Century Communities Reports Record First Quarter 2021 Results
Century Communities, Inc. (CCS) reported remarkable financial results for Q1 2021, achieving a record net income of $101.7 million, up 289% year-over-year. Home sales revenue surged 67% to $959.3 million, driven by a 50% increase in home deliveries, totaling 2,797 units. The company’s backlog reached a record 4,097 homes valued at $1.6 billion, reflecting a 58% increase. Strong operational efficiencies improved gross margins to 21.1% and SG&A expenses decreased to 9.6% of revenues. With total liquidity of $1.2 billion and a net debt to net capital ratio of 19.9%, Century remains poised for growth.
- Net income increased by 289% to a record $101.7 million.
- Home sales revenue surged 67% to $959.3 million.
- Home deliveries rose by 50% to a first quarter record of 2,797 homes.
- Homes in backlog reached a record 4,097 with a value of $1.6 billion, a 58% increase.
- Pre-tax income grew by 284% to $131.0 million, achieving a 13.0% margin.
- EBITDA rose by 198% to a record $152.1 million.
- Net homebuilding debt to net capital improved to 19.9% from 46.6%.
- None.
Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its first quarter ended March 31, 2021.
First Quarter 2021 Highlights Compared to First Quarter 2020
-
Net income increased
289% to a Company record$101.7 million or$3.00 per diluted share -
Home sales revenues increased
67% to a Company record$959.3 million -
Home deliveries increased
50% to a first quarter record of 2,797 homes -
Net new home contracts increased
45% to a Company record 3,455 homes -
Homes in backlog improved
58% to a Company record 4,097 homes with a value of$1.6 billion -
Pre-tax income improved
284% to a Company record$131.0 million -
EBITDA increased
198% to a Company record$152.1 million -
Net homebuilding debt to net capital improved to
19.9% from46.6% -
Quarter end total liquidity of
$1.2 billion
Dale Francescon, Chairman and Co-Chief Executive Officer, stated, “Our first quarter reflects an outstanding start to the year in which we generated over
Rob Francescon, Co-Chief Executive Officer and President, said, “Our expanded margins and increased profitability validate the success of our long-term strategy as we build upon our solid foundation to fuel Century’s continued growth within this robust housing cycle. We ended the first quarter with our highest backlog ever of 4,097 homes valued at
First Quarter 2021 Results
Net income for the first quarter 2021 increased
Home sales revenues for the first quarter 2021 increased
Homebuilding gross margin percentage in the first quarter 2021 was
Net new home contracts in the first quarter 2021 increased
Financial services revenues increased to
Strengthened Balance Sheet and Liquidity
The Company ended the quarter with a strong financial position including
As of March 31, 2021, net homebuilding debt to net capital decreased to
Full Year 2021 Outlook
David Messenger, Chief Financial Officer, stated, “Due to improved sales, deliveries and home price appreciation throughout the first four months of the year, we are increasing our full year revenue guidance to be in the range of
Conference Call
The Company will host a webcast and conference call on Wednesday, April 28, 2021 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s first quarter 2021 results, discuss recent events and conduct a question-and-answer period. To participate in the call, please dial 877-451-6152 (domestic) or 201-389-0879 (international). The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through May 28, 2021, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13717683. A replay of the webcast will be available on the Company’s website.
About Century Communities:
Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder. Offering new homes under the Century Communities and Century Complete brands, 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 Colorado-based company operates in 17 states across the U.S., and offers title, insurance and lending services in select markets through its Parkway Title, IHL Insurance Agency, and Inspire Home Loan subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.
Non-GAAP Financial Measures
In addition to the Company’s operating results presented in accordance with generally accepted accounting principles (GAAP), this press release includes the following non-GAAP financial measures: Adjusted Net Income, Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS), Adjusted Homebuilding Gross Margin, Adjusted EBITDA, and Ratio of Homebuilding Net Debt to Net Capital. These non-GAAP financial measures should not be used as a substitute for the Company’s operating results presented in accordance with GAAP, and an analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Please refer to the reconciliation of each of the above referenced non-GAAP financial measures following the historical financial information presented in this press release.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “continue,” “will,” “may,” “potential,” “looking ahead,” “outlook,” and “project” 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 2021. 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, the potential impact of COVID-19 on the Company’s business, industry and broader economy, the ability to identify and acquire desirable land, availability of financing, the effect of interest rate and tax changes, reliance on contractors, 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. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) |
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Three Months Ended March 31, |
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2021 |
|
2020 |
||
Revenues |
|
|
|
|
|
|
Home sales revenues |
|
$ |
959,279 |
|
$ |
572,710 |
Land sales and other revenues |
|
|
15,670 |
|
|
20,104 |
Total homebuilding revenues |
|
|
974,949 |
|
|
592,814 |
Financial services revenues |
|
|
33,620 |
|
|
9,795 |
Total revenues |
|
|
1,008,569 |
|
|
602,609 |
Homebuilding Cost of Revenues |
|
|
|
|
|
|
Cost of home sales revenues |
|
|
(756,507) |
|
|
(470,526) |
Cost of land sales and other revenues |
|
|
(10,020) |
|
|
(14,167) |
Total homebuilding cost of revenues |
|
|
(766,527) |
|
|
(484,693) |
Financial services costs |
|
|
(18,301) |
|
|
(9,586) |
Selling, general, and administrative |
|
|
(92,151) |
|
|
(73,619) |
Inventory impairment and other |
|
|
— |
|
|
(781) |
Other income (expense) |
|
|
(541) |
|
|
158 |
Income before income tax expense |
|
|
131,049 |
|
|
34,088 |
Income tax expense |
|
|
(29,397) |
|
|
(7,962) |
Net income |
|
$ |
101,652 |
|
$ |
26,126 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
Basic |
|
$ |
3.03 |
|
$ |
0.79 |
Diluted |
|
$ |
3.00 |
|
$ |
0.78 |
Weighted average common shares outstanding: |
|
|
|
|
|
|
Basic |
|
|
33,563,903 |
|
|
33,207,928 |
Diluted |
|
|
33,884,275 |
|
|
33,476,444 |
Century Communities, Inc. Condensed Consolidated Balance Sheets (in thousands, except share amounts) |
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March 31, |
|
December 31, |
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|
|
2021 |
|
2020 |
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Assets |
|
(unaudited) |
|
(audited) |
||
Cash and cash equivalents |
|
$ |
502,906 |
|
$ |
394,001 |
Cash held in escrow |
|
|
54,220 |
|
|
23,149 |
Accounts receivable |
|
|
24,856 |
|
|
21,781 |
Inventories |
|
|
1,853,199 |
|
|
1,929,664 |
Mortgage loans held for sale |
|
|
303,414 |
|
|
282,639 |
Prepaid expenses and other assets |
|
|
139,300 |
|
|
122,630 |
Property and equipment, net |
|
|
28,181 |
|
|
28,384 |
Deferred tax assets, net |
|
|
15,213 |
|
|
12,450 |
Goodwill |
|
|
30,395 |
|
|
30,395 |
Total assets |
|
$ |
2,951,684 |
|
$ |
2,845,093 |
Liabilities and stockholders' equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
84,179 |
|
$ |
107,712 |
Accrued expenses and other liabilities |
|
|
311,508 |
|
|
302,751 |
Notes payable |
|
|
897,778 |
|
|
894,875 |
Revolving line of credit |
|
|
— |
|
|
— |
Mortgage repurchase facilities |
|
|
285,050 |
|
|
259,050 |
Total liabilities |
|
|
1,578,515 |
|
|
1,564,388 |
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
337 |
|
|
334 |
Additional paid-in capital |
|
|
688,009 |
|
|
697,200 |
Retained earnings |
|
|
684,823 |
|
|
583,171 |
Total stockholders' equity |
|
|
1,373,169 |
|
|
1,280,705 |
Total liabilities and stockholders' equity |
|
$ |
2,951,684 |
|
$ |
2,845,093 |
Century Communities, Inc. Homebuilding Operational Data (Unaudited) |
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Net New Home Contracts |
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Three Months Ended |
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