Century Communities Reports Increased Second Quarter 2024 Results
Century Communities (NYSE: CCS) reported a strong second quarter for 2024, with net income increasing by 63% year-over-year to $83.7 million or $2.61 per diluted share. Total revenues reached $1.0 billion, a 23% rise YoY, while home sales revenues also hit $1.0 billion, representing a 24% increase YoY. The company delivered 2,617 homes, a 17% rise, and recorded 2,780 net new home contracts, up by 20% YoY. Adjusted homebuilding gross margin improved to 24%, up by 300 basis points YoY. Century Communities increased its full-year guidance for home deliveries to 10,700-11,300 homes and home sales revenues to $4.2-4.4 billion. The company also announced appointing Scott Dixon as Chief Financial Officer and repurchased 464,980 shares for $37 million.
Century Communities (NYSE: CCS) ha riportato un forte secondo trimestre per il 2024, con un incremento del reddito netto del 63% rispetto all'anno precedente, raggiungendo i 83,7 milioni di dollari, ovvero 2,61 dollari per azione diluita. I ricavi totali hanno raggiunto 1,0 miliardi di dollari, con un aumento del 23% rispetto all'anno precedente, mentre i ricavi delle vendite di case hanno anch'essi toccato 1,0 miliardi di dollari, rappresentando un incremento del 24% anno su anno. L'azienda ha consegnato 2.617 abitazioni, con un aumento del 17%, e ha registrato 2.780 contratti per nuove abitazioni nette, in aumento del 20% rispetto all'anno precedente. Il margine lordo di costruzione abitativa rettificato è migliorato al 24%, con un aumento di 300 punti base rispetto all'anno precedente. Century Communities ha aumentato le sue previsioni annuali per le consegne di abitazioni a 10.700-11.300 abitazioni e per i ricavi delle vendite di case a 4,2-4,4 miliardi di dollari. L'azienda ha anche annunciato la nomina di Scott Dixon come Chief Financial Officer e ha riacquistato 464.980 azioni per 37 milioni di dollari.
Century Communities (NYSE: CCS) reportó un sólido segundo trimestre para 2024, con un aumento del ingreso neto del 63% interanual, alcanzando los 83,7 millones de dólares, o 2,61 dólares por acción diluida. Los ingresos totales alcanzaron 1,0 mil millones de dólares, un incremento del 23% con respecto al año anterior, mientras que los ingresos por ventas de viviendas también llegaron a 1,0 mil millones de dólares, representando un aumento del 24% interanual. La compañía entregó 2,617 viviendas, un aumento del 17%, y registró 2,780 contratos netos de nuevas viviendas, un incremento del 20% interanual. El margen bruto de construcción de viviendas ajustado mejoró al 24%, un aumento de 300 puntos base interanuales. Century Communities aumentó su guía anual de entregas de viviendas a 10,700-11,300 viviendas y los ingresos por ventas de viviendas a 4.2-4.4 mil millones de dólares. La empresa también anunció el nombramiento de Scott Dixon como Director Financiero y recompró 464,980 acciones por 37 millones de dólares.
센추리 커뮤니티 (NYSE: CCS)는 2024년 2분기에 강력한 실적을 발표하며, 순이익이 전년 대비 63% 증가한 8370만 달러, 즉 희석 주당 2.61달러에 도달했다고 보고했습니다. 총 수익은 10억 달러에 도달하며, 이는 전년 대비 23% 증가한 수치입니다. 주택 판매 수익 또한 10억 달러에 도달하여, 전년 대비 24% 증가했습니다. 회사는 2,617채의 주택을 인도했으며, 이는 17% 증가한 수치입니다. 신규 주택 계약의 순수익은 2,780건으로, 전년 대비 20% 증가했습니다. 조정된 주택 건축 총 이익률은 24%로 개선되어, 전년 대비 300 베이시스 포인트 증가했습니다. 센추리 커뮤니티는 연간 주택 인도 목표를 10,700-11,300채로, 그리고 주택 판매 수익을 42억-44억 달러로 상향 조정했습니다. 또한 스콧 딕슨을 최고 재무 책임자로 임명했으며, 464,980주를 3,700만 달러에 재구매했다고 발표했습니다.
Century Communities (NYSE: CCS) a déclaré un solide deuxième trimestre pour 2024, avec un revenu net en hausse de 63 % par rapport à l’année précédente, atteignant 83,7 millions de dollars, soit 2,61 dollars par action diluée. Les revenus totaux se sont élevés à 1,0 milliard de dollars, soit une hausse de 23 % par rapport à l'année précédente, tandis que les revenus des ventes de maisons ont également atteint 1,0 milliard de dollars, représentant une augmentation de 24 % par rapport à l'année précédente. L'entreprise a livré 2 617 maisons, une hausse de 17 %, et a enregistré 2 780 nouveaux contrats de maisons, soit une augmentation de 20 % par rapport à l'année précédente. La marge brute de construction de maisons ajustée a progressé à 24 %, en hausse de 300 points de base par rapport à l'année précédente. Century Communities a relevé ses prévisions annuelles de livraisons de maisons à 10 700-11 300 maisons et de revenus des ventes de maisons à 4,2-4,4 milliards de dollars. L'entreprise a également annoncé la nomination de Scott Dixon en tant que directeur financier et a racheté 464 980 actions pour 37 millions de dollars.
Century Communities (NYSE: CCS) hat im zweiten Quartal 2024 ein starkes Ergebnis erzielt, mit einem Anstieg des Nettogewinns um 63% im Vergleich zum Vorjahr auf 83,7 Millionen Dollar, was 2,61 Dollar pro verwässerter Aktie entspricht. Die Gesamterlöse erreichten 1,0 Milliarden Dollar, ein Anstieg von 23% im Vergleich zum Vorjahr, während die Erlöse aus dem Verkauf von Häusern ebenfalls 1,0 Milliarden Dollar erreichten, was einem Anstieg von 24% im Jahresvergleich entspricht. Das Unternehmen lieferte 2.617 Häuser aus, ein Anstieg um 17%, und verzeichnete 2.780 Netto-Neubauverträge, ein Anstieg von 20% im Jahresvergleich. Die angepasste Bruttomarge im Hausbau verbesserte sich auf 24%, ein Anstieg um 300 Basispunkte im Jahresvergleich. Century Communities hob seine Jahresprognose für Hauslieferungen auf 10.700-11.300 Häuser und die Erlöse aus Hausverkäufen auf 4,2-4,4 Milliarden Dollar an. Das Unternehmen gab auch die Ernennung von Scott Dixon zum Chief Financial Officer bekannt und repurchase 464.980 Aktien für 37 Millionen Dollar.
- Net income increased by 63% YoY to $83.7 million.
- Home sales revenues rose by 24% YoY to $1.0 billion.
- Deliveries increased by 17% YoY to 2,617 homes.
- Net new home contracts increased by 20% YoY to 2,780.
- Adjusted homebuilding gross margin improved to 24%.
- Full-year guidance for home deliveries increased to 10,700-11,300 homes.
- Full-year home sales revenue guidance increased to $4.2-4.4 billion.
- Repurchased 464,980 shares for $37 million.
- Homebuilding debt-to-capital ratio increased from 29.4% to 31.1%.
- Net homebuilding debt-to-net capital ratio increased from 24.9% to 28.1%.
Insights
Century Communities' Q2 2024 results demonstrate robust growth and financial strength in the homebuilding sector. The 63% year-over-year increase in net income to
The company's adjusted homebuilding gross margin of
Century's balance sheet remains solid with
The increased full-year 2024 guidance for home deliveries (10,700 to 11,300 homes) and home sales revenues (
Century Communities' Q2 results offer valuable insights into the current state of the U.S. housing market. The 20% year-over-year increase in net new home contracts indicates robust demand for affordable new homes, despite ongoing concerns about rising interest rates and inflation. This suggests that the underlying fundamentals of the housing market remain strong, particularly in the affordable segment.
The company's record community count of 266, a 14% year-over-year increase, demonstrates Century's ability to expand its footprint in a competitive market. Moreover, the 35% increase in total lot inventory to 78,097, with 58% being controlled lots, positions the company well for future growth and provides flexibility in managing land costs.
The average sales price of home deliveries at
However, it's important to monitor broader economic indicators such as interest rates, inflation and employment trends, as these factors could impact housing demand and affordability in the coming quarters. The company's ability to maintain its growth trajectory while navigating potential market headwinds will be key to its continued success.
- Increased 2024 Guidance for Home Sales Revenues and Deliveries -
- Second Quarter Net Income Increased
- Home Sales Revenues of
- Deliveries of 2,617 Homes Increased
- Net New Home Contracts of 2,780 Increased
- J. Scott Dixon Appointed as Chief Financial Officer -
Second Quarter 2024 Highlights
- Net income of
$83.7 million $2.61 63% YoY Increase - Pre-tax income of
$110.6 million 61% YoY Increase - EBITDA of
$129.1 million 61% YoY Increase - Total revenues of
$1.0 billion 23% YoY Increase - Community count of 266, a Company record and
14% YoY Increase - Deliveries of 2,617 homes, a
17% YoY Increase - Net new home contracts of 2,780, a
20% YoY Increase - Homebuilding gross margin of
22.5% - Adjusted homebuilding gross margin of
24.0%
"We continued to see solid demand for affordable new homes in the second quarter, with our net new contracts of 2,780 homes increasing by
Rob Francescon, Co-Chief Executive Officer and President, said, "Our total lot inventory of 78,097 increased by
Second Quarter 2024 Results
Net income for the second quarter 2024 was
Total revenues were
Net new home contracts in the second quarter 2024 were 2,780, and at the end of the second quarter 2024, the Company had 1,753 homes in backlog, representing
Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase accounting, was
Financial services revenues and pre-tax income were
Our book value per share increased to a record
Balance Sheet and Liquidity
The Company ended the second quarter 2024 with a strong financial position, including
During the second quarter, the Company maintained its quarterly cash dividend of
As of June 30, 2024, homebuilding debt to capital was
Stock Repurchase Program
The Company also announced that its Board of Directors approved a new stock repurchase program for up to an additional 4.5 million shares of Century common stock through open market, privately negotiated or other transactions from time to time and in such amounts as management deems appropriate.
Full Year 2024 Outlook
Scott Dixon, Chief Financial Officer of the Company, commented, "Given the strength that we have seen in our orders, deliveries and community count through the first half of the year, we have increased our full year 2024 guidance for home deliveries to be in the range of 10,700 to 11,300 homes and our home sales revenues to be in the range of
Scott Dixon Appointed as Chief Financial Officer
Century Communities also announced today that its Board of Directors on July 22nd appointed J. Scott Dixon as the Company's Chief Financial Officer. Mr. Dixon had been serving as the Company's Interim Chief Financial Officer since March of this year. Mr. Dixon has been with Century for over 10 years, and, prior to his role as Interim Chief Financial Officer, had been Century's Assistant Chief Financial Officer since May 2022. Prior to serving as Assistant Chief Financial Officer, Mr. Dixon served as Chief Accounting Officer of Century from November 2016 to May 2022, and prior to that position, he served as Century's Vice President of Accounting from November 2013 to November 2016. He was heavily involved in Century's initial public offering in 2014 and has been responsible for overseeing its SEC reporting, financial planning and analysis, and directly managing the finance team. Prior to joining Century, Mr. Dixon worked in Ernst & Young's audit practice, most recently as a Senior Manager in the audit and assurance practice, specializing in real estate. Mr. Dixon holds a Master of Science degree in Accounting from the University of
Webcast and Conference Call
The Company will host a webcast and conference call on Wednesday, July 24, 2024, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's second 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 July 31, 2024, by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering the passcode 1119095. A replay of the webcast will be available on the Company's website for at least one year.
About Century Communities
Century Communities, Inc. (NYSE: CCS) is one of the nation's largest homebuilders, an industry leader in online home sales, and the highest-ranked homebuilder on Newsweek's list of America's Most Trustworthy Companies 2024, consecutively awarded for a second year. 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. 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 June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenues | ||||||||||||
Homebuilding Revenues | ||||||||||||
Home sales revenues | $ | 1,017,414 | $ | 818,360 | $ | 1,939,816 | $ | 1,553,960 | ||||
Land sales and other revenues | 377 | 1,554 | 1,593 | 3,089 | ||||||||
Total homebuilding revenues | 1,017,791 | 819,914 | 1,941,409 | 1,557,049 | ||||||||
Financial services revenues | 21,659 | 24,277 | 46,585 | 40,132 | ||||||||
Total revenues | 1,039,450 | 844,191 | 1,987,994 | 1,597,181 | ||||||||
Homebuilding Cost of Revenues | ||||||||||||
Cost of home sales revenues | (787,556) | (656,834) | (1,513,127) | (1,258,219) | ||||||||
Cost of land sales and other revenues | — | (375) | (37) | (375) | ||||||||
Total homebuilding cost of revenues | (787,556) | (657,209) | (1,513,164) | (1,258,594) | ||||||||
Financial services costs | (15,996) | (11,770) | (30,873) | (22,551) | ||||||||
Selling, general, and administrative | (125,973) | (105,120) | (240,082) | (203,433) | ||||||||
Inventory impairment | (570) | — | (570) | — | ||||||||
Other income (expense) | 1,278 | (1,344) | (8,353) | 154 | ||||||||
Income before income tax expense | 110,633 | 68,748 | 194,952 | 112,757 | ||||||||
Income tax expense | (26,909) | (17,303) | (46,897) | (28,001) | ||||||||
Net income | $ | 83,724 | $ | 51,445 | $ | 148,055 | $ | 84,756 | ||||
Earnings per share: | ||||||||||||
Basic | $ | 2.65 | $ | 1.61 | $ | 4.67 | $ | 2.65 | ||||
Diluted | $ | 2.61 | $ | 1.60 | $ | 4.60 | $ | 2.63 | ||||
Weighted average common shares outstanding: | ||||||||||||
Basic | 31,648,130 | 32,025,186 | 31,728,544 | 31,970,106 | ||||||||
Diluted | 32,092,789 | 32,247,396 | 32,165,798 | 32,182,545 | ||||||||
Century Communities, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts) | ||||||
June 30, | December 31, | |||||
2024 | 2023 | |||||
Assets | (unaudited) | (audited) | ||||
Cash and cash equivalents | $ | 106,682 | $ | 226,150 | ||
Cash held in escrow | 44,823 | 101,845 | ||||
Accounts receivable | 78,260 | 76,213 | ||||
Inventories | 3,295,336 | 3,016,641 | ||||
Mortgage loans held for sale | 255,305 | 251,852 | ||||
Prepaid expenses and other assets | 404,315 | 350,193 | ||||
Property and equipment, net | 97,215 | 69,075 | ||||
Deferred tax assets, net | 17,426 | 16,998 | ||||
Goodwill | 32,082 | 30,395 | ||||
Total assets | $ | 4,331,444 | $ | 4,139,362 | ||
Liabilities and stockholders' equity | ||||||
Liabilities: | ||||||
Accounts payable | $ | 158,778 | $ | 147,265 | ||
Accrued expenses and other liabilities | 271,849 | 303,392 | ||||
Notes payable | 1,075,344 | 1,062,471 | ||||
Revolving line of credit | 111,000 | — | ||||
Mortgage repurchase facilities | 248,816 | 239,298 | ||||
Total liabilities | 1,865,787 | 1,752,426 | ||||
Stockholders' equity: | ||||||
Preferred stock, | — | — | ||||
Common stock, | 313 | 318 | ||||
Additional paid-in capital | 540,573 | 592,989 | ||||
Retained earnings | 1,924,771 | 1,793,629 | ||||
Total stockholders' equity | 2,465,657 | 2,386,936 | ||||
Total liabilities and stockholders' equity | $ | 4,331,444 | $ | 4,139,362 | ||
Century Communities, Inc. Homebuilding Operational Data (Unaudited) | |||||||||||||||||||
Net New Home Contracts | |||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||||
West | 376 | 237 | 58.6 | % | 816 | 580 | 40.7 | % | |||||||||||
Mountain | 552 | 446 | 23.8 | % | 1,163 | 779 | 49.3 | % | |||||||||||
520 | 400 | 30.0 | % | 1,034 | 875 | 18.2 | % | ||||||||||||
Southeast | 386 | 351 | 10.0 | % | 836 | 593 | 41.0 | % | |||||||||||
Century Complete | 946 | 883 | 7.1 | % | 1,797 | 1,512 | 18.8 | % | |||||||||||
Total | 2,780 | 2,317 | 20.0 | % | 5,646 | 4,339 | 30.1 | % | |||||||||||
Home Deliveries (dollars in thousands) | ||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||
Homes | Average Sales | Homes | Average Sales Price | Homes | Average Sales Price | |||||||||||
West | 325 | $ | 626.7 | 254 | $ | 548.2 | 28.0 | % | 14.3 | % | ||||||
Mountain | 486 | $ | 532.7 | 455 | $ | 503.7 | 6.8 | % | 5.8 | % | ||||||
485 | $ | 301.1 | 450 | $ | 281.2 | 7.8 | % | 7.1 | % | |||||||
Southeast | 349 | $ | 441.3 | 275 | $ | 426.5 | 26.9 | % | 3.5 | % | ||||||
Century Complete | 972 | $ | 262.2 | 801 | $ | 257.3 | 21.3 | % | 1.9 | % | ||||||
Total / Weighted Average | 2,617 | $ | 388.8 | 2,235 | $ | 366.2 | 17.1 | % | 6.2 | % | ||||||
Six Months Ended June 30, | ||||||||||||||||
2024 | 2023 | % Change | ||||||||||||||
Homes | Average Sales | Homes | Average Sales Price | Homes | Average Sales Price | |||||||||||
West | 609 | $ | 617.3 | 457 | $ | 586.7 | 33.3 | % | 5.2 | % | ||||||
Mountain | 981 | $ | 523.0 | 910 | $ | 521.7 | 7.8 | % | 0.2 | % | ||||||
909 | $ | 304.9 | 777 | $ | 278.0 | 17.0 | % | 9.7 | % | |||||||
Southeast | 728 | $ | 433.4 | 473 | $ | 431.7 | 53.9 | % | 0.4 | % | ||||||
Century Complete | 1,748 | $ | 262.1 | 1,530 | $ | 255.5 | 14.2 | % | 2.6 | % | ||||||
Total / Weighted Average | 4,975 | $ | 389.9 | 4,147 | $ | 374.7 | 20.0 | % | 4.1 | % | ||||||
Century Communities, Inc. Homebuilding Operational Data (Unaudited) | ||||||||||
Selling Communities | ||||||||||
As of June 30, | Increase | |||||||||
2024 | 2023 | Amount | % Change | |||||||
West | 26 | 23 | 3 | 13.0 | % | |||||
Mountain | 47 | 41 | 6 | 14.6 | % | |||||
45 | 38 | 7 | 18.4 | % | ||||||
Southeast | 34 | 29 | 5 | 17.2 | % | |||||
Century Complete | 114 | 102 | 12 | 11.8 | % | |||||
Total | 266 | 233 | 33 | 14.2 | % | |||||
Backlog (dollars in thousands) | |||||||||||||||||||||||||
As of June 30, | |||||||||||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||||||||||
Homes | Dollar Value | Average Sales | Homes | Dollar Value | Average Sales | Homes | Dollar Value | Average Sales | |||||||||||||||||
West | 313 | $ | 213,931 | $ | 683.5 | 203 | $ | 129,616 | $ | 638.5 | 54.2 | % | 65.0 | % | 7.0 | % | |||||||||
Mountain | 345 | 198,484 | $ | 575.3 | 310 | 149,369 | $ | 481.8 | 11.3 | % | 32.9 | % | 19.4 | % | |||||||||||
293 | 87,826 | $ | 299.7 | 253 | 78,360 | $ | 309.7 | 15.8 | % | 12.1 | % | (3.2) | % | ||||||||||||
Southeast | 250 | 107,965 | $ | 431.9 | 325 | 148,616 | $ | 457.3 | (23.1) | % | (27.4) | % | (5.6) | % | |||||||||||
Century Complete | 552 | 146,417 | $ | 265.2 | 911 | 244,118 | $ | 268.0 | (39.4) | % | (40.0) | % | (1.0) | % | |||||||||||
Total / Weighted Average | 1,753 | $ | 754,623 | $ | 430.5 | 2,002 | $ | 750,079 | $ | 374.7 | (12.4) | % | 0.6 | % | 14.9 | % | |||||||||
Lot Inventory | |||||||||||||||||||||||||||
As of June 30, | |||||||||||||||||||||||||||
2024 | 2023 | % Change | |||||||||||||||||||||||||
Owned | Controlled | Total | Owned | Controlled | Total | Owned | Controlled | Total | |||||||||||||||||||
West | 4,434 | 3,665 | 8,099 | 4,207 | 1,867 | 6,074 | 5.4 | % | 96.3 | % | 33.3 | % | |||||||||||||||
Mountain | 8,651 | 4,987 | 13,638 | 9,818 | 3,400 | 13,218 | (11.9) | % | 46.7 | % | 3.2 | % | |||||||||||||||
9,777 | 9,823 | 19,600 | 7,627 | 6,811 | 14,438 | 28.2 | % | 44.2 | % | 35.8 | % | ||||||||||||||||
Southeast | 5,461 | 12,446 | 17,907 | 5,769 | 4,079 | 9,848 | (5.3) | % | 205.1 | % | 81.8 | % | |||||||||||||||
Century Complete | 4,454 | 14,399 | 18,853 | 3,550 | 10,647 | 14,197 | 25.5 | % | 35.2 | % | 32.8 | % | |||||||||||||||
Total | 32,777 | 45,320 | 78,097 | 30,971 | 26,804 | 57,775 | 5.8 | % | 69.1 | % | 35.2 | % | |||||||||||||||
% of Total | 42.0 % | 58.0 % | 100.0 % | 53.6 % | 46.4 % | 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 June 30, | Six Months Ended June 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Numerator | ||||||||||||
Net income | $ | 83,724 | $ | 51,445 | $ | 148,055 | $ | 84,756 | ||||
Denominator | ||||||||||||
Weighted average common shares outstanding - basic | 31,648,130 | 32,025,186 | 31,728,544 | 31,970,106 | ||||||||
Dilutive effect of stock-based compensation awards | 444,659 | 222,210 | 437,254 | 212,439 | ||||||||
Weighted average common shares outstanding - diluted | 32,092,789 | 32,247,396 | 32,165,798 | 32,182,545 | ||||||||
Earnings per share: | ||||||||||||
Basic | $ | 2.65 | $ | 1.61 | $ | 4.67 | $ | 2.65 | ||||
Diluted | $ | 2.61 | $ | 1.60 | $ | 4.60 | $ | 2.63 | ||||
Adjusted earnings per share | ||||||||||||
Numerator | ||||||||||||
Net income | $ | 83,724 | $ | 51,445 | $ | 148,055 | $ | 84,756 | ||||
Income tax expense | 26,909 | 17,303 | 46,897 | 28,001 | ||||||||
Income before income tax expense | 110,633 | 68,748 | 194,952 | 112,757 | ||||||||
Inventory impairment | 570 | — | 570 | — | ||||||||
Impairment on other investment | — | — | 7,722 | — | ||||||||
Purchase price accounting for acquired work in process inventory | 973 | — | 2,553 | — | ||||||||
Adjusted income before income tax expense | 112,176 | 68,748 | 205,797 | 112,757 | ||||||||
Adjusted income tax expense(1) | (26,985) | (17,303) | (49,506) | (28,001) | ||||||||
Adjusted net income | $ | 85,191 | $ | 51,445 | $ | 156,291 | $ | 84,756 | ||||
Denominator - Diluted | 32,092,789 | 32,247,396 | 32,165,798 | 32,182,545 | ||||||||
Adjusted diluted earnings per share | $ | 2.65 | $ | 1.60 | $ | 4.86 | $ | 2.63 | ||||
(1) | The tax rates used in calculating adjusted net income for the three and six months ended June 30, 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) are not measurements of financial performance under GAAP; however, the Company's management believes that this information is meaningful as it isolates the impact that inventory impairment, indebtedness, and acquisitions have on homebuilding gross margin and permits the Company's stockholders to make better comparisons with the Company's competitors, who adjust gross margins in a similar fashion. This non-GAAP financial measure should not be used as a substitute for the Company's operating results. An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.
Adjusted Homebuilding Gross Margin |
(in thousands) |
Three Months Ended June 30, | ||||||||||||
2024 | % | 2023 | % | |||||||||
Home sales revenues | $ | 1,017,414 | 100.0 | % | $ | 818,360 | 100.0 | % | ||||
Cost of home sales revenues | (787,556) | (77.4) | % | (656,834) | (80.3) | % | ||||||
Inventory impairment | (570) | (0.1) | % | — | — | % | ||||||
Homebuilding gross margin | 229,288 | 22.5 | % | 161,526 | 19.7 | % | ||||||
Add: Inventory impairment | 570 | 0.1 | % | — | — | % | ||||||
Add: Interest in cost of home sales revenues | 13,592 | 1.3 | % | 10,270 | 1.3 | % | ||||||
Adjusted homebuilding gross margin excluding interest and inventory impairment | $ | 243,450 | 23.9 | % | $ | 171,796 | 21.0 | % | ||||
Add: Purchase price accounting for acquired work in process inventory | 973 | 0.1 | % | — | — | % | ||||||
Adjusted homebuilding gross margin excluding interest, inventory impairment | $ | 244,423 | 24.0 | % | $ | 171,796 | 21.0 | % | ||||
Six Months Ended June 30, | ||||||||||||
2024 | % | 2023 | % | |||||||||
Home sales revenues | $ | 1,939,816 | 100.0 | % | $ | 1,553,960 | 100.0 | % | ||||
Cost of home sales revenues | (1,513,127) | (78.0) | % | (1,258,219) | (81.0) | % | ||||||
Inventory impairment | (570) | (0.0) | % | — | — | % | ||||||
Homebuilding gross margin | 426,119 | 22.0 | % | 295,741 | 19.0 | % | ||||||
Add: Inventory impairment | 570 | 0.0 | % | — | — | % | ||||||
Add: Interest in cost of home sales revenues | 25,625 | 1.3 | % | 20,077 | 1.3 | % | ||||||
Adjusted homebuilding gross margin excluding interest and inventory impairment | $ | 452,314 | 23.3 | % | $ | 315,818 | 20.3 | % | ||||
Add: Purchase price accounting for acquired work in process inventory | 2,553 | 0.1 | % | — | — | % | ||||||
Adjusted homebuilding gross margin excluding interest, inventory impairment | $ | 454,867 | 23.4 | % | $ | 315,818 | 20.3 | % | ||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||||
Net income | $ | 83,724 | $ | 51,445 | 62.7 | % | $ | 148,055 | $ | 84,756 | 74.7 | % | ||||||||
Income tax expense | 26,909 | 17,303 | 55.5 | % | 46,897 | 28,001 | 67.5 | % | ||||||||||||
Interest in cost of home sales revenues | 13,592 | 10,270 | 32.3 | % | 25,625 | 20,077 | 27.6 | % | ||||||||||||
Interest income | (810) | (2,578) | (68.6) | % | (2,324) | (4,942) | (53.0) | % | ||||||||||||
Depreciation and amortization expense | 5,689 | 3,621 | 57.1 | % | 11,165 | 6,913 | 61.5 | % | ||||||||||||
EBITDA | 129,104 | 80,061 | 61.3 | % | 229,418 | 134,805 | 70.2 | % | ||||||||||||
Inventory impairment | 570 | — | NM | 570 | — | NM | ||||||||||||||
Impairment on other investment | — | — | NM | 7,722 | — | NM | ||||||||||||||
Purchase price accounting for acquired work in process inventory | 973 | — | NM | 2,553 | — | NM | ||||||||||||||
Adjusted EBITDA | $ | 130,647 | $ | 80,061 | 63.2 | % | $ | 240,263 | $ | 134,805 | 78.2 | % | ||||||||
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) |
June 30, | December 31, | |||||
2024 | 2023 | |||||
Notes payable | $ | 1,075,344 | $ | 1,062,471 | ||
Revolving line of credit | 111,000 | — | ||||
Construction loan agreements | (72,860) | (44,895) | ||||
Total homebuilding debt | 1,113,484 | 1,017,576 | ||||
Total stockholders' equity | 2,465,657 | 2,386,936 | ||||
Total capital | $ | 3,579,141 | $ | 3,404,512 | ||
Homebuilding debt to capital | 31.1 % | 29.9 % | ||||
Total homebuilding debt | $ | 1,113,484 | $ | 1,017,576 | ||
Cash and cash equivalents | (106,682) | (226,150) | ||||
Cash held in escrow | (44,823) | (101,845) | ||||
Net homebuilding debt | 961,979 | 689,581 | ||||
Total stockholders' equity | 2,465,657 | 2,386,936 | ||||
Net capital | $ | 3,427,636 | $ | 3,076,517 | ||
Net homebuilding debt to net capital | 28.1 % | 22.4 % | ||||
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-increased-second-quarter-2024-results-302205813.html
SOURCE Century Communities, Inc.
FAQ
What were Century Communities' second quarter 2024 earnings?
How did Century Communities' home sales revenues change in Q2 2024?
What is the updated full-year 2024 guidance for Century Communities (CCS)?
How many homes did Century Communities deliver in Q2 2024?
How many shares did Century Communities repurchase in Q2 2024?
Who was appointed as Century Communities' CFO in July 2024?
