Century Communities (CCS) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $83.7 million ($2.61 per diluted share), up 63% year-over-year, with adjusted net income at $85.2 million ($2.65 per share), and home sales revenues increased 24% to $1.04 billion on 2,617 home deliveries (up 17%).

• Net new home contracts rose 20% year-over-year to 2,780, and community count reached a record 266, up 14%.

• Entry-level buyers represented 93% of total home deliveries, with a focus on move-in ready, affordable homes and a land-light, spec-home strategy.

• Marked the 10-year anniversary as a public homebuilder, now operating in 18 states and over 45 markets.

• J. Scott Dixon was appointed Chief Financial Officer.

Financial highlights

• Q2 2024 revenues reached $1.04 billion, up 24% year-over-year; net income was $83.7 million, up 63%; adjusted EPS was $2.65, up 66%.

• Homebuilding gross margin was 22.5% (up from 19.7%); adjusted homebuilding gross margin was 24%.

• Adjusted EBITDA for Q2 2024 was $130.6 million, up 63% year-over-year.

• SG&A expense for Q2 2024 was $126.0 million (12.4% of home sales revenue), down from 12.8% prior year.

• Book value per share was $78.68 as of June 30, 2024, up 13% year-over-year; liquidity at quarter end was $841 million.

Outlook and guidance

• Full-year 2024 guidance raised: home deliveries expected between 10,700 and 11,300; home sales revenues projected at $4.2 to $4.4 billion; full-year average sales price expected to be approximately $390,000.

• Expect sequential growth in deliveries for Q3 and Q4 2024.

• SG&A as a percent of home sales revenue expected to decline year-over-year.

• Focus remains on monetizing homes with near-term deliveries, controlling direct costs, and maintaining balanced home and land inventories.

• Company is well-positioned amid housing shortages but notes uncertainty due to interest rates, inflation, and macroeconomic factors.