Century Communities, Inc. · NYSE:CCS
Century Communities — Investor Presentation (May 2020)
20 slides from Century Communities's investor presentation, May 12, 2020
Slide 1: Investor Presentation | May 2020
INVESTOR PRESENTATION | MAY 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this Investor Presentation may be regarded as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Certain forward-looking statements discuss the Company’s plans, strategies and intention
Slide 3: Company overview
Company overview 8,201LTM Q1 2020homes closed $2.5 BILLIONLTM Q1 2020 home sales revenues $1.1 BILLIONStockholders’ equity TOP 10 U.S. HOMEBUILDER1 Premier publicly traded homebuilder 17 CONSECUTIVE YEARS OF PROFITABILITYProfitable through multiple housing cycles 35,831 LOTSAttractive land position
Slide 4: Two complementary brands with high exposure to entry-level segment
Source: Company filingsMarket reportable segments are defined as follows: West (California and Washington), Mountain (Colorado, Nevada and Utah), Texas, Southeast (Georgia, North Carolina, South Carolina and Tennessee), and Century Complete (Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Michiga
Slide 5: 2Q performance update
2Q performance update 2020 April Net Sales essentially the same, down less than 1% from prior yearGross and Net Sales improved sequentially through AprilCancellations have improved from elevated levels in MarchNow in-line with year-to-date averageRepaid $100M on the line of credit in MayContinue to
Slide 6: Key Investment Highlights
Key INVESTMENT Highlights Seasoned & Cycle Tested Management TeamSuccessful History of M&A and IntegrationAttractive Entry Level Buyer FocusGeographically Diverse Top-10 U.S. BuilderStrong Performance Across Financial MetricsConsistent Track Record of Profitable GrowthReturns Focused Business ModelS
Slide 7: Seasoned & Cycle Tested Management Team
SEASONED & CYCLE TESTED management TEAM DALE FRANCESCONCHAIRMAN AND CO-CHIEF EXECUTIVE OFFICER Co-Founder of CCS Co-Largest Shareholder 25+ years of homebuilding experience ROBERT FRANCESCONPRESIDENT AND CO-CHIEF EXECUTIVE OFFICERCo-Founder of CCS Co-Largest Shareholder 25+ years of homebuilding exp
Slide 8: Experienced management team and track record of profitable growth
Founded in 2002 by Dale and Rob Francescon Aligned with shareholders with ~12.5% ownership of CCSProfitable every year since founding – 17 consecutive years, including through the most recent economic downturnSuccessfully executed numerous equity and debt capital raises, with a commitment to maintai
Slide 9: Successful History of M&A and Integration
Successful HISTORY of M&A and integration 2014 2015 2014 Completed 7 acquisitions since 2012, adding 16 states and more than 36,000 total lots Consistently target markets with sound economic and buyer profiles History of buying at right time, location and priceDemonstrated ability to successfully in
Slide 10: Focused on Increasing Exposure to More Affordable Price Point Offerings
FOCUSED ON INCREASING EXPOSURE TO MORE AFFORDABLE PRICE POINT OFFERINGS $500K+ $400-$499K $250-$399K <$250K LTM Q1 2020 HOME SALE DELIVERIES BY ASP High-demand for affordable housing driven by low supply and rise of new household creation across the U.S.CCS strongly positioned to offer some of the l
Slide 11: Two Complementary Brands with High Exposure to Entry-Level Segment
1Q 2020 Home Sales Revenues and Backlog ASP TWO COMPLEMENTARY BRANDS WITH HIGH EXPOSURE TO Attractive ENTRY-LEVEL SEGMENT Broadly targeted customers: First time homebuyersFirst and second move-up buyers Lifestyle buyersCustomizable and diversified product offering Traditional model home sales struct
Slide 12: Increased Focus on Affordability
INCREASED FOCUS ON AFFORDABILITY + 82% Exposure to Entry-level Buyers Across Combined Portfolio in 1Q 2020 Strongly positioned within the attractive affordable homebuyer categoryAhead of peers on shift to more affordable price pointsFocus on value-conscious home buyers allows Century to capitalize o
Slide 13: Increased investment in online homebuying resources
Increased investment in online homebuying resources ACROSS ENTIRE PORTFOLIO Century’s comprehensive virtual resources enable homebuyers to:Explore floor plans and quick move-in homes Set up virtual appointments with Onsite Agents through call/chatSchedule video walkthroughs of homes and communitiesS
Slide 14: Top U.S. Builder with a national footprint across attractive markets
Top 10 U.S. Builder with a national footprint across attractive Markets March 31, 2020 17 states28 markets 35,831 lots Century Communities Brand Century Communities & Century Complete Brands Century Complete Brand
Slide 15: Strong Performance Across Financial Metrics
STRONG PERFORMANCE ACROSS FINANCIAL METRICS Home Sales Revenue Homes Delivered Net New Orders Delivery ASP(1) Absorption(2) Reflects company’s expansion into entry level homesBased on monthly net new orders divided by number of selling communities at period end (excluding Century Complete Homes) Net
Slide 16: Consistent Track Record of Profitable Growth
Consistent TRACK Record OF Profitable growth TOTAL REVENUE ($MM) +255% HOME DELIVERIES +242% NET HOME CONTRACTS +256% Significant Expansion Across All Key Operating Metrics 2015 through LTM 1Q 202017 Consecutive Years of Profitability NET INCOME ($MM) +213%
Slide 17: Strong balance sheet with ample liquidity
Strong balance sheet with AMPLE LIQUIDITY Rated B+ by S&P and B2 by Moody’sSignificant liquidity(2) position ($592mm)$400mm senior unsecured notes5.875%/July 2025$500mm senior unsecured notes6.75%/June 2027$640mm unsecured revolving line of creditMatures April 2023 Source: Public filings as of 12/31
Slide 18: Key Investment Highlights
Key INVESTMENT Highlights Seasoned & Cycle Tested Management TeamSuccessful History of M&A and IntegrationAttractive Entry Level Buyer FocusGeographically Diverse Top-10 U.S. BuilderStrong Performance Across Financial MetricsConsistent Track Record of Profitable GrowthReturns Focused Business ModelS
Slide 19: Regional Information
Regional Information As of 3/31/20 2,594Homes 35,831 Lots $861mm Value Total lots Lot inventory Backlog value Backlog homes Owned Controlled Total West 3,243 1,340 4,583 Mountain 6,983 4,552 11,535 Texas 3,066 2,075 5,141 Southeast 4,200 3,062 7,262 Century Complete 3,360 3,950 7,310 Total 20,852 14
Slide 20: Historical Financials
HISTORICAL FINANCIALS alll CENTURY COMMUNITIES oromar3t,_—_aTD ar, YearendeaDec31 $.000s (except EPS) 2020 2019 2019 2018 2017 2016 2015, Home Sales Revenue S S271 $ 52302 § 2ABIASS S 2.110.058 S$ 1405483 § 977 $ 725437 Land Sales and Other Revenue 20,108 1356 vies 5631 8.503 15.707 9.082 Financial
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