Century Communities Inc (NYSE:CCS) Q2 2018 Earnings Conference Call - Final Transcript
Aug 02, 2018 • 05:00 pm ET
Good day and welcome to the Century Communities Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode (Operator Instructions). Please note, today's event is being recorded. I would now like to turn the conference over to Scott Dixon, Vice President of Accounting. Mr. Dixon, please go ahead.
Good afternoon, we would like to thank you for joining us today for Century Communities' Second Quarter 2018 Earnings Conference Call. (Forward-Looking Cautionary Statements) Additionally, certain non-GAAP financial measures will be discussed on this earnings conference call. The company's presentation of this information is not intended to be considered in isolation, or as a substitute, to the forward information presented in accordance with GAAP. Management will be available after the call should you have any questions that did not get answered. Hosting the call today are Dale Francescon, Chairman and Co-Chief Executive Officer; Rob Francescon, Co-Chief Executive Officer; and David Messenger, Chief Financial Officer. With that, I will turn the call over to Dale.
Thank you, Scott. Today on the call, I will review our operating highlights and business updates. Rob will then discuss our business and markets in more detail. Afterwards, Dave will follow up with further information on our financial results, balance sheet, and increased outlook for the balance of the year. Following our prepared remarks, we'll open the lines for questions.
Our team executed well in the second quarter of 2018 and more than doubled adjusted earnings year-over-year to $36.5 million or $1.21 per diluted share. We expanded our financial flexibility through the upsizing and extension of our credit facility and completed the Wade Jurney Homes acquisition to become the 10th largest national US homebuilder based on 2017 pro forma homes delivered. Additionally, we reached record levels across the majority of our operating metrics during the quarter including home sales revenue, net new home contracts, backlog dollars and backlog value in an overall healthy homebuilding environment. This significant improvement was driven in part by accelerating growth in our acquired operations and also from strong demand throughout our legacy markets. Furthermore, we maintained tight cost controls and drove significant operational improvements all while finalizing the full integration of our previous acquisitions.
In June 2018, we completed the purchase of the remaining 50% interest in Wade Jurney Homes, which we expect to be a solidly accretive transaction for many years to come. Wade Jurney Homes has a unique and scalable business model, which requires less capital investment and yields quicker asset terms. This has made possible by a streamlined and asset-light business model including the sale of homes through retail outlets as opposed to model homes. This unique sales approach enhances the ability to scale and geographically expand the operations of Wade Jurney Homes in a cost effective manner.
I want to take a moment to touch on a few additional benefits that this transaction provides. This acquisition expand Century's investment into a proven and highly profitable operation, it expands Century's exposure to increasing demand from entry level buyers,