10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-36491

Century Communities, Inc.

(Exact name of registrant as specified in its charter)

Delaware	68-0521411
(State or other jurisdiction of ‎incorporation or organization)	(I.R.S. Employer ‎Identification No.)
8390 East Crescent Parkway, Suite 650 ‎Greenwood Village, CO	80111
(Address of principal executive offices)	(Zip Code)

(Registrant’s telephone number, including area code): (303) 770-8300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common stock, par value $0.01 per share	CCS	NYSE

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	x	Accelerated Filer	o
Non-accelerated Filer	o	Smaller Reporting Company	o
		Emerging Growth Company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

On October 25, 2019, 31,347,379 shares of common stock, par value $0.01 per share, were outstanding.  

CENTURY COMMUNITIES, INC.

FORM 10-Q

For the Three and Nine Months Ended September 30, 2019

Index

	Page No.
PART I
Item 1. Unaudited Condensed Consolidated Financial Statements
Unaudited Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018	3
Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018	4
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018	5
Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended September 30, 2019 and 2018	6
Notes to the Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3. Quantitative and Qualitative Disclosures About Market Risk	38
Item 4. Controls and Procedures	38
PART II
Item 1. Legal Proceedings	39
Item 1A. Risk Factors	39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3. Defaults Upon Senior Securities	39
Item 4. Mine Safety Disclosures	39
Item 5. Other Information	39
Item 6. Exhibits	40
Signatures	41

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PART I

ITEM 1.     FINANCIAL STATEMENTS.

Century Communities, Inc.

Condensed Consolidated Balance Sheets

As of September 30, 2019 and December 31, 2018

(in thousands, except share amounts)

	September 30,		December 31,
	2019		2018
Assets	(unaudited)
Cash and cash equivalents	$	38,508	$	32,902
Cash held in escrow		30,362		24,344
Accounts receivable		17,929		13,464
Inventories		2,093,493		1,848,243
Mortgage loans held for sale		95,321		112,394
Prepaid expenses and other assets		129,925		140,397
Property and equipment, net		35,258		33,258
Deferred tax assets, net		14,277		13,763
Amortizable intangible assets, net		4,094		5,095
Goodwill		30,395		30,395
Total assets	$	2,489,562	$	2,254,255
Liabilities and stockholders' equity
Liabilities:
Accounts payable	$	78,695	$	89,907
Accrued expenses and other liabilities		206,818		213,157
Notes payable		896,272		784,777
Revolving line of credit		278,800		202,500
Mortgage repurchase facilities		77,798		104,555
Total liabilities		1,538,383		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, 31,249,373 and 30,154,791 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively		312		302
Additional paid-in capital		627,211		595,037
Retained earnings		323,656		264,020
Total stockholders' equity		951,179		859,359
Total liabilities and stockholders' equity	$	2,489,562	$	2,254,255

See Notes to Unaudited Condensed Consolidated Financial Statements

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Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2019 and 2018

(in thousands, except share and per share amounts)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenues
Homebuilding revenues
Home sales revenues	$	573,860	$	552,876	$	1,705,798	$	1,469,871
Land sales and other revenues		6,083		1,131		8,837		4,304
		579,943		554,007		1,714,635		1,474,175
Financial services revenue		10,419		7,722		28,734		21,292
Total revenues		590,362		561,729		1,743,369		1,495,467
Homebuilding cost of revenues
Cost of home sales revenues		(469,834)		(460,144)		(1,407,519)		(1,206,924)
Cost of land sales and other revenues		(4,624)		(1,093)		(6,115)		(3,010)
		(474,458)		(461,237)		(1,413,634)		(1,209,934)
Financial services costs		(8,174)		(6,056)		(22,750)		(15,836)
Selling, general and administrative		(72,834)		(70,975)		(216,987)		(191,130)
Loss on debt extinguishment		—		—		(10,832)		—
Acquisition expense		—		(58)		—		(395)
Equity in income of unconsolidated subsidiaries		—		—		—		14,849
Other income (expense)		(56)		(545)		(499)		(553)
Income before income tax expense		34,840		22,858		78,667		92,468
Income tax expense		(7,816)		(5,810)		(19,031)		(22,207)
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33
Weighted average common shares outstanding:
Basic		30,587,487		30,232,376		30,378,860		29,885,858
Diluted		30,906,235		30,554,881		30,641,194		30,189,058

See Notes to Unaudited Condensed Consolidated Financial Statements

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Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2019 and 2018

(in thousands)

	Nine Months Ended September 30,
	2019		2018
Operating activities
Net income	$	59,636	$	70,261
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		9,793		8,803
Stock-based compensation expense		11,391		10,135
Loss on debt extinguishment		10,832		—
Deferred income taxes		(514)		(804)
Distributions from unconsolidated subsidiaries		—		7,432
Equity in income of unconsolidated subsidiaries		—		(14,849)
(Gain) loss on disposition of assets		846		1,399
Changes in assets and liabilities:
Cash held in escrow		(6,018)		6,077
Accounts receivable		(4,465)		(13,324)
Inventories		(215,771)		(243,355)
Prepaid expenses and other assets		33,346		(32,640)
Accounts payable		(11,212)		3,267
Accrued expenses and other liabilities		(53,901)		(9,285)
Mortgage loans held for sale		17,073		(10,114)
Net cash provided by (used in) operating activities		(148,964)		(216,997)
Investing activities
Purchases of property and equipment		(11,633)		(11,893)
Business combinations net of acquired cash		—		(28,036)
Other investing activities		78		272
Net cash provided by (used in) investing activities		(11,555)		(39,657)
Financing activities
Borrowings under revolving credit facilities		1,184,800		520,000
Payments on revolving credit facilities		(1,108,500)		(284,000)
Proceeds from issuance of senior notes due 2027		500,000		—
Extinguishment of senior notes due 2022		(391,942)		—
Proceeds from issuance of insurance premium notes and other		12,629		11,838
Principal payments on insurance notes payable and other		(19,275)		(2,173)
Extinguishments of debt assumed in business combination		—		(94,231)
Debt issuance costs		(6,075)		(3,521)
Net payments on mortgage repurchase facilities		(26,757)		9,008
Net proceeds from issuances of common stock		25,817		31,230
Repurchases of common stock upon vesting of stock based compensation		(3,588)		(5,483)
Repurchases of common stock under our stock repurchase program		(1,439)		—
Net cash provided by (used in) financing activities		165,670		182,668
Net increase (decrease)	$	5,151	$	(73,986)
Cash and cash equivalents and Restricted cash
Beginning of period		36,441		93,713
End of period	$	41,592	$	19,727
Supplemental cash flow disclosure
Cash paid for income taxes	$	20,722	$	39,326
Cash and cash equivalents and Restricted cash
Cash and cash equivalents	$	38,508	$	15,927
Restricted cash (Note 6)		3,084		3,800
Cash and cash equivalents and Restricted cash	$	41,592	$	19,727

See Notes to Unaudited Condensed Consolidated Financial Statements

‎

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Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2019 and 2018

(in thousands)

Three Months Ended September 30, 2019 and 2018

	Common Stock
	Shares	Amount		Additional Paid-In Capital		Retained Earnings		Total Stockholders' Equity
Balance at June 30, 2019	30,439	$	304	$	600,293	$	296,632	$	897,229
Issuance of common stock, net	799		8		23,146		—		23,154
Vesting of restricted stock units	11		—		(151)		—		(151)
Stock-based compensation expense	—		—		3,923		—		3,923
Net income	—		—		—		27,024		27,024
Balance at September 30, 2019	31,249	$	312	$	627,211	$	323,656	$	951,179
Balance at June 30, 2018	30,119	$	301	$	582,627	$	220,778	$	803,706
Issuance of common stock, net	600		6		16,915		—		16,921
Vesting of restricted stock units	40		1		(695)		—		(694)
Stock-based compensation expense	—		—		3,812		—		3,812
Net income	—		—		—		17,048		17,048
Balance at September 30, 2018	30,759	$	308	$	602,659	$	237,826	$	840,793

Nine Months Ended September 30, 2019 and 2018

	Common Stock
	Shares	Amount		Additional Paid-In Capital		Retained Earnings		Total Stockholders' Equity
Balance at December 31, 2018	30,155	$	302	$	595,037	$	264,020	$	859,359
Issuance of common stock, net	899		9		25,808		—		25,817
Repurchase of common stock	(83)		(1)		(1,438)		—		(1,439)
Vesting of restricted stock units	278		2		(3,587)		—		(3,585)
Stock-based compensation expense	—		—		11,391		—		11,391
Net income	—		—		—		59,636		59,636
Balance at September 30, 2019	31,249	$	312	$	627,211	$	323,656	$	951,179
Balance at December 31, 2017	29,503	$	295	$	566,790	$	168,148	$	735,233
Adoption of ASC 606	—		—		—		(583)		(583)
Issuance of common stock, net	1,086		11		31,219		—		31,230
Vesting of restricted stock units	170		2		(5,483)		—		(5,481)
Stock-based compensation expense	—		—		10,133		—		10,133
Net income	—		—		—		70,261		70,261
Balance at September 30, 2018	30,759	$	308	$	602,659	$	237,826	$	840,793

See Notes to Unaudited Condensed Consolidated Financial Statements

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Century Communities, Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

September 30, 2019

1. Basis of Presentation

Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land.  We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes. Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment.

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH, LLC (which we refer to as “WJH” or “Wade Jurney Homes”) for $37.5 million. On the acquisition date, WJH had operations in Alabama, Florida, Georgia, North Carolina and South Carolina.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2018, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We currently do not have any variable interest entities in which we are deemed the primary beneficiary. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Reclassifications

In order to conform to current year presentation, mortgage loans held for investment and derivative assets of $1.0 million and $0.7 million, respectively, have been reclassified to prepaid expenses and other assets from mortgage loans held for sale on the condensed consolidated balance sheets as of December 31, 2018.

Recently Adopted Accounting Standards

Leases

The Financial Accounting Standards Board (which we refer to as “FASB”) issued Accounting Standards Codification (ASC) 842, Leases (which we refer to as “ASC 842”) which requires the recognition of lease assets and lease liabilities by lessees for most leases.  ASC 842 is effective for the Company beginning January 1, 2019 and interim periods within the annual period.  We adopted ASC 842 under

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a modified retrospective approach using the option to apply the transition provisions on the effective date January 1, 2019. The modified retrospective approach allows the Company to carry forward our historical lease classification, and to present historical periods under legacy lease accounting guidance. The Company’s leases primarily consist of leases for office space, and computer and office equipment where we are the lessee.

ASC 842 includes several practical expedients which we elected upon adoption including to (a) not reassess the lease classification for any expired or existing leases and (b) not reassess whether previously capitalized initial direct costs qualify for capitalization under ASC 842. Additionally, we elected to utilize hindsight when determining the lease term.

The adoption of ASC 842 resulted in the establishment of a right of use asset of $17.7 million and a lease liability of $18.7 million on our condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not impact stockholders’ equity.

Recently Issued Accounting Standards

In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The standard changes the accounting for credit losses for most financial assets and certain other instruments. Credit losses which have historically been accounted for on an incurred loss basis will now be accounted for using an estimate of lifetime expected credit losses. This will generally result in earlier recognition of allowances for credit losses. The standard is effective for the Company on January 1, 2020. Upon adoption, the standard will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We anticipate ASU 2016-13 will apply to certain of our loans held for investment and certain receivable balances. We do not anticipate this standard having a material effect on the consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company January 1, 2020. Upon adoption, the Company has elected to apply the standard prospectively. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

2. Reporting Segments

Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 17 states. We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our Wade Jurney Homes brand currently has operations in 11 states and is managed separately from our four geographic regions. Accordingly, it is considered a separate operating segment.

The management of our four geographic regions and Wade Jurney Homes reports to our chief operating decision makers (which we refer to as “CODMs”), the Co-Chief Executive Officers of our Company. The CODMs review the results of our operations, including total revenue and income before income tax expense to determine profitability and to allocate resources. Accordingly, we have presented our homebuilding operations as the following five reportable segments:

West (California and Washington)

Mountain (Colorado, Nevada and Utah)

Texas

Southeast (Georgia, North Carolina, South Carolina and Tennessee)

Wade Jurney Homes (Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Michigan, North Carolina, Ohio, South Carolina, and Texas)

We have also identified our Financial Services operations, which provide mortgage, title, and insurance services to our homebuyers, as a sixth reportable segment. Our Corporate segment is a non-operating segment, as it serves to support our homebuilding, and to a lesser extent our financial services operations, through functions, such as our executive, finance, treasury, human resources, accounting and legal departments.  The following table summarizes total revenue and income before income tax expense by segment (in thousands): 

‎

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue:
West	$	116,874	$	105,949	$	364,220	$	354,087
Mountain		171,617		162,912		510,693		488,928
Texas		68,812		56,220		180,820		157,793
Southeast		118,610		141,458		356,236		360,653
Wade Jurney Homes		104,030		87,468		302,666		112,714
Financial Services		10,419		7,722		28,734		21,292
Corporate		—		—		—		—
Total revenue	$	590,362	$	561,729	$	1,743,369	$	1,495,467
Income (loss) before income tax expense:
West	$	9,013	$	7,478	$	27,634	$	29,494
Mountain		20,552		18,753		62,386		61,995
Texas		8,290		3,539		17,626		10,319
Southeast		7,079		10,401		17,467		24,106
Wade Jurney Homes		6,032		451		18,323		265
Financial Services		2,245		1,666		5,984		5,456
Corporate		(18,371)		(19,430)		(70,753)		(39,167)
Total income before income tax expense	$	34,840	$	22,858	$	78,667	$	92,468

The following table summarizes total assets by operating segment (in thousands):

	September 30,		December 31,
	2019		2018
West	$	625,085	$	502,381
Mountain		674,894		621,757
Texas		222,819		209,550
Southeast		455,289		448,681
Wade Jurney		287,923		204,925
Financial Services		144,682		146,710
Corporate		78,870		120,251
Total assets	$	2,489,562	$	2,254,255

Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, prepaid insurance, and deferred financing costs on our revolving line of credit.

3. Business Combinations

WJH, LLC - Wade Jurney Homes

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH for $37.5 million, whereby WJH became a 100% owned subsidiary of the Company. We initially acquired a 50% ownership interest in WJH in November 2016 as part of a joint venture, which was accounted for under the equity method of accounting. Our Wade Jurney Homes brand targets first time homebuyers in markets which are traditionally underserved by new homebuilders, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. The acquired assets primarily include homes under construction that are in various stages of completion and are geographically dispersed. We determined that the fair value of the gross assets acquired was not concentrated in a single identifiable asset or group of similar identifiable assets. As the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single-family residences, we concluded that the acquisition represents a business combination. We incurred $0.4 million in acquisition costs.

Authoritative guidance on accounting for business combinations requires that an acquirer re-measure its previously held equity interest in the acquisition at its acquisition date fair value and recognize the resulting gain or loss in earnings. As such, we valued our previously held equity interest in WJH at June 14, 2018 at $35.6 million, which was inclusive of an estimated discount for lack of control of $1.9 million, and recognized a gain of $7.2 million during the nine months ended September 30, 2018.

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The following table outlines the total consideration transferred, inclusive of cash acquired and the fair value of our previously held equity interest (in thousands):

Cash consideration transferred for 50% ownership interest	$	37,500
Previously held equity interest acquisition date fair value		35,625
Net assets acquired	$	73,125

The following table summarizes our estimates of the assets acquired and liabilities assumed as of the acquisition date (in thousands):  

Cash and cash equivalents	$	9,464
Cash held in escrow		260
Accounts receivable		1,042
Inventories		156,828
Prepaid expenses and other assets		7,710
Amortizable intangible assets, net		3,600
Goodwill		3,317
	$	182,221
Accounts payable	$	12,516
Accrued expenses and other liabilities		2,349
Total senior notes and revolving line of credit		94,231
Total liabilities		109,096
Fair value of assets acquired	$	73,125

Acquired inventories consist primarily of work in process inventories. We estimated the fair value of acquired work in process inventories based upon the stage of production of each unit and a gross margin that we believe a market participant would require to complete the remaining development and requisite selling efforts.  The stage of production, as of the acquisition date, ranged from recently started lots to fully completed single family residences. Amortizable intangible assets include acquired trade names and a non-compete agreement, which were estimated to have fair values of $3.3 million and $0.3 million, respectively, and are amortized over 10 years and 2 years, respectively. 

The Company determined that WJH’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. 

Pro Forma Financial Information

Pro forma revenue and income before tax expense for the nine months ended September 30, 2018 give effect to the results of the acquisition of WJH. The effect of the WJH acquisition is reflected as though the acquisition date was as of January 1, 2018.  Unaudited pro forma income before tax expense adjusts the operating results of WJH to reflect the additional costs that would have been recorded assuming the fair value adjustments had been applied as of the beginning of the year preceding the year of the acquisition and excludes acquisition expense incurred related to the transactions.

	Nine Months Ended September 30, 2018
Total revenues	$	1,645,858
Income before tax expense	$	87,092
Income tax expense		(21,773)
Net income	$	65,319
Less: Undistributed earnings allocated to participating securities		(54)
Numerator for basic and diluted pro forma EPS	$	65,265
Pro forma weighted average shares-basic		29,885,858
Pro forma weighted average shares-diluted		30,189,058
Pro forma basic EPS	$	2.18
Pro forma diluted EPS	$	2.16

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4. Inventories

Inventories included the following (in thousands):

	September 30,		December 31,
	2019		2018
Homes under construction	$	1,205,232	$	1,073,682
Land and land development		820,126		720,719
Capitalized interest		68,135		53,842
Total inventories	$	2,093,493	$	1,848,243

5. Financial Services

Our Financial Services are principally comprised of our mortgage lending operations, Inspire Home Loans, Inc. (which we refer to as “Inspire”).  Inspire is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates and their related servicing rights in the secondary mortgage market within a short period of time after origination, generally within 30 days. Inspire primarily finances these loans using its mortgage repurchase facilities. Mortgage loans in process for which interest rates were committed to borrowers totaled approximately $59.2 million and $26.2 million at September 30, 2019 and December 31, 2018, respectively, and carried a weighted average interest rate of approximately 3.8%, and 4.7%, respectively.  As of September 30, 2019 and December 31, 2018, Inspire had mortgage loans held for sale with an aggregate fair value of $95.3 million and $112.4 million, respectively, and an aggregate outstanding principal balance of $92.8 million and $108.0 million, respectively. Interest rate risks related to these obligations are mitigated by the preselling of loans to investors or through our interest rate hedging program.

Mortgage loans held-for-sale, including the rights to service the mortgage loans, as well as the derivative instrument used to economically hedge our interest rate risk, which are typically forward commitments on mortgage backed securities, are carried at fair value and changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. Management believes carrying loans held-for-sale and the derivative instruments used to economically hedge them at fair value improves financial reporting by more accurately reflecting the underlying transaction. Refer to Note 12 – fair value disclosures for further information regarding our derivative instruments.

6. Prepaid Expenses and Other Assets

Prepaid expenses and other assets included the following (in thousands):

	September 30,		December 31,
	2019		2018
Prepaid insurance	$	29,311	$	20,226
Lot option and escrow deposits		50,758		51,038
Performance deposits		6,814		4,552
Deferred financing costs revolving line of credit, net		3,530		4,155
Restricted cash(1)		3,084		3,539
Secured note receivable		2,632		4,947
Right of use assets		16,760		—
Insurance receivable and other		17,036		51,940
Total prepaid expenses and other assets	$	129,925	$	140,397

⁽¹⁾ Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities.

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7. Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities included the following (in thousands):

	September 30,		December 31,
	2019		2018
Earnest money deposits	$	13,805	$	13,990
Warranty reserve		9,990		7,970
Accrued compensation costs		22,636		29,770
Land development and home construction accruals		117,511		77,748
Accrued interest		18,327		15,636
Lease liabilities - operating leases		17,380		—
Liability for product financing arrangements and other		7,169		68,043
Total accrued expenses and other liabilities	$	206,818	$	213,157

8. Warranties

Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and adjust the amounts recorded if necessary. We decreased our warranty reserve by $0.6 million during the three months ended September 30, 2019 and during the same period in 2018. We decreased our warranty reserve by $0.4 million during the nine months ended September 30, 2019, compared to a $0.8 million decrease during the same period in 2018. These adjustments are included in cost of home sales revenues on our condensed consolidated statements of operations. Changes in our warranty accrual are detailed in the table below (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Beginning balance	$	9,768	$	10,269	$	7,970	$	8,531
Warranty reserve assumed in business combination		—		—		—		397
Warranty expense provisions		1,665		1,568		5,433		4,789
Payments		(870)		(968)		(3,063)		(2,688)
Warranty adjustment		(573)		(597)		(350)		(757)
Ending balance	$	9,990	$	10,272	$	9,990	$	10,272

9. Debt

Our outstanding debt obligations included the following as of September 30, 2019 and December 31, 2018 (in thousands):  

	September 30,		December 31,
	2019		2018
6.750% senior notes, due May 2027(1)	$	494,178	$	—
5.875% senior notes, due July 2025(1)		395,944		395,415
6.875% senior notes, due May 2022(1)		—		380,567
Insurance premium notes and other financing obligations		6,150		8,795
Notes payable		896,272		784,777
Revolving line of credit, due April 2022		278,800		202,500
Mortgage repurchase facility		77,798		104,555
Total debt	$	1,252,870	$	1,091,832

⁽¹⁾ The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.

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Issuance of 6.750% Senior Notes Due 2027

In May 2019, the Company completed a private offering of $500.0 million aggregate principal amount of the Company’s 6.750% Senior Notes due 2027 (the “2027 Notes”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933. The 2027 Notes were issued under the Indenture, dated as of May 23, 2019, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “May 2019 Indenture,” as it may be supplemented or amended from time to time). The 2027 Notes were issued at 100% of their principal amount and we received net proceeds of $493.9 million. The 2027 Notes contain certain restrictive covenants on issuing future secured debt and other transactions. The aggregate principal balance of the 2027 Notes is due June 2027, with interest only payments due semi-annually in June and December of each year, beginning on December 1, 2019.

In connection with this issuance, the Company deferred $6.1 million of issuance costs, which is presented in the notes payable line item of the condensed consolidated balance sheet.

Extinguishment of 6.875% Senior Notes Due 2022

During the nine months ended September 30, 2019, the Company extinguished $385.0 million in outstanding principal of our 6.875% Senior Notes due 2022 (the “2022 Notes”). The extinguishment was the result of two separate transactions whereby a tender offer validly tendered $189.3 million of the 2022 Notes on March 23, 2019 and the remaining $195.7 million was redeemed in accordance with the Indenture agreement on June 10, 2019. The transaction resulted in a loss of $10.8 million, which is presented in loss on debt extinguishment in the consolidated statement of operations for the nine months ended September 30, 2019.

Revolving Line of Credit

We are party to an Amended and Restated Credit Agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, the lenders party thereto and certain of our subsidiaries, which, as amended most recently on February 12, 2019, provides us with a revolving line of credit of up to $640.0 million, and unless terminated earlier, will mature on April 30, 2022. Under the terms of the Amended and Restated Credit Agreement, we may request a twelve-month extension of the maturity date. Our obligations under the Amended and Restated Credit Agreement are guaranteed by certain of our subsidiaries. The Amended and Restated Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. These covenants are measured as defined in the Amended and Restated Credit Agreement and are reported to the lenders quarterly. Borrowings under the Amended and Restated Credit Agreement bear interest at a floating rate equal to the adjusted Eurodollar Rate plus an applicable margin between 2.60% and 3.10% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.60% and 2.10% per annum. As of September 30, 2019, we had $278.8 million outstanding under the credit facility and were in compliance with all covenants.

Mortgage Repurchase Facilities – Financial Services

On May 4, 2018 and September 14, 2018, Inspire entered into mortgage warehouse facilities, with Comerica Bank, and J.P. Morgan, respectively. The mortgage warehouse lines of credit (which we refer to as the “repurchase facilities”) provide Inspire with uncommitted repurchase facilities of up to an aggregate of $140 million, secured by the mortgage loans financed thereunder. Amounts outstanding under the repurchase facilities are not guaranteed by us or any of our subsidiaries and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of September 30, 2019, we had $77.8 million outstanding under these repurchase facilities and were in compliance with all covenants thereunder. No assurance can be provided, however, that we will remain in compliance with the covenants or have continued access to these facilities or substitute or replacement facilities in an amount sufficient to fund our mortgage lending business. During the three months ended September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $0.6 million and $0.4 million, respectively, which are included in financial services costs on our condensed consolidated statements of operations. During the nine months ended September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $2.1 million and $0.8 million, respectively.

10. Interest

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three and nine months ended September 30, 2019 and 2018, we capitalized all interest costs incurred during these periods, except for interest incurred on our mortgage repurchase facilities.

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Our interest costs are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Interest capitalized beginning of period	$	63,068	$	47,797	$	53,842	$	41,762
Interest capitalized during period		19,325		16,109		55,792		43,387
Less: capitalized interest in cost of sales		(14,258)		(12,334)		(41,499)		(33,577)
Interest capitalized end of period	$	68,135	$	51,572	$	68,135	$	51,572

11. Income Taxes

At the end of each interim period we are required to estimate our annual effective tax rate for the fiscal year, and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2019 estimated annual effective tax rate of 27.9% is driven by our blended federal and state statutory rate of 25.2%, and certain other permanent differences between GAAP and tax which increased our rate by 2.7%.

For the three months ended September 30, 2019, our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 5.5%, including federal energy tax credits claimed in the current period related to homes closed in prior years. For the nine months ended September 30, 2019 our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 3.7%, including federal energy tax credits and excess tax benefits for vested stock-based compensation.

For the three months ended September 30, 2019 and 2018, we recorded income tax expense of $7.8 million and $5.8 million, respectively. For the nine months ended September 30, 2019 and 2018, we recorded income tax expense of $19.0 million and $22.2 million, respectively.

12. Fair Value Disclosures

Accounting Standards Codification Topic 820, Fair Value Measurement, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date.

Level 3 — Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date.

The following table presents carrying values and estimated fair values of financial instruments (in thousands):

		September 30, 2019				December 31, 2018
	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Secured notes receivable(1)	Level 2	$	2,632	$	2,577	$	4,947	$	4,830
Mortgage loans held for sale(2)	Level 2	$	95,321	$	95,321	$	112,394	$	112,394
Derivative assets(3)	Level 2	$	1,593	$	1,593	$	726	$	726
6.750% senior notes(4) (5)	Level 2	$	494,178	$	535,550	$	—	$	—
6.875% senior notes(4) (5)	Level 2	$	—	$	—	$	380,567	$	372,488
5.875 % senior notes (4) (5)	Level 2	$	395,944	$	413,000	$	395,415	$	356,000
3.278% insurance premium notes(6)	Level 2	$	6,150	$	6,150	$	6,475	$	6,475
Revolving line of credit(6)	Level 3	$	278,800	$	278,800	$	202,500	$	202,500
Other financing obligation(6)	Level 2	$	—	$	—	$	2,320	$	2,320
Mortgage repurchase facilities(6)	Level 2	$	77,798	$	77,798	$	104,555	$	104,555

⁽¹⁾

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Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.

⁽²⁾The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans.

⁽³⁾Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments.

⁽⁴⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽⁵⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $5.8 million and $4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $4.9 million and $4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively.

⁽⁶⁾Carrying amount approximates fair value due to short-term nature and interest rate terms.

The carrying amount of cash and cash equivalents approximates fair value. Non-financial assets and liabilities are measured at fair value when acquired in a business combination. Long-lived assets determined to be impaired are measured at fair value.

13. Stock-Based Compensation

During the nine months ended September 30, 2019, we granted performance share units (which we refer to as “PSUs”) covering up to 0.3 million shares of common stock, assuming maximum level of performance, with a grant date fair value of $22.01 per share that are subject to both service and performance vesting conditions. The quantity of shares that will vest under the PSUs ranges from 0% to 250% of a targeted number of shares for each participant and will be determined based on an achievement of a three year pre-tax income performance goal. During the nine months ended September 30, 2019, we also granted restricted stock units (which we refer to as “RSUs”) covering 0.6 million shares of common stock with a grant date fair value of $23.85 per share that vest over a three year period.

A summary of our outstanding RSUs and PSUs, assuming maximum level of performance, are as follows (in thousands, except years):

	As of September 30, 2019
Unvested units		1,225
Unrecognized compensation cost	$	16,421
Period to recognize compensation cost		1.6 years

During the three months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $3.9 million and $3.8 million, respectively. During the nine months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $11.4 million and $10.1 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations.

14. Stockholders’ Equity

Our authorized capital stock consists of 100.0 million shares of common stock, par value $0.01 per share, and 50.0 million shares of preferred stock, par value $0.01 per share. As of September 30, 2019 and December 31, 2018, there were 31.2 million and 30.2 million shares of common stock issued and outstanding, respectively.

On May 10, 2017, our stockholders approved the adoption of the Century Communities, Inc. 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”), which replaced our First Amended & Restated 2013 Long-Term Incentive Plan.  We had reserved a total of 1.8 million shares of our common stock for issuance under our First Amended & Restated 2013 Long-Term Incentive Plan, of which approximately 0.6 million shares rolled over into the 2017 Incentive Plan when it became effective. On May 8, 2019, our stockholders approved an amended and restated 2017 Omnibus Incentive Plan, which increased the number of shares of our common stock authorized for issuance under the 2017 Incentive Plan by an additional 1.631 million shares. We issued 0.3 million shares of our common stock related to the vesting of RSUs during the nine months ended September 30, 2019.

On July 3, 2018, we entered into a Distribution Agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Distribution Agreement”), as sales agents pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through any of the sales agents party thereto in “at-the-market” offerings. During the three and nine months ended September 30, 2019, we sold and issued an aggregate of 0.8 million shares and 0.9 million shares, respectively, of our common stock under the Distribution Agreement, which provided gross proceeds of $23.7 million and $26.5 million, respectively, and in connection with such sales, paid total offering costs of $0.6 million and $0.7 million, respectively. During the three and nine months ended September 30, 2018, we sold and issued an aggregate of 0.6

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million and 1.1 million shares of our common stock under the Second and Third Distribution Agreements, which provided gross proceeds of $17.4 million and $32.4 million, respectively, and, in connection with such sales, paid total offering costs of $0.5 million and $1.1 million respectively. The Distribution Agreement will remain in full force and effect until terminated by either party pursuant to the terms of the agreement or such date that the maximum offering amount has been sold in accordance with the terms of the agreement. This Distribution Agreement had $56.1 million remaining as of September 30, 2019.

15. Earnings Per Share

We use the two-class method of calculating EPS, where applicable, as our previously issued non-vested restricted stock awards had non-forfeitable rights to dividends and, accordingly, represent a participating security. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. We use the treasury stock method to calculate the dilutive effect of our RSUs and PSUs as these awards do not have participating rights.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share information):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Less: Undistributed earnings allocated to participating securities		—		—		—		(58)
Net income allocable to common stockholders	$	27,024	$	17,048	$	59,636	$	70,203
Denominator
Weighted average common shares outstanding - basic		30,587,487		30,232,376		30,378,860		29,885,858
Dilutive effect of restricted stock units		318,748		322,505		262,334		303,200
Weighted average common shares outstanding - diluted		30,906,235		30,554,881		30,641,194		30,189,058
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33

Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.6 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2019 related to the PSUs for which performance conditions remain unsatisfied. We excluded 0.3 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2018 related to the PSUs granted during the periods.

16. Commitments and Contingencies

Letters of Credit and Performance Bonds

In the normal course of business, we post letters of credit and performance bonds related to our land development performance obligations with local municipalities. As of September 30, 2019 and December 31, 2018, we had $347.6 million and $289.8 million, respectively, in letters of credit and performance bonds issued and outstanding.

Litigation

We are subject to claims and lawsuits that arise primarily in the ordinary course of business, which consist primarily of construction defect claims. It is the opinion of our management that if the claims have merit, parties other than the Company would be, at least in part, liable for the claims, and the eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows. When we believe that a loss is probable and estimable, we record a charge to selling, general, and administrative expense on our condensed consolidated statements of operations for our estimated loss.

Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions. Estimates of such amounts are recorded in other assets when recovery is probable. As of December 31, 2018, substantially all of the amounts reflected in Insurance receivable and other were related to construction claims, which were settled and amounts collected under the applicable insurance policies during the nine months ended September 30, 2019.

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We do not believe that the ultimate resolution of any claims and lawsuits will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows.

17. Leases

Under ASC 842, the Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

We primarily enter into operating leases for the right to use office space, and computer and office equipment, which have lease terms that generally range from 1 to 7 years and often include one or more options to renew. We include renewal terms in the lease term when it is reasonably certain that we will exercise the option. For leases entered into after January 1, 2019, we establish a right of use asset and a lease liability at the commencement date of the lease based on the present value of future minimum lease payments. As the rate implicit in each lease is not readily determinable, we utilize our incremental borrowing rate in determining the present value of future minimum payments. Our incremental borrowing rate is determined based on information available at the commencement date. We account for the lease components and non-lease components as a single lease component. As of September 30, 2019, the Company had $16.8 million and $17.4 million recognized as a right of use asset and lease liability, respectively, which are presented on the consolidated balance sheet within prepaid expenses and other assets and accrued expenses and other liabilities, respectively. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's condensed consolidated balance sheet.

Under both ASC 840 and ASC 842, operating lease expense is recognized on a straight-line basis over the lease term and was $1.6 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively. Operating lease expense was $4.3 million and $2.8 million for the nine months ended September 30, 2019 and 2018, respectively.

Information related to the Company’s right of use asset and lease liability were as follows (in thousands):

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Cash paid for operating lease liabilities	$	1,460		$	4,183
Right-of-use assets obtained in exchange for new operating lease obligations	$	1,275		$	2,785
Weighted-average remaining lease term		4.05 years			4.05 years
Weighted-average discount rate		6.38	%		6.38	%

Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands):

Due in 12 month period ended September 30,
2020	$	5,136
2021		5,191
2022		3,734
2023		3,083
2024		2,029
Thereafter		622
Total		19,795
Less: discount		(2,415)
Total lease liabilities	$	17,380

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18. Supplemental Guarantor Information

Our 5.875% senior notes due 2025 and 6.750% senior notes due 2027 (which we collectively refer to as our “Senior Notes”) are our unsecured senior obligations and are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by substantially all of our direct and indirect wholly-owned operating subsidiaries (which we refer to collectively as “Guarantors”). In addition, our former 6.875% senior notes due 2022 which were extinguished during the second quarter of 2019, were our unsecured senior obligations and were fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the Guarantors.

Each of the indentures governing our Senior Notes provides that the guarantees of a Guarantor will be automatically and unconditionally released and discharged: (1) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the equity interests of such Guarantor after which the applicable Guarantor is no longer a “Restricted Subsidiary” (as defined in the respective indentures), which sale, transfer, exchange or other disposition does not constitute an “Asset Sale” (as defined in the respective indentures) or is made in compliance with applicable provisions of the applicable indenture; (2) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the assets of such Guarantor, which sale, transfer, exchange or other disposition does not constitute an Asset Sale or is made in compliance with applicable provisions of the applicable indenture; provided, that after such sale, transfer, exchange or other disposition, such Guarantor is an “Immaterial Subsidiary” (as defined in the respective indentures); (3) unless a default has occurred and is continuing, upon the release or discharge of such Guarantor from its guarantee of any indebtedness for borrowed money of the Company and the Guarantors so long as such Guarantor would not then otherwise be required to provide a guarantee pursuant to the applicable indenture; provided that if such Guarantor has incurred any indebtedness in reliance on its status as a Guarantor in compliance with applicable provisions of the applicable Indenture, such Guarantor’s obligations under such indebtedness, as the case may be, so incurred are satisfied in full and discharged or are otherwise permitted to be incurred by a Restricted Subsidiary (other than a Guarantor) in compliance with applicable provisions of the applicable Indenture; (4) upon the designation of such Guarantor as an “Unrestricted Subsidiary” (as defined in the respective Indentures), in accordance with the applicable indenture; (5) if the Company exercises its legal defeasance option or covenant defeasance option under the applicable indenture or if the obligations of the Company and the Guarantors are discharged in compliance with applicable provisions of the applicable indenture, upon such exercise or discharge; or (6) in connection with the dissolution of such Guarantor under applicable law in accordance with the applicable indenture. The indenture governing our former 6.875% senior notes due 2022 contained a similar provision.

As the guarantees were made in connection with exchange offers effected in February 2015, October 2015 and April 2017 and the issuance of the 5.875% senior notes due 2025 and of the 6.750% senior notes due 2027, the Guarantors’ condensed financial information is presented as if the guarantees existed during the periods presented. If any Guarantors are released from the guarantees in future periods, the changes are reflected prospectively.

We have determined that separate, full financial statements of the Guarantors would not be material to investors, and accordingly, supplemental financial information is presented below:

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	Supplemental Condensed Consolidated Balance Sheet
	As of September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Cash held in escrow		—		30,362		—		—		30,362
Accounts receivable		4,043		13,989		(103)		—		17,929
Investment in consolidated subsidiaries		2,107,232		—		—		(2,107,232)		—
Inventories		—		2,093,493		—		—		2,093,493
Mortgage loans held for sale		—		—		95,321		—		95,321
Prepaid expenses and other assets		8,451		108,265		13,209		—		129,925
Deferred tax assets, net		14,277		—		—		—		14,277
Property and equipment, net		15,179		19,247		832		—		35,258
Amortizable intangible assets, net		—		4,094		—		—		4,094
Goodwill		—		30,395		—		—		30,395
Total assets	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	190		77,882		623		—	$	78,695
Accrued expenses and other liabilities		30,785		166,443		9,590		—		206,818
Notes payable		890,122		6,150		—		—		896,272
Revolving line of credit		278,800		—		—		—		278,800
Mortgage repurchase facilities		—		—		77,798		—		77,798
Total liabilities		1,199,897		250,475		88,011		—		1,538,383
Stockholders’ equity:		951,179		2,051,495		55,737		(2,107,232)		951,179
Total liabilities and stockholders’ equity	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562

	Supplemental Condensed Consolidated Balance Sheet
	As of December 31, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	2,183		2,101		28,618		—	$	32,902
Cash held in escrow		—		24,344		—		—		24,344
Accounts receivable		6,117		7,424		(77)		—		13,464
Investment in consolidated subsidiaries		1,827,456		—		—		(1,827,456)		—
Inventories		—		1,848,243		—		—		1,848,243
Mortgage loans held for sale		—		—		112,394		—		112,394
Prepaid expenses and other assets		51,177		85,224		3,996		—		140,397
Deferred tax assets, net		13,763		—		—		—		13,763
Property and equipment, net		13,274		18,989		995		—		33,258
Amortizable intangible assets, net		—		5,095		—		—		5,095
Goodwill		—		30,395		—		—		30,395
Total assets	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	623		88,627		657		—	$	89,907
Accrued expenses and other liabilities		75,506		131,548		6,103		—		213,157
Notes payable		775,982		8,795		—		—		784,777
Revolving line of credit		202,500		—		—		—		202,500
Mortgage repurchase facilities		—		—		104,555		—		104,555
Total liabilities		1,054,611		228,970		111,315		—		1,394,896
Stockholders’ equity:		859,359		1,792,845		34,611		(1,827,456)		859,359
Total liabilities and stockholders’ equity	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255

19

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		573,860		—		—	$	573,860
Land sales and other revenues			—		6,083		—		—		6,083
			—		579,943		—		—		579,943
Financial services revenue			—		—		10,419				10,419
Total revenues			—		579,943		10,419		—		590,362
Homebuilding cost of revenues
Cost of home sales revenues			—		(469,834)		—		—		(469,834)
Cost of land sales and other revenues			—		(4,624)		—		—		(4,624)
			—		(474,458)		—		—		(474,458)
Financial services costs			—		—		(8,174)				(8,174)
Selling, general and administrative			(17,621)		(55,213)		—		—		(72,834)
Equity in earnings from consolidated subsidiaries			39,268		—		—		(39,268)		—
Other income (expense)			104		(119)		(41)		—		(56)
Income before income tax expense			21,751		50,153		2,204		(39,268)		34,840
Income tax expense			5,273		(12,539)		(550)		—		(7,816)
Net income		$	27,024	$	37,614	$	1,654	$	(39,268)	$	27,024

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—	$	552,876	$	—	$	—	$	552,876
Land sales and other revenues			—		1,131		—		—		1,131
			—		554,007		—		—		554,007
Financial services revenue			—		—		7,722		—		7,722
Total revenues			—		554,007		7,722		—		561,729
Homebuilding cost of revenues
Cost of home sales revenues			—		(460,144)		—		—		(460,144)
Cost of land sales and other revenues			—		(1,093)		—		—		(1,093)
			—		(461,237)		—		—		(461,237)
Financial services costs			—		—		(6,056)		—		(6,056)
Selling, general and administrative			(20,187)		(50,788)		—		—		(70,975)
Acquisition expense			(58)		—		—		—		(58)
Equity in earnings from consolidated subsidiaries			32,282		—		—		(32,282)		—
Other income (expense)			61		(606)		—		—		(545)
Income before income tax expense			12,098		41,376		1,666		(32,282)		22,858
Income tax expense			4,950		(10,344)		(416)		—		(5,810)
Net income		$	17,048	$	31,032	$	1,250	$	(32,282)	$	17,048

‎

20

		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,705,798		—		—	$	1,705,798
Land sales and other revenues			—		8,837		—		—		8,837
			—		1,714,635		—		—		1,714,635
Financial services revenue			—		—		28,734				28,734
Total revenues			—		1,714,635		28,734		—		1,743,369
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,407,519)		—		—		(1,407,519)
Cost of land sales and other revenues			—		(6,115)		—		—		(6,115)
			—		(1,413,634)		—		—		(1,413,634)
Financial services costs			—		—		(22,750)		—		(22,750)
Selling, general and administrative			(55,089)		(161,898)		—		—		(216,987)
Loss on debt extinguishment			(10,832)		—		—		—		(10,832)
Equity in earnings from consolidated subsidiaries			108,939		—		—		(108,939)		—
Other income (expense)			(664)		57		108		—		(499)
Income before income tax expense			42,354		139,160		6,092		(108,939)		78,667
Income tax expense			17,282		(34,790)		(1,523)		—		(19,031)
Net income		$	59,636	$	104,370	$	4,569	$	(108,939)	$	59,636

		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,469,871		—		—	$	1,469,871
Land sales and other revenues			—		4,304		—		—		4,304
			—		1,474,175		—		—		1,474,175
Financial services revenue			—		—		21,292		—		21,292
Total revenues			—		1,474,175		21,292		—		1,495,467
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,206,924)		—		—		(1,206,924)
Cost of land sales and other revenues			—		(3,010)		—		—		(3,010)
			—		(1,209,934)		—		—		(1,209,934)
Financial services costs			—		—		(15,836)		—		(15,836)
Selling, general and administrative			(53,802)		(137,328)		—		—		(191,130)
Acquisition expense			(395)		—		—		—		(395)
Equity in earnings from consolidated subsidiaries			97,688		—		—		(97,688)		—
Equity in income from unconsolidated subsidiaries			14,849		—		—		—		14,849
Other income (expense)			(194)		(359)		—		—		(553)
Income before income tax expense			58,146		126,554		5,456		(97,688)		92,468
Income tax expense			12,115		(32,904)		(1,418)		—		(22,207)
Net income		$	70,261	$	93,650	$	4,038	$	(97,688)	$	70,261

‎

21

	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(52,863)		(112,548)		16,447		—	$	(148,964)
Net cash provided by/(used in) investing activities	$	(146,499)		(7,610)		163		142,391	$	(11,555)
Financing activities
Borrowings under revolving credit facilities	$	1,184,800		—		—		—	$	1,184,800
Payments on revolving credit facilities		(1,108,500)		—		—		—		(1,108,500)
Proceeds from the issuance of senior notes due 2027		500,000		—		—		—		500,000
Extinguishment of senior notes due 2022		(391,942)		—		—		—		(391,942)
Debt issuance costs		(6,075)		—		—		—		(6,075)
Proceeds from the issuance of insurance premium notes and other		—		12,629		—		—		12,629
Principal payments on insurance notes payable		—		(19,275)		—		—		(19,275)
Net proceeds from mortgage repurchase facilities		—		—		(26,757)		—		(26,757)
Net proceeds from issuances of common stock		25,817		—		—		—		25,817
Repurchases of common stock upon vesting of stock based compensation		(3,588)		—		—		—		(3,588)
Repurchases of common stock under our stock repurchase program		(1,439)		—		—		—		(1,439)
Payments from (and advances to) parent/subsidiary		—		125,834		16,557		(142,391)		—
Net cash provided by (used in) financing activities	$	199,073	$	119,188	$	(10,200)	$	(142,391)	$	165,670
Net increase (decrease)	$	(289)	$	(970)	$	6,410	$	—	$	5,151
Cash and cash equivalents and Restricted cash
Beginning of period	$	2,183		4,006		30,252		—	$	36,441
End of period	$	1,894	$	3,036	$	36,662	$	—	$	41,592
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Restricted Cash		—		911		2,173		—		3,084
Cash and cash equivalents and Restricted cash	$	1,894	$	3,036	$	36,662	$	—	$	41,592

	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(71,743)		(123,418)		(5,256)		(16,580)	$	(216,997)
Net cash provided by/(used in) investing activities	$	(153,607)		(165,939)		(159)		280,048	$	(39,657)
Financing activities
Borrowings under revolving credit facilities	$	520,000		—		—		—	$	520,000
Payments on revolving credit facilities		(284,000)		—		—		—		(284,000)
Proceeds from insurance notes payable		—		11,838		—		—		11,838
Extinguishments of debt assumed in business combination		(94,231)		—		—		—		(94,231)
Debt issuance costs		(3,521)		—		—		—		(3,521)
Principal payments on notes payable		(9)		(2,164)		—		—		(2,173)
Repurchases of common stock upon vesting of stock based compensation		(5,483)		—		—		—		(5,483)
Payments from (and advances to) parent/subsidiary		5,130		263,120		11,798		(280,048)		—
Net proceeds from mortgage repurchase facilities		—		—		9,008		—		9,008
Net proceeds from issuances of common stock		31,230		—		—		—		31,230
Net cash provided by (used in) financing activities	$	169,116	$	272,794	$	20,806	$	(280,048)	$	182,668
Net increase (decrease)	$	(56,234)	$	(16,563)	$	15,391	$	(16,580)	$	(73,986)
Cash and cash equivalents and Restricted cash
Beginning of period	$	56,234		28,044		9,435		—	$	93,713
End of period	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727
Cash and cash equivalents	$	—		8,922		23,585		(16,580)	$	15,927
Restricted Cash		—		2,559		1,241		—		3,800
Cash and cash equivalents and Restricted cash	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727

‎

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ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Some of the statements included in this Quarterly Report on Form 10-Q (which we refer to as this “Form 10-Q”) constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, forecasts, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. These statements are only predictions. We caution that forward-looking statements are not guarantees. Actual events and results of operations could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology. You can also identify forward-looking statements by discussions of strategy, plans or intentions. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors.

The forward-looking statements included in this Form 10-Q reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking and subject to risks and uncertainties including among others:

economic changes either nationally or in the markets in which we operate, including declines in employment, volatility of mortgage interest rates and inflation;

a downturn in the homebuilding industry, including a decline in real estate values or market conditions resulting in impairment of our assets;

changes in assumptions used to make industry forecasts;

continued volatility and uncertainty in the credit markets and broader financial markets;

our future operating results and financial condition;

our business operations;

changes in our business and investment strategy;

availability of land to acquire, and our ability to acquire such land on favorable terms or at all;

availability, terms and deployment of capital;

availability of mortgage financing or an increase in the number of foreclosures in the market;

shortages of or increased prices for labor, land or raw materials used in housing construction;

delays in land development or home construction resulting from adverse weather conditions or other events outside our control;

impact of construction defect, product liability, and/or home warranty claims, including the adequacy of accruals and the applicability and sufficiency of our insurance coverage;

changes in, or the failure or inability to comply with, governmental laws and regulations;

the timing of receipt of regulatory approvals and the opening of projects;

the degree and nature of our competition;

our leverage, debt service obligations and exposure to changes in interest rates;

our ability to successfully integrate the acquired businesses and realize projected cost savings and other benefits;

availability of qualified personnel and our ability to retain our key personnel;

taxation and tax policy changes, tax rate changes, new tax laws, new or revised tax law interpretations or guidance, including as a result of the Tax Cuts and Jobs Act; and

changes in GAAP.

Forward-looking statements are based on our beliefs, assumptions and expectations of future events, taking into account all information currently available to us. Forward-looking statements are not guarantees of future events or of our performance. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. Some of these events and factors are described above and in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” in our Annual Report on Form 10-K, and other risks and uncertainties detailed in this and our other reports and filings with the SEC. If a change occurs, our business, financial condition, liquidity, cash flows and results of operations may vary materially from those expressed in or implied by our forward-looking statements. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result

23

of new information, future events or otherwise. Therefore, you should not rely on these forward-looking statements as of any date subsequent to the date of this Form 10-Q.

As used in this Form 10-Q, references to “we,” “us,” “our” or the “Company” refer to Century Communities, Inc., a Delaware corporation, and, unless the context otherwise requires, its subsidiaries and affiliates.

The following discussion and analysis of our financial condition and results of operations is intended to help the reader understand our Company, business, operations and present business environment and is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the related notes to those statements included elsewhere in this Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under “Cautionary Note About Forward-Looking Statements” and the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2018. We use certain non-GAAP financial measures that we believe are important for purposes of comparison to prior periods. This information is also used by our management to measure the profitability of our ongoing operations and analyze our business performance and trends. Some of the numbers included herein have been rounded for the convenience of presentation.

Overview

Century is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington.  In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land.  We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and over the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes.  Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment.

Results of Operations

During the three and nine months ended September 30, 2019, we delivered 1,891 and 5,521 homes, respectively, with an average sales price of $303.5 thousand and $309.0 thousand, respectively. These deliveries represent increases of 8.3% and 35.6%, respectively, as compared to the three and nine months ended September 30, 2018. During the same periods, we generated approximately $573.9 million and $1,705.8 million in home sales revenues, respectively, approximately $34.8 million and $78.7 million in income before income tax expense, respectively, and approximately $27.0 million and $59.6 million, respectively, in net income.

For the three and nine months ended September 30, 2019, our new home contracts, net of cancelations, totaled 2,046 and 6,086, respectively, a 35.0% and 37.2% increase over the same respective periods in 2018. As of September 30, 2019, we had a backlog of 2,746 homes, an 8.1% decrease as compared to September 30, 2018, representing approximately $854.9 million in sales value, an 8.2% decrease as compared to September 30, 2018.

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24

The following table summarizes our results of operations for the three and nine months ended September 30, 2019 and 2018.

(in thousands, except per share amounts)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Consolidated Statements of Operations:
Revenue
Home sales revenues	$	573,860		$	552,876		$	1,705,798		$	1,469,871
Land sales revenues		6,083			1,131			8,837			4,304
		579,943			554,007			1,714,635			1,474,175
Financial services revenue		10,419			7,722			28,734			21,292
Total revenues		590,362			561,729			1,743,369			1,495,467
Homebuilding cost of revenues
Cost of home sales revenues		(469,834)			(460,144)			(1,407,519)			(1,206,924)
Cost of land sales and other revenues		(4,624)			(1,093)			(6,115)			(3,010)
		(474,458)			(461,237)			(1,413,634)			(1,209,934)
Financial services costs		(8,174)			(6,056)			(22,750)			(15,836)
Selling, general, and administrative		(72,834)			(70,975)			(216,987)			(191,130)
Loss on debt extinguishment		—			—			(10,832)			—
Acquisition expense		—			(58)			—			(395)
Equity in income of unconsolidated subsidiaries		—			—			—			14,849
Other income (expense)		(56)			(545)			(499)			(553)
Income before income tax expense		34,840			22,858			78,667			92,468
Income tax expense		(7,816)			(5,810)			(19,031)			(22,207)
Net income	$	27,024		$	17,048		$	59,636		$	70,261
Earnings per share:
Basic	$	0.88		$	0.56		$	1.96		$	2.35
Diluted	$	0.87		$	0.56		$	1.95		$	2.33
Adjusted diluted earnings per share(1)	$	0.87		$	0.86		$	2.26		$	2.83
Other Operating Information (dollars in thousands):
Number of homes delivered		1,891			1,746			5,521			4,071
Average sales price of homes delivered	$	303.5		$	316.7		$	309.0		$	361.1
Homebuilding gross margin percentage		18.1	%		16.8	%		17.5	%		17.9	%
Adjusted homebuilding gross margin excluding interest and purchase price accounting for acquired work in process inventory (1)		20.6	%		21.2	%		20.0	%		22.1	%
Backlog at end of period, number of homes		2,746			2,988			2,746			2,988
Backlog at end of period, aggregate sales value	$	854,856		$	930,951		$	854,856		$	930,951
Average sales price of homes in backlog	$	311.3		$	311.5		$	311.3		$	311.5
Net new home contracts		2,046			1,515			6,086			4,436
Selling communities at period end		129			125			129			125
Average selling communities		127			123			127			120
Total owned and controlled lot inventory		39,315			38,147			39,315			38,147
Adjusted EBITDA(1)	$	52,695		$	50,270		$	142,530		$	163,091
Adjusted income before income tax expense(1)	$	34,840		$	34,850		$	91,223		$	114,011
Adjusted net income(1)	$	27,024		$	26,137		$	69,154		$	85,508

⁽¹⁾ This is a non-GAAP financial measure and should not be used as a substitute for the Company’s operating results prepared in accordance with GAAP. See the reconciliations to the most comparable GAAP measure and other information under “ - Non-GAAP Financial Measures.” An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.

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25

Results of Operations by Segment

(dollars in thousands)

	New Homes Delivered				Average Sales Price of Homes Delivered				Home Sales Revenues				Income before Income Tax
	Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,				Three Months Ended September 30,
	2019		2018		2019		2018		2019		2018		2019		2018
West		228		193	$	512.4	$	548.6	$	116,826	$	105,880	$	9,013	$	7,478
Mountain		390		377	$	424.8	$	430.2		165,666		162,182		20,552		18,753
Texas		247		177	$	278.4	$	316.7		68,753		56,058		8,290		3,539
Southeast		341		424	$	347.8	$	333.2		118,584		141,288		7,079		10,401
WJH		685		575	$	151.9	$	152.1		104,031		87,468		6,032		451
Financial Services		—		—	$	—	$	—		—		—		2,245		1,666
Corporate		—		—	$	—	$	—		—		—		(18,371)		(19,430)
Total		1,891		1,746	$	303.5	$	316.7	$	573,860	$	552,876	$	34,840	$	22,858
	New Homes Delivered				Average Sales Price of Homes Delivered				Home Sales Revenues				Income before Income Tax
	Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018		2019		2018		2019		2018
West		683		606	$	533.0	$	584.2	$	364,005	$	354,049	$	27,634	$	29,494
Mountain		1,168		1,141	$	430.3	$	425.5		502,648		485,541		62,386		61,995
Texas		626		491	$	288.6	$	320.2		180,661		157,225		17,626		10,319
Southeast		1,036		1,093	$	343.5	$	329.7		355,817		360,343		17,467		24,106
WJH		2,008		740	$	150.7	$	152.3		302,667		112,713		18,323		265
Financial Services		—		—	$	—	$	—		—		—		5,984		5,456
Corporate		—		—	$	—	$	—		—		—		(70,753)		(39,167)
Total		5,521		4,071	$	309.0	$	361.1	$	1,705,798	$	1,469,871	$	78,667	$	92,468

West

In our West segment, for the three and nine months ended September 30, 2019, our income before income tax increased by $1.5 million and decreased by $1.9 million, respectively, to $9.0 million and $27.6 million, respectively. During the three and nine months ended September 30, 2019, we delivered 228 homes and 683 homes, respectively, with an average sales price of $512.4 thousand and $533.0 thousand, respectively, and generated $116.8 million and $364.0 million in home sales revenue, respectively. Income before income tax increased during the three months ended September 30, 2019 primarily due to an increase in home sales revenues of $10.9 million. Income before income tax decreased for the nine months ended September 30, 2019, primarily due to the mix of deliveries in higher margin communities in the prior year.

Mountain

In our Mountain segment, for the three and nine months ended September 30, 2019, our income before income tax increased by $1.8 million and $0.4 million, respectively, to $20.6 million and $62.4 million, respectively.  The increase of income before income tax for the three and nine months ended September 30, 2019 is primarily related to the increase in revenues.

Texas

In our Texas segment, for the three and nine months ended September 30, 2019, our income before income tax increased by $4.8 million and $7.3 million, respectively, to $8.3 million and $17.6 million, respectively, as compared $3.5 million and $10.3 million for the same periods in 2018.  The increase in income before income tax is primarily related to increases in the number of homes delivered during the three and nine months ended September 30, 2019 as compared to the same periods in 2018, which was partially offset by a decrease in the average sales price as we continue our shift towards first time homebuyers.  

Southeast

In our Southeast segment, for the three and nine months ended September 30, 2019, our income before income tax decreased by $3.3 million and $6.6 million, respectively, to $7.1 million and $17.5 million, respectively, as compared to $10.4 million and $24.1 million for the same periods in 2018.  The decrease in income before income tax for the three and nine months ended September 30, 2019 is primarily related to the decrease in homes delivered.

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Wade Jurney Homes

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH for $37.5 million. For the three and nine months ended September 30, 2019, we delivered 685 homes and 2,008 homes, respectively, with an average price of $151.9 thousand and $150.7 thousand, respectively, and generated $104.0 million and $302.7 million in home sales revenues in our WJH segment, respectively. Our income before income tax for the three and nine months ended September 30, 2019 was $6.0 million and $18.3 million, respectively. Income before income tax for the three and nine months ended September 30, 2018 include purchase accounting for acquired work in process of $10.1 million and $13.0 million, respectively.

Financial Services

Our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment. Substantially all of the loans we originate are sold in the secondary market within a short period of time after origination, generally within 30 days.  During the three and nine months ended September 30, 2019, income before income tax remained relatively consistent compared to the same periods during 2018.

Corporate

During the three and nine months ended September 30, 2019, our Corporate segment generated losses of $18.4 million and $70.8 million, respectively, as compared to losses of $19.4 million and $39.2 million for the same periods in 2018.  The increase in expenses during the three months ended September 30, 2019 was primarily attributed to nominal increases in numerous items associated with our increased scale. The increase in expenses during the nine months ended September 30, 2019 was primarily attributed to the following: (1) a loss on debt extinguishment of $10.8 million during the current period, (2) prior period income from equity in unconsolidated subsidiaries of $14.8 million and (3) nominal increases in numerous items associated with our increased scale.

Homebuilding Gross Margin

(dollars in thousands)

Homebuilding gross margin represents home sales revenues less cost of home sales revenues. Our homebuilding gross margin percentage, which represents homebuilding gross margin divided by home sales revenues, increased during the three months ended September 30, 2019 to 18.1% as compared to 16.8% for the same period in 2018, which was primarily driven by $11.9 of purchase accounting adjustments for acquired work in process inventory in the prior year period. Homebuilding gross margin percentage decreased for the nine months ended September 30, 2019 to 17.5% as compared to 17.9% for the same period in 2018. The decrease was primarily related to the geographic mix of closings between periods and higher incentives period over period in certain markets.

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In the following table, we calculate our homebuilding gross margin, as adjusted to exclude interest in cost of home sales revenues, and purchase price accounting for acquired work in process inventory.

	Three Months Ended September 30,
	2019		%		2018		%
Home sales revenues	$	573,860	100.0	%	$	552,876	100.0	%
Cost of home sales revenues		(469,834)	(81.9)	%		(460,144)	(83.2)	%
Gross margin from home sales		104,026	18.1	%		92,732	16.8	%
Add: Interest in cost of home sales revenues		14,258	2.5	%		12,334	2.2	%
Adjusted homebuilding gross margin excluding interest		118,284	20.6	%		105,066	19.0	%
Add: Purchase price accounting for acquired work in process inventory		—	—	%		11,934	2.2	%
Adjusted homebuilding gross margin excluding interest and purchase price accounting for acquired work in process inventory	$	118,284	20.6	%	$	117,000	21.2	%
	Nine Months Ended September 30,
	2019		%		2018		%
Home sales revenues	$	1,705,798	100.0	%	$	1,469,871	100.0	%
Cost of home sales revenues		(1,407,519)	(82.5)	%		(1,206,924)	(82.1)	%
Gross margin from home sales		298,279	17.5	%		262,947	17.9	%
Add: Interest in cost of home sales revenues		41,499	2.4	%		33,577	2.3	%
Adjusted homebuilding gross margin excluding interest		339,778	19.9	%		296,524	20.2	%
Add: Purchase price accounting for acquired work in process inventory		1,724	0.1	%		28,367	1.9	%
Adjusted homebuilding gross margin excluding interest and purchase price accounting for acquired work in process inventory	$	341,502	20.0	%	$	324,891	22.1	%

(1)This non-GAAP financial measure should not be used as a substitute for the Company’s operating results in accordance with GAAP. See the reconciliations to the most comparable GAAP measure and other information under “—Non-GAAP Financial Measures.” An analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP.

For the three and nine months ended September 30, 2019, excluding interest in cost of home sales revenues and purchase price accounting for acquired work in process inventory, our adjusted homebuilding gross margin percentage was 20.6% and 20.0%, respectively, as compared to 21.2%, and 22.1%, respectively, for the same periods in 2018. The decreases primarily related to the geographic mix of closings between periods, continued cost pressure, and higher incentives throughout our markets. We believe the above information is meaningful as it isolates the impact that indebtedness and acquisitions have on our homebuilding gross margin and allows for comparability of our homebuilding gross margins to previous periods and our competitors.

Selling, General and Administrative Expense

(dollars in thousands)
	Three Months Ended September 30,						Increase
	2019			2018			Amount		%
Selling, general and administrative	$	(72,834)		$	(70,975)		$	(1,859)	2.6	%
As a percentage of home sales revenue		12.7	%		12.8	%
	Nine Months Ended September 30,						Increase
	2019			2018			Amount		%
Selling, general and administrative	$	(216,987)		$	(191,130)		$	(25,857)	13.5	%
As a percentage of homes sales revenue		12.7	%		13.0	%

Our selling, general and administrative expense increased $1.9 million for the three months ended September 30, 2019 as compared to the same period in 2018. The increase was primarily attributable to an increase of $2.6 million in commission expense primarily due to increases in external realtor commissions, which was partially offset by other nominal decreases throughout various accounts.

Our selling, general and administrative expense increased $25.9 million for the nine months ended September 30, 2019 as compared to the same period in 2018. The increase was primarily attributable to the following: (1) an increase of $11.0 million in commission

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expense, resulting from a 16% increase in home sales revenues, (2) an increase of $7.7 million in compensation-related expenses associated with higher headcount as a result of the WJH acquisition to support our growth, (3) an increase of $1.2 million in legal costs, (4) an increase of $1.2 million in taxes and licenses, (5) an increase in depreciation and amortization of $1.1 million, (6) an increase in rent expense of $1.0 million, (7) an increase in information technology related expenses of $1.0 million, and (8) nominal increases in numerous items associated with our increased scale throughout selling, general and administrative to support our growth.

Income Tax Expense

At the end of each interim period we are required to estimate our annual effective tax rate for the fiscal year, and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2019 estimated annual effective tax rate of 27.9% is driven by our blended federal and state statutory rate of 25.2%, and certain other permanent differences between GAAP and tax which increased our rate by 2.7%.

For the three months ended September 30, 2019, our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 5.5%, including federal energy tax credits claimed in the current period related to homes closed in prior years. For the nine months ended September 30, 2019 our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 3.7%, including federal energy tax credits and excess tax benefits for vested stock-based compensation.

For the three months ended September 30, 2019 and 2018, we recorded income tax expense of $7.8 million and $5.8 million, respectively. For the nine months ended September 30, 2019 and 2018, we recorded income tax expense of $19.0 million and $22.2 million, respectively.

Segment Assets

(Dollars in thousands)

	September 30,		December 31,			Increase (Decrease)
	2019		2018			Amount	Change
West	$	625,085	$	502,381	$	122,704	24.4	%
Mountain		674,894		621,757		53,137	8.5	%
Texas		222,819		209,550		13,269	6.3	%
Southeast		455,289		448,681		6,608	1.5	%
WJH		287,923		204,925		82,998	40.5	%
Financial Services		144,682		146,710		(2,028)	(1.4)	%
Corporate		78,870		120,251		(41,381)	(34.4)	%
Total assets	$	2,489,562	$	2,254,255	$	235,307	10.4	%

Lots owned and	September 30, 2019			December 31, 2018			% Change
controlled	Owned	Controlled	Total	Owned	Controlled	Total	Owned		Controlled		Total
West	3,210	1,920	5,130	3,457	1,790	5,247	(7.1)	%	7.3	%	(2.2)	%
Mountain	5,011	6,883	11,894	5,335	5,641	10,976	(6.1)	%	22.0	%	8.4	%
Texas	3,589	2,663	6,252	3,943	2,616	6,559	(9.0)	%	1.8	%	(4.7)	%
Southeast	4,484	2,719	7,203	4,828	2,808	7,636	(7.1)	%	(3.2)	%	(5.7)	%
Wade Jurney Homes	3,454	5,382	8,836	3,447	4,054	7,501	0.2	%	32.8	%	17.8	%
Total	19,748	19,567	39,315	21,010	16,909	37,919	(6.0)	%	15.7	%	3.7	%

Of our total lots owned and controlled as of September 30, 2019, 50.2% were owned and 49.8% were controlled, as compared to 55.4% owned and 44.6% controlled as of December 31, 2018.

Total assets increased by $235.3 million, or 10.4%, to $2.5 billion at September 30, 2019 as compared to December 31, 2018. The increase is driven by investments in inventory during the period.

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Other Homebuilding Operating Data

	Three Months Ended					Nine Months Ended
Net new home contracts	September 30,		Increase			September 30,		Increase (Decrease)
	2019	2018	Amount	% Change		2019	2018	Amount	% Change
West	235	214	21	9.8	%	767	616	151	24.5	%
Mountain	419	308	111	36.0	%	1,290	1,313	(23)	(1.8)	%
Texas	260	150	110	73.3	%	733	493	240	48.7	%
Southeast	494	422	72	17.1	%	1,250	1,449	(199)	(13.7)	%
WJH	638	421	217	51.5	%	2,046	565	1,481	NM
Total	2,046	1,515	531	35.0	%	6,086	4,436	1,650	37.2	%

NM – Not Meaningful

Net new home contracts (new home contracts net of cancellations) for the three months ended September 30, 2019 increased by 531 homes, or 35.0%, to 2,046, compared to 1,515 for the same period in 2018. Net new home contracts for the nine months ended September 30, 2019 increased by 1,650 homes, or 37.2%, to 6,086, compared to 4,436 for the same period in 2018. The increase in our net new home contracts during these periods was primarily driven by our acquisition of WJH.

Our overall monthly “absorption rate” (the rate at which home orders are contracted, net of cancelations) for the three and nine months ended September 30, 2019 by segment are included in the tables below:

	Three Months Ended September 30,		Increase (Decrease)
	2019	2018	Amount	% Change
West	3.7	4.2	(0.5)	(11.9)	%
Mountain	3.0	3.0	-	—	%
Texas	4.6	2.2	2.4	109.1	%
Southeast	3.8	2.8	1.0	35.7	%
WJH	N/A	N/A	N/A	N/A
Total	3.6	2.9	0.7	24.1	%
	Nine Months Ended September 30,		Increase
	2019	2018	Amount	% Change
West	4.1	4.0	0.1	2.5	%
Mountain	3.1	4.3	(1.2)	(27.9)	%
Texas	4.3	2.4	1.9	79.2	%
Southeast	3.2	3.2	—	—	%
WJH	N/A	N/A	N/A	N/A
Total	3.5	3.4	0.1	2.9	%

N/A – Not Applicable

Our absorption rates increased by 24.1% to 3.6 per month during the three months ended September 30, 2019, as compared to the same period in 2018.  Our absorptions increased primarily due to the timing of community openings in our Texas and Southeast region.

Our absorption rates decreased by 2.9% to 3.5 per month during the nine months ended September 30, 2019, as compared to the same period in 2018.  Our absorptions moderated primarily due to the timing of community openings in our Mountain region.

Selling communities at period end	As of September 30,		Increase/(Decrease)
	2019	2018	Amount	% Change
West	21	17	4	23.5	%
Mountain	46	34	12	35.3	%
Texas	19	23	(4)	(17.4)	%
Southeast	43	51	(8)	(15.7)	%
Wade Jurney Homes	N/A	N/A	N/A	N/A
Total	129	125	4	3.2	%

N/A – Not Applicable

Our selling communities increased to 129 communities at September 30, 2019 as compared to 125 at September 30, 2018. As WJH does not sell homes by community, but through studios and other methods, there are no communities or absorptions presented for that segment.

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Backlog

(Dollars in thousands)

	As of September 30,
	2019					2018					% Change
	Homes	Dollar Value		Average Sales Price		Homes	Dollar Value		Average Sales Price		Homes		Dollar Value		Average Sales Price
West	302	$	153,626	$	508.7	280	$	153,121	$	546.9	7.9	%	0.3	%	(7.0)	%
Mountain	523		230,203		440.2	627		283,534		452.0	(16.6)	%	(18.8)	%	(2.6)	%
Texas	288		79,536		276.2	217		75,129		346.2	32.7	%	5.9	%	(20.2)	%
Southeast	684		243,712		356.3	736		241,943		328.7	(7.1)	%	0.7	%	8.4	%
Wade Jurney Homes	949		147,779		155.7	1,128		177,224		157.1	(15.9)	%	(16.6)	%	(0.9)	%
Total / Weighted Average	2,746	$	854,856	$	311.3	2,988	$	930,951	$	311.5	(8.1)	%	(8.2)	%	(0.1)	%

Backlog reflects the number of homes, net of actual cancellations experienced during the period, for which we have entered into a sales contract with a customer but for which we have not yet delivered the home. At September 30, 2019, we had 2,746 homes in backlog with a total value of $854.9 million, which represents a decrease of 8.1% and 8.2%, respectively, as compared to September 30, 2018. The decrease in backlog dollar value is primarily attributable to a decrease in the number of homes in backlog.

Supplemental Pro Forma Information

The supplemental pro forma information below presents pro forma combined financial and operating data reflecting the WJH acquisition as if it had occurred on January 1, 2018. The selected condensed combined pro forma data combines the historical home sales revenues, net new home contracts, new homes delivered and average sales price of homes delivered of Century and WJH. The pro forma information is for informational purposes only and supplements our condensed consolidated financial statements prepared in accordance with US GAAP. We believe that the pro forma information is useful as it provides additional information given the significant impact of the acquisition, and a reflection of how the combined business performed year over year that is not readily discernible from the actual year over year comparison. The pro forma information below does not purport to reflect the results of operations that would have occurred if WJH had been acquired on January 1, 2018, nor does the pro forma information purport to represent the results of operations of the Company for any future dates or periods.

(dollars in thousands)	Nine Months Ended September 30, 2018
	Pro Forma Home Sales Revenues		Pro Forma Net New Home Contracts	Pro Forma Deliveries		Pro Forma Average Sales Price
Pro forma Century Communities	$	1,620,262	5,850	5,064	$	320.0

Critical Accounting Policies

Critical accounting estimates are those that we believe are both significant and require us to make difficult, subjective or complex judgments, often because we need to estimate the effect of inherently uncertain matters. We base our estimates and judgments on historical experiences and various other factors that we believe to be appropriate under the circumstances. Actual results may differ from these estimates, and the estimates included in our financial statements might be impacted if we used different assumptions or conditions. A summary of our critical accounting policies is included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 13, 2019, in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies.” 

Liquidity and Capital Resources

Overview

Our principal uses of capital for the three and nine months ended September 30, 2019 were our land purchases, land development, home construction, and the payment of routine liabilities. We use funds generated by operations, available borrowings under our revolving credit facility, and from time to time proceeds from sales of common stock, including our current at-the-market facility, and debt

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securities to fund our short term working capital obligations and fund our purchases of land, as well as land development and home construction activities.

Cash flows for each of our communities depend on the stage in the development cycle, and can differ substantially from reported earnings. Early stages of development or expansion require significant cash outlays for land acquisitions, entitlements and other approvals, and construction of model homes, roads, utilities, general landscaping and other amenities. Because these costs are a component of our inventory and are not recognized in our statements of operations until a home closes, we incur significant cash outlays prior to our recognition of earnings. In the later stages of community development, cash inflows may significantly exceed earnings reported for financial statement purposes, as the cash outflow associated with home and land construction was previously incurred. From a liquidity standpoint, we are actively acquiring and developing lots in our markets to maintain and grow our lot supply and active selling communities. As we continue to expand our business, we expect that our cash outlays for land purchases and land development to grow our lot inventory will continue to exceed our cash generated by operations.

Our Financial Services operations use funds generated from operations, and availability under our mortgage repurchase facilities to finance operations including originations of mortgage loans to our homebuyers.

Under our shelf registration statement, which we filed with the SEC in July 2018 and was automatically effective upon filing, we have the ability to access the debt and equity capital markets in an aggregate offering amount of up to $869 million, as needed as part of our ongoing financing strategy and subject to market conditions. Of this amount, up to $100 million may be offered under our at-the-market distribution agreement referred to below.

We believe that we will be able to fund our current and foreseeable liquidity needs with our cash on hand, cash generated from operations, and cash expected to be available from our revolving credit facility or through accessing debt or equity capital, as needed.

Issuance of 6.750% Senior Notes Due 2027

In May 2019, the Company completed a private offering of $500.0 million aggregate principal amount of the Company’s 6.750% Senior Notes due 2027 (the “2027 Notes”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933. The 2027 Notes were issued under the Indenture, dated as of May 23, 2019, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “May 2019 Indenture,” as it may be supplemented or amended from time to time). The 2027 Notes were issued at 100% of their principal amount and we received net proceeds of $493.9 million. The aggregate principal balance of the 2027 Notes is due June 2027, with interest only payments due semi-annually in June and December of each year, beginning on December 1, 2019.

In connection with this issuance, the Company deferred $6.1 million of issuance costs, which is presented in the notes payable line item of the condensed consolidated balance sheet.

Extinguishment of 6.875% Senior Notes Due 2022

During the nine months ended September 30, 2019, the Company extinguished $385.0 million in outstanding principal of our 6.875% Senior Notes due 2022 (the “2022 Notes”). The extinguishment was the result of two separate transactions whereby a tender offer validly tendered $189.3 million of the 2022 Notes on March 23, 2019 and the remaining $195.7 million was redeemed in accordance with the Indenture agreement on June 10, 2019. The transaction resulted in a loss of $10.8 million, which is presented in loss on debt extinguishment in the condensed consolidated statement of operations.

Revolving Credit Facility

We are party to an Amended and Restated Credit Agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, the lenders party thereto and certain of our subsidiaries, which, as amended most recently on February 12, 2019, provides us with a revolving line of credit of up to $640.0 million, and unless terminated earlier, will mature on April 30, 2022. Under the terms of the Amended and Restated Credit Agreement, we may request a twelve-month extension of the maturity date. Our obligations under the Amended and Restated Credit Agreement are guaranteed by certain of our subsidiaries. The Amended and Restated Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. These covenants are measured as defined in the Amended and Restated Credit Agreement and are reported to the lenders quarterly. Borrowings under the Amended and Restated Credit Agreement bear interest at a floating rate equal to the adjusted Eurodollar Rate plus an applicable margin between 2.60% and 3.10% per annum, or, in the

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Administrative Agent’s discretion, a base rate plus an applicable margin between 1.60% and 2.10% per annum. As of September 30, 2019, we had $278.8 million outstanding under the credit facility and were in compliance with all covenants.

At the Market Offerings

On July 3, 2018, we entered into a Distribution Agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Distribution Agreement”), as sales agents pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through any of the sales agents party thereto in “at-the-market” offerings. During the three and nine months ended September 30, 2019, we sold and issued an aggregate of 0.8 million shares and 0.9 million shares, respectively, of our common stock under the Distribution Agreement, which provided gross proceeds of $23.7 million and $26.5 million, respectively, and in connection with such sales, paid total offering costs of $0.6 million and $0.7 million, respectively. During the three and nine months ended September 30, 2018, we sold and issued an aggregate of 0.6 million and 1.1 million shares of our common stock under a prior Distribution Agreement, which provided gross proceeds of $17.4 million and $32.4 million, respectively, and, in connection with such sales, paid total offering costs of $0.5 million and $1.1 million respectively. The Distribution Agreement will remain in full force and effect until terminated by either party pursuant to the terms of the agreement or such date that the maximum offering amount has been sold in accordance with the terms of the agreement. This Distribution Agreement had $56.1 million remaining as of September 30, 2019.

Mortgage Repurchase Facility and Mortgage Warehouse Line of Credit – Financial Services

On May 4, 2018 and September 14, 2018 Inspire entered into mortgage warehouse facilities, with Comerica Bank and J.P. Morgan, respectively. The mortgage warehouse lines of credit (which we refer to as the “Repurchase Facilities”) provide Inspire with uncommitted repurchase facilities of up to $140 million, secured by the mortgage loans financed thereunder. Amounts outstanding under the Repurchase Facilities are not guaranteed by us or any of our subsidiaries and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of September 30, 2019, we had $77.8 million outstanding under these Repurchase Facilities and were in compliance with all covenants thereunder. No assurance can be provided, however, that we will remain in compliance with the covenants or have continued access to these facilities or substitute or replacement facilities in an amount sufficient to fund our mortgage lending business.

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Letters of Credit and Performance Bonds

In the normal course of business, we post letters of credit and performance bonds related to our land development performance obligations with local municipalities. As of September 30, 2019 and December 31, 2018, we had $347.6 million and $289.8 million, respectively, in letters of credit and performance bonds issued and outstanding. Although significant development and construction activities have been completed related to the improvements at these sites, the letters of credit and performance bonds are not generally released until all development and construction activities are completed.

Debt

Our outstanding debt obligations included the following as of September 30, 2019 and December 31, 2018 (in thousands):  

	September 30,		December 31,
	2019		2018
6.750% senior notes, due May 2027(1)	$	494,178	$	—
5.875% senior notes, due July 2025(1)		395,944		395,415
6.875% senior notes, due May 2022(1)		—		380,567
Insurance premium notes and other financing obligations		6,150		8,795
Senior notes payable		896,272		784,777
Revolving line of credit, due April 2022		278,800		202,500
Mortgage repurchase facility		77,798		104,555
Total debt	$	1,252,870	$	1,091,832

⁽¹⁾ The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.

A summary of our debt obligations is included in Note 12 to our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 13, 2019. For further information regarding our 2019 issuance of the 6.750% Senior Notes due 2027 and extinguishment of our 6.875% Senior Notes due 2022, refer to Note 9 - Debt in Part I, Item 1 of this report.

Stock Repurchase Program

On November 6, 2018, our Board of Directors authorized a stock repurchase program, under which we may repurchase up to 4,500,000 shares of our outstanding common stock. The shares may be repurchased from time to time in open market transactions at prevailing market prices, in privately negotiated transactions or by other means in accordance with federal securities laws. The actual manner, timing, amount and value of repurchases under the stock repurchase program will be determined by management at its discretion and will depend on a number of factors, including the market price of our common stock, trading volume, other capital management objectives and opportunities, applicable legal requirements, and general market and economic conditions.

We intend to finance any stock repurchases through available cash and our revolving credit facility. Repurchases also may be made under a trading plan under Rule 10b5-1 under the Securities Exchange Act of 1934, which would permit shares to be repurchased when we otherwise may be precluded from doing so because of self-imposed trading blackout periods or other regulatory restrictions. There is no guarantee as to the number of shares that will be repurchased, and the stock repurchase program may be extended, suspended or discontinued at any time without notice at our discretion. All shares of common stock repurchased under the program will be cancelled and returned to the status of authorized but unissued shares of common stock.

During the nine months ended September 30, 2019, an aggregate of 83,000 shares were repurchased for a total purchase price of approximately $1.4 million or an average of $17.14 per share. No shares were repurchased during the three months ended September 30, 2019 and the three and nine months ended September 30, 2018.

Cash Flows—Nine Months Ended September 30, 2019 Compared to the Nine Months Ended September 30, 2018

For the nine months ended September 30, 2019 and 2018, the comparison of cash flows is as follows:

Our primary sources of cash flows from operations are from the sale of single family attached and detached homes and mortgages.  Our primary uses of cash flows from operations is the acquisition of land and expenditures associated with the construction of our single family attached and detached homes and the origination of mortgages held for sale.  During the nine months ended September 30, 2019 and 2018, we used $149.0 million and $217.0 million in cash from operations, respectively.  The decrease in cash used from operations is primarily a result of a comparatively favorable decrease in

34

changes in assets and liabilities for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018.

Net cash used in investing activities decreased to $11.6 million during the nine months ended September 30, 2019, compared to $39.7 million used during the same period in 2018. The decrease was primarily related to our purchase of the remaining 50% ownership interest in WJH during 2018.

Net cash provided by financing activities was $165.7 million during the nine months ended September 30, 2019, compared to $182.7 million during the same period in 2018. The decrease was primarily attributable to a decrease in net borrowings on our revolving credit facility, partially offset by an increase in proceeds from the issuance of the 2027 Notes and a portion of those proceeds used to extinguish the 2022 Notes.

As of September 30, 2019, our cash and cash equivalents and restricted cash balance was $41.6 million.

Off-Balance Sheet Arrangements

In the ordinary course of business, we enter into land purchase contracts in order to procure lots for the construction of our homes. We are subject to customary obligations associated with entering into contracts for the purchase of land and improved lots. These purchase contracts typically require a cash deposit, and the purchase of properties under these contracts is generally contingent upon satisfaction of certain requirements, including obtaining applicable property and development entitlements. We also utilize option contracts with land sellers and others as a method of acquiring land in staged takedowns, to help us manage the financial and market risk associated with land holdings, and to reduce the use of funds from our corporate financing sources. Option contracts generally require payment by use of a non-refundable deposit for the right to acquire lots over a specified period of time at pre-determined prices. Our obligations with respect to purchase contracts and option contracts are generally limited to the forfeiture of the related non-refundable cash deposits. As of September 30, 2019, we had outstanding purchase contracts and option contracts for 19,567 lots with a total purchase price of approximately $726.1 million and had $42.3 million of non-refundable cash deposits pertaining to land option contracts. While our performance, including the timing and amount of purchase, if any, under these outstanding purchase and option contracts is subject to change, we currently anticipate performing on 50% to 60% of the purchase and option contracts during the next twelve months, with performance on the remaining purchase and option contracts occurring in future periods, if at all. 

Our utilization of land option contracts is dependent on, among other things, the availability of land sellers willing to enter into option takedown arrangements, the availability of capital to financial intermediaries to finance the development of optioned lots, general housing market conditions, and local market dynamics. Options may be more difficult to procure from land sellers in strong housing markets and are more prevalent in certain geographic regions.

We post letters of credit and performance bonds related to our land development performance obligations, with local municipalities. As of September 30, 2019 and December 31, 2018, we had $347.6 million and $289.8 million, respectively, in letters of credit and performance bonds issued and outstanding. We anticipate that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business.

Non-GAAP Financial Measures

In this Form 10-Q, we use certain non-GAAP financial measures, including EBITDA, Adjusted EBITDA, net debt to net capital, and adjusted net earnings per diluted common shares. These non-GAAP financial measures are presented to provide investors additional information to facilitate the comparison of our past and present operations. We believe these non-GAAP financial measures provide useful information to investors because they are used to evaluate our performance on a comparable year-over-year basis. These non-GAAP financial measures are not in accordance with, or an alternative for, GAAP measures and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive or standard set of accounting rules or principles. Accordingly, the calculation of our non-GAAP financial measures may differ from the definitions of other companies using the same or similar names limiting, to some extent, the usefulness of such measures for comparison purposes. Non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our financial results as determined in accordance with GAAP. These measures should only be used to evaluate our financial results in conjunction with the corresponding GAAP measures. Accordingly, we qualify our use of non-GAAP financial information in a statement when non-GAAP financial information is presented.

EBITDA and Adjusted EBITDA

The following table presents EBITDA and adjusted EBITDA for the three and nine months ended September 30, 2019 and 2018. Adjusted EBITDA is a non-GAAP financial measure we use as a supplemental measure in evaluating operating performance. We define 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, and (vi) adjustments resulting from the

35

application of purchase accounting for acquired work in process inventory related to business combinations and purchase price accounting for investment in unconsolidated subsidiaries, and (vii) acquisition expense. We believe 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, our 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. 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. Our 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.

	Three Months Ended September 30,							Nine Months Ended September 30,
	2019		2018		% Change			2019			2018			% Change
Net income	$	27,024	$	17,048		58.5	%		$	59,636		$	70,261		(15.1)	%
Income tax expense		7,816		5,810		34.5	%			19,031			22,207		(14.3)	%
Interest in cost of home sales revenues		14,258		12,334		15.6	%			41,499			33,577		23.6	%
Interest expense (income)		—		(205)		N/M				15			(579)		N/M
Depreciation and amortization expense		3,597		3,291		9.3	%			9,793			8,803		11.2	%
EBITDA		52,695		38,278		37.7	%			129,974			134,269		(3.2)	%
Loss on debt extinguishment		—		—		N/M				10,832			—		N/M
Purchase price accounting for acquired work in process inventory		—		11,934		(100.0)	%			1,724			28,367		(93.9)	%
Purchase price accounting for investment in unconsolidated subsidiaries outside basis		—		—		N/M				—			60		N/M
Acquisition expense		—		58		N/M				—			395		N/M
Adjusted EBITDA	$	52,695	$	50,270		4.8	%		$	142,530		$	163,091		(12.6)	%

NM – Not Meaningful

Net Homebuilding Debt to Net Capital

The following table presents our ratio of net homebuilding debt to net capital, which is a non-GAAP financial measure. We calculate this by dividing net homebuilding debt (senior notes payable and borrowing under our 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 total capital. We believe the ratio of net homebuilding debt to net capital is a relevant and useful financial measure to investors in understanding the leverage employed in our operations and as an indicator of our ability to obtain external financing.

	September 30,		December 31,
	2019		2018
Total homebuilding debt	$	1,175,072	$	987,277
Total stockholders' equity		951,179		859,359
Total capital	$	2,126,251	$	1,846,636
Debt to capital		55.3%		53.5%
Total homebuilding debt	$	1,175,072	$	987,277
Cash and cash equivalents		(38,508)		(32,902)
Cash held in escrow		(30,362)		(24,344)
Net homebuilding debt		1,106,202		930,031
Total stockholders' equity		951,179		859,359
Net capital	$	2,057,381	$	1,789,390
Net homebuilding debt to net capital		53.8%		52.0%

Adjusted Diluted Earnings per Share

Adjusted diluted earnings per share (which we refer to as “Adjusted Diluted EPS”) is a non-GAAP financial measure that we believe is 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

36

comparable assessment of our financial results from period to period. Adjusted Diluted EPS is calculated by excluding loss on debt extinguishment, gain on previously held interest in WJH and the effect of acquisition costs and purchase price accounting for acquired work in process from the calculation of reported earnings per share.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Less: Undistributed earnings allocated to participating securities		—		—		—		(58)
Net income allocable to common stockholders	$	27,024	$	17,048	$	59,636	$	70,203
Denominator
Weighted average common shares outstanding - basic		30,587,487		30,232,376		30,378,860		29,885,858
Dilutive effect of restricted stock units		318,748		322,505		262,334		303,200
Weighted average common shares outstanding - diluted		30,906,235		30,554,881		30,641,194		30,189,058
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33
Adjusted Earnings per share
Numerator
Income before income tax expense	$	34,840	$	22,858	$	78,667	$	92,468
Loss on debt extinguishment		—		—		10,832		—
Purchase price accounting for acquired work in process inventory		—		11,934		1,724		28,367
Gain on previously held interest in WJH		—		—		—		(7,219)
Acquisition expense		—		58		—		395
Adjusted income before income tax expense		34,840		34,850		91,223		114,011
Adjusted income tax expense(1)		(7,816)		(8,713)		(22,069)		(28,503)
Adjusted net income		27,024		26,137		69,154		85,508
Less: Adjusted undistributed earnings allocated to participating securities		—		—		—		(71)
Adjusted net income allocable to common stockholders	$	27,024	$	26,137	$	69,154	$	85,437
Denominator - Diluted		30,906,235		30,554,881		30,641,194		30,189,058
Adjusted diluted earnings per share	$	0.87	$	0.86	$	2.26	$	2.83

⁽¹⁾The tax rate used in calculating adjusted net income for the three and nine months ended September 30, 2019 and 2018 was the estimated annual rate offset by the benefit associated with federal energy credits related to homes delivered in prior years.

‎

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ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Interest Rates

Market risk is the risk of loss arising from adverse changes in market rates and prices, such as interest rates, foreign currency exchange rates and commodity prices. Our primary exposure to market risk is interest rate risk associated with our Amended and Restated Credit Agreement Borrowings under the Amended and Restated Credit Agreement bear interest at a floating rate equal to the adjusted Eurodollar Rate plus an applicable margin between 2.60% and 3.10% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.60% and 2.10% per annum. The “applicable margins” described above are determined by a schedule based on the leverage ratio of the Company, as defined in the Amended and Restated Credit Agreement. The Amended and Restated Credit Agreement also provides for fronting fees and letter of credit fees payable to the L/C Issuer and commitment fees payable to the Administrative Agent equal to 0.20% of the unused portion of the revolving line of credit.

For fixed rate debt, such as our senior notes, changes in interest rates generally affect the fair value of the debt instrument, but not our earnings or cash flows.

In our Financial Services business, we utilize mortgage-backed securities, forward commitments, option contracts and investor commitments to protect the value of rate-locked commitments and loans held-for-sale from fluctuations in mortgage-related interest rates. To mitigate interest risk associated with loans held-for-sale, we use derivative financial instruments to hedge our exposure to risk from the time a borrower locks a loan until the time the loan is securitized. We also hedge our interest rate exposure through entering into interest rate swap futures.

Inflation

Our homebuilding operations can be adversely impacted by inflation, primarily from higher land, financing, labor, material and construction costs. In addition, inflation can lead to higher mortgage rates, which can significantly affect the affordability of mortgage financing to homebuyers. While we attempt to pass on cost increases to customers through increased prices, when weak housing market conditions exist, we are often unable to offset cost increases with higher selling prices.

ITEM 4.     CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our co-principal executive officers and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as such term is defined under Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (which we refer to as the “Exchange Act”)) as of September 30, 2019, the end of the period covered by this Form 10-Q. Based on this evaluation, our co-principal executive officers and principal financial officer concluded that our disclosure controls and procedures were effective as of September 30, 2019 in providing reasonable assurance that information required to be disclosed by us in the reports that we file or furnish under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms.

Changes in Internal Control over Financial Reporting

There were no changes during the third quarter of 2019 in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

‎

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PART II

ITEM 1.     LEGAL PROCEEDINGS.

Because of the nature of the homebuilding business, we and certain of our subsidiaries and affiliates have been named as defendants in various claims, complaints and other legal actions arising in the ordinary course of business. In the opinion of our management, the outcome of these ordinary course matters will not have a material adverse effect upon our financial condition, results of operations or cash flows.

ITEM 1A.     RISK FACTORS.

There have been no material changes to the risk factors we previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.     DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.     MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.     OTHER INFORMATION.

None.

‎

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ITEM 6.     EXHIBITS.

The following exhibits are either filed herewith or incorporated herein by reference:

Item No.	Description
3.1	Certificate of Incorporation of Century Communities, Inc., as amended (incorporated by reference to Exhibit 3.1 to the initial filing of the Company’s Registration Statement on Form S-1, filed with the SEC on May 5, 2014 (File No. 333-195678))
3.2	Bylaws of Century Communities, Inc. (incorporated by reference to Exhibit 3.2 to the initial filing of the Company’s Registration Statement on Form S-1, filed with the SEC on May 5, 2014 (File No. 333-195678))
3.3	Amendment to the Bylaws of Century Communities, Inc., adopted and effective on April 10, 2017 (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the SEC on April 11, 2017 (File No. 001-36491))
31.1	Certification of the Co-Principal Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (filed herewith)
31.2	Certification of the Co-Principal Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (filed herewith)
31.3	Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended (filed herewith)
32.1	Certification of the Co-Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.2	Certification of the Co-Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
32.3	Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)
101.INS	Inline XBRL Instance Document (The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document)
101.SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith)
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith)
101.DEF	Inline XBRL Taxonomy Definition Linkbase Document (filed herewith)
101.LAB	Inline XBRL Taxonomy Extension Labels Linkbase Document (filed herewith)
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith)
104	Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

‎

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Century Communities, Inc.
Date: October 29, 2019	By:	/s/ Dale Francescon
		Dale Francescon
		Chairman of the Board and Co-Chief Executive Officer (Co-Principal Executive Officer)
Date: October 29, 2019	By:	/s/ Robert J. Francescon
		Robert J. Francescon
		Co-Chief Executive Officer and President (Co-Principal Executive Officer)
Date: October 29, 2019	By:	/s/ David Messenger
		David Messenger
		Chief Financial Officer (Principal Financial Officer)
Date: October 29, 2019	By:	/s/ J. Scott Dixon
		J. Scott Dixon
		Chief Accounting Officer (Principal Accounting Officer)

41

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CO-PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Dale Francescon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Century Communities, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: October 29, 2019	/s/  Dale Francescon
	Dale Francescon
	Chairman of the Board and Co-Chief Executive Officer
	(Co-Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CO-PRINCIPAL EXECUTIVE OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, RobertJ. Francescon, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Century Communities, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: October 29, 2019	/s/  Robert J. Francescon
	Robert J. Francescon
	Co-Chief Executive Officer and President
	(Co-Principal Executive Officer)

EX-31.3

EXHIBIT 31.3

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, David Messenger, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Century Communities, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 29, 2019	/s/ David Messenger
	David Messenger
	Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Century Communities, Inc. (the “Company”) for the quarterly period ended September 30, 2019, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Dale Francescon, Chairman of the Board and Co-Chief Executive Officer (Co-Principal Executive Officer) of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 29, 2019	/s/  Dale Francescon
	Dale Francescon
	Chairman of the Board and Co-Chief Executive Officer
	(Co-Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Century Communities, Inc. (the “Company”) for the quarterly period ended September 30, 2019, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Robert J. Francescon, Co-Chief Executive Officer and President (Co-Principal Executive Officer) of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 29, 2019	/s/  Robert J. Francescon
	Robert J. Francescon
	Co-Chief Executive Officer and President
	(Co-Principal Executive Officer)

EX-32.3

EXHIBIT 32.3

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Century Communities, Inc. (the “Company”) for the quarterly period ended September 30, 2019, as filed with the U.S. Securities and Exchange Commission on the date hereof(the “Report”), I, David Messenger, Chief Financial Officer (Principal Financial Officer) of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: October 29, 2019	/s/ David Messenger
	David Messenger
	Chief Financial Officer
	(Principal Financial Officer)

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Financial Services (Narrative) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Financial Services [Line Items]
Mortgage loans in process	$ 59,200	$ 26,200
Mortgage loans held for sale	$ 95,321	$ 112,394
Weighted Average [Member]
Financial Services [Line Items]
Interest rate	3.80%	4.70%
Inspire [Member]
Financial Services [Line Items]
Mortgage loans held for sale	$ 95,300	$ 112,400
Mortgage loans held for sale aggregate outstanding principal balance	$ 92,800	$ 108,000

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Reporting Segments (Narrative) (Details)	9 Months Ended
	Sep. 30, 2019 state region segment
Segment Reporting Information [Line Items]
Number of operating states	17
Number of operating regions | region	4
Number of reportable segments | segment	5
Wade Jurney Homes [Member]
Segment Reporting Information [Line Items]
Number of operating states	11

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Business Combinations (Schedule Of Total Consideration Transferred) (Details) - Wade Jurney Homes [Member] $ in Thousands	Jun. 14, 2018 USD ($)
Business Acquisition [Line Items]
Cash consideration transferred for 50% ownership interest	$ 37,500
Previously held equity interest acquisition date fair value	35,625
Net assets acquired	$ 73,125

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Supplemental Guarantor Information (Narrative) (Details)	9 Months Ended
	Sep. 30, 2019
Senior Notes Due 2022 [Member]
Debt Instrument [Line Items]
Interest rate	6.875%
Maturity year	2022
Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Interest rate	5.875%
Maturity year	2025
Senior Notes Due 2027 [Member]
Debt Instrument [Line Items]
Interest rate	6.75%
Maturity year	2027

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Commitments and Contingencies [Abstract]
Outstanding letters of credit and performance bonds	$ 347.6	$ 289.8

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Basis of Presentation (Policy)

9 Months Ended

Sep. 30, 2019

Basis of Presentation [Abstract]

Basis of Presentation

Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land.  We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes. Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment.

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH, LLC (which we refer to as “WJH” or “Wade Jurney Homes”) for $37.5 million. On the acquisition date, WJH had operations in Alabama, Florida, Georgia, North Carolina and South Carolina.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2018, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019.

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We currently do not have any variable interest entities in which we are deemed the primary beneficiary. All intercompany accounts and transactions have been eliminated.

Use of Estimates

Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Reclassifications

Reclassifications

In order to conform to current year presentation, mortgage loans held for investment and derivative assets of $1.0 million and $0.7 million, respectively, have been reclassified to prepaid expenses and other assets from mortgage loans held for sale on the condensed consolidated balance sheets as of December 31, 2018.

Recently Adopted And Issued Accounting Standards

Recently Adopted Accounting Standards

Leases

The Financial Accounting Standards Board (which we refer to as “FASB”) issued Accounting Standards Codification (ASC) 842, Leases (which we refer to as “ASC 842”) which requires the recognition of lease assets and lease liabilities by lessees for most leases.  ASC 842 is effective for the Company beginning January 1, 2019 and interim periods within the annual period.  We adopted ASC 842 under

a modified retrospective approach using the option to apply the transition provisions on the effective date January 1, 2019. The modified retrospective approach allows the Company to carry forward our historical lease classification, and to present historical periods under legacy lease accounting guidance. The Company’s leases primarily consist of leases for office space, and computer and office equipment where we are the lessee.

ASC 842 includes several practical expedients which we elected upon adoption including to (a) not reassess the lease classification for any expired or existing leases and (b) not reassess whether previously capitalized initial direct costs qualify for capitalization under ASC 842. Additionally, we elected to utilize hindsight when determining the lease term.

The adoption of ASC 842 resulted in the establishment of a right of use asset of $17.7 million and a lease liability of $18.7 million on our condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not impact stockholders’ equity.

Recently Issued Accounting Standards

In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The standard changes the accounting for credit losses for most financial assets and certain other instruments. Credit losses which have historically been accounted for on an incurred loss basis will now be accounted for using an estimate of lifetime expected credit losses. This will generally result in earlier recognition of allowances for credit losses. The standard is effective for the Company on January 1, 2020. Upon adoption, the standard will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We anticipate ASU 2016-13 will apply to certain of our loans held for investment and certain receivable balances. We do not anticipate this standard having a material effect on the consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company January 1, 2020. Upon adoption, the Company has elected to apply the standard prospectively. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

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Earnings Per Share

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Earnings Per Share

15. Earnings Per Share

We use the two-class method of calculating EPS, where applicable, as our previously issued non-vested restricted stock awards had non-forfeitable rights to dividends and, accordingly, represent a participating security. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. We use the treasury stock method to calculate the dilutive effect of our RSUs and PSUs as these awards do not have participating rights.

The following table sets forth the computation of basic and diluted EPS for the three and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share information):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Less: Undistributed earnings allocated to participating securities		—		—		—		(58)
Net income allocable to common stockholders	$	27,024	$	17,048	$	59,636	$	70,203
Denominator
Weighted average common shares outstanding - basic		30,587,487		30,232,376		30,378,860		29,885,858
Dilutive effect of restricted stock units		318,748		322,505		262,334		303,200
Weighted average common shares outstanding - diluted		30,906,235		30,554,881		30,641,194		30,189,058
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33

Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.6 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2019 related to the PSUs for which performance conditions remain unsatisfied. We excluded 0.3 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2018 related to the PSUs granted during the periods.

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Prepaid Expenses and Other Assets (Tables)

9 Months Ended

Sep. 30, 2019

Prepaid Expenses and Other Assets [Abstract]

Schedule Of Prepaid Expenses And Other Assets

	September 30,		December 31,
	2019		2018
Prepaid insurance	$	29,311	$	20,226
Lot option and escrow deposits		50,758		51,038
Performance deposits		6,814		4,552
Deferred financing costs revolving line of credit, net		3,530		4,155
Restricted cash(1)		3,084		3,539
Secured note receivable		2,632		4,947
Right of use assets		16,760		—
Insurance receivable and other		17,036		51,940
Total prepaid expenses and other assets	$	129,925	$	140,397

⁽¹⁾ Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities.

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Income Taxes

9 Months Ended

Sep. 30, 2019

Income Taxes [Abstract]

Income Taxes

11. Income Taxes

At the end of each interim period we are required to estimate our annual effective tax rate for the fiscal year, and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2019 estimated annual effective tax rate of 27.9% is driven by our blended federal and state statutory rate of 25.2%, and certain other permanent differences between GAAP and tax which increased our rate by 2.7%.

For the three months ended September 30, 2019, our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 5.5%, including federal energy tax credits claimed in the current period related to homes closed in prior years. For the nine months ended September 30, 2019 our estimated annual rate of 27.9% was impacted by discrete items which had a net impact of decreasing our rate by 3.7%, including federal energy tax credits and excess tax benefits for vested stock-based compensation.

For the three months ended September 30, 2019 and 2018, we recorded income tax expense of $7.8 million and $5.8 million, respectively. For the nine months ended September 30, 2019 and 2018, we recorded income tax expense of $19.0 million and $22.2 million, respectively.

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Accrued Expenses and Other Liabilities

9 Months Ended

Sep. 30, 2019

Accrued Expenses and Other Liabilities [Abstract]

Accrued Expenses and Other Liabilities

7. Accrued Expenses and Other Liabilities

Accrued expenses and other liabilities included the following (in thousands):

	September 30,		December 31,
	2019		2018
Earnest money deposits	$	13,805	$	13,990
Warranty reserve		9,990		7,970
Accrued compensation costs		22,636		29,770
Land development and home construction accruals		117,511		77,748
Accrued interest		18,327		15,636
Lease liabilities - operating leases		17,380		—
Liability for product financing arrangements and other		7,169		68,043
Total accrued expenses and other liabilities	$	206,818	$	213,157

 

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Assets
Cash and cash equivalents	$ 38,508	$ 32,902
Cash held in escrow	30,362	24,344
Accounts receivable	17,929	13,464
Inventories	2,093,493	1,848,243
Mortgage loans held for sale	95,321	112,394
Prepaid expenses and other assets	129,925	140,397
Property and equipment, net	35,258	33,258
Deferred tax assets, net	14,277	13,763
Amortizable intangible assets, net	4,094	5,095
Goodwill	30,395	30,395
Total assets	2,489,562	2,254,255
Liabilities:
Accounts payable	78,695	89,907
Accrued expenses and other liabilities	206,818	213,157
Notes payable	896,272	784,777
Revolving line of credit	278,800	202,500
Mortgage repurchase facilities	77,798	104,555
Total liabilities	1,538,383	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, 31,249,373 and 30,154,791 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	312	302
Additional paid-in capital	627,211	595,037
Retained earnings	323,656	264,020
Total stockholders' equity	951,179	859,359
Total liabilities and stockholders' equity	$ 2,489,562	$ 2,254,255

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Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Beginning balance at Dec. 31, 2017	$ 295	$ 566,790	$ 168,148	$ 735,233
Beginning balance (in shares) at Dec. 31, 2017	29,503
Issuance of common stock, net	$ 11	31,219		31,230
Issuance of common stock, net, shares	1,086
Vesting of restricted stock units	$ 2	(5,483)		(5,481)
Vesting of restricted stock units, shares	170
Stock-based compensation expense		10,133		10,133
Net income			70,261	70,261
Ending balance at Sep. 30, 2018	$ 308	602,659	237,826	840,793
Ending balance (in shares) at Sep. 30, 2018	30,759
Beginning balance at Jun. 30, 2018	$ 301	582,627	220,778	803,706
Beginning balance (in shares) at Jun. 30, 2018	30,119
Issuance of common stock, net	$ 6	16,915		16,921
Issuance of common stock, net, shares	600
Vesting of restricted stock units	$ 1	(695)		(694)
Vesting of restricted stock units, shares	40
Stock-based compensation expense		3,812		3,812
Net income			17,048	17,048
Ending balance at Sep. 30, 2018	$ 308	602,659	237,826	840,793
Ending balance (in shares) at Sep. 30, 2018	30,759
Adoption of ASC 606			(583)	(583)
Beginning balance at Dec. 31, 2018	$ 302	595,037	264,020	859,359
Beginning balance (in shares) at Dec. 31, 2018	30,155
Issuance of common stock, net	$ 9	25,808		25,817
Issuance of common stock, net, shares	899
Repurchase of common stock	$ (1)	(1,438)		(1,439)
Repurchase of common stock, shares	(83)
Vesting of restricted stock units	$ 2	(3,587)		(3,585)
Vesting of restricted stock units, shares	278
Stock-based compensation expense		11,391		11,391
Net income			59,636	59,636
Ending balance at Sep. 30, 2019	$ 312	627,211	323,656	951,179
Ending balance (in shares) at Sep. 30, 2019	31,249
Beginning balance at Jun. 30, 2019	$ 304	600,293	296,632	897,229
Beginning balance (in shares) at Jun. 30, 2019	30,439
Issuance of common stock, net	$ 8	23,146		23,154
Issuance of common stock, net, shares	799
Vesting of restricted stock units		(151)		(151)
Vesting of restricted stock units, shares	11
Stock-based compensation expense		3,923		3,923
Net income			27,024	27,024
Ending balance at Sep. 30, 2019	$ 312	$ 627,211	$ 323,656	$ 951,179
Ending balance (in shares) at Sep. 30, 2019	31,249

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Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2019

Supplemental Guarantor Information [Abstract]

Supplemental Condensed Consolidated Balance Sheet

	Supplemental Condensed Consolidated Balance Sheet
	As of September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Cash held in escrow		—		30,362		—		—		30,362
Accounts receivable		4,043		13,989		(103)		—		17,929
Investment in consolidated subsidiaries		2,107,232		—		—		(2,107,232)		—
Inventories		—		2,093,493		—		—		2,093,493
Mortgage loans held for sale		—		—		95,321		—		95,321
Prepaid expenses and other assets		8,451		108,265		13,209		—		129,925
Deferred tax assets, net		14,277		—		—		—		14,277
Property and equipment, net		15,179		19,247		832		—		35,258
Amortizable intangible assets, net		—		4,094		—		—		4,094
Goodwill		—		30,395		—		—		30,395
Total assets	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	190		77,882		623		—	$	78,695
Accrued expenses and other liabilities		30,785		166,443		9,590		—		206,818
Notes payable		890,122		6,150		—		—		896,272
Revolving line of credit		278,800		—		—		—		278,800
Mortgage repurchase facilities		—		—		77,798		—		77,798
Total liabilities		1,199,897		250,475		88,011		—		1,538,383
Stockholders’ equity:		951,179		2,051,495		55,737		(2,107,232)		951,179
Total liabilities and stockholders’ equity	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562

	Supplemental Condensed Consolidated Balance Sheet
	As of December 31, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	2,183		2,101		28,618		—	$	32,902
Cash held in escrow		—		24,344		—		—		24,344
Accounts receivable		6,117		7,424		(77)		—		13,464
Investment in consolidated subsidiaries		1,827,456		—		—		(1,827,456)		—
Inventories		—		1,848,243		—		—		1,848,243
Mortgage loans held for sale		—		—		112,394		—		112,394
Prepaid expenses and other assets		51,177		85,224		3,996		—		140,397
Deferred tax assets, net		13,763		—		—		—		13,763
Property and equipment, net		13,274		18,989		995		—		33,258
Amortizable intangible assets, net		—		5,095		—		—		5,095
Goodwill		—		30,395		—		—		30,395
Total assets	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	623		88,627		657		—	$	89,907
Accrued expenses and other liabilities		75,506		131,548		6,103		—		213,157
Notes payable		775,982		8,795		—		—		784,777
Revolving line of credit		202,500		—		—		—		202,500
Mortgage repurchase facilities		—		—		104,555		—		104,555
Total liabilities		1,054,611		228,970		111,315		—		1,394,896
Stockholders’ equity:		859,359		1,792,845		34,611		(1,827,456)		859,359
Total liabilities and stockholders’ equity	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255

Supplemental Condensed Consolidated Statement Of Operations

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		573,860		—		—	$	573,860
Land sales and other revenues			—		6,083		—		—		6,083
			—		579,943		—		—		579,943
Financial services revenue			—		—		10,419				10,419
Total revenues			—		579,943		10,419		—		590,362
Homebuilding cost of revenues
Cost of home sales revenues			—		(469,834)		—		—		(469,834)
Cost of land sales and other revenues			—		(4,624)		—		—		(4,624)
			—		(474,458)		—		—		(474,458)
Financial services costs			—		—		(8,174)				(8,174)
Selling, general and administrative			(17,621)		(55,213)		—		—		(72,834)
Equity in earnings from consolidated subsidiaries			39,268		—		—		(39,268)		—
Other income (expense)			104		(119)		(41)		—		(56)
Income before income tax expense			21,751		50,153		2,204		(39,268)		34,840
Income tax expense			5,273		(12,539)		(550)		—		(7,816)
Net income		$	27,024	$	37,614	$	1,654	$	(39,268)	$	27,024

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—	$	552,876	$	—	$	—	$	552,876
Land sales and other revenues			—		1,131		—		—		1,131
			—		554,007		—		—		554,007
Financial services revenue			—		—		7,722		—		7,722
Total revenues			—		554,007		7,722		—		561,729
Homebuilding cost of revenues
Cost of home sales revenues			—		(460,144)		—		—		(460,144)
Cost of land sales and other revenues			—		(1,093)		—		—		(1,093)
			—		(461,237)		—		—		(461,237)
Financial services costs			—		—		(6,056)		—		(6,056)
Selling, general and administrative			(20,187)		(50,788)		—		—		(70,975)
Acquisition expense			(58)		—		—		—		(58)
Equity in earnings from consolidated subsidiaries			32,282		—		—		(32,282)		—
Other income (expense)			61		(606)		—		—		(545)
Income before income tax expense			12,098		41,376		1,666		(32,282)		22,858
Income tax expense			4,950		(10,344)		(416)		—		(5,810)
Net income		$	17,048	$	31,032	$	1,250	$	(32,282)	$	17,048

‎

		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,705,798		—		—	$	1,705,798
Land sales and other revenues			—		8,837		—		—		8,837
			—		1,714,635		—		—		1,714,635
Financial services revenue			—		—		28,734				28,734
Total revenues			—		1,714,635		28,734		—		1,743,369
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,407,519)		—		—		(1,407,519)
Cost of land sales and other revenues			—		(6,115)		—		—		(6,115)
			—		(1,413,634)		—		—		(1,413,634)
Financial services costs			—		—		(22,750)		—		(22,750)
Selling, general and administrative			(55,089)		(161,898)		—		—		(216,987)
Loss on debt extinguishment			(10,832)		—		—		—		(10,832)
Equity in earnings from consolidated subsidiaries			108,939		—		—		(108,939)		—
Other income (expense)			(664)		57		108		—		(499)
Income before income tax expense			42,354		139,160		6,092		(108,939)		78,667
Income tax expense			17,282		(34,790)		(1,523)		—		(19,031)
Net income		$	59,636	$	104,370	$	4,569	$	(108,939)	$	59,636

		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,469,871		—		—	$	1,469,871
Land sales and other revenues			—		4,304		—		—		4,304
			—		1,474,175		—		—		1,474,175
Financial services revenue			—		—		21,292		—		21,292
Total revenues			—		1,474,175		21,292		—		1,495,467
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,206,924)		—		—		(1,206,924)
Cost of land sales and other revenues			—		(3,010)		—		—		(3,010)
			—		(1,209,934)		—		—		(1,209,934)
Financial services costs			—		—		(15,836)		—		(15,836)
Selling, general and administrative			(53,802)		(137,328)		—		—		(191,130)
Acquisition expense			(395)		—		—		—		(395)
Equity in earnings from consolidated subsidiaries			97,688		—		—		(97,688)		—
Equity in income from unconsolidated subsidiaries			14,849		—		—		—		14,849
Other income (expense)			(194)		(359)		—		—		(553)
Income before income tax expense			58,146		126,554		5,456		(97,688)		92,468
Income tax expense			12,115		(32,904)		(1,418)		—		(22,207)
Net income		$	70,261	$	93,650	$	4,038	$	(97,688)	$	70,261

‎

Supplemental Condensed Consolidated Statement Of Cash Flows

	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(52,863)		(112,548)		16,447		—	$	(148,964)
Net cash provided by/(used in) investing activities	$	(146,499)		(7,610)		163		142,391	$	(11,555)
Financing activities
Borrowings under revolving credit facilities	$	1,184,800		—		—		—	$	1,184,800
Payments on revolving credit facilities		(1,108,500)		—		—		—		(1,108,500)
Proceeds from the issuance of senior notes due 2027		500,000		—		—		—		500,000
Extinguishment of senior notes due 2022		(391,942)		—		—		—		(391,942)
Debt issuance costs		(6,075)		—		—		—		(6,075)
Proceeds from the issuance of insurance premium notes and other		—		12,629		—		—		12,629
Principal payments on insurance notes payable		—		(19,275)		—		—		(19,275)
Net proceeds from mortgage repurchase facilities		—		—		(26,757)		—		(26,757)
Net proceeds from issuances of common stock		25,817		—		—		—		25,817
Repurchases of common stock upon vesting of stock based compensation		(3,588)		—		—		—		(3,588)
Repurchases of common stock under our stock repurchase program		(1,439)		—		—		—		(1,439)
Payments from (and advances to) parent/subsidiary		—		125,834		16,557		(142,391)		—
Net cash provided by (used in) financing activities	$	199,073	$	119,188	$	(10,200)	$	(142,391)	$	165,670
Net increase (decrease)	$	(289)	$	(970)	$	6,410	$	—	$	5,151
Cash and cash equivalents and Restricted cash
Beginning of period	$	2,183		4,006		30,252		—	$	36,441
End of period	$	1,894	$	3,036	$	36,662	$	—	$	41,592
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Restricted Cash		—		911		2,173		—		3,084
Cash and cash equivalents and Restricted cash	$	1,894	$	3,036	$	36,662	$	—	$	41,592

	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(71,743)		(123,418)		(5,256)		(16,580)	$	(216,997)
Net cash provided by/(used in) investing activities	$	(153,607)		(165,939)		(159)		280,048	$	(39,657)
Financing activities
Borrowings under revolving credit facilities	$	520,000		—		—		—	$	520,000
Payments on revolving credit facilities		(284,000)		—		—		—		(284,000)
Proceeds from insurance notes payable		—		11,838		—		—		11,838
Extinguishments of debt assumed in business combination		(94,231)		—		—		—		(94,231)
Debt issuance costs		(3,521)		—		—		—		(3,521)
Principal payments on notes payable		(9)		(2,164)		—		—		(2,173)
Repurchases of common stock upon vesting of stock based compensation		(5,483)		—		—		—		(5,483)
Payments from (and advances to) parent/subsidiary		5,130		263,120		11,798		(280,048)		—
Net proceeds from mortgage repurchase facilities		—		—		9,008		—		9,008
Net proceeds from issuances of common stock		31,230		—		—		—		31,230
Net cash provided by (used in) financing activities	$	169,116	$	272,794	$	20,806	$	(280,048)	$	182,668
Net increase (decrease)	$	(56,234)	$	(16,563)	$	15,391	$	(16,580)	$	(73,986)
Cash and cash equivalents and Restricted cash
Beginning of period	$	56,234		28,044		9,435		—	$	93,713
End of period	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727
Cash and cash equivalents	$	—		8,922		23,585		(16,580)	$	15,927
Restricted Cash		—		2,559		1,241		—		3,800
Cash and cash equivalents and Restricted cash	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727

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Accrued Expenses and Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2019

Accrued Expenses and Other Liabilities [Abstract]

Schedule Of Accrued Expenses And Other Liabilities

	September 30,		December 31,
	2019		2018
Earnest money deposits	$	13,805	$	13,990
Warranty reserve		9,990		7,970
Accrued compensation costs		22,636		29,770
Land development and home construction accruals		117,511		77,748
Accrued interest		18,327		15,636
Lease liabilities - operating leases		17,380		—
Liability for product financing arrangements and other		7,169		68,043
Total accrued expenses and other liabilities	$	206,818	$	213,157

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Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments

		September 30, 2019				December 31, 2018
	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Secured notes receivable(1)	Level 2	$	2,632	$	2,577	$	4,947	$	4,830
Mortgage loans held for sale(2)	Level 2	$	95,321	$	95,321	$	112,394	$	112,394
Derivative assets(3)	Level 2	$	1,593	$	1,593	$	726	$	726
6.750% senior notes(4) (5)	Level 2	$	494,178	$	535,550	$	—	$	—
6.875% senior notes(4) (5)	Level 2	$	—	$	—	$	380,567	$	372,488
5.875 % senior notes (4) (5)	Level 2	$	395,944	$	413,000	$	395,415	$	356,000
3.278% insurance premium notes(6)	Level 2	$	6,150	$	6,150	$	6,475	$	6,475
Revolving line of credit(6)	Level 3	$	278,800	$	278,800	$	202,500	$	202,500
Other financing obligation(6)	Level 2	$	—	$	—	$	2,320	$	2,320
Mortgage repurchase facilities(6)	Level 2	$	77,798	$	77,798	$	104,555	$	104,555

⁽¹⁾

Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.

⁽²⁾The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans.

⁽³⁾Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments.

⁽⁴⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽⁵⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $5.8 million and $4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $4.9 million and $4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively.

⁽⁶⁾Carrying amount approximates fair value due to short-term nature and interest rate terms.

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Interest (Schedule Of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest [Abstract]
Interest capitalized beginning of period	$ 63,068	$ 47,797	$ 53,842	$ 41,762
Interest capitalized during period	19,325	16,109	55,792	43,387
Less: capitalized interest in cost of sales	(14,258)	(12,334)	(41,499)	(33,577)
Interest capitalized end of period	$ 68,135	$ 51,572	$ 68,135	$ 51,572

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Warranties (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Warranties [Abstract]
Warranty adjustment	$ (573)	$ (597)	$ (350)	$ (757)

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Stock-Based Compensation (Summary Of Outstanding Restricted Stock And Performance Stock Units) (Details) - Restricted Stock Units And Performance Share Units [Member] shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested units | shares	1,225
Unrecognized compensation cost | $	$ 16,421
Period to recognize compensation cost	1 year 7 months 6 days

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Interest

9 Months Ended

Sep. 30, 2019

Interest [Abstract]

Interest

10. Interest

Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three and nine months ended September 30, 2019 and 2018, we capitalized all interest costs incurred during these periods, except for interest incurred on our mortgage repurchase facilities.

Our interest costs are as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Interest capitalized beginning of period	$	63,068	$	47,797	$	53,842	$	41,762
Interest capitalized during period		19,325		16,109		55,792		43,387
Less: capitalized interest in cost of sales		(14,258)		(12,334)		(41,499)		(33,577)
Interest capitalized end of period	$	68,135	$	51,572	$	68,135	$	51,572

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Prepaid Expenses and Other Assets

9 Months Ended

Sep. 30, 2019

Prepaid Expenses and Other Assets [Abstract]

Prepaid Expenses and Other Assets

6. Prepaid Expenses and Other Assets

Prepaid expenses and other assets included the following (in thousands):

	September 30,		December 31,
	2019		2018
Prepaid insurance	$	29,311	$	20,226
Lot option and escrow deposits		50,758		51,038
Performance deposits		6,814		4,552
Deferred financing costs revolving line of credit, net		3,530		4,155
Restricted cash(1)		3,084		3,539
Secured note receivable		2,632		4,947
Right of use assets		16,760		—
Insurance receivable and other		17,036		51,940
Total prepaid expenses and other assets	$	129,925	$	140,397

⁽¹⁾ Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities.

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Warranties (Tables)

9 Months Ended

Sep. 30, 2019

Warranties [Abstract]

Schedule Of Changes In Warranty Accrual

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Beginning balance	$	9,768	$	10,269	$	7,970	$	8,531
Warranty reserve assumed in business combination		—		—		—		397
Warranty expense provisions		1,665		1,568		5,433		4,789
Payments		(870)		(968)		(3,063)		(2,688)
Warranty adjustment		(573)		(597)		(350)		(757)
Ending balance	$	9,990	$	10,272	$	9,990	$	10,272

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Stock-Based Compensation [Abstract]

Summary Of Outstanding Restricted Stock And Performance Stock Units

	As of September 30, 2019
Unvested units		1,225
Unrecognized compensation cost	$	16,421
Period to recognize compensation cost		1.6 years

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock shares authorized	50,000,000	50,000,000
Preferred stock shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	31,249,373	30,154,791
Common stock shares outstanding	31,249,373	30,154,791

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Basis of Presentation

9 Months Ended

Sep. 30, 2019

Basis of Presentation [Abstract]

Basis of Presentation

1. Basis of Presentation

Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Michigan, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land.  We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes. Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment.

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH, LLC (which we refer to as “WJH” or “Wade Jurney Homes”) for $37.5 million. On the acquisition date, WJH had operations in Alabama, Florida, Georgia, North Carolina and South Carolina.

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2018, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We currently do not have any variable interest entities in which we are deemed the primary beneficiary. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Reclassifications

In order to conform to current year presentation, mortgage loans held for investment and derivative assets of $1.0 million and $0.7 million, respectively, have been reclassified to prepaid expenses and other assets from mortgage loans held for sale on the condensed consolidated balance sheets as of December 31, 2018.

Recently Adopted Accounting Standards

Leases

The Financial Accounting Standards Board (which we refer to as “FASB”) issued Accounting Standards Codification (ASC) 842, Leases (which we refer to as “ASC 842”) which requires the recognition of lease assets and lease liabilities by lessees for most leases.  ASC 842 is effective for the Company beginning January 1, 2019 and interim periods within the annual period.  We adopted ASC 842 under

a modified retrospective approach using the option to apply the transition provisions on the effective date January 1, 2019. The modified retrospective approach allows the Company to carry forward our historical lease classification, and to present historical periods under legacy lease accounting guidance. The Company’s leases primarily consist of leases for office space, and computer and office equipment where we are the lessee.

ASC 842 includes several practical expedients which we elected upon adoption including to (a) not reassess the lease classification for any expired or existing leases and (b) not reassess whether previously capitalized initial direct costs qualify for capitalization under ASC 842. Additionally, we elected to utilize hindsight when determining the lease term.

The adoption of ASC 842 resulted in the establishment of a right of use asset of $17.7 million and a lease liability of $18.7 million on our condensed consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not impact stockholders’ equity.

Recently Issued Accounting Standards

In June 2016, the FASB issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The standard changes the accounting for credit losses for most financial assets and certain other instruments. Credit losses which have historically been accounted for on an incurred loss basis will now be accounted for using an estimate of lifetime expected credit losses. This will generally result in earlier recognition of allowances for credit losses. The standard is effective for the Company on January 1, 2020. Upon adoption, the standard will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We anticipate ASU 2016-13 will apply to certain of our loans held for investment and certain receivable balances. We do not anticipate this standard having a material effect on the consolidated financial statements and related disclosures.

In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company January 1, 2020. Upon adoption, the Company has elected to apply the standard prospectively. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

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Basis of Presentation (Narrative) (Details) $ in Thousands		9 Months Ended
	Jun. 14, 2018 USD ($)	Sep. 30, 2019 USD ($) segment	Jan. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)	Nov. 30, 2016
Summary of Significant Accounting Policies [Line Items]
Number of operating segments | segment		5
Mortgage loans held for investment reclassified to prepaid and other assets				$ 1,000
Derivative assets reclassified to prepaid and other assets				$ 700
Right of use asset		$ 16,760
Lease liabilities - operating leases		$ 17,380
ASC 842 [Member]
Summary of Significant Accounting Policies [Line Items]
Right of use asset			$ 17,700
Lease liabilities - operating leases			$ 18,700
Wade Jurney Homes [Member]
Summary of Significant Accounting Policies [Line Items]
Ownership interest	50.00%				50.00%
Business combination, purchase price	$ 37,500

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Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 3.9	$ 3.8	$ 11.4	$ 10.1
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted			0.3
Grant date fair value			$ 22.01
Awards vesting period			3 years
Performance Share Units [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target range			0.00%
Performance Share Units [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance target range			250.00%
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted			0.6
Grant date fair value			$ 23.85
Awards vesting period			3 years

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Debt (Schedule Of Outstanding Debt Obligations) (Details) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Debt [Abstract]
6.750% senior notes, due May 2027	[1]	$ 494,178
5.875% senior notes, due July 2025	[1]	395,944	$ 395,415
6.875% senior notes, due May 2022	[1]		380,567
Insurance premium notes and other financing obligations		6,150	8,795
Notes payable		896,272	784,777
Revolving line of credit, due April 2022		278,800	202,500
Mortgage repurchase facilities		77,798	104,555
Total debt (Carrying amount)		$ 1,252,870	$ 1,091,832

[1] The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.

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Accrued Expenses and Other Liabilities (Schedule Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Accrued Expenses and Other Liabilities [Abstract]
Earnest money deposits	$ 13,805		$ 13,990
Warranty reserve	9,990	$ 9,768	7,970	$ 10,272	$ 10,269	$ 8,531
Accrued compensation costs	22,636		29,770
Land development and home construction accruals	117,511		77,748
Accrued interest	18,327		15,636
Lease liabilities - operating leases	17,380
Liability for product financing arrangements and other	7,169		68,043
Total accrued expenses and other liabilities	$ 206,818		$ 213,157

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Reporting Segments (Schedule Of Total Revenue And Pretax Income By Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total revenue	$ 590,362	$ 561,729	$ 1,743,369	$ 1,495,467
Total income (loss) before income tax expense	34,840	22,858	78,667	92,468
West [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	116,874	105,949	364,220	354,087
Total income (loss) before income tax expense	9,013	7,478	27,634	29,494
Mountain [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	171,617	162,912	510,693	488,928
Total income (loss) before income tax expense	20,552	18,753	62,386	61,995
Texas [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	68,812	56,220	180,820	157,793
Total income (loss) before income tax expense	8,290	3,539	17,626	10,319
Southeast [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	118,610	141,458	356,236	360,653
Total income (loss) before income tax expense	7,079	10,401	17,467	24,106
Wade Jurney Homes [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	104,030	87,468	302,666	112,714
Total income (loss) before income tax expense	6,032	451	18,323	265
Financial Services [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	10,419	7,722	28,734	21,292
Total income (loss) before income tax expense	2,245	1,666	5,984	5,456
Corporate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total income (loss) before income tax expense	$ (18,371)	$ (19,430)	$ (70,753)	$ (39,167)

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Business Combinations (Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Jun. 14, 2018
Assets acquired and liabilities assumed
Goodwill	$ 30,395	$ 30,395
Wade Jurney Homes [Member]
Assets acquired and liabilities assumed
Cash and cash equivalents			$ 9,464
Cash held in escrow			260
Accounts receivable			1,042
Inventories			156,828
Prepaid expenses and other assets			7,710
Amortizable intangible assets, net			3,600
Goodwill			3,317
Total assets			182,221
Accounts payable			12,516
Accrued expenses and other liabilities			2,349
Total senior notes and revolving line of credit			94,231
Total liabilities			109,096
Fair value of assets acquired			$ 73,125

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Prepaid Expenses and Other Assets (Schedule Of Prepaid Expenses And Other Assets) (Details) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Prepaid Expenses and Other Assets [Abstract]
Prepaid insurance		$ 29,311	$ 20,226
Lot option and escrow deposits		50,758	51,038
Performance deposits		6,814	4,552
Deferred financing costs revolving line of credit, net		3,530	4,155
Restricted cash	[1]	3,084	3,539
Secured note receivable		2,632	4,947
Right of use assets		16,760
Insurance receivable and other		17,036	51,940
Total prepaid expenses and other assets		$ 129,925	$ 140,397

[1] Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities.

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Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Due in 12 month period ended September 30,
2020	$ 5,136
2021	5,191
2022	3,734
2023	3,083
2024	2,029
Thereafter	622
Total	19,795
Less: discount	(2,415)
Total lease liabilities	$ 17,380

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Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator
Net income	$ 27,024	$ 17,048	$ 59,636	$ 70,261
Less: Undistributed earnings allocated to participating securities				(58)
Net income allocable to common stockholders	$ 27,024	$ 17,048	$ 59,636	$ 70,203
Denominator
Weighted average common shares outstanding - basic	30,587,487	30,232,376	30,378,860	29,885,858
Dilutive effect of restricted stock units	318,748	322,505	262,334	303,200
Weighted average common shares outstanding - diluted	30,906,235	30,554,881	30,641,194	30,189,058
Earnings per share:
Basic	$ 0.88	$ 0.56	$ 1.96	$ 2.35
Diluted	$ 0.87	$ 0.56	$ 1.95	$ 2.33

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Inventories (Tables)

9 Months Ended

Sep. 30, 2019

Inventories [Abstract]

Schedule Of Inventories

	September 30,		December 31,
	2019		2018
Homes under construction	$	1,205,232	$	1,073,682
Land and land development		820,126		720,719
Capitalized interest		68,135		53,842
Total inventories	$	2,093,493	$	1,848,243

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Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2019

Supplemental Guarantor Information [Abstract]

Supplemental Guarantor Information

18. Supplemental Guarantor Information

Our 5.875% senior notes due 2025 and 6.750% senior notes due 2027 (which we collectively refer to as our “Senior Notes”) are our unsecured senior obligations and are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by substantially all of our direct and indirect wholly-owned operating subsidiaries (which we refer to collectively as “Guarantors”). In addition, our former 6.875% senior notes due 2022 which were extinguished during the second quarter of 2019, were our unsecured senior obligations and were fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the Guarantors.

Each of the indentures governing our Senior Notes provides that the guarantees of a Guarantor will be automatically and unconditionally released and discharged: (1) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the equity interests of such Guarantor after which the applicable Guarantor is no longer a “Restricted Subsidiary” (as defined in the respective indentures), which sale, transfer, exchange or other disposition does not constitute an “Asset Sale” (as defined in the respective indentures) or is made in compliance with applicable provisions of the applicable indenture; (2) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the assets of such Guarantor, which sale, transfer, exchange or other disposition does not constitute an Asset Sale or is made in compliance with applicable provisions of the applicable indenture; provided, that after such sale, transfer, exchange or other disposition, such Guarantor is an “Immaterial Subsidiary” (as defined in the respective indentures); (3) unless a default has occurred and is continuing, upon the release or discharge of such Guarantor from its guarantee of any indebtedness for borrowed money of the Company and the Guarantors so long as such Guarantor would not then otherwise be required to provide a guarantee pursuant to the applicable indenture; provided that if such Guarantor has incurred any indebtedness in reliance on its status as a Guarantor in compliance with applicable provisions of the applicable Indenture, such Guarantor’s obligations under such indebtedness, as the case may be, so incurred are satisfied in full and discharged or are otherwise permitted to be incurred by a Restricted Subsidiary (other than a Guarantor) in compliance with applicable provisions of the applicable Indenture; (4) upon the designation of such Guarantor as an “Unrestricted Subsidiary” (as defined in the respective Indentures), in accordance with the applicable indenture; (5) if the Company exercises its legal defeasance option or covenant defeasance option under the applicable indenture or if the obligations of the Company and the Guarantors are discharged in compliance with applicable provisions of the applicable indenture, upon such exercise or discharge; or (6) in connection with the dissolution of such Guarantor under applicable law in accordance with the applicable indenture. The indenture governing our former 6.875% senior notes due 2022 contained a similar provision.

As the guarantees were made in connection with exchange offers effected in February 2015, October 2015 and April 2017 and the issuance of the 5.875% senior notes due 2025 and of the 6.750% senior notes due 2027, the Guarantors’ condensed financial information is presented as if the guarantees existed during the periods presented. If any Guarantors are released from the guarantees in future periods, the changes are reflected prospectively.

We have determined that separate, full financial statements of the Guarantors would not be material to investors, and accordingly, supplemental financial information is presented below:

‎

	Supplemental Condensed Consolidated Balance Sheet
	As of September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Cash held in escrow		—		30,362		—		—		30,362
Accounts receivable		4,043		13,989		(103)		—		17,929
Investment in consolidated subsidiaries		2,107,232		—		—		(2,107,232)		—
Inventories		—		2,093,493		—		—		2,093,493
Mortgage loans held for sale		—		—		95,321		—		95,321
Prepaid expenses and other assets		8,451		108,265		13,209		—		129,925
Deferred tax assets, net		14,277		—		—		—		14,277
Property and equipment, net		15,179		19,247		832		—		35,258
Amortizable intangible assets, net		—		4,094		—		—		4,094
Goodwill		—		30,395		—		—		30,395
Total assets	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	190		77,882		623		—	$	78,695
Accrued expenses and other liabilities		30,785		166,443		9,590		—		206,818
Notes payable		890,122		6,150		—		—		896,272
Revolving line of credit		278,800		—		—		—		278,800
Mortgage repurchase facilities		—		—		77,798		—		77,798
Total liabilities		1,199,897		250,475		88,011		—		1,538,383
Stockholders’ equity:		951,179		2,051,495		55,737		(2,107,232)		951,179
Total liabilities and stockholders’ equity	$	2,151,076	$	2,301,970	$	143,748	$	(2,107,232)	$	2,489,562

	Supplemental Condensed Consolidated Balance Sheet
	As of December 31, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Assets
Cash and cash equivalents	$	2,183		2,101		28,618		—	$	32,902
Cash held in escrow		—		24,344		—		—		24,344
Accounts receivable		6,117		7,424		(77)		—		13,464
Investment in consolidated subsidiaries		1,827,456		—		—		(1,827,456)		—
Inventories		—		1,848,243		—		—		1,848,243
Mortgage loans held for sale		—		—		112,394		—		112,394
Prepaid expenses and other assets		51,177		85,224		3,996		—		140,397
Deferred tax assets, net		13,763		—		—		—		13,763
Property and equipment, net		13,274		18,989		995		—		33,258
Amortizable intangible assets, net		—		5,095		—		—		5,095
Goodwill		—		30,395		—		—		30,395
Total assets	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255
Liabilities and stockholders’ equity
Liabilities:
Accounts payable	$	623		88,627		657		—	$	89,907
Accrued expenses and other liabilities		75,506		131,548		6,103		—		213,157
Notes payable		775,982		8,795		—		—		784,777
Revolving line of credit		202,500		—		—		—		202,500
Mortgage repurchase facilities		—		—		104,555		—		104,555
Total liabilities		1,054,611		228,970		111,315		—		1,394,896
Stockholders’ equity:		859,359		1,792,845		34,611		(1,827,456)		859,359
Total liabilities and stockholders’ equity	$	1,913,970	$	2,021,815	$	145,926	$	(1,827,456)	$	2,254,255

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		573,860		—		—	$	573,860
Land sales and other revenues			—		6,083		—		—		6,083
			—		579,943		—		—		579,943
Financial services revenue			—		—		10,419				10,419
Total revenues			—		579,943		10,419		—		590,362
Homebuilding cost of revenues
Cost of home sales revenues			—		(469,834)		—		—		(469,834)
Cost of land sales and other revenues			—		(4,624)		—		—		(4,624)
			—		(474,458)		—		—		(474,458)
Financial services costs			—		—		(8,174)				(8,174)
Selling, general and administrative			(17,621)		(55,213)		—		—		(72,834)
Equity in earnings from consolidated subsidiaries			39,268		—		—		(39,268)		—
Other income (expense)			104		(119)		(41)		—		(56)
Income before income tax expense			21,751		50,153		2,204		(39,268)		34,840
Income tax expense			5,273		(12,539)		(550)		—		(7,816)
Net income		$	27,024	$	37,614	$	1,654	$	(39,268)	$	27,024

		Supplemental Condensed Consolidated Statement of Operations
	For the Three Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—	$	552,876	$	—	$	—	$	552,876
Land sales and other revenues			—		1,131		—		—		1,131
			—		554,007		—		—		554,007
Financial services revenue			—		—		7,722		—		7,722
Total revenues			—		554,007		7,722		—		561,729
Homebuilding cost of revenues
Cost of home sales revenues			—		(460,144)		—		—		(460,144)
Cost of land sales and other revenues			—		(1,093)		—		—		(1,093)
			—		(461,237)		—		—		(461,237)
Financial services costs			—		—		(6,056)		—		(6,056)
Selling, general and administrative			(20,187)		(50,788)		—		—		(70,975)
Acquisition expense			(58)		—		—		—		(58)
Equity in earnings from consolidated subsidiaries			32,282		—		—		(32,282)		—
Other income (expense)			61		(606)		—		—		(545)
Income before income tax expense			12,098		41,376		1,666		(32,282)		22,858
Income tax expense			4,950		(10,344)		(416)		—		(5,810)
Net income		$	17,048	$	31,032	$	1,250	$	(32,282)	$	17,048

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		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2019 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,705,798		—		—	$	1,705,798
Land sales and other revenues			—		8,837		—		—		8,837
			—		1,714,635		—		—		1,714,635
Financial services revenue			—		—		28,734				28,734
Total revenues			—		1,714,635		28,734		—		1,743,369
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,407,519)		—		—		(1,407,519)
Cost of land sales and other revenues			—		(6,115)		—		—		(6,115)
			—		(1,413,634)		—		—		(1,413,634)
Financial services costs			—		—		(22,750)		—		(22,750)
Selling, general and administrative			(55,089)		(161,898)		—		—		(216,987)
Loss on debt extinguishment			(10,832)		—		—		—		(10,832)
Equity in earnings from consolidated subsidiaries			108,939		—		—		(108,939)		—
Other income (expense)			(664)		57		108		—		(499)
Income before income tax expense			42,354		139,160		6,092		(108,939)		78,667
Income tax expense			17,282		(34,790)		(1,523)		—		(19,031)
Net income		$	59,636	$	104,370	$	4,569	$	(108,939)	$	59,636

		Supplemental Condensed Consolidated Statement of Operations
	For the Nine Months Ended September 30, 2018 (in thousands)
				Guarantor		Non Guarantor		Elimination		Consolidated
		Century		Subsidiaries		Subsidiaries		Entries		Century
Revenues
Homebuilding revenues
Home sales revenues		$	—		1,469,871		—		—	$	1,469,871
Land sales and other revenues			—		4,304		—		—		4,304
			—		1,474,175		—		—		1,474,175
Financial services revenue			—		—		21,292		—		21,292
Total revenues			—		1,474,175		21,292		—		1,495,467
Homebuilding cost of revenues
Cost of homes sales revenues			—		(1,206,924)		—		—		(1,206,924)
Cost of land sales and other revenues			—		(3,010)		—		—		(3,010)
			—		(1,209,934)		—		—		(1,209,934)
Financial services costs			—		—		(15,836)		—		(15,836)
Selling, general and administrative			(53,802)		(137,328)		—		—		(191,130)
Acquisition expense			(395)		—		—		—		(395)
Equity in earnings from consolidated subsidiaries			97,688		—		—		(97,688)		—
Equity in income from unconsolidated subsidiaries			14,849		—		—		—		14,849
Other income (expense)			(194)		(359)		—		—		(553)
Income before income tax expense			58,146		126,554		5,456		(97,688)		92,468
Income tax expense			12,115		(32,904)		(1,418)		—		(22,207)
Net income		$	70,261	$	93,650	$	4,038	$	(97,688)	$	70,261

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	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2019 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(52,863)		(112,548)		16,447		—	$	(148,964)
Net cash provided by/(used in) investing activities	$	(146,499)		(7,610)		163		142,391	$	(11,555)
Financing activities
Borrowings under revolving credit facilities	$	1,184,800		—		—		—	$	1,184,800
Payments on revolving credit facilities		(1,108,500)		—		—		—		(1,108,500)
Proceeds from the issuance of senior notes due 2027		500,000		—		—		—		500,000
Extinguishment of senior notes due 2022		(391,942)		—		—		—		(391,942)
Debt issuance costs		(6,075)		—		—		—		(6,075)
Proceeds from the issuance of insurance premium notes and other		—		12,629		—		—		12,629
Principal payments on insurance notes payable		—		(19,275)		—		—		(19,275)
Net proceeds from mortgage repurchase facilities		—		—		(26,757)		—		(26,757)
Net proceeds from issuances of common stock		25,817		—		—		—		25,817
Repurchases of common stock upon vesting of stock based compensation		(3,588)		—		—		—		(3,588)
Repurchases of common stock under our stock repurchase program		(1,439)		—		—		—		(1,439)
Payments from (and advances to) parent/subsidiary		—		125,834		16,557		(142,391)		—
Net cash provided by (used in) financing activities	$	199,073	$	119,188	$	(10,200)	$	(142,391)	$	165,670
Net increase (decrease)	$	(289)	$	(970)	$	6,410	$	—	$	5,151
Cash and cash equivalents and Restricted cash
Beginning of period	$	2,183		4,006		30,252		—	$	36,441
End of period	$	1,894	$	3,036	$	36,662	$	—	$	41,592
Cash and cash equivalents	$	1,894		2,125		34,489		—	$	38,508
Restricted Cash		—		911		2,173		—		3,084
Cash and cash equivalents and Restricted cash	$	1,894	$	3,036	$	36,662	$	—	$	41,592

	Supplemental Condensed Consolidated Statement of Cash Flows
	For the Nine Months Ended September 30, 2018 (in thousands)
			Guarantor		Non Guarantor		Elimination		Consolidated
	Century		Subsidiaries		Subsidiaries		Entries		Century
Net cash provided by/(used in) operating activities	$	(71,743)		(123,418)		(5,256)		(16,580)	$	(216,997)
Net cash provided by/(used in) investing activities	$	(153,607)		(165,939)		(159)		280,048	$	(39,657)
Financing activities
Borrowings under revolving credit facilities	$	520,000		—		—		—	$	520,000
Payments on revolving credit facilities		(284,000)		—		—		—		(284,000)
Proceeds from insurance notes payable		—		11,838		—		—		11,838
Extinguishments of debt assumed in business combination		(94,231)		—		—		—		(94,231)
Debt issuance costs		(3,521)		—		—		—		(3,521)
Principal payments on notes payable		(9)		(2,164)		—		—		(2,173)
Repurchases of common stock upon vesting of stock based compensation		(5,483)		—		—		—		(5,483)
Payments from (and advances to) parent/subsidiary		5,130		263,120		11,798		(280,048)		—
Net proceeds from mortgage repurchase facilities		—		—		9,008		—		9,008
Net proceeds from issuances of common stock		31,230		—		—		—		31,230
Net cash provided by (used in) financing activities	$	169,116	$	272,794	$	20,806	$	(280,048)	$	182,668
Net increase (decrease)	$	(56,234)	$	(16,563)	$	15,391	$	(16,580)	$	(73,986)
Cash and cash equivalents and Restricted cash
Beginning of period	$	56,234		28,044		9,435		—	$	93,713
End of period	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727
Cash and cash equivalents	$	—		8,922		23,585		(16,580)	$	15,927
Restricted Cash		—		2,559		1,241		—		3,800
Cash and cash equivalents and Restricted cash	$	—	$	11,481	$	24,826	$	(16,580)	$	19,727

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Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Stockholders' Equity [Abstract]

Stockholders' Equity

14. Stockholders’ Equity

Our authorized capital stock consists of 100.0 million shares of common stock, par value $0.01 per share, and 50.0 million shares of preferred stock, par value $0.01 per share. As of September 30, 2019 and December 31, 2018, there were 31.2 million and 30.2 million shares of common stock issued and outstanding, respectively.

On May 10, 2017, our stockholders approved the adoption of the Century Communities, Inc. 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”), which replaced our First Amended & Restated 2013 Long-Term Incentive Plan.  We had reserved a total of 1.8 million shares of our common stock for issuance under our First Amended & Restated 2013 Long-Term Incentive Plan, of which approximately 0.6 million shares rolled over into the 2017 Incentive Plan when it became effective. On May 8, 2019, our stockholders approved an amended and restated 2017 Omnibus Incentive Plan, which increased the number of shares of our common stock authorized for issuance under the 2017 Incentive Plan by an additional 1.631 million shares. We issued 0.3 million shares of our common stock related to the vesting of RSUs during the nine months ended September 30, 2019.

On July 3, 2018, we entered into a Distribution Agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated (the “Distribution Agreement”), as sales agents pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through any of the sales agents party thereto in “at-the-market” offerings. During the three and nine months ended September 30, 2019, we sold and issued an aggregate of 0.8 million shares and 0.9 million shares, respectively, of our common stock under the Distribution Agreement, which provided gross proceeds of $23.7 million and $26.5 million, respectively, and in connection with such sales, paid total offering costs of $0.6 million and $0.7 million, respectively. During the three and nine months ended September 30, 2018, we sold and issued an aggregate of 0.6

million and 1.1 million shares of our common stock under the Second and Third Distribution Agreements, which provided gross proceeds of $17.4 million and $32.4 million, respectively, and, in connection with such sales, paid total offering costs of $0.5 million and $1.1 million respectively. The Distribution Agreement will remain in full force and effect until terminated by either party pursuant to the terms of the agreement or such date that the maximum offering amount has been sold in accordance with the terms of the agreement. This Distribution Agreement had $56.1 million remaining as of September 30, 2019.

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Interest (Tables)

9 Months Ended

Sep. 30, 2019

Interest [Abstract]

Schedule Of Capitalized Interest Costs

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Interest capitalized beginning of period	$	63,068	$	47,797	$	53,842	$	41,762
Interest capitalized during period		19,325		16,109		55,792		43,387
Less: capitalized interest in cost of sales		(14,258)		(12,334)		(41,499)		(33,577)
Interest capitalized end of period	$	68,135	$	51,572	$	68,135	$	51,572

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Business Combinations

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

WJH, LLC - Wade Jurney Homes

On June 14, 2018, we acquired the remaining 50% ownership interest in WJH for $37.5 million, whereby WJH became a 100% owned subsidiary of the Company. We initially acquired a 50% ownership interest in WJH in November 2016 as part of a joint venture, which was accounted for under the equity method of accounting. Our Wade Jurney Homes brand targets first time homebuyers in markets which are traditionally underserved by new homebuilders, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. The acquired assets primarily include homes under construction that are in various stages of completion and are geographically dispersed. We determined that the fair value of the gross assets acquired was not concentrated in a single identifiable asset or group of similar identifiable assets. As the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single-family residences, we concluded that the acquisition represents a business combination. We incurred $0.4 million in acquisition costs.

Authoritative guidance on accounting for business combinations requires that an acquirer re-measure its previously held equity interest in the acquisition at its acquisition date fair value and recognize the resulting gain or loss in earnings. As such, we valued our previously held equity interest in WJH at June 14, 2018 at $35.6 million, which was inclusive of an estimated discount for lack of control of $1.9 million, and recognized a gain of $7.2 million during the nine months ended September 30, 2018.

The following table outlines the total consideration transferred, inclusive of cash acquired and the fair value of our previously held equity interest (in thousands):

Cash consideration transferred for 50% ownership interest	$	37,500
Previously held equity interest acquisition date fair value		35,625
Net assets acquired	$	73,125

The following table summarizes our estimates of the assets acquired and liabilities assumed as of the acquisition date (in thousands):  

Cash and cash equivalents	$	9,464
Cash held in escrow		260
Accounts receivable		1,042
Inventories		156,828
Prepaid expenses and other assets		7,710
Amortizable intangible assets, net		3,600
Goodwill		3,317
	$	182,221
Accounts payable	$	12,516
Accrued expenses and other liabilities		2,349
Total senior notes and revolving line of credit		94,231
Total liabilities		109,096
Fair value of assets acquired	$	73,125

Acquired inventories consist primarily of work in process inventories. We estimated the fair value of acquired work in process inventories based upon the stage of production of each unit and a gross margin that we believe a market participant would require to complete the remaining development and requisite selling efforts.  The stage of production, as of the acquisition date, ranged from recently started lots to fully completed single family residences. Amortizable intangible assets include acquired trade names and a non-compete agreement, which were estimated to have fair values of $3.3 million and $0.3 million, respectively, and are amortized over 10 years and 2 years, respectively. 

The Company determined that WJH’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. 

Pro Forma Financial Information

Pro forma revenue and income before tax expense for the nine months ended September 30, 2018 give effect to the results of the acquisition of WJH. The effect of the WJH acquisition is reflected as though the acquisition date was as of January 1, 2018.  Unaudited pro forma income before tax expense adjusts the operating results of WJH to reflect the additional costs that would have been recorded assuming the fair value adjustments had been applied as of the beginning of the year preceding the year of the acquisition and excludes acquisition expense incurred related to the transactions.

	Nine Months Ended September 30, 2018
Total revenues	$	1,645,858
Income before tax expense	$	87,092
Income tax expense		(21,773)
Net income	$	65,319
Less: Undistributed earnings allocated to participating securities		(54)
Numerator for basic and diluted pro forma EPS	$	65,265
Pro forma weighted average shares-basic		29,885,858
Pro forma weighted average shares-diluted		30,189,058
Pro forma basic EPS	$	2.18
Pro forma diluted EPS	$	2.16

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Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Information Of Lease Right Of Use Asset And Lease Liability

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Cash paid for operating lease liabilities	$	1,460		$	4,183
Right-of-use assets obtained in exchange for new operating lease obligations	$	1,275		$	2,785
Weighted-average remaining lease term		4.05 years			4.05 years
Weighted-average discount rate		6.38	%		6.38	%

Maturities Of Lease Liabilities

Due in 12 month period ended September 30,
2020	$	5,136
2021		5,191
2022		3,734
2023		3,083
2024		2,029
Thereafter		622
Total		19,795
Less: discount		(2,415)
Total lease liabilities	$	17,380

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-36491
Entity Central Index Key	0001576940
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Registrant Name	Century Communities, Inc.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	8390 East Crescent Parkway
Entity Address, Address Line Two	Suite 650
Entity Address, City or Town	Greenwood Village
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80111
Entity Tax Identification Number	68-0521411
City Area Code	303
Local Phone Number	770-8300
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CCS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		31,347,379

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income	$ 59,636	$ 70,261
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	9,793	8,803
Stock-based compensation expense	11,391	10,135
Loss on debt extinguishment	10,832
Deferred income taxes	(514)	(804)
Distributions from unconsolidated subsidiaries		7,432
Equity in income of unconsolidated subsidiaries		(14,849)
(Gain) loss on disposition of assets	846	1,399
Changes in assets and liabilities:
Cash held in escrow	(6,018)	6,077
Accounts receivable	(4,465)	(13,324)
Inventories	(215,771)	(243,355)
Prepaid expenses and other assets	33,346	(32,640)
Accounts payable	(11,212)	3,267
Accrued expenses and other liabilities	(53,901)	(9,285)
Mortgage loans held for sale	17,073	(10,114)
Net cash provided by (used in) operating activities	(148,964)	(216,997)
Investing activities
Purchases of property and equipment	(11,633)	(11,893)
Business combinations, net of acquired cash		(28,036)
Other investing activities	78	272
Net cash provided by (used in) investing activities	(11,555)	(39,657)
Financing activities
Borrowings under revolving credit facilities	1,184,800	520,000
Payments on revolving credit facilities	(1,108,500)	(284,000)
Proceeds from issuance of senior notes due 2027	500,000
Extinguishment of senior notes due 2022	(391,942)
Proceeds from issuance of insurance premium notes and other	12,629	11,838
Principal payments on insurance notes payable and other	(19,275)	(2,173)
Extinguishments of debt assumed in business combination		(94,231)
Debt issuance costs	(6,075)	(3,521)
Net payments on mortgage repurchase facilities	(26,757)	9,008
Net proceeds from issuances of common stock	25,817	31,230
Repurchases of common stock upon vesting of stock based compensation	(3,588)	(5,483)
Repurchases of common stock under our stock repurchase program	(1,439)
Net cash provided by (used in) financing activities	165,670	182,668
Net increase (decrease)	5,151	(73,986)
Cash and cash equivalents and Restricted cash, Beginning of period	36,441	93,713
Cash and cash equivalents and Restricted cash, End of period	41,592	19,727
Supplemental cash flow disclosure
Cash paid for income taxes	20,722	39,326
Cash and cash equivalents and Restricted cash
Cash and cash equivalents	38,508	15,927
Restricted cash (Note 6)	$ 3,084	$ 3,800

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Warranties

9 Months Ended

Sep. 30, 2019

Warranties [Abstract]

Warranties

8. Warranties

Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the condensed consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and adjust the amounts recorded if necessary. We decreased our warranty reserve by $0.6 million during the three months ended September 30, 2019 and during the same period in 2018. We decreased our warranty reserve by $0.4 million during the nine months ended September 30, 2019, compared to a $0.8 million decrease during the same period in 2018. These adjustments are included in cost of home sales revenues on our condensed consolidated statements of operations. Changes in our warranty accrual are detailed in the table below (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Beginning balance	$	9,768	$	10,269	$	7,970	$	8,531
Warranty reserve assumed in business combination		—		—		—		397
Warranty expense provisions		1,665		1,568		5,433		4,789
Payments		(870)		(968)		(3,063)		(2,688)
Warranty adjustment		(573)		(597)		(350)		(757)
Ending balance	$	9,990	$	10,272	$	9,990	$	10,272

 

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Inventories

9 Months Ended

Sep. 30, 2019

Inventories [Abstract]

Inventories

4. Inventories

Inventories included the following (in thousands):

	September 30,		December 31,
	2019		2018
Homes under construction	$	1,205,232	$	1,073,682
Land and land development		820,126		720,719
Capitalized interest		68,135		53,842
Total inventories	$	2,093,493	$	1,848,243

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Fair Value Disclosures

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Disclosures

12. Fair Value Disclosures

Accounting Standards Codification Topic 820, Fair Value Measurement, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories:

Level 1 — Quoted prices for identical instruments in active markets.

Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date.

Level 3 — Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date.

The following table presents carrying values and estimated fair values of financial instruments (in thousands):

		September 30, 2019				December 31, 2018
	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Secured notes receivable(1)	Level 2	$	2,632	$	2,577	$	4,947	$	4,830
Mortgage loans held for sale(2)	Level 2	$	95,321	$	95,321	$	112,394	$	112,394
Derivative assets(3)	Level 2	$	1,593	$	1,593	$	726	$	726
6.750% senior notes(4) (5)	Level 2	$	494,178	$	535,550	$	—	$	—
6.875% senior notes(4) (5)	Level 2	$	—	$	—	$	380,567	$	372,488
5.875 % senior notes (4) (5)	Level 2	$	395,944	$	413,000	$	395,415	$	356,000
3.278% insurance premium notes(6)	Level 2	$	6,150	$	6,150	$	6,475	$	6,475
Revolving line of credit(6)	Level 3	$	278,800	$	278,800	$	202,500	$	202,500
Other financing obligation(6)	Level 2	$	—	$	—	$	2,320	$	2,320
Mortgage repurchase facilities(6)	Level 2	$	77,798	$	77,798	$	104,555	$	104,555

⁽¹⁾

Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.

⁽²⁾The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans.

⁽³⁾Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments.

⁽⁴⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽⁵⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $5.8 million and $4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $4.9 million and $4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively.

⁽⁶⁾Carrying amount approximates fair value due to short-term nature and interest rate terms.

The carrying amount of cash and cash equivalents approximates fair value. Non-financial assets and liabilities are measured at fair value when acquired in a business combination. Long-lived assets determined to be impaired are measured at fair value.

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes [Abstract]
Effective tax rate	27.90%		27.90%
Blended federal and state statutary rate			25.20%
Increased to effective tax rate			2.70%
Percentage of decrease related to rate impacted by discrete items	5.50%		3.70%
Income tax expense	$ 7,816	$ 5,810	$ 19,031	$ 22,207

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Warranties (Schedule Of Changes In Warranty Accrual) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Warranties [Abstract]
Beginning balance	$ 9,768	$ 10,269	$ 7,970	$ 8,531
Warranty reserves assumed in business combination				397
Warranty expense provisions	1,665	1,568	5,433	4,789
Payments	(870)	(968)	(3,063)	(2,688)
Warranty adjustment	(573)	(597)	(350)	(757)
Ending balance	$ 9,990	$ 10,272	$ 9,990	$ 10,272

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Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Lessee, Lease, Description [Line Items]
Right of use asset	$ 16,760		$ 16,760
Lease liability	17,380		17,380
Operating lease expense	$ 1,600	$ 1,100	$ 4,300	$ 2,800
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lease term	1 year		1 year
Maximum [Member]
Lessee, Lease, Description [Line Items]
Lease term	7 years		7 years

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Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 03, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	May 08, 2019	Dec. 31, 2018	May 10, 2017
Class of Stock [Line Items]
Common stock shares authorized		100,000,000		100,000,000			100,000,000
Common stock, par value		$ 0.01		$ 0.01			$ 0.01
Preferred stock shares authorized		50,000,000		50,000,000			50,000,000
Preferred stock, par value		$ 0.01		$ 0.01			$ 0.01
Common stock shares issued		31,249,373		31,249,373			30,154,791
Common stock shares outstanding		31,249,373		31,249,373			30,154,791
Common stock shares issued related to vesting of RSUs				300,000
Net proceeds from issuances of common stock				$ 25,817	$ 31,230
First Amended And Restated 2013 Long-Term Incentive Plan [Member]
Class of Stock [Line Items]
Common stock shares for stock award issuance								1,800,000
2017 Incentive Plan [Member]
Class of Stock [Line Items]
Common stock shares for stock award, available for issuance						1,631,000
Common stock shares rolled into plan								600,000
Distribution Agreement [Member]
Class of Stock [Line Items]
Aggregate offering price	$ 100,000
Available for sale		$ 56,100		$ 56,100
Common stock shares sold and issued		800,000	600,000	900,000	1,100,000
Net proceeds from issuances of common stock		$ 23,700	$ 17,400	$ 26,500	$ 32,400
Comissions and fees paid to Sales Agents		$ 600	$ 500	$ 700	$ 1,100

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Supplemental Guarantor Information (Supplemental Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 38,508		$ 32,902	$ 15,927
Cash held in escrow	30,362		24,344
Accounts receivable	17,929		13,464
Inventories	2,093,493		1,848,243
Mortgage loans held for sale	95,321		112,394
Prepaid expenses and other assets	129,925		140,397
Deferred tax assets, net	14,277		13,763
Property and equipment, net	35,258		33,258
Amortizable intangible assets, net	4,094		5,095
Goodwill	30,395		30,395
Total assets	2,489,562		2,254,255
Liabilities:
Accounts payable	78,695		89,907
Accrued expenses and other liabilities	206,818		213,157
Notes payable	896,272		784,777
Revolving line of credit	278,800		202,500
Mortgage repurchase facilities	77,798		104,555
Total liabilities	1,538,383		1,394,896
Stockholders' equity:	951,179	$ 897,229	859,359	840,793	$ 803,706	$ 735,233
Total liabilities and stockholders' equity	2,489,562		2,254,255
Century [Member]
Assets
Cash and cash equivalents	1,894		2,183
Accounts receivable	4,043		6,117
Investment in consolidated subsidiaries	2,107,232		1,827,456
Prepaid expenses and other assets	8,451		51,177
Deferred tax assets, net	14,277		13,763
Property and equipment, net	15,179		13,274
Total assets	2,151,076		1,913,970
Liabilities:
Accounts payable	190		623
Accrued expenses and other liabilities	30,785		75,506
Notes payable	890,122		775,982
Revolving line of credit	278,800		202,500
Total liabilities	1,199,897		1,054,611
Stockholders' equity:	951,179		859,359
Total liabilities and stockholders' equity	2,151,076		1,913,970
Guarantor Subsidiaries [Member]
Assets
Cash and cash equivalents	2,125		2,101	8,922
Cash held in escrow	30,362		24,344
Accounts receivable	13,989		7,424
Inventories	2,093,493		1,848,243
Prepaid expenses and other assets	108,265		85,224
Property and equipment, net	19,247		18,989
Amortizable intangible assets, net	4,094		5,095
Goodwill	30,395		30,395
Total assets	2,301,970		2,021,815
Liabilities:
Accounts payable	77,882		88,627
Accrued expenses and other liabilities	166,443		131,548
Notes payable	6,150		8,795
Total liabilities	250,475		228,970
Stockholders' equity:	2,051,495		1,792,845
Total liabilities and stockholders' equity	2,301,970		2,021,815
Non Guarantor Subsidiaries [Member]
Assets
Cash and cash equivalents	34,489		28,618	23,585
Accounts receivable	(103)		(77)
Mortgage loans held for sale	95,321		112,394
Prepaid expenses and other assets	13,209		3,996
Property and equipment, net	832		995
Total assets	143,748		145,926
Liabilities:
Accounts payable	623		657
Accrued expenses and other liabilities	9,590		6,103
Mortgage repurchase facilities	77,798		104,555
Total liabilities	88,011		111,315
Stockholders' equity:	55,737		34,611
Total liabilities and stockholders' equity	143,748		145,926
Elimination Entries [Member]
Assets
Cash and cash equivalents				$ (16,580)
Investment in consolidated subsidiaries	(2,107,232)		(1,827,456)
Total assets	(2,107,232)		(1,827,456)
Liabilities:
Stockholders' equity:	(2,107,232)		(1,827,456)
Total liabilities and stockholders' equity	$ (2,107,232)		$ (1,827,456)

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Business Combinations (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jun. 14, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Nov. 30, 2016
Business Combinations [Line Items]
Acquisition expense			$ 58		$ 395
Revenues		$ 590,362	$ 561,729	$ 1,743,369	1,495,467
Equity in income of unconsolidated subsidiaries					$ 14,849
Wade Jurney Homes [Member]
Business Combinations [Line Items]
Acquisition expense	$ 400
Business combination, purchase price	$ 37,500
Ownership interest	50.00%					50.00%
Previously held equity interest	$ 35,625
Estimated discount for lack of control				1,900
Equity in income of unconsolidated subsidiaries				$ 7,200
Wade Jurney Homes [Member]
Business Combinations [Line Items]
Ownership subsidiary		100.00%		100.00%
Trade Names [Member] | Wade Jurney Homes [Member]
Business Combinations [Line Items]
Estimated fair value	$ 3,300
Amortization period	10 years
Non-Compete Agreements [Member] | Wade Jurney Homes [Member]
Business Combinations [Line Items]
Estimated fair value	$ 300
Amortization period	2 years

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Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Inventories [Abstract]
Homes under construction	$ 1,205,232		$ 1,073,682
Land and land development	820,126		720,719
Capitalized interest	68,135	$ 63,068	53,842	$ 51,572	$ 47,797	$ 41,762
Total inventories	$ 2,093,493		$ 1,848,243

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Reporting Segments (Tables)

9 Months Ended

Sep. 30, 2019

Reporting Segments [Abstract]

Schedule Of Total Revenue And Pretax Income By Segment

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue:
West	$	116,874	$	105,949	$	364,220	$	354,087
Mountain		171,617		162,912		510,693		488,928
Texas		68,812		56,220		180,820		157,793
Southeast		118,610		141,458		356,236		360,653
Wade Jurney Homes		104,030		87,468		302,666		112,714
Financial Services		10,419		7,722		28,734		21,292
Corporate		—		—		—		—
Total revenue	$	590,362	$	561,729	$	1,743,369	$	1,495,467
Income (loss) before income tax expense:
West	$	9,013	$	7,478	$	27,634	$	29,494
Mountain		20,552		18,753		62,386		61,995
Texas		8,290		3,539		17,626		10,319
Southeast		7,079		10,401		17,467		24,106
Wade Jurney Homes		6,032		451		18,323		265
Financial Services		2,245		1,666		5,984		5,456
Corporate		(18,371)		(19,430)		(70,753)		(39,167)
Total income before income tax expense	$	34,840	$	22,858	$	78,667	$	92,468

Schedule Of Total Assets By Segment

	September 30,		December 31,
	2019		2018
West	$	625,085	$	502,381
Mountain		674,894		621,757
Texas		222,819		209,550
Southeast		455,289		448,681
Wade Jurney		287,923		204,925
Financial Services		144,682		146,710
Corporate		78,870		120,251
Total assets	$	2,489,562	$	2,254,255

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies [Abstract]

Commitments and Contingencies

16. Commitments and Contingencies

Letters of Credit and Performance Bonds

In the normal course of business, we post letters of credit and performance bonds related to our land development performance obligations with local municipalities. As of September 30, 2019 and December 31, 2018, we had $347.6 million and $289.8 million, respectively, in letters of credit and performance bonds issued and outstanding.

Litigation

We are subject to claims and lawsuits that arise primarily in the ordinary course of business, which consist primarily of construction defect claims. It is the opinion of our management that if the claims have merit, parties other than the Company would be, at least in part, liable for the claims, and the eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows. When we believe that a loss is probable and estimable, we record a charge to selling, general, and administrative expense on our condensed consolidated statements of operations for our estimated loss.

Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions. Estimates of such amounts are recorded in other assets when recovery is probable. As of December 31, 2018, substantially all of the amounts reflected in Insurance receivable and other were related to construction claims, which were settled and amounts collected under the applicable insurance policies during the nine months ended September 30, 2019.

We do not believe that the ultimate resolution of any claims and lawsuits will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows.

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Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Total revenues	$ 590,362	$ 561,729	$ 1,743,369	$ 1,495,467
Selling, general and administrative	(72,834)	(70,975)	(216,987)	(191,130)
Loss on debt extinguishment			(10,832)
Acquisition expense		(58)		(395)
Equity in income of unconsolidated subsidiaries				14,849
Other income (expense)	(56)	(545)	(499)	(553)
Income before income tax expense	34,840	22,858	78,667	92,468
Income tax expense	(7,816)	(5,810)	(19,031)	(22,207)
Net income	27,024	17,048	59,636	70,261
Century [Member]
Revenues
Selling, general and administrative	(17,621)	(20,187)	(55,089)	(53,802)
Loss on debt extinguishment			(10,832)
Acquisition expense		(58)		(395)
Equity in earnings from consolidated subsidiaries	39,268	32,282	108,939	97,688
Equity in income of unconsolidated subsidiaries				14,849
Other income (expense)	104	61	(664)	(194)
Income before income tax expense	21,751	12,098	42,354	58,146
Income tax expense	5,273	4,950	17,282	12,115
Net income	27,024	17,048	59,636	70,261
Guarantor Subsidiaries [Member]
Revenues
Total revenues	579,943	554,007	1,714,635	1,474,175
Selling, general and administrative	(55,213)	(50,788)	(161,898)	(137,328)
Other income (expense)	(119)	(606)	57	(359)
Income before income tax expense	50,153	41,376	139,160	126,554
Income tax expense	(12,539)	(10,344)	(34,790)	(32,904)
Net income	37,614	31,032	104,370	93,650
Non Guarantor Subsidiaries [Member]
Revenues
Total revenues	10,419	7,722	28,734	21,292
Other income (expense)	(41)		108
Income before income tax expense	2,204	1,666	6,092	5,456
Income tax expense	(550)	(416)	(1,523)	(1,418)
Net income	1,654	1,250	4,569	4,038
Elimination Entries [Member]
Revenues
Equity in earnings from consolidated subsidiaries	(39,268)	(32,282)	(108,939)	(97,688)
Income before income tax expense	(39,268)	(32,282)	(108,939)	(97,688)
Net income	(39,268)	(32,282)	(108,939)	(97,688)
Home Sales [Member]
Revenues
Total revenues	573,860	552,876	1,705,798	1,469,871
Cost of revenues	(469,834)	(460,144)	(1,407,519)	(1,206,924)
Home Sales [Member] | Guarantor Subsidiaries [Member]
Revenues
Total revenues	573,860	552,876	1,705,798	1,469,871
Cost of revenues	(469,834)	(460,144)	(1,407,519)	(1,206,924)
Land Sales And Other [Member]
Revenues
Total revenues	6,083	1,131	8,837	4,304
Cost of revenues	(4,624)	(1,093)	(6,115)	(3,010)
Land Sales And Other [Member] | Guarantor Subsidiaries [Member]
Revenues
Total revenues	6,083	1,131	8,837	4,304
Cost of revenues	(4,624)	(1,093)	(6,115)	(3,010)
Homebuilding [Member]
Revenues
Total revenues	579,943	554,007	1,714,635	1,474,175
Cost of revenues	(474,458)	(461,237)	(1,413,634)	(1,209,934)
Homebuilding [Member] | Guarantor Subsidiaries [Member]
Revenues
Total revenues	579,943	554,007	1,714,635	1,474,175
Cost of revenues	(474,458)	(461,237)	(1,413,634)	(1,209,934)
Financial Services [Member]
Revenues
Total revenues	10,419	7,722	28,734	21,292
Cost of revenues	(8,174)	(6,056)	(22,750)	(15,836)
Financial Services [Member] | Non Guarantor Subsidiaries [Member]
Revenues
Total revenues	10,419	7,722	28,734	21,292
Cost of revenues	$ (8,174)	$ (6,056)	$ (22,750)	$ (15,836)

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Leases (Information Of Lease Right Of Use Asset And Lease Liability) (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)
Leases [Abstract]
Cash paid for operating lease liabilities	$ 1,460	$ 4,183
Right-of-use asset obtained in exchange for new operating lease obligations	$ 1,275	$ 2,785
Weighted-average remaining lease term	4 years 18 days	4 years 18 days
Weighted-average discount rate	6.38%	6.38%

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Earnings Per Share (Narrative) (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Anti-dilutive shares related to PSU's granted	0.6	0.3	0.6	0.3

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Reporting Segments (Schedule Of Total Assets By Segment) (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total assets	$ 2,489,562	$ 2,254,255
West [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	625,085	502,381
Mountain [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	674,894	621,757
Texas [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	222,819	209,550
Southeast [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	455,289	448,681
Wade Jurney Homes [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	287,923	204,925
Financial Services [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	144,682	146,710
Corporate [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Total assets	$ 78,870	$ 120,251

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Business Combinations (Schedule Of Pro Forma Information) (Details) - UCP, Sundquist Homes, And WJH [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Business Acquisition [Line Items]
Total revenues	$ 1,645,858
Income before tax expense	87,092
Income tax expense	(21,773)
Net income	65,319
Less: Undistributed earnings allocated to participating securities	(54)
Numerator for basic and diluted pro forma EPS	$ 65,265
Pro forma weighted average shares-basic | shares	29,885,858
Pro forma weighted average shares-diluted | shares	30,189,058
Pro forma basic EPS | $ / shares	$ 2.18
Pro forma diluted EPS | $ / shares	$ 2.16

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Business Combinations (Tables) - Wade Jurney Homes [Member]

9 Months Ended

Sep. 30, 2019

Business Combinations [Line Items]

Schedule Of Total Consideration Transferred

Cash consideration transferred for 50% ownership interest	$	37,500
Previously held equity interest acquisition date fair value		35,625
Net assets acquired	$	73,125

Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed

Cash and cash equivalents	$	9,464
Cash held in escrow		260
Accounts receivable		1,042
Inventories		156,828
Prepaid expenses and other assets		7,710
Amortizable intangible assets, net		3,600
Goodwill		3,317
	$	182,221
Accounts payable	$	12,516
Accrued expenses and other liabilities		2,349
Total senior notes and revolving line of credit		94,231
Total liabilities		109,096
Fair value of assets acquired	$	73,125

Pro Forma Financial Information [Abstract]

Schedule Of Pro Forma Information

	Nine Months Ended September 30, 2018
Total revenues	$	1,645,858
Income before tax expense	$	87,092
Income tax expense		(21,773)
Net income	$	65,319
Less: Undistributed earnings allocated to participating securities		(54)
Numerator for basic and diluted pro forma EPS	$	65,265
Pro forma weighted average shares-basic		29,885,858
Pro forma weighted average shares-diluted		30,189,058
Pro forma basic EPS	$	2.18
Pro forma diluted EPS	$	2.16

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Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

17. Leases

Under ASC 842, the Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset.

We primarily enter into operating leases for the right to use office space, and computer and office equipment, which have lease terms that generally range from 1 to 7 years and often include one or more options to renew. We include renewal terms in the lease term when it is reasonably certain that we will exercise the option. For leases entered into after January 1, 2019, we establish a right of use asset and a lease liability at the commencement date of the lease based on the present value of future minimum lease payments. As the rate implicit in each lease is not readily determinable, we utilize our incremental borrowing rate in determining the present value of future minimum payments. Our incremental borrowing rate is determined based on information available at the commencement date. We account for the lease components and non-lease components as a single lease component. As of September 30, 2019, the Company had $16.8 million and $17.4 million recognized as a right of use asset and lease liability, respectively, which are presented on the consolidated balance sheet within prepaid expenses and other assets and accrued expenses and other liabilities, respectively. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's condensed consolidated balance sheet.

Under both ASC 840 and ASC 842, operating lease expense is recognized on a straight-line basis over the lease term and was $1.6 million and $1.1 million for the three months ended September 30, 2019 and 2018, respectively. Operating lease expense was $4.3 million and $2.8 million for the nine months ended September 30, 2019 and 2018, respectively.

Information related to the Company’s right of use asset and lease liability were as follows (in thousands):

	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Cash paid for operating lease liabilities	$	1,460		$	4,183
Right-of-use assets obtained in exchange for new operating lease obligations	$	1,275		$	2,785
Weighted-average remaining lease term		4.05 years			4.05 years
Weighted-average discount rate		6.38	%		6.38	%

Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands):

Due in 12 month period ended September 30,
2020	$	5,136
2021		5,191
2022		3,734
2023		3,083
2024		2,029
Thereafter		622
Total		19,795
Less: discount		(2,415)
Total lease liabilities	$	17,380

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Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Total revenues	$ 590,362	$ 561,729	$ 1,743,369	$ 1,495,467
Selling, general and administrative	(72,834)	(70,975)	(216,987)	(191,130)
Loss on debt extinguishment			(10,832)
Acquisition expense		(58)		(395)
Equity in income of unconsolidated subsidiaries				14,849
Other income (expense)	(56)	(545)	(499)	(553)
Income before income tax expense	34,840	22,858	78,667	92,468
Income tax expense	(7,816)	(5,810)	(19,031)	(22,207)
Net income	$ 27,024	$ 17,048	$ 59,636	$ 70,261
Earnings per share:
Basic	$ 0.88	$ 0.56	$ 1.96	$ 2.35
Diluted	$ 0.87	$ 0.56	$ 1.95	$ 2.33
Weighted average common shares outstanding:
Basic	30,587,487	30,232,376	30,378,860	29,885,858
Diluted	30,906,235	30,554,881	30,641,194	30,189,058
Home Sales [Member]
Revenues
Total revenues	$ 573,860	$ 552,876	$ 1,705,798	$ 1,469,871
Cost of revenues	(469,834)	(460,144)	(1,407,519)	(1,206,924)
Land Sales And Other [Member]
Revenues
Total revenues	6,083	1,131	8,837	4,304
Cost of revenues	(4,624)	(1,093)	(6,115)	(3,010)
Homebuilding [Member]
Revenues
Total revenues	579,943	554,007	1,714,635	1,474,175
Cost of revenues	(474,458)	(461,237)	(1,413,634)	(1,209,934)
Financial Services [Member]
Revenues
Total revenues	10,419	7,722	28,734	21,292
Cost of revenues	$ (8,174)	$ (6,056)	$ (22,750)	$ (15,836)

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Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt [Abstract]

Schedule Of Outstanding Debt Obligations

	September 30,		December 31,
	2019		2018
6.750% senior notes, due May 2027(1)	$	494,178	$	—
5.875% senior notes, due July 2025(1)		395,944		395,415
6.875% senior notes, due May 2022(1)		—		380,567
Insurance premium notes and other financing obligations		6,150		8,795
Notes payable		896,272		784,777
Revolving line of credit, due April 2022		278,800		202,500
Mortgage repurchase facility		77,798		104,555
Total debt	$	1,252,870	$	1,091,832

⁽¹⁾ The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.

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Reporting Segments

9 Months Ended

Sep. 30, 2019

Reporting Segments [Abstract]

Reporting Segments

2. Reporting Segments

Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 17 states. We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Wade Jurney Homes brand targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our Wade Jurney Homes brand currently has operations in 11 states and is managed separately from our four geographic regions. Accordingly, it is considered a separate operating segment.

The management of our four geographic regions and Wade Jurney Homes reports to our chief operating decision makers (which we refer to as “CODMs”), the Co-Chief Executive Officers of our Company. The CODMs review the results of our operations, including total revenue and income before income tax expense to determine profitability and to allocate resources. Accordingly, we have presented our homebuilding operations as the following five reportable segments:

West (California and Washington)

Mountain (Colorado, Nevada and Utah)

Texas

Southeast (Georgia, North Carolina, South Carolina and Tennessee)

Wade Jurney Homes (Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Michigan, North Carolina, Ohio, South Carolina, and Texas)

We have also identified our Financial Services operations, which provide mortgage, title, and insurance services to our homebuyers, as a sixth reportable segment. Our Corporate segment is a non-operating segment, as it serves to support our homebuilding, and to a lesser extent our financial services operations, through functions, such as our executive, finance, treasury, human resources, accounting and legal departments.  The following table summarizes total revenue and income before income tax expense by segment (in thousands): 

‎

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Revenue:
West	$	116,874	$	105,949	$	364,220	$	354,087
Mountain		171,617		162,912		510,693		488,928
Texas		68,812		56,220		180,820		157,793
Southeast		118,610		141,458		356,236		360,653
Wade Jurney Homes		104,030		87,468		302,666		112,714
Financial Services		10,419		7,722		28,734		21,292
Corporate		—		—		—		—
Total revenue	$	590,362	$	561,729	$	1,743,369	$	1,495,467
Income (loss) before income tax expense:
West	$	9,013	$	7,478	$	27,634	$	29,494
Mountain		20,552		18,753		62,386		61,995
Texas		8,290		3,539		17,626		10,319
Southeast		7,079		10,401		17,467		24,106
Wade Jurney Homes		6,032		451		18,323		265
Financial Services		2,245		1,666		5,984		5,456
Corporate		(18,371)		(19,430)		(70,753)		(39,167)
Total income before income tax expense	$	34,840	$	22,858	$	78,667	$	92,468

The following table summarizes total assets by operating segment (in thousands):

	September 30,		December 31,
	2019		2018
West	$	625,085	$	502,381
Mountain		674,894		621,757
Texas		222,819		209,550
Southeast		455,289		448,681
Wade Jurney		287,923		204,925
Financial Services		144,682		146,710
Corporate		78,870		120,251
Total assets	$	2,489,562	$	2,254,255

Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, prepaid insurance, and deferred financing costs on our revolving line of credit.

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share, Basic And Diluted

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Numerator
Net income	$	27,024	$	17,048	$	59,636	$	70,261
Less: Undistributed earnings allocated to participating securities		—		—		—		(58)
Net income allocable to common stockholders	$	27,024	$	17,048	$	59,636	$	70,203
Denominator
Weighted average common shares outstanding - basic		30,587,487		30,232,376		30,378,860		29,885,858
Dilutive effect of restricted stock units		318,748		322,505		262,334		303,200
Weighted average common shares outstanding - diluted		30,906,235		30,554,881		30,641,194		30,189,058
Earnings per share:
Basic	$	0.88	$	0.56	$	1.96	$	2.35
Diluted	$	0.87	$	0.56	$	1.95	$	2.33

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2019

Stock-Based Compensation [Abstract]

Stock-Based Compensation

13. Stock-Based Compensation

During the nine months ended September 30, 2019, we granted performance share units (which we refer to as “PSUs”) covering up to 0.3 million shares of common stock, assuming maximum level of performance, with a grant date fair value of $22.01 per share that are subject to both service and performance vesting conditions. The quantity of shares that will vest under the PSUs ranges from 0% to 250% of a targeted number of shares for each participant and will be determined based on an achievement of a three year pre-tax income performance goal. During the nine months ended September 30, 2019, we also granted restricted stock units (which we refer to as “RSUs”) covering 0.6 million shares of common stock with a grant date fair value of $23.85 per share that vest over a three year period.

A summary of our outstanding RSUs and PSUs, assuming maximum level of performance, are as follows (in thousands, except years):

	As of September 30, 2019
Unvested units		1,225
Unrecognized compensation cost	$	16,421
Period to recognize compensation cost		1.6 years

During the three months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $3.9 million and $3.8 million, respectively. During the nine months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $11.4 million and $10.1 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations.

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Debt

9 Months Ended

Sep. 30, 2019

Debt [Abstract]

Debt

9. Debt

Our outstanding debt obligations included the following as of September 30, 2019 and December 31, 2018 (in thousands):  

	September 30,		December 31,
	2019		2018
6.750% senior notes, due May 2027(1)	$	494,178	$	—
5.875% senior notes, due July 2025(1)		395,944		395,415
6.875% senior notes, due May 2022(1)		—		380,567
Insurance premium notes and other financing obligations		6,150		8,795
Notes payable		896,272		784,777
Revolving line of credit, due April 2022		278,800		202,500
Mortgage repurchase facility		77,798		104,555
Total debt	$	1,252,870	$	1,091,832

⁽¹⁾ The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes.

Issuance of 6.750% Senior Notes Due 2027

In May 2019, the Company completed a private offering of $500.0 million aggregate principal amount of the Company’s 6.750% Senior Notes due 2027 (the “2027 Notes”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933. The 2027 Notes were issued under the Indenture, dated as of May 23, 2019, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “May 2019 Indenture,” as it may be supplemented or amended from time to time). The 2027 Notes were issued at 100% of their principal amount and we received net proceeds of $493.9 million. The 2027 Notes contain certain restrictive covenants on issuing future secured debt and other transactions. The aggregate principal balance of the 2027 Notes is due June 2027, with interest only payments due semi-annually in June and December of each year, beginning on December 1, 2019.

In connection with this issuance, the Company deferred $6.1 million of issuance costs, which is presented in the notes payable line item of the condensed consolidated balance sheet.

Extinguishment of 6.875% Senior Notes Due 2022

During the nine months ended September 30, 2019, the Company extinguished $385.0 million in outstanding principal of our 6.875% Senior Notes due 2022 (the “2022 Notes”). The extinguishment was the result of two separate transactions whereby a tender offer validly tendered $189.3 million of the 2022 Notes on March 23, 2019 and the remaining $195.7 million was redeemed in accordance with the Indenture agreement on June 10, 2019. The transaction resulted in a loss of $10.8 million, which is presented in loss on debt extinguishment in the consolidated statement of operations for the nine months ended September 30, 2019.

Revolving Line of Credit

We are party to an Amended and Restated Credit Agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, the lenders party thereto and certain of our subsidiaries, which, as amended most recently on February 12, 2019, provides us with a revolving line of credit of up to $640.0 million, and unless terminated earlier, will mature on April 30, 2022. Under the terms of the Amended and Restated Credit Agreement, we may request a twelve-month extension of the maturity date. Our obligations under the Amended and Restated Credit Agreement are guaranteed by certain of our subsidiaries. The Amended and Restated Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. These covenants are measured as defined in the Amended and Restated Credit Agreement and are reported to the lenders quarterly. Borrowings under the Amended and Restated Credit Agreement bear interest at a floating rate equal to the adjusted Eurodollar Rate plus an applicable margin between 2.60% and 3.10% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.60% and 2.10% per annum. As of September 30, 2019, we had $278.8 million outstanding under the credit facility and were in compliance with all covenants.

Mortgage Repurchase Facilities – Financial Services

On May 4, 2018 and September 14, 2018, Inspire entered into mortgage warehouse facilities, with Comerica Bank, and J.P. Morgan, respectively. The mortgage warehouse lines of credit (which we refer to as the “repurchase facilities”) provide Inspire with uncommitted repurchase facilities of up to an aggregate of $140 million, secured by the mortgage loans financed thereunder. Amounts outstanding under the repurchase facilities are not guaranteed by us or any of our subsidiaries and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of September 30, 2019, we had $77.8 million outstanding under these repurchase facilities and were in compliance with all covenants thereunder. No assurance can be provided, however, that we will remain in compliance with the covenants or have continued access to these facilities or substitute or replacement facilities in an amount sufficient to fund our mortgage lending business. During the three months ended September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $0.6 million and $0.4 million, respectively, which are included in financial services costs on our condensed consolidated statements of operations. During the nine months ended September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $2.1 million and $0.8 million, respectively.

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Financial Services

9 Months Ended

Sep. 30, 2019

Financial Services [Abstract]

Financial Services

5. Financial Services

Our Financial Services are principally comprised of our mortgage lending operations, Inspire Home Loans, Inc. (which we refer to as “Inspire”).  Inspire is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates and their related servicing rights in the secondary mortgage market within a short period of time after origination, generally within 30 days. Inspire primarily finances these loans using its mortgage repurchase facilities. Mortgage loans in process for which interest rates were committed to borrowers totaled approximately $59.2 million and $26.2 million at September 30, 2019 and December 31, 2018, respectively, and carried a weighted average interest rate of approximately 3.8%, and 4.7%, respectively.  As of September 30, 2019 and December 31, 2018, Inspire had mortgage loans held for sale with an aggregate fair value of $95.3 million and $112.4 million, respectively, and an aggregate outstanding principal balance of $92.8 million and $108.0 million, respectively. Interest rate risks related to these obligations are mitigated by the preselling of loans to investors or through our interest rate hedging program.

Mortgage loans held-for-sale, including the rights to service the mortgage loans, as well as the derivative instrument used to economically hedge our interest rate risk, which are typically forward commitments on mortgage backed securities, are carried at fair value and changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. Management believes carrying loans held-for-sale and the derivative instruments used to economically hedge them at fair value improves financial reporting by more accurately reflecting the underlying transaction. Refer to Note 12 – fair value disclosures for further information regarding our derivative instruments.

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Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Cash Flows) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by/(used in) operating activities	$ (148,964)	$ (216,997)
Net cash provided by/(used in) investing activities	(11,555)	(39,657)
Financing activities
Borrowings under revolving credit facilities	1,184,800	520,000
Payments on revolving credit facilities	(1,108,500)	(284,000)
Extinguishments of debt assumed in business combination		(94,231)
Proceeds from issuance of senior notes due 2027	500,000
Extinguishment of senior notes due 2022	(391,942)
Debt issuance costs	(6,075)	(3,521)
Proceeds from issuance of insurance premium notes and other	12,629	11,838
Principal payments on insurance notes payable and other	(19,275)	(2,173)
Net payments on mortgage repurchase facilities	(26,757)	9,008
Net proceeds from issuances of common stock	25,817	31,230
Repurchases of common stock upon vesting of stock based compensation	(3,588)	(5,483)
Repurchases of common stock under our stock repurchase program	(1,439)
Net cash provided by (used in) financing activities	165,670	182,668
Net increase (decrease)	5,151	(73,986)
Cash and cash equivalents and Restricted cash, Beginning of period	36,441	93,713
Cash and cash equivalents and Restricted cash, End of period	41,592	19,727
Cash and cash equivalents	38,508	15,927	$ 32,902
Restricted Cash	3,084	3,800
Elimination Entries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by/(used in) operating activities		(16,580)
Net cash provided by/(used in) investing activities	142,391	280,048
Financing activities
Payments from (and advances to) parent/subsidiary	(142,391)	(280,048)
Net cash provided by (used in) financing activities	(142,391)	(280,048)
Net increase (decrease)		(16,580)
Cash and cash equivalents and Restricted cash, End of period		(16,580)
Cash and cash equivalents		(16,580)
Century [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by/(used in) operating activities	(52,863)	(71,743)
Net cash provided by/(used in) investing activities	(146,499)	(153,607)
Financing activities
Borrowings under revolving credit facilities	1,184,800	520,000
Payments on revolving credit facilities	(1,108,500)	(284,000)
Extinguishments of debt assumed in business combination		(94,231)
Proceeds from issuance of senior notes due 2027	500,000
Extinguishment of senior notes due 2022	(391,942)
Debt issuance costs	(6,075)	(3,521)
Principal payments on insurance notes payable and other		(9)
Net proceeds from issuances of common stock	25,817	31,230
Repurchases of common stock upon vesting of stock based compensation	(3,588)	(5,483)
Repurchases of common stock under our stock repurchase program	(1,439)
Payments from (and advances to) parent/subsidiary		5,130
Net cash provided by (used in) financing activities	199,073	169,116
Net increase (decrease)	(289)	(56,234)
Cash and cash equivalents and Restricted cash, Beginning of period	2,183	56,234
Cash and cash equivalents and Restricted cash, End of period	1,894
Cash and cash equivalents	1,894		2,183
Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by/(used in) operating activities	(112,548)	(123,418)
Net cash provided by/(used in) investing activities	(7,610)	(165,939)
Financing activities
Proceeds from issuance of insurance premium notes and other	12,629	11,838
Principal payments on insurance notes payable and other	(19,275)	(2,164)
Payments from (and advances to) parent/subsidiary	125,834	263,120
Net cash provided by (used in) financing activities	119,188	272,794
Net increase (decrease)	(970)	(16,563)
Cash and cash equivalents and Restricted cash, Beginning of period	4,006	28,044
Cash and cash equivalents and Restricted cash, End of period	3,036	11,481
Cash and cash equivalents	2,125	8,922	2,101
Restricted Cash	911	2,559
Non Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by/(used in) operating activities	16,447	(5,256)
Net cash provided by/(used in) investing activities	163	(159)
Financing activities
Net payments on mortgage repurchase facilities	(26,757)	9,008
Payments from (and advances to) parent/subsidiary	16,557	11,798
Net cash provided by (used in) financing activities	(10,200)	20,806
Net increase (decrease)	6,410	15,391
Cash and cash equivalents and Restricted cash, Beginning of period	30,252	9,435
Cash and cash equivalents and Restricted cash, End of period	36,662	24,826
Cash and cash equivalents	34,489	23,585	$ 28,618
Restricted Cash	$ 2,173	$ 1,241

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Fair Value Disclosures (Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands		Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Mortgage loans held for sale		$ 95,321	$ 112,394
Senior Notes 6.750% [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts include unamortized deferred financing costs, premiums and discounts		5,800
Senior Notes 6.875% [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts include unamortized deferred financing costs, premiums and discounts			4,900
Senior Notes 5.875% [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Carrying amounts include unamortized deferred financing costs, premiums and discounts		4,100	4,600
Level 2 [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured notes receivable	[1]	2,632	4,947
Mortgage loans held for sale	[2]	95,321	112,394
Derivative assets	[3]	1,593	726
6.750% senior notes	[4],[5]	494,178
6.875% senior notes	[4],[5]		380,567
5.875% senior notes	[4],[5]	395,944	395,415
3.278 insurance premium notes	[6]	6,150	6,475
Other financing obligation	[6]		2,320
Mortgage repurchase facilities	[6]	77,798	104,555
Level 2 [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Secured notes receivable	[1]	2,577	4,830
Mortgage loans held for sale	[2]	95,321	112,394
Derivative assets	[3]	1,593	726
6.750% senior notes	[4],[5]	535,550
6.875% senior notes	[4],[5]		372,488
5.875% senior notes	[4],[5]	413,000	356,000
3.278 insurance premium notes	[6]	6,150	6,475
Other financing obligation	[6]		2,320
Mortgage repurchase facilities	[6]	77,798	104,555
Level 3 [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving line of credit	[6]	278,800	202,500
Level 3 [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Revolving line of credit	[6]	$ 278,800	$ 202,500

[1] Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.

[2] The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans.

[3] Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments.

[4] Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $5.8 million and $4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $4.9 million and $4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively.

[5] Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

[6] Carrying amount approximates fair value due to short-term nature and interest rate terms.

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Debt (Narrative) (Details) - USD ($)				1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 10, 2019	Mar. 23, 2019	Feb. 12, 2019	May 31, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Sep. 14, 2018	May 04, 2018
Debt Instrument [Line Items]
Deferred issuance costs					$ 896,272,000		$ 896,272,000		$ 784,777,000
Line of credit facility, outstanding amount					278,800,000		278,800,000		202,500,000
Mortgage repurchase facilities					77,798,000		77,798,000		$ 104,555,000
Loss on debt extinguishment							$ (10,832,000)
Amended And Restated Credit Agreement [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date							Apr. 30, 2022
Line of credit facility. maximum borrowing capacity			$ 640,000,000.0
Line of credit facility, outstanding amount					$ 278,800,000		$ 278,800,000
Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			3.10%
Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			2.60%
Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			2.10%
Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			1.60%
2027 Notes [Member]
Debt Instrument [Line Items]
Principal amount				$ 500,000,000.0
Net proceeds from issuance of senior debt				$ 493,900,000
Interest rate				6.75%
Maturity year				2027
Deferred issuance costs				$ 6,100,000
2022 Notes [Member]
Debt Instrument [Line Items]
Interest rate					6.875%		6.875%
Maturity year							2022
Extinguishment amount	$ 195,700,000	$ 189,300,000					$ 385,000,000.0
Loss on debt extinguishment							10,800,000
Mortgage Repurchase Facilities - Financial Services [Member] | Comerica Bank [Member] | Financial Services [Member]
Debt Instrument [Line Items]
Incurred interest expense					$ 600,000	$ 400,000	2,100,000	$ 800,000
Mortgage Repurchase Facilities - Financial Services [Member] | Inspire [Member] | Comerica Bank [Member]
Debt Instrument [Line Items]
Mortgage repurchase facilities					$ 77,800,000		$ 77,800,000
Mortgage Repurchase Facilities - Financial Services [Member] | Maximum [Member] | Inspire [Member] | Comerica Bank [Member]
Debt Instrument [Line Items]
Principal amount										$ 140,000,000	$ 140,000,000