CCS (31.15) out with an excellent quarter adj EPS of $1.21 blew past estimates for $0.88 - but with the homebuilders in a bear market the stock might continue to lanquish -
PR -
Second Quarter 2018 Highlights Compared to Second Quarter 2017
Adjusted net income increased 135% to $36.5 million, or $1.21 per diluted share and net income increased 123% to $33.2 million, or $1.10 per diluted share
Home sales revenues increased 82% to a record $522.2 million
Adjusted homebuilding gross margin increased 92% to $116.4 million
Adjusted homebuilding gross margin percentage improved to 22.3%
Deliveries grew 84% to 1,384 homes
Net new home contracts increased 51% to 1,543 homes
Backlog improved 134% to a record 3,199 homes
Backlog value increased 89% to $987.3 million
Adjusted EBITDA improved 119% to $70.9 million
Expanded senior unsecured credit facility to $640 million inclusive of a $50 million accordion and extended its maturity date to 2022
In June, acquired the remaining 50% interest in WJH, LLC (“Wade Jurney Homes”) creating the 10th largest US homebuilder based on 2017 home deliveries and strengthening the Company’s exposure to entry-level buyers.
Dale Francescon, Co-Chief Executive Officer, stated, “During the second quarter of 2018 we executed on our dynamic growth strategy, in which we more than doubled backlog and net income and achieved significant growth in revenues, deliveries and new contracts, with each metric at record levels growing 82%, 84%, and 51%, respectively. We improved our adjusted homebuilding gross margin percentage by 120 basis points year-over-year and grew ancillary income to produce another record quarter of earnings. Furthermore, we acquired the remaining 50% interest in Wade Jurney Homes, establishing Century as a top-10 U.S. homebuilder and enhancing our exposure to entry-level buyers. We are well positioned to further leverage our national scale, improve profitability and drive additional returns for shareholders.”
Rob Francescon, Co-Chief Executive Officer, said, “We experienced overall positive economic activity and strong buyer traffic in the second quarter. Additionally, our well-located lots and targeted marketing efforts are helping to drive successive quarters of improvement and record results across nearly all key operating metrics. We ended the quarter with a record backlog of 3,199 homes, up 134% compared to a year ago, representing nearly $1 billion of backlog dollar value. This backlog demonstrates the strong demand across our geographies along with our full acquisition of Wade Jurney Homes’ proven and highly profitable operation, which we are already expanding. As we look to the second half of 2018, we are encouraged by our strong pipeline of more than 38,000 lots combined with a strong capital position to further advance our position within the ranks of the top 10 largest U.S. homebuilders.”
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