Century Communities, Inc. [CCS] Filings

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10-Q 1 ccs-20240630x10q.htm 10-Q ccs-20240630x10q

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 June 30, 2024


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	New York Stock Exchange

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.

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 July 19, 2024, 31,336,340 shares of common stock, par value $0.01 per share, of the registrant were outstanding.

Table of Contents

CENTURY COMMUNITIES, INC.

FORM 10-Q

For the Three and Six Months Ended June 30, 2024

Index


	Page No.
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 (audited)	3
Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023	4
Unaudited Condensed Consolidated Statements of Cash Flows for Six Months Ended June 30, 2024 and 2023	5
Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2024 and 2023	6
Notes to the Unaudited Condensed Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3. Quantitative and Qualitative Disclosures About Market Risk	40
Item 4. Controls and Procedures	40
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	40
Item 1A. Risk Factors	40
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3. Defaults Upon Senior Securities	41
Item 4. Mine Safety Disclosures	41
Item 5. Other Information	41
Item 6. Exhibits	42
Signatures	43

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

Century Communities, Inc.

Condensed Consolidated Balance Sheets

As of June 30, 2024 and December 31, 2023

(in thousands, except share and per share amounts)



	June 30,		December 31,
	2024		2023
Assets	(unaudited)		(audited)
Cash and cash equivalents	$	106,682	$	226,150
Cash held in escrow		44,823		101,845
Accounts receivable		78,260		76,213
Inventories		3,295,336		3,016,641
Mortgage loans held for sale		255,305		251,852
Prepaid expenses and other assets		404,315		350,193
Property and equipment, net		97,215		69,075
Deferred tax assets, net		17,426		16,998
Goodwill		32,082		30,395
Total assets	$	4,331,444	$	4,139,362
Liabilities and stockholders' equity
Liabilities:
Accounts payable	$	158,778	$	147,265
Accrued expenses and other liabilities		271,849		303,392
Notes payable		1,075,344		1,062,471
Revolving line of credit		111,000		—
Mortgage repurchase facilities		248,816		239,298
Total liabilities		1,865,787		1,752,426
Stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding		—		—
Common stock, $0.01 par value, 100,000,000 shares authorized, 31,336,340 and 31,774,615 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		313		318
Additional paid-in capital		540,573		592,989
Retained earnings		1,924,771		1,793,629
Total stockholders' equity		2,465,657		2,386,936
Total liabilities and stockholders' equity	$	4,331,444	$	4,139,362

See Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2024 and 2023

(in thousands, except share and per share amounts)



	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenues
Homebuilding revenues
Home sales revenues	$	1,017,414	$	818,360	$	1,939,816	$	1,553,960
Land sales and other revenues		377		1,554		1,593		3,089
Total homebuilding revenues		1,017,791		819,914		1,941,409		1,557,049
Financial services revenues		21,659		24,277		46,585		40,132
Total revenues		1,039,450		844,191		1,987,994		1,597,181
Homebuilding cost of revenues
Cost of home sales revenues		(787,556)		(656,834)		(1,513,127)		(1,258,219)
Cost of land sales and other revenues		—		(375)		(37)		(375)
Total homebuilding cost of revenues		(787,556)		(657,209)		(1,513,164)		(1,258,594)
Financial services costs		(15,996)		(11,770)		(30,873)		(22,551)
Selling, general and administrative		(125,973)		(105,120)		(240,082)		(203,433)
Inventory impairment		(570)		—		(570)		—
Other income (expense)		1,278		(1,344)		(8,353)		154
Income before income tax expense		110,633		68,748		194,952		112,757
Income tax expense		(26,909)		(17,303)		(46,897)		(28,001)
Net income	$	83,724	$	51,445	$	148,055	$	84,756

Earnings per share:
Basic	$	2.65	$	1.61	$	4.67	$	2.65
Diluted	$	2.61	$	1.60	$	4.60	$	2.63
Weighted average common shares outstanding:
Basic		31,648,130		32,025,186		31,728,544		31,970,106
Diluted		32,092,789		32,247,396		32,165,798		32,182,545

See Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2024 and 2023

(in thousands)


	Six Months Ended June 30,
	2024		2023
Operating activities
Net income	$	148,055	$	84,756
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization		11,165		6,913
Stock-based compensation expense		10,710		14,291
Fair value of mortgage loans held for sale and other		(4,578)		(2,309)
Inventory impairment		570		—
Impairment on other investment		7,722		—
Purchase price accounting for acquired work in process inventory		2,553		—
Abandonment of lot option contracts		1,818		1,670
Deferred income taxes		(428)		426
(Gain) loss on disposition of assets		(2,187)		825
Changes in assets and liabilities:
Cash held in escrow		57,022		33,324
Accounts receivable		(1,442)		(7,196)
Inventories		(249,329)		(24,354)
Mortgage loans held for sale		(7,631)		6,400
Prepaid expenses and other assets		(32,058)		11,564
Accounts payable		11,402		39,632
Accrued expenses and other liabilities		(31,824)		(33,167)
Net cash (used in) provided by operating activities		(78,460)		132,775
Investing activities
Purchases of property and equipment		(23,492)		(8,843)
Proceeds from sale of property and equipment		11,014		130
Expenditures related to development of rental properties		(42,431)		(39,501)
Business combination and other investing activities		(32,716)		(391)
Net cash used in investing activities		(87,625)		(48,605)
Financing activities
Borrowings under revolving credit facilities		656,000		—
Payments on revolving credit facilities		(545,000)		—
Borrowing under construction loan agreements		27,965		13,757
Proceeds from issuance of insurance premium notes and other		11,166		3,032
Principal payments on insurance premium notes and other		(27,053)		(6,213)
Net proceeds (payments) for mortgage repurchase facilities		9,518		(6,602)
Withholding of common stock upon vesting of stock-based compensation awards		(10,424)		(10,643)
Repurchases of common stock under stock repurchase program		(53,139)		(1,969)
Dividend payments		(16,481)		(14,733)
Net cash provided by (used in) financing activities		52,552		(23,371)
Net (decrease) increase	$	(113,533)	$	60,799
Cash and cash equivalents and Restricted cash
Beginning of period		242,003		308,492
End of period	$	128,470	$	369,291
Supplemental cash flow disclosure
Cash paid for income taxes	$	55,611	$	19,295
Cash and cash equivalents and Restricted cash
Cash and cash equivalents	$	106,682	$	350,488
Restricted cash (Note 5)		21,788		18,803
Cash and cash equivalents and Restricted cash	$	128,470	$	369,291

See Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2024 and 2023

(in thousands)

For the Three Months Ended June 30, 2024 and 2023


	Common Stock
	Shares	Amount		Additional Paid-In Capital		Retained Earnings		Total Stockholders' Equity
Balance at March 31, 2024	31,791	$	318	$	569,581	$	1,849,377	$	2,419,276
Vesting of stock-based compensation awards	11		—		—		—		—
Withholding of common stock upon vesting of stock-based compensation awards	(1)		—		(10)		—		(10)
Repurchases of common stock	(465)		(5)		(37,025)		—		(37,030)
Stock-based compensation expense			—		7,914		—		7,914
Cash dividends declared and dividend equivalents	—		—		113		(8,330)		(8,217)
Net income	—		—		—		83,724		83,724
Balance at June 30, 2024	31,336	$	313	$	540,573	$	1,924,771	$	2,465,657


Balance at March 31, 2023	32,026	$	320	$	580,489	$	1,590,832	$	2,171,641
Vesting of stock-based compensation awards	35		—		—		—		—
Withholding of common stock upon vesting of stock-based compensation awards	(11)		—		(763)		—		(763)
Repurchases of common stock	(30)		—		(1,969)				(1,969)
Stock-based compensation expense	—		—		8,931		—		8,931
Cash dividends declared and dividend equivalents	—		—		168

Century Communities, Inc. [CCS] Filings
10-Q	[2024-07-25]
10-Q	[2024-04-25]
10-K	[2024-02-05]
10-Q	[2023-10-26]
10-Q	[2023-07-27]
10-Q	[2023-04-27]
10-K	[2023-02-02]
10-Q	[2022-10-27]
10-Q	[2022-07-28]
10-Q	[2022-04-28]
10-K	[2022-02-03]
10-Q	[2021-10-28]
10-Q	[2021-07-29]
10-Q	[2021-04-29]
10-K	[2021-02-05]
10-Q	[2020-10-29]
10-Q	[2020-07-29]
10-Q	[2020-04-30]
10-K	[2020-02-07]
10-Q	[2019-10-30]
10-Q	[2019-07-31]
10-Q	[2019-05-03]
10-K	[2019-02-13]
10-Q	[2018-11-07]
10-Q	[2018-08-03]
10-Q	[2018-05-09]
10-K	[2018-03-01]
10-Q	[2017-11-03]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-02-15]
10-Q	[2016-11-02]
10-Q	[2016-08-03]
10-Q	[2016-05-06]
10-K	[2016-02-19]
10-Q	[2015-11-06]
10-Q	[2015-08-07]
10-Q	[2015-05-08]
10-K	[2015-03-06]
10-Q	[2014-11-14]
10-Q	[2014-08-13]
S-1	[2014-05-05]