Century Communities, Inc. · NYSE:CCS
Century Communities — Investor Presentation (December 2016)
30 slides from Century Communities's investor presentation, Dec 8, 2016
Slide 1: A Strategy of Dynamic Growth: Investor Presentation, 3rd Quarter 2016 Update
A Strategy of Dynamic growth Investor Presentation | 3Rd 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 163 communities(2) 17,023 lots owned and controlled(2) 87 active selling communities(2) Focused on markets with exceptional growth potential Strategically located in attractive major
Slide 4: Management team: Seasoned and aligned
Management team Seasoned and aligned DALE FRANCESCON CHAIRMAN AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 13% of CCS 25+ years of homebuilding ROBERT FRANCESCON PRESIDENT AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 13% of CCS 25+ years of homebuilding DAVID MESSENGER CHIEF FINANC
Slide 5: Key Highlights
Key Highlights Superior Financial Performance Diversified Operating Strategy Strong and Growing Geographical Footprint Seasoned and Aligned Management Team Attractive and Well-Located Land Positions Capacity to Execute Growth Strategy
Slide 6: Track Record of Profitable Growth
Track Record OF Profitable growth Total Revenue ($mm) Net Income ($mm) Adjusted EBITDA ($mm) +665% +550% +758% +512% +548% +487% +382% +269% +447%
Slide 7: Q3 2016 Highlights
Q3 2016 Highlights REVENUES $253.4m “$70.7m (39%) vs Q3 2015 Avg Selling Price $351,380 PRE-TAX INCOME $19.7m “$3.8m (24%) vs Q3 2015 ADJUSTED EBITDA $26.4m “$6.6m (33%) vs Q3 2015 Overhead as % of home sales revenues 11.4% NET INCOME $13.3m “$2.7m (26%) vs Q3 2015 BACKLOG 992 homes Avg Sales Price
Slide 8: Q3 Year-To-Date Highlights
Q3 Year-To-Date Highlights REVENUES $697.1m “$168.9m (32%) vs Q3YTD 2015 Avg Selling Price $340,950 PRE-TAX INCOME $51.3m “$11.4m (28%) vs Q3YTD 2015 ADJUSTED EBITDA $68.9m “$16.0m (30%) vs Q3YTD 2015 Overhead as % of home sales revenues 11.9% NET INCOME $34.5m “$7.7m (29%) vs Q3YTD 2015 BACKLOG $38
Slide 9: Full Year 2015 Highlights
Full Year 2015 Highlights REVENUES $734.5m “$372.1m (103%) vs 2014 Avg Selling Price $302,140 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 $39.9m “$19.9m (99%) vs 2014 BACKLOG
Slide 10: Larger, faster growing operations driving SG&A leverage and stronger returns on equity
Larger, faster growing homebuilding operations driving better SG&A leverage and stronger returns on equity vs peer group Source: SNL, Peer average includes AVHI, LGIH, NWHM, UCP, WCIC, WLH SG&A as % of Homebuilding Revenues Return on Equity New Home Contracts Home Deliveries ONE OF THE LARGEST AND F
Slide 11: Attractive Returns on Premium Assets
Producing sustained and strong pre-tax profits Attractive ROE profile amongst ‘Small Cap’ and ‘Mid Cap’ builder and industry peers Note: Values for ‘Small Cap Builders’ and ‘Mid Cap Builders’ represent average values for each group. ‘Small Cap Builders’ include AVHI, BZH, LGIH, NWHM, UCP and WCIC. ‘
Slide 12: Cycle-Tested Management Team: Operating Highlights by Year
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 Cycle-Tested Management Team Demonstrated long term track record of profitability through multiple housing cycles 2013 Operating Highlight
Slide 13: 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 14: Division overview: Colorado, Las Vegas, Central Texas
COLORADO DIVISION* 2016 Net Sales(1): 596 2016 Deliveries(1): 590 Open Communities(1): 24 Inventories(1)(2): $288.5m Lots Owned(1): 2,861 Lots Controlled(1): 1,684 Months’ Supply(3): Denver: 2.0 months Colorado Springs: 3.1 months As of September 30, 2016 Excludes corporate inventories Months’ suppl
Slide 15: Operational Leverage on Expanding Footprint
Operational Leverage on Expanding Footprint Growing deliveries and controlling fixed cost base to drive incremental profit
Slide 16: Acquisitions and New Businesses
ACQUISITIONS AND NEW BUSINESSES 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 under construction in the
Slide 17: Strong Lot Inventory With Land Sourcing and Evaluation Capabilities
Strong Lot Inventory With Land Sourcing And Evaluation Capabilities Represents total lots owned and controlled as of September 30, 2016 divided by the midpoint of closing guidance reconfirmed on November 1, 2016 TOTAL INVENTORY $ VALUE Evaluate land opportunities based on contribution to overall pro
Slide 18: Capacity to Execute Growth Strategy
Capacity to Execute Growth Strategy $235.0 million of liquidity(1) $260.0 million senior unsecured notes 6.875% coupon Matures May 15, 2022 Moody’s and S&P ratings of B3 / B, respectively(2) $380 million unsecured revolver, with a $20 million accordion feature Available liquidity calculated as cash
Slide 19: Strong Backlog Positions Company to Continue Growth and Profitability
STRONG Backlog Positions Company to CONTINUE Growth AND PROFITABILITY At September 30, 2016 992 homes in backlog with a total dollar value of $380.9 million and average sales price of $384,000 as of September 30, 2016 Increased backlog dollar value 17% since September 30, 2015 Increased backlog aver
Slide 20: Historical Operating Performance
Historical Operating Performance Demonstrated history of substantial growth in operating metrics NEW HOME ORDERS TOTAL REVENUE ($MM) ENDING SELLING COMMUNITIES HOME DELIVERIES BACKLOG VALUE ($MM) ADJUSTED EBITDA ($MM)
Slide 21: Historical Financial Performance
Historical Financial Performance
Slide 22: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory.
Slide 23: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory.
Slide 24: Century Communities – Maps by Division
Century communities – maps by division
Slide 25: Colorado Communities
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Slide 26: Atlanta Communities
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Slide 27: Las Vegas Communities
AACENTURY COMMUNITIES LAS VEGAS COMMUNITIES Vegas Las Vegas Paradise —__ . Henderson. D> eS wrcoounio GP
Slide 28: Central Texas Communities
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Slide 29: Houston Communities
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Slide 30: Utah Communities
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