Century Communities Reports Record Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

Century Communities, Inc. (NYSE: CCS) reported strong financial results for Q4 2020, achieving a record net income of $91.8 million, a 72% increase year-over-year. Total home sales revenues rose 22% to $946.8 million, driven by a 14% increase in home deliveries. The backlog of homes grew 66% to 3,439 units valued at $1.3 billion. Full-year net income reached $206.2 million, showing a 83% increase from 2019. The company's financial position strengthened, with net homebuilding debt to net capital improving to 27.2%. Full-year 2021 guidance estimates deliveries between 10,500 and 11,500 homes.

Positive

• Record Q4 net income of $91.8 million, up 72% YoY.
• Home sales revenues rose 22% to $946.8 million.
• Record deliveries of 2,826 homes, a 14% increase.
• Backlog increased 66% to 3,439 homes valued at $1.3 billion.
• Net new home contracts surged 45% to 2,566 homes.
• Financial services pre-tax income significantly increased to $17.8 million.
• Improved liquidity with total liquidity of $1.1 billion.
• Reduced net homebuilding debt to net capital to 27.2%.

Negative

• None.

Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its fourth quarter and full year ended December 31, 2020.

Fourth Quarter 2020 Highlights Compared to Fourth Quarter 2019

• Net income increased 72% to a Company record $91.8 million or $2.72 per diluted share
• Home sales revenues increased 22% to a Company record $946.8 million
• Deliveries grew to a Company record 2,826 homes, a 14% increase
• Net new home contracts increased 45% to a fourth quarter record of 2,566 homes
• Homes in backlog improved 66% to a fourth quarter record 3,439 homes valued at $1.3 billion
• Pre-tax income improved 125% to a Company record $121.2 million
• EBITDA increased 87% to a Company record $144.7 million
• Net homebuilding debt to net capital improved to 27.2% from 45.2%
• Quarter end total liquidity of $1.1 billion

Dale Francescon, Co-Chief Executive Officer, stated, “Our exceptional performance in the fourth quarter concludes an impressive year, reflecting our ongoing momentum and scale benefits, as we capitalized on vigorous housing market demand trends and achieved fourth quarter and full year records in many categories including net new contracts, home deliveries and home sales revenues, along with the highest quarterly and full year net income in our history. As we continue to increase the penetration within our high-growth markets, we expect to generate further operational efficiencies from our national platform which, coupled with robust price appreciation and continued demand, will drive top-line growth, expanded margins and increased profitability.”

Rob Francescon, Co-Chief Executive Officer, said, “We are confident our positive trajectory will continue as not only did our fourth quarter net new contracts increase 45% over last year but we have seen our sales pace accelerate, with December up 54% and January increasing 77%. We are solidly positioned with a backlog of 3,439 sold homes, an increase of 66%, along with nearly 50,000 owned and controlled lots which will support further increases in deliveries, contracts and community count across our Century Communities and Century Complete brands. We’ve substantially strengthened our balance sheet, further improved our cash position, reduced our net debt-to-net-capital ratio to 27% and are well positioned to generate even higher returns to our shareholders.”

Fourth Quarter 2020 Results

Net income for the fourth quarter 2020 increased 72% to $91.8 million, or $2.72 per diluted share as compared to $53.4 million or $1.63 per diluted share for the prior year quarter.

Home sales revenues for the fourth quarter 2020 increased 22% to $946.8 million, compared to $775.7 million for the prior year quarter. The growth in home sales revenues was primarily due to a 14% increase in deliveries to 2,826 homes compared to 2,479 homes for the prior year quarter. Average sales price of home deliveries for the fourth quarter 2020 was $335,000, compared to $312,900 in the prior year quarter, primarily due to our successful efforts in increasing sales prices of our homes and a higher proportion of deliveries from our Century Communities brand. Across all our markets in the fourth quarter, we were successful in raising prices in order to offset the increased materials costs we experienced.

Adjusted homebuilding gross margin percentage, excluding interest, was 23.0% in the fourth quarter of 2020, an improvement of 200 basis points, compared to 21.0% in the prior year quarter and on a sequential basis, an improvement of 300 basis points from 20.0% in the third quarter. Homebuilding gross margin percentage in the fourth quarter 2020 was 20.8%, as compared to 18.2% in the prior year quarter and 17.5% in the third quarter 2020. SG&A as a percent of home sales revenues improved 80 basis points to 10.1%, compared to 10.9% in the prior year quarter. On a sequential basis, SG&A as a percent of homes revenues improved 120 basis points from 11.3% in the third quarter.

Net new home contracts in the fourth quarter 2020 increased 45% to 2,566 homes, compared to 1,775 homes in the prior year quarter. At the end of the fourth quarter 2020, the Company had 3,439 homes in backlog, representing $1.3 billion of backlog dollar value, increases of 66% and 103%, respectively.

Financial services revenues increased to $35.8 million compared to $14.5 million in the prior year quarter, and financial services pretax income increased to $17.8 million from $4.7 million.

Full Year 2020 Results

Net income for the full year 2020 was $206.2 million, or $6.13 per diluted share compared to $113.0 million, or $3.62 per diluted share in the prior year.

Home sales revenues for 2020 increased 22% to $3.0 billion, compared to $2.5 billion for 2019. The increase in home sales revenues was primarily due to home deliveries increasing 18% to 9,453 homes. Average selling price of homes delivered in 2020 was $320,200, compared to $310,200 in the prior year.

Adjusted homebuilding gross margin percentage, excluding interest, impairments and purchase price accounting, was 20.8% in 2020 compared to 20.3% in the prior year. Homebuilding gross margin percentage was 18.4%, compared to 17.7% in 2019. SG&A as a percent of home sales revenues decreased 90 basis points to 11.3% compared to 12.2% the prior year.

Net new home contracts in 2020 increased to 10,822 homes, an increase of 38%, compared to 7,861 homes in the prior year, primarily attributable to an increased absorption pace.

Financial services generated pre-tax income of $48.5 million in the full year 2020 as compared to $10.7 million in the prior year.

Strengthened Balance Sheet and Liquidity

The Company ended the quarter with a strong financial position including $1.3 billion of stockholders’ equity, $417 million of cash and $1.1 billion of total liquidity.

As of December 31, 2020, net homebuilding debt to net capital decreased to 27.2%, a reduction of 1,800 basis points from 45.2% in the prior year quarter and a sequential reduction of 570 basis points from 32.9% at the end of third quarter of 2020.

Full Year 2021 Outlook

David Messenger, Chief Financial Officer of the Company, commented, “Our recent performance demonstrates the resiliency of our business and proven ability to execute. We remain encouraged by the strength and health of the housing market and as such, are introducing full year guidance of deliveries in the range of 10,500 to 11,500 homes and homes sales revenues in the range of $3.3 billion to $3.8 billion.”

Conference Call

The Company will host a webcast and conference call on Thursday, February 4, 2021 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s fourth quarter and full year 2020 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 March 4, 2021, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13714670. 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, its intent to take certain actions to successfully navigate through the current COVID-19 crisis and the success of these actions on its future operating results. 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. Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts)
		Three months ended December 31,								Year ended December 31,
		2020				2019				2020				2019
Revenues
Home sales revenues		$	946,803			$	775,667			$	3,027,167			$	2,481,465
Land sales and other revenues			5,200				2,347				30,717				11,184
			952,003				778,014				3,057,884				2,492,649
Financial services revenue			35,775				14,528				103,308				43,262
Total revenues			987,778				792,542				3,161,192				2,535,911
Homebuilding Cost of Revenues
Cost of home sales revenues			(749,587	)			(632,722	)			(2,468,133	)			(2,040,241	)
Cost of land sales and other revenues			(3,332	)			(2,015	)			(21,929	)			(8,130	)
			(752,919	)			(634,737	)			(2,490,062	)			(2,048,371	)
Financial services costs			(17,956	)			(9,825	)			(54,797	)			(32,575	)
Selling, general, and administrative			(95,580	)			(84,538	)			(341,710	)			(301,525	)
Loss on debt extinguishment			—				—				—				(10,832	)
Inventory impairment and other			(481	)			(4,783	)			(2,172	)			(4,783	)
Other income (expense)			322				(4,691	)			(2,211	)			(5,190	)
Income before income tax expense			121,164				53,968				270,240				132,635
Income tax expense			(29,347	)			(610	)			(64,083	)			(19,641	)
Net income		$	91,817			$	53,358			$	206,157			$	112,994
Earnings per share:
Basic		$	2.75			$	1.65			$	6.19			$	3.66
Diluted		$	2.72			$	1.63			$	6.13			$	3.62
Weighted average common shares outstanding:
Basic			33,350,633				32,392,398				33,312,554				30,886,382
Diluted			33,806,462				32,807,678				33,610,098				31,186,952

Century Communities, Inc. Consolidated Balance Sheets (in thousands, except share amounts)
		December 31,			December 31,
		2020			2019
Assets
Cash and cash equivalents		$	394,001		$	55,436
Cash held in escrow			23,149			35,308
Accounts receivable			21,781			27,438
Inventories			1,929,664			1,995,549
Mortgage loans held for sale			282,639			185,246
Prepaid expenses and other assets			122,630			124,008
Property and equipment, net			28,384			35,998
Deferred tax assets, net			12,450			10,589
Goodwill			30,395			30,395
Total assets		$	2,845,093		$	2,499,967
Liabilities and stockholders' equity
Liabilities:
Accounts payable		$	107,712		$	84,794
Accrued expenses and other liabilities			302,751			213,975
Notes payable			894,875			896,704
Revolving line of credit			—			68,700
Mortgage repurchase facilities			259,050			174,095
Total liabilities			1,564,388			1,438,268
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding			—			—
Common stock, $0.01 par value, 100,000,000 shares authorized, 33,350,633 and 33,067,375 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively			334			331
Additional paid-in capital			697,200			684,354
Retained earnings			583,171			377,014
Total stockholders' equity			1,280,705			1,061,699
Total liabilities and stockholders' equity		$	2,845,093		$	2,499,967

Century Communities, Inc. Homebuilding Operational Data (Unaudited)
Net New Home Contracts
		Three Months Ended
		December 31,
		2020			2019			% Change
West		331			246			34.6	%
Mountain		648			347			86.7	%
Texas		313			264			18.6	%
Southeast		449			385			16.6	%
Century Complete		825			533			54.8	%
Total		2,566			1,775			44.6	%
		Year ended
		December 31,
		2020			2019			% Change
West		1,526			1,013			50.6	%
Mountain		2,389			1,637			45.9	%
Texas		1,448			997			45.2	%
Southeast		2,191			1,635			34.0	%
Century Complete		3,268			2,579			26.7	%
Total		10,822			7,861			37.7	%

Home Deliveries (dollars in thousands)
		Three months ended December 31,
		2020					2019					% Change
		Homes		Average Sales Price			Homes		Average Sales Price			Homes			Average Sales Price
West		380		$	517.4		346		$	492.4		9.8	%		5.1	%
Mountain		646			443.2		497			435.0		30.0	%		1.9	%
Texas		387			262.9		277			260.2		39.7	%		1.0	%
Southeast		599			356.4		556			345.8		7.7	%		3.1	%
Century Complete		814			182.7		803			155.3		1.4	%		17.6	%
Total / Weighted Average		2,826		$	335.0		2,479		$	312.9		14.0	%		7.1	%
		Year ended December 31,
		2020					2019					% Change
		Homes		Average Sales Price			Homes		Average Sales Price			Homes			Average Sales Price
West		1,242		$	545.7		1,029		$	519.3		20.7	%		5.1	%
Mountain		1,973		$	424.8		1,665		$	431.7		18.5	%		(1.6	)%
Texas		1,338		$	251.8		903		$	279.9		48.2	%		(10.0	)%
Southeast		1,903		$	353.1		1,592		$	344.3		19.5	%		2.6	%
Century Complete		2,997		$	167.6		2,811		$	152.0		6.6	%		10.3	%
Total / Weighted Average		9,453		$	320.2		8,000		$	310.2		18.2	%		3.2	%

Century Communities, Inc. Homebuilding Operational Data (Unaudited)
Selling Communities
Selling communities at period end		As of December 31,					Increase/(Decrease)
		2020		2019			Amount			% Change
West		17		15			2			13.3	%
Mountain		38		37			1			2.7	%
Texas		15		20			(5	)		(25.0	)%
Southeast		26		45			(19	)		(42.2	)%
Century Complete		102		95			7			7.4	%
Total		198		212			(14	)		(6.6	)%

Backlog (dollars in thousands)
		December 31,
		2020								2019								% Change
		Homes		Dollar Value			Average Sales Price			Homes		Dollar Value			Average Sales Price			Homes			Dollar Value			Average Sales Price
West		486		$	294,113		$	605.2		202		$	104,652		$	518.1		140.6	%		181.0	%		16.8	%
Mountain		789			365,328		$	463.0		373			159,248		$	426.9		111.5	%		129.4	%		8.5	%
Texas		385			134,023		$	348.1		275			72,906		$	265.1		40.0	%		83.8	%		31.3	%
Southeast		801			306,644		$	382.8		513			186,307		$	363.2		56.1	%		64.6	%		5.4	%
Century Complete		978			194,094		$	198.5		707			114,638		$	162.1		38.3	%		69.3	%		22.5	%
Total / Weighted Average		3,439		$	1,294,202		$	376.3		2,070		$	637,751		$	308.1		66.1	%		102.9	%		22.1	%

Lot Inventory
		December 31,
		2020						2019						% Change
		Owned		Controlled		Total		Owned		Controlled		Total		Owned			Controlled			Total
West		3,266		3,392		6,658		3,133		1,413		4,546		4.2	%		140.1	%		46.5	%
Mountain		7,951		5,910		13,861		4,771		7,949		12,720		66.7	%		(25.7	)%		9.0	%
Texas		3,035		5,873		8,908		3,326		2,278		5,604		(8.7	)%		157.8	%		59.0	%
Southeast		3,076		6,389		9,465		4,160		3,827		7,987		(26.1	)%		66.9	%		18.5	%
Century Complete		3,473		7,600		11,073		3,324		4,761		8,085		4.5	%		59.6	%		37.0	%
Total		20,801		29,164		49,965		18,714		20,228		38,942		11.2	%		44.2	%		28.3	%

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)
Adjusted Net Income and Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS) 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. Adjusted Diluted EPS is calculated by excluding the effect of loss on debt extinguishment, inventory impairment, restructuring costs and purchase price accounting for acquired work in process from the calculation of reported EPS.
Adjusted Net Income and Adjusted Diluted Earnings Per Common Share (in thousands, except share and per share amounts)
		Three Months Ended								Year ended
		December 31,								December 31,
		2020				2019				2020				2019
Numerator
Net income		$	91,817			$	53,358			$	206,157			$	112,994
Denominator
Weighted average common shares outstanding - basic			33,350,633				32,392,398				33,312,554				30,886,382
Dilutive effect of restricted stock units			455,829				415,280				297,544				300,570
Weighted average common shares outstanding - diluted			33,806,462				32,807,678				33,610,098				31,186,952
Earnings per share:
Basic		$	2.75			$	1.65			$	6.19			$	3.66
Diluted		$	2.72			$	1.63			$	6.13			$	3.62
Adjusted earnings per share
Numerator
Income before income tax expense		$	121,164			$	53,968			$	270,240			$	132,635
Restructuring costs			-				-				1,584				-
Loss on debt extinguishment			-				-				-				10,832
Inventory impairment and other			481				4,783				2,172				4,783
Purchase price accounting for acquired work in process inventory			-				-				-				1,724
Adjusted income before income tax expense			121,645				58,751				273,996				149,974
Adjusted income tax expense(1)			(28,846	)			(9,400	)			(64,974	)			(23,803	)
Adjusted net income			92,799				49,351				209,022				126,171
Denominator - Diluted			33,806,462				32,807,678				33,610,098				31,186,952
Adjusted diluted earnings per share		$	2.75			$	1.50			$	6.22			$	4.05

(1)

The tax rate used in calculating adjusted net income for the years ended December 31, 2020 was 23.7%, which is reflective of the Company’s GAAP tax rate for the applicable period, as adjusted for certain discrete items. For the year ended December 31, 2019 our adjusted income tax expense of 15.9% is reflective of our statutory income tax rate adjusted for permanent differences between our taxable income and our income before income taxes as reported under GAAP, including the benefit of Federal Energy Credits of $17.3 million. For the three months ended December 31, 2020 and 2019 our adjusted income tax expense is reflective of our full year effective tax rate of approximately 24% and 16% applied to adjusted income before income tax expense.

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)
Adjusted homebuilding gross margin excluding impairment, interest and purchase price accounting for acquired work in process inventory is not a measurement of financial performance under United States generally accepted accounting principles; 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 December 31,
		2020				%			2019				%
Home sales revenues		$	946,803			100.0	%		$	775,667			100.0	%
Cost of home sales revenues			(749,587	)		(79.2	)%			(632,722	)		(81.6	)%
Inventory impairment			(481	)		(0.1	)%			(1,993	)		(0.3	)%
Gross margin from home sales			196,735			20.8	%			140,952			18.2	%
Add: Inventory impairment			481			0.1	%			1,993			0.3	%
Add: Interest in cost of home sales revenues			20,573			2.2	%			19,651			2.5	%
Adjusted homebuilding gross margin excluding interest and inventory impairment			217,789			23.0	%			162,596			21.0	%
Add: Purchase price accounting for acquired work in process inventory			—			—	%			—			—	%
Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory		$	217,789			23.0	%		$	162,596			21.0	%
		Year ended December 31,
		2020				%			2019				%
Home sales revenues		$	3,027,167			100.0	%		$	2,481,465			100.0	%
Cost of home sales revenues			(2,468,133	)		(81.5	)%			(2,040,241	)		(82.2	)%
Inventory impairment			(2,172	)		(0.1	)%			(1,993	)		(0.1	)%
Gross margin from home sales			556,862			18.4	%			439,231			17.7	%
Add: Inventory impairment			2,172			0.1	%			1,993			0.1	%
Add: Interest in cost of home sales revenues			72,002			2.4	%			61,150			2.5	%
Adjusted homebuilding gross margin excluding interest and inventory impairment			631,036			20.8	%			502,374			20.2	%
Add: Purchase price accounting for acquired work in process inventory			—			—	%			1,724			0.1	%
Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory		$	631,036			20.8	%		$	504,098			20.3	%

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)
Adjusted EBITDA
Adjusted EBITDA is a non-GAAP financial measure we use as a supplemental measure in evaluating operating performance. The Company defines adjusted EBITDA as consolidated net income before (i) income tax expense, (ii) interest in cost of home sales revenues, (iii) other interest expense, (iv) loss on debt extinguishment, (v) inventory impairment and other, (vi) depreciation and amortization expense, and (vii) adjustments resulting from the application of purchase accounting for acquired work in process inventory related to business combinations. The Company believes adjusted EBITDA provides 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 this measurement is useful for comparing general operating performance from period to period. 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 Company’s presentation of adjusted EBITDA should not be construed as an indication that its future results will be unaffected by unusual or non-recurring items. 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 as reported under GAAP.
(in thousands)
		Three months ended December 31,											Year ended December 31,
		2020				2019			% Change				2020				2019			% Change
Net income		$	91,817			$	53,358			72.1	%		$	206,157			$	112,994			82.4	%
Income tax expense			29,347				610			4,711.0	%			64,083				19,641			226.3	%
Interest in cost of home sales revenues			20,573				19,651			4.7	%			72,002				61,150			17.7	%
Interest expense (income)			(112	)			—			NM				(1,141	)			16			(7,231.3	)%
Depreciation and amortization expense			3,053				3,589			(14.9	)%			13,141				13,382			(1.8	)%
EBITDA			144,678				77,208			87.4	%			354,242				207,183			71.0	%
Loss on debt extinguishment			—				—			NM				—				10,832			NM
Inventory impairment and other			481				4,783			(89.9	)%			2,172				4,783			(54.6	)%
Purchase price accounting for acquired work in process inventory			—				—			NM				—				1,724			NM
Adjusted EBITDA		$	145,159			$	81,991			77.0	%		$	356,414			$	224,522			58.7	%
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 (notes payable and revolving line of credit less cash and cash equivalents and cash held in escrow) by net capital (net homebuilding debt plus total stockholders’ equity). 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,
		2020				2019
Total homebuilding debt		$	894,875			$	965,404
Total stockholders' equity			1,280,705				1,061,699
Total capital		$	2,175,580			$	2,027,103
Homebuilding debt to capital			41.1	%			47.6	%
Total homebuilding debt		$	894,875			$	965,404
Cash and cash equivalents			(394,001	)			(55,436	)
Cash held in escrow			(23,149	)			(35,308	)
Net homebuilding debt		$	477,725			$	874,660
Total stockholders' equity			1,280,705				1,061,699
Net capital		$	1,758,430			$	1,936,359
Net homebuilding debt to net capital			27.2	%			45.2	%

Category:
Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005970/en/

FAQ

What were Century Communities' Q4 2020 financial results?

Century Communities reported a record net income of $91.8 million for Q4 2020, a 72% increase from the previous year.

How much did home sales revenues increase in Q4 2020 for CCS?

Home sales revenues increased by 22% to $946.8 million in Q4 2020.

What was the net new home contracts figure for Century Communities in Q4 2020?

Net new home contracts rose to 2,566 homes, representing a 45% increase compared to Q4 2019.

What is the full-year 2021 delivery outlook for Century Communities?

Century Communities anticipates delivering between 10,500 to 11,500 homes in 2021.

How did Century Communities' backlog change by the end of Q4 2020?

The backlog improved by 66% to 3,439 homes valued at $1.3 billion.