Century Communities Reports Increased First Quarter 2024 Results
- 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 318 318
and outstanding at March 31, 2024 and December 31, 2023, respectively
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 Homes Average Sales Homes Average Sales
Price Price 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 Increase/
31, (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 108 105 3 2.9
Complete
%
Total 253 234 19 8.1
%
Backlog
(dollars in thousands)
As of March 31,
2024 2023 % Change
Homes Dollar Average Homes Dollar Average Homes Dollar
Value Value Value Average
Sales Sales Sales
Price Price 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 $
210,446 22.8 $
144,022 19.6
% %
and purchase price accounting for acquired work in process inventory
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
%
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)
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.
