Century Communities Reports Record Third Quarter 2021 Results
Century Communities, Inc. (NYSE: CCS) reported strong third quarter results for 2021, achieving record revenues of $958 million, a 21% year-over-year increase. Net income surged 129% to $114 million, or $3.31 per diluted share. Key highlights include a gross margin improvement to 25.7% and EBITDA rising by 87% to $162.9 million. Backlog reached 4,866 homes valued at $1.9 billion. With a return on equity (ROE) of 31%, the company showcases robust growth and operational efficiency despite challenges in the housing market.
- Record third quarter revenues of $958 million, a 21% increase year-over-year.
- Net income increased 129% to $114 million or $3.31 per diluted share.
- Homebuilding gross margin improved significantly to 25.7%, an 820 basis point increase.
- EBITDA reached a record $162.9 million, up 87% compared to the previous year.
- Backlog increased to 4,866 homes, valued at $1.9 billion, both company records.
- Net new home contracts declined to 2,742 homes from 3,204 homes in the prior year quarter.
- Return on Equity of
- Gross Margin of
- Record Third Quarter EBITDA increased
- Record Third Quarter Revenues Increased
- Record Third Quarter Net Income Increased
Third Quarter 2021 Highlights Compared to Third Quarter 2020
-
Net income increased
129% to$114.0 million $3.31 152% to$125.3 million $3.63 -
Home sales revenues increased to
$917.3 million 21% year-on-year increase - Deliveries increased to 2,322 homes, a third quarter record
-
Homes in backlog improved to 4,866 homes with a value of
$1.9 billion -
Homebuilding gross margin increased to
25.7% from17.5% , an 820 basis point increase -
SG&A as a percent of home sales revenues was
9.8% , a 150 basis point improvement from11.3% -
Pre-tax income increased
125% to$145.8 million 147% to$160.2 million -
Pre-tax income margin, excluding the loss on debt extinguishment, improved 850 basis points to
16.7% compared to8.2% -
EBITDA increased
87% to$162.9 million -
Annualized return on average common shareholders’ equity (ROE) was
31% -
Stockholders’ equity increased
35% to$1.6 billion September 30, 2020 -
Net homebuilding debt to net capital improved to
23.1% from32.9% -
Total liquidity of
$1.3 billion
Third Quarter 2021 Results
Excluding charges related to debt extinguishment, net income for the third quarter 2021 increased
Excluding charges related to the debt extinguishment, pre-tax income was
Home sales revenues for the third quarter 2021 increased
Homebuilding gross margin percentage in the third quarter 2021 was
As expected, net new home contracts in the third quarter 2021 declined to 2,742 homes, compared to 3,204 homes in the prior year quarter, a result of reduced community count and available homes for sale due to robust sales earlier in the year coupled with self-imposed sales limitations including delaying first offering homes for sale later in the construction cycle. At the end of the third quarter 2021, the Company had 4,866 homes in backlog, representing
Financial services revenues were
Strengthened Balance Sheet and Liquidity
The Company ended the quarter with a strong financial position including
As of
During the quarter, we issued
Full Year 2021 Outlook
Conference Call
The Company will host a webcast and conference call on
About
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
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 and its expectations for continued growth and increases in its return on equity. 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, availability and pricing of labor and raw materials and the other factors included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-
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Three Months Ended |
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Nine Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenues |
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Home sales revenues |
|
$ |
917,337 |
|
|
$ |
760,239 |
|
|
$ |
2,881,404 |
|
|
$ |
2,080,364 |
|
Land sales and other revenues |
|
|
11,594 |
|
|
|
2,105 |
|
|
|
35,522 |
|
|
|
25,516 |
|
Total homebuilding revenues |
|
|
928,931 |
|
|
|
762,344 |
|
|
|
2,916,926 |
|
|
|
2,105,880 |
|
Financial services revenues |
|
|
29,101 |
|
|
|
32,017 |
|
|
|
92,586 |
|
|
|
67,534 |
|
Total revenues |
|
|
958,032 |
|
|
|
794,361 |
|
|
|
3,009,512 |
|
|
|
2,173,414 |
|
Homebuilding Cost of Revenues |
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Cost of home sales revenues |
|
|
(682,012 |
) |
|
|
(627,364 |
) |
|
|
(2,203,187 |
) |
|
|
(1,718,545 |
) |
Cost of land sales and other revenues |
|
|
(6,977 |
) |
|
|
(2,046 |
) |
|
|
(23,996 |
) |
|
|
(18,597 |
) |
Total homebuilding cost of revenues |
|
|
(688,989 |
) |
|
|
(629,410 |
) |
|
|
(2,227,183 |
) |
|
|
(1,737,142 |
) |
Financial services costs |
|
|
(17,666 |
) |
|
|
(14,511 |
) |
|
|
(54,135 |
) |
|
|
(36,841 |
) |
Selling, general, and administrative |
|
|
(90,154 |
) |
|
|
(85,806 |
) |
|
|
(281,961 |
) |
|
|
(246,131 |
) |
Loss on debt extinguishment |
|
|
(14,458 |
) |
|
|
— |
|
|
|
(14,458 |
) |
|
|
— |
|
Inventory impairment and other |
|
|
— |
|
|
|
— |
|
|
|
(41 |
) |
|
|
(1,691 |
) |
Other income (expense) |
|
|
(1,004 |
) |
|
|
251 |
|
|
|
(2,790 |
) |
|
|
(2,533 |
) |
Income before income tax expense |
|
|
145,761 |
|
|
|
64,885 |
|
|
|
428,944 |
|
|
|
149,076 |
|
Income tax expense |
|
|
(31,784 |
) |
|
|
(15,121 |
) |
|
|
(95,406 |
) |
|
|
(34,736 |
) |
Net income |
|
$ |
113,977 |
|
|
$ |
49,764 |
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$ |
333,538 |
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$ |
114,340 |
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Earnings per share: |
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Basic |
|
$ |
3.38 |
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|
$ |
1.49 |
|
|
$ |
9.90 |
|
|
$ |
3.43 |
|
Diluted |
|
$ |
3.31 |
|
|
$ |
1.48 |
|
|
$ |
9.69 |
|
|
$ |
3.41 |
|
Weighted average common shares outstanding: |
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Basic |
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33,760,940 |
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33,350,633 |
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33,688,531 |
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33,299,768 |
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Diluted |
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|
34,471,044 |
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33,731,252 |
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34,420,163 |
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33,556,650 |
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2021 |
|
2020 |
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Assets |
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(unaudited) |
|
(audited) |
||
Cash and cash equivalents |
|
$ |
491,879 |
|
$ |
394,001 |
Cash held in escrow |
|
|
29,183 |
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|
23,149 |
Accounts receivable |
|
|
34,134 |
|
|
21,781 |
Inventories |
|
|
2,162,682 |
|
|
1,929,664 |
Mortgage loans held for sale |
|
|
223,443 |
|
|
282,639 |
Prepaid expenses and other assets |
|
|
190,778 |
|
|
122,630 |
Property and equipment, net |
|
|
25,592 |
|
|
28,384 |
Deferred tax assets, net |
|
|
22,786 |
|
|
12,450 |
|
|
|
30,395 |
|
|
30,395 |
Total assets |
|
$ |
3,210,872 |
|
$ |
2,845,093 |
Liabilities and stockholders' equity |
|
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Liabilities: |
|
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|
|
|
|
Accounts payable |
|
$ |
102,327 |
|
$ |
107,712 |
Accrued expenses and other liabilities |
|
|
293,445 |
|
|
302,751 |
Notes payable |
|
|
1,002,484 |
|
|
894,875 |
Revolving line of credit |
|
|
— |
|
|
— |
Mortgage repurchase facilities |
|
|
211,599 |
|
|
259,050 |
Total liabilities |
|
|
1,609,855 |
|
|
1,564,388 |
Stockholders' equity: |
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Preferred stock, |
|
|
— |
|
|
— |
Common stock, |
|
|
338 |
|
|
334 |
Additional paid-in capital |
|
|
694,206 |
|
|
697,200 |
Retained earnings |
|
|
906,473 |
|
|
583,171 |
Total stockholders' equity |
|
|
1,601,017 |
|
|
1,280,705 |
Total liabilities and stockholders' equity |
|
$ |
3,210,872 |
|
$ |
2,845,093 |
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Net New Home Contracts |
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Three Months Ended |
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2021 |
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2020 |
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% Change |
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West |
|
395 |
|
|
470 |
|
|
(16.0 |
) |
% |
Mountain |
|
489 |
|
|
653 |
|
|
(25.1 |
) |
% |
|
|
392 |
|
|
411 |
|
|
(4.6 |
) |
% |
Southeast |
|
387 |
|
|
660 |
|
|
(41.4 |
) |
% |
Century Complete |
|
1,079 |
|
|
1,010 |
|
|
6.8 |
|
% |
Total |
|
2,742 |
|
|
3,204 |
|
|
(14.4 |
) |
% |
|
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Nine Months Ended |
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||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
||
West |
|
1,286 |
|
|
1,195 |
|
|
7.6 |
|
% |
Mountain |
|
2,053 |
|
|
1,741 |
|
|
17.9 |
|
% |
|
|
1,309 |
|
|
1,135 |
|
|
15.3 |
|
% |
Southeast |
|
1,151 |
|
|
1,742 |
|
|
(33.9 |
) |
% |
Century Complete |
|
3,518 |
|
|
2,443 |
|
|
44.0 |
|
% |
Total |
|
9,317 |
|
|
8,256 |
|
|
12.9 |
|
% |
Home Deliveries
|
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Three Months Ended |
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2021 |
|
2020 |
|
% Change |
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|
Homes |
|
Average Sales
|
|
Homes |
|
Average Sales
|
|
Homes |
|
Average Sales
|
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West |
|
409 |
|
$ |
655.8 |
|
316 |
|
$ |
596.5 |
|
29.4 |
|
% |
|
9.9 |
% |
Mountain |
|
509 |
|
$ |
500.6 |
|
514 |
|
$ |
429.3 |
|
(1.0 |
) |
% |
|
16.6 |
% |
|
|
274 |
|
$ |
313.1 |
|
307 |
|
$ |
249.0 |
|
(10.7 |
) |
% |
|
25.7 |
% |
Southeast |
|
325 |
|
$ |
403.8 |
|
421 |
|
$ |
362.7 |
|
(22.8 |
) |
% |
|
11.3 |
% |
Century Complete |
|
805 |
|
$ |
220.3 |
|
725 |
|
$ |
168.2 |
|
11.0 |
|
% |
|
31.0 |
% |
Total / Weighted Average |
|
2,322 |
|
$ |
395.1 |
|
2,283 |
|
$ |
333.0 |
|
1.7 |
|
% |
|
18.6 |
% |
|
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|
Nine Months Ended |
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|
2021 |
|
2020 |
|
% Change |
|
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|
|
Homes |
|
Average Sales
|
|
Homes |
|
Average Sales
|
|
Homes |
|
Average Sales
|
|||||
West |
|
1,113 |
|
$ |
621.2 |
|
862 |
|
$ |
558.2 |
|
29.1 |
|
% |
|
11.3 |
% |
Mountain |
|
1,805 |
|
$ |
462.0 |
|
1,327 |
|
$ |
415.8 |
|
36.0 |
|
% |
|
11.1 |
% |
|
|
1,079 |
|
$ |
281.9 |
|
951 |
|
$ |
247.3 |
|
13.5 |
|
% |
|
14.0 |
% |
Southeast |
|
1,322 |
|
$ |
393.2 |
|
1,304 |
|
$ |
351.7 |
|
1.4 |
|
% |
|
11.8 |
% |
Century Complete |
|
2,571 |
|
$ |
207.0 |
|
2,183 |
|
$ |
162.0 |
|
17.8 |
|
% |
|
27.8 |
% |
Total / Weighted Average |
|
7,890 |
|
$ |
365.2 |
|
6,627 |
|
$ |
313.9 |
|
19.1 |
|
% |
|
16.3 |
% |
|
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Selling Communities |
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Selling communities at period end |
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As of |
|
|
Increase/(Decrease) |
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|
|
2021 |
|
2020 |
|
|
Amount |
|
% Change |
|||
|
|
|
|
|
|
|
|
|
|
|
||
West |
|
18 |
|
18 |
|
|
— |
|
|
— |
|
% |
Mountain |
|
27 |
|
39 |
|
|
(12 |
) |
|
(30.8 |
) |
% |
|
|
15 |
|
18 |
|
|
(3 |
) |
|
(16.7 |
) |
% |
Southeast |
|
19 |
|
35 |
|
|
(16 |
) |
|
(45.7 |
) |
% |
Century Complete |
|
107 |
|
104 |
|
|
3 |
|
|
2.9 |
|
% |
Total |
|
186 |
|
214 |
|
|
(28 |
) |
|
(13.1 |
) |
% |
Backlog
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As of |
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|
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|
2021 |
|
2020 |
|
% Change |
|
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|
|
Homes |
|
Dollar Value |
|
Average Sales
|
|
Homes |
|
Dollar Value |
|
Average Sales
|
|
Homes |
|
Dollar Value |
|
Average Sales
|
|||||||||
West |
|
659 |
|
$ |
436,812 |
|
$ |
662.8 |
|
535 |
|
$ |
291,905 |
|
$ |
545.6 |
|
23.2 |
|
% |
|
49.6 |
|
% |
|
21.5 |
% |
Mountain |
|
1,037 |
|
|
556,192 |
|
$ |
536.3 |
|
787 |
|
|
348,908 |
|
$ |
443.3 |
|
31.8 |
|
% |
|
59.4 |
|
% |
|
21.0 |
% |
|
|
615 |
|
|
217,362 |
|
$ |
353.4 |
|
459 |
|
|
141,044 |
|
$ |
307.3 |
|
34.0 |
|
% |
|
54.1 |
|
% |
|
15.0 |
% |
Southeast |
|
630 |
|
|
257,902 |
|
$ |
409.4 |
|
951 |
|
|
346,323 |
|
$ |
364.2 |
|
(33.8 |
) |
% |
|
(25.5 |
) |
% |
|
12.4 |
% |
Century Complete |
|
1,925 |
|
|
454,516 |
|
$ |
236.1 |
|
967 |
|
|
181,269 |
|
$ |
187.5 |
|
99.1 |
|
% |
|
150.7 |
|
% |
|
25.9 |
% |
Total / Weighted Average |
|
4,866 |
|
$ |
1,922,784 |
|
$ |
395.1 |
|
3,699 |
|
$ |
1,309,449 |
|
$ |
354.0 |
|
31.5 |
|
% |
|
46.8 |
|
% |
|
11.6 |
% |
Lot Inventory |
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||||||
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As of |
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|
|||||||||||||||||||||
|
|
2021 |
|
2020 |
|
|
% Change |
|
|||||||||||||||||||||||||
|
|
Owned |
|
Controlled |
|
Total |
|
Owned |
|
Controlled |
|
Total |
|
Owned |
|
Controlled |
|
Total |
|||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
West |
|
3,971 |
|
|
|
5,435 |
|
|
|
9,406 |
|
|
|
3,299 |
|
|
|
2,287 |
|
|
|
5,586 |
|
|
|
20.4 |
% |
|
137.6 |
% |
|
68.4 |
% |
Mountain |
|
8,004 |
|
|
|
13,633 |
|
|
|
21,637 |
|
|
|
6,762 |
|
|
|
6,295 |
|
|
|
13,057 |
|
|
|
18.4 |
% |
|
116.6 |
% |
|
65.7 |
% |
|
|
4,150 |
|
|
|
8,528 |
|
|
|
12,678 |
|
|
|
3,308 |
|
|
|
4,094 |
|
|
|
7,402 |
|
|
|
25.5 |
% |
|
108.3 |
% |
|
71.3 |
% |
Southeast |
|
3,692 |
|
|
|
12,460 |
|
|
|
16,152 |
|
|
|
3,571 |
|
|
|
5,046 |
|
|
|
8,617 |
|
|
|
3.4 |
% |
|
146.9 |
% |
|
87.4 |
% |
Century Complete |
|
5,178 |
|
|
|
10,486 |
|
|
|
15,664 |
|
|
|
3,027 |
|
|
|
7,274 |
|
|
|
10,301 |
|
|
|
71.1 |
% |
|
44.2 |
% |
|
52.1 |
% |
Total |
|
24,995 |
|
|
|
50,542 |
|
|
|
75,537 |
|
|
|
19,967 |
|
|
|
24,996 |
|
|
|
44,963 |
|
|
|
25.2 |
% |
|
102.2 |
% |
|
68.0 |
% |
% of Total |
|
33.1 |
% |
|
|
66.9 |
% |
|
|
100.0 |
% |
|
|
44.4 |
% |
|
|
55.6 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Adjusted Net Income and Adjusted Diluted Earnings per 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. We define Adjusted Net Income as consolidated net income before (i) income tax expense, (ii) inventory impairment and other (iii) restructuring costs, and (iv) loss on debt extinguishment, less adjusted income tax expense, calculated using the Company’s estimated annual effective tax rate after discrete items for the applicable period. Adjusted Diluted EPS is calculated by excluding the effect of inventory impairment, restructuring costs and loss on debt extinguishment from the calculation of reported EPS.
Adjusted Net Income and Adjusted Diluted Earnings Per Share
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
113,977 |
|
|
$ |
49,764 |
|
|
$ |
333,538 |
|
|
$ |
114,340 |
|
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - basic |
|
|
33,760,940 |
|
|
|
33,350,633 |
|
|
|
33,688,531 |
|
|
|
33,299,768 |
|
Dilutive effect of restricted stock units |
|
|
710,104 |
|
|
|
380,619 |
|
|
|
731,632 |
|
|
|
256,882 |
|
Weighted average common shares outstanding - diluted |
|
|
34,471,044 |
|
|
|
33,731,252 |
|
|
|
34,420,163 |
|
|
|
33,556,650 |
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
3.38 |
|
|
$ |
1.49 |
|
|
$ |
9.90 |
|
|
$ |
3.43 |
|
Diluted |
|
$ |
3.31 |
|
|
$ |
1.48 |
|
|
$ |
9.69 |
|
|
$ |
3.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
113,977 |
|
|
$ |
49,764 |
|
|
$ |
333,538 |
|
|
$ |
114,340 |
|
Income tax expense |
|
|
31,784 |
|
|
|
15,121 |
|
|
|
95,406 |
|
|
|
34,736 |
|
Income before income tax expense |
|
|
145,761 |
|
|
|
64,885 |
|
|
|
428,944 |
|
|
|
149,076 |
|
Inventory impairment and other |
|
|
— |
|
|
|
— |
|
|
|
41 |
|
|
|
1,691 |
|
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,584 |
|
Loss on debt extinguishment |
|
|
14,458 |
|
|
|
— |
|
|
|
14,458 |
|
|
|
— |
|
Adjusted income before income tax expense |
|
|
160,219 |
|
|
|
64,885 |
|
|
|
443,443 |
|
|
|
152,351 |
|
Adjusted income tax expense(1) |
|
|
(34,937 |
) |
|
|
(15,121 |
) |
|
|
(98,631 |
) |
|
|
(35,499 |
) |
Adjusted net income |
|
$ |
125,282 |
|
|
|
49,764 |
|
|
$ |
344,812 |
|
|
|
116,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator - Diluted |
|
|
34,471,044 |
|
|
|
33,731,252 |
|
|
|
34,420,163 |
|
|
|
33,556,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted diluted earnings per share |
|
$ |
3.63 |
|
|
$ |
1.48 |
|
|
$ |
10.02 |
|
|
$ |
3.48 |
|
(1) |
The tax rate used in calculating adjusted net income for the three months ended |
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
Adjusted Homebuilding Gross Margin
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
||||||||||||||
|
|
2021 |
|
% |
|
2020 |
|
% |
||||||||
Home sales revenues |
|
$ |
917,337 |
|
|
100.0 |
|
% |
|
$ |
760,239 |
|
|
100.0 |
|
% |
Cost of home sales revenues |
|
|
(682,012 |
) |
|
(74.3 |
) |
% |
|
|
(627,364 |
) |
|
(82.5 |
) |
% |
Inventory impairment and other |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
% |
Gross margin from home sales |
|
|
235,325 |
|
|
25.7 |
|
% |
|
|
132,875 |
|
|
17.5 |
|
% |
Add: Inventory impairment and other |
|
|
— |
|
|
— |
|
% |
|
|
— |
|
|
— |
|
% |
Add: Interest in cost of home sales revenues |
|
|
14,636 |
|
|
1.6 |
|
% |
|
|
19,050 |
|
|
2.5 |
|
% |
Adjusted homebuilding gross margin excluding interest and inventory
|
|
$ |
249,961 |
|
|
27.2 |
|
% |
|
$ |
151,925 |
|
|
20.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
||||||||||||||
|
|
Nine Months Ended |
||||||||||||||
|
|
2021 |
|
% |
|
2020 |
|
% |
||||||||
Home sales revenues |
|
$ |
2,881,404 |
|
|
100.0 |
|
% |
|
$ |
2,080,364 |
|
|
100.0 |
|
% |
Cost of home sales revenues |
|
|
(2,203,187 |
) |
|
(76.5 |
) |
% |
|
|
(1,718,545 |
) |
|
(82.6 |
) |
% |
Inventory impairment and other |
|
|
(41 |
) |
|
(0.0 |
) |
% |
|
|
(1,691 |
) |
|
(0.1 |
) |
% |
Gross margin from home sales |
|
|
678,176 |
|
|
23.5 |
|
% |
|
|
360,128 |
|
|
17.3 |
|
% |
Add: Inventory impairment and other |
|
|
41 |
|
|
0.0 |
|
% |
|
|
1,691 |
|
|
0.1 |
|
% |
Add: Interest in cost of home sales revenues |
|
|
51,419 |
|
|
1.8 |
|
% |
|
|
51,429 |
|
|
2.5 |
|
% |
Adjusted homebuilding gross margin excluding interest and inventory
|
|
$ |
729,636 |
|
|
25.3 |
|
% |
|
$ |
413,248 |
|
|
19.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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) depreciation and amortization expense, (v) loss on debt extinguishment (vi) inventory impairment and other, (vii) restructuring costs, and (viii) 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 |
|
Nine Months Ended |
||||||||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
% Change |
|
2021 |
|
|
2020 |
|
|
% Change |
||||||||||
Net income |
|
$ |
113,977 |
|
|
$ |
49,764 |
|
|
|
129.0 |
|
% |
|
$ |
333,538 |
|
|
$ |
114,340 |
|
|
|
191.7 |
|
% |
Income tax expense |
|
|
31,784 |
|
|
|
15,121 |
|
|
|
110.2 |
|
% |
|
|
95,406 |
|
|
|
34,736 |
|
|
|
174.7 |
|
% |
Interest in cost of home sales revenues |
|
|
14,636 |
|
|
|
19,050 |
|
|
|
(23.2 |
) |
% |
|
|
51,419 |
|
|
|
51,429 |
|
|
|
(0.0 |
) |
% |
Interest expense (income) |
|
|
(148 |
) |
|
|
(182 |
) |
|
|
(18.7 |
) |
% |
|
|
(431 |
) |
|
|
(1,029 |
) |
|
|
(58.1 |
) |
% |
Depreciation and amortization expense |
|
|
2,669 |
|
|
|
3,245 |
|
|
|
(17.8 |
) |
% |
|
|
8,324 |
|
|
|
10,088 |
|
|
|
(17.5 |
) |
% |
EBITDA |
|
|
162,918 |
|
|
|
86,998 |
|
|
|
87.3 |
|
% |
|
|
488,256 |
|
|
|
209,564 |
|
|
|
133.0 |
|
% |
Loss on debt extinguishment |
|
|
14,458 |
|
|
|
— |
|
|
|
NM |
|
|
|
|
14,458 |
|
|
|
— |
|
|
|
NM |
|
|
Inventory impairment and other |
|
|
— |
|
|
|
— |
|
|
|
NM |
|
|
|
|
41 |
|
|
|
1,691 |
|
|
|
(97.6 |
) |
% |
Restructuring costs |
|
|
— |
|
|
|
— |
|
|
|
NM |
|
|
|
|
— |
|
|
|
1,584 |
|
|
|
NM |
|
|
Adjusted EBITDA |
|
$ |
177,376 |
|
|
$ |
86,998 |
|
|
|
103.9 |
|
% |
|
$ |
502,755 |
|
|
$ |
212,839 |
|
|
|
136.2 |
|
% |
NM – Not Meaningful |
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
Ratio of Net Homebuilding Debt to
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 (senior 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) |
||||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
Total homebuilding debt |
|
$ |
1,002,484 |
|
|
$ |
894,875 |
|
Total stockholders' equity |
|
|
1,601,017 |
|
|
|
1,280,705 |
|
Total capital |
|
$ |
2,603,501 |
|
|
$ |
2,175,580 |
|
Homebuilding debt to capital |
|
|
38.5 |
% |
|
|
41.1 |
% |
|
|
|
|
|
|
|
||
Total homebuilding debt |
|
$ |
1,002,484 |
|
|
$ |
894,875 |
|
Cash and cash equivalents |
|
|
(491,879 |
) |
|
|
(394,001 |
) |
Cash held in escrow |
|
|
(29,183 |
) |
|
|
(23,149 |
) |
Net homebuilding debt |
|
|
481,422 |
|
|
|
477,725 |
|
Total stockholders' equity |
|
|
1,601,017 |
|
|
|
1,280,705 |
|
Net capital |
|
$ |
2,082,439 |
|
|
$ |
1,758,430 |
|
|
|
|
|
|
|
|
||
Net homebuilding debt to net capital |
|
|
23.1 |
% |
|
|
27.2 |
% |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006059/en/
719-426-3520
Hunter.Wells@CenturyCommunities.com
Source:
FAQ
What were Century Communities' revenues for the third quarter 2021?
How much did net income increase for CCS in Q3 2021?
What was the homebuilding gross margin for CCS in Q3 2021?
How many homes were in backlog for CCS as of Q3 2021?
What is the return on equity for Century Communities in Q3 2021?
