Century Communities Reports Third Quarter 2024 Results
- 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
