Century Communities, Inc. · NYSE:CCS
Century Communities — Investor Presentation (May 2016)
29 slides from Century Communities's investor presentation, May 17, 2016
Slide 1: A Strategy of Dynamic Growth: Investor Presentation, 1st Quarter 2016 Update
A Strategy of Dynamic growth Investor Presentation | 1st Quarter 2016 Update Exhibit 99.1
Slide 2: 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 intentions, and may be identified by
Slide 3: A Premier Homebuilder of Quality Homes
Top-25 U.S. homebuilder(1) 13 consecutive years of profitability Since founding in 2002 Attractive land positions in 151 communities(2) 13,188 lots owned and controlled(2) 87 active selling communities(2) Strategically located in attractive major metropolitan markets, across Denver, Northern Colorad
Slide 4: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 5: Full Year 2015 Highlights
Full Year 2015 Highlights REVENUES $734.5m “$372.1m (+103%) vs 2014 Avg Selling Price $302,140 Total Closings 2,401 (+130% y/y) PRE-TAX INCOME $60.3m “$29.3m (+95%) vs 2014 ADJUSTED EBITDA $77.8m “$36.8m (+90%) vs 2014 Overhead as % of home sales revenues 12.1% (120 bps improvement y/y) NET INCOME $
Slide 6: Q1 2016 Highlights
Q1 2016 Highlights REVENUES $184.1m “$27.7m (+17%) vs Q1 2015 Avg Selling Price $330,600 PRE-TAX INCOME $12.4m “$2.9m (+31%) vs Q1 2015 ADJUSTED EBITDA $17.0m “$2.9m (+20%) vs Q1 2015 Overhead as % of home sales revenues 13.9% NET INCOME $8.0m “$1.6m (+26%) vs Q1 2015 BACKLOG 969 homes Avg Sales Pri
Slide 7: Profitably Growing the Footprint
Profitably growing The Footprint Our strategy 2016 revenue and closing estimates based on the mid-point of 2016 guidance as of February 18, 2016.
Slide 8: CCS trades at a valuation discount to peers
At current valuations, CCS trades at a compelling valuation to “New IPO” Peers, “Small Cap Builders” and “Mid Cap Builders” Industry leading EBITDA growth well ahead of peer groups Note: Values for “New IPO”, “Small Cap Builders” and “Mid Cap Builders” represent average values for each group. “New I
Slide 9: Larger, faster growing operations driving SG&A leverage and returns
Larger, faster growing homebuilding operations driving better SG&A leverage and stronger returns on equity vs peer group Source: SNL, Emerging Growth Peer average is comprised of AVHI, LGIH, NWHM, UCP, WCIC, WLH S,G&A as % of Homebuilding Revenues Return on Equity Net New Home Contracts Home Deliver
Slide 10: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 11: Management Team: Seasoned and Aligned
Management team Seasoned and aligned DALE FRANCESCON CHAIRMAN AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 14% of CCS 25+ years of homebuilding ROBERT FRANCESCON PRESIDENT AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 14% of CCS 25+ years of homebuilding DAVID MESSENGER CHIEF FINANC
Slide 12: Cycle-Tested Management Team: Operating Highlights 2012-2015
2012 Operating Highlights Net New Home Orders: 415 Deliveries: 336 ASP: $286k Revenues: $96.0m Net Income: $6.1m Inventories: $77.3m Owned/Controlled Lots: 3,072 Backlog Units 148 Backlog Value $451.6 Cycle-Tested Management Team Demonstrated long term track record of profitability through multiple
Slide 13: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 14: Diversified Operating Strategy
Diverse & Growing Economies Focus on metros with robust economic, job, and population growth Markets characterized by strong demand, constrained supply, and healthy projected price appreciation Premier Locations & Amenities Locations with excellent access to jobs, transport, schools and lifestyle ce
Slide 15: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 16: Division Overview
COLORADO DIVISION* 2015 Net Sales: 680 2015 Deliveries: 636 Open Communities(1): 27 Inventories(1)(2): $290.0m Lots Owned(1): 2,931 Lots Controlled(1): 1,022 Months’ Supply(1): Denver: 1.1 months Colorado Springs: 2.8 months As of March 31, 2016 Excludes Corporate inventories As of May 5, 2016 LAS V
Slide 17: Operational Leverage on Expanding Footprint
Operational Leverage on Expanding Footprint Growing deliveries and controlling fixed cost base to drive incremental profit
Slide 18: Successful Track Record of Expansion Through Acquisitions
Successful Track Record Expansion Through Acquisitions Well-recognized private homebuilder in Austin and San Antonio, Texas Wide product range from first time move-up to “semi-custom” homes priced from under $300,000 to over $1,000,000 Acquired 166 lots (116 lots were under contract) and 95 homes un
Slide 19: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 20: Strong Lot Inventory and Land Sourcing Capabilities
Represents total lots owned and controlled as of March 31, 2016 divided by the midpoint of closing guidance reconfirmed on May 5, 2016. As of March 31, 2016. Total Assets defined as total assets amount per the balance sheet, excluding Corporate assets. TOTAL ASSETS(2) Evaluate land opportunities bas
Slide 21: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 22: Financial Capacity to Execute Growth Strategy
Financial Capacity to Execute Growth Strategy $165.5 million of liquidity(1) $260 million Senior Unsecured Notes due 2022 6.875% coupon Matures May 15, 2022 Moody’s and S&P ratings of B3 / B, respectively(2) $300 million Revolving Credit Facility, with a $100 million accordion feature Available liqu
Slide 23: Strengthened Backlog Positions Company to Execute Growth Strategy
Strengthened Backlog Positions Company to Execute Growth Strategy At March 31, 2016 969 homes in backlog with a total dollar value of $361.3 million and average sales price of $372,900 as of March 31, 2016 Increased backlog dollar value 17% since March 31, 2015 Increased backlog average sales price
Slide 24: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 25: Historical Operating Performance
Historical Operating Performance Demonstrated history of substantial growth in operating metrics NET NEW HOME ORDERS TOTAL REVENUE ($MM) ENDING SELLING COMMUNITIES HOME CLOSINGS BACKLOG VALUE ($MM) ADJUSTED EBITDA ($MM)
Slide 26: Historical Operating Performance | Q1 2016
Historical Operating Performance | q1 2016 Demonstrated history of substantial growth in operating metrics NET NEW HOME ORDERS HOME CLOSINGS ENDING SELLING COMMUNITIES TOTAL REVENUE ($MM) BACKLOG VALUE ($MM) ADJUSTED EBITDA ($MM) 11% 20% 18% 10% Flat 12%
Slide 27: Key Highlights
Key Highlights Seasoned and Aligned Management Team Strong and Growing Geographical Footprint Superior Operating Performance Attractive and Well-Located Land Positions Diversified Operating Strategy Financial Capacity to Execute Growth Strategy
Slide 28: Historical Financial Performance
Historical Financial Performance
Slide 29: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory. Adjusted EBITDA is a non-GAAP financial measure we use as a supplemental measure in evaluating operating performance. We define adjusted EBITDA as consolidated net income before (i) income tax expense, (ii) inter
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