58.7 F
Los Angeles
HomeInvestmentsCentury Communities Reports Increased First Quarter 2024 Results

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
and outstanding at March 31, 2024 and December 31, 2023, respectively



318



318

Additional paid-in capital



569,581



592,989

Retained earnings



1,849,377



1,793,629

Total stockholders’ equity



2,419,276



2,386,936

Total liabilities and stockholders’ equity


$

4,111,577


$

4,139,362

Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)


Net New Home Contracts













Three Months Ended March 31,



2024



2023



% Change

West


440



343



28.3

%

Mountain


611



333



83.5

%

Texas


514



475



8.2

%

Southeast


450



242



86.0

%

Century Complete


851



629



35.3

%

Total


2,866



2,022



41.7

%

Home Deliveries

(dollars in thousands)




















Three Months Ended March 31,









2024


2023


% Change




Homes


Average Sales
Price


Homes


Average Sales
Price


Homes


Average Sales
Price

West


284


$

606.5


203


$

634.9


39.9

%


(4.5)

%

Mountain


495


$

513.4


455


$

539.8


8.8

%


(4.9)

%

Texas


424


$

309.4


327


$

273.5


29.7

%


13.1

%

Southeast


379


$

426.1


198


$

439.0


91.4

%


(2.9)

%

Century Complete


776


$

262.0


729


$

253.4


6.4

%


3.4

%

Total / Weighted Average


2,358


$

391.2


1,912


$

384.7


23.3

%


1.7

%


















Century Communities, Inc.

Homebuilding Operational Data

(Unaudited)


Selling Communities














As of March 31,



Increase/(Decrease)



2024


2023



Amount


% Change

West


28


26



2


7.7

%

Mountain


46


40



6


15.0

%

Texas


41


35



6


17.1

%

Southeast


30


28



2


7.1

%

Century Complete


108


105



3


2.9

%

Total


253


234



19


8.1

%

Backlog

(dollars in thousands)





























As of March 31,












2024


2023


% Change




Homes


Dollar Value


Average
Sales Price


Homes


Dollar Value


Average
Sales Price


Homes


Dollar Value


Average
Sales Price

West


262


$

176,732


$

674.5


220


$

133,249


$

605.7


19.1

%


32.6

%


11.4

%

Mountain


279



161,477


$

578.8


319



152,521


$

478.1


(12.5)

%


5.9

%


21.1

%

Texas


258



78,396


$

303.9


303



95,464


$

315.1


(14.9)

%


(17.9)

%


(3.6)

%

Southeast


214



99,448


$

464.7


249



110,864


$

445.2


(14.1)

%


(10.3)

%


4.4

%

Century Complete


577



151,154


$

262.0


829



221,514


$

267.2


(30.4)

%


(31.8)

%


(1.9)

%

Total / Weighted Average


1,590


$

667,207


$

419.6


1,920


$

713,612


$

371.7


(17.2)

%


(6.5)

%


12.9

%

Lot Inventory































As of March 31,













2024


2023


% Change













Owned


Controlled


Total


Owned


Controlled


Total


Owned


Controlled


Total





























West


4,397



3,230



7,627



4,279



763



5,042



2.8

%


323.3

%


51.3

%

Mountain


8,475



5,602



14,077



10,314



2,325



12,639



(17.8)

%


140.9

%


11.4

%

Texas


9,422



11,183



20,605



7,578



3,217



10,795



24.3

%


247.6

%


90.9

%

Southeast


5,461



10,370



15,831



5,610



3,658



9,268



(2.7)

%


183.5

%


70.8

%

Century Complete


3,955



12,994



16,949



3,585



10,285



13,870



10.3

%


26.3

%


22.2

%

Total


31,710



43,379



75,089



31,366



20,248



51,614



1.1

%


114.2

%


45.5

%

% of Total


42.2 %



57.8 %



100.0 %



60.8 %



39.2 %



100.0 %











 

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

Adjusted net income and adjusted diluted earnings per share (which we refer to as “Adjusted EPS”) are non-GAAP financial measures that we believe are useful to management, investors and other users of our financial information in evaluating our operating results and understanding our operating trends without the effect of certain non-recurring items. We believe excluding certain non-recurring items provides more comparable assessment of our financial results from period to period. We define adjusted net income as consolidated net income before (i) income tax expense, (ii) inventory impairment, if applicable (iii) restructuring costs, if applicable, (iv) loss on debt extinguishment, if applicable, (v) purchase price accounting for acquired work in process inventory, if applicable, and (vi) impairment on other investments, if applicable, less adjusted income tax expense, calculated using our estimated annual effective tax rate after discrete items for the applicable period. Adjusted EPS is calculated by dividing adjusted net income by weighted average common shares – diluted.

Adjusted Net Income and Adjusted Diluted Earnings Per Common Share

(in thousands, except share and per share amounts)










Three Months Ended March 31,



2024


2023

Numerator







Net income


$

64,332


$

33,311

Denominator







Weighted average common shares outstanding – basic



31,808,959



31,914,414

Dilutive effect of stock-based compensation awards



429,849



202,668

Weighted average common shares outstanding – diluted



32,238,808



32,117,082

Earnings per share:







Basic


$

2.02


$

1.04

Diluted


$

2.00


$

1.04








Adjusted earnings per share







Numerator







Net income


$

64,332


$

33,311

Income tax expense



19,988



10,698

Income before income tax expense



84,320



44,009

Inventory impairment





Impairment on other investment



7,722



Purchase price accounting for acquired work in process inventory



1,581



Adjusted income before income tax expense



93,623



44,009

Adjusted income tax expense(1)



(22,193)



(10,698)

Adjusted net income


$

71,430


$

33,311








Denominator – Diluted



32,238,808



32,117,082








Adjusted diluted earnings per share


$

2.22


$

1.04



(1)

The tax rates used in calculating adjusted net income for the three months ended March 31, 2024 and 2023 was 23.7% and 24.3%, respectively, which are reflective of the Company’s GAAP tax rates for the applicable periods.

 

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

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

Adjusted Homebuilding Gross Margin

(in thousands)
















Three Months Ended March 31,



2024


%


2023


%














Home sales revenues


$

922,402


100.0

%


$

735,600


100.0

%

Cost of home sales revenues



(725,570)


(78.7)

%



(601,385)


(81.8)

%

Inventory impairment




%




%

Homebuilding gross margin



196,832


21.3

%



134,215


18.2

%

Add: Inventory impairment




%




%

Add: Interest in cost of home sales revenues



12,033


1.3

%



9,807


1.3

%

Adjusted homebuilding gross margin excluding interest and inventory impairment


$

208,865


22.6

%


$

144,022


19.6

%

Add: Purchase price accounting for acquired work in process inventory



1,581


0.2

%




%

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


$

210,446


22.8

%


$

144,022


19.6

%














 

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

EBITDA and Adjusted EBITDA 

The following table presents EBITDA and Adjusted EBITDA for the three months ended March 31, 2024 and 2023. EBITDA and adjusted EBITDA are non-GAAP financial measures we use as a supplemental measure in evaluating operating performance. We define EBITDA as net income before (i) income tax expense, (ii) interest in cost of home sales revenues, (iii) other interest expense (income), and (iv) depreciation and amortization expense. We define adjusted EBITDA as EBITDA before loss on debt extinguishment (if applicable), inventory impairment (if applicable), purchase price accounting for acquired work in process inventory (if applicable), and impairment on other investments (if applicable). We believe EBITDA and adjusted EBITDA provide an indicator of general economic performance that is not affected by fluctuations in interest rates or effective tax rates, levels of depreciation or amortization, and items considered to be non-recurring. Accordingly, our management believes that these measurements are useful for comparing general operating performance from period to period. Neither EBITDA or adjusted EBITDA should be considered in addition to, and not as a substitute for, consolidated net income in accordance with GAAP as a measure of performance. Our presentation of Adjusted EBITDA should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. Each of our EBITDA and adjusted EBITDA is limited as an analytical tool, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.

(in thousands)














Three Months Ended March 31,



2024


2023


% Change

Net income


$

64,332


$

33,311



93.1

%

Income tax expense



19,988



10,698



86.8

%

Interest in cost of home sales revenues



12,033



9,807



22.7

%

Interest expense (income)



(1,515)



(2,364)



(35.9)

%

Depreciation and amortization expense



5,475



3,292



66.3

%

EBITDA



100,313



54,744



83.2

%

Inventory impairment







NM


Impairment on other investment



7,722





NM


Purchase price accounting for acquired work in process inventory



1,581





NM


Adjusted EBITDA


$

109,616


$

54,744



100.2

%


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
[email protected]

Category:
Earnings

SOURCE Century Communities, Inc.

Originally published at https://www.prnewswire.com/news-releases/century-communities-reports-increased-first-quarter-2024-results-302126522.html
Images courtesy of https://pixabay.com

- Part of VUGA -marketing agency

latest articles

gossip tv free

explore more

free fashion tv