- 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 -
-
21st 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
and outstanding at December 31, 2023 and December 31, 2022,
respectively
|
|
|
318
|
|
|
318
|
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
Price
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average Sales
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
Price
|
|
Homes
|
|
Average Sales
Price
|
|
Homes
|
|
Average Sales
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
31,
|
|
|
Increase/(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
Value
|
|
Average Sales
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average Sales
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
impairment
|
|
$
|
272,802
|
|
23.0
|
%
|
|
$
|
227,839
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
impairment
|
|
$
|
811,925
|
|
22.5
|
%
|
|
$
|
1,143,089
|
|
26.0
|
%
|
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)
|
%
|
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
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SOURCE Century Communities, Inc.