Century Communities, Inc. · NYSE:CCS
Century Communities — Investor Presentation (May 2017)
28 slides from Century Communities's investor presentation, May 23, 2017
Slide 1: A Strategy of Dynamic Growth: Investor Presentation, 1st Quarter 2017 Update
A Strategy of Dynamic growth Investor Presentation | 1st quarter 2017 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-20 U.S. homebuilder(1) 14 consecutive years of profitability since founding in 2002 Attractive land positions in 180 communities(2) 18,854 lots owned and controlled(2) 88 active selling communities(2) Focused on markets with exceptional growth potential Strategically located in attractive major
Slide 4: Management team
Management team Seasoned and aligned DALE FRANCESCON CHAIRMAN AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 11% of CCS 25+ years of homebuilding ROBERT FRANCESCON PRESIDENT AND CO-CHIEF EXECUTIVE OFFICER Co-founder of CCS Owns 11% 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 Cycle Tested Management Team Attractive and Well-Located Land Positions Capacity to Execute Growth Strategy
Slide 6: Annual Track Record of Profitable Growth
Annual Track Record OF Profitable growth NEW HOME ORDERS TOTAL REVENUE ($MM) PRETAX NET INCOME ($MM) HOME DELIVERIES BACKLOG VALUE ($MM) ADJUSTED EBITDA ($MM) Expanded Home Sales Revenue, Adjusted EBITDA(1) and Pretax Net Income 10x from 2012-2016 (1) (1) See Adjusted EBITDA Reconciliation on page 2
Slide 7: Full Year 2016 Highlights
Full year 2016 Highlights REVENUES $994.4m “$259.9m (35%) vs 2015 Avg Selling Price $360,100 PRE-TAX INCOME $73.2m “$12.8m (21%) vs 2015 ADJUSTED EBITDA $99.9m “$22.1m (28%) vs 2015 Overhead as % of home sales revenues 12.5% NET INCOME $49.5m “$9.7m (24%) vs 2015 BACKLOG $302.8m Avg Sales Price $404
Slide 8: Q1 2017 Highlights
Q1 2017 Highlights REVENUES $228.3m “$44.2m (24%) vs Q1 2016 Avg Selling Price $372,400 PRE-TAX INCOME $12.1m $0.4m (-3%) vs Q1 2016 ADJUSTED EBITDA $19.3m “$2.2m (13%) vs Q1 2016 NET INCOME $8.8m “$0.8m (10%) vs Q1 2016 BACKLOG 1,098 homes Avg Sales Price $397,100 Backlog $$ value: $436.0m (“21% y/
Slide 9: Attractive Returns on Premium Assets
Established operation producing strong homebuilder margin and returns on equity 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, WCIC and WLH. ‘Mid Cap Builders’ include KBH, MDC, MHO, MTH,
Slide 10: Cycle-Tested Management Team
Cycle-Tested Management Team Demonstrated long term track record of profitability through multiple housing cycles 2013 Operating Highlights Net New Home Orders: 406 Deliveries: 448 ASP: $382k Revenues: $171.1m Net Income: $12.4m Inventories: $184.1m Owned/Controlled Lots: 8,341 2014 Operating Highli
Slide 11: 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 12: 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 Broadly Targeted Customers First time homebuyer, first and second move-up, lifestyle buyer Multiple price
Slide 13: Strong and Growing Geographic Footprint
Six states, 180 total communities, 88 Active selling communities significant U.S. expansion opportunity Strong and Growing Geographic Footprint As of March 31, 2017 Excludes corporate inventories Months’ supply is as of March 31, 2017 and represents that particular market’s inventory of new and resa
Slide 14: 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 March 31, 2017 divided by the midpoint of closing guidance confirmed on May 4, 2017 TOTAL INVENTORY $ VALUE Evaluate land opportunities based on contribution to overall profitability
Slide 15: Growing Backlog Positions Company to Continue Profitable Expansion
Growing Backlog Positions Company to CONTINUE profitable expansion At March 31, 2017 1,098 homes in backlog with a total dollar value of $436.0 million and average sales price of $397,100 as of March 31, 2017 Increased backlog dollar value 21% since March 31, 2016 Increased backlog average sales pri
Slide 16: Capacity to Execute Growth Strategy
Capacity to Execute Growth Strategy $375.7 million of liquidity(1) $385.0 million senior unsecured notes 6.875% coupon Matures May 15, 2022 Moody’s and S&P ratings of B3 / B, respectively(2) In January 2017, raised an additional $125 million under existing senior note at 102% of par with an effectiv
Slide 17: Combination with UCP and Rationale
Combination with ucp AND RATIONALE Transaction Overview Transaction Rationale On April 11, 2017 Century and UCP, Inc. (NYSE: UCP) jointly announced a strategic business combination Purchase price composed of 0.2309 shares of CCS stock and $5.32 of cash for each share of UCP Estimated total value of
Slide 18: Merger Creates a Leading Homebuilding Platform with Significant Scale
MERGER CREATES A LEADING HOMEBUILDING PLATFORM WITH SIGNIFICANT SCALE Total Lots owned + controlled % optioned 18,854 51% 26,903 49% 88 115 # of Open Communities $1,039 million 2,894 $1,413 million 3,773 1Q17 LTM Revenues # of Closings $372 $384(1) 1Q 2017 ASP ($000s) $436 million $613 million 1Q17
Slide 19: Diversified, National Footprint Across Attractive Markets
DIVERSIFIED, NATIONAL FOOTPRINT ACROSS ATTRACTIVE MARKETS
Slide 20: Historical Financial Performance
Historical Financial Performance
Slide 21: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory.
Slide 22: Open Communities by Division
Open Communities by division
Slide 23: Colorado Communities
Colorado Communities Colorado Denver Metro Northern Colorado
Slide 24: Atlanta Communities
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Slide 25: Nevada Communities
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Slide 26: Central Texas Communities
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Slide 27: Houston Communities
AACENTURY COMMUNITIES HOUSTON COMMUNITIES Cleveland i Todd Mission Magnolia
Slide 28: Utah Communities
AACENTURY COMMUNITIES UTAH COMMUNITIES far Fort Fairfield
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