Century munities(CCS) - 2024 Q4 - Annual Results

Financial and Operational Highlights Q4 2024 Highlights Record Q4 2024 deliveries and $1.3 billion revenues drove net income to $102.7 million (+13%) and adjusted net income to $112.0 million (+18%) | Metric | Q4 2024 | YoY Change | | :--- | :--- | :--- | | Net Income | $102.7 million | +13% | | Adjusted Net Income | $112.0 million | +18% | | Diluted EPS | $3.20 | +13% | | Adjusted Diluted EPS | $3.49 | +19% | | Total Revenues | $1.3 billion (Record) | +5.6% | | Home Deliveries | 3,198 homes (Record) | +1.3% | - The company achieved a record community count of 322[3] Full Year 2024 Highlights Full year 2024 achieved record 11,007 home deliveries (+15%) and 21% growth in net new contracts, with book value per share rising 13% to a record $84.65 | Metric | Full Year 2024 | YoY Change | | :--- | :--- | :--- | | Home Deliveries | 11,007 homes (Record) | +15% | | Net New Home Contracts | 10,676 | +21% | | Book Value per Share | $84.65 (Record) | +13% | | Community Count | 322 (Record) | +28% | | Net Income | $333.8 million | +28.8% | | Adjusted Net Income | $355.1 million | +36.3% | - The company completed the strategic acquisitions of Landmark Homes of Tennessee and Anglia Homes during the year[3] Executive Commentary Executives highlighted record-setting deliveries and a 21% increase in net new home contracts for 2024, attributing improved margins to direct cost controls and better fixed cost leverage, while noting a strong balance sheet with $2.6 billion in equity and $918 million in liquidity, supporting growth and share repurchases - Management emphasized that direct cost controls and improved fixed cost leverage led to an 80 basis point increase in full-year adjusted gross margin to 23.3%[2] - The company's total lot inventory increased by 9% YoY to 80,632, with controlled lots making up 56% of the total, indicating a strategic approach to land management[2] - The balance sheet is strong with $2.6 billion of stockholders' equity and $918 million of liquidity, allowing for the repurchase of over 3% of outstanding shares in 2024[4] Detailed Financial Results Fourth Quarter 2024 Results Q4 2024 total revenues reached a record $1.3 billion from 3,198 deliveries, with net income of $102.7 million ($3.20 diluted EPS), adjusted gross margin of 22.9%, and SG&A at 11.5% | Metric | Q4 2024 Value | | :--- | :--- | | Total Revenues | $1.3 billion | | Home Sales Revenues | $1.2 billion | | Home Deliveries | 3,198 | | Average Sales Price (ASP) | $389,800 | | Net Income | $102.7 million | | Diluted EPS | $3.20 | | Adjusted Homebuilding Gross Margin | 22.9% | | SG&A as % of Home Sales Revenues | 11.5% | Full Year 2024 Results Full year 2024 generated $4.4 billion in total revenues and $333.8 million net income ($10.40 diluted EPS), with record 11,007 home deliveries and an adjusted homebuilding gross margin of 23.3% | Metric | Full Year 2024 Value | | :--- | :--- | | Total Revenues | $4.4 billion | | Home Sales Revenues | $4.3 billion | | Home Deliveries | 11,007 | | Average Sales Price (ASP) | $390,900 | | Net Income | $333.8 million | | Diluted EPS | $10.40 | | Adjusted Homebuilding Gross Margin | 23.3% | | SG&A as % of Home Sales Revenues | 12.0% | Financial Services Performance The financial services segment contributed $26.2 million in Q4 2024 revenues ($7.9 million pre-tax income) and $92.9 million in full year revenues ($26.7 million pre-tax income) | Period | Revenues | Pre-Tax Income | | :--- | :--- | :--- | | Q4 2024 | $26.2 million | $7.9 million | | Full Year 2024 | $92.9 million | $26.7 million | Balance Sheet and Liquidity Financial Position Q4 2024 ended with a strong balance sheet, including $2.6 billion stockholders' equity and $917.5 million liquidity, supported by an increased $900.0 million credit facility extended to November 2028 - Ended Q4 2024 with $2.6 billion of stockholders' equity[11] - Total liquidity stood at $917.5 million, including $153.0 million of cash[11] - Increased the capacity of the senior unsecured credit facility to $900.0 million and extended the maturity to November 2028[11] Capital Return and Leverage In 2024, the company repurchased 1,027,702 shares for $83.8 million and paid $1.04 per share in dividends, while leverage improved sequentially to 27.4% net homebuilding debt to net capital at year-end - For the full year 2024, the company repurchased 1,027,702 shares of common stock for $83.8 million, representing over 3% of shares outstanding at the beginning of the year[12] - Paid a quarterly cash dividend of $0.26 per share, totaling $1.04 per share for the full year 2024[12] | Leverage Ratio | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | | Homebuilding debt to capital | 30.3% | 35.8% | | Net homebuilding debt to net capital | 27.4% | 32.1% | Business Outlook Full Year 2025 Outlook The company projects 2025 home deliveries between 11,700 and 12,400 homes and home sales revenues between $4.5 billion and $4.8 billion, driven by expanded lot and community counts | 2025 Guidance | Range | | :--- | :--- | | Home Deliveries | 11,700 - 12,400 homes | | Home Sales Revenues | $4.5 - $4.8 billion | Detailed Financial Statements Consolidated Statements of Operations The income statement shows total revenues increasing from $3.69 billion in 2023 to $4.40 billion in 2024, with net income growing from $259.2 million to $333.8 million and diluted EPS rising from $8.05 to $10.40 | (in thousands) | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Total Revenues | $4,398,288 | $3,692,185 | | Income before income tax | $440,060 | $350,830 | | Net Income | $333,816 | $259,224 | | Diluted EPS | $10.40 | $8.05 | Consolidated Balance Sheets As of December 31, 2024, the balance sheet shows total assets of $4.53 billion (up from $4.14 billion in 2023) and total stockholders' equity of $2.62 billion (up from $2.39 billion), reflecting strong earnings retention | (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $149,998 | $226,150 | | Inventories | $3,454,337 | $3,016,641 | | Total Assets | $4,532,472 | $4,139,362 | | Total Liabilities | $1,911,616 | $1,752,426 | | Total Stockholders' Equity | $2,620,856 | $2,386,936 | Homebuilding Operational Data Net New Home Contracts Full year 2024 net new home contracts increased 20.9% YoY to 10,676, with strong regional growth, while Q4 2024 contracts rose 5.4% YoY to 2,467, led by a 32.0% increase in Texas | Region | FY 2024 Contracts | YoY Change | | :--- | :--- | :--- | | West | 1,490 | +28.6% | | Mountain | 2,005 | +24.2% | | Texas | 1,987 | +21.9% | | Southeast | 1,619 | +24.9% | | Century Complete | 3,575 | +14.3% | | Total | 10,676 | +20.9% | Home Deliveries Full year 2024 home deliveries reached a record 11,007 (+15.0%), with the total weighted average sales price increasing 3.8% to $390,900, and the West region showing the largest ASP growth | Region | FY 2024 Deliveries | YoY Change | | :--- | :--- | :--- | | West | 1,437 | +26.8% | | Mountain | 2,019 | +6.7% | | Texas | 2,077 | +28.4% | | Southeast | 1,654 | +20.7% | | Century Complete | 3,820 | +7.4% | | Total | 11,007 | +15.0% | Selling Communities The company expanded its total selling communities by 28.3% YoY to a record 322 as of December 31, 2024, with Texas (+81.4%) and Southeast (+55.6%) showing the largest percentage increases | Region | Communities at 12/31/24 | YoY Change | | :--- | :--- | :--- | | Texas | 78 | +81.4% | | Southeast | 42 | +55.6% | | Century Complete | 123 | +19.4% | | West | 30 | +11.1% | | Mountain | 49 | -3.9% | | Total | 322 | +28.3% | Backlog Year-end 2024 backlog stood at 850 homes ($351.2 million), representing a 20.6% decrease in homes and 12.4% decrease in dollar value YoY, despite a 10.3% increase in average sales price to $413,100 | Metric | As of Dec 31, 2024 | YoY Change | | :--- | :--- | :--- | | Homes in Backlog | 850 | -20.6% | | Backlog Dollar Value | $351.2 million | -12.4% | | Average Sales Price | $413,100 | +10.3% | Lot Inventory Total lot inventory grew 9.4% YoY to 80,632 lots, with controlled lots comprising 55.7% of the total, indicating a continued strategic approach to land acquisition | Lot Type | As of Dec 31, 2024 | YoY Change | | :--- | :--- | :--- | | Owned Lots | 35,756 | +16.8% | | Controlled Lots | 44,876 | +4.1% | | Total Lots | 80,632 | +9.4% | - The percentage of controlled lots was 55.7% of the total lot inventory at the end of 2024[28] Reconciliation of Non-GAAP Financial Measures Adjusted Net Income and Adjusted EPS The company reconciles GAAP Net Income to Adjusted Net Income, which excludes specific items, showing FY 2024 Adjusted Net Income at $355.1 million ($11.06 diluted EPS) versus GAAP Net Income of $333.8 million ($10.40 diluted EPS) | (in thousands) | Full Year 2024 | Full Year 2023 | | :--- | :--- | :--- | | Net Income (GAAP) | $333,816 | $259,224 | | Adjustments (Impairment, etc.) | $28,123 | $1,877 | | Adjusted Net Income (Non-GAAP) | $355,149 | $260,611 | | Diluted EPS (GAAP) | $10.40 | $8.05 | | Adjusted Diluted EPS (Non-GAAP) | $11.06 | $8.09 | Adjusted Homebuilding Gross Margin This section reconciles GAAP homebuilding gross margin to the adjusted figure, showing FY 2024 adjusted margin at 23.3%, an 80 basis point improvement from 2023, compared to the GAAP margin of 21.5% | (in thousands) | Full Year 2024 | % of Revenue | | :--- | :--- | :--- | | Homebuilding Gross Margin (GAAP) | $924,729 | 21.5% | | Add: Inventory Impairment | $8,778 | 0.2% | | Add: Interest in cost of sales | $60,286 | 1.4% | | Add: Purchase price accounting | $9,443 | 0.2% | | Adjusted Gross Margin (Non-GAAP) | $1,003,236 | 23.3% | EBITDA and Adjusted EBITDA This section reconciles Net Income to EBITDA and Adjusted EBITDA, with FY 2024 Adjusted EBITDA reaching $550.0 million, a 35.1% increase YoY after specific adjustments | (in thousands) | Full Year 2024 | Full Year 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | $333,816 | $259,224 | +28.8% | | EBITDA | $521,899 | $405,309 | +28.8% | | Adjusted EBITDA | $550,022 | $407,186 | +35.1% | Ratio of Net Homebuilding Debt to Net Capital The company's net leverage ratio, net homebuilding debt to net capital, was 27.4% as of December 31, 2024, an increase from 22.4% in 2023, reflecting higher debt to support growth | (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Homebuilding Debt | $1,140,973 | $1,017,576 | | Less: Cash | ($153,002) | ($327,995) | | Net Homebuilding Debt | $987,971 | $689,581 | | Total Stockholders' Equity | $2,620,856 | $2,386,936 | | Net Debt to Net Capital | 27.4% | 22.4% |