EX-99.1 2 ccs-20190331xex99_1.htm EX-99.1 CCS 03312019 Earnings Release 8-K Exhibit 991





Picture 8





Century Communities Reports First Quarter 2019 Results

- Home Sales Revenues Increased 33% to $523.3 Million –

-  Home Deliveries Grew 77% to 1,663 Homes  –

- Net New Homes Contracts Increased 35% to a Record 1,858 Homes –

- Homes in Backlog Improved 35% to 2,376 –

- Introduces 2019 Outlook for Growth in Revenue and Deliveries -



Greenwood Village, Colorado (May 2, 2019) – Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its first quarter ended March 31, 2019.

First Quarter 2019 Highlights Compared to First Quarter 2018

·

Adjusted net income of $18.4 million, or $0.60 per diluted share and net income of $17.1 million, or $0.56 per diluted share

·

Home sales revenues increased 33% to $523.3 million

·

Selling, general & administrative expense (“SG&A”) as a percent of home sales revenues improved by 110 basis points to 13.2%

·

Home deliveries grew 77% to 1,663 homes

·

Net new home contracts increased 35% to a record 1,858 homes

·

Homes in backlog improved 35% to 2,376 homes

·

Adjusted EBITDA of $40.4 million



Dale Francescon, Co-Chief Executive Officer, stated, “The first quarter ended significantly stronger than it started, where we experienced an overall stabilization in demand trends and better affordability, compared to relatively muted buyer activity in the latter half of 2018 which continued into the beginning of this year.  Our focus remains on deepening our platform and driving additional operational efficiencies. Our concentration in markets with sound economic fundamentals combined with our lower price point product offerings throughout our business well positions us to deliver further earnings growth and generate enhanced returns for our stockholders.”



Rob Francescon, Co-Chief Executive Officer, said, “We are encouraged by the pick-up in buyer activity in recent months which allowed us to end the quarter with a record number of net new contracts.  Our continued expansion of Wade Jurney Homes’ asset-light, lower price point operations into new geographies should contribute more meaningfully to earnings as we progress through the year. We view our significant focus on entry level buyers as a catalyst for ongoing success in the quarters to come as our national platform and expanded scale allows us to continue to drive enhancements and efficiencies throughout our business.”



First Quarter 2019 Results

Home sales revenues for the first quarter 2019 increased 33% to $523.3 million, compared to $394.8 million for the prior year quarter. The growth in home sales revenues was primarily attributable to a 77% increase in home deliveries to 1,663 homes compared to 941 homes for the prior year quarter, partly attributable to the acquisition of Wade Jurney Homes. Excluding the impact from the acquisition, deliveries from the Century Communities branded business increased 13% year over year. Average sales price of home deliveries for the first quarter 2019 was $314,700, compared to $419,600 in the prior year quarter, consistent with the Company’s expansion of its offering of entry level homes.

 

Net new home contracts in the first quarter 2019 increased 35% to a record 1,858 homes, compared to 1,377 homes in the prior year quarter, attributable to the addition of Wade Jurney Homes. At the end of the first quarter 2019, the Company had 2,376 homes in backlog, an increase of 35% compared to 1,757 homes in backlog in the prior year quarter.

Adjusted net income for the first quarter was $18.4 million, or $0.60 per diluted share, as compared to $22.5 million, or $0.75 per diluted share, for the prior year quarter. Adjusted net income excludes the impact of one-time items associated with homebuilder acquisitions. Net income for the first quarter 2019 was $17.1 million, or $0.56 per diluted share as compared to $20.0 million or $0.67 per diluted share for the prior year quarter.

Adjusted homebuilding gross margin percentage, excluding interest and purchase price accounting, was 19.8% in the first quarter 2019, as compared to 23.2% in the prior year quarter, which benefitted from a  particularly favorable product mix. Homebuilding gross margin percentage in the first quarter 2019 was 17.1%, as compared to 19.1% in the prior year quarter, largely attributable to higher incentives and product mix.  SG&A as a percent of home sales revenues improved to 13.2%, compared to 14.3% in the prior year quarter, due to process enhancements, tight cost controls, and benefits generated by our larger scale.

Financial services generated pre-tax income of $1.6 million in the first quarter 2019 as compared to $1.2 million in the prior year quarter. 



Balance Sheet and Liquidity



As of March 31, 2019, the Company had total assets of $2.3 billion, including cash of $62.8 million and inventories of $1.9 billion. Liabilities totaled $1.4 billion, which included $1.1 billion of long-term debt. As of March 31, 2019, the Company had $353.0 million of availability under its credit facility.



Full Year 2019 Outlook



David Messenger, Chief Financial Officer of the Company, commented, “We are optimistic on the prospects for continued growth in our overall business and long-term housing fundamentals. Given better visibility across our footprint during the first quarter 2019, we introduce our full year outlook for home deliveries to be in the range of 7,000 to 8,000 homes and our home sales revenues to be in the range of $2.2 billion to $2.5 billion.”



Conference Call



The Company will host a webcast and conference call on Thursday, May 2, 2019 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s first quarter 2019 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 June 2, 2019, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13689561. A replay of the webcast will be available on the Company’s website through June 2, 2019.



About Century Communities

Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder. 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 sells its Century Communities and Wade Jurney Homes in 15 states across the West, Mountain, Texas and Southeast U.S. regions 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 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,” “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 2019.  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, 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.  

 

Picture 7



Century Communities, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)



(in thousands, except share and per share amounts)





 



 

 

 

 

 

 



 

Three months ended March 31,



 

2019

 

2018

Revenues

 

 

 

 

 

 

Home sales revenues

 

$

 523,302 

 

$

 394,831 

Land sales and other revenues

 

 

 1,355 

 

 

 1,459 



 

 

 524,657 

 

 

 396,290 

Financial services revenue

 

 

 8,400 

 

 

 5,556 

Total revenues

 

 

 533,057 

 

 

 401,846 

Homebuilding Cost of Revenues

 

 

 

 

 

 

Cost of home sales revenues

 

 

 (433,757)

 

 

 (319,583)

Cost of land sales and other revenues

 

 

 (614)

 

 

 (877)



 

 

 (434,371)

 

 

 (320,460)

Financial services costs

 

 

 (6,829)

 

 

 (4,395)

Selling, general, and administrative

 

 

 (68,936)

 

 

 (56,522)

Acquisition expense

 

 

 —

 

 

 (173)

Equity in income of unconsolidated subsidiaries

 

 

 —

 

 

 3,168 

Other income (expense)

 

 

 76 

 

 

 (357)

Income before income tax expense

 

 

 22,997 

 

 

 23,107 

Income tax expense

 

 

 (5,880)

 

 

 (3,088)

Net income

 

$

 17,117 

 

$

 20,019 



 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

$

 0.57 

 

$

 0.68 

Diluted

 

$

 0.56 

 

$

 0.67 

Weighted average common shares outstanding:

 

 

 

 

 

 

Basic

 

 

 30,203,243 

 

 

 29,515,531 

Diluted

 

 

 30,444,276 

 

 

 29,833,729 



 

Picture 6



Century Communities, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)



(in thousands, except share amounts)









 

 

 

 

 

 



 

March 31,

 

December 31,



 

2019

 

2018

Assets

 

 

 

 

 

Cash and cash equivalents

 

$

 38,115 

 

$

 32,902 

Cash held in escrow

 

 

 24,664 

 

 

 24,344 

Accounts receivable

 

 

 12,436 

 

 

 13,464 

Inventories

 

 

 1,943,792 

 

 

 1,848,243 

Mortgage loans held for sale

 

 

 98,591 

 

 

 114,074 

Prepaid expenses and other assets

 

 

 123,248 

 

 

 138,717 

Property and equipment, net

 

 

 33,471 

 

 

 33,258 

Deferred tax assets, net

 

 

 13,591 

 

 

 13,763 

Amortizable intangible assets, net

 

 

 4,762 

 

 

 5,095 

Goodwill

 

 

 30,395 

 

 

 30,395 

Total assets

 

$

 2,323,065 

 

$

 2,254,255 

Liabilities and stockholders' equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

 74,075 

 

$

 89,907 

Accrued expenses and other liabilities

 

 

 208,846 

 

 

 213,157 

Notes payable

 

 

 786,872 

 

 

 784,777 

Revolving line of credit

 

 

 287,000 

 

 

 202,500 

Mortgage repurchase facilities

 

 

 90,866 

 

 

 104,555 

Total liabilities

 

 

 1,447,659 

 

 

 1,394,896 

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, 30,304,081 and 30,154,791 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively

 

 

 303 

 

 

 302 

Additional paid-in capital

 

 

 593,966 

 

 

 595,037 

Retained earnings

 

 

 281,137 

 

 

 264,020 

Total stockholders' equity

 

 

 875,406 

 

 

 859,359 

Total liabilities and stockholders' equity

 

$

 2,323,065 

 

$

 2,254,255 





 

Picture 5



Century Communities, Inc.

Homebuilding Operational Data



Net New Home Contracts







 

 

 

 

 

 

 

 

 



 

Three months ended



 

March 31,



 

2019

 

 

2018

 

 

% Change

West

 

 203 

 

 

 216 

 

 

 (6.0)

%

Mountain

 

 454 

 

 

 545 

 

 

 (16.7)

%

Texas

 

 229 

 

 

 149 

 

 

 53.7 

%

Southeast

 

 345 

 

 

 468 

 

 

 (26.3)

%

Wade Jurney Homes

 

 627 

 

 

 —

 

 

NM

 

Total

 

 1,858 

 

 

 1,378 

 

 

 34.8 

%



NM – Not meaningful



Home Deliveries 



(dollars in thousands)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended March 31,

 

 

 

 

 

 



 

2019

 

2018

 

% Change

 



 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

 

Homes

 

Average Sales Price

West

 

 200 

 

$

 560.3 

 

 200 

 

$

 594.6 

 

 —

%

 

 (5.8)

%

Mountain

 

 367 

 

$

 432.2 

 

 343 

 

$

 420.6 

 

 7.0 

%

 

 2.8 

%

Texas

 

 166 

 

$

 303.7 

 

 108 

 

$

 349.9 

 

 53.7 

%

 

 (13.2)

%

Southeast

 

 335 

 

$

 336.2 

 

 290 

 

$

 323.7 

 

 15.5 

%

 

 3.9 

%

Wade Jurney Homes

 

 595 

 

$

 150.5 

 

 —

 

$

 —

 

NM

 

 

NM

 

Total / Weighted Average

 

 1,663 

 

$

 314.7 

 

 941 

 

$

 419.6 

 

 76.7 

%

 

 (25.0)

%



NM – Not meaningful

 

Picture 10 

Century Communities, Inc.

Homebuilding Operational Data





Selling Communities



 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

Selling communities at period end

 

As of March 31,

 

 

Increase/(Decrease)



 

2019

 

2018

 

 

Amount

 

% Change



 

 

 

 

 

 

 

 

 

 

West

 

 21 

 

 14 

 

 

 7 

 

 50.0 

%

Mountain

 

 43 

 

 31 

 

 

 12 

 

 38.7 

%

Texas

 

 20 

 

 29 

 

 

 (9)

 

 (31.0)

%

Southeast

 

 41 

 

 51 

 

 

 (10)

 

 (19.6)

%

Wade Jurney Homes

 

N/A 

 

N/A

 

 

N/A

 

N/A

 

Total

 

 125 

 

 125 

 

 

 —

 

 —

%



NM – Not meaningful



Backlog



(dollars in thousands)





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of March 31,

 

 

 

 

 

 

 

 

 



 

2019

 

2018

 

% Change

 



 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

 

Homes

 

Dollar Value

 

Average Sales Price

West

 

 221 

 

$

 113,639 

 

$

 514.2 

 

 286 

 

$

 176,351 

 

$

 616.6 

 

 (22.7)

%

 

 (35.6)

%

 

 (16.6)

%

Mountain

 

 488 

 

 

 215,296 

 

$

 440.9 

 

 657 

 

 

 282,132 

 

$

 429.4 

 

 (25.7)

%

 

 (23.7)

%

 

 2.7 

%

Texas

 

 244 

 

 

 82,934 

 

$

 339.9 

 

 256 

 

 

 92,726 

 

$

 362.2 

 

 (4.7)

%

 

 (10.6)

%

 

 (6.2)

%

Southeast

 

 480 

 

 

 160,833 

 

$

 335.1 

 

 558 

 

 

 186,806 

 

$

 334.8 

 

 (14.0)

%

 

 (13.9)

%

 

 0.1 

%

Wade Jurney Homes

 

 943 

 

 

 145,743 

 

$

 154.6 

 

 —

 

 

 —

 

$

 —

 

NM

 

 

NM

 

 

NM

 

Total / Weighted Average

 

 2,376 

 

$

 718,443 

 

$

 302.3 

 

 1,757 

 

$

 738,015 

 

$

 420.0 

 

 35.2 

%

 

 (2.7)

%

 

 (28.0)

%



NM – Not meaningful



Lot Inventory





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

As of March 31,

 

 

 

 

 

 

 

 

 



 

2019

 

2018

 

% Change

 



 

 

 

 

 

 



 

Owned

 

Controlled

 

Total

 

Owned

 

Controlled

 

Total

 

Owned

 

Controlled

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West

 

 3,377 

 

 1,575 

 

 4,952 

 

 3,826 

 

 1,976 

 

 5,802 

 

 (11.7)

%

 

 (20.3)

%

 

 (14.7)

%

Mountain

 

 5,314 

 

 5,904 

 

 11,218 

 

 4,863 

 

 4,099 

 

 8,962 

 

 9.3 

%

 

 44.0 

%

 

 25.2 

%

Texas

 

 3,819 

 

 1,439 

 

 5,258 

 

 2,372 

 

 4,141 

 

 6,513 

 

 61.0 

%

 

 (65.2)

%

 

 (19.3)

%

Southeast

 

 4,853 

 

 2,231 

 

 7,084 

 

 4,840 

 

 4,216 

 

 9,056 

 

 0.3 

%

 

 (47.1)

%

 

 (21.8)

%

Wade Jurney Homes

 

 3,237 

 

 6,183 

 

 9,420 

 

 —

 

 —

 

 —

 

NM

 

 

NM

 

 

NM

 

Total

 

 20,600 

 

 17,332 

 

 37,932 

 

 15,901 

 

 14,432 

 

 30,333 

 

 29.6 

%

 

 20.1 

%

 

 25.1 

%



NM – Not meaningful

 





Picture 2



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)





Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS) is a non-GAAP financial measure that we believe is 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 acquisition costs and purchase price accounting for acquired work in process from the calculation of reported EPS.



Adjusted Diluted Earnings Per Common Share



(in thousands, except share and per share amounts)





 

 

 

 

 



Three months ended



March 31,



2019

 

2018

Numerator

 

 

 

 

 

Net income

$

 17,117 

 

$

 20,019 

Less: Undistributed earnings allocated to participating securities

 

 —

 

 

 (49)

Net income allocable to common stockholders

$

 17,117 

 

$

 19,970 

Denominator

 

 

 

 

 

Weighted average common shares outstanding - basic

 

 30,203,243 

 

 

 29,515,531 

Dilutive effect of restricted stock units

 

 241,033 

 

 

 318,198 

Weighted average common shares outstanding - diluted

 

 30,444,276 

 

 

 29,833,729 

Earnings per share:

 

 

 

 

 

Basic

$

 0.57 

 

$

 0.68 

Diluted

$

 0.56 

 

$

 0.67 



 

 

 

 

 

Adjusted Earnings per share

 

 

 

 

 

Numerator

 

 

 

 

 

Income before income tax expense

$

 22,997 

 

$

 23,107 

Purchase price accounting for acquired work in process inventory

 

 1,724 

 

 

 7,269 

Acquisition expense

 

 -

 

 

 173 

Adjusted income before income tax expense

 

 24,721 

 

 

 30,549 

Adjusted income tax expense(1)

 

 (6,321)

 

 

 (8,096)

Adjusted net income

 

 18,400 

 

 

 22,453 

Less: Adjusted undistributed earnings allocated to participating securities

 

 —

 

 

 (55)

Adjusted net income allocable to common stockholders

$

 18,400 

 

$

 22,398 



 

 

 

 

 

Denominator - Diluted

 

 30,444,276 

 

 

 29,833,729 



 

 

 

 

 

Adjusted diluted earnings per share

$

 0.60 

 

$

 0.75 



(1)

The tax rate used in calculating adjusted net income for the three months ended March 31, 2019 was our GAAP tax rate of 25.6%. For the three months ended March 31, 2018 the tax rate utilized was 26.5% which is reflective of the Company’s GAAP tax rate for the applicable period adjusted for certain discrete items.



 

Picture 9



Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)



Adjusted homebuilding gross margin excluding 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 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 March 31,



 

 

 

 

 

 

 

 

 

 

 

 



 

2019

 

% 

 

2018

 

% 



 

 

 

 

 

 

 

 

 

 

 

 

Home sales revenues

 

$

 523,302 

 

 100.0 

%

 

$

 394,831 

 

 100.0 

%

Cost of home sales revenues

 

 

 (433,757)

 

 (82.9)

%

 

 

 (319,583)

 

 (80.9)

%

Gross margin from home sales

 

 

 89,545 

 

 17.1 

%

 

 

 75,248 

 

 19.1 

%

Add: Interest in cost of home sales revenues

 

 

 12,587 

 

 2.4 

%

 

 

 8,959 

 

 2.3 

%

Adjusted homebuilding gross margin excluding interest

 

 

 102,132 

 

 19.5 

%

 

 

 84,207 

 

 21.3 

%

Add: Purchase price accounting for acquired work in process inventory

 

 

 1,724 

 

 0.3 

%

 

 

 7,269 

 

 1.8 

%

Adjusted homebuilding gross margin excluding interest and purchase price accounting for acquired work in process inventory

 

$

 103,856 

 

 19.8 

%

 

$

 91,476 

 

 23.2 

%







 



Picture 1



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) depreciation and amortization expense, and (v) 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 March 31,

 



 

2019

 

2018

 

% Change

Net income

 

$

 17,117 

 

$

 20,019 

 

 

 (14.5)

%

Income tax expense

 

 

 5,880 

 

 

 3,088 

 

 

 90.4 

%

Interest in cost of home sales revenues

 

 

 12,587 

 

 

 8,959 

 

 

 40.5 

%

Interest expense (income)

 

 

 15 

 

 

 2 

 

 

 650.0 

%

Depreciation and amortization expense

 

 

 3,074 

 

 

 2,726 

 

 

 12.8 

%

EBITDA

 

 

 38,673 

 

 

 34,794 

 

 

 11.1 

%

Purchase price accounting for acquired work in process inventory

 

 

 1,724 

 

 

 7,269 

 

 

 (76.3)

%

Purchase price accounting for investment in unconsolidated subsidiaries outside basis

 

 

 —

 

 

 30 

 

 

 (100.0)

%

Acquisition expense

 

 

 —

 

 

 173 

 

 

 (100.0)

%

Adjusted EBITDA

 

$

 40,397 

 

$

 42,266 

 

 

 (4.4)

%



 

Picture 4

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 (senior notes payable and revolving line of credit less cash held in escrow and cash and cash equivalents) 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)



 

 

 

 

 

 



 

March 31,

 

December 31,



 

2019

 

2018

Total homebuilding debt

 

$

 1,073,872 

 

$

 987,277 

Total stockholders' equity

 

 

 875,406 

 

 

 859,359 

Total capital

 

$

 1,949,278 

 

$

 1,846,636 

Debt to capital

 

 

 55.1% 

 

 

 53.5% 



 

 

 

 

 

 

Total homebuilding debt

 

$

 1,073,872 

 

$

 987,277 

Cash and cash equivalents

 

 

 (38,115)

 

 

 (32,902)

Cash held in escrow

 

 

 (24,664)

 

 

 (24,344)

Net debt

 

 

 1,011,093 

 

 

 930,031 

Total stockholders' equity

 

 

 875,406 

 

 

 859,359 

Net capital

 

$

 1,886,499 

 

$

 1,789,390 



 

 

 

 

 

 

Net homebuilding debt to net capital

 

 

 53.6% 

 

 

 52.0% 







Contact Information:

Investor Relations:

303-268-8398

InvestorRelations@CenturyCommunities.com