For a company that has smaller operators around the country over the last couple of years, it's not surprising that Century Communities would post growth across the board in 2015. And that's exactly what the Denver-based builder did--more than doubling many of its numbers in 2015.
Here are the highlights:
- Net income grew 83% to $13.2 million
- Pre-tax income of $20.4 million, an increase of 85%
- Home sales revenues increased 53% to $204.5 million
- Home deliveries up 40% to 645 homes
- Adjusted home building gross margin grew 60% to $45.0 million
- Selling, General & Administrative (“SG&A”) as a percent of home sales revenues declined to 10.7%, an improvement of 110 basis points
- Adjusted EBITDA expanded 53% to $24.8 million
- Net new home contracts grew 25% to 455 homes
- Open communities at the end of the quarter increased 13.3% to 94 (an increase of 17.3% to 88 based on redefined calculation of open communities beginning in 2016)
- Upsized unsecured revolving credit facility to $300 million, with a $100 million accordion feature
For the fourth quarter, J.P. Morgan's Michael Rehaut commented that Century produced greater margins than expected, but missed on SG&A. Its 25% order increase for the quarter came in as expected and community count was up 49%.
"The company pointed to stable to improving demand throughout the quarter," Rehaut wrote. "Moreover, CCS noted that trends in 2016 so far were evolving similarly to last year, with January/February sales pace up slightly year over year and stable demand continuing across all its regions (excluding Houston, which was noted as a small part of its overall business and where trends remain down). Lastly, CCS noted that incentives were stable outside of Houston, where discounts were noted as up."