Century Communities

2017 Performance Final Grade: 72.38/100
2016 Final Grade:71.0/100
B-/B-

22.86/40

Change YoY
Net debt-to-capital 45.5% -30bps
Pretax home building income
(in millions)
$67.9 -4.9%
Total SG&A/Total revenue 13% --
Total SG&A
(in millions)
$185 51.3%
Return on invested capital 4.1% -160bps
Return on equity 8.3% -290bps
Total shareholder return 46.4% --
EPS $2.06 -12%

18.57/20

Change YoY
Community count 119 +30
Share of lots optioned to total controlled 48.8% -7.3%

12.38/20

Change YoY
Home building gross margins 18% -150bps
Sales per month to break even
(per community)
2.02 --
Revenue per employee
(in millions)
$1.4 -20%
Change YoY
Closings 3,640 28.80%
Sales velocity
(per community per month)
2.7 -0.3%
Unit backlog 1,320 76.2%


Total revenue (in millions):$1,423
HB revenue (in millions): $1,405
Debt per share: $31.97
Equity per basic share: $30.28
HB pretax margin: 4.8%
Backlog value (in millions): $572.9
Inventory (in millions):$1,390.4
Lot supply (in years): 8.5

2017 was about growth for Century (NYSE: CCS). It expanded its geographic footprint into a variety of new markets through the completion of its merger with UCP and the bolt-on acquisition of the assets of Sundquist Homes in Seattle, along with the continued ramp up of its Charlotte and Salt Lake City greenfield operations. Century has expanded home sales revenue, pre-tax income, and adjusted EBITDA each by a factor of over 11 times since it began its transformation in 2012.