Century Communities, Inc. · NYSE:CCS
Century Communities — Investor Presentation (September 2016)
22 slides from Century Communities's investor presentation, Sep 22, 2016
Slide 1: A Strategy of Dynamic Growth: 2nd Quarter 2016 Update
A Strategy of Dynamic growth Investor Presentation | 2nd 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 152 communities(2) 14,043 lots owned and controlled(2) 91 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 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
$9.8 $16.1 $33.1 $42.5 YTD 2Q13 YTD 2Q14 YTD 2Q15 YTD 2Q16 $6.5 $10.1 $19.0 $25.5 2Q13 2Q14 2Q15 2Q16 $ 66 .0 129.5 $345.5 $443.7 YTD 2Q13 YTD 2Q14 YTD 2Q15 YTD 2Q16 $41.3 $79.9 $189.1 $259.6 2Q13 2Q14 2Q15 2Q16 $6.9 $8.7 $16.1 $21.1 YTD 2Q13 YTD 2Q14 YTD 2Q15 YTD 2Q16 $3.9 $5.3 $9.8 $13.1 2Q13 2Q14
Slide 7: Q2 2016 Highlights
Q2 2016 Highlights REVENUES $259.6m “$70.6m (38%) vs Q2 2015 Avg Selling Price $334,900 PRE-TAX INCOME $19.1m “$4.7m (32%) vs Q2 2015 ADJUSTED EBITDA $25.5m “$5.6m (28%) vs Q2 2015 Overhead as % of home sales revenues 12.2% NET INCOME $13.1m “$3.3m (34%) vs Q2 2015 BACKLOG 1,070 homes Avg Sales Pric
Slide 8: Q2 Year-To-Date Highlights
Q2 Year-To-Date Highlights REVENUES $443.7m “$98.2m (28%) vs Q2YTD 2015 Avg Selling Price $335,300 PRE-TAX INCOME $31.5m “$7.6m (32%) vs Q2YTD 2015 ADJUSTED EBITDA $42.5m “$9.4m (28%) vs Q2YTD 2015 Overhead as % of home sales revenues 12.9% NET INCOME $21.0m “$5.0m (31%) vs Q2YTD 2015 BACKLOG $406.7
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 (100%) vs 2014 BACKLOG
Slide 10: Larger, faster growing homebuilding operations vs peer group
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 S,G&A as % of Homebuilding Revenues Return on Equity New Home Contracts Home Deliveries ONE OF THE LARGEST AND
Slide 11: Cycle-Tested Management Team: Operating Highlights
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 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 Premier Locations & Amenities Locations with excellent access to jobs, transport, schools and lifestyle ce
Slide 13: Divisions overview
COLORADO DIVISION* 2016 Net Sales(1): 460 2016 Deliveries(1): 377 Open Communities(1): 27 Inventories(1)(2): $286.1m Lots Owned(1): 2,690 Lots Controlled(1): 641 Months’ Supply(3): Denver: 1.1 months Colorado Springs: 2.8 months As of June 30, 2016 Excludes corporate inventories Months’ supply is as
Slide 14: Operational Leverage on Expanding Footprint
Operational Leverage on Expanding Footprint Growing deliveries and controlling fixed cost base to drive incremental profit
Slide 15: 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 16: Strong Lot Inventory With Land Sourcing Capabilities
Strong Lot Inventory With Land Sourcing And Evaluation Capabilities Represents total lots owned and controlled as of June 30, 2016 divided by the midpoint of closing guidance reconfirmed on August 2, 2016 TOTAL INVENTORY $ VALUE Evaluate land opportunities based on contribution to overall profitabil
Slide 17: Capacity to Execute Growth Strategy
Capacity to Execute Growth Strategy $170.8 million of liquidity(1) $260 million senior unsecured notes 6.875% coupon Matures May 15, 2022 Moody’s and S&P ratings of B3 / B, respectively(2) $300 million unsecured revolver, with a $100 million accordion feature Available liquidity calculated as cash a
Slide 18: Strengthened Backlog Positions Company to Execute Growth Strategy
Strengthened Backlog Positions Company to Execute Growth Strategy At June 30, 2016 1,070 homes in backlog with a total dollar value of $406.7 million and average sales price of $380,100 as of June 30, 2016 Increased backlog dollar value 17% since June 30, 2015 Increased backlog average sales price 1
Slide 19: Historical Operating Performance
Historical Operating Performance Demonstrated history of substantial growth in operating metrics NEW HOME ORDERS TOTAL REVENUE ($MM) ENDING SELLING COMMUNITIES HOME DELIVERIES BACKLOG VALUE ($MM) ADJUSTED EBITDA ($MM)
Slide 20: Historical Financial Performance
Historical Financial Performance
Slide 21: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory.
Slide 22: Historical Financials
Historical Financials Purchase price accounting for acquired work in process inventory.
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