GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- Century Communities, Inc. (NYSE:CCS) reported a profit of $8.0 million, or $0.38 per share, for the first quarter of 2016 ended March 31, compared to $6.4 million, or $0.30 per share, for the prior year quarter.
Home sales revenue for the first quarter 2016 was $181.1 million, up from $154.3 million for the prior year quarter. The average selling price of homes delivered rose to $336,000 from $284,800 in the prior year quarter, largely due to a shift in regional and product mix from new communities. Homes delivered in the quarter were 539 homes, compared to 542 homes in the prior year quarter.
Home building gross margin percentage in the first quarter 2016 improved to 20.3%, as compared to 19.1% in the prior year quarter. Adjusted home building gross margin percentage, excluding interest and purchase price accounting in cost of homes sales revenues, was 22.1%, compared to 21.5% in the prior year quarter. SG&A as a percent of home sales revenue was 13.9%, compared to 13.6% in the prior year quarter.
Net new home contracts in the first quarter 2016 increased to 794 homes, an increase of 12.5%, compared to 706 homes in the prior year quarter, largely attributable to a higher number of average open communities. At the end of the first quarter 2016, the Company had 969 homes in backlog, representing $361.3 million of backlog dollar value, compared to 920 homes, representing $308.0 million of backlog dollar value in the prior year quarter.
At the end of first quarter 2016, Century had 87 open communities, an increase of 10.1%, compared to 79 open communities at the end of the prior year quarter. Beginning in 2016 the company revised its open selling community count method to define an open selling community as any community that had one new home contracted to start and more than five homes remaining to be contracted. Under the prior method, the company formerly defined a selling community as any community that had one new home contracted to start and more than five homes remaining to be delivered.
As of March 31, 2016, Century listed total assets of $957.6 million and inventories of $867.4 million. Liabilities totaled $541.1 million, which included $415.1 million of long-term debt. At March 31, 2016, the Company’s ratio of net debt to net capital was 49.2%. As of March 31, 2016, the Company had $140 million of availability under its unsecured credit facility, and the accordion feature thereunder was undrawn.
“We had a great start to 2016 with earnings increasing 27% to $0.38 per share in the first quarter,” said Dale Francescon, Century co-CEO . “Looking ahead to the remainder of 2016, we are on a good path to grow home deliveries and leverage our cost base to deliver another full year of profit improvement.”
“We continue to develop and open new communities while also deploying capital wisely on attractive land parcels in target markets,” said Rob Francescon, Century's other co-CEO. "We are especially pleased with our pace of new community openings in Nevada, our strong backlog in Colorado and growing presence across multiple buyer types in Atlanta.”