Century Communities Inc (NYSE:CCS) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 05:00 pm ET


Century Communities Inc (NYSE:CCS) Q4 2018 Earnings Conference Call Transcript


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Greetings and welcome to the Century Communities Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instruction) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Scott Dixon, Chief Accounting Officer. Thank you sir. You may begin.

John Scott Dixon

Good afternoon. We would like to thank you for joining us today for Century Communities fourth quarter and full year 2018 earnings conference call.

Before the call begins, I would like to remind everyone that certain statements made in the course of this call are not based on historical information and may constitute forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described or implied in the forward-looking statement. Certain of these risks and uncertainties can be found under the heading Risk Factors in the Company's most recently filed annual report on Form 10-K as supplemented by our other SEC filings. Our SEC filings are available at www.sec.gov and on our website at www.centurycommunities.com. The company undertakes no duty to update any forward-looking statements that are made during this call.

Additionally, certain non-GAAP financial measures will be discussed on this conference call. The Company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial 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.

Dale Francescon

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 outlook. Following our prepared remarks we will open the lines for questions.

2018 was another year of strong top line growth in earnings acceleration for Century, leading to our 16th consecutive year of profitability. For the year we increased revenues 51% to $2.1 billion, grew our deliveries 68% to 6,099 homes, increased our net new contracts 48% to 5,657 homes, continued the expansion of our national footprint into additional attractive markets with the purchase of Wade Jurney Homes, increased adjusted EBITDA to $228 million and increased adjusted net income to a record $120 million or $3.94 per share.

Assuming we had owned 100% of Wade Jurney Homes' for all of 2018, we would have delivered 7,092 homes for the full year and homebuilding revenues would have been $2.3 billion. Despite a strong overall year for Century, our fourth quarter home deliveries and net new contracts were impacted by buyer hesitation to increased interest rates and tightening