Century munities(US:CCS)2025-07-23 20:14Financial Performance - Deliveries of 2,587 homes generated total revenues of $1.0 billion, with home sales revenues totaling $976.5 million[3] - Net income for the second quarter was $34.9 million, or $1.14 per diluted share, while adjusted net income was $42.1 million, or $1.37 per diluted share[5] - Financial services revenues were $23.8 million, with pre-tax income of $6.2 million for the second quarter[7] - Adjusted net income for Q2 2025 was $42.1 million, with adjusted diluted earnings per share of $1.37, compared to $85.2 million and $2.65 in Q2 2024[26] - Net income for Q2 2025 decreased by 58.4% to $34.854 million compared to $83.724 million in Q2 2024[32] - EBITDA for Q2 2025 was $66.492 million, down 48.5% from $129.104 million in Q2 2024[32] - Adjusted EBITDA for Q2 2025 decreased by 41.9% to $75.893 million from $130.647 million in Q2 2024[32] Home Sales and Deliveries - Total home sales decreased by 1.1% to 2,587 homes in Q2 2025, with an average sales price of $377.5 thousand, down 2.9% from Q2 2024[20] - Net new home contracts totaled 2,546, representing an 8.4% decrease compared to the previous year[19] - Full year 2025 home delivery guidance has been revised to a range of 10,000 to 10,500 homes, with home sales revenues expected between $3.8 billion and $4.0 billion[10] Inventory and Backlog - Backlog homes decreased by 30.6% to 1,217 homes, with a total dollar value of $465.99 million, down 38.2% from 2024[22] - Lot inventory increased by 14.2% to 37,419 owned lots, while controlled lots decreased by 31.0% to 31,282, resulting in a total of 68,701 lots, down 12.0%[23] - The company reported a significant inventory impairment of $7.36 million in Q2 2025, impacting overall profitability[29] - Inventory impairment increased significantly by 1,191.2% to $7.360 million in Q2 2025 compared to $570,000 in Q2 2024[32] Equity and Debt - The company ended the quarter with $2.6 billion in stockholders' equity and $858 million in liquidity, including $127.6 million in cash[8] - Total stockholders' equity decreased to $2.564 billion as of June 30, 2025, from $2.621 billion at the end of 2024[35] - Total homebuilding debt rose to $1.278 billion as of June 30, 2025, compared to $1.141 billion at the end of 2024[35] - The ratio of net homebuilding debt to net capital was 31.0% as of June 30, 2025, up from 27.4% at the end of 2024[35] Community and Market Growth - Community count increased by 23% year-over-year to a record 327, with expectations for mid-single digit percentage growth by year-end 2025[2] - The company expanded its selling communities to 327 as of June 30, 2025, a 22.9% increase from 266 in 2024[21] Cost and Expenses - Adjusted homebuilding gross margin percentage was 20.0%, while homebuilding gross margin was 17.6%[6] - Homebuilding gross margin for Q2 2025 was 17.6%, down from 22.5% in Q2 2024, while adjusted gross margin excluding inventory impairment was 20.0%[29] - Interest in cost of home sales revenues increased by 4.5% to $14.204 million in Q2 2025 compared to $13.592 million in Q2 2024[32] - Depreciation and amortization expense rose by 13.1% to $6.434 million in Q2 2025 from $5.689 million in Q2 2024[32] - The company reported a significant increase in restructuring costs, with $1.505 million recorded in the first half of 2025[32] Regional Performance - The average sales price in the West region decreased by 3.9% to $602.5 thousand, while the Southeast region saw a 2.6% decline to $429.9 thousand[20] - The Texas region experienced a 3.3% increase in homes sold to 501, with an average sales price of $294.2 thousand, down 2.3%[20] - Century Complete segment saw a slight decrease in homes sold by 1.9% to 954, with an average sales price of $260.5 thousand, down 0.6%[20]