Century Communities (CCS) Q4 2023 earnings summary

Executive summary

• FY 2023 deliveries totaled 9,568 homes and revenue was $3.692B; Q4 deliveries set a quarterly record at 3,157, up 9% YoY.

• Q4 net income rose 15% YoY to $91.3M, or $2.83 per diluted share; 2023 marked the 21st consecutive profitable year.

• Q4 net new home contracts increased 86% YoY to 2,340.

• Entry-level buyers represented 93% of Q4 deliveries, and 99% of deliveries were spec builds.

Financial highlights

• FY 2023 total revenue was $3.692B, including $3.604B of home sales; net income was $259.2M and diluted EPS was $8.05. Adjusted net income was $260.6M and adjusted diluted EPS was $8.09.

• Q4 total revenue was $1.206B, net income was $91.3M and diluted EPS was $2.83; adjusted net income was $94.5M and adjusted diluted EPS was $2.93.

• EBITDA was $145.2M in Q4 and $405.3M for FY 2023; adjusted EBITDA was $147.1M and $407.2M, respectively.

• Homebuilding gross margin was 21.6% in Q4 and 21.2% for FY 2023; adjusted margin was 23.0% and 22.5%, respectively.

• Average delivery sales price was $375,500 in Q4 and $376,700 for FY 2023.

Outlook and guidance

• FY 2024 guidance calls for 10,000–11,000 deliveries and $3.8B–$4.2B in home sales revenue.

• Guidance reflects demand for affordable new homes, cycle times in line with historical levels and expected community-count growth.

• Priorities include monetizing near-term deliveries, controlling direct costs, reducing cycle times, and growing communities and homes under construction at a measured pace.

• Move-in-ready/spec construction is intended to improve cost and margin visibility, streamline builds, accelerate inventory turns and help buyers lock mortgage rates.