CCS had a nice beat in earnings and revs again while setting company records in sale deliveries and backlog. Guidance was also increased. This builder deserves more respect from Wall Street, now trading at a PE of under 5 based on expected full year earnings.
Second Quarter 2021 Highlights Compared to Second Quarter 2020
Net income increased 207% to a Company record $117.9 million or $3.47 per diluted share (a 65c beat over estimates)
Home sales revenues increased 34% to a Company record $1.0 billion $58 mil beat)
Home deliveries increased 12% to a second quarter record of 2,771 homes
Net new home contracts increased 17% to a second quarter record 3,120 homes
Homes in backlog improved to 4,446 homes with a value of $1.8 billion, both Company records
Pre-tax income improved 204% to a Company record $152.1 million
EBITDA increased 142% to a Company record $173.2 million
Net homebuilding debt to net capital improved to 23.0% from 37.5%
Quarter end total liquidity of $1.3 billion
Expanded $800 million line of credit with a $200 million accordion
Initiated quarterly cash dividend of $0.15 per share
Dale Francescon, Chairman and Co-Chief Executive Officer, stated, “We continued our strong momentum in the second quarter and established a number of company records including home sales revenues in excess of $1 billion, $118 million of net income, pretax income of $152 million and $173 million in EBITDA. Year-to-date, we’ve delivered a record 5,568 homes, a 28% increase over last year, of which over 85% were spec builds. This meaningful focus on move-in-ready homes has enabled Century to capture additional margin expansion, culminating in a second quarter gross margin of 23.9%, the fourth consecutive quarter of sequential margin improvement and an increase of 700 basis points over last year. Our results demonstrate the continued high demand for our homes, positive industry dynamics and the strength, scale and operational excellence of our platform, further cementing us as one of the leading, entry-level national homebuilders.”
