NM               (7,222)                   (36)      NM



     Depreciation and amortization expense         4,755                     3,016         57.7                 15,774                  11,223     40.6

                                                                                             %                                                    %



     EBITDA                                      145,236                   120,720         20.3                405,309                 742,756   (45.4)

                                                                                             %                                                    %



     Inventory impairment                          1,877                    10,149       (81.5)                 1,877                  10,149   (81.5)

                                                                                             %                                                    %



     Adjusted EBITDA                         $
      147,113       $
              130,869         12.4          $
        407,186             $
      752,905   (45.9)

                                                                                             %                                                    %




              NM - Not Meaningful

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)




                                                    December 31,               December 31,


                                                 2023                 2022



     Notes payable                        $
     1,062,471          $
      1,019,412



     Revolving line of credit



     Construction loan agreements             (44,895)               (7,389)



     Total homebuilding debt                 1,017,576              1,012,023



     Total stockholders' equity              2,386,936              2,150,215



     Total capital                        $
     3,404,512          $
      3,162,238



     Homebuilding debt to capital               29.9 %                32.0 %





     Total homebuilding debt              $
     1,017,576          $
      1,012,023



     Cash and cash equivalents               (226,150)             (296,724)



     Cash held in escrow                     (101,845)              (56,569)



     Net homebuilding debt                     689,581                658,730



     Total stockholders' equity              2,386,936              2,150,215



     Net capital                          $
     3,076,517          $
      2,808,945





     Net homebuilding debt to net capital       22.4 %                23.5 %

Contact Information:
Tyler Langton, Senior Vice President of Investor Relations
303-268-8345
Investorrelations@CenturyCommunities.com

Category:
Earnings

View original content to download multimedia:https://www.prnewswire.com/news-releases/century-communities-reports-fourth-quarter-and-full-year-2023-results-302049838.html

SOURCE Century Communities, Inc.