Century Communities Reports Fourth Quarter and Full Year 2023 Results
- None.
- None.
Insights
The reported net income growth of 15% year-over-year for Century Communities in the fourth quarter, coupled with the increased book value per share to $75.12, signifies robust financial health and operational efficiency. The 21st consecutive year of profitability demonstrates a consistent track record, which is a positive signal for investors assessing company stability and management effectiveness. The decrease in net homebuilding debt to net capital ratio to 22.4% indicates prudent financial management, reducing leverage and potentially lowering the cost of capital, which can lead to increased shareholder value.
However, the homebuilding gross margin, while healthy at over 21%, should be monitored against industry averages and cost inflation pressures. The record number of home deliveries indicates strong demand and effective supply chain management in a challenging market, but it is essential to consider the broader economic context, such as interest rate trends and housing market dynamics, which could affect future demand.
The record deliveries and revenue growth reported by Century Communities reflect a significant demand for new homes, which can be attributed to demographic trends and possibly a shortage of existing home inventory in certain markets. The increase in net new home contracts suggests a strong order book and potential revenue stream for the upcoming periods. However, it is important to analyze regional market conditions, as the housing market can vary greatly by location.
Understanding consumer preferences and the competitive landscape is crucial. The company's ability to improve cycle times—how quickly they can construct and deliver homes—is a competitive advantage that can lead to increased market share. Nevertheless, the long-term sustainability of this growth will depend on the company's adaptability to changing market conditions and potential economic downturns that could impact the real estate sector.
The economic implications of Century Communities' performance are multifaceted. On one hand, the company's record deliveries and revenue growth contribute positively to GDP and reflect a strong housing sector, which is a key economic indicator. On the other hand, the housing market is sensitive to interest rate changes and with the Federal Reserve's monetary policy focusing on inflation control, there could be headwinds for the sector in terms of affordability and mortgage rates.
Moreover, the company's ability to maintain margins in a period of potential input cost inflation is commendable, but this must be balanced against the risk of a cooling housing market. Investors and stakeholders should consider the cyclical nature of the real estate market and diversify their exposure accordingly. The company's financial results provide a snapshot of current performance, but economic forecasts and policy changes will be critical in shaping the long-term outlook for the housing industry.
- Full Year Deliveries of 9,568 Homes and Revenues of
- Fourth Quarter Net Income Increased
- Net Homebuilding Debt to Net Capital of
- Book Value per Share Increased to a Company Record
- 21st Consecutive Year of Profitability -
Fourth Quarter 2023 Highlights
- Net income of
$91.3 million $2.83 - Adjusted net income of
$94.5 million $2.93 - 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 $8.05 - Adjusted net income of
$260.6 million $8.09 - 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
Rob Francescon, Co-Chief Executive Officer and President, said, "Our net new home contracts of 2,340 in the fourth quarter 2023 increased
Fourth Quarter 2023 Results
Net income for the fourth quarter 2023 was
Total revenues were
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
Adjusted homebuilding gross margin percentage, excluding interest and inventory impairment, was
Financial services revenues and pre-tax income were
Our book value per share increased to a record
Full Year 2023 Results
Net income for the full year 2023 was
Total revenues were
Net new home contracts totaled 8,828 for the full year 2023.
Adjusted homebuilding gross margin percentage, excluding interest and inventory impairment, was
Financial services revenues and pre-tax income were
Balance Sheet and Liquidity
The Company ended the quarter with a strong financial position, including
During the fourth quarter, the Company maintained its quarterly cash dividend of
As of December 31, 2023, homebuilding debt to capital decreased to
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
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
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," "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, | — | — | ||||
Common stock, | 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 | % | |||||||||||
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 | Homes | Average Sales | Homes | Average Sales | |||||||||||
West | 395 | $ | 585.1 | 391 | $ | 673.0 | 1.0 | % | (13.1) | % | ||||||
Mountain | 567 | $ | 495.2 | 535 | $ | 549.5 | 6.0 | % | (9.9) | % | ||||||
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 | Homes | Average Sales | Homes | Average Sales | |||||||||||
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) | % | ||||||
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 | % | |||||
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 | Homes | Dollar Value | Average Sales | Homes | Dollar Value | Average Sales | |||||||||||||||||
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 | % | |||||||||||
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 | % | |||||||||||||||
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 |
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 |
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 | $ | 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 | $ | 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) | % | ||||||||
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) | ||||||
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
View original content to download multimedia:https://www.prnewswire.com/news-releases/century-communities-reports-fourth-quarter-and-full-year-2023-results-302049838.html
SOURCE Century Communities, Inc.
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