false000157694000015769402024-10-232024-10-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 8-K

____________________

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 23, 2024

____________________

CENTURY COMMUNITIES, INC.

(Exact name of registrant as specified in its charter)

____________________

Delaware

001-36491

68-0521411

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer Identification Number)

8390 East Crescent Parkway, Suite 650
Greenwood Village, Colorado

80111

(Address of principal executive offices)

(Zip Code)

(303) 770-8300

(Registrant’s telephone number, including area code)

Not Applicable

(Former name of former address, if changed since last report.)

____________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

CCS

New York Stock Exchange

__________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933, as amended, or Rule 12b-2 of the Securities Exchange Act of 1934, as amended.

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Item 2.02. Results of Operations and Financial Condition

On October 23, 2024, Century Communities, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition as of and for the three and nine months ended September 30, 2024. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Current Report on Form 8-K (including Exhibit 99.1) is being “furnished” in accordance with General Instruction B.2 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be incorporated by reference into any registration statement or any other document filed pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing.

As discussed therein, the press release furnished as Exhibit 99.1 to this Current Report on Form 8-K contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumptions. These forward-looking statements relate to the Company’s current expectations and are subject to the limitations and qualifications set forth in the press release as well as in the Company’s other documents filed with the U.S. Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.

Item 9.01. Financial Statements and Exhibits

(d)Exhibits.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 23, 2024

CENTURY COMMUNITIES, INC.

By:

/s/ J. Scott Dixon

J. Scott Dixon

Chief Financial Officer





Picture 3



Century Communities Reports Third Quarter 2024 Results



- Home Sales Revenues of $1.1 Billion Increased 29% YoY -

- Deliveries of 2,834 Homes Increased 25% YoY -

- Net New Home Contracts of 2,563 Increased 19% YoY -

- Community Count of 305, a Company Record, Increased 21% YoY -



Greenwood Village, Colorado (October 23, 2024) – Century Communities, Inc. (NYSE: CCS), one of the nation’s largest homebuilders, today announced financial results for its third quarter ended September 30, 2024.



Third Quarter 2024 Highlights

·

Net income of $83.0 million, or $2.59 per diluted share

·

Adjusted net income of $87.0 million, or $2.72 per diluted share

·

Pre-tax income of $109.9 million

·

Total revenues of $1.1 billion

·

Community count of 305, a Company record

·

Deliveries of 2,834 homes, a Company record for the third quarter

·

Net new home contracts of 2,563

·

Homebuilding gross margin of 21.7%

·

Adjusted homebuilding gross margin of 23.6%

·

Acquired Anglia Homes, our ninth homebuilder acquisition

“We saw strong growth in our net new contracts and deliveries in the third quarter as demand for affordable new homes remains solid,” said Dale Francescon, Chairman and Co-Chief Executive Officer. “Our net new contracts of 2,563 homes increased by 19% on a year-over-year basis while our deliveries of 2,834 homes, a third quarter record for the Company, increased by 25%. We generated an adjusted homebuilding gross margin of 23.6%, which was roughly in line with second quarter 2024 levels of 24.0%, while we drove both a year-over-year and sequential decline in our selling, general, and administrative expenses as a percent of home sales revenues as we continue to leverage our fixed costs.

Rob Francescon, Co-Chief Executive Officer and President, said, “Our total lot inventory of 80,121 increased by 17% on a year-over-year basis, with our controlled lots accounting for 55% of our total lots at the end of the third quarter. Our community count grew by 21% on a year-over-year basis to 305, a record for the Company. On July 31, we acquired Anglia Homes, our second homebuilder acquisition this year, which is consistent with our strategy of deepening our share in our existing markets in a land-light manner while also increasing our go-forward access to capital-efficient finished lots.”

Third Quarter 2024 Results

Net income for the third quarter 2024 was $83.0 million, or $2.59 per diluted share. Adjusted net income, which excludes purchase price accounting and inventory impairment, was $87.0 million, or $2.72 per diluted share.

Total revenues were $1.1 billion, with third quarter home sales revenues totaling $1.1 billion as well. Deliveries totaled 2,834 homes. The average sales price of home deliveries for the third quarter 2024 was $393,800.

Net new home contracts in the third quarter 2024 were 2,563, and at the end of the third quarter 2024, the Company had 1,580 homes in backlog, representing $671.4 million of backlog dollar value.


 

Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was 23.6% in the third quarter of 2024. Homebuilding gross margin percentage in the third quarter 2024 was 21.7%. Selling, general, and administrative expenses as a percent of home sales revenues was 11.9% in the quarter. Adjusted EBITDA and EBITDA for the third quarter 2024 were $137.1 million and $132.3 million, respectively.

Financial services revenues and pre-tax income were $20.1 million and $3.1 million, respectively, in the third quarter 2024.

Our book value per share increased to a record $81.29 as of September 30, 2024.

Balance Sheet and Liquidity

The Company ended the third quarter 2024 with a strong financial position, including $2.5 billion of stockholders’ equity and $605.9 million of total liquidity, including $219.9 million of cash.

During the third quarter, the Company maintained its quarterly cash dividend of $0.26 per share.

As of September 30, 2024, homebuilding debt to capital was 35.8% compared to 31.1% at June 30, 2024 and net homebuilding debt to net capital was 32.1% compared to 28.1% at June 30, 2024.

Full Year 2024 Outlook

Scott Dixon, Chief Financial Officer of the Company, commented, “Given our progress through the first three quarters of the year, we have increased our full year 2024 guidance for home deliveries to be in the range of 10,900 to 11,300 homes and our home sales revenues to be in the range of $4.3 to $4.4 billion.”

Webcast and Conference Call

The Company will host a webcast and conference call on Wednesday, October 23, 2024, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s third 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 October 30, 2024, by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering the passcode 7570440. A replay of the webcast will be available on the Company’s website for at least one year.

About Century Communities

Century Communities, Inc. (NYSE: CCS) is one of the nation's largest homebuilders, an industry leader in online home sales, and the highest-ranked homebuilder on Newsweek's list of America's Most Trustworthy Companies 2024—consecutively awarded for a second year—and Newsweek's list of the World'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. 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.


 

Picture 7



Century Communities, Inc.

Consolidated Statements of Operations

(Unaudited)

(in thousands, except share and per share amounts)





 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2024

 

2023

 

2024

 

2023

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Homebuilding Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenues

 

$

1,116,125 

 

$

865,065 

 

$

3,055,941 

 

$

2,419,025 

Land sales and other revenues

 

 

650 

 

 

722 

 

 

2,242 

 

 

3,811 

Total homebuilding revenues

 

 

1,116,775 

 

 

865,787 

 

 

3,058,183 

 

 

2,422,836 

Financial services revenues

 

 

20,091 

 

 

23,636 

 

 

66,676 

 

 

63,768 

Total revenues

 

 

1,136,866 

 

 

889,423 

 

 

3,124,859 

 

 

2,486,604 

Homebuilding Cost of Revenues

 

 

 

 

 

 

 

 

 

 

 

 

Cost of home sales revenues

 

 

(873,081)

 

 

(652,411)

 

 

(2,386,208)

 

 

(1,910,630)

Cost of land sales and other revenues

 

 

(170)

 

 

 —

 

 

(207)

 

 

(375)

Total homebuilding cost of revenues

 

 

(873,251)

 

 

(652,411)

 

 

(2,386,415)

 

 

(1,911,005)

Financial services costs

 

 

(17,021)

 

 

(11,432)

 

 

(47,894)

 

 

(33,983)

Selling, general, and administrative

 

 

(132,972)

 

 

(111,918)

 

 

(373,054)

 

 

(315,351)

Inventory impairment

 

 

(1,373)

 

 

 —

 

 

(1,942)

 

 

 —

Other expense

 

 

(2,337)

 

 

(1,663)

 

 

(10,690)

 

 

(1,509)

Income before income tax expense

 

 

109,912 

 

 

111,999 

 

 

304,864 

 

 

224,756 

Income tax expense

 

 

(26,892)

 

 

(28,849)

 

 

(73,789)

 

 

(56,850)

Net income

 

$

83,020 

 

$

83,150 

 

$

231,075 

 

$

167,906 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.65 

 

$

2.60 

 

$

7.31 

 

$

5.25 

Diluted

 

$

2.59 

 

$

2.58 

 

$

7.19 

 

$

5.21 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

31,336,756 

 

 

31,962,884 

 

 

31,596,995 

 

 

31,967,672 

Diluted

 

 

32,025,015 

 

 

32,237,022 

 

 

32,117,917 

 

 

32,200,677 




 

Picture 6



Century Communities, Inc.

Consolidated Balance Sheets

(Unaudited)

(in thousands, except share amounts)









 

 

 

 

 

 



 

 

 

 

 

 



 

September 30,

 

December 31,



 

2024

 

2023

Assets

 

(unaudited)

 

(audited)

Cash and cash equivalents

 

$

149,155 

 

$

226,150 

Cash held in escrow

 

 

70,755 

 

 

101,845 

Accounts receivable

 

 

73,016 

 

 

76,213 

Inventories

 

 

3,581,099 

 

 

3,016,641 

Mortgage loans held for sale

 

 

257,187 

 

 

251,852 

Prepaid expenses and other assets

 

 

427,961 

 

 

350,193 

Property and equipment, net

 

 

165,117 

 

 

69,075 

Deferred tax assets, net

 

 

17,241 

 

 

16,998 

Goodwill

 

 

39,434 

 

 

30,395 

Total assets

 

$

4,780,965 

 

$

4,139,362 

Liabilities and stockholders' equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

165,369 

 

$

147,265 

Accrued expenses and other liabilities

 

 

287,937 

 

 

303,392 

Notes payable

 

 

1,118,943 

 

 

1,062,471 

Revolving line of credit

 

 

414,000 

 

 

 —

Mortgage repurchase facilities

 

 

247,214 

 

 

239,298 

Total liabilities

 

 

2,233,463 

 

 

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, 31,337,062 and 31,774,615 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

 

 

313 

 

 

318 

Additional paid-in capital

 

 

547,724 

 

 

592,989 

Retained earnings

 

 

1,999,465 

 

 

1,793,629 

Total stockholders' equity

 

 

2,547,502 

 

 

2,386,936 

Total liabilities and stockholders' equity

 

$

4,780,965 

 

$

4,139,362 






 

Picture 5



Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)



Net New Home Contracts



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,



 

2024

 

 

2023

 

 

% Change

 

 

2024

 

 

2023

 

 

% Change

West

 

365 

 

 

269 

 

 

35.7 

%

 

 

1,181 

 

 

849 

 

 

39.1 

%

Mountain

 

463 

 

 

395 

 

 

17.2 

%

 

 

1,626 

 

 

1,174 

 

 

38.5 

%

Texas

 

454 

 

 

377 

 

 

20.4 

%

 

 

1,488 

 

 

1,252 

 

 

18.8 

%

Southeast

 

396 

 

 

352 

 

 

12.5 

%

 

 

1,232 

 

 

945 

 

 

30.4 

%

Century Complete

 

885 

 

 

756 

 

 

17.1 

%

 

 

2,682 

 

 

2,268 

 

 

18.3 

%

Total

 

2,563 

 

 

2,149 

 

 

19.3 

%

 

 

8,209 

 

 

6,488 

 

 

26.5 

%



Home Deliveries 



(dollars in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

 

 

 

 

 



 

2024

 

2023

 

% Change

 



 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

West

 

363 

 

$

662.9 

 

281 

 

$

596.6 

 

29.2 

%

 

11.1 

%

Mountain

 

513 

 

$

528.4 

 

415 

 

$

498.5 

 

23.6 

%

 

6.0 

%

Texas

 

530 

 

$

300.9 

 

382 

 

$

292.3 

 

38.7 

%

 

2.9 

%

Southeast

 

427 

 

$

421.9 

 

378 

 

$

435.9 

 

13.0 

%

 

(3.2)

%

Century Complete

 

1,001 

 

$

264.6 

 

808 

 

$

265.0 

 

23.9 

%

 

(0.2)

%

Total / Weighted Average

 

2,834 

 

$

393.8 

 

2,264 

 

$

382.1 

 

25.2 

%

 

3.1 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,

 

 

 

 

 

 



 

2024

 

2023

 

% Change

 



 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

West

 

972 

 

$

634.3 

 

738 

 

$

590.5 

 

31.7 

%

 

7.4 

%

Mountain

 

1,494 

 

$

524.8 

 

1,325 

 

$

514.4 

 

12.8 

%

 

2.0 

%

Texas

 

1,439 

 

$

303.4 

 

1,159 

 

$

282.7 

 

24.2 

%

 

7.3 

%

Southeast

 

1,155 

 

$

429.1 

 

851 

 

$

433.6 

 

35.7 

%

 

(1.0)

%

Century Complete

 

2,749 

 

$

263.0 

 

2,338 

 

$

258.8 

 

17.6 

%

 

1.6 

%

Total / Weighted Average

 

7,809 

 

$

391.3 

 

6,411 

 

$

377.3 

 

21.8 

%

 

3.7 

%




 

Picture 10 

Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)





Selling Communities



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

Increase/Decrease



 

2024

 

2023

 

 

Amount

 

% Change

West

 

27 

 

28 

 

 

(1)

 

(3.6)

%

Mountain

 

49 

 

49 

 

 

 —

 

 —

%

Texas

 

74 

 

42 

 

 

32 

 

76.2 

%

Southeast

 

38 

 

29 

 

 

 

31.0 

%

Century Complete

 

117 

 

104 

 

 

13 

 

12.5 

%

Total

 

305 

 

252 

 

 

53 

 

21.0 

%





Backlog



(dollars in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

 

 

 

 

 

 

 



 

2024

 

2023

 

% Change

 



 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

West

 

315 

 

$

196,385 

 

$

623.4 

 

191 

 

$

116,721 

 

$

611.1 

 

64.9 

%

 

68.3 

%

 

2.0 

%

Mountain

 

295 

 

 

171,990 

 

$

583.0 

 

290 

 

 

146,137 

 

$

503.9 

 

1.7 

%

 

17.7 

%

 

15.7 

%

Texas

 

315 

 

 

99,066 

 

$

314.5 

 

248 

 

 

76,224 

 

$

307.4 

 

27.0 

%

 

30.0 

%

 

2.3 

%

Southeast

 

219 

 

 

94,202 

 

$

430.1 

 

299 

 

 

136,921 

 

$

457.9 

 

(26.8)

%

 

(31.2)

%

 

(6.1)

%

Century Complete

 

436 

 

 

109,761 

 

$

251.7 

 

859 

 

 

231,166 

 

$

269.1 

 

(49.2)

%

 

(52.5)

%

 

(6.5)

%

Total / Weighted Average

 

1,580 

 

$

671,404 

 

$

424.9 

 

1,887 

 

$

707,169 

 

$

374.8 

 

(16.3)

%

 

(5.1)

%

 

13.4 

%



Lot Inventory





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of September 30,

 

 

 

 

 

 

 

 

 

 



 

2024

 

2023

 

% Change

 



 

 

 

 

 

 

 

 



 

Owned

 

Controlled

 

Total

 

Owned

 

Controlled

 

Total

 

Owned

 

Controlled

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West

 

4,445 

 

 

3,703 

 

 

8,148 

 

 

4,160 

 

 

3,991 

 

 

8,151 

 

 

6.9 

%

 

(7.2)

%

 

(0.0)

%

Mountain

 

8,681 

 

 

4,808 

 

 

13,489 

 

 

8,751 

 

 

4,745 

 

 

13,496 

 

 

(0.8)

%

 

1.3 

%

 

(0.1)

%

Texas

 

12,413 

 

 

9,693 

 

 

22,106 

 

 

8,105 

 

 

9,691 

 

 

17,796 

 

 

53.2 

%

 

0.0 

%

 

24.2 

%

Southeast

 

5,563 

 

 

12,127 

 

 

17,690 

 

 

5,583 

 

 

8,602 

 

 

14,185 

 

 

(0.4)

%

 

41.0 

%

 

24.7 

%

Century Complete

 

4,584 

 

 

14,104 

 

 

18,688 

 

 

3,638 

 

 

11,304 

 

 

14,942 

 

 

26.0 

%

 

24.8 

%

 

25.1 

%

Total

 

35,686 

 

 

44,435 

 

 

80,121 

 

 

30,237 

 

 

38,333 

 

 

68,570 

 

 

18.0 

%

 

15.9 

%

 

16.8 

%

% of Total

 

44.5% 

 

 

55.5% 

 

 

100.0% 

 

 

44.1% 

 

 

55.9% 

 

 

100.0% 

 

 

 

 

 

 

 

 

 

 






 



Picture 2



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 September 30,

 

Nine Months Ended September 30,



 

2024

 

2023

 

2024

 

2023

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

83,020 

 

$

83,150 

 

$

231,075 

 

$

167,906 

Denominator

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 

31,336,756 

 

 

31,962,884 

 

 

31,596,995 

 

 

31,967,672 

Dilutive effect of stock-based compensation awards

 

 

688,259 

 

 

274,138 

 

 

520,922 

 

 

233,005 

Weighted average common shares outstanding - diluted

 

 

32,025,015 

 

 

32,237,022 

 

 

32,117,917 

 

 

32,200,677 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

2.65 

 

$

2.60 

 

$

7.31 

 

$

5.25 

Diluted

 

$

2.59 

 

$

2.58 

 

$

7.19 

 

$

5.21 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

Numerator

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

83,020 

 

$

83,150 

 

$

231,075 

 

$

167,906 

Income tax expense

 

 

26,892 

 

 

28,849 

 

 

73,789 

 

 

56,850 

Income before income tax expense

 

 

109,912 

 

 

111,999 

 

 

304,864 

 

 

224,756 

Inventory impairment

 

 

1,373 

 

 

 —

 

 

1,942 

 

 

 —

Impairment on other investment

 

 

 —

 

 

 

 

7,722 

 

 

 —

Purchase price accounting for acquired work in process inventory

 

 

3,446 

 

 

 —

 

 

5,999 

 

 

 —

Adjusted income before income tax expense

 

 

114,731 

 

 

111,999 

 

 

320,527 

 

 

224,756 

Adjusted income tax expense(1)

 

 

(27,769)

 

 

(28,849)

 

 

(77,580)

 

 

(56,850)

Adjusted net income

 

$

86,962 

 

$

83,150 

 

$

242,947 

 

$

167,906 



 

 

 

 

 

 

 

 

 

 

 

 

Denominator - Diluted

 

 

32,025,015 

 

 

32,237,022 

 

 

32,117,917 

 

 

32,200,677 



 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share

 

$

2.72 

 

$

2.58 

 

$

7.56 

 

$

5.21 



(1)

The tax rates used in calculating adjusted net income for the three and nine months ended September  30, 2024 were 24.2%, respectively, which are reflective of the Company’s GAAP tax rate for the nine months ended September 30, 2024.  The tax rates used in calculating adjusted net income for the three and nine months ended September 30, 2023 were 25.8% and 25.3%, respectively, which are reflective of the Company’s GAAP tax rates for the applicable periods. 



 



 




 

Picture 9



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)



Adjusted homebuilding gross margin excluding inventory impairment (if applicable), interest in cost of home sales revenues, and purchase price accounting for acquired work in process inventory (if applicable) are not measurements of financial performance under GAAP; however, the Company’s management believes that this information is meaningful as it isolates the impact that inventory impairment,  indebtedness, and acquisitions have on homebuilding gross margin and permits the Company’s stockholders to make better comparisons with the Company’s competitors, who adjust gross margins in a similar fashion.  This non-GAAP financial measure should not be used as a substitute for the Company’s operating results.  An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.



Adjusted Homebuilding Gross Margin

(in thousands)





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2024

 

% 

 

2023

 

% 



 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenues

 

$

1,116,125 

 

100.0 

%

 

$

865,065 

 

100.0 

%

Cost of home sales revenues

 

 

(873,081)

 

(78.2)

%

 

 

(652,411)

 

(75.4)

%

Inventory impairment

 

 

(1,373)

 

(0.1)

%

 

 

 —

 

 —

%

Homebuilding gross margin

 

 

241,671 

 

21.7 

%

 

 

212,654 

 

24.6 

%

Add: Inventory impairment

 

 

1,373 

 

0.1 

%

 

 

 —

 

 —

%

Add: Interest in cost of home sales revenues

 

 

16,492 

 

1.5 

%

 

 

10,652 

 

1.2 

%

Adjusted homebuilding gross margin excluding interest and inventory impairment

 

$

259,536 

 

23.3 

%

 

$

223,306 

 

25.8 

%

Add: Purchase price accounting for acquired work in process inventory

 

 

3,446 

 

0.3 

%

 

 

 —

 

 —

%

Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory

 

$

262,982 

 

23.6 

%

 

$

223,306 

 

25.8 

%



 

 

 

 

 

 

 

 

 

 

 

 



 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2024

 

% 

 

2023

 

% 



 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenues

 

$

3,055,941 

 

100.0 

%

 

$

2,419,025 

 

100.0 

%

Cost of home sales revenues

 

 

(2,386,208)

 

(78.1)

%

 

 

(1,910,630)

 

(79.0)

%

Inventory impairment

 

 

(1,942)

 

(0.1)

%

 

 

 —

 

 —

%

Homebuilding gross margin

 

 

667,791 

 

21.9 

%

 

 

508,395 

 

21.0 

%

Add: Inventory impairment

 

 

1,942 

 

0.1 

%

 

 

 —

 

 —

%

Add: Interest in cost of home sales revenues

 

 

42,117 

 

1.4 

%

 

 

30,729 

 

1.3 

%

Adjusted homebuilding gross margin excluding interest and inventory impairment

 

$

711,850 

 

23.3 

%

 

$

539,124 

 

22.3 

%

Add: Purchase price accounting for acquired work in process inventory

 

 

5,999 

 

0.2 

%

 

 

 —

 

 —

%

Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory

 

$

717,849 

 

23.5 

%

 

$

539,124 

 

22.3 

%








 



Picture 1



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), 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 September 30,

 

Nine Months Ended September 30,



 

2024

 

2023

 

% Change

 

2024

 

2023

 

% Change

Net income

 

$

83,020 

 

$

83,150 

 

 

(0.2)

%

 

$

231,075 

 

$

167,906 

 

 

37.6 

%

Income tax expense

 

 

26,892 

 

 

28,849 

 

 

(6.8)

%

 

 

73,789 

 

 

56,850 

 

 

29.8 

%

Interest in cost of home sales revenues

 

 

16,492 

 

 

10,652 

 

 

54.8 

%

 

 

42,117 

 

 

30,729 

 

 

37.1 

%

Interest income

 

 

(369)

 

 

(1,489)

 

 

(75.2)

%

 

 

(2,693)

 

 

(6,431)

 

 

(58.1)

%

Depreciation and amortization expense

 

 

6,272 

 

 

4,106 

 

 

52.8 

%

 

 

17,437 

 

 

11,019 

 

 

58.2 

%

EBITDA

 

 

132,307 

 

 

125,268 

 

 

5.6 

%

 

 

361,725 

 

 

260,073 

 

 

39.1 

%

Inventory impairment

 

 

1,373 

 

 

 —

 

 

NM

 

 

 

1,942 

 

 

 —

 

 

NM

 

Impairment on other investment

 

 

 —

 

 

 —

 

 

NM

 

 

 

7,722 

 

 

 —

 

 

NM

 

Purchase price accounting for acquired work in process inventory

 

 

3,446 

 

 

 —

 

 

 NM

 

 

 

5,999 

 

 

 —

 

 

NM

 

Adjusted EBITDA

 

$

137,126 

 

$

125,268 

 

 

9.5 

%

 

$

377,388 

 

$

260,073 

 

 

45.1 

%



NM – Not Meaningful


 

Picture 4

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)







 

 

 

 

 

 



 

September 30,

 

December 31,



 

2024

 

2023

Notes payable

 

$

1,118,943 

 

$

1,062,471 

Revolving line of credit

 

 

414,000 

 

 

 —

Construction loan agreements

 

 

(110,337)

 

 

(44,895)

Total homebuilding debt

 

 

1,422,606 

 

 

1,017,576 

Total stockholders' equity

 

 

2,547,502 

 

 

2,386,936 

Total capital

 

$

3,970,108 

 

$

3,404,512 

Homebuilding debt to capital

 

 

35.8% 

 

 

29.9% 



 

 

 

 

 

 

Total homebuilding debt

 

$

1,422,606 

 

$

1,017,576 

Cash and cash equivalents

 

 

(149,155)

 

 

(226,150)

Cash held in escrow

 

 

(70,755)

 

 

(101,845)

Net homebuilding debt

 

 

1,202,696 

 

 

689,581 

Total stockholders' equity

 

 

2,547,502 

 

 

2,386,936 

Net capital

 

$

3,750,198 

 

$

3,076,517 



 

 

 

 

 

 

Net homebuilding debt to net capital

 

 

32.1% 

 

 

22.4% 





Contact Information:

Tyler Langton, Senior Vice President of Investor Relations

303-268-8345

Investorrelations@CenturyCommunities.com



Category: 
Earnings






v3.24.3
Document And Entity Information
Oct. 23, 2024
Document and Entity Information [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Oct. 23, 2024
Entity Registrant Name CENTURY COMMUNITIES, INC.
Entity File Number 001-36491
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 68-0521411
Entity Address, Address Line One 8390 East Crescent Parkway
Entity Address, Address Line Two Suite 650
Entity Address, City or Town Greenwood Village
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80111
City Area Code 303
Local Phone Number 770-8300
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.01 per share
Trading Symbol CCS
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001576940

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