Century Communities Reports First Quarter 2019 Results

– Home Sales Revenues Increased 33% to $523.3 Million –

– Home Deliveries Grew 77% to 1,663 Homes –

– Net New Homes Contracts Increased 35% to a Record 1,858 Homes –

– Homes in Backlog Improved 35% to 2,376 –

– Introduces 2019 Outlook for Growth in Revenue and Deliveries –

GREENWOOD VILLAGE, Colo.–(BUSINESS WIRE)–Century Communities, Inc. (NYSE: CCS), a leading national homebuilder,
today announced financial results for its first quarter ended March 31,
2019.

First Quarter 2019 Highlights Compared to First Quarter 2018

• Adjusted net income of $18.4 million, or $0.60 per diluted share and
  net income of $17.1 million, or $0.56 per diluted share
• Home sales revenues increased 33% to $523.3 million
• Selling, general & administrative expense (“SG&A”) as a percent of
  home sales revenues improved by 110 basis points to 13.2%
• Home deliveries grew 77% to 1,663 homes
• Net new home contracts increased 35% to a record 1,858 homes
• Homes in backlog improved 35% to 2,376 homes
• Adjusted EBITDA of $40.4 million

Dale Francescon, Co-Chief Executive Officer, stated, “The first quarter
ended significantly stronger than it started, where we experienced an
overall stabilization in demand trends and better affordability,
compared to relatively muted buyer activity in the latter half of 2018
which continued into the beginning of this year. Our focus remains on
deepening our platform and driving additional operational efficiencies.
Our concentration in markets with sound economic fundamentals combined
with our lower price point product offerings throughout our business
well positions us to deliver further earnings growth and generate
enhanced returns for our stockholders.”

Rob Francescon, Co-Chief Executive Officer, said, “We are encouraged by
the pick-up in buyer activity in recent months which allowed us to end
the quarter with a record number of net new contracts. Our continued
expansion of Wade Jurney Homes’ asset-light, lower price point
operations into new geographies should contribute more meaningfully to
earnings as we progress through the year. We view our significant focus
on entry level buyers as a catalyst for ongoing success in the quarters
to come as our national platform and expanded scale allows us to
continue to drive enhancements and efficiencies throughout our business.”

First Quarter 2019 Results

Home sales revenues for the first quarter 2019 increased 33% to $523.3
million, compared to $394.8 million for the prior year quarter. The
growth in home sales revenues was primarily attributable to a 77%
increase in home deliveries to 1,663 homes compared to 941 homes for the
prior year quarter, partly attributable to the acquisition of Wade
Jurney Homes. Excluding the impact from the acquisition, deliveries from
the Century Communities branded business increased 13% year over year.
Average sales price of home deliveries for the first quarter 2019 was
$314,700, compared to $419,600 in the prior year quarter, consistent
with the Company’s expansion of its offering of entry level homes.

Net new home contracts in the first quarter 2019 increased 35% to a
record 1,858 homes, compared to 1,377 homes in the prior year quarter,
attributable to the addition of Wade Jurney Homes. At the end of the
first quarter 2019, the Company had 2,376 homes in backlog, an increase
of 35% compared to 1,757 homes in backlog in the prior year quarter.

Adjusted net income for the first quarter was $18.4 million, or $0.60
per diluted share, as compared to $22.5 million, or $0.75 per diluted
share, for the prior year quarter. Adjusted net income excludes the
impact of one-time items associated with homebuilder acquisitions. Net
income for the first quarter 2019 was $17.1 million, or $0.56 per
diluted share as compared to $20.0 million or $0.67 per diluted share
for the prior year quarter.

Adjusted homebuilding gross margin percentage, excluding interest and
purchase price accounting, was 19.8% in the first quarter 2019, as
compared to 23.2% in the prior year quarter, which benefitted from a
particularly favorable product mix. Homebuilding gross margin percentage
in the first quarter 2019 was 17.1%, as compared to 19.1% in the prior
year quarter, largely attributable to higher incentives and product mix.
SG&A as a percent of home sales revenues improved to 13.2%, compared to
14.3% in the prior year quarter, due to process enhancements, tight cost
controls, and benefits generated by our larger scale.

Financial services generated pre-tax income of $1.6 million in the first
quarter 2019 as compared to $1.2 million in the prior year quarter.

Balance Sheet and Liquidity

As of March 31, 2019, the Company had total assets of $2.3 billion,
including cash of $62.8 million and inventories of $1.9 billion.
Liabilities totaled $1.4 billion, which included $1.1 billion of
long-term debt. As of March 31, 2019, the Company had $353.0 million of
availability under its credit facility.

Full Year 2019 Outlook

David Messenger, Chief Financial Officer of the Company, commented, “We
are optimistic on the prospects for continued growth in our overall
business and long-term housing fundamentals. Given better visibility
across our footprint during the first quarter 2019, we introduce our
full year outlook for home deliveries to be in the range of 7,000 to
8,000 homes and our home sales revenues to be in the range of $2.2
billion to $2.5 billion.”

Conference Call

The Company will host a webcast and conference call on Thursday, May 2,
2019 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the
Company’s first quarter 2019 results, discuss recent events and conduct
a question-and-answer period. To participate in the call, please dial
877-451-6152 (domestic) or 201-389-0879 (international). The live
webcast will be available at www.centurycommunities.com
in the Investors section. A replay of the conference call will be
available through June 2, 2019, by dialing 844-512-2921 (domestic) or
412-317-6671 (international) and entering the pass code 13689561. A
replay of the webcast will be available on the Company’s website through
June 2, 2019.

About Century Communities

Century Communities, Inc. (NYSE: CCS) is a top 10 national homebuilder.
Century is engaged in all aspects of homebuilding, including the
acquisition, entitlement and development of land, along with the
construction, innovative marketing and sale of quality homes designed to
appeal to a wide range of homebuyers. The Colorado-based Company sells
its Century Communities and Wade Jurney Homes in 15 states across the
West, Mountain, Texas and Southeast U.S. regions and offers title,
insurance and lending services in select markets through its Parkway
Title, IHL Insurance Agency, and Inspire Home Loan subsidiaries. To
learn more about Century Communities please visit www.centurycommunities.com.

Non-GAAP Financial Measures

In addition to the Company’s operating results presented in accordance
with generally accepted accounting principles (GAAP), this press release
includes the following non-GAAP financial measures: Adjusted Diluted
Earnings per Common Share (Adjusted Diluted EPS), Adjusted Homebuilding
Gross Margin, Adjusted EBITDA, and Ratio of Homebuilding Net Debt to Net
Capital. These non-GAAP financial measures should not be used as a
substitute for the Company’s operating results presented in accordance
with GAAP, and an analysis of any non-GAAP financial measure should be
used in conjunction with results presented in accordance with GAAP.
Please refer to the reconciliation of each of the above referenced
non-GAAP financial measures following the historical financial
information presented in this press release.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, and, as
such, may involve known and unknown risks, uncertainties and
assumptions. Forward-looking statements may be identified by the use of
words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,”
“continue,” “outlook,” and “project” and other similar expressions that
predict or indicate future events or trends or that are not statements
of historical matters. Forward-looking statements in this release
include the company’s operating and financial guidance for 2019.
Forward-looking statements should not be read as a guarantee of future
performance or results, and will not necessarily be accurate indications
of the times at, or by, which such performance or results will be
achieved. Forward-looking statements are based on historical information
available at the time the statements are made and are based on
management’s reasonable belief or expectations with respect to future
events, and are subject to risks and uncertainties, many of which are
beyond the Company’s control, that could cause actual performance or
results to differ materially from the belief or expectations expressed
in or suggested by the forward-looking statements. The following
important factors could cause actual results to differ materially from
those expressed in the forward-looking statement: adverse changes in
general economic conditions, ability to identify and acquire desirable
land, availability of financing, the effect of interest rate and tax
changes, reliance on contractors, and the other factors included in the
Company’s most recent Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q. Forward-looking statements speak only as
of the date on which they are made and the Company undertakes no
obligation to update any forward-looking statement to reflect future
events, developments or otherwise, except as may be required by
applicable law.

Century Communities, Inc. Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)
				Three months ended March 31,
				2019				2018
Revenues
Home sales revenues				$	523,302			$	394,831
Land sales and other revenues					1,355				1,459
					524,657				396,290
Financial services revenue					8,400				5,556
Total revenues					533,057				401,846
Homebuilding Cost of Revenues
Cost of home sales revenues					(433,757	)			(319,583	)
Cost of land sales and other revenues					(614	)			(877	)
					(434,371	)			(320,460	)
Financial services costs					(6,829	)			(4,395	)
Selling, general, and administrative					(68,936	)			(56,522	)
Acquisition expense					—				(173	)
Equity in income of unconsolidated subsidiaries					—				3,168
Other income (expense)					76				(357	)
Income before income tax expense					22,997				23,107
Income tax expense					(5,880	)			(3,088	)
Net income				$	17,117			$	20,019
Earnings per share:
Basic				$	0.57			$	0.68
Diluted				$	0.56			$	0.67
Weighted average common shares outstanding:
Basic					30,203,243				29,515,531
Diluted					30,444,276				29,833,729

Century Communities, Inc. Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share amounts)
		March 31,			December 31,
		2019			2018
Assets
Cash and cash equivalents		$	38,115		$	32,902
Cash held in escrow			24,664			24,344
Accounts receivable			12,436			13,464
Inventories			1,943,792			1,848,243
Mortgage loans held for sale			98,591			114,074
Prepaid expenses and other assets			123,248			138,717
Property and equipment, net			33,471			33,258
Deferred tax assets, net			13,591			13,763
Amortizable intangible assets, net			4,762			5,095
Goodwill			30,395			30,395
Total assets		$	2,323,065		$	2,254,255
Liabilities and stockholders’ equity
Liabilities:
Accounts payable		$	74,075		$	89,907
Accrued expenses and other liabilities			208,846			213,157
Notes payable			786,872			784,777
Revolving line of credit			287,000			202,500
Mortgage repurchase facilities			90,866			104,555
Total liabilities			1,447,659			1,394,896
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding			—			—
Common stock, $0.01 par value, 100,000,000 shares authorized, 30,304,081 and 30,154,791 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively			303			302
Additional paid-in capital			593,966			595,037
Retained earnings			281,137			264,020
Total stockholders’ equity			875,406			859,359
Total liabilities and stockholders’ equity		$	2,323,065		$	2,254,255

Century Communities, Inc.

Homebuilding Operational Data

Net New Home Contracts
					Three months ended
					March 31,
					2019			2018			% Change
West					203			216			(6.0)	%
Mountain					454			545			(16.7)	%
Texas					229			149			53.7	%
Southeast					345			468			(26.3)	%
Wade Jurney Homes					627			—			NM
Total					1,858			1,378			34.8	%
NM – Not meaningful

Home Deliveries (dollars in thousands)
		Three months ended March 31,
		2019					2018					% Change
		Homes		Average Sales Price			Homes		Average Sales Price			Homes			Average Sales Price
West		200		$	560.3		200		$	594.6		—	%		(5.8	)	%
Mountain		367		$	432.2		343		$	420.6		7.0	%		2.8		%
Texas		166		$	303.7		108		$	349.9		53.7	%		(13.2	)	%
Southeast		335		$	336.2		290		$	323.7		15.5	%		3.9		%
Wade Jurney Homes		595		$	150.5		—		$	—		NM			NM
Total / Weighted Average		1,663		$	314.7		941		$	419.6		76.7	%		(25.0	)	%
NM – Not meaningful

Century Communities, Inc. Homebuilding Operational Data

Selling Communities
Selling communities at period end				As of March 31,					Increase/(Decrease)
				2019		2018			Amount			% Change
West				21		14			7			50.0		%
Mountain				43		31			12			38.7		%
Texas				20		29			(9	)		(31.0	)	%
Southeast				41		51			(10	)		(19.6	)	%
Wade Jurney Homes				N/A		N/A			N/A			N/A
Total				125		125			—			—		%
NM – Not meaningful

Backlog (dollars in thousands)
		As of March 31,
		2019								2018								% Change
		Homes		Dollar Value			Average Sales Price			Homes		Dollar Value			Average Sales Price			Homes				Dollar Value				Average Sales Price
West		221		$	113,639		$	514.2		286		$	176,351		$	616.6		(22.7	)	%		(35.6	)	%		(16.6	)	%
Mountain		488			215,296		$	440.9		657			282,132		$	429.4		(25.7	)	%		(23.7	)	%		2.7		%
Texas		244			82,934		$	339.9		256			92,726		$	362.2		(4.7	)	%		(10.6	)	%		(6.2	)	%
Southeast		480			160,833		$	335.1		558			186,806		$	334.8		(14.0	)	%		(13.9	)	%		0.1		%
Wade Jurney Homes		943			145,743		$	154.6		—			—		$	—		NM				NM				NM
Total / Weighted Average		2,376		$	718,443		$	302.3		1,757		$	738,015		$	420.0		35.2		%		(2.7	)	%		(28.0	)	%
NM – Not meaningful

Lot Inventory
		As of March 31,
		2019						2018						% Change
		Owned		Controlled		Total		Owned		Controlled		Total		Owned				Controlled				Total
West		3,377		1,575		4,952		3,826		1,976		5,802		(11.7	)	%		(20.3	)	%		(14.7	)	%
Mountain		5,314		5,904		11,218		4,863		4,099		8,962		9.3		%		44.0		%		25.2		%
Texas		3,819		1,439		5,258		2,372		4,141		6,513		61.0		%		(65.2	)	%		(19.3	)	%
Southeast		4,853		2,231		7,084		4,840		4,216		9,056		0.3		%		(47.1	)	%		(21.8	)	%
Wade Jurney Homes		3,237		6,183		9,420		—		—		—		NM				NM				NM
Total		20,600		17,332		37,932		15,901		14,432		30,333		29.6		%		20.1		%		25.1		%
NM – Not meaningful

Century Communities, Inc.

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Adjusted Diluted Earnings per Common Share (Adjusted Diluted EPS) is a
non-GAAP financial measure that we believe is useful to management,
investors and other users of the Company’s financial information in
evaluating its operating results and understanding its operating trends
without the effect of certain non-recurring items. The Company believes
excluding certain non-recurring items provides more comparable
assessment of its financial results from period to period. Adjusted
Diluted EPS is calculated by excluding the effect of acquisition costs
and purchase price accounting for acquired work in process from the
calculation of reported EPS.

Adjusted Diluted Earnings Per Common Share
(in thousands, except share and per share amounts)
		Three months ended
		March 31,
		2019				2018
Numerator
Net income		$	17,117			$	20,019
Less: Undistributed earnings allocated to participating securities			—				(49	)
Net income allocable to common stockholders		$	17,117			$	19,970
Denominator
Weighted average common shares outstanding – basic			30,203,243				29,515,531
Dilutive effect of restricted stock units			241,033				318,198
Weighted average common shares outstanding – diluted			30,444,276				29,833,729
Earnings per share:
Basic		$	0.57			$	0.68
Diluted		$	0.56			$	0.67
Adjusted Earnings per share
Numerator
Income before income tax expense		$	22,997			$	23,107
Purchase price accounting for acquired work in process inventory			1,724				7,269
Acquisition expense			–				173
Adjusted income before income tax expense			24,721				30,549
Adjusted income tax expense(1)			(6,321	)			(8,096	)
Adjusted net income			18,400				22,453
Less: Adjusted undistributed earnings allocated to participating securities			—				(55	)
Adjusted net income allocable to common stockholders		$	18,400			$	22,398
Denominator – Diluted			30,444,276				29,833,729
Adjusted diluted earnings per share		$	0.60			$	0.75

(1)		The tax rate used in calculating adjusted net income for the three months ended March 31, 2019 was our GAAP tax rate of 25.6%. For the three months ended March 31, 2018 the tax rate utilized was 26.5% which is reflective of the Company’s GAAP tax rate for the applicable period adjusted for certain discrete items.

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)

Adjusted homebuilding gross margin excluding interest and purchase price
accounting for acquired work in process inventory is not a measurement
of financial performance under United States generally accepted
accounting principles; however, the Company’s management believes that
this information is meaningful as it isolates the impact that
indebtedness and acquisitions have on homebuilding gross margin and
permits the Company’s stockholders to make better comparisons with the
Company’s competitors, who adjust gross margins in a similar fashion.
This non-GAAP financial measure should not be used as a substitute for
the Company’s operating results. An analysis of any non-GAAP financial
measure should be used in conjunction with results presented in
accordance with GAAP.

Adjusted Homebuilding Gross Margin (in thousands)
		Three months ended March 31,
		2019				%				2018				%
Home sales revenues		$	523,302			100.0		%		$	394,831			100.0		%
Cost of home sales revenues			(433,757	)		(82.9	)	%			(319,583	)		(80.9	)	%
Gross margin from home sales			89,545			17.1		%			75,248			19.1		%
Add: Interest in cost of home sales revenues			12,587			2.4		%			8,959			2.3		%
Adjusted homebuilding gross margin excluding interest			102,132			19.5		%			84,207			21.3		%
Add: Purchase price accounting for acquired work in process inventory			1,724			0.3		%			7,269			1.8		%
Adjusted homebuilding gross margin excluding interest and purchase price accounting for acquired work in process inventory		$	103,856			19.8		%		$	91,476			23.2		%

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure we use as a supplemental
measure in evaluating operating performance. The Company defines
adjusted EBITDA as consolidated net income before (i) income tax
expense, (ii) interest in cost of home sales revenues, (iii) other
interest expense, (iv) depreciation and amortization expense, and (v)
adjustments resulting from the application of purchase accounting for
acquired work in process inventory related to business combinations. The
Company believes adjusted EBITDA provides an indicator of general
economic performance that is not affected by fluctuations in interest
rates or effective tax rates, levels of depreciation or amortization,
and items considered to be non-recurring. Accordingly, the Company’s
management believes that this measurement is useful for comparing
general operating performance from period to period. Adjusted EBITDA
should be considered in addition to, and not as a substitute for,
consolidated net income in accordance with GAAP as a measure of
performance. The Company’s presentation of adjusted EBITDA should not be
construed as an indication that its future results will be unaffected by
unusual or non-recurring items. Adjusted EBITDA is limited as an
analytical tool, and should not be considered in isolation or as a
substitute for analysis of the Company’s results as reported under GAAP.

(in thousands)
		Three months ended March 31,
		2019			2018			% Change
Net income		$	17,117		$	20,019			(14.5	)	%
Income tax expense			5,880			3,088			90.4		%
Interest in cost of home sales revenues			12,587			8,959			40.5		%
Interest expense (income)			15			2			650.0		%
Depreciation and amortization expense			3,074			2,726			12.8		%
EBITDA			38,673			34,794			11.1		%
Purchase price accounting for acquired work in process inventory			1,724			7,269			(76.3	)	%
Purchase price accounting for investment in unconsolidated subsidiaries outside basis			—			30			(100.0	)	%
Acquisition expense			—			173			(100.0	)	%
Adjusted EBITDA		$	40,397		$	42,266			(4.4	)	%

Century Communities, Inc. Reconciliation of Non-GAAP Financial Measures (Unaudited)

Ratio of Net Homebuilding Debt to Net Capital

The following table presents the Company’s ratio of net homebuilding
debt to net capital, which is a non-GAAP financial measure. The Company
calculates this by dividing net homebuilding debt (senior notes payable
and revolving line of credit less cash held in escrow and cash and cash
equivalents) by net capital (net homebuilding debt plus total
stockholders’ equity). The most directly comparable GAAP measure is the
ratio of debt to capital. The Company believes the ratio of net
homebuilding debt to net capital is a relevant and useful financial
measure to investors in understanding the leverage employed in its
operations and as an indicator of the Company’s ability to obtain
external financing.

(in thousands)
				March 31,				December 31,
				2019				2018
Total homebuilding debt				$	1,073,872			$	987,277
Total stockholders’ equity					875,406				859,359
Total capital				$	1,949,278			$	1,846,636
Debt to capital					55.1	%			53.5	%
Total homebuilding debt				$	1,073,872			$	987,277
Cash and cash equivalents					(38,115	)			(32,902	)
Cash held in escrow					(24,664	)			(24,344	)
Net debt					1,011,093				930,031
Total stockholders’ equity					875,406				859,359
Net capital				$	1,886,499			$	1,789,390
Net homebuilding debt to net capital					53.6	%			52.0	%

Contacts

Investor Relations:
303-268-8398
InvestorRelations@CenturyCommunities.com