10-Q 1 ccs-20220630x10q.htm 10-Q ccs-20220630x10q
false--12-31Q220220001576940YesYes0001576940us-gaap:WarehouseAgreementBorrowingsMember2022-06-300001576940us-gaap:WarehouseAgreementBorrowingsMember2021-12-310001576940srt:MaximumMember2022-06-3000015769402018-11-060001576940ccs:Omnibus2022IncentivePlanMember2022-01-012022-06-300001576940ccs:Omnibus2022IncentivePlanMember2021-01-012021-06-300001576940us-gaap:RetainedEarningsMember2022-06-300001576940us-gaap:AdditionalPaidInCapitalMember2022-06-300001576940us-gaap:RetainedEarningsMember2022-03-310001576940us-gaap:AdditionalPaidInCapitalMember2022-03-310001576940us-gaap:RetainedEarningsMember2021-12-310001576940us-gaap:AdditionalPaidInCapitalMember2021-12-310001576940us-gaap:RetainedEarningsMember2021-06-300001576940us-gaap:AdditionalPaidInCapitalMember2021-06-300001576940us-gaap:RetainedEarningsMember2021-03-310001576940us-gaap:AdditionalPaidInCapitalMember2021-03-310001576940us-gaap:RetainedEarningsMember2020-12-310001576940us-gaap:AdditionalPaidInCapitalMember2020-12-310001576940us-gaap:CommonStockMember2022-04-012022-06-300001576940us-gaap:CommonStockMember2021-04-012021-06-300001576940us-gaap:CommonStockMember2022-06-300001576940us-gaap:CommonStockMember2022-03-310001576940us-gaap:CommonStockMember2021-12-310001576940us-gaap:CommonStockMember2021-06-300001576940us-gaap:CommonStockMember2021-03-310001576940us-gaap:CommonStockMember2020-12-310001576940ccs:Omnibus2022IncentivePlanMember2022-06-300001576940ccs:Omnibus2022IncentivePlanMember2022-05-040001576940ccs:Omnibus2017IncentivePlanMember2022-05-040001576940ccs:StockAwardsMember2022-01-012022-06-300001576940us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001576940us-gaap:PerformanceSharesMember2021-01-012021-06-300001576940srt:MinimumMemberus-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheOneMember2022-01-012022-06-300001576940srt:MaximumMemberus-gaap:PerformanceSharesMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-01-012022-06-300001576940us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001576940us-gaap:MeasurementInputPrepaymentRateMember2022-06-300001576940us-gaap:MeasurementInputDiscountRateMember2022-06-300001576940us-gaap:MeasurementInputPrepaymentRateMember2021-12-310001576940us-gaap:MeasurementInputDiscountRateMember2021-12-310001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2022-06-300001576940ccs:MortgageServicingRightsMember2022-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2022-03-310001576940ccs:MortgageServicingRightsMember2021-12-310001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2021-06-300001576940ccs:MortgageServicingRightsMember2021-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2021-03-310001576940ccs:MortgageServicingRightsMember2020-12-310001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2022-04-012022-06-300001576940ccs:MortgageServicingRightsMember2022-01-012022-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageServicingRightsMember2021-04-012021-06-300001576940ccs:MortgageServicingRightsMember2021-01-012021-06-300001576940ccs:DistributionAgreementMember2022-01-012022-06-300001576940ccs:DistributionAgreementMember2021-01-012021-06-3000015769402022-03-3100015769402021-03-310001576940ccs:CenturyCompleteMember2022-06-300001576940ccs:CenturyCommunitiesAndCenturyCompleteMember2022-06-300001576940ccs:SeniorNotes6.750PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001576940ccs:SeniorNotes6.750PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001576940ccs:SeniorNotes3.875PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001576940ccs:SeniorNotes3.875PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001576940ccs:OtherFinancingObligationsOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001576940ccs:OtherFinancingObligationsOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001576940ccs:InsurancePremiumNotesAndCertainSecuredBorrowingsMemberccs:OtherFinancingObligationsMember2022-06-300001576940ccs:ConstructionLoanAgreementOneMemberccs:OtherFinancingObligationsMember2022-06-300001576940ccs:OtherFinancingObligationsMember2022-06-300001576940ccs:ConstructionLoanAgreementMember2022-06-300001576940ccs:ConstructionLoanAgreementMember2022-06-300001576940ccs:SeniorNotes6.750PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001576940ccs:SeniorNotes6.750PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001576940ccs:SeniorNotes3.875PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001576940ccs:SeniorNotes3.875PercentMemberus-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001576940ccs:OtherFinancingObligationsOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001576940ccs:OtherFinancingObligationsOneMemberus-gaap:FairValueInputsLevel3Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001576940ccs:SeniorNote6.750DueMay2027Member2021-12-310001576940ccs:SeniorNote3.875DueAugust2029Member2021-12-310001576940ccs:OtherFinancingObligationsMember2021-12-310001576940ccs:InsurancePremiumNotesAndCertainSecuredBorrowingsMemberccs:OtherFinancingObligationsMember2021-06-300001576940ccs:MortgageLoanHeldForSaleMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001576940ccs:MortgageLoanHeldForSaleMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001576940ccs:InspireHomeLoansIncMembersrt:MaximumMemberus-gaap:WarehouseAgreementBorrowingsMember2022-06-300001576940ccs:ConstructionLoanAgreementMember2022-03-170001576940us-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMember2021-05-210001576940srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMember2021-05-212021-05-210001576940us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001576940us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001576940us-gaap:RevolvingCreditFacilityMember2022-06-300001576940us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001576940us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001576940us-gaap:WarehouseAgreementBorrowingsMember2022-04-012022-06-300001576940us-gaap:WarehouseAgreementBorrowingsMember2022-01-012022-06-300001576940us-gaap:WarehouseAgreementBorrowingsMember2021-04-012021-06-300001576940us-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:WestMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2022-04-012022-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:WestMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2022-01-012022-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:WestMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2021-04-012021-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:WestMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2021-01-012021-06-300001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2021-01-012021-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2022-06-300001576940ccs:MortgageLoansHeldForInvestmentMember2022-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2022-03-310001576940ccs:MortgageLoansHeldForInvestmentMember2021-12-310001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2021-06-300001576940ccs:MortgageLoansHeldForInvestmentMember2021-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2021-03-310001576940ccs:MortgageLoansHeldForInvestmentMember2020-12-310001576940ccs:RsuAndPsuMember2022-06-300001576940ccs:RsuAndPsuMember2022-01-012022-06-300001576940ccs:QuarterlyDividendQ2Member2022-06-300001576940ccs:QuarterlyDividendQ1Member2022-06-300001576940ccs:AccruedExpensesAndOtherLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001576940srt:WeightedAverageMember2022-06-300001576940srt:WeightedAverageMember2021-12-310001576940us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001576940us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001576940ccs:InspireHomeLoansIncMemberus-gaap:WarehouseAgreementBorrowingsMember2022-06-300001576940ccs:ConstructionLoanAgreementMember2022-03-172022-03-170001576940srt:MinimumMemberccs:InsurancePremiumNoteMember2022-06-300001576940srt:MaximumMemberccs:InsurancePremiumNoteMember2022-06-300001576940ccs:SeniorNote6.750DueMay2027Member2022-06-300001576940ccs:SeniorNote3.875DueAugust2029Member2022-06-300001576940srt:MinimumMemberccs:InsurancePremiumNoteMember2021-06-300001576940srt:MaximumMemberccs:InsurancePremiumNoteMember2021-06-300001576940srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMemberccs:TexasCapitalBankMemberus-gaap:BaseRateMember2022-01-012022-06-300001576940srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMemberccs:TexasCapitalBankMemberus-gaap:EurodollarMember2022-01-012022-06-300001576940srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMemberccs:TexasCapitalBankMemberus-gaap:BaseRateMember2022-01-012022-06-300001576940srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMemberus-gaap:EurodollarMember2022-01-012022-06-300001576940us-gaap:HomeBuildingMember2022-04-012022-06-300001576940ccs:LandSalesAndOtherMember2022-04-012022-06-300001576940ccs:HomeSalesMember2022-04-012022-06-300001576940ccs:FinancialServicesMember2022-04-012022-06-300001576940us-gaap:HomeBuildingMember2022-01-012022-06-300001576940ccs:LandSalesAndOtherMember2022-01-012022-06-300001576940ccs:HomeSalesMember2022-01-012022-06-300001576940ccs:FinancialServicesMember2022-01-012022-06-300001576940us-gaap:HomeBuildingMember2021-04-012021-06-300001576940ccs:LandSalesAndOtherMember2021-04-012021-06-300001576940ccs:HomeSalesMember2021-04-012021-06-300001576940ccs:FinancialServicesMember2021-04-012021-06-300001576940us-gaap:HomeBuildingMember2021-01-012021-06-300001576940ccs:LandSalesAndOtherMember2021-01-012021-06-300001576940ccs:HomeSalesMember2021-01-012021-06-300001576940ccs:FinancialServicesMember2021-01-012021-06-300001576940ccs:QuarterlyDividendQ2Member2022-01-012022-06-300001576940ccs:QuarterlyDividendQ1Member2022-01-012022-06-3000015769402020-12-310001576940us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-06-300001576940us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001576940us-gaap:FairValueInputsLevel1Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001576940us-gaap:FairValueInputsLevel1Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-3100015769402021-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:WestMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2022-06-300001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2022-06-300001576940us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:WestMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:TexasMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:SoutheastMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:MountainMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:FinancialServicesMember2021-12-310001576940us-gaap:OperatingSegmentsMemberccs:CenturyCompleteMember2021-12-310001576940us-gaap:CommonStockMember2022-01-012022-06-300001576940us-gaap:CommonStockMember2021-01-012021-06-300001576940us-gaap:RetainedEarningsMember2022-04-012022-06-300001576940us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001576940us-gaap:RetainedEarningsMember2022-01-012022-06-300001576940us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001576940us-gaap:RetainedEarningsMember2021-04-012021-06-300001576940us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001576940us-gaap:RetainedEarningsMember2021-01-012021-06-300001576940us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-3000015769402022-07-220001576940us-gaap:PerformanceSharesMember2022-01-012022-06-300001576940ccs:CenturyCompleteMember2022-01-012022-06-300001576940ccs:CenturyCommunitiesAndCenturyCompleteMember2022-01-012022-06-300001576940us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001576940us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-3100015769402021-01-012021-12-310001576940us-gaap:RevolvingCreditFacilityMemberccs:SecondAmendedAndRestatedCreditAgreementMember2021-05-212021-05-2100015769402022-04-012022-06-3000015769402021-04-012021-06-3000015769402021-01-012021-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2022-04-012022-06-300001576940ccs:MortgageLoansHeldForInvestmentMember2022-01-012022-06-300001576940us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberccs:MortgageLoansHeldForInvestmentMember2021-04-012021-06-300001576940ccs:MortgageLoansHeldForInvestmentMember2021-01-012021-06-300001576940srt:ScenarioForecastMember2022-01-012022-12-3100015769402022-01-012022-06-300001576940ccs:SeniorNotes6.750PercentMember2022-06-300001576940ccs:SeniorNotes3.875PercentMember2022-06-300001576940ccs:SeniorNotes6.750PercentMember2021-12-310001576940ccs:SeniorNotes5.875PercentMember2021-12-3100015769402022-06-3000015769402021-12-310001576940ccs:DistributionAgreementMember2022-06-300001576940ccs:DistributionAgreementMember2019-11-272019-11-27ccs:stateccs:segmentiso4217:USDxbrli:sharesccs:regionccs:itemiso4217:USDccs:itemxbrli:sharesxbrli:pureiso4217:USD

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, 2022

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): (303770-8300

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.

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 July 22, 2022, 32,273,160 shares of common stock, par value $0.01 per share, of the registrant were outstanding.  

CENTURY COMMUNITIES, INC.

FORM 10-Q

For the Three and Six Months Ended June 30, 2022

Index

Page No.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, 2021 (audited)

3

Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021

4

Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021

5

Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended June 30, 2022 and 2021

6

Notes to the Unaudited Condensed Consolidated Financial Statements

7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

17

Item 3. Quantitative and Qualitative Disclosures About Market Risk

38

Item 4. Controls and Procedures

38

PART II – OTHER INFORMATION

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

PART I – FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS.

Century Communities, Inc.

Condensed Consolidated Balance Sheets

As of June 30, 2022 and December 31, 2021

(in thousands, except share and per share amounts)

 

June 30,

December 31,

2022

2021

Assets

(unaudited)

(audited)

Cash and cash equivalents

$

78,011

$

316,310

Cash held in escrow

82,494

52,297

Accounts receivable

58,755

41,932

Inventories

3,002,338

2,456,614

Mortgage loans held for sale

216,367

353,063

Prepaid expenses and other assets

257,715

200,087

Property and equipment, net

27,304

24,939

Deferred tax assets, net

19,356

21,239

Goodwill

30,395

30,395

Total assets

$

3,772,735

$

3,496,876

Liabilities and stockholders' equity

Liabilities:

Accounts payable

$

117,390

$

84,679

Accrued expenses and other liabilities

344,549

316,877

Notes payable

1,009,631

998,936

Revolving line of credit

141,000

Mortgage repurchase facilities

209,001

331,876

Total liabilities

1,821,571

1,732,368

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, 32,273,160 and 33,760,940 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

323

338

Additional paid-in capital

596,727

697,845

Retained earnings

1,354,114

1,066,325

Total stockholders' equity

1,951,164

1,764,508

Total liabilities and stockholders' equity

$

3,772,735

$

3,496,876

See Notes to Unaudited Condensed Consolidated Financial Statements

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Operations

For the Three and Six Months Ended June 30, 2022 and 2021

(in thousands, except share and per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

2022

2021

Revenues

Homebuilding revenues

Home sales revenues

$

1,134,535

$

1,004,789

$

2,122,950

$

1,964,068

Land sales and other revenues

8,810

8,258

10,440

23,928

Total homebuilding revenues

1,143,345

1,013,047

2,133,390

1,987,996

Financial services revenues

22,797

29,865

49,102

63,485

Total revenues

1,166,142

1,042,912

2,182,492

2,051,481

Homebuilding cost of revenues

Cost of home sales revenues

(814,895)

(764,668)

(1,523,968)

(1,521,175)

Cost of land sales and other revenues

(8,012)

(7,000)

(8,858)

(17,020)

Total homebuilding cost of revenues

(822,907)

(771,668)

(1,532,826)

(1,538,195)

Financial services costs

(14,186)

(18,168)

(29,340)

(36,469)

Selling, general and administrative

(109,158)

(99,656)

(210,797)

(191,807)

Inventory impairment and other

(41)

(41)

Other income (expense)

(6,243)

(1,245)

(7,105)

(1,786)

Income before income tax expense

213,648

152,134

402,424

283,183

Income tax expense

(54,980)

(34,224)

(101,260)

(63,621)

Net income

$

158,668

$

117,910

$

301,164

$

219,562

Earnings per share:

Basic

$

4.83

$

3.49

$

9.08

$

6.52

Diluted

$

4.78

$

3.47

$

8.97

$

6.47

Weighted average common shares outstanding:

Basic

32,839,402

33,738,586

33,183,097

33,651,727

Diluted

33,227,383

33,956,638

33,582,900

33,920,939

See Notes to Unaudited Condensed Consolidated Financial Statements

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2022 and 2021

(in thousands)

Six Months Ended June 30,

2022

2021

Operating activities

Net income

$

301,164

$

219,562

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Depreciation and amortization

5,352

5,655

Stock-based compensation expense

9,791

7,212

Fair value of mortgage loans held for sale and other

5,322

3,359

Inventory impairment and other

41

Deferred income taxes

1,883

(5,942)

Loss on disposition of assets

1,067

804

Changes in assets and liabilities:

Cash held in escrow

(30,197)

(14,491)

Accounts receivable

(15,624)

(8,505)

Inventories

(493,618)

(56,779)

Mortgage loans held for sale

128,114

42,659

Prepaid expenses and other assets

(23,572)

(25,694)

Accounts payable

32,466

(27,103)

Accrued expenses and other liabilities

(25,035)

2,643

Net cash (used in) provided by operating activities

(102,887)

143,421

Investing activities

Purchases of property and equipment

(8,785)

(4,405)

Expenditures related to development of rental properties

(13,618)

Other investing activities

(2,879)

54

Net cash used in investing activities

(25,282)

(4,351)

Financing activities

Borrowings under revolving credit facilities

571,000

Payments on revolving credit facilities

(430,000)

Proceeds from issuance of insurance premium notes and other

18,031

9,477

Principal payments on insurance premium notes and other

(9,043)

(3,854)

Net payments for mortgage repurchase facilities

(122,875)

(99,274)

Withholding of common stock upon vesting of stock-based compensation awards

(12,735)

(13,726)

Repurchases of common stock under stock repurchase program

(98,305)

Dividend payments

(13,225)

(5,065)

Other financing activities

879

(34)

Net cash used in financing activities

(96,273)

(112,476)

Net (decrease) increase

$

(224,442)

$

26,594

Cash and cash equivalents and Restricted cash

Beginning of period

322,241

398,081

End of period

$

97,799

$

424,675

Supplemental cash flow disclosure

Cash paid for income taxes

$

117,476

$

78,909

Cash and cash equivalents and Restricted cash

Cash and cash equivalents

$

78,011

$

419,416

Restricted cash (Note 5)

19,788

5,259

Cash and cash equivalents and Restricted cash

$

97,799

$

424,675

See Notes to Unaudited Condensed Consolidated Financial Statements

Century Communities, Inc.

Unaudited Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Six Months Ended June 30, 2022 and 2021

(in thousands)

For the Three Months Ended June 30, 2022 and 2021

Common Stock

Shares

Amount

Additional Paid-In Capital

Retained Earnings

Total Stockholders' Equity

Balance at March 31, 2022

33,038

$

330

$

627,447

$

1,202,085

$

1,829,862

Vesting of stock-based compensation awards

36

Withholding of common stock upon vesting of stock-based compensation awards

(10)

(598)

(598)

Repurchases of common stock

(791)

(7)

(35,920)

(35,927)

Stock-based compensation expense

5,727

5,727

Cash dividends declared and dividend equivalents

71

(6,639)

(6,568)

Net income

158,668

158,668

Balance at June 30, 2022

32,273

$

323

$

596,727

$

1,354,114

$

1,951,164

Balance at March 31, 2021

33,708

$

337

$

688,009

$

684,823

$

1,373,169

Vesting of stock-based compensation awards

74

1

(1)

Withholding of common stock upon vesting of stock-based compensation awards

(21)

(1,549)

(1,549)

Stock-based compensation expense

4,193

4,193

Cash dividends declared and dividend equivalents

55

(5,120)

(5,065)

Net income

117,910

117,910

Balance at June 30, 2021

33,761

$