Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 05, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Registrant Name | 'Century Communities, Inc. | ' |
Entity Central Index Key | '0001576940 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 21,504,704 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $167,723 | $109,998 |
Accounts receivable | 11,397 | 4,438 |
Inventories | 383,898 | 184,072 |
Prepaid expenses and other assets | 19,897 | 8,415 |
Property and equipment, net | 11,688 | 3,360 |
Amortizable intangible assets, net | 4,199 | 1,877 |
Goodwill | 13,972 | 479 |
Total Assets | 612,774 | 312,639 |
Liabilities: | ' | ' |
Accounts payable | 11,267 | 8,313 |
Accrued expenses and other liabilities | 36,822 | 30,358 |
Deferred tax liability, net | 265 | 912 |
Notes payable and revolving loan agreement | 201,245 | 1,500 |
Total liabilities | 249,599 | 41,083 |
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, 21,451,754 and 17,257,774 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 212 | 173 |
Additional paid in capital | 345,855 | 262,982 |
Retained Earnings | 17,108 | 8,401 |
Total stockholders' equity | 363,175 | 271,556 |
Total liabilities and stockholders' equity | $612,774 | $312,639 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Condensed Consolidated Balance Sheet [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 21,451,754 | 17,257,774 |
Common stock shares outstanding (in shares) | 21,451,754 | 17,257,774 |
CONDNESED_CONSOLIDATED_STATEME
CONDNESED CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statement of Operations [Abstract] | ' | ' | ' | ' |
Home sales revenues | $77,328 | $41,291 | $126,999 | $66,008 |
Cost of home sales revenues | 58,197 | 30,637 | 95,470 | 49,136 |
Gross margin from home sales | 19,131 | 10,654 | 31,529 | 16,872 |
Golf course and other revenue | 2,525 | ' | 2,525 | ' |
Cost of golf course and other revenue | 2,154 | ' | 2,154 | ' |
Gross margin from golf course and other | 371 | ' | 371 | ' |
Selling, general, and administrative (including related-party management fees of $0, $0, $50 and $200 for the three and six months ended June 30, 2014 and 2013, respectively) | 11,320 | 4,283 | 18,323 | 7,560 |
Operating income | 8,182 | 6,371 | 13,577 | 9,312 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 68 | 53 | 137 | 56 |
Interest expense | -11 | ' | -11 | ' |
Acquisition expense | -408 | ' | -803 | ' |
Other income | 129 | 92 | 257 | 176 |
Gain/(Loss) on disposition of assets | 89 | 9 | 89 | 9 |
Income before tax expense | 8,049 | 6,525 | 13,246 | 9,553 |
Income tax expense | 2,711 | 1,983 | 4,539 | 1,983 |
Deferred taxes on conversion to a corporation | ' | 627 | ' | 627 |
Consolidated net income of Century Communities, Inc. | 5,338 | 3,915 | 8,707 | 6,943 |
Net income attributable to the noncontrolling interests | ' | ' | ' | 52 |
Income attributable to common stockholders | 5,338 | 3,915 | 8,707 | 6,891 |
Earnings per share: | ' | ' | ' | ' |
Basic and Diluted | $0.30 | $0.32 | $0.50 | $0.51 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic and Diluted | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 |
Unaudited pro-forma net income, income attributable to common stockholders, and earnings per share (Note 16): | ' | ' | ' | ' |
Net Income | 5,338 | 6,065 | 9,625 | 7,441 |
Income attributable to common stockholders | $5,266 | $6,022 | $9,509 | $7,324 |
Basic and diluted earnings per share | $0.30 | $0.50 | $0.55 | $0.54 |
Unaudited pro-forma weighted average common shares (Note 16): | ' | ' | ' | ' |
Basic and diluted | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Condensed Consolidated Statement of Operations [Abstract] | ' | ' | ' | ' |
Related-party management fees | $0 | $50 | $0 | $200 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities: | ' | ' |
Consolidated net income of Century Communities, Inc. | $8,707 | $6,943 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,190 | 72 |
Stock compensation expense | 741 | 164 |
Deferred income tax provision | -647 | 179 |
Deferred provision upon conversion | ' | 627 |
Excess tax benefit on stock-based compensation | -32 | ' |
Gain on disposition of assets | -89 | -9 |
Changes in assets and liabilities: | ' | ' |
Cash held in trust | ' | 997 |
Accounts receivable | -6,615 | -4,079 |
Inventories | -58,110 | -48,268 |
Prepaid expenses and other assets | -2,826 | -1,700 |
Accounts payable | 880 | -1,499 |
Accrued expenses and other liabilities | 4,680 | 1,542 |
Payable to affiliates | ' | 5 |
Net cash used in operating activities | -52,121 | -45,026 |
Investing activities: | ' | ' |
Purchases of property and equipment | -31 | -235 |
Acquisition of LVLH | -165,379 | ' |
Net cash used in investing activities | -165,410 | -235 |
Financing activities: | ' | ' |
Borrowings under revolving credit facilities | 99,000 | 26,671 |
Payments on revolving credit facilities | -99,000 | -47,044 |
Proceeds from debt issuances | 198,478 | 3,595 |
Principal payments | -263 | -8,905 |
Debt issuance costs | -5,132 | ' |
Net proceeds from issuances of common stock | 82,141 | 223,760 |
Excess tax benefit on stock-based compensation | 32 | ' |
Contributions from members | ' | 1,500 |
Distributions to members | ' | -3,830 |
Distributions to noncontrolling interest | ' | -950 |
Net cash provided by financing activities | 275,256 | 194,797 |
Net increase in cash and cash equivalents | 57,725 | 149,536 |
Cash and cash equivalents, Beginning of period | 109,998 | 4,980 |
Cash and cash equivalents, End of period | 167,723 | 154,516 |
Non-cash investing and financing information | ' | ' |
Inventory contributed by members | ' | 3,708 |
Inventory distributed to noncontrolling interests | ' | 1,603 |
Conversion of subordinated debt obligation to equity | ' | $11,244 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Century Communities, Inc. a Delaware corporation (“we” or the “Company”) is engaged in all aspects of homebuilding, including land acquisition and development, entitlements, and the acquisition, development, construction, marketing, and sale of various single-family detached and attached residential home projects primarily in major metropolitan markets in Colorado, Austin, Texas, and as of April 1, 2014 with our acquisition of Las Vegas Land Holdings, LLC and its subsidiaries (“LVLH”) Las Vegas, Nevada. | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2013. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. | |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for GAAP. The pronouncement is effective for reporting period beginning after December 15, 2016. We are currently unable to determine the impact of adoption of ASU 2014-09 on the Company’s consolidated financial position or results of operations. | |
Initial_Public_Offering_and_Is
Initial Public Offering and Issuance of Senior Unsecured Notes | 6 Months Ended |
Jun. 30, 2014 | |
Initial Public Offering and Issuance of Senior Unsecured Notes [Abstract] | ' |
Initial Public Offering and Issuance of Senior Unsecured Notes | ' |
2. Initial Public Offering and Issuance of Senior Unsecured Notes | |
In May 2014, we completed a private offering of $200.0 million in aggregate principal amount of senior unsecured notes due 2022 in reliance on Rule 144A and Regulation S under the Securities Act of 1933, as amended (the “Securities Act”), where we received net proceeds of approximately $193.3 million. The notes carry a coupon of 6.875% per annum and were issued at a price equal to 99.239% of their principal amount. Concurrent with the issuance of the senior unsecured notes, we repaid the then outstanding balance including accrued interest of $99.2 million on our revolving loan agreement. | |
In June 2014, we completed our initial public offering of 4.0 million shares of common stock, $0.01 par value, at a per share price of $23.00, where we received net proceeds to the Company of approximately $82.1 million. | |
Reporting_Segments
Reporting Segments | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Reporting Segments [Abstract] | ' | ||||||||||||
Reporting Segments | ' | ||||||||||||
3. Reporting Segments | |||||||||||||
We have identified our Colorado, Texas and Nevada divisions as reportable segments. Our Corporate operations are a nonoperating segment, as it serves to support our Colorado, Texas and Nevada divisions through functions such as our executive, finance, treasury, human resources, and accounting departments. In addition, our Corporate operations include certain assets and income produced from residential rental property in Colorado. | |||||||||||||
The following tables summarize home sales revenues and income before tax expense by segment (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Home sales revenues | |||||||||||||
Colorado | $ | 48,347 | $ | 41,291 | $ | 84,198 | $ | 66,008 | |||||
Texas | 12,466 | — | 26,286 | — | |||||||||
Nevada | 16,515 | — | 16,515 | — | |||||||||
Total | $ | 77,328 | $ | 41,291 | $ | 126,999 | $ | 66,008 | |||||
Income before tax expense | |||||||||||||
Colorado | $ | 7,947 | $ | 7,400 | $ | 14,236 | $ | 11,116 | |||||
Texas | 878 | — | 2,115 | — | |||||||||
Nevada | 2,681 | — | 2,681 | — | |||||||||
Corporate | -3,457 | -875 | -5,786 | -1,563 | |||||||||
Total | $ | 8,049 | $ | 6,525 | $ | 13,246 | $ | 9,553 | |||||
We also earned $2.5 million in revenues from golf course and other operations in our Nevada segment during the three and six months ended June 30, 2014, respectively. | |||||||||||||
The following table summarizes total assets by segment (in thousands): | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Colorado | $ | 200,014 | $ | 167,948 | |||||||||
Texas | 61,053 | 27,386 | |||||||||||
Nevada | 174,612 | — | |||||||||||
Corporate | 177,095 | 117,305 | |||||||||||
Total | $ | 612,774 | $ | 312,639 | |||||||||
Corporate assets include cash and cash equivalents, prepaid insurance, deferred financing costs and certain property and equipment. | |||||||||||||
Inventories
Inventories | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
4. Inventories | |||||||
A summary of our inventories is as follows (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Homes under construction | $ | 145,314 | $ | 89,202 | |||
Land and land development | 232,734 | 92,050 | |||||
Capitalized interest | 5,850 | 2,820 | |||||
Total | $ | 383,898 | $ | 184,072 | |||
Prepaid_Expenses_and_Other_Ass
Prepaid Expenses and Other Assets | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Prepaid Expenses and Other Assets [Abstract] | ' | ||||||
Prepaid Expenses and Other Assets | ' | ||||||
5. Prepaid Expenses and Other Assets | |||||||
Prepaid expenses and other assets included the following (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Prepaid insurance | $ | 4,048 | $ | 1,260 | |||
Lot option and escrow deposits | 4,579 | 3,218 | |||||
Performance deposits | 3,121 | 1,899 | |||||
Deferred financing costs, net | 4,972 | — | |||||
Land held for sale | 1,252 | — | |||||
Other | 1,925 | 2,038 | |||||
Total | $ | 19,897 | $ | 8,415 | |||
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Accrued Expenses and Other Liabilities [Abstract] | ' | ||||||
Accrued Expenses and Other Liabilities | ' | ||||||
6. Accrued Expenses and Other Liabilities | |||||||
Accrued expenses and other liabilities included the following (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer and escrow deposits | $ | 3,228 | $ | 2,856 | |||
Warranty reserve | 1,546 | 1,150 | |||||
Accrued compensation costs | 4,946 | 5,511 | |||||
Land development and home construction accruals | 16,922 | 12,286 | |||||
Accrued interest | 2,139 | — | |||||
Income tax payable | 5,371 | 4,731 | |||||
Billings in excess of collections | 115 | 1,199 | |||||
Other | 2,555 | 2,625 | |||||
Total | $ | 36,822 | $ | 30,358 | |||
Warranty_Reserve
Warranty Reserve | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Warranty Reserve [Abstract] | ' | ||||||||||||
Warranty Reserve | ' | ||||||||||||
7. Warranty Reserve | |||||||||||||
Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the consolidated balance sheet, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through an internal lag development model that incorporates historical payment trends and adjust the amounts recorded if necessary. Changes in our warranty accrual for the three and six months ended June 30, 2014 and 2013 are detailed in the table below (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Accrued warranty reserve, beginning of period | $ | 1,230 | $ | 777 | $ | 1,150 | $ | 679 | |||||
Assumed warranty reserve of LVLH | 141 | — | 141 | — | |||||||||
Warranty expense provisions | 371 | 208 | 639 | 387 | |||||||||
Payments | -196 | -140 | -384 | -221 | |||||||||
Accrued warranty reserve, end of period | $ | 1,546 | $ | 845 | $ | 1,546 | $ | 845 | |||||
Notes_Payable_and_Revolving_Lo
Notes Payable and Revolving Loan Agreement | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Notes Payable and Revolving Loan Agreement [Abstract] | ' | ||||||
Notes Payable and Revolving Loan Agreement | ' | ||||||
8. Notes Payable and Revolving Loan Agreement | |||||||
Notes payable and revolving loan agreement included the following as of June 30, 2014 and December 31, 2013 (in thousands): | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.875% senior notes(A) | $ | 198,510 | $ | — | |||
Land development note(B) | 1,500 | 1,500 | |||||
Insurance premium note (C) | 1,137 | — | |||||
Capital lease obligations (D) | 98 | — | |||||
Revolving loan agreement(E) | — | — | |||||
Total | $ | 201,245 | $ | 1,500 | |||
(A)Due May 2022; interest only payments semi-annually in November and May at 6.875%. | |||||||
(B)Due April 2016; interest only payments monthly at 3.50%. | |||||||
(C)Due October 2015; monthly interest and principal payments at 2.65%. | |||||||
(D)Various equipment leases with maturities ranging from 2 to 4 years. | |||||||
(E)On October 18, 2013, we entered into a three-year revolving loan agreement with maximum borrowings of $100.0 million. Borrowings on the loan agreement bear interest at a daily rate of LIBOR plus 2.50% and there is an annual fee of $50.0 thousand. As of June 30, 2014, we had $0.8 million in outstanding letters of credit under the revolving loan agreement and total available capacity of $99.2 million. At June 30, 2014, we were in compliance with the various covenants. The revolving loan agreement terminated on July 1, 2014. | |||||||
Interest
Interest | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Interest [Abstract] | ' | ||||||||||||
Interest | ' | ||||||||||||
9. Interest | |||||||||||||
Interest is capitalized to inventories while the related communities are being actively developed and until homes are completed. As our qualifying assets exceeded our outstanding debt during the three and six months ended June 30, 2014 and 2013, we capitalized all interest costs incurred during these periods, other than interest incurred on capital leases associated with golf course equipment. | |||||||||||||
Our interest costs are as follows (in thousands): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Interest capitalized beginning of period | $ | 2,803 | $ | 3,536 | $ | 2,820 | $ | 3,243 | |||||
Interest capitalized during period | 3,499 | 292 | 3,558 | 873 | |||||||||
Less: capitalized interest in cost of sales | -452 | -516 | -528 | -804 | |||||||||
Interest capitalized end of period | $ | 5,850 | $ | 3,312 | $ | 5,850 | $ | 3,312 | |||||
Acquisition_of_Las_Vegas_Land_
Acquisition of Las Vegas Land Holdings, LLC | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Acquisition of Las Vegas Land Holdings, LLC [Abstract] | ' | |||
Acquisition of Las Vegas Land Holdings, LLC | ' | |||
10. Acquisition of Las Vegas Land Holdings, LLC | ||||
On April 1, 2014, one of the Company’s wholly-owned subsidiaries, Century Communities of Nevada, LLC, purchased substantially all of the assets of LVLH, a homebuilder with operations in Las Vegas, Nevada, for a purchase price of approximately $165 million. The acquired assets consisted of 1,761 lots within five single-family communities in the greater Las Vegas, Nevada metropolitan area. The 1,761 lots included 57 homes in backlog, 17 model homes and three custom lots. In addition, we acquired two fully operational golf courses, three custom home lots, and two one-acre commercial plots. As the acquired assets and processes have the ability to create outputs in the form of revenue from the sale of single family residences, we concluded that the acquisition represents a business combination. We incurred $0.8 million in acquisition-related costs, which are included in other income (expense) on the consolidated statement of operations. | ||||
The following table summarizes the preliminary amounts recognized as of the acquisition date: | ||||
Assets acquired and liabilities assumed | ||||
Accounts receivable | $ | 347 | ||
Inventories | 141,711 | |||
Prepaid expenses and other assets | 3,518 | |||
Property and equipment | 8,619 | |||
Amortizable intangible assets | 3,076 | |||
Goodwill | 13,495 | |||
Total assets | $ | 170,766 | ||
Accounts payable | $ | 2,074 | ||
Accrued expenses and other liabilities | 1,816 | |||
Notes payable and capital lease obligations | 1,497 | |||
Total liabilities | $ | 5,387 | ||
We determined the preliminary estimate of fair value for acquired inventories with the assistance of an appraiser primarily using a forecasted cash flow approach for the development, marketing, and sale of each community acquired. Significant assumptions included in our estimate include future per lot development costs, construction and overhead costs, mix of products sold in each community as well as average sales price, and absorption rates. | ||||
We determined the preliminary estimate of fair value for amortizable intangible assets, which includes a non-solicitation agreement, cell phone tower leases, and home plans, with the assistance of a third party valuation firm based primarily on a replacement cost approach. Our preliminary estimate of the fair value of the non-solicitation agreement, cell phone tower leases, and homes plans were $1.4 million, $1.4 million and $0.3 million respectively, which will be amortized over 2 years, 17 years, and 7 years, respectfully. In total, amortizable intangible assets will be amortized over a weighted average life of 9.3 years. | ||||
We determined that LVLH’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. | ||||
Goodwill includes the anticipated economic value of the acquired workforce. Approximately $10.0 million of goodwill is expected to be deductible for tax purposes. | ||||
As we have not completed our estimate of the fair value of the assets acquired and liabilities assumed, the final determinations of the values may result in adjustments to the amounts presented above and a corresponding adjustment to goodwill. | ||||
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
11. Income Taxes | |
On April 30, 2013, the Company reorganized from a Colorado limited liability company into a Delaware corporation, and accordingly, we are subject to federal and state income taxes subsequent to April 30, 2013. On the date of conversion, we recorded a net deferred tax liability of $0.6 million on our consolidated balance sheet, the effect of which was recorded as a deferred tax on conversion to a corporation in our consolidated statement of operations. | |
At the end of each interim period, we are required to estimate our annual effective tax rate for the fiscal year and use that rate to provide for income taxes for the current year-to-date reporting period. Accordingly, we recorded income tax expense of $2.7 million and $4.5 million for the three and six months ended June 30, 2014, based on our estimated annual effective tax rate of approximately 34%. | |
Fair_Value_Disclosures
Fair Value Disclosures | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||
12. Fair Value Disclosures | |||||||||||||||
ASC 820, Fair Value Measurement, defines fair value as the price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at measurement date and requires assets and liabilities carried at fair value to be classified and disclosed in the following three categories: | |||||||||||||||
Level 1—Quoted prices for identical instruments in active markets. | |||||||||||||||
Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date. | |||||||||||||||
Level 3—Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date. | |||||||||||||||
The following table presents carrying values and estimated fair values of financial instruments (in thousands): | |||||||||||||||
30-Jun-14 | December 31, 2013 | ||||||||||||||
Fair | Fair | ||||||||||||||
Hierarchy | Carrying | Value | Carrying | Value | |||||||||||
6.875% Senior Notes(1) | Level 2 | $ | 198,510 | $ | 200,454 | $ | — | $ | — | ||||||
Land development note(1) | Level 2 | $ | 1,500 | $ | 1,486 | $ | 1,500 | $ | 1,490 | ||||||
Insurance premium note (1) | Level 2 | $ | 1,137 | $ | 1,137 | $ | — | $ | — | ||||||
Capital lease obligations (1) | Level 2 | $ | 98 | $ | 98 | $ | — | $ | — | ||||||
Revolving loan agreement (1) | Level 2 | $ | — | $ | — | $ | — | $ | — | ||||||
(1) Estimated fair values as of June 30, 2014 and December 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. | |||||||||||||||
The carrying amount of cash and cash equivalents approximates fair value. Nonfinancial assets and liabilities include items such as inventory and long-lived assets that are measured at fair value when acquired and resulting from impairment, if deemed necessary. | |||||||||||||||
Stock_Based_Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2014 | |
Stock Based Compensation [Abstract] | ' |
Stock Based Compensation | ' |
13. Stock Based Compensation | |
The Company’s authorized capital stock consists of 100.0 million shares of common stock, $0.01 par value per share and 50.0 million shares of preferred stock, $0.01 par value. As of June 30, 2014 and December 31, 2013, there were 21.1 million and 17.1 million shares of common stock issued and outstanding, exclusive of the restricted common stock issued, respectively. The Company also has reserved a total of 1.8 million shares of common stock for issuance under our First Amended & Restated 2013 Long-Term Incentive Plan, including outstanding awards. During the three months ended June 30, 2014, the Company issued 0.2 million of restricted common stock awards with a grant date fair value of $21.40 per share. | |
As of June 30, 2014, 0.3 million shares of restricted common stock were unvested, and $6.3 million of unrecognized compensation costs is expected to be recognized over a weighted average period of 1.8 years. | |
During the three and six months ended June 30, 2014 and 2013, the Company recognized stock-based compensation expense of $0.4 million, $0.7 million, $0.2 million and $0.2 million respectively, which is included in selling, general, and administrative on the consolidated statement of operations. | |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
14. Earnings Per Share | |||||||||||||
We use the two-class method of calculating earnings per share (“EPS”) as our non-vested restricted stock awards have non-forfeitable rights to dividends, and accordingly represent a participating security. The two-class method is an earnings allocation method under which EPS is calculated for each class of common stock and participating security considering both dividends declared (or accumulated) and participation rights in undistributed earnings as if all such earnings had been distributed during the period. | |||||||||||||
For purposes of determining weighted average shares outstanding for the three and six months ended June 30, 2013, the 5.0 million shares that were issued to our outstanding membership interests upon conversion of the Company from a Colorado limited liability company to a Delaware corporation, are reflected as outstanding at the beginning of the period presented. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the three and six months ended June 30, 2014 and 2013 (in thousands except share and per share information): | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator | |||||||||||||
Net income | $ | 5,338 | $ | 3,915 | $ | 8,707 | $ | 6,943 | |||||
Less: Net income attributable to the noncontrolling interests | — | — | — | -52 | |||||||||
Less: Undistributed earnings allocated to participating securities | -72 | -28 | -105 | -61 | |||||||||
Numerator for basic and diluted EPS | $ | 5,266 | $ | 3,887 | $ | 8,602 | $ | 6,830 | |||||
Denominator | |||||||||||||
Basic and diluted earnings per share—weighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 | |||||||||
Basic and diluted EPS | $ | 0.30 | $ | 0.32 | $ | 0.50 | $ | 0.51 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
Letters of Credit and Performance Bonds | |
In the normal course of business, the Company posts letters of credit and performance bonds related to our land development performance obligations with local municipalities. As of June 30, 2014 and December 31, 2013, we had $23.0 million and $3.0 million, respectively, in letters of credit and performance bonds issued and outstanding. | |
Litigation | |
The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business, which consist primarily of construction defect claims. It is the opinion of management that if the claims have merit, parties other than the Company would be, at least in part, liable for the claims, and eventual outcome of these claims will not have a material adverse effect upon our consolidated financial condition, results of operations, or cash flows. When we believe that a loss is probable and estimable, we record a charge to selling, general, and administrative on our consolidated statement of operations for our estimated loss. | |
Pro_Forma_Financial_Informatio
Pro Forma Financial Information | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Pro Forma Financial Information [Abstract] | ' | |||||||||||
Pro Forma Financial Information | ' | |||||||||||
16. Pro forma Financial Information | ||||||||||||
Unaudited pro forma income before tax expense for the three and six months ended June 30, 2014 and 2013, gives effect to including the results of LVLH as of January 1, 2014 and 2013 respectively. Unaudited pro forma income before tax expense for the three and six months ended June 30, 2013 also gives effect to include the results of Jimmy Jacobs Homes, L.P. (“Jimmy Jacobs”) as of January 1, 2013. Unaudited pro forma income before tax expense adjusts the operating results of LVLH and Jimmy Jacobs to reflect the additional costs that would have been recorded assuming the fair value adjustments had been applied as of the beginning of the period presented. | ||||||||||||
Pro forma basic and diluted net income per share for the three and six months ended June 30, 2013 gives effect to the conversion of the Company’s members’ equity into common stock though the conversion had occurred as of the beginning of 2013. In addition, the pro forma amounts give effect to reflect income tax adjustments as if the Company were a taxable entity as of the beginning of 2013. The pro forma income tax adjustment reflects that the Company would have filed a consolidated tax return as a corporation reflecting a consolidated net income for the periods presented (in thousands, except share and per share information): | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Revenues | $ | 77,328 | $ | 77,990 | $ | 147,133 | $ | 126,930 | ||||
Income before tax expense | 8,049 | 9,330 | 14,584 | 11,447 | ||||||||
Tax expense | 2,711 | 3,265 | 4,959 | 4,006 | ||||||||
Consolidated net income of Century Communities, Inc. | 5,338 | 6,065 | 9,625 | 7,441 | ||||||||
Less: Net income attributable to the noncontrolling interest | — | — | — | -52 | ||||||||
Less: Undistributed earnings allocated to participating securities | -72 | -43 | -116 | -65 | ||||||||
Numerator for basic and diluted pro forma EPS | $ | 5,266 | $ | 6,022 | $ | 9,509 | $ | 7,324 | ||||
Pro forma weighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 | ||||||||
Pro forma basic and diluted EPS | $ | 0.30 | $ | 0.50 | $ | 0.55 | $ | 0.54 | ||||
Subsequent_Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
17. Subsequent Events | |
On August 12, 2014 we purchased substantially all of the operations and assets of Grand View Builders in Houston, Texas for a purchase price of approximately $14 million and earnout payments based on performance over the next two years. | |
Our initial accounting for this business combination is incomplete as the valuation of the acquired assets and assumed liabilities is still in process. Accordingly, certain disclosures required by ASC 805-10-50 cannot be made at this time. | |
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2014 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
Century Communities, Inc. a Delaware corporation (“we” or the “Company”) is engaged in all aspects of homebuilding, including land acquisition and development, entitlements, and the acquisition, development, construction, marketing, and sale of various single-family detached and attached residential home projects primarily in major metropolitan markets in Colorado, Austin, Texas, and as of April 1, 2014 with our acquisition of Las Vegas Land Holdings, LLC and its subsidiaries (“LVLH”) Las Vegas, Nevada. | |
The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by GAAP and should be read in conjunction with the consolidated financial statements for the year ended December 31, 2013. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. | |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers.” The pronouncement was issued to clarify the principles for recognizing revenue and to develop a common revenue standard and disclosure requirements for GAAP. The pronouncement is effective for reporting period beginning after December 15, 2016. We are currently unable to determine the impact of adoption of ASU 2014-09 on the Company’s consolidated financial position or results of operations. | |
Reporting_Segments_Tables
Reporting Segments (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Reporting Segments [Abstract] | ' | ||||||||||||
Schedule of Home Sale Revenues and Pretax Income by Segment | ' | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Home sales revenues | |||||||||||||
Colorado | $ | 48,347 | $ | 41,291 | $ | 84,198 | $ | 66,008 | |||||
Texas | 12,466 | — | 26,286 | — | |||||||||
Nevada | 16,515 | — | 16,515 | — | |||||||||
Total | $ | 77,328 | $ | 41,291 | $ | 126,999 | $ | 66,008 | |||||
Income before tax expense | |||||||||||||
Colorado | $ | 7,947 | $ | 7,400 | $ | 14,236 | $ | 11,116 | |||||
Texas | 878 | — | 2,115 | — | |||||||||
Nevada | 2,681 | — | 2,681 | — | |||||||||
Corporate | -3,457 | -875 | -5,786 | -1,563 | |||||||||
Total | $ | 8,049 | $ | 6,525 | $ | 13,246 | $ | 9,553 | |||||
Schedule of Total Assets by Segment | ' | ||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Colorado | $ | 200,014 | $ | 167,948 | |||||||||
Texas | 61,053 | 27,386 | |||||||||||
Nevada | 174,612 | — | |||||||||||
Corporate | 177,095 | 117,305 | |||||||||||
Total | $ | 612,774 | $ | 312,639 | |||||||||
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule of Inventories | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Homes under construction | $ | 145,314 | $ | 89,202 | |||
Land and land development | 232,734 | 92,050 | |||||
Capitalized interest | 5,850 | 2,820 | |||||
Total | $ | 383,898 | $ | 184,072 | |||
Prepaid_Expenses_and_Other_Ass1
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Prepaid Expenses and Other Assets [Abstract] | ' | ||||||
Schedule of Prepaid Expenses and Other Assets | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Prepaid insurance | $ | 4,048 | $ | 1,260 | |||
Lot option and escrow deposits | 4,579 | 3,218 | |||||
Performance deposits | 3,121 | 1,899 | |||||
Deferred financing costs, net | 4,972 | — | |||||
Land held for sale | 1,252 | — | |||||
Other | 1,925 | 2,038 | |||||
Total | $ | 19,897 | $ | 8,415 | |||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Accrued Expenses and Other Liabilities [Abstract] | ' | ||||||
Schedule of Accrued Expenses and Other Liabilities | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer and escrow deposits | $ | 3,228 | $ | 2,856 | |||
Warranty reserve | 1,546 | 1,150 | |||||
Accrued compensation costs | 4,946 | 5,511 | |||||
Land development and home construction accruals | 16,922 | 12,286 | |||||
Accrued interest | 2,139 | — | |||||
Income tax payable | 5,371 | 4,731 | |||||
Billings in excess of collections | 115 | 1,199 | |||||
Other | 2,555 | 2,625 | |||||
Total | $ | 36,822 | $ | 30,358 | |||
Warranty_Reserve_Tables
Warranty Reserve (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Warranty Reserve [Abstract] | ' | ||||||||||||
Schedule of Changes in Warranty Accrual | ' | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Accrued warranty reserve, beginning of period | $ | 1,230 | $ | 777 | $ | 1,150 | $ | 679 | |||||
Assumed warranty reserve of LVLH | 141 | — | 141 | — | |||||||||
Warranty expense provisions | 371 | 208 | 639 | 387 | |||||||||
Payments | -196 | -140 | -384 | -221 | |||||||||
Accrued warranty reserve, end of period | $ | 1,546 | $ | 845 | $ | 1,546 | $ | 845 | |||||
Notes_Payable_and_Revolving_Lo1
Notes Payable and Revolving Loan Agreement (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Notes Payable and Revolving Loan Agreement [Abstract] | ' | ||||||
Schedule of Notes Payable and Revolving Loan Agreement | ' | ||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.875% senior notes(A) | $ | 198,510 | $ | — | |||
Land development note(B) | 1,500 | 1,500 | |||||
Insurance premium note (C) | 1,137 | — | |||||
Capital lease obligations (D) | 98 | — | |||||
Revolving loan agreement(E) | — | — | |||||
Total | $ | 201,245 | $ | 1,500 | |||
(A)Due May 2022; interest only payments semi-annually in November and May at 6.875%. | |||||||
(B)Due April 2016; interest only payments monthly at 3.50%. | |||||||
(C)Due October 2015; monthly interest and principal payments at 2.65%. | |||||||
(D)Various equipment leases with maturities ranging from 2 to 4 years. | |||||||
(E)On October 18, 2013, we entered into a three-year revolving loan agreement with maximum borrowings of $100.0 million. Borrowings on the loan agreement bear interest at a daily rate of LIBOR plus 2.50% and there is an annual fee of $50.0 thousand. As of June 30, 2014, we had $0.8 million in outstanding letters of credit under the revolving loan agreement and total available capacity of $99.2 million. At June 30, 2014, we were in compliance with the various covenants. The revolving loan agreement terminated on July 1, 2014. | |||||||
Interest_Tables
Interest (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Interest [Abstract] | ' | ||||||||||||
Schedule of Interest Costs | ' | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Interest capitalized beginning of period | $ | 2,803 | $ | 3,536 | $ | 2,820 | $ | 3,243 | |||||
Interest capitalized during period | 3,499 | 292 | 3,558 | 873 | |||||||||
Less: capitalized interest in cost of sales | -452 | -516 | -528 | -804 | |||||||||
Interest capitalized end of period | $ | 5,850 | $ | 3,312 | $ | 5,850 | $ | 3,312 | |||||
Acquisition_of_Las_Vegas_Land_1
Acquisition of Las Vegas Land Holdings, LLC (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Acquisition of Las Vegas Land Holdings, LLC [Abstract] | ' | |||
Schedule of Preliminary Recognized Assets Acquired and Liabilities Assumed | ' | |||
Assets acquired and liabilities assumed | ||||
Accounts receivable | $ | 347 | ||
Inventories | 141,711 | |||
Prepaid expenses and other assets | 3,518 | |||
Property and equipment | 8,619 | |||
Amortizable intangible assets | 3,076 | |||
Goodwill | 13,495 | |||
Total assets | $ | 170,766 | ||
Accounts payable | $ | 2,074 | ||
Accrued expenses and other liabilities | 1,816 | |||
Notes payable and capital lease obligations | 1,497 | |||
Total liabilities | $ | 5,387 | ||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 6 Months Ended | ||||||||||||||
Jun. 30, 2014 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||
30-Jun-14 | December 31, 2013 | ||||||||||||||
Fair | Fair | ||||||||||||||
Hierarchy | Carrying | Value | Carrying | Value | |||||||||||
6.875% Senior Notes(1) | Level 2 | $ | 198,510 | $ | 200,454 | $ | — | $ | — | ||||||
Land development note(1) | Level 2 | $ | 1,500 | $ | 1,486 | $ | 1,500 | $ | 1,490 | ||||||
Insurance premium note (1) | Level 2 | $ | 1,137 | $ | 1,137 | $ | — | $ | — | ||||||
Capital lease obligations (1) | Level 2 | $ | 98 | $ | 98 | $ | — | $ | — | ||||||
Revolving loan agreement (1) | Level 2 | $ | — | $ | — | $ | — | $ | — | ||||||
(1) Estimated fair values as of June 30, 2014 and December 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
June 30, | June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator | |||||||||||||
Net income | $ | 5,338 | $ | 3,915 | $ | 8,707 | $ | 6,943 | |||||
Less: Net income attributable to the noncontrolling interests | — | — | — | -52 | |||||||||
Less: Undistributed earnings allocated to participating securities | -72 | -28 | -105 | -61 | |||||||||
Numerator for basic and diluted EPS | $ | 5,266 | $ | 3,887 | $ | 8,602 | $ | 6,830 | |||||
Denominator | |||||||||||||
Basic and diluted earnings per share—weighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 | |||||||||
Basic and diluted EPS | $ | 0.30 | $ | 0.32 | $ | 0.50 | $ | 0.51 | |||||
Pro_Forma_Financial_Informatio1
Pro Forma Financial Information (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Pro Forma Financial Information [Abstract] | ' | |||||||||||
Schedule of Pro Forma Information | ' | |||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Revenues | $ | 77,328 | $ | 77,990 | $ | 147,133 | $ | 126,930 | ||||
Income before tax expense | 8,049 | 9,330 | 14,584 | 11,447 | ||||||||
Tax expense | 2,711 | 3,265 | 4,959 | 4,006 | ||||||||
Consolidated net income of Century Communities, Inc. | 5,338 | 6,065 | 9,625 | 7,441 | ||||||||
Less: Net income attributable to the noncontrolling interest | — | — | — | -52 | ||||||||
Less: Undistributed earnings allocated to participating securities | -72 | -43 | -116 | -65 | ||||||||
Numerator for basic and diluted pro forma EPS | $ | 5,266 | $ | 6,022 | $ | 9,509 | $ | 7,324 | ||||
Pro forma weighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 | ||||||||
Pro forma basic and diluted EPS | $ | 0.30 | $ | 0.50 | $ | 0.55 | $ | 0.54 | ||||
Initial_Public_Offering_and_Is1
Initial Public Offering and Issuance of Senior Unsecured Notes (Details) (USD $) | 6 Months Ended | 1 Months Ended | ||||
Share data in Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2014 |
Common Stock [Member] | Senior unsecured note [Member] | Senior unsecured note [Member] | ||||
IPO [Member] | ||||||
Initial Public Offering and Issuance of Senior Unsecured Notes [Line Items] | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | $200,000,000 | ' |
Proceeds from issuance of debt | ' | ' | ' | ' | 193,300,000 | ' |
Coupon rate | ' | ' | ' | ' | 6.88% | 6.88% |
Discount rate | ' | ' | ' | ' | 99.24% | ' |
Payment of revolving loan agreement | ' | ' | ' | ' | 99,200,000 | ' |
Shares issued | ' | ' | ' | 4 | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 | $0.01 | ' | ' |
Stock price per share | ' | ' | ' | $23 | ' | ' |
Net proceeds from issuances of common stock | $82,141,000 | $223,760,000 | ' | $82,100,000 | ' | ' |
Reporting_Segments_Schedule_of
Reporting Segments (Schedule of Segment Reporting Information) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Home sales revenues | $77,328 | $41,291 | $126,999 | $66,008 | ' |
Total income before taxes | 8,049 | 6,525 | 13,246 | 9,553 | ' |
Total assets | 612,774 | ' | 612,774 | ' | 312,639 |
Golf course and other revenue | 2,525 | ' | 2,525 | ' | ' |
Colorado [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Home sales revenues | 48,347 | 41,291 | 84,198 | 66,008 | ' |
Total income before taxes | 7,947 | 7,400 | 14,236 | 11,116 | ' |
Total assets | 200,014 | ' | 200,014 | ' | 167,948 |
Texas [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Home sales revenues | 12,466 | ' | 26,286 | ' | ' |
Total income before taxes | 878 | ' | 2,115 | ' | ' |
Total assets | 61,053 | ' | 61,053 | ' | 27,386 |
Nevada [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Home sales revenues | 16,515 | ' | 16,515 | ' | ' |
Total income before taxes | 2,681 | ' | 2,681 | ' | ' |
Total assets | 174,612 | ' | 174,612 | ' | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total income before taxes | -3,457 | -875 | -5,786 | -1,563 | ' |
Total assets | $177,095 | ' | $177,095 | ' | $117,305 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Inventories [Abstract] | ' | ' | ' | ' | ' | ' |
Homes under construction | $145,314 | ' | $89,202 | ' | ' | ' |
Land and land development | 232,734 | ' | 92,050 | ' | ' | ' |
Capitalized interest | 5,850 | 2,803 | 2,820 | 3,312 | 3,536 | 3,243 |
Total | $383,898 | ' | $184,072 | ' | ' | ' |
Prepaid_Expenses_and_Other_Ass2
Prepaid Expenses and Other Assets (Schedule of Prepaid Expenses and Other Assets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Assets [Abstract] | ' | ' |
Prepaid insurance | $4,048 | $1,260 |
Lot option and escrow deposits | 4,579 | 3,218 |
Performance deposits | 3,121 | 1,899 |
Deferred financing costs, net | 4,972 | ' |
Land held for sale | 1,252 | ' |
Other | 1,925 | 2,038 |
Total | $19,897 | $8,415 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Schedule of Accrued and Other Current Liabilities) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Accrued Expenses and Other Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Customer and escrow deposits | $3,228 | ' | $2,856 | ' | ' | ' |
Warranty reserve | 1,546 | 1,230 | 1,150 | 845 | 777 | 679 |
Accrued compensation costs | 4,946 | ' | 5,511 | ' | ' | ' |
Land development and home construction accruals | 16,922 | ' | 12,286 | ' | ' | ' |
Accrued interest | 2,139 | ' | ' | ' | ' | ' |
Income tax payable | 5,371 | ' | 4,731 | ' | ' | ' |
Billings in excess of collections | 115 | ' | 1,199 | ' | ' | ' |
Other | 2,555 | ' | 2,625 | ' | ' | ' |
Total | $36,822 | ' | $30,358 | ' | ' | ' |
Warranty_Reserve_Schedule_of_C
Warranty Reserve (Schedule of Changes in Warranty Accrual) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Warranty Reserve [Abstract] | ' | ' | ' | ' |
Accrued warranty reserve, beginning of period | $1,230 | $777 | $1,150 | $679 |
Assumed warranty reserve of LVLH | 141 | ' | 141 | ' |
Warranty expense provisions | 371 | 208 | 639 | 387 |
Payments | -196 | -140 | -384 | -221 |
Accrued warranty reserve, end of period | $1,546 | $845 | $1,546 | $845 |
Notes_Payable_and_Revolving_Lo2
Notes Payable and Revolving Loan Agreement (Schedule of Notes Payable And Revolving Line Of Credit) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | 31-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | ||
Senior unsecured note [Member] | Senior unsecured note [Member] | Land development Note [Member] | Insurance Premium Note [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Line of Credit [Member] | |||||
Minimum | Maximum | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
6.875% senior notes | $198,510,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | |
Land development note | 1,500,000 | [2] | 1,500,000 | [2] | ' | ' | ' | ' | ' | ' | ' |
Insurance premium note | 1,137,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | |
Capital lease obligations | 98,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | |
Revolving loan agreement | ' | [5] | ' | [5] | ' | ' | ' | ' | ' | ' | ' |
Total | 201,245,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ||
Maturity date | ' | ' | '2022-05 | ' | '2016-04 | '2015-10 | ' | ' | ' | ||
Note payable, interest rate | ' | ' | 6.88% | 6.88% | 3.50% | 2.65% | ' | ' | ' | ||
Line of credit facility, initiation date | ' | ' | ' | ' | ' | ' | ' | ' | 18-Oct-13 | ||
Debt, term | ' | ' | ' | ' | ' | ' | '2 years | '4 years | '3 years | ||
Line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ||
Line of credit facility, reference rate | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ||
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ||
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | ||
Line of credit facility, available capacity | ' | ' | ' | ' | ' | ' | ' | ' | 99,200,000 | ||
Line of credit facility, annual fee | ' | ' | ' | ' | ' | ' | ' | ' | $50,000 | ||
Line of credit facility, termination date | ' | ' | ' | ' | ' | ' | ' | ' | 1-Jul-14 | ||
[1] | Due May 2022; interest only payments semi-annually in November and May at 6.875% | ||||||||||
[2] | Due AprilB 2016; interest only payments monthly at 3.50%. | ||||||||||
[3] | Due October 2015; monthly interest and principal payments at 2.65% | ||||||||||
[4] | Various equipment leases with maturities ranging from 2 to 4 years. | ||||||||||
[5] | On OctoberB 18, 2013, we entered into a three-year revolving loan agreement with maximum borrowings of $100.0B million. Borrowings on the loan agreement bear interest at a daily rate of LIBOR plus 2.50% and there is an annual fee of $50.0B thousand. As of JuneB 30, 2014, we had $0.8B million in outstanding letters of credit under the revolving loan agreement and total available capacity of $99.2B million. At JuneB 30, 2014, we were in compliance with the various covenants. The revolving loan agreement terminated on July 1, 2014. |
Interest_Details
Interest (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest [Abstract] | ' | ' | ' | ' |
Interest capitalized beginning of period | $2,803 | $3,536 | $2,820 | $3,243 |
Interest capitalized during period | 3,499 | 292 | 3,558 | 873 |
Less: capitalized interest in cost of sales | -452 | -516 | -528 | -804 |
Interest capitalized end of period | $5,850 | $3,312 | $5,850 | $3,312 |
Acquisition_of_Las_Vegas_Land_2
Acquisition of Las Vegas Land Holdings, LLC (Narrative) (Details) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Apr. 01, 2014 | |
item | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Purchase price | $165,379,000 | ' |
Number of lots | ' | 1,761 |
Number of homes in backlog | ' | 57 |
Number of model homes | ' | 17 |
Number of custom home lots | ' | 3 |
Number of golf courses | ' | 2 |
Number of commercial plots | ' | 2 |
Acquisition costs | ' | 800,000 |
Weighted average life of intangible assets | '9 years 3 months 18 days | ' |
Goodwill amount expected to be tax deductible | 10,000,000 | ' |
Non-solicitation agreement [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary estimate of fair value | 1,400,000 | ' |
Amortization period | '2 years | ' |
Cell phone tower leases [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary estimate of fair value | 1,400,000 | ' |
Amortization period | '17 years | ' |
Home plans [Member] | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Preliminary estimate of fair value | $300,000 | ' |
Amortization period | '7 years | ' |
Acquisition_of_Las_Vegas_Land_3
Acquisition of Las Vegas Land Holdings, LLC (Schedule of Assets and Liabilities Acquired) (Details) (USD $) | Jun. 30, 2014 | Apr. 01, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Assets acquired and liabilities assumed | ' | ' | ' |
Accounts receivable | ' | $347 | ' |
Inventories | ' | 141,711 | ' |
Prepaid expenses and other assets | ' | 3,518 | ' |
Property and equipment | ' | 8,619 | ' |
Amortizable intangible assets | ' | 3,076 | ' |
Goodwill | 13,972 | 13,495 | 479 |
Total assets | ' | 170,766 | ' |
Accounts payable | ' | 2,074 | ' |
Accrued expenses and other liabilities | ' | 1,816 | ' |
Notes payable and capital lease obligations | ' | 1,497 | ' |
Total liabilities | ' | $5,387 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2013 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' |
Income tax expense | $2,711 | $1,983 | $4,539 | $1,983 | ' | ' |
Effective tax rate | ' | ' | 34.00% | ' | ' | ' |
Deferred Tax Liabilities, Net | $265 | ' | $265 | ' | $912 | $600 |
Fair_Value_Disclosures_Schedul
Fair Value Disclosures (Schedule of Carrying Values and Estimated Fair Values of Financial Instruments) (Details) (Level 2 [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Carrying Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
6.875% Senior Notes | $198,510 | [1] | ' | |
Land development note | 1,500 | [1] | 1,500 | [1] |
Insurance premium note | 1,137 | [1] | ' | |
Capital lease obligations | 98 | [1] | ' | |
Revolving loan agreement | ' | [1] | ' | [1] |
Fair Value [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
6.875% Senior Notes | 200,454 | [1] | ' | |
Land development note | 1,486 | [1] | 1,490 | [1] |
Insurance premium note | 1,137 | [1] | ' | |
Capital lease obligations | 98 | [1] | ' | |
Revolving loan agreement | ' | [1] | ' | [1] |
[1] | Estimated fair values as of JuneB 30, 2014 and DecemberB 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | 100,000,000 | ' | 100,000,000 | ' | 100,000,000 |
Common Stock, Par or Stated Value Per Share | $0.01 | ' | $0.01 | ' | $0.01 |
Common Stock, Shares, Issued | 21,451,754 | ' | 21,451,754 | ' | 17,257,774 |
Common Stock, Shares, Outstanding | 21,451,754 | ' | 21,451,754 | ' | 17,257,774 |
Preferred Stock, Shares Authorized | 50,000,000 | ' | 50,000,000 | ' | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share | $0.01 | ' | $0.01 | ' | $0.01 |
Shares of common stock for stock award issuances | 1,800,000 | ' | 1,800,000 | ' | ' |
Compensation expense | $0.40 | $0.20 | $0.70 | $0.20 | ' |
Compensation not yet recognized | $6.30 | ' | $6.30 | ' | ' |
Compensation not yet recognized, period for recognition | ' | ' | '1 year 9 months 18 days | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Restricted stock issued | 200,000 | ' | ' | ' | ' |
Grant date fair value | $21.40 | ' | $21.40 | ' | ' |
Unvested shares of restricted stock | 300,000 | ' | 300,000 | ' | ' |
Common Stock Excluding Restricted Stock [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common Stock, Shares, Issued | 21,100,000 | ' | 21,100,000 | ' | 17,100,000 |
Common Stock, Shares, Outstanding | 21,100,000 | ' | 21,100,000 | ' | 17,100,000 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator | ' | ' | ' | ' |
Net income | $5,338 | $3,915 | $8,707 | $6,943 |
Less: Net income attributable to the noncontrolling interest | ' | ' | ' | -52 |
Less: Undistributed earnings allocated to participating securities | -72 | -28 | -105 | -61 |
Numerator for basic and diluted EPS | $5,266 | $3,887 | $8,602 | $6,830 |
Denominator | ' | ' | ' | ' |
Basic and diluted earnings per sharebweighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 |
Basic and diluted EPS | $0.30 | $0.32 | $0.50 | $0.51 |
Shares issued to outstanding membership interests upon conversion | 5,000,000 | ' | 5,000,000 | ' |
Commitment_and_Contingencies_D
Commitment and Contingencies (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Commitments and Contingencies [Abstract] | ' | ' |
Outstanding letters of credit and performance bonds | $23 | $3 |
Pro_Forma_Financial_Informatio2
Pro Forma Financial Information (Schedule of Pro Forma Information) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pro Forma Financial Information [Abstract] | ' | ' | ' | ' |
Revenues | $77,328 | $77,990 | $147,133 | $126,930 |
Income before tax expense | 8,049 | 9,330 | 14,584 | 11,447 |
Tax expense | 2,711 | 3,265 | 4,959 | 4,006 |
Consolidated net income of Century Communities, Inc. | 5,338 | 6,065 | 9,625 | 7,441 |
Less: Net income attributable to the noncontrolling interest | ' | ' | ' | -52 |
Less: Undistributed earnings allocated to participating securities | -72 | -43 | -116 | -65 |
Numerator for basic and diluted pro forma EPS | $5,266 | $6,022 | $9,509 | $7,324 |
Pro forma weighted average shares | 17,674,868 | 12,165,385 | 17,376,591 | 13,472,514 |
Pro forma basic and diluted EPS | $0.30 | $0.50 | $0.55 | $0.54 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 6 Months Ended | 0 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Aug. 12, 2014 |
Grand View Builders Inc. [Member] | ||
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ' | ' |
Purchase price | $165,379 | $14,000 |