Century munities(US:CCS)2025-07-23 22:33Financial Performance - For the three and six months ended June 30, 2025, total revenues were $1.0 billion and $1.9 billion, respectively, compared to $1.0 billion and $2.0 billion in the prior year periods [110]. - Net income for the three and six months ended June 30, 2025, was $34.9 million ($1.14 per diluted share) and $74.2 million ($2.40 per diluted share), respectively, down from $83.7 million ($2.61 per diluted share) and $148.1 million ($4.60 per diluted share) in the prior year [109]. - Total revenues for Q2 2025 were $1,000,724, a decrease of 3.3% from $1,039,450 in Q2 2024 [113]. - Home sales revenues decreased to $976,467 in Q2 2025 from $1,017,414 in Q2 2024, representing a decline of 4.0% [113]. - Net income for the six months ended June 30, 2025, was $74,238, down 50.0% from $148,055 in the same period of 2024 [113]. - Adjusted EBITDA for the six months ended June 30, 2025, was $152,230 thousand, a decrease of 36.6% from $240,263 thousand in the same period of 2024 [113]. - Net income for the three months ended June 30, 2025, was $34.9 million, a decrease of 58.4% compared to $83.7 million in the same period of 2024 [189]. - Adjusted net income for Q2 2025 was $42,100,000, a decline of 50.6% from $85,191,000 in Q2 2024 [194]. Home Delivery and Sales - The number of homes delivered during the three and six months ended June 30, 2025, was 2,587 and 4,871, respectively, representing a decrease of 1.1% and 2.1% compared to the prior year [110]. - Average sales price for homes delivered was $377.5 thousand and $381.9 thousand for the three and six months ended June 30, 2025, down 2.9% and 2.1% from the prior year [110]. - Net new home contracts decreased by 8.4% and 7.2% for the three and six months ended June 30, 2025, totaling 2,546 and 5,238, respectively [110]. - The number of homes delivered in Q2 2025 was 2,587, slightly down from 2,617 in Q2 2024 [113]. - The backlog at the end of Q2 2025 included 1,217 homes with an aggregate sales value of $465,990 thousand, compared to 1,753 homes valued at $754,623 thousand in Q2 2024 [113]. - The average sales price of backlog units decreased by 11.1% to $382.9 thousand as of June 30, 2025, compared to $430.5 thousand in the previous year [144]. Segment Performance - The Financial Services segment generated income before income tax expense of $6.2 million and $8.6 million for the three and six months ended June 30, 2025, reflecting a 9.9% increase and a 45.4% decrease from the prior year [112]. - The West segment reported income before tax of $46.4 million for the six months ended June 30, 2025, a decrease of 21.2% compared to the prior year [119]. - The Mountain segment's revenue decreased by $81.8 million for the six months ended June 30, 2025, primarily due to an 18.5% decrease in the number of homes delivered [120]. - The Texas segment generated income before tax of $18.5 million for the six months ended June 30, 2025, a decrease of 41.7% from the prior year, despite a revenue increase of $6.8 million [122]. - The Southeast segment's income before tax decreased by 45.6% to $25.4 million for the six months ended June 30, 2025, with revenue decreasing by $8.9 million [123]. - Century Complete segment reported a revenue decrease of $3.2 million for the six months ended June 30, 2025, with income before tax down 42.5% to $28.8 million [124]. Cash and Liquidity - Cash and cash equivalents at the end of Q2 2025 were $93.2 million, with $270.0 million outstanding under the revolving line of credit [111]. - Liquidity, consisting of cash and cash equivalents, cash held in escrow, and current capacity on the revolving line of credit, was $857.6 million as of June 30, 2025 [155]. - The company had $270.0 million outstanding under its revolving line of credit as of June 30, 2025, compared to $135.5 million at the end of 2024 [158]. - The total outstanding debt as of June 30, 2025, was $1.586 billion, an increase from $1.476 billion as of December 31, 2024 [169]. - The company had issued and outstanding letters of credit of $90.8 million and performance bonds of $454 million as of June 30, 2025 [180]. Strategic Management - The company owned and controlled 68,701 lots as of June 30, 2025, after strategically managing its lot pipeline and reducing land acquisition activities [111]. - The company anticipates that homebuilding markets will continue to be influenced by macroeconomic conditions and local economies, with strategies adapting accordingly [106]. - The company reduced land acquisition and development activities during the six months ended June 30, 2025, by terminating contracts that no longer met investment criteria [157]. - The company is exploring acquisitions of other homebuilders to expand its land portfolio and enhance organic growth [166]. Market Conditions - The company experienced inflationary pressures affecting land, financing, labor, and material costs, which may impact homebuyer demand [198]. - Seasonal fluctuations in homebuilding operations typically result in higher new home order activity during the spring [199]. - The U.S. Federal Reserve did not change the federal funds interest rate during the first half of 2025, impacting mortgage financing affordability [197]. - The company faces potential market risks from tariffs and duties imposed by the current U.S. Presidential Administration [196].