Century Communities Inc (CCS) Posts Record Fourth Quarter Deliveries and Robust Full Year 2023 ...
Net Income: Fourth quarter net income increased 15% year-over-year to $91.3 million.
Revenue: Full year revenues reached $3.7 billion with 9,568 homes delivered.
Debt to Capital Ratio: Net homebuilding debt to net capital improved to a record low of 22.4%.
Book Value: Book value per share increased to a company record of $75.12.
Outlook: For full year 2024, deliveries are expected to be in the range of 10,000 to 11,000 homes with revenues projected between $3.8 billion to $4.2 billion.
On January 31, 2024, Century Communities Inc (NYSE:CCS), a leading homebuilder in the United States, announced its financial results for the fourth quarter and full year ended December 31, 2023. The company released its 8-K filing, revealing a strong performance with significant year-over-year improvements in net income and a record low in net homebuilding debt to net capital ratio.
Company Overview
Century Communities Inc is a construction company that specializes in residential markets with operations spanning five homebuilding segments: West, Mountain, Texas, Southeast, and Century Complete. The company also operates a financial services segment, offering mortgage, title, and insurance services to homebuyers. With a focus on developing and constructing single-family detached or attached homes, Century Communities sells homes through its own sales representatives, independent real estate brokers, and various advertising channels.
Financial Highlights and Performance
The company's fourth quarter saw a 15% increase in net income to $91.3 million, or $2.83 per diluted share, compared to the same period last year. Full year net income was reported at $259.2 million, or $8.05 per diluted share. Total revenues for the year were $3.7 billion, with home sales revenues accounting for $3.6 billion of that figure. The average sales price of home deliveries for the year was $376,700.
Century Communities delivered 9,568 homes throughout the year, with the fourth quarter contributing a record 3,157 home deliveries, a 39% sequential increase. The company's net new home contracts in the fourth quarter of 2023 were 2,340, an 86% increase over the previous year, signaling strong demand and exceeding expectations despite typical seasonal declines.
Financial Position and Outlook
The balance sheet remains robust with $2.4 billion in stockholders' equity and $1.1 billion in liquidity. The net homebuilding debt to net capital ratio reached a historic low of 22.4% at year-end. Looking ahead, the company expects to deliver between 10,000 to 11,000 homes in 2024 with home sales revenues projected to be between $3.8 billion to $4.2 billion.
Commentary from Executives
Our fourth quarter deliveries of 3,157 homes, a quarterly record for the Company, increased 39% sequentially as we benefitted from our increased level of home starts earlier in the year and continued improvements in our cycle times, said Dale Francescon, Chairman and Co-Chief Executive Officer.
Our balance sheet remains strong with $2.4 billion in stockholders equity, $1.1 billion in liquidity and net homebuilding debt to net capital of 22.4%, the lowest year end level in our history as a public company, added Rob Francescon, Co-Chief Executive Officer and President.
Analysis and Future Prospects
The company's performance in 2023, marked by a record number of quarterly deliveries and a significant increase in net income, reflects the effectiveness of its operational strategies and the strong demand for affordable new homes. The improvement in the net homebuilding debt to net capital ratio underscores the company's financial discipline and positions it well for future growth. With a positive outlook for 2024, Century Communities Inc appears poised to continue its trajectory of profitability and expansion.
For more detailed information and analysis, investors and interested parties are encouraged to visit the company's website and review the full 8-K filing.
Stay tuned to GuruFocus.com for the latest financial news and expert analysis on Century Communities Inc and other significant market players.
Explore the complete 8-K earnings release (here) from Century Communities Inc for further details.
This article first appeared on GuruFocus.
