Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 10, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 | ' | 21,483,528 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $101,704 | $109,998 |
Accounts receivable | 16,105 | 4,438 |
Inventories | 461,566 | 184,072 |
Prepaid expenses and other assets | 27,502 | 8,415 |
Deferred tax asset. net | 719 | ' |
Property and equipment, net | 11,848 | 3,360 |
Amortizable intangible assets, net | 5,900 | 1,877 |
Goodwill | 13,249 | 479 |
Total Assets | 638,593 | 312,639 |
Liabilities: | ' | ' |
Accounts payable | 10,102 | 8,313 |
Accrued expenses and other liabilities | 50,674 | 30,358 |
Deferred tax liability, net | ' | 912 |
Notes payable and revolving loan agreement | 210,048 | 1,500 |
Total liabilities | 270,824 | 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, 21,485,257 and 17,257,774 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 213 | 173 |
Additional paid in capital | 346,321 | 262,982 |
Retained Earnings | 21,235 | 8,401 |
Total stockholders' equity | 367,769 | 271,556 |
Total liabilities and stockholders' equity | $638,593 | $312,639 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Sep. 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) | 21,485,257 | 17,257,774 |
Common stock shares outstanding (in shares) | 21,485,257 | 17,257,774 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Consolidated Statement of Operations [Abstract] | ' | ' | ' | ' |
Home sales revenues | $90,735 | $41,494 | $217,734 | $107,502 |
Cost of home sales revenues | 70,896 | 31,948 | 166,367 | 81,084 |
Gross margin from home sales | 19,839 | 9,546 | 51,367 | 26,418 |
Golf course and other revenue | 1,226 | ' | 3,750 | ' |
Cost of golf course and other revenue | 2,175 | ' | 4,329 | ' |
Gross margin from golf course and other | -949 | ' | -579 | ' |
Selling, general, and administrative (including related-party management fees of $150 and $450 for the three and nine months ended September 30, 2013, respectively) | 12,584 | 5,682 | 30,906 | 13,244 |
Operating income | 6,306 | 3,864 | 19,882 | 13,174 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 130 | 98 | 267 | 152 |
Interest expense | -2 | ' | -13 | ' |
Acquisition expense | -119 | -329 | -923 | -329 |
Other income | 327 | 151 | 585 | 332 |
Gain/(Loss) on disposition of assets | 55 | ' | 145 | 9 |
Income before tax expense | 6,697 | 3,784 | 19,943 | 13,338 |
Income tax expense | 2,570 | 1,346 | 7,109 | 3,330 |
Deferred taxes on conversion to a corporation | ' | ' | ' | 627 |
Consolidated net income of Century Communities, Inc. | 4,127 | 2,438 | 12,834 | 9,381 |
Net income attributable to the noncontrolling interests | ' | ' | ' | 52 |
Income attributable to common stockholders | 4,127 | 2,438 | 12,834 | 9,329 |
Earnings per share: | ' | ' | ' | ' |
Basic and Diluted | $0.19 | $0.14 | $0.68 | $0.81 |
Weighted average common shares outstanding: | ' | ' | ' | ' |
Basic and Diluted | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 |
Unaudited pro-forma net income, income attributable to common stockholders, and earnings per share (Note 16): | ' | ' | ' | ' |
Pro-forma consolidated net income of Century Communities, Inc. | 4,142 | 5,467 | 14,548 | 14,487 |
Pro-forma income attributable to common stockholders | $4,072 | $5,424 | $14,324 | $14,329 |
Pro-forma basic and diluted earnings per share | $0.19 | $0.32 | $0.77 | $1.25 |
Unaudited pro-forma weighted average common shares (Note 16): | ' | ' | ' | ' |
Pro-forma basic and diluted | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Condensed Consolidated Statement of Operations [Abstract] | ' | ' |
Related-party management fees | $0 | $200 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities: | ' | ' |
Consolidated net income of Century Communities, Inc. | $12,834 | $9,381 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 1,790 | 310 |
Stock compensation expense | 1,453 | 437 |
Deferred income tax provision | -1,631 | 386 |
Deferred provision upon conversion | ' | 627 |
Excess tax benefit on stock-based compensation | -37 | ' |
Gain on disposition of assets | 145 | 9 |
Changes in assets and liabilities: | ' | ' |
Cash held in trust | ' | 995 |
Accounts receivable | -11,094 | -3,888 |
Inventories | -116,368 | -63,902 |
Prepaid expenses and other assets | -10,894 | -4,353 |
Accounts payable | -285 | -2,708 |
Accrued expenses and other liabilities | 14,816 | 10,232 |
Payable to affiliates | ' | -95 |
Net cash used in operating activities | -109,271 | -52,569 |
Investing activities: | ' | ' |
Purchases of property and equipment | -393 | -344 |
Business combinations | -178,235 | -15,132 |
Net cash used in investing activities | -178,628 | -15,476 |
Financing activities: | ' | ' |
Borrowings under revolving credit facilities | 99,000 | 26,671 |
Payments on revolving credit facilities | -99,000 | -47,044 |
Proceeds from issuance of senior notes | 198,478 | ' |
Proceeds from Notes Payable | 5,894 | 1,500 |
Principal payments | -1,562 | -12,833 |
Debt issuance costs | -5,132 | ' |
Net proceeds from issuances of common stock | 81,890 | 223,729 |
Excess tax benefit on stock-based compensation | 37 | ' |
Contributions from members | ' | 1,500 |
Distributions to members | ' | -3,830 |
Distributions to noncontrolling interest | ' | -257 |
Net cash provided by financing activities | 279,605 | 189,436 |
Net increase (decrease) in cash and cash equivalents | -8,294 | 121,391 |
Cash and cash equivalents, Beginning of period | 109,998 | 4,981 |
Cash and cash equivalents, End of period | 101,704 | 126,372 |
Non-cash investing and financing information | ' | ' |
Seller financed acquisitions of land | 4,329 | ' |
Inventory contributed by members | ' | 3,708 |
Inventory distributed to noncontrolling interests | ' | 2,296 |
Conversion of subordinated debt obligation to equity | ' | $11,244 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 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, Central Texas, Houston, and 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, which are included in our prospectus dated June 17, 2014 that was filed with the SEC on June 18, 2014. | |
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 periods beginning after December 15, 2016. We are currently evaluating the impact of adoption of ASU 2014-09 on the Company’s consolidated financial position and results of operations. | |
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern”, (ASU 2014-15), which requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Our adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements and related disclosures. | |
Initial_Public_Offering_and_Is
Initial Public Offering and Issuance of Senior Unsecured Notes | 9 Months Ended |
Sep. 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 $81.9 million. | |
Reporting_Segments
Reporting Segments | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Reporting Segments [Abstract] | ' | ||||||||||||
Reporting Segments | ' | ||||||||||||
3. Reporting Segments | |||||||||||||
We have identified our Colorado, Central Texas, Houston, and Nevada divisions as reportable segments. Our Corporate operations are a nonoperating segment, as it serves to support our homebuilding operations through functions such as our executive, finance, treasury, human resources, and accounting departments. | |||||||||||||
The following tables summarize home sales, golf and other revenues and income before tax expense by segment (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Home sales, golf and other revenues | |||||||||||||
Colorado | $ | 40,291 | $ | 37,963 | $ | 124,490 | $ | 103,971 | |||||
Central Texas | 16,460 | 3,531 | 42,746 | 3,531 | |||||||||
Houston | 7,365 | — | 7,365 | — | |||||||||
Nevada | 27,845 | — | 46,883 | — | |||||||||
Total | $ | 91,961 | $ | 41,494 | $ | 221,484 | $ | 107,502 | |||||
Income before tax expense | |||||||||||||
Colorado | $ | 5,620 | $ | 6,217 | $ | 19,856 | $ | 18,383 | |||||
Central Texas | 2,172 | 232 | 4,287 | 232 | |||||||||
Houston | -87 | — | -87 | — | |||||||||
Nevada | 2,731 | — | 5,412 | — | |||||||||
Corporate | -3,739 | -2,665 | -9,525 | -5,277 | |||||||||
Total | $ | 6,697 | $ | 3,784 | $ | 19,943 | $ | 13,338 | |||||
The following table summarizes total assets by segment (in thousands): | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Colorado | $ | 251,733 | $ | 167,948 | |||||||||
Central Texas | 74,055 | 27,386 | |||||||||||
Houston | 25,540 | — | |||||||||||
Nevada | 176,982 | — | |||||||||||
Corporate | 110,283 | 117,305 | |||||||||||
Total | $ | 638,593 | $ | 312,639 | |||||||||
Corporate assets include certain cash and cash equivalents, prepaid insurance, deferred financing costs and certain property and equipment. | |||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
4. Inventories | |||||||
A summary of our inventories is as follows (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Homes under construction | $ | 180,539 | $ | 89,202 | |||
Land and land development | 272,038 | 92,050 | |||||
Capitalized interest | 8,989 | 2,820 | |||||
Total | $ | 461,566 | $ | 184,072 | |||
Prepaid_Expenses_and_Other_Ass
Prepaid Expenses and Other Assets | 9 Months Ended | ||||||
Sep. 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): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Prepaid insurance | $ | 8,605 | $ | 1,260 | |||
Lot option and escrow deposits | 4,546 | 3,218 | |||||
Performance deposits | 6,001 | 1,899 | |||||
Deferred financing costs, net | 5,118 | — | |||||
Other | 3,232 | 2,038 | |||||
Total | $ | 27,502 | $ | 8,415 | |||
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 9 Months Ended | ||||||
Sep. 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): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer and escrow deposits | $ | 4,622 | $ | 3,327 | |||
Warranty reserve | 2,114 | 1,150 | |||||
Accrued compensation costs | 6,400 | 5,511 | |||||
Land development and home construction accruals | 25,256 | 12,286 | |||||
Accrued interest | 5,653 | 9 | |||||
Income tax payable | — | 4,731 | |||||
Billings in excess of collections | 85 | 1,199 | |||||
Earnout liability | 2,768 | — | |||||
Other | 3,776 | 2,145 | |||||
Total | $ | 50,674 | $ | 30,358 | |||
Warranty_Reserve
Warranty Reserve | 9 Months Ended | ||||||||||||
Sep. 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. Additional reserves may be established, and an expense recorded, for unusual warranty-related expenditures at the time the expenditure becomes probable and estimable. Changes in our warranty accrual for the three and nine months ended September 30, 2014 and 2013 are detailed in the table below (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Accrued warranty reserve, beginning of period | $ | 1,546 | $ | 845 | $ | 1,150 | $ | 679 | |||||
Warranty reserves assumed in business combinations | 200 | — | 341 | — | |||||||||
Warranty expense provisions | 715 | 195 | 1,354 | 582 | |||||||||
Payments | -347 | -204 | -731 | -425 | |||||||||
Accrued warranty reserve, end of period | $ | 2,114 | $ | 836 | $ | 2,114 | $ | 836 | |||||
Notes_Payable_and_Revolving_Lo
Notes Payable and Revolving Loan Agreement | 9 Months Ended | ||||||
Sep. 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 September 30, 2014 and December 31, 2013 (in thousands): | |||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.875% senior notes(A) | $ | 198,557 | $ | — | |||
Land development notes(B) | 5,740 | 1,500 | |||||
Insurance premium notes (C) | 5,682 | — | |||||
Capital lease obligations (D) | 69 | — | |||||
Revolving loan agreement(E) | — | — | |||||
Total | $ | 210,048 | $ | 1,500 | |||
(A) | 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. 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. The senior notes are unsecured senior obligations which are guaranteed on an unsecured senior basis by certain of our current and future subsidiaries. The senior notes contain certain restrictions on issuing future secured debt and other transactions but do not contain financial covenants. The principal balance is due in May 2022, with interest only payments due semi-annually in November and May. | ||||||
(B) | Four notes with maturity dates ranging from March 2015 to April 2016 with interest only payments ranging from 0.5% to 5.0%. | ||||||
(C) | Two notes due October 2015 and November 2015, respectively, and monthly interest and principal payments at 2.65% and 3.89%, respectively. | ||||||
(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 a maximum borrowings of $100.0 million. Borrowings on the revolving loan agreement bear interest at a daily rate of LIBOR plus 2.50%. The revolving loan agreement was terminated on July 1, 2014, however letters of credit of $0.8 million issued prior to termination remain outstanding as of September 30, 2014. | ||||||
Interest
Interest | 9 Months Ended | ||||||||||||
Sep. 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. The capitalized interest is subsequently included in cost of sales at the time the home is closed. As our qualifying assets exceeded our outstanding debt during the three and nine months ended September 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 | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Interest capitalized beginning of period | $ | 5,850 | $ | 3,312 | $ | 2,820 | $ | 3,243 | |||||
Interest capitalized during period | 3,894 | 86 | 7,452 | 976 | |||||||||
Less: capitalized interest in cost of sales | -755 | -530 | -1,283 | -1,351 | |||||||||
Interest capitalized end of period | $ | 8,989 | $ | 2,868 | $ | 8,989 | $ | 2,868 | |||||
Business_Combinations
Business Combinations | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Business Combinations | ' | |||
10. Business Combinations | ||||
Acquisition of Las Vegas Land Holdings, LLC | ||||
On April 1, 2014, we purchased substantially all of the assets and operations of Las Vegas Land Holdings, LLC (“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 | 144,531 | |||
Prepaid expenses and other assets | 2,910 | |||
Property and equipment | 8,619 | |||
Amortizable intangible assets | 3,076 | |||
Goodwill | 11,282 | |||
Total assets | $ | 170,765 | ||
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 a third party 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 estimates of the fair value of the non-solicitation agreement, cell phone tower leases, and homes plans was $1.4 million, $1.4 million and $0.3 million, respectively, which will be amortized over 2 years, 17 years, and 7 years, respectively. 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. | ||||
During the third quarter we recorded measurement period adjustments which decreased the estimated value of prepaid expenses and other assets and goodwill by $0.6 million and $2.2 million, respectively, and increased the estimated value of inventory by $2.8 million. The measurement period adjustments resulted in an increase to cost of sales for the three months ended September 30, 2014 of $0.5 million. 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. | ||||
Acquisition of Grand View Builders | ||||
On August 12, 2014, we purchased substantially all of the assets and operations of Grand View Builders (“Grand View”) in Houston, Texas for a purchase price of approximately $13 million and annual earnout payments based on a percentage of adjusted pre-tax income over the next two years. 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 $0.1 million in acquisition-related costs, which are included in other income (expense) on the consolidated statement of operations. | ||||
Assets acquired and liabilities assumed | ||||
Accounts receivable | $ | 188 | ||
Inventories | 12,356 | |||
Prepaid expenses and other assets | 295 | |||
Property and equipment | 185 | |||
Amortizable intangible assets | 2,028 | |||
Goodwill | 1,489 | |||
Total assets | $ | 16,541 | ||
Accrued expenses and other liabilities (inclusive of earnout liability) | $ | 3,684 | ||
Total liabilities | $ | 3,684 | ||
We determined the preliminary estimate of fair value for acquired inventories on a lot by lot basis primarily using a forecasted cash flow approach for the development, marketing, and sale of each lot acquired. Significant assumptions included in our estimate include future construction and overhead costs, sales price, and absorption rates. | ||||
We determined the preliminary estimate of fair value for amortizable intangible assets, which includes a non-compete agreement, trade names, home plans, and backlog associated with certain custom home contracts, with the assistance of a third party valuation firm. Our preliminary estimate of the fair value of the non-compete agreement, trade names, home plans and backlog were $0.3 million, $1.4 million, $0.1 million, and $0.2 million respectively, which will be amortized over 2 years, 2.3 years, 7 years, and 1.5 years, respectively. In total, amortizable intangible assets will be amortized over a weighted average life of 2.4 years. | ||||
The fair value of the earnout on the acquisition date of $2.8 million was determined with the assistance of a third party valuation firm based on probability weighting scenarios and discounting the potential payments which range from $0 to a maximum of $5.3 million. The maximum earnout amount is subject to downward reductions of up to $1.5 million based on the number of future lots acquired over the next two years in our Houston division. The earnout liability is included in accrued expenses and other liabilities on the consolidated balance sheet. | ||||
We determined that Grand View’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. | ||||
Goodwill includes the anticipated economic value of the acquired workforce. We have not finalized the amount of goodwill that will 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 | 9 Months Ended |
Sep. 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 $2.6 million and $7.1 million for the three and nine months ended September 30, 2014. Our income tax expense for the three and nine months ended September 30, 2014 is based on our estimated annual effective tax rate of approximately 34% and certain discreet items recorded in the third quarter of 2014. The discreet items related to the filing of our prior year federal income tax returns, and impacted our effective tax rate by approximately 3.4% and 1.6% for the three and nine month periods ended September 30, 2014, respectively. | |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | ||||||||||||||
Sep. 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-Sep-14 | December 31, 2013 | ||||||||||||||
Fair | Fair | ||||||||||||||
Hierarchy | Carrying | Value | Carrying | Value | |||||||||||
6.875% senior notes (1) | Level 2 | $ | 198,557 | $ | 203,571 | $ | — | $ | — | ||||||
Land development notes (1) | Level 2 | $ | 5,740 | $ | 5,723 | $ | 1,500 | $ | 1,490 | ||||||
Insurance premium notes (1) | Level 2 | $ | 5,682 | $ | 5,682 | $ | — | $ | — | ||||||
Capital lease obligations (1) | Level 2 | $ | 69 | $ | 69 | $ | — | $ | — | ||||||
Earnout liability(2) | Level 3 | $ | 2,768 | $ | 2,768 | $ | — | $ | — | ||||||
-1 | Estimated fair values as of September 30, 2014 and December 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. | ||||||||||||||
-2 | Recognized in connection with the acquisition of Grand View on August 12, 2014. A Monte Carlo model was used to value the earnout by simulating earnings, applying the terms of the earnout in each simulated path, determining the average payment in each year across all the trials of the simulation, and calculating the sum of the present values of the payments in each year. The primary inputs and key assumptions of this Monte Carlo model included a range of forecasted revenue and gross margin scenarios which increased and decreased by 10.1% from our base case and discount rates ranging from 5.1% to 6.3%. | ||||||||||||||
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 | 9 Months Ended |
Sep. 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 September 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 September 30, 2014, the Company issued 53 thousand shares of restricted common stock awards with a grant date fair value of $21.13 per share. | |
As of September 30, 2014, 0.4 million shares of restricted common stock were unvested, and $6.7 million of unrecognized compensation costs is expected to be recognized over a weighted average period of 2.4 years. | |
During the three and nine months ended September 30, 2014 and 2013, the Company recognized stock-based compensation expense of $0.7 million, $1.5 million, $0.3 million and $0.4 million, respectively, which is included in selling, general, and administrative on the consolidated statement of operations. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||
Sep. 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 nine months ended September 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 nine months ended September 30, 2014 and 2013 (in thousands, except share and per share information): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator | |||||||||||||
Net income | $ | 4,127 | $ | 2,438 | $ | 12,834 | $ | 9,381 | |||||
Less: Net income attributable to the noncontrolling interests | — | — | — | -52 | |||||||||
Less: Undistributed earnings allocated to participating securities | -70 | -23 | -179 | -69 | |||||||||
Numerator for basic and diluted EPS | $ | 4,057 | $ | 2,415 | $ | 12,655 | $ | 9,260 | |||||
Denominator | |||||||||||||
Basic and diluted earnings per share—weighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 | |||||||||
Basic and diluted EPS | $ | 0.19 | $ | 0.14 | $ | 0.68 | $ | 0.81 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 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 September 30, 2014 and December 31, 2013, we had $31.0 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 | 9 Months Ended | |||||||||||
Sep. 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 nine months ended September 30, 2014 and 2013, gives effect to including the results of acquisitions of Jimmy Jacobs, L.P. (“Jimmy Jacobs”), LVLH and Grand View as of January 1, 2014 and 2013 respectively. Unaudited pro forma income before tax expense adjusts the operating results of Jimmy Jacobs, LVLH, and Grand View 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 nine months ended September 30, 2013 gives effect to the conversion of the Company’s members’ equity into common stock as 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 | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Revenues | $ | 97,440 | $ | 94,200 | $ | 266,092 | $ | 238,646 | ||||
Income before tax expense | 6,722 | 8,411 | 22,607 | 22,288 | ||||||||
Tax expense | 2,580 | 2,944 | 8,059 | 7,801 | ||||||||
Consolidated net income of Century Communities, Inc. | 4,142 | 5,467 | 14,548 | 14,487 | ||||||||
Less: Net income attributable to the noncontrolling interest | — | — | — | -52 | ||||||||
Less: Undistributed earnings allocated to participating securities | -70 | -43 | -224 | -106 | ||||||||
Numerator for basic and diluted pro forma EPS | $ | 4,072 | $ | 5,424 | $ | 14,324 | $ | 14,329 | ||||
Pro forma weighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 | ||||||||
Pro forma basic and diluted EPS | $ | 0.19 | $ | 0.32 | $ | 0.77 | $ | 1.25 | ||||
Subsequent_Events
Subsequent Events | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Subsequent Events [Abstract] | ' | |||
Subsequent Events | ' | |||
17. Subsequent Events | ||||
Revolving Credit Agreement | ||||
On October 21, 2014, we entered into a credit agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, and the lenders from time to time party thereto (the “Credit Agreement”). The Credit Agreement provides the Company with a revolving line of credit (the “Credit Facility”) of up to $120 million. | ||||
Unless terminated earlier, the Credit Facility will mature on October 21, 2017, and the principal amount thereunder, together with all accrued unpaid interest and other amounts owing thereunder, if any, will be payable in full on such date. The Company may request a twelve-month extension of the maturity date subject to the approval of the lenders and the Administrative Agent. | ||||
Under the terms of the Credit Agreement, the Company is entitled to request an increase in the size of the Credit Facility by an amount not exceeding $80 million. If the existing lenders elect not to provide the full amount of a requested increase, the Company may invite one or more other lender(s) to become a party to the Credit Agreement, subject to the approval of the Administrative Agent and L/C Issuer. The Credit Agreement includes a letter of credit sublimit of $20 million. The obligations under the Credit Agreement are guaranteed by certain of the Company’s subsidiaries. | ||||
Borrowings under the Credit Agreement bear interest at a floating rate equal to the London Interbank Offered Rate plus an applicable margin between 2.75% and 3.25% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.75% and 2.25% per annum. The “applicable margins” described above are determined by a schedule based on the leverage ratio of the Company, as defined in the Credit Agreement. The Credit Agreement also provides for fronting fees and letter of credit fees payable to the L/C Issuer and commitment fees payable to the Administrative Agent equal to 0.20% of the unused portion of the Credit Facility. | ||||
The Credit Agreement contains customary affirmative and negative covenants (including limitations on the Company’s ability to grant liens, incur additional debt, pay dividends, redeem its common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. The Credit Agreement also requires the Company to maintain (i) a leverage ratio of not more than 1.50 to 1.0 as of the last day of any fiscal quarter, based upon the ratio of debt to tangible net worth of the Company and its subsidiaries on a consolidated basis, (ii) an interest coverage ratio of not less than 1.50 to 1.0 for any four fiscal quarter period, based upon the ratio of EBITDA to cash interest expense of the Company and its subsidiaries on a consolidated basis, (iii) a consolidated tangible net worth of not less than the sum of $250 million, plus 50% of the net proceeds of any issuances of equity interests of the Company and the guarantors of the Credit Facility, plus 50% of the amount of consolidated net income of the Company and its subsidiaries, (iv) liquidity of not less than $25 million, and (v) a risk asset ratio of not more than 1.25 to 1.0, based upon the ratio of the book value of all risk assets owned by the Company and its subsidiaries to the Company’s tangible net worth. | ||||
Acquisition of Peachtree Communities, LLC | ||||
On November 13, 2014, we acquired substantially all the assets and operations of Peachtree Communities a leading homebuilder in Atlanta, Georgia for approximately $55 million in cash. The acquired assets include land, homes under construction and model homes in 36 communities in the greater Atlanta area. As a result of this transaction, we now own or control 2,120 lots in the greater Atlanta market. | ||||
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. | ||||
The following table summarizes our preliminary estimates of the fair value of the assets acquired and liabilities assumed as of the acquisition date: | ||||
Assets acquired and liabilities assumed | ||||
Inventories | $ | 56,059 | ||
Prepaid expenses and other assets | 689 | |||
Amortizable intangible assets | 2,500 | |||
Goodwill | 7,919 | |||
Total assets | $ | 67,167 | ||
Accounts payable | $ | 14,811 | ||
Total liabilities | $ | 14,811 | ||
Stock Repurchase Program | ||||
On November 5, 2014, our Board of Directors authorized a stock repurchase program under which the Company may repurchase up to 2,000,000 shares of its outstanding common stock, $0.01 par value per share. The shares may be repurchased from time to time in open market transactions at prevailing market prices, or by other means in accordance with federal securities laws. The actual manner, timing, amount and value of share repurchases under the stock repurchase program will be determined by management at its discretion and will depend on a number of factors, including the market price of the Company’s common stock and general market and economic conditions. | ||||
Basis_of_Presentation_Policy
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 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, Central Texas, Houston, and 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, which are included in our prospectus dated June 17, 2014 that was filed with the SEC on June 18, 2014. | |
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 periods beginning after December 15, 2016. We are currently evaluating the impact of adoption of ASU 2014-09 on the Company’s consolidated financial position and results of operations. | |
In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties About an Entity's Ability to Continue as a Going Concern”, (ASU 2014-15), which requires management to perform interim and annual assessments on whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year of the date the financial statements are issued and to provide related disclosures, if required. The amendments in ASU 2014-15 are effective for the annual period ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. Our adoption of ASU 2014-15 is not expected to have a material effect on our consolidated financial statements and related disclosures. | |
Reporting_Segments_Tables
Reporting Segments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Reporting Segments [Abstract] | ' | ||||||||||||
Schedule of Home Sale Revenues and Pretax Income by Segment | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Home sales, golf and other revenues | |||||||||||||
Colorado | $ | 40,291 | $ | 37,963 | $ | 124,490 | $ | 103,971 | |||||
Central Texas | 16,460 | 3,531 | 42,746 | 3,531 | |||||||||
Houston | 7,365 | — | 7,365 | — | |||||||||
Nevada | 27,845 | — | 46,883 | — | |||||||||
Total | $ | 91,961 | $ | 41,494 | $ | 221,484 | $ | 107,502 | |||||
Income before tax expense | |||||||||||||
Colorado | $ | 5,620 | $ | 6,217 | $ | 19,856 | $ | 18,383 | |||||
Central Texas | 2,172 | 232 | 4,287 | 232 | |||||||||
Houston | -87 | — | -87 | — | |||||||||
Nevada | 2,731 | — | 5,412 | — | |||||||||
Corporate | -3,739 | -2,665 | -9,525 | -5,277 | |||||||||
Total | $ | 6,697 | $ | 3,784 | $ | 19,943 | $ | 13,338 | |||||
Schedule of Total Assets by Segment | ' | ||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Colorado | $ | 251,733 | $ | 167,948 | |||||||||
Central Texas | 74,055 | 27,386 | |||||||||||
Houston | 25,540 | — | |||||||||||
Nevada | 176,982 | — | |||||||||||
Corporate | 110,283 | 117,305 | |||||||||||
Total | $ | 638,593 | $ | 312,639 | |||||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule of Inventories | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Homes under construction | $ | 180,539 | $ | 89,202 | |||
Land and land development | 272,038 | 92,050 | |||||
Capitalized interest | 8,989 | 2,820 | |||||
Total | $ | 461,566 | $ | 184,072 | |||
Prepaid_Expenses_and_Other_Ass1
Prepaid Expenses and Other Assets (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Prepaid Expenses and Other Assets [Abstract] | ' | ||||||
Schedule of Prepaid Expenses and Other Assets | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Prepaid insurance | $ | 8,605 | $ | 1,260 | |||
Lot option and escrow deposits | 4,546 | 3,218 | |||||
Performance deposits | 6,001 | 1,899 | |||||
Deferred financing costs, net | 5,118 | — | |||||
Other | 3,232 | 2,038 | |||||
Total | $ | 27,502 | $ | 8,415 | |||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Accrued Expenses and Other Liabilities [Abstract] | ' | ||||||
Schedule of Accrued Expenses and Other Liabilities | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
Customer and escrow deposits | $ | 4,622 | $ | 3,327 | |||
Warranty reserve | 2,114 | 1,150 | |||||
Accrued compensation costs | 6,400 | 5,511 | |||||
Land development and home construction accruals | 25,256 | 12,286 | |||||
Accrued interest | 5,653 | 9 | |||||
Income tax payable | — | 4,731 | |||||
Billings in excess of collections | 85 | 1,199 | |||||
Earnout liability | 2,768 | — | |||||
Other | 3,776 | 2,145 | |||||
Total | $ | 50,674 | $ | 30,358 | |||
Warranty_Reserve_Tables
Warranty Reserve (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Warranty Reserve [Abstract] | ' | ||||||||||||
Schedule of Changes in Warranty Accrual | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Accrued warranty reserve, beginning of period | $ | 1,546 | $ | 845 | $ | 1,150 | $ | 679 | |||||
Warranty reserves assumed in business combinations | 200 | — | 341 | — | |||||||||
Warranty expense provisions | 715 | 195 | 1,354 | 582 | |||||||||
Payments | -347 | -204 | -731 | -425 | |||||||||
Accrued warranty reserve, end of period | $ | 2,114 | $ | 836 | $ | 2,114 | $ | 836 | |||||
Notes_Payable_and_Revolving_Lo1
Notes Payable and Revolving Loan Agreement (Tables) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Notes Payable and Revolving Loan Agreement [Abstract] | ' | ||||||
Schedule of Notes Payable and Revolving Loan Agreement | ' | ||||||
September 30, | December 31, | ||||||
2014 | 2013 | ||||||
6.875% senior notes(A) | $ | 198,557 | $ | — | |||
Land development notes(B) | 5,740 | 1,500 | |||||
Insurance premium notes (C) | 5,682 | — | |||||
Capital lease obligations (D) | 69 | — | |||||
Revolving loan agreement(E) | — | — | |||||
Total | $ | 210,048 | $ | 1,500 | |||
(A) | 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. 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. The senior notes are unsecured senior obligations which are guaranteed on an unsecured senior basis by certain of our current and future subsidiaries. The senior notes contain certain restrictions on issuing future secured debt and other transactions but do not contain financial covenants. The principal balance is due in May 2022, with interest only payments due semi-annually in November and May. | ||||||
(B) | Four notes with maturity dates ranging from March 2015 to April 2016 with interest only payments ranging from 0.5% to 5.0%. | ||||||
(C) | Two notes due October 2015 and November 2015, respectively, and monthly interest and principal payments at 2.65% and 3.89%, respectively. | ||||||
(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 a maximum borrowings of $100.0 million. Borrowings on the revolving loan agreement bear interest at a daily rate of LIBOR plus 2.50%. The revolving loan agreement was terminated on July 1, 2014, however letters of credit of $0.8 million issued prior to termination remain outstanding as of September 30, 2014. | ||||||
Interest_Tables
Interest (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Interest [Abstract] | ' | ||||||||||||
Schedule of Interest Costs | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Interest capitalized beginning of period | $ | 5,850 | $ | 3,312 | $ | 2,820 | $ | 3,243 | |||||
Interest capitalized during period | 3,894 | 86 | 7,452 | 976 | |||||||||
Less: capitalized interest in cost of sales | -755 | -530 | -1,283 | -1,351 | |||||||||
Interest capitalized end of period | $ | 8,989 | $ | 2,868 | $ | 8,989 | $ | 2,868 | |||||
Business_Combinations_Tables
Business Combinations (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Las Vegas Land Holdings [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Schedule of Preliminary Recognized Assets Acquired and Liabilities Assumed | ' | |||
Assets acquired and liabilities assumed | ||||
Accounts receivable | $ | 347 | ||
Inventories | 144,531 | |||
Prepaid expenses and other assets | 2,910 | |||
Property and equipment | 8,619 | |||
Amortizable intangible assets | 3,076 | |||
Goodwill | 11,282 | |||
Total assets | $ | 170,765 | ||
Accounts payable | $ | 2,074 | ||
Accrued expenses and other liabilities | 1,816 | |||
Notes payable and capital lease obligations | 1,497 | |||
Total liabilities | $ | 5,387 | ||
Grand View Builders Inc. [Member] | ' | |||
Business Acquisition [Line Items] | ' | |||
Schedule of Preliminary Recognized Assets Acquired and Liabilities Assumed | ' | |||
Assets acquired and liabilities assumed | ||||
Accounts receivable | $ | 188 | ||
Inventories | 12,356 | |||
Prepaid expenses and other assets | 295 | |||
Property and equipment | 185 | |||
Amortizable intangible assets | 2,028 | |||
Goodwill | 1,489 | |||
Total assets | $ | 16,541 | ||
Accrued expenses and other liabilities (inclusive of earnout liability) | $ | 3,684 | ||
Total liabilities | $ | 3,684 | ||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Schedule of Carrying Values and Estimated Fair Values of Financial Instruments | ' | ||||||||||||||
30-Sep-14 | December 31, 2013 | ||||||||||||||
Fair | Fair | ||||||||||||||
Hierarchy | Carrying | Value | Carrying | Value | |||||||||||
6.875% senior notes (1) | Level 2 | $ | 198,557 | $ | 203,571 | $ | — | $ | — | ||||||
Land development notes (1) | Level 2 | $ | 5,740 | $ | 5,723 | $ | 1,500 | $ | 1,490 | ||||||
Insurance premium notes (1) | Level 2 | $ | 5,682 | $ | 5,682 | $ | — | $ | — | ||||||
Capital lease obligations (1) | Level 2 | $ | 69 | $ | 69 | $ | — | $ | — | ||||||
Earnout liability(2) | Level 3 | $ | 2,768 | $ | 2,768 | $ | — | $ | — | ||||||
-1 | Estimated fair values as of September 30, 2014 and December 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. | ||||||||||||||
-2 | Recognized in connection with the acquisition of Grand View on August 12, 2014. A Monte Carlo model was used to value the earnout by simulating earnings, applying the terms of the earnout in each simulated path, determining the average payment in each year across all the trials of the simulation, and calculating the sum of the present values of the payments in each year. The primary inputs and key assumptions of this Monte Carlo model included a range of forecasted revenue and gross margin scenarios which increased and decreased by 10.1% from our base case and discount rates ranging from 5.1% to 6.3%. | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator | |||||||||||||
Net income | $ | 4,127 | $ | 2,438 | $ | 12,834 | $ | 9,381 | |||||
Less: Net income attributable to the noncontrolling interests | — | — | — | -52 | |||||||||
Less: Undistributed earnings allocated to participating securities | -70 | -23 | -179 | -69 | |||||||||
Numerator for basic and diluted EPS | $ | 4,057 | $ | 2,415 | $ | 12,655 | $ | 9,260 | |||||
Denominator | |||||||||||||
Basic and diluted earnings per share—weighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 | |||||||||
Basic and diluted EPS | $ | 0.19 | $ | 0.14 | $ | 0.68 | $ | 0.81 | |||||
Pro_Forma_Financial_Informatio1
Pro Forma Financial Information (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Pro Forma Financial Information [Abstract] | ' | |||||||||||
Schedule of Pro Forma Information | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Revenues | $ | 97,440 | $ | 94,200 | $ | 266,092 | $ | 238,646 | ||||
Income before tax expense | 6,722 | 8,411 | 22,607 | 22,288 | ||||||||
Tax expense | 2,580 | 2,944 | 8,059 | 7,801 | ||||||||
Consolidated net income of Century Communities, Inc. | 4,142 | 5,467 | 14,548 | 14,487 | ||||||||
Less: Net income attributable to the noncontrolling interest | — | — | — | -52 | ||||||||
Less: Undistributed earnings allocated to participating securities | -70 | -43 | -224 | -106 | ||||||||
Numerator for basic and diluted pro forma EPS | $ | 4,072 | $ | 5,424 | $ | 14,324 | $ | 14,329 | ||||
Pro forma weighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 | ||||||||
Pro forma basic and diluted EPS | $ | 0.19 | $ | 0.32 | $ | 0.77 | $ | 1.25 | ||||
Subsequent_Events_Tables
Subsequent Events (Tables) (Peachtree Communities [Member], Subsequent Event [Member]) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Peachtree Communities [Member] | Subsequent Event [Member] | ' | |||
Subsequent Event [Line Items] | ' | |||
Schedule of Preliminary Recognized Assets Acquired and Liabilities Assumed | ' | |||
Assets acquired and liabilities assumed | ||||
Inventories | $ | 56,059 | ||
Prepaid expenses and other assets | 689 | |||
Amortizable intangible assets | 2,500 | |||
Goodwill | 7,919 | |||
Total assets | $ | 67,167 | ||
Accounts payable | $ | 14,811 | ||
Total liabilities | $ | 14,811 | ||
Initial_Public_Offering_and_Is1
Initial Public Offering and Issuance of Senior Unsecured Notes (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | 31-May-14 | Sep. 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% | ' |
Discount rate | ' | ' | ' | ' | 99.24% | ' |
Maturity date | ' | ' | ' | ' | ' | '2022-05 |
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 | $81,890,000 | $223,729,000 | ' | $81,900,000 | ' | ' |
Reporting_Segments_Schedule_of
Reporting Segments (Schedule of Segment Reporting Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total home sales, golf and other revenues | $91,961 | $41,494 | $221,484 | $107,502 | ' |
Total income before taxes | 6,697 | 3,784 | 19,943 | 13,338 | ' |
Total assets | 638,593 | ' | 638,593 | ' | 312,639 |
Colorado [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total home sales, golf and other revenues | 40,291 | 37,963 | 124,490 | 103,971 | ' |
Total income before taxes | 5,620 | 6,217 | 19,856 | 18,383 | ' |
Total assets | 251,733 | ' | 251,733 | ' | 167,948 |
Central Texas [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total home sales, golf and other revenues | 16,460 | 3,531 | 42,746 | 3,531 | ' |
Total income before taxes | 2,172 | 232 | 4,287 | 232 | ' |
Total assets | 74,055 | ' | 74,055 | ' | 27,386 |
Houston [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total home sales, golf and other revenues | 7,365 | ' | 7,365 | ' | ' |
Total income before taxes | -87 | ' | -87 | ' | ' |
Total assets | 25,540 | ' | 25,540 | ' | ' |
Nevada [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total home sales, golf and other revenues | 27,845 | ' | 46,883 | ' | ' |
Total income before taxes | 2,731 | ' | 5,412 | ' | ' |
Total assets | 176,982 | ' | 176,982 | ' | ' |
Corporate [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total income before taxes | -3,739 | -2,665 | -9,525 | -5,277 | ' |
Total assets | $110,283 | ' | $110,283 | ' | $117,305 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Inventories [Abstract] | ' | ' | ' | ' | ' | ' |
Homes under construction | $180,539 | ' | $89,202 | ' | ' | ' |
Land and land development | 272,038 | ' | 92,050 | ' | ' | ' |
Capitalized interest | 8,989 | 5,850 | 2,820 | 2,868 | 3,312 | 3,243 |
Total | $461,566 | ' | $184,072 | ' | ' | ' |
Prepaid_Expenses_and_Other_Ass2
Prepaid Expenses and Other Assets (Schedule of Prepaid Expenses and Other Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaid Expenses and Other Assets [Abstract] | ' | ' |
Prepaid insurance | $8,605 | $1,260 |
Lot option and escrow deposits | 4,546 | 3,218 |
Performance deposits | 6,001 | 1,899 |
Deferred financing costs, net | 5,118 | ' |
Other | 3,232 | 2,038 |
Total | $27,502 | $8,415 |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Schedule of Accrued and Other Current Liabilities) (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Accrued Expenses and Other Liabilities [Abstract] | ' | ' | ' | ' | ' | ' |
Customer and escrow deposits | $4,622 | ' | $3,327 | ' | ' | ' |
Warranty reserve | 2,114 | 1,546 | 1,150 | 836 | 845 | 679 |
Accrued compensation costs | 6,400 | ' | 5,511 | ' | ' | ' |
Land development and home construction accruals | 25,256 | ' | 12,286 | ' | ' | ' |
Accrued interest | 5,653 | ' | 9 | ' | ' | ' |
Income tax payable | ' | ' | 4,731 | ' | ' | ' |
Billings in excess of collections | 85 | ' | 1,199 | ' | ' | ' |
Earnout liability | 2,768 | ' | ' | ' | ' | ' |
Other | 3,776 | ' | 2,145 | ' | ' | ' |
Total | $50,674 | ' | $30,358 | ' | ' | ' |
Warranty_Reserve_Schedule_of_C
Warranty Reserve (Schedule of Changes in Warranty Accrual) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Warranty Reserve [Abstract] | ' | ' | ' | ' |
Accrued warranty reserve, beginning of period | $1,546 | $845 | $1,150 | $679 |
Warranty reserves assumed in business combinations | 200 | ' | 341 | ' |
Warranty expense provisions | 715 | 195 | 1,354 | 582 |
Payments | -347 | -204 | -731 | -425 |
Accrued warranty reserve, end of period | $2,114 | $836 | $2,114 | $836 |
Notes_Payable_and_Revolving_Lo2
Notes Payable and Revolving Loan Agreement (Schedule of Notes Payable And Revolving Line Of Credit) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
Minimum [Member] | Maximum [Member] | Senior Unsecured Note [Member] | Senior Unsecured Note [Member] | Land Development Note [Member] | Land Development Note [Member] | Land Development Note [Member] | Insurance Premium Note [Member] | Insurance Premium Note [Member] | Insurance Premium Note [Member] | Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | |||||
loan | Minimum [Member] | Maximum [Member] | loan | Note payable One [Member] | Note Payable Two [Member] | Minimum [Member] | Maximum [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
6.875% senior notes | $198,557,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Land development notes | 5,740,000 | [2] | 1,500,000 | [2] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance premium notes | 5,682,000 | [3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Capital lease obligations | 69,000 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revolving loan agreement | ' | [5] | ' | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | 210,048,000 | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maturity date | ' | ' | ' | ' | ' | '2022-05 | ' | '2015-03 | '2016-04 | ' | '2015-10 | '2015-11 | ' | ' | ' | ' | ||
Number of notes payable | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ||
Principal amount | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Interest rate | ' | ' | ' | ' | 6.88% | ' | ' | 0.50% | 5.00% | ' | 2.65% | 3.89% | ' | ' | ' | ' | ||
Net proceeds from issuance of senior debt | ' | ' | ' | ' | 193,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Discount rate | ' | ' | 5.10% | 6.30% | 99.24% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of credit facility, initiation date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18-Oct-13 | ' | ||
Debt, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '4 years | '3 years | ' | ||
Line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ||
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ||
Letters of credit outstanding, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' | ||
[1] | In May 2014, we completed a private offering of $200.0B million in aggregate principal amount of senior unsecured notes due 2022 in reliance on RuleB 144A and RegulationB S under the Securities Act of 1933, as amended. We received net proceeds of approximately $193.3B 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. The senior notes are unsecured senior obligations which are guaranteed on an unsecured senior basis by certain of our current and future subsidiaries. The senior notes contain certain restrictions on issuing future secured debt and other transactions but do not contain financial covenants. The principal balance is due in May 2022, with interest only payments due semi-annually in November and May. | |||||||||||||||||
[2] | Four notes with maturity dates ranging from March 2015 to AprilB 2016 with interest only payments ranging from 0.5% to 5.0%. | |||||||||||||||||
[3] | Two notes due October 2015 and November 2015, respectively, and monthly interest and principal payments at 2.65% and 3.89%, respectively. | |||||||||||||||||
[4] | Various equipment leases with maturities ranging from 2 to 4 years. | |||||||||||||||||
[5] | On October 18, 2013 we entered into a three-year revolving loan agreement with a maximum borrowings of $100.0 million. Borrowings on the revolving loan agreement bear interest at a daily rate of LIBOR plus 2.50%. The revolving loan agreement was terminated on July 1, 2014, however letters of credit of $0.8 million issued prior to termination remain outstanding as of September 30, 2014. |
Interest_Details
Interest (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Interest [Abstract] | ' | ' | ' | ' |
Interest capitalized beginning of period | $5,850 | $3,312 | $2,820 | $3,243 |
Interest capitalized during period | 3,894 | 86 | 7,452 | 976 |
Less: capitalized interest in cost of sales | -755 | -530 | -1,283 | -1,351 |
Interest capitalized end of period | $8,989 | $2,868 | $8,989 | $2,868 |
Business_Combinations_Narrativ
Business Combinations (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 01, 2014 | Sep. 30, 2014 | Apr. 01, 2014 | Sep. 30, 2014 | Aug. 12, 2014 | Sep. 30, 2014 | Aug. 12, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Las Vegas Land Holdings [Member] | Las Vegas Land Holdings [Member] | Las Vegas Land Holdings [Member] | Las Vegas Land Holdings [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Non-solicitation agreement [Member] | Cell phone tower leases [Member] | Home plans [Member] | Home plans [Member] | Noncompete Agreements [Member] | Trade Names [Member] | Backlog [Member] | ||||||
item | Measurement Period Adjustments [Member] | Minimum [Member] | Maximum [Member] | Las Vegas Land Holdings [Member] | Las Vegas Land Holdings [Member] | Las Vegas Land Holdings [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | Grand View Builders Inc. [Member] | |||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | $178,235,000 | $15,132,000 | ' | $165,000,000 | ' | ' | ' | $13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of communities | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preliminary estimate of fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | 1,400,000 | 300,000 | 100,000 | 300,000 | 1,400,000 | 200,000 |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '17 years | '7 years | '7 years | '2 years | '2 years 3 months 18 days | '1 year 6 months |
Weighted average life of intangible assets | ' | ' | ' | ' | ' | ' | '9 years 3 months 18 days | ' | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of acquisition earnout | 2,768,000 | ' | 2,768,000 | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnout period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential Earnout Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,300,000 | ' | ' | ' | ' | ' | ' | ' |
Maximum Earnout Downward Reduction Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill amount expected to be tax deductible | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other assets | 27,502,000 | ' | 27,502,000 | ' | 8,415,000 | ' | ' | ' | -600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 13,249,000 | ' | 13,249,000 | ' | 479,000 | ' | ' | 11,282,000 | -2,200,000 | ' | ' | 1,489,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Inventories | 461,566,000 | ' | 461,566,000 | ' | 184,072,000 | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of home sales revenues | $70,896,000 | $31,948,000 | $166,367,000 | $81,084,000 | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Schedule
Business Combinations (Schedule of Assets and Liabilities Acquired) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Apr. 01, 2014 | Aug. 12, 2014 |
In Thousands, unless otherwise specified | Las Vegas Land Holdings [Member] | Grand View Builders Inc. [Member] | ||
Assets acquired and liabilities assumed | ' | ' | ' | ' |
Accounts receivable | ' | ' | $347 | $188 |
Inventories | ' | ' | 144,531 | 12,356 |
Prepaid expenses and other assets | ' | ' | 2,910 | 295 |
Property and equipment | ' | ' | 8,619 | 185 |
Amortizable intangible assets | ' | ' | 3,076 | 2,028 |
Goodwill | 13,249 | 479 | 11,282 | 1,489 |
Total assets | ' | ' | 170,765 | 16,541 |
Accounts payable | ' | ' | 2,074 | ' |
Accrued expenses and other liabilities (inclusive of earnout liability) | ' | ' | 1,816 | 3,684 |
Notes payable and capital lease obligations | ' | ' | 1,497 | ' |
Total liabilities | ' | ' | $5,387 | $3,684 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2013 |
Income Taxes [Abstract] | ' | ' | ' | ' | ' | ' |
Income tax expense | $2,570 | $1,346 | $7,109 | $3,330 | ' | ' |
Effective tax rate | ' | ' | 34.00% | ' | ' | ' |
Change in effective tax rate | 3.40% | ' | 1.60% | ' | ' | ' |
Deferred Tax Liabilities, Net | ' | ' | ' | ' | $912 | $600 |
Fair_Value_Disclosures_Schedul
Fair Value Disclosures (Schedule of Carrying Values and Estimated Fair Values of Financial Instruments) (Details) (USD $) | 9 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | 31-May-14 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |||
Minimum [Member] | Maximum [Member] | Senior Unsecured Note [Member] | Carrying Value [Member] | Carrying Value [Member] | Carrying Value [Member] | Fair Value [Member] | Fair Value [Member] | Fair Value [Member] | |||||
Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
6.875% senior notes | ' | ' | ' | ' | $198,557 | ' | ' | $203,571 | [1],[2] | ' | ' | ||
Land development notes | ' | ' | ' | ' | 5,740 | 1,500 | ' | 5,723 | [1],[2] | 1,490 | [1] | ' | |
Insurance premium notes | ' | ' | ' | ' | 5,682 | ' | ' | 5,682 | [1],[2] | ' | ' | ||
Capital lease obligations | ' | ' | ' | ' | 69 | ' | ' | 69 | [1],[2] | ' | ' | ||
Earnout liability | $2,768 | ' | ' | ' | ' | ' | $2,768 | ' | ' | $2,768 | [1],[2] | ||
Interest rate | ' | ' | ' | 6.88% | ' | ' | ' | ' | ' | ' | |||
Discount rate | ' | 5.10% | 6.30% | 99.24% | ' | ' | ' | ' | ' | ' | |||
Range of forecasted revenues and gross margins base estimate | 10.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Estimated fair values as of SeptemberB 30, 2014 and DecemberB 31, 2013 were based on cash flow models discounted at market interest rates that considered underlying risks of the debt. | ||||||||||||
[2] | Recognized in connection with the acquisition of Grand View on August 12, 2014. A Monte Carlo model was used to value the earnout by simulating earnings, applying the terms of the earnout in each simulated path, determining the average payment in each year across all the trials of the simulation, and calculating the sum of the present values of the payments in each year. The primary inputs and key assumptions of this Monte Carlo model included a range of forecasted revenue and gross margin scenarios which increased and decreased by 10.1% from our base case and discount rates ranging from 5.1% to 6.3%. |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 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 | 21,485,257 | ' | 21,485,257 | ' | 17,257,774 |
Common Stock, Shares, Outstanding | 21,485,257 | ' | 21,485,257 | ' | 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 | $0.70 | $0.30 | $1.50 | $0.40 | ' |
Compensation not yet recognized | $6.70 | ' | $6.70 | ' | ' |
Compensation not yet recognized, period for recognition | ' | ' | '2 years 4 months 24 days | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Restricted stock issued | 53,000 | ' | ' | ' | ' |
Grant date fair value | $21.13 | ' | $21.13 | ' | ' |
Unvested shares of restricted stock | 400,000 | ' | 400,000 | ' | ' |
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 | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Numerator | ' | ' | ' | ' |
Net income | $4,127 | $2,438 | $12,834 | $9,381 |
Less: Net income attributable to the noncontrolling interests | ' | ' | ' | -52 |
Less: Undistributed earnings allocated to participating securities | -70 | -23 | -179 | -69 |
Numerator for basic and diluted EPS | $4,057 | $2,415 | $12,655 | $9,260 |
Denominator | ' | ' | ' | ' |
Basic and diluted earnings per sharebweighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 |
Basic and diluted EPS | $0.19 | $0.14 | $0.68 | $0.81 |
Shares issued to outstanding membership interests upon conversion | ' | 5,000,000 | ' | 5,000,000 |
Commitment_and_Contingencies_D
Commitment and Contingencies (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Commitments and Contingencies [Abstract] | ' | ' |
Outstanding letters of credit and performance bonds | $31 | $3 |
Pro_Forma_Financial_Informatio2
Pro Forma Financial Information (Schedule of Pro Forma Information) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Pro Forma Financial Information [Abstract] | ' | ' | ' | ' |
Revenues | $97,440 | $94,200 | $266,092 | $238,646 |
Income before tax expense | 6,722 | 8,411 | 22,607 | 22,288 |
Tax expense | 2,580 | 2,944 | 8,059 | 7,801 |
Consolidated net income of Century Communities, Inc. | 4,142 | 5,467 | 14,548 | 14,487 |
Less: Net income attributable to the noncontrolling interests | ' | ' | ' | -52 |
Less: Undistributed earnings allocated to participating securities | -70 | -43 | -224 | -106 |
Numerator for basic and diluted pro forma EPS | $4,072 | $5,424 | $14,324 | $14,329 |
Pro forma weighted average shares | 21,113,708 | 17,075,000 | 18,635,986 | 11,457,692 |
Pro forma basic and diluted EPS | $0.19 | $0.32 | $0.77 | $1.25 |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Nov. 05, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Oct. 21, 2014 | Nov. 13, 2014 | Nov. 13, 2014 | |
Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Peachtree Communities [Member] | Peachtree Communities [Member] | ||||
LIBOR [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Revolving Credit Agreement [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
LIBOR [Member] | LIBOR [Member] | Base Rate [Member] | Base Rate [Member] | item | ||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | $178,235,000 | $15,132,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55,000,000 | ' |
Number of lots | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,120 |
Number of communities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36 |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | 100,000,000 | ' | ' | ' | 120,000,000 | ' | ' | ' | ' | ' | ' |
Maturity date | ' | ' | ' | ' | ' | ' | 21-Oct-17 | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of increase to credit facility | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' |
Letter of credit sublimit | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | 2.50% | ' | ' | ' | 2.75% | 3.25% | 1.75% | 2.25% | ' | ' |
Unused borrowing capacity fee, percent | ' | ' | ' | ' | ' | ' | 0.20% | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Maximum interest coverage ratio | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Dollar amount of consolidated tangible net worth | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of net proceeds from equity issuance | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of consolidated net income | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' |
Minimum liquidity requirement | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ' | ' | ' | ' | ' | ' |
Risk asset ratio | ' | ' | ' | ' | ' | ' | 1.25 | ' | ' | ' | ' | ' | ' | ' |
Number of shares authorized to be purchased | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, par value (in dollars per share) | $0.01 | ' | $0.01 | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Schedule_of_
Subsequent Events (Schedule of Assets and Liabilities Acquired) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 13, 2014 |
In Thousands, unless otherwise specified | Subsequent Event [Member] | ||
Peachtree Communities [Member] | |||
Assets acquired and liabilities assumed | ' | ' | ' |
Inventories | ' | ' | $56,059 |
Prepaid expenses and other assets | ' | ' | 689 |
Amortizable intangible assets | ' | ' | 2,500 |
Goodwill | 13,249 | 479 | 7,919 |
Total assets | ' | ' | 67,167 |
Accounts payable | ' | ' | 14,811 |
Total liabilities | ' | ' | $14,811 |