Century Communities Reports Third Quarter 2024 Results

Rhea-AI Summary

Century Communities (NYSE: CCS) reported strong Q3 2024 results with home sales revenues of $1.1 billion, up 29% year-over-year. The company achieved record-breaking deliveries of 2,834 homes, representing a 25% increase, while net new home contracts grew 19% to 2,563. The company reached a record community count of 305, up 21% YoY. Net income was $83.0 million ($2.59 per diluted share), with adjusted net income of $87.0 million ($2.72 per diluted share). The company maintained strong margins with adjusted homebuilding gross margin of 23.6%. Century Communities increased its 2024 guidance, projecting 10,900-11,300 home deliveries and sales revenues of $4.3-4.4 billion.

Positive

• Home sales revenues increased 29% YoY to $1.1 billion
• Record deliveries of 2,834 homes, up 25% YoY
• Net new home contracts increased 19% YoY to 2,563
• Record community count of 305, up 21% YoY
• Strong adjusted homebuilding gross margin of 23.6%
• Increased 2024 guidance for deliveries and revenues
• Book value per share reached record $81.29
• Strong liquidity position with $605.9 million total liquidity

Negative

• Homebuilding debt to capital increased to 35.8% from 31.1% in previous quarter
• Net homebuilding debt to net capital rose to 32.1% from 28.1% in previous quarter
• Slight decline in adjusted homebuilding gross margin from Q2 2024 (24.0% to 23.6%)

Insights

Financial Analyst

Century Communities delivered an impressive third quarter with significant growth metrics across the board. Home sales revenues jumped 29% year-over-year to $1.1 billion, while deliveries increased 25% to 2,834 homes. The company's strategic expansion is evident through its record community count of 305 and the acquisition of Anglia Homes.

Key financial highlights include an adjusted homebuilding gross margin of 23.6%, demonstrating strong pricing power despite market challenges. The company's balance sheet remains robust with $2.5 billion in stockholders' equity and $605.9 million in total liquidity. The increased full-year guidance, projecting 10,900-11,300 home deliveries and $4.3-4.4 billion in sales revenues, signals management's confidence in sustained growth.

Real Estate Market Analyst

The 19% increase in net new contracts indicates resilient demand for affordable housing despite elevated mortgage rates. Century's strategic focus on affordable homes positions them well in the current market environment. The expansion of their lot inventory by 17% to 80,121 lots, with 55% being controlled lots, demonstrates a capital-efficient land strategy that reduces risk while maintaining growth potential.

The acquisition of Anglia Homes aligns with their market deepening strategy and enhances their finished lot access without heavy capital commitment. The record book value per share of $81.29 reflects strong operational execution and effective capital allocation.

- Home Sales Revenues of $1.1 Billion Increased 29% YoY -
- Deliveries of 2,834 Homes Increased 25% YoY -
- Net New Home Contracts of 2,563 Increased 19% YoY -
- Community Count of 305, a Company Record, Increased 21% YoY - 

GREENWOOD VILLAGE, Colo., Oct. 23, 2024 /PRNewswire/ -- Century Communities, Inc. (NYSE: CCS), one of the nation's largest homebuilders, today announced financial results for its third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

• Net income of $83.0 million, or $2.59 per diluted share
• Adjusted net income of $87.0 million, or $2.72 per diluted share
• Pre-tax income of $109.9 million
• Total revenues of $1.1 billion
• Community count of 305, a Company record
• Deliveries of 2,834 homes, a Company record for the third quarter
• Net new home contracts of 2,563
• Homebuilding gross margin of 21.7%
• Adjusted homebuilding gross margin of 23.6%
• Acquired Anglia Homes, our ninth homebuilder acquisition

"We saw strong growth in our net new contracts and deliveries in the third quarter as demand for affordable new homes remains solid," said Dale Francescon, Chairman and Co-Chief Executive Officer. "Our net new contracts of 2,563 homes increased by 19% on a year-over-year basis while our deliveries of 2,834 homes, a third quarter record for the Company, increased by 25%. We generated an adjusted homebuilding gross margin of 23.6%, which was roughly in line with second quarter 2024 levels of 24.0%, while we drove both a year-over-year and sequential decline in our selling, general, and administrative expenses as a percent of home sales revenues as we continue to leverage our fixed costs."

Rob Francescon, Co-Chief Executive Officer and President, said, "Our total lot inventory of 80,121 increased by 17% on a year-over-year basis, with our controlled lots accounting for 55% of our total lots at the end of the third quarter. Our community count grew by 21% on a year-over-year basis to 305, a record for the Company. On July 31, we acquired Anglia Homes, our second homebuilder acquisition this year, which is consistent with our strategy of deepening our share in our existing markets in a land-light manner while also increasing our go-forward access to capital-efficient finished lots."

Third Quarter 2024 Results

Net income for the third quarter 2024 was $83.0 million, or $2.59 per diluted share. Adjusted net income, which excludes purchase price accounting and inventory impairment, was $87.0 million, or $2.72 per diluted share.

Total revenues were $1.1 billion, with third quarter home sales revenues totaling $1.1 billion as well. Deliveries totaled 2,834 homes. The average sales price of home deliveries for the third quarter 2024 was $393,800.

Net new home contracts in the third quarter 2024 were 2,563, and at the end of the third quarter 2024, the Company had 1,580 homes in backlog, representing $671.4 million of backlog dollar value.

Adjusted homebuilding gross margin percentage, excluding interest, inventory impairment and purchase price accounting, was 23.6% in the third quarter of 2024. Homebuilding gross margin percentage in the third quarter 2024 was 21.7%. Selling, general, and administrative expenses as a percent of home sales revenues was 11.9% in the quarter. Adjusted EBITDA and EBITDA for the third quarter 2024 were $137.1 million and $132.3 million, respectively.

Financial services revenues and pre-tax income were $20.1 million and $3.1 million, respectively, in the third quarter 2024.

Our book value per share increased to a record $81.29 as of September 30, 2024.

Balance Sheet and Liquidity

The Company ended the third quarter 2024 with a strong financial position, including $2.5 billion of stockholders' equity and $605.9 million of total liquidity, including $219.9 million of cash.

During the third quarter, the Company maintained its quarterly cash dividend of $0.26 per share.

As of September 30, 2024, homebuilding debt to capital was 35.8% compared to 31.1% at June 30, 2024 and net homebuilding debt to net capital was 32.1% compared to 28.1% at June 30, 2024.

Full Year 2024 Outlook

Scott Dixon, Chief Financial Officer of the Company, commented, "Given our progress through the first three quarters of the year, we have increased our full year 2024 guidance for home deliveries to be in the range of 10,900 to 11,300 homes and our home sales revenues to be in the range of $4.3 to $4.4 billion."

Webcast and Conference Call

The Company will host a webcast and conference call on Wednesday, October 23, 2024, at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company's third 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 October 30, 2024, by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering the passcode 7570440. 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—and Newsweek's list of the World's Most Trustworthy Companies 2024. 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 U.S., and also offers title, insurance and lending services in select markets through its Parkway Title, IHL Home Insurance Agency, and Inspire Home Loans 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 United States 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 homebuilding gross margin, EBITDA, adjusted EBITDA, and ratio of net homebuilding 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," "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 September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Revenues
Homebuilding Revenues
Home sales revenues		$	1,116,125		$	865,065		$	3,055,941		$	2,419,025
Land sales and other revenues			650			722			2,242			3,811
Total homebuilding revenues			1,116,775			865,787			3,058,183			2,422,836
Financial services revenues			20,091			23,636			66,676			63,768
Total revenues			1,136,866			889,423			3,124,859			2,486,604
Homebuilding Cost of Revenues
Cost of home sales revenues			(873,081)			(652,411)			(2,386,208)			(1,910,630)
Cost of land sales and other revenues			(170)			—			(207)			(375)
Total homebuilding cost of revenues			(873,251)			(652,411)			(2,386,415)			(1,911,005)
Financial services costs			(17,021)			(11,432)			(47,894)			(33,983)
Selling, general, and administrative			(132,972)			(111,918)			(373,054)			(315,351)
Inventory impairment			(1,373)			—			(1,942)			—
Other expense			(2,337)			(1,663)			(10,690)			(1,509)
Income before income tax expense			109,912			111,999			304,864			224,756
Income tax expense			(26,892)			(28,849)			(73,789)			(56,850)
Net income		$	83,020		$	83,150		$	231,075		$	167,906
Earnings per share:
Basic		$	2.65		$	2.60		$	7.31		$	5.25
Diluted		$	2.59		$	2.58		$	7.19		$	5.21
Weighted average common shares outstanding:
Basic			31,336,756			31,962,884			31,596,995			31,967,672
Diluted			32,025,015			32,237,022			32,117,917			32,200,677

 

Century Communities, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts)
		September 30,			December 31,
		2024			2023
Assets		(unaudited)			(audited)
Cash and cash equivalents		$	149,155		$	226,150
Cash held in escrow			70,755			101,845
Accounts receivable			73,016			76,213
Inventories			3,581,099			3,016,641
Mortgage loans held for sale			257,187			251,852
Prepaid expenses and other assets			427,961			350,193
Property and equipment, net			165,117			69,075
Deferred tax assets, net			17,241			16,998
Goodwill			39,434			30,395
Total assets		$	4,780,965		$	4,139,362
Liabilities and stockholders' equity
Liabilities:
Accounts payable		$	165,369		$	147,265
Accrued expenses and other liabilities			287,937			303,392
Notes payable			1,118,943			1,062,471
Revolving line of credit			414,000			—
Mortgage repurchase facilities			247,214			239,298
Total liabilities			2,233,463			1,752,426
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, 31,337,062 and 31,774,615 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			313			318
Additional paid-in capital			547,724			592,989
Retained earnings			1,999,465			1,793,629
Total stockholders' equity			2,547,502			2,386,936
Total liabilities and stockholders' equity		$	4,780,965		$	4,139,362

 

Century Communities, Inc. Homebuilding Operational Data (Unaudited)
Net New Home Contracts
		Three Months Ended September 30,										Nine Months Ended September 30,
		2024			2023			% Change				2024			2023			% Change
West		365			269			35.7	%			1,181			849			39.1	%
Mountain		463			395			17.2	%			1,626			1,174			38.5	%
Texas		454			377			20.4	%			1,488			1,252			18.8	%
Southeast		396			352			12.5	%			1,232			945			30.4	%
Century Complete		885			756			17.1	%			2,682			2,268			18.3	%
Total		2,563			2,149			19.3	%			8,209			6,488			26.5	%

 

Home Deliveries  (dollars in thousands)
		Three Months Ended September 30,
		2024					2023					% Change
		Homes		Average Sales Price			Homes		Average Sales Price			Homes			Average Sales Price
West		363		$	662.9		281		$	596.6		29.2	%		11.1	%
Mountain		513		$	528.4		415		$	498.5		23.6	%		6.0	%
Texas		530		$	300.9		382		$	292.3		38.7	%		2.9	%
Southeast		427		$	421.9		378		$	435.9		13.0	%		(3.2)	%
Century Complete		1,001		$	264.6		808		$	265.0		23.9	%		(0.2)	%
Total / Weighted Average		2,834		$	393.8		2,264		$	382.1		25.2	%		3.1	%
		Nine Months Ended September 30,
		2024					2023					% Change
		Homes		Average Sales Price			Homes		Average Sales Price			Homes			Average Sales Price
West		972		$	634.3		738		$	590.5		31.7	%		7.4	%
Mountain		1,494		$	524.8		1,325		$	514.4		12.8	%		2.0	%
Texas		1,439		$	303.4		1,159		$	282.7		24.2	%		7.3	%
Southeast		1,155		$	429.1		851		$	433.6		35.7	%		(1.0)	%
Century Complete		2,749		$	263.0		2,338		$	258.8		17.6	%		1.6	%
Total / Weighted Average		7,809		$	391.3		6,411		$	377.3		21.8	%		3.7	%

 

Century Communities, Inc. Homebuilding Operational Data (Unaudited)
Selling Communities
		As of September 30,					Increase/Decrease
		2024		2023			Amount		% Change
West		27		28			(1)		(3.6)	%
Mountain		49		49			—		—	%
Texas		74		42			32		76.2	%
Southeast		38		29			9		31.0	%
Century Complete		117		104			13		12.5	%
Total		305		252			53		21.0	%

 

Backlog (dollars in thousands)
		As of September 30,
		2024								2023								% Change
		Homes		Dollar Value			Average Sales Price			Homes		Dollar Value			Average Sales Price			Homes			Dollar Value			Average Sales Price
West		315		$	196,385		$	623.4		191		$	116,721		$	611.1		64.9	%		68.3	%		2.0	%
Mountain		295			171,990		$	583.0		290			146,137		$	503.9		1.7	%		17.7	%		15.7	%
Texas		315			99,066		$	314.5		248			76,224		$	307.4		27.0	%		30.0	%		2.3	%
Southeast		219			94,202		$	430.1		299			136,921		$	457.9		(26.8)	%		(31.2)	%		(6.1)	%
Century Complete		436			109,761		$	251.7		859			231,166		$	269.1		(49.2)	%		(52.5)	%		(6.5)	%
Total / Weighted Average		1,580		$	671,404		$	424.9		1,887		$	707,169		$	374.8		(16.3)	%		(5.1)	%		13.4	%

 

Lot Inventory
		As of September 30,
		2024									2023									% Change
		Owned			Controlled			Total			Owned			Controlled			Total			Owned			Controlled			Total
West		4,445			3,703			8,148			4,160			3,991			8,151			6.9	%		(7.2)	%		(0.0)	%
Mountain		8,681			4,808			13,489			8,751			4,745			13,496			(0.8)	%		1.3	%		(0.1)	%
Texas		12,413			9,693			22,106			8,105			9,691			17,796			53.2	%		0.0	%		24.2	%
Southeast		5,563			12,127			17,690			5,583			8,602			14,185			(0.4)	%		41.0	%		24.7	%
Century Complete		4,584			14,104			18,688			3,638			11,304			14,942			26.0	%		24.8	%		25.1	%
Total		35,686			44,435			80,121			30,237			38,333			68,570			18.0	%		15.9	%		16.8	%
% of Total		44.5 %			55.5 %			100.0 %			44.1 %			55.9 %			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 September 30,						Nine Months Ended September 30,
		2024			2023			2024			2023
Numerator
Net income		$	83,020		$	83,150		$	231,075		$	167,906
Denominator
Weighted average common shares outstanding - basic			31,336,756			31,962,884			31,596,995			31,967,672
Dilutive effect of stock-based compensation awards			688,259			274,138			520,922			233,005
Weighted average common shares outstanding - diluted			32,025,015			32,237,022			32,117,917			32,200,677
Earnings per share:
Basic		$	2.65		$	2.60		$	7.31		$	5.25
Diluted		$	2.59		$	2.58		$	7.19		$	5.21
Adjusted earnings per share
Numerator
Net income		$	83,020		$	83,150		$	231,075		$	167,906
Income tax expense			26,892			28,849			73,789			56,850
Income before income tax expense			109,912			111,999			304,864			224,756
Inventory impairment			1,373			—			1,942			—
Impairment on other investment			—			—			7,722			—
Purchase price accounting for acquired work in process inventory			3,446			—			5,999			—
Adjusted income before income tax expense			114,731			111,999			320,527			224,756
Adjusted income tax expense(1)			(27,769)			(28,849)			(77,580)			(56,850)
Adjusted net income		$	86,962		$	83,150		$	242,947		$	167,906
Denominator - Diluted			32,025,015			32,237,022			32,117,917			32,200,677
Adjusted diluted earnings per share		$	2.72		$	2.58		$	7.56		$	5.21

(1)

The tax rates used in calculating adjusted net income for the three and nine months ended September 30, 2024 were 24.2%, respectively, which are reflective of the Company's GAAP tax rate for the nine months ended September 30, 2024.  The tax rates used in calculating adjusted net income for the three and nine months ended September 30, 2023 were 25.8% and 25.3%, respectively, which are reflective of the Company's GAAP tax rates for the applicable periods.

 

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 September 30,
		2024			%			2023			%
Home sales revenues		$	1,116,125		100.0	%		$	865,065		100.0	%
Cost of home sales revenues			(873,081)		(78.2)	%			(652,411)		(75.4)	%
Inventory impairment			(1,373)		(0.1)	%			—		—	%
Homebuilding gross margin			241,671		21.7	%			212,654		24.6	%
Add: Inventory impairment			1,373		0.1	%			—		—	%
Add: Interest in cost of home sales revenues			16,492		1.5	%			10,652		1.2	%
Adjusted homebuilding gross margin excluding interest and inventory impairment		$	259,536		23.3	%		$	223,306		25.8	%
Add: Purchase price accounting for acquired work in process inventory			3,446		0.3	%			—		—	%
Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory		$	262,982		23.6	%		$	223,306		25.8	%
		Nine Months Ended September 30,
		2024			%			2023			%
Home sales revenues		$	3,055,941		100.0	%		$	2,419,025		100.0	%
Cost of home sales revenues			(2,386,208)		(78.1)	%			(1,910,630)		(79.0)	%
Inventory impairment			(1,942)		(0.1)	%			—		—	%
Homebuilding gross margin			667,791		21.9	%			508,395		21.0	%
Add: Inventory impairment			1,942		0.1	%			—		—	%
Add: Interest in cost of home sales revenues			42,117		1.4	%			30,729		1.3	%
Adjusted homebuilding gross margin excluding interest and inventory impairment		$	711,850		23.3	%		$	539,124		22.3	%
Add: Purchase price accounting for acquired work in process inventory			5,999		0.2	%			—		—	%
Adjusted homebuilding gross margin excluding interest, inventory impairment and purchase price accounting for acquired work in process inventory		$	717,849		23.5	%		$	539,124		22.3	%

 

Century Communities, Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

EBITDA and Adjusted EBITDA 

EBITDA and adjusted EBITDA are non-GAAP financial measures we use as a supplemental measure in evaluating operating performance. We define EBITDA as net income before (i) income tax expense, (ii) interest in cost of home sales revenues, (iii) other interest expense (income), and (iv) depreciation and amortization expense. We define adjusted EBITDA as EBITDA before loss on debt extinguishment (if applicable), 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 September 30,										Nine Months Ended September 30,
		2024			2023			% Change				2024			2023			% Change
Net income		$	83,020		$	83,150			(0.2)	%		$	231,075		$	167,906			37.6	%
Income tax expense			26,892			28,849			(6.8)	%			73,789			56,850			29.8	%
Interest in cost of home sales revenues			16,492			10,652			54.8	%			42,117			30,729			37.1	%
Interest income			(369)			(1,489)			(75.2)	%			(2,693)			(6,431)			(58.1)	%
Depreciation and amortization expense			6,272			4,106			52.8	%			17,437			11,019			58.2	%
EBITDA			132,307			125,268			5.6	%			361,725			260,073			39.1	%
Inventory impairment			1,373			—			NM				1,942			—			NM
Impairment on other investment			—			—			NM				7,722			—			NM
Purchase price accounting for acquired work in process inventory			3,446			—			NM				5,999			—			NM
Adjusted EBITDA		$	137,126		$	125,268			9.5	%		$	377,388		$	260,073			45.1	%

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)

		September 30,			December 31,
		2024			2023
Notes payable		$	1,118,943		$	1,062,471
Revolving line of credit			414,000			—
Construction loan agreements			(110,337)			(44,895)
Total homebuilding debt			1,422,606			1,017,576
Total stockholders' equity			2,547,502			2,386,936
Total capital		$	3,970,108		$	3,404,512
Homebuilding debt to capital			35.8 %			29.9 %
Total homebuilding debt		$	1,422,606		$	1,017,576
Cash and cash equivalents			(149,155)			(226,150)
Cash held in escrow			(70,755)			(101,845)
Net homebuilding debt			1,202,696			689,581
Total stockholders' equity			2,547,502			2,386,936
Net capital		$	3,750,198		$	3,076,517
Net homebuilding debt to net capital			32.1 %			22.4 %

 

Contact Information: 
Tyler Langton, Senior Vice President of Investor Relations
303-268-8345
Investorrelations@CenturyCommunities.com

Category:
Earnings

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SOURCE Century Communities, Inc.

FAQ

What was Century Communities (CCS) revenue in Q3 2024?

Century Communities reported total revenues of $1.1 billion in Q3 2024, with home sales revenues also at $1.1 billion, representing a 29% increase year-over-year.

How many homes did Century Communities (CCS) deliver in Q3 2024?

Century Communities delivered 2,834 homes in Q3 2024, a company record for the third quarter, representing a 25% increase year-over-year.

What is Century Communities (CCS) updated guidance for 2024?

Century Communities increased its 2024 guidance to 10,900-11,300 home deliveries and home sales revenues of $4.3-4.4 billion.

What was Century Communities (CCS) net income in Q3 2024?

Century Communities reported net income of $83.0 million, or $2.59 per diluted share, with adjusted net income of $87.0 million, or $2.72 per diluted share.