Century Communities Reports First Quarter 2025 Results
Century Communities (NYSE: CCS) reported its Q1 2025 financial results with total revenues of $903.2 million. The company delivered 2,284 homes and secured 2,692 net new home contracts. Net income reached $39.4 million ($1.26 per diluted share), while adjusted net income was $42.2 million ($1.36 per diluted share).
The company's community count increased 26% year-over-year to 318, with a homebuilding gross margin of 19.9%. The balance sheet showed $2.6 billion in stockholders' equity and $788 million in liquidity. During Q1, CCS repurchased 753,337 shares for $55.6 million and increased its quarterly dividend to $0.29 per share.
Due to economic uncertainty, interest rate volatility, and declining consumer confidence, Century Communities revised its 2025 guidance, now expecting 10,400-11,000 home deliveries and home sales revenues of $4.0-4.2 billion.
Century Communities (NYSE: CCS) ha riportato i risultati finanziari del primo trimestre 2025 con ricavi totali pari a 903,2 milioni di dollari. L'azienda ha consegnato 2.284 abitazioni e assicurato 2.692 nuovi contratti netti per case. L'utile netto ha raggiunto 39,4 milioni di dollari (1,26 dollari per azione diluita), mentre l'utile netto rettificato è stato di 42,2 milioni di dollari (1,36 dollari per azione diluita).
Il numero di comunità gestite dall'azienda è aumentato del 26% su base annua, arrivando a 318, con un margine lordo nella costruzione di case del 19,9%. Lo stato patrimoniale ha mostrato un patrimonio netto di 2,6 miliardi di dollari e una liquidità di 788 milioni di dollari. Nel primo trimestre, CCS ha riacquistato 753.337 azioni per 55,6 milioni di dollari e ha aumentato il dividendo trimestrale a 0,29 dollari per azione.
A causa dell'incertezza economica, della volatilità dei tassi di interesse e del calo della fiducia dei consumatori, Century Communities ha rivisto le previsioni per il 2025, prevedendo ora tra 10.400 e 11.000 consegne di abitazioni e ricavi dalle vendite di case compresi tra 4,0 e 4,2 miliardi di dollari.
Century Communities (NYSE: CCS) informó sus resultados financieros del primer trimestre de 2025 con ingresos totales de 903,2 millones de dólares. La compañía entregó 2,284 viviendas y aseguró 2,692 nuevos contratos netos de casas. El ingreso neto alcanzó 39,4 millones de dólares (1,26 dólares por acción diluida), mientras que el ingreso neto ajustado fue de 42,2 millones de dólares (1,36 dólares por acción diluida).
El número de comunidades de la empresa aumentó un 26% interanual hasta 318, con un margen bruto en la construcción de viviendas del 19,9%. El balance mostró un patrimonio neto de 2,6 mil millones de dólares y una liquidez de 788 millones de dólares. Durante el primer trimestre, CCS recompró 753,337 acciones por 55,6 millones de dólares y aumentó su dividendo trimestral a 0,29 dólares por acción.
Debido a la incertidumbre económica, la volatilidad de las tasas de interés y la disminución de la confianza del consumidor, Century Communities revisó sus previsiones para 2025, esperando ahora entre 10,400 y 11,000 entregas de viviendas y unos ingresos por ventas de casas de entre 4,0 y 4,2 mil millones de dólares.
Century Communities (NYSE: CCS)는 2025년 1분기 재무 결과를 발표하며 총 매출액이 9억 3,200만 달러에 달했다고 밝혔습니다. 회사는 2,284채의 주택을 인도했으며, 2,692건의 순 신규 주택 계약을 확보했습니다. 순이익은 3,940만 달러(희석 주당 1.26달러)에 달했으며, 조정 순이익은 4,220만 달러(희석 주당 1.36달러)였습니다.
회사의 커뮤니티 수는 전년 대비 26% 증가한 318개로, 주택 건설 총이익률은 19.9%를 기록했습니다. 대차대조표에는 26억 달러의 주주자본과 7억 8,800만 달러의 유동성이 나타났습니다. 1분기 동안 CCS는 75만 3,337주를 5,560만 달러에 재매입했으며, 분기 배당금을 주당 0.29달러로 인상했습니다.
경제 불확실성, 금리 변동성, 소비자 신뢰 하락으로 인해 Century Communities는 2025년 가이던스를 수정하여, 주택 인도 건수를 10,400~11,000채, 주택 판매 수익을 40억~42억 달러로 예상하고 있습니다.
Century Communities (NYSE : CCS) a publié ses résultats financiers du premier trimestre 2025 avec un chiffre d'affaires total de 903,2 millions de dollars. L'entreprise a livré 2 284 maisons et obtenu 2 692 nouveaux contrats nets pour des maisons. Le bénéfice net a atteint 39,4 millions de dollars (1,26 dollar par action diluée), tandis que le bénéfice net ajusté s'est élevé à 42,2 millions de dollars (1,36 dollar par action diluée).
Le nombre de communautés de l'entreprise a augmenté de 26 % en glissement annuel pour atteindre 318, avec une marge brute dans la construction de maisons de 19,9 %. Le bilan affichait 2,6 milliards de dollars en capitaux propres et 788 millions de dollars de liquidités. Au cours du premier trimestre, CCS a racheté 753 337 actions pour 55,6 millions de dollars et a augmenté son dividende trimestriel à 0,29 dollar par action.
En raison de l'incertitude économique, de la volatilité des taux d'intérêt et du recul de la confiance des consommateurs, Century Communities a révisé ses prévisions pour 2025, prévoyant désormais entre 10 400 et 11 000 livraisons de maisons et des revenus provenant des ventes de maisons compris entre 4,0 et 4,2 milliards de dollars.
Century Communities (NYSE: CCS) meldete seine Finanzergebnisse für das erste Quartal 2025 mit einem Gesamtumsatz von 903,2 Millionen US-Dollar. Das Unternehmen lieferte 2.284 Häuser aus und sicherte sich 2.692 netto neue Hausverträge. Der Nettogewinn erreichte 39,4 Millionen US-Dollar (1,26 US-Dollar je verwässerter Aktie), während der bereinigte Nettogewinn 42,2 Millionen US-Dollar (1,36 US-Dollar je verwässerter Aktie) betrug.
Die Anzahl der Gemeinden des Unternehmens stieg im Jahresvergleich um 26 % auf 318, mit einer Bruttomarge im Hausbau von 19,9 %. Die Bilanz wies ein Eigenkapital von 2,6 Milliarden US-Dollar und eine Liquidität von 788 Millionen US-Dollar aus. Im ersten Quartal kaufte CCS 753.337 Aktien für 55,6 Millionen US-Dollar zurück und erhöhte die Quartalsdividende auf 0,29 US-Dollar je Aktie.
Aufgrund wirtschaftlicher Unsicherheiten, Zinsschwankungen und sinkendem Verbrauchervertrauen hat Century Communities seine Prognose für 2025 angepasst und erwartet nun 10.400 bis 11.000 Hauslieferungen sowie Umsatzerlöse aus Hausverkäufen von 4,0 bis 4,2 Milliarden US-Dollar.
- Community count increased 26% YoY to 318
- Increased quarterly dividend by 12% to $0.29 per share
- Strong balance sheet with $2.6B stockholders' equity
- Book value per share increased 11% YoY to $84.41
- Credit facility capacity increased to $1.0B from $900M
- Slower than typical spring selling season due to market headwinds
- Reduced 2025 home delivery guidance
- Homebuilding debt to capital increased to 32.4% from 30.3%
- Net homebuilding debt to net capital rose to 30.1% from 27.4%
- Declining consumer confidence affecting order activity
Insights
Century Communities delivered solid Q1 results but reduced full-year guidance amid housing market headwinds, indicating near-term challenges despite operational strength.
Century Communities reported
The
The balance sheet metrics remain favorable with
Management's decision to increase the quarterly dividend by
The reduced full-year 2025 guidance—now 10,400-11,000 home deliveries and
Century's reduced guidance reflects broader housing market challenges where high rates and economic uncertainty are dampening demand despite structural housing shortages.
Century Communities' first quarter performance illustrates the current dichotomy in the housing market: operational execution remains solid with
The company's reduced delivery guidance suggests a more prolonged impact of elevated mortgage rates than previously expected. With 2,692 net new contracts against 2,284 deliveries in Q1, their sales pace remained positive, but management's comments about a "slower than typical spring selling season" indicate deteriorating market conditions as the quarter progressed.
Century's strategic focus on "balancing pace with price" reflects the industry-wide challenge of maintaining margins while stimulating sufficient sales velocity. Their relatively modest sequential margin decline of
The increased community count represents a substantial investment in future growth capacity, but the timing of this expansion coinciding with market headwinds may pressure near-term returns on capital. However, with
The backlog of 1,258 homes valued at
- Deliveries of 2,284 Homes Generating
- Net New Home Contracts of 2,692 -
- Net Income of
- Adjusted Net Income of
- Community Count Increased
First Quarter 2025 Highlights
- Net income of
$39.4 million $1.26 - Adjusted net income of
$42.2 million $1.36 - Pre-tax income of
$52.5 million - Total revenues of
$903.2 million - Community count of 318
- Deliveries of 2,284 homes
- Net new home contracts of 2,692
- Homebuilding gross margin of
19.9% - Adjusted homebuilding gross margin of
21.6% - Increased capacity of senior unsecured credit facility to
$1.0 billion
"Over the past few months, we have seen an increase in economic uncertainty, interest rate volatility and decline in consumer confidence, which have contributed to a slower than typical spring selling season," said Dale Francescon, Executive Chairman. "During the quarter, we focused on balancing pace with price and managing our costs. Despite the market headwinds, we recorded 2,692 net new home contracts, delivered 2,284 homes and generated a homebuilding gross margin of
Rob Francescon, Chief Executive Officer and President, said, "Our community count grew by
First Quarter 2025 Results
Net income for the first quarter 2025 was
Total revenues were
Net new home contracts in the first quarter 2025 were 2,692, and at the end of the first quarter 2025, the Company had 1,258 homes in backlog, representing
Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was
Financial services revenues and pre-tax income were
Balance Sheet and Liquidity
The Company ended the first quarter 2025 with a strong financial position, including
Our book value per share was
During the first quarter, consistent with our disciplined capital allocation approach to enhance the long-term value of the Company and return capital to our shareholders, the quarterly cash dividend was increased by
As of March 31, 2025, homebuilding debt to capital equaled
Full Year 2025 Outlook
Scott Dixon, Chief Financial Officer of the Company, commented, "With the ongoing economic uncertainty, interest rate volatility, and declining consumer confidence impacting our order activity, we are reducing our full year 2025 home delivery guidance to be in the range of 10,400 to 11,000 homes and our home sales revenues to be in the range of
Webcast and Conference Call
The Company will host a webcast and conference call on Wednesday, April 23, 2025, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's first quarter 2025 results, provide commentary, and conduct a question-and-answer session. To participate in the call, please dial 800-549-8228 (domestic) or 646-564-2877 (international) and enter the conference ID 14883. The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through April 30, 2025, by dialing 888-660-6264 (domestic) or 646-517-3975 (international) and entering conference ID 14883. 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 one of the highest-ranked homebuilders on Newsweek's list of America's Most Trustworthy Companies 2025—consecutively awarded for a third 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 17 states and over 45 markets across the
Non-GAAP Financial Measures
In addition to the Company's operating results presented in accordance with
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," "should," "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 2025. 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 tariffs and increased costs, immigration reform, 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 and other resources; home incentive levels; future impairment and restructuring charges; 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, | ||||||
2025 | 2024 | |||||
Revenues | ||||||
Homebuilding Revenues | ||||||
Home sales revenues | $ | 883,736 | $ | 922,402 | ||
Land sales and other revenues | 962 | 1,216 | ||||
Total homebuilding revenues | 884,698 | 923,618 | ||||
Financial services revenues | 18,534 | 24,925 | ||||
Total revenues | 903,232 | 948,543 | ||||
Homebuilding Cost of Revenues | ||||||
Cost of home sales revenues | (707,504) | (725,570) | ||||
Cost of land sales and other revenues | (827) | (37) | ||||
Total homebuilding cost of revenues | (708,331) | (725,607) | ||||
Financial services costs | (16,174) | (14,877) | ||||
Selling, general, and administrative | (120,760) | (114,109) | ||||
Inventory impairment | (411) | — | ||||
Other expense | (5,038) | (9,630) | ||||
Income before income tax expense | 52,518 | 84,320 | ||||
Income tax expense | (13,134) | (19,988) | ||||
Net income | $ | 39,384 | $ | 64,332 | ||
Earnings per share: | ||||||
Basic | $ | 1.28 | $ | 2.02 | ||
Diluted | $ | 1.26 | $ | 2.00 | ||
Weighted average common shares outstanding: | ||||||
Basic | 30,801,046 | 31,808,959 | ||||
Diluted | 31,145,867 | 32,238,808 | ||||
Century Communities, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts) | ||||||
March 31, | December 31, | |||||
2025 | 2024 | |||||
Assets | (unaudited) | (audited) | ||||
Cash and cash equivalents | $ | 100,336 | $ | 149,998 | ||
Cash held in escrow | 24,187 | 3,004 | ||||
Accounts receivable | 43,800 | 50,318 | ||||
Inventories | 3,473,356 | 3,454,337 | ||||
Mortgage loans held for sale | 207,385 | 236,926 | ||||
Prepaid expenses and other assets | 557,562 | 419,384 | ||||
Property and equipment, net | 86,618 | 155,176 | ||||
Deferred tax assets, net | 21,925 | 22,220 | ||||
Goodwill | 41,109 | 41,109 | ||||
Total assets | $ | 4,556,278 | $ | 4,532,472 | ||
Liabilities and stockholders' equity | ||||||
Liabilities: | ||||||
Accounts payable | $ | 134,256 | $ | 133,086 | ||
Accrued expenses and other liabilities | 286,086 | 302,317 | ||||
Notes payable | 1,116,159 | 1,107,909 | ||||
Revolving line of credit | 237,000 | 135,500 | ||||
Mortgage repurchase facilities | 204,274 | 232,804 | ||||
Total liabilities | 1,977,775 | 1,911,616 | ||||
Stockholders' equity: | ||||||
Preferred stock, | — | — | ||||
Common stock, | 305 | 310 | ||||
Additional paid-in capital | 454,265 | 526,959 | ||||
Retained earnings | 2,123,933 | 2,093,587 | ||||
Total stockholders' equity | 2,578,503 | 2,620,856 | ||||
Total liabilities and stockholders' equity | $ | 4,556,278 | $ | 4,532,472 | ||
Century Communities, Inc. Homebuilding Operational Data (Unaudited) | |||||||||
Net New Home Contracts | |||||||||
Three Months Ended March 31, | |||||||||
2025 | 2024 | % Change | |||||||
West | 392 | 440 | (10.9) | % | |||||
Mountain | 462 | 611 | (24.4) | % | |||||
499 | 514 | (2.9) | % | ||||||
Southeast | 387 | 450 | (14.0) | % | |||||
Century Complete | 952 | 851 | 11.9 | % | |||||
Total | 2,692 | 2,866 | (6.1) | % | |||||
Home Deliveries (dollars in thousands) | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||
2025 | 2024 | % Change | ||||||||||||||
Homes | Average Sales | Homes | Average Sales Price | Homes | Average Sales Price | |||||||||||
West | 303 | $ | 599.5 | 284 | $ | 606.5 | 6.7 | % | (1.2) | % | ||||||
Mountain | 429 | $ | 524.1 | 495 | $ | 513.4 | (13.3) | % | 2.1 | % | ||||||
457 | $ | 298.9 | 424 | $ | 309.4 | 7.8 | % | (3.4) | % | |||||||
Southeast | 303 | $ | 443.5 | 379 | $ | 426.1 | (20.1) | % | 4.1 | % | ||||||
Century Complete | 792 | $ | 260.4 | 776 | $ | 262.0 | 2.1 | % | (0.6) | % | ||||||
Total / Weighted Average | 2,284 | $ | 386.9 | 2,358 | $ | 391.2 | (3.1) | % | (1.1) | % | ||||||
Century Communities, Inc. Homebuilding Operational Data (Unaudited) | ||||||||||
Selling Communities | ||||||||||
As of March 31, | Increase/Decrease | |||||||||
2025 | 2024 | Amount | % Change | |||||||
West | 34 | 28 | 6 | 21.4 | % | |||||
Mountain | 48 | 46 | 2 | 4.3 | % | |||||
78 | 41 | 37 | 90.2 | % | ||||||
Southeast | 42 | 30 | 12 | 40.0 | % | |||||
Century Complete | 116 | 108 | 8 | 7.4 | % | |||||
Total | 318 | 253 | 65 | 25.7 | % | |||||
Backlog (dollars in thousands) | |||||||||||||||||||||||||
As of March 31, | |||||||||||||||||||||||||
2025 | 2024 | % Change | |||||||||||||||||||||||
Homes | Dollar Value | Average | Homes | Dollar Value | Average | Homes | Dollar Value | Average Sales Price | |||||||||||||||||
West | 248 | $ | 158,029 | $ | 637.2 | 262 | $ | 176,732 | $ | 674.5 | (5.3) | % | (10.6) | % | (5.5) | % | |||||||||
Mountain | 182 | 102,309 | $ | 562.1 | 279 | 161,477 | $ | 578.8 | (34.8) | % | (36.6) | % | (2.9) | % | |||||||||||
219 | 65,973 | $ | 301.2 | 258 | 78,396 | $ | 303.9 | (15.1) | % | (15.8) | % | (0.9) | % | ||||||||||||
Southeast | 191 | 87,755 | $ | 459.5 | 214 | 99,448 | $ | 464.7 | (10.7) | % | (11.8) | % | (1.1) | % | |||||||||||
Century Complete | 418 | 106,984 | $ | 255.9 | 577 | 151,154 | $ | 262.0 | (27.6) | % | (29.2) | % | (2.3) | % | |||||||||||
Total / Weighted Average | 1,258 | $ | 521,050 | $ | 414.2 | 1,590 | $ | 667,207 | $ | 419.6 | (20.9) | % | (21.9) | % | (1.3) | % | |||||||||
Lot Inventory | |||||||||||||||||||||||||||
As of March 31, | |||||||||||||||||||||||||||
2025 | 2024 | % Change | |||||||||||||||||||||||||
Owned | Controlled | Total | Owned | Controlled | Total | Owned | Controlled | Total | |||||||||||||||||||
West | 3,946 | 4,258 | 8,204 | 4,397 | 3,230 | 7,627 | (10.3) | % | 31.8 | % | 7.6 | % | |||||||||||||||
Mountain | 9,180 | 3,168 | 12,348 | 8,475 | 5,602 | 14,077 | 8.3 | % | (43.4) | % | (12.3) | % | |||||||||||||||
12,942 | 9,539 | 22,481 | 9,422 | 11,183 | 20,605 | 37.4 | % | (14.7) | % | 9.1 | % | ||||||||||||||||
Southeast | 5,174 | 11,435 | 16,609 | 5,461 | 10,370 | 15,831 | (5.3) | % | 10.3 | % | 4.9 | % | |||||||||||||||
Century Complete | 4,655 | 14,717 | 19,372 | 3,955 | 12,994 | 16,949 | 17.7 | % | 13.3 | % | 14.3 | % | |||||||||||||||
Total | 35,897 | 43,117 | 79,014 | 31,710 | 43,379 | 75,089 | 13.2 | % | (0.6) | % | 5.2 | % | |||||||||||||||
% of Total | 45.4 % | 54.6 % | 100.0 % | 42.2 % | 57.8 % | 100.0 % | |||||||||||||||||||||
Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Adjusted net income and adjusted diluted earnings per share ("Adjusted EPS") are non-GAAP financial measures that the Company believes are useful to management, investors and other users of its 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. The Company defines adjusted net income as consolidated net income before (i) income tax expense; (ii) inventory impairment; (iii) restructuring costs; (iv) impairment on other investment; (v) purchase price accounting for acquired work in process inventory; and (vi) loss on debt extinguishment; in each case, as applicable during a period, less adjusted income tax expense, calculated using the Company's 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 Share (in thousands, except share and per share amounts) | ||||||
Three Months Ended March 31, | ||||||
2025 | 2024 | |||||
Numerator | ||||||
Net income | $ | 39,384 | $ | 64,332 | ||
Denominator | ||||||
Weighted average common shares outstanding - basic | 30,801,046 | 31,808,959 | ||||
Dilutive effect of stock-based compensation awards | 344,821 | 429,849 | ||||
Weighted average common shares outstanding - diluted | 31,145,867 | 32,238,808 | ||||
Earnings per share: | ||||||
Basic | $ | 1.28 | $ | 2.02 | ||
Diluted | $ | 1.26 | $ | 2.00 | ||
Adjusted earnings per share | ||||||
Numerator | ||||||
Net income | $ | 39,384 | $ | 64,332 | ||
Income tax expense | 13,134 | 19,988 | ||||
Income before income tax expense | 52,518 | 84,320 | ||||
Inventory impairment | 411 | — | ||||
Restructuring costs | 1,505 | — | ||||
Impairment on other investment | — | 7,722 | ||||
Purchase price accounting for acquired work in process inventory | 1,892 | 1,581 | ||||
Adjusted income before income tax expense | 56,326 | 93,623 | ||||
Adjusted income tax expense(1) | (14,086) | (22,193) | ||||
Adjusted net income | $ | 42,240 | $ | 71,430 | ||
Denominator - Diluted | 31,145,867 | 32,238,808 | ||||
Adjusted diluted earnings per share | $ | 1.36 | $ | 2.22 | ||
(1) | The tax rates used in calculating adjusted net income for the three months ended March 31, 2025 and 2024 were |
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), is not a measurement 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 GAAP 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, | ||||||||||||
2025 | % | 2024 | % | |||||||||
Home sales revenues | $ | 883,736 | 100.0 | % | $ | 922,402 | 100.0 | % | ||||
Cost of home sales revenues | (707,504) | (80.1) | % | (725,570) | (78.7) | % | ||||||
Inventory impairment | (411) | (0.0) | % | — | — | % | ||||||
Homebuilding gross margin | 175,821 | 19.9 | % | 196,832 | 21.3 | % | ||||||
Add: Inventory impairment | 411 | 0.0 | % | — | — | % | ||||||
Add: Interest in cost of home sales revenues | 12,785 | 1.4 | % | 12,033 | 1.3 | % | ||||||
Add: Purchase price accounting for acquired work in process inventory | 1,892 | 0.2 | % | 1,581 | 0.2 | % | ||||||
Adjusted homebuilding gross margin excluding interest, inventory | $ | 190,909 | 21.6 | % | $ | 210,446 | 22.8 | % | ||||
Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
EBITDA and Adjusted EBITDA
EBITDA and adjusted EBITDA are non-GAAP financial measures the Company uses as supplemental measures in evaluating operating performance. The Company defines 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. The Company defines adjusted EBITDA as EBITDA before inventory impairment, restructuring costs, impairment on other investment, purchase price accounting for acquired work in process inventory and loss on debt extinguishment, in each case as applicable during a period. The Company believes 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, the Company's management believes that these measurements are useful for comparing general operating performance from period to period. Neither EBITDA nor 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. The presentation of adjusted EBITDA should not be construed as an indication that the Company's future results will be unaffected by unusual or non-recurring items. Each of EBITDA and adjusted EBITDA is limited as an analytical tool, and should not be considered in isolation or as a substitute for analysis of the Company's results of operations as reported under GAAP.
(in thousands) | ||||||||||
Three Months Ended March 31, | ||||||||||
2025 | 2024 | % Change | ||||||||
Net income | $ | 39,384 | $ | 64,332 | (38.8) | % | ||||
Income tax expense | 13,134 | 19,988 | (34.3) | % | ||||||
Interest in cost of home sales revenues | 12,785 | 12,033 | 6.2 | % | ||||||
Interest expense (income) | 798 | (1,515) | (152.7) | % | ||||||
Depreciation and amortization expense | 6,428 | 5,475 | 17.4 | % | ||||||
EBITDA | $ | 72,529 | $ | 100,313 | (27.7) | % | ||||
Inventory impairment | 411 | — | NM | |||||||
Restructuring costs | 1,505 | — | NM | |||||||
Impairment on other investment | — | 7,722 | NM | |||||||
Purchase price accounting for acquired work in process inventory | 1,892 | 1,581 | 19.7 | % | ||||||
Adjusted EBITDA | $ | 76,337 | $ | 109,616 | (30.4) | % | ||||
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 total debt minus outstanding borrowings under 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, | |||||
2025 | 2024 | |||||
Notes payable | $ | 1,116,159 | $ | 1,107,909 | ||
Revolving line of credit | 237,000 | 135,500 | ||||
Construction loan agreements | (118,078) | (102,436) | ||||
Total homebuilding debt | 1,235,081 | 1,140,973 | ||||
Total stockholders' equity | 2,578,503 | 2,620,856 | ||||
Total capital | $ | 3,813,584 | $ | 3,761,829 | ||
Homebuilding debt to capital | 32.4 % | 30.3 % | ||||
Total homebuilding debt | $ | 1,235,081 | $ | 1,140,973 | ||
Cash and cash equivalents | (100,336) | (149,998) | ||||
Cash held in escrow | (24,187) | (3,004) | ||||
Net homebuilding debt | 1,110,558 | 987,971 | ||||
Total stockholders' equity | 2,578,503 | 2,620,856 | ||||
Net capital | $ | 3,689,061 | $ | 3,608,827 | ||
Net homebuilding debt to net capital | 30.1 % | 27.4 % | ||||
Contact Information:
Tyler Langton, Senior Vice President of Investor Relations
303-268-8345
Investorrelations@CenturyCommunities.com
Category:
Earnings
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SOURCE Century Communities, Inc.
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