Century Communities' Q4 net income up 80% year-over-year to US$165.0M, home sales revenues rise 22% to US$1.2B, net new home contracts up 5% to 2,700 contracts; 2021 net income up 142% to US$498.5M, revenues up 33% to US$4.2B, contracts up 11% to 12,017

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GREENWOOD VILLAGE, Colorado , February 3, 2022 (press release) –

  • Return on Equity of 33%, a Company Record -
  • Fourth Quarter Net Income of $165 Million or $4.78 per Diluted Share -
  • Net Income for the Year Increased 142% to $498.5 Million or $14.47 per Diluted Share -
  • Home Deliveries for the Year Increased 14% to a Record 10,805 Homes -
  • Net New Home Contracts for the Year Increased 11% to a Record 12,017 Contracts -
  • Total Revenues for the Year Increased 33% to a Record $4.2 Billion -
  • 19th Consecutive Year of Profitability and Most Profitable Year Ever -

 

Century Communities, Inc. (NYSE: CCS), a leading national homebuilder, today announced financial results for its fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights Compared to Fourth Quarter 2020

  • Net income increased 80% to a Company record $165.0 million or $4.78 per diluted share
  • Deliveries grew to a Company record 2,915 homes from 2,826 homes
  • Net new home contracts increased to a fourth quarter record of 2,700 contracts
  • Home sales revenues increased 22% to a Company record $1.2 billion
  • Homebuilding gross margin increased to 25.9% from 20.8%, a 510 basis point increase
  • SG&A as a percent of home sales revenues was 9.3%, an 80 basis point improvement from 10.1%
  • Pre-tax income improved 75% to a Company record $212.2 million
  • Homes in backlog improved 35% to a fourth quarter record 4,651 homes valued at $1.9 billion
  • Total lots owned and controlled increased to 79,859 lots, a Company record
  • Selling communities increased to 202 from 198 communities

Full Year 2021 Highlights Compared to Full Year 2020

  • Net Income increased 142% to a Company record $498.5 Million or $14.47 per diluted share
  • Deliveries grew to a Company record 10,805 homes, a 14% increase
  • Net new home contracts increased 11% to a record of 12,017 contracts
  • Total revenues increased 33% to a Company record $4.2 billion
  • Homebuilding gross margin increased to 24.2% from 18.4%, a 580 basis point increase
  • SG&A as a percent of home sales revenues was 9.7%, a 160 basis point improvement from 11.3%
  • Pre-tax income improved 137% to a Company record $641.1 million
  • Net homebuilding debt to net capital improved to 26.3% from 27.2%
  • Total liquidity of $1.2 billion
  • Total stockholders’ equity increased 38% to $1.8 billion

Dale Francescon, Chairman and Co-Chief Executive Officer, stated, “We want to thank our talented and dedicated team that overcame significant obstacles to generate exceptional year end performance that propelled us to another year of record results, including total revenues of $4.2 billion, 10,805 home deliveries, and $498.5 million in net income or $14.47 per diluted share, culminating in return on equity of 33%, our 11th quarter of sequential improvement. During the fourth quarter, we delivered 2,915 homes, the most homes we have ever closed in a quarter, driven by double digit growth in the Texas and West regions as well as our Century Complete brand. We also achieved gross margin expansion of 510 basis points to 25.9%, another Company record, while SG&A as a percentage of homes sales revenues improved to 9.3%, the lowest in our history, resulting in a 17.6% pre-tax margin, the eighth sequential quarter of improvement. We continue to experience strong consumer demand for affordable, new homes across our entire 17-state footprint and are very well-positioned to capitalize on additional growth opportunities as we further penetrate and increase our share positions within and beyond our 40+ vibrant markets.”

Rob Francescon, Co-Chief Executive Officer and President, said, “The numerous, strategic investments we have made in our business continue to generate robust returns, enhancing the compelling value proposition of our brands, strengthening our competitive positioning and driving ongoing momentum as we execute against our key initiatives. We increased our total lot count to nearly 80,000 lots, approximately 60% of which are controlled, demonstrating not only our robust land pipeline but also our ongoing commitment to a land-light acquisition strategy. We ended the fourth quarter with a record backlog of 4,651 homes valued at over $1.9 billion. We are extremely proud of our fourth quarter and full year accomplishments and, looking ahead to 2022, our 20th year anniversary, we remain confident that the underlying strength of our business will provide a substantial runway for growth, further performance improvement and continued shareholder value creation.”

Fourth Quarter 2021 Results

Net income for the fourth quarter 2021 increased 80% to $165.0 million, or $4.78 per diluted share, as compared to $91.8 million or $2.72 per diluted share, in the prior year quarter.

Home sales revenues for the fourth quarter 2021 increased 22% to $1.2 billion, compared to $946.8 million for the prior year quarter. Deliveries increased to 2,915 homes compared to 2,826 in the prior year quarter. Average sales price of home deliveries for the fourth quarter 2021 increased to $395,000, compared to $335,000 in the prior year quarter, primarily due to sustained demand and home price appreciation across our markets. Across all our markets in the fourth quarter, we were successful in raising prices as we did throughout the year.

Net new home contracts in the fourth quarter 2021 increased 5% to 2,700 contracts, compared to 2,566 contracts in the prior year quarter. At the end of the fourth quarter 2021, the Company had 4,651 homes in backlog, representing $1.9 billion of backlog dollar value, increases of 35% and 45%, respectively.

Adjusted homebuilding gross margin percentage, excluding interest, was 27.3% in the fourth quarter of 2021, compared to 23.0% in the prior year quarter, and the sixth quarter in a row of sequential gross margin expansion. Homebuilding gross margin percentage in the fourth quarter 2021 was 25.9%, as compared to 20.8% in the prior year quarter, an improvement of 510 basis points. SG&A as a percent of home sales revenues improved 80 basis points to 9.3%, compared to 10.1% in the prior year quarter. Pre-tax margin was 17.6% in the fourth quarter of 2021 compared to 12.3% in the prior year quarter.

Selling communities at the end of the fourth quarter increased to 202 from 198 communities in the prior year quarter and increased sequentially from 186 selling communities at the end of the third quarter.

Return on equity for the four quarters of 2021 was 33% compared to 18% in the prior year and the 11th consecutive quarter of sequential quarterly improvement for this metric.

Financial services revenues were $31.2 million compared to $35.8 million in the prior year quarter, and financial services pre-tax income was $12.7 million from $17.8 million, primarily as a result of normalization of gains on sale premiums.

Full Year 2021 Results

Net income for the full year 2021 was $498.5 million, or $14.47 per diluted share, compared to $206.2 million, or $6.13 per diluted share, in the prior year.

Home sales revenues for 2021 increased 33% to $4.0 billion, compared to $3.0 billion for 2020. The increase in home sales revenues was primarily due to home deliveries increasing 14% to 10,805 homes as well as an increase in the average selling price of homes to $373,300, compared to $320,200 in the prior year.

Net new home contracts in 2021 increased to 12,017 contracts, an increase of 11%, compared to 10,822 contracts in the prior year, primarily attributable to an increased absorption pace.

Adjusted homebuilding gross margin percentage, excluding inventory impairments and other and interest, was 25.9% in 2021 compared to 20.8% in the prior year. Homebuilding gross margin percentage was 24.2%, compared to 18.4% in 2020, an improvement of 580 basis points. SG&A as a percent of home sales revenues improved 160 basis points to 9.7% compared to 11.3% the prior year.

Financial services revenues were $123.7 million compared to $103.3 million in the prior year, and financial services pretax income increased to $51.2 million from $48.5 million.

Strengthened Balance Sheet and Liquidity

The Company ended the quarter with a strong financial position including $1.8 billion of stockholders’ equity, $1.2 billion of total liquidity and $369 million of cash.

As of December 31, 2021, net homebuilding debt to net capital decreased to 26.3%, a reduction of 90 basis points from 27.2% in the prior year quarter.

Full Year 2022 Outlook

David Messenger, Chief Financial Officer of the Company, commented, “We remain encouraged by the strength of our business and health of the housing market and are confident our strong momentum will continue into the new year. We introduce our full year outlook for home deliveries to be in the range of 11,500 to 12,500 homes, home sales revenues to be in the range of $4.3 billion to $4.9 billion and between 240 and 250 selling communities at year end.”

Conference Call

The Company will host a webcast and conference call on Wednesday, February 2, 2022 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s fourth quarter and full year 2021 results, discuss recent events and conduct a question-and-answer period. To participate in the call, please dial 877-451-6152 (domestic) or 201-389-0879 (international). The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through March 2, 2022, by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the pass code 13726013. A replay of the webcast will be available on the Company’s website.

About Century Communities:

Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder, offering new homes under the Century Communities and Century Complete brands. Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Colorado-based company operates in 17 states and over 40 markets across the U.S., and also offers title, insurance and lending services in select markets through its Parkway Title, IHL Home Insurance Agency, and Inspire Home Loans subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.

Non-GAAP Financial Measures

In addition to the Company’s operating results presented in accordance with generally accepted accounting principles (GAAP), this press release includes the following non-GAAP financial measures: Adjusted Net Income, Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS), Adjusted Homebuilding Gross Margin, Adjusted EBITDA, and Ratio of Homebuilding Net Debt to Net Capital. These non-GAAP financial measures should not be used as a substitute for the Company’s operating results presented in accordance with GAAP, and an analysis of any non-GAAP financial measure should be used in conjunction with results presented in accordance with GAAP. Please refer to the reconciliation of each of the above referenced non-GAAP financial measures following the historical financial information presented in this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “continue,” “will,” “may,” “potential,” “looking ahead,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements in this release include the Company’s operating and financial guidance for 2022 and management’s belief that the strength of the Company’s business will provide a substantial runway for growth, further performance improvement and continued shareholder value creation. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. The following important factors could cause actual results to differ materially from those expressed in the forward-looking statement: adverse changes in general economic conditions, the potential impact of COVID-19 on the Company’s business, industry and broader economy, the ability to identify and acquire desirable land, availability of financing, the effect of interest rate and tax changes, reliance on contractors and key personnel, availability and pricing for raw materials, and the other factors included in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220202005780/en/

Hunter Wells, Vice President of Investor Relations
719-426-3520
Hunter.Wells@CenturyCommunities.com

Source: Century Communities, Inc.

Industry Intelligence Editor's Note: This press release omits select charts and/or marketing language for editorial clarity. Click here to view the full report.

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