Century munities(CCS) - 2025 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2025, total revenues were $903.2 million, a decrease of 4.8$948.5 million in the prior year period[100]. - Income before income tax expense for the three months ended March 31, 2025, was $52.5 million, down from$84.3 million in the prior year period, while net income was $39.4 million, or$1.26 per diluted share, compared to $64.3 million, or$2.00 per diluted share[99]. - Net income for the three months ended March 31, 2025, was $39,384,000, down$24,948,000 or 38.8% from $64,332,000 in 2024[1]. - Adjusted EBITDA for the three months ended March 31, 2025, was$76,337,000, a decrease of $33,279,000 or 30.4$109,616,000 in 2024[1]. - EBITDA for the three months ended March 31, 2025, was $72.5 million, a decrease of 27.7$100.3 million in the same period of 2024[172]. - Adjusted net income for the three months ended March 31, 2025, was $42.2 million, down from$71.4 million in the prior year[176]. - Adjusted diluted earnings per share decreased to $1.36 for the three months ended March 31, 2025, compared to$2.22 in 2024[176]. Home Deliveries and Sales - The company delivered 2,284 homes with an average sales price of $386.9 thousand, compared to 2,358 homes at an average sales price of$391.2 thousand in the prior year, reflecting a 3.1% decrease in deliveries and a 1.1% decrease in average sales price[100]. - Net new home contracts decreased by 6.1% to 2,692 for the three months ended March 31, 2025, compared to the prior year period[100]. - The number of homes delivered decreased by 74 units, or 3.1%, from 2,358 in 2024 to 2,284 in 2025[1]. - Backlog at the end of the period decreased by 332 homes, or 20.9%, from 1,590 in 2024 to 1,258 in 2025[1]. - Average monthly absorption rate decreased by 24.3% to 2.8 in Q1 2025 from 3.7 in Q1 2024[129]. Financial Services - The Financial Services segment generated income before income tax expense of $2.4 million, a 76.5$6,391,000 or 25.6%, from $24,925,000 in 2024 to$18,534,000 in 2025[1]. - Total loan originations decreased by 2.6% to 1,467 loans in Q1 2025, with principal amounting to $512.6 million, down from$540.2 million in Q1 2024[115]. Cash and Debt Management - The company ended the first quarter of 2025 with $100.3 million in cash and cash equivalents and$24.2 million in cash held in escrow, with a homebuilding debt to capital ratio of 32.4%[101]. - The total outstanding debt as of March 31, 2025, was $1.557 billion, an increase from$1.476 billion as of December 31, 2024[153]. - The company had $237.0 million outstanding under its revolving line of credit as of March 31, 2025, up from$135.5 million as of December 31, 2024[144]. - The company had $204.3 million outstanding under mortgage repurchase facilities as of March 31, 2025, with a weighted average interest rate of 6.0$118.1 million outstanding under construction loan agreements, with a weighted average interest rate of 6.6%[159]. - The ratio of net homebuilding debt to net capital increased to 30.1% as of March 31, 2025, compared to 27.4% as of December 31, 2024[174]. Market Conditions - Market conditions have been impacted by elevated mortgage rates and macro-economic uncertainties, leading to a slowdown in demand for homes[94]. - The company continues to focus on affordable housing options, with approximately 94% of homes delivered priced below Federal Housing Administration-insured mortgage limits[93]. Shareholder Returns - Quarterly cash dividends paid to stockholders increased by 12% to $0.29 per share from$0.26 per share in the prior year[101]. - Cash dividends declared for the three months ended March 31, 2025, were $0.29 per share, totaling$8.9 million, compared to $0.26 per share totaling$8.3 million for the same period in 2024[168]. - The company repurchased 753.3 thousand shares for approximately $55.6 million during the three months ended March 31, 2025, at a weighted average price of$73.76 per share[166]. Operational Metrics - Selling, general and administrative expenses increased by $6.7 million, or 5.8$120.8 million in Q1 2025 compared to Q1 2024[123]. - Selling communities increased by 65 to 318 as of March 31, 2025, representing a 25.7% increase from 253 in the prior year[130]. - The total owned and controlled lot inventory increased by 3,925 lots, or 5.2%, from 75,089 in 2024 to 79,014 in 2025[1]. - The company maintained a lot pipeline of 79,014 lots owned and controlled as of March 31, 2025[101].