Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 23, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Century Communities, Inc. | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 0001576940 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Amendment Flag | false | |
Document Type | 10-Q | |
Trading Symbol | ccs | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 30,317,457 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 38,115 | $ 32,902 |
Cash held in escrow | 24,664 | 24,344 |
Accounts receivable | 12,436 | 13,464 |
Inventories | 1,943,792 | 1,848,243 |
Mortgage loans held for sale | 98,591 | 114,074 |
Prepaid expenses and other assets | 123,248 | 138,717 |
Property and equipment, net | 33,471 | 33,258 |
Deferred tax assets, net | 13,591 | 13,763 |
Amortizable intangible assets, net | 4,762 | 5,095 |
Goodwill | 30,395 | 30,395 |
Total assets | 2,323,065 | 2,254,255 |
Liabilities: | ||
Accounts payable | 74,075 | 89,907 |
Accrued expenses and other liabilities | 208,846 | 213,157 |
Notes payable | 786,872 | 784,777 |
Revolving line of credit | 287,000 | 202,500 |
Mortgage repurchase facility | 90,866 | 104,555 |
Total liabilities | 1,447,659 | 1,394,896 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding | ||
Common stock, $0.01 par value, 100,000,000 shares authorized, 30,304,081 and 30,154,791 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 303 | 302 |
Additional paid-in capital | 593,966 | 595,037 |
Retained earnings | 281,137 | 264,020 |
Total stockholders' equity | 875,406 | 859,359 |
Total liabilities and stockholders' equity | $ 2,323,065 | $ 2,254,255 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 50,000,000 | 50,000,000 |
Preferred stock shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 30,304,081 | 30,154,791 |
Common stock shares outstanding | 30,304,081 | 30,154,791 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 533,057 | $ 401,846 |
Cost of revenues | ||
Selling, general and administrative | (68,936) | (56,522) |
Acquisition expense | (173) | |
Equity in income of unconsolidated subsidiaries | 3,168 | |
Other income (expense) | 76 | (357) |
Income before income tax expense | 22,997 | 23,107 |
Income tax expense | (5,880) | (3,088) |
Net income | $ 17,117 | $ 20,019 |
Earnings per share: | ||
Basic | $ 0.57 | $ 0.68 |
Diluted | $ 0.56 | $ 0.67 |
Weighted average common shares outstanding: | ||
Basic | 30,203,243 | 29,515,531 |
Diluted | 30,444,276 | 29,833,729 |
Home Sales [Member] | ||
Revenues | ||
Total revenues | $ 523,302 | $ 394,831 |
Cost of revenues | ||
Cost of revenues | (433,757) | (319,583) |
Land Sales And Other [Member] | ||
Revenues | ||
Total revenues | 1,355 | 1,459 |
Cost of revenues | ||
Cost of revenues | (614) | (877) |
Homebuilding [Member] | ||
Revenues | ||
Total revenues | 524,657 | 396,290 |
Cost of revenues | ||
Cost of revenues | (434,371) | (320,460) |
Financial Services [Member] | ||
Revenues | ||
Total revenues | 8,400 | 5,556 |
Cost of revenues | ||
Cost of revenues | $ (6,829) | $ (4,395) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities | ||
Net income | $ 17,117 | $ 20,019 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 3,074 | 2,726 |
Stock-based compensation expense | 3,534 | 2,516 |
Deferred income taxes | 172 | (2,808) |
Distributions from unconsolidated subsidiaries | 3,460 | |
Equity in income of unconsolidated subsidiaries | (3,168) | |
(Gain) loss on disposition of assets | 358 | 259 |
Changes in assets and liabilities: | ||
Cash held in escrow | (320) | 16,188 |
Accounts receivable | 1,028 | 994 |
Inventories | (69,106) | (82,377) |
Prepaid expenses and other assets | (2,659) | 56 |
Accounts payable | (15,831) | (1,637) |
Accrued expenses and other liabilities | (11,296) | (12,947) |
Mortgage loans held for sale | 14,529 | 12,148 |
Net cash used in operating activities | (59,400) | (44,571) |
Investing activities | ||
Purchases of property and equipment | (3,270) | (2,370) |
Other investing activities | (14) | 295 |
Net cash used in investing activities | (3,284) | (2,075) |
Financing activities | ||
Borrowings under revolving credit facilities | 288,800 | 60,000 |
Payments on revolving credit facilities | (204,300) | (60,000) |
Proceeds from issuance of insurance premium notes and other | 9,301 | |
Principal payments on notes payable | (7,716) | |
Net proceeds from mortgage repurchase facilities | (13,689) | (11,307) |
Net proceeds from issuances of common stock | 5,021 | |
Repurchases of common stock upon vesting of stock based compensation | (3,166) | (4,790) |
Repurchases of common stock under our stock repurchase program | (1,439) | |
Net cash provided by (used in) financing activities | 67,791 | (11,076) |
Net increase (decrease) | 5,107 | (57,722) |
Cash and cash equivalents and Restricted cash, Beginning of period | 36,441 | 93,713 |
Cash and cash equivalents and Restricted cash, End of period | 41,548 | 35,991 |
Supplemental cash flow disclosure | ||
Cash paid for income taxes | 606 | |
Cash and cash equivalents and Restricted cash | ||
Cash and cash equivalents | 38,115 | 29,986 |
Restricted cash (Note 6) | 3,433 | 6,005 |
Cash and cash equivalents and Restricted cash, End of period | $ 41,548 | $ 35,991 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance at Dec. 31, 2017 | $ 295 | $ 566,790 | $ 168,148 | $ 735,233 |
Beginning balance (in shares) at Dec. 31, 2017 | 29,503 | |||
Issuance of common stock | $ 3 | 5,018 | 5,021 | |
Issuance of common stock, shares | 446 | |||
Repurchase of common stock upon vesting of restricted stock awards | (4,788) | (4,788) | ||
Repurchase of common stock upon vesting of restricted stock awards, shares | (159) | |||
Stock-based compensation expense | 2,516 | 2,516 | ||
Net income | 20,019 | 20,019 | ||
Ending balance at Mar. 31, 2018 | $ 298 | 569,536 | 187,584 | 757,418 |
Ending balance (in shares) at Mar. 31, 2018 | 29,790 | |||
Adoption of ASC 606 | (583) | (583) | ||
Beginning balance at Dec. 31, 2018 | $ 302 | 595,037 | 264,020 | 859,359 |
Beginning balance (in shares) at Dec. 31, 2018 | 30,155 | |||
Repurchase of common stock | (1,438) | (1,438) | ||
Repurchase of common stock, shares | (83) | |||
Vesting of restricted stock units | $ 1 | (3,167) | (3,166) | |
Vesting of restricted stock units, shares | 232 | |||
Stock-based compensation expense | 3,534 | 3,534 | ||
Net income | 17,117 | 17,117 | ||
Ending balance at Mar. 31, 2019 | $ 303 | $ 593,966 | $ 281,137 | $ 875,406 |
Ending balance (in shares) at Mar. 31, 2019 | 30,304 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land. We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand solely targets first time homebuyers, sells homes through retail studios and the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes. Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment. On June 14, 2018, we acquired the remaining 50% ownership interest in WJH, LLC (which we refer to as “WJH” or “Wade Jurney Homes”) for $37.5 million. WJH specializes in providing single family homes for first time buyers. On the acquisition date, WJH had operations in Alabama, Florida, Georgia, North Carolina and South Carolina. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the o pinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our 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, 2018, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019. Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. 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 Adopted Accounting Standards Leases The Financial Accounting Standards Board (which we refer to as “FASB”) issued ASC 842, Leases (which we refer to as “ASC 842”) which requires the recognition of lease assets and lease liabilities by lessees for most leases. ASC 842 is effective for the Company beginning January 1, 2019 and interim periods within the annual period. We adopted ASC 842 under a modified retrospective approach using the option to apply the transition provisions on the effective date January 1, 2019. The modified retrospective approach allows the Company to carryforward our historical lease classification, and to present historical periods under legacy lease accounting guidance. The Company’s leases primarily consist of leases for office space, and computer and office equipment where we are the lessee. ASC 842 includes several practical expedients which we elected upon adoption including to (a) not reassess the lease classification for any expired or existing leases and (b) not reassess whether previously capitalized initial direct costs qualify for capitalization under ASC 842. Additionally, we elected to utilize hindsight when determining the lease term. The adoption of ASC 842 resulted in the establishment of a right of use asset of $17.7 million and a lease liability of $ 18.7 million on our consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not impact stockholders’ equity. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (which we refer to as “ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 changes the probable threshold for initial recognition of a credit loss in current GAAP to a model that reflects an entity’s current estimate of all expected credit losses. ASU 2016-13 is effective for our interim and annual reporting periods beginning January 1, 2020. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements |
Reporting Segments
Reporting Segments | 3 Months Ended |
Mar. 31, 2019 | |
Reporting Segments [Abstract] | |
Reporting Segments | 2. Reporting Segments Our homebuilding operations are engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in 15 states. We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand is managed by geographic location, and each of our four geographic regions targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Each of our four geographic regions is considered a separate operating segment. Our Wade Jurney Homes brand solely targets first time homebuyers, sells homes through retail studios and the internet, and provides no option or upgrade selections. Our Wade Jurney Homes brand currently has operations in ten states and is managed separately from our four geographic regions, accordingly, it is considered a separate operating segment. The management of our four geographic regions and Wade Jurney Homes reports to our chief operating decision makers (which we refer to as “CODMs”), the Co-Chief Executive Officers of our Company. The CODMs review the results of our operations, including total revenue and income before income tax expense to determine profitability and to allocate resources. Accordingly, we have presented our homebuilding operations as the following five reportable segments: · West (California and Washington) · Mountain (Colorado, Nevada and Utah) · Texas · Southeast (Georgia, North Carolina, South Carolina and Tennessee) · Wade Jurney Homes (Alabama, Arizona, Florida, Georgia, Indiana, North Carolina, Ohio, South Carolina, Tennessee, and Texas) We have also identified our Financial Services operations, which provide mortgage, title, and insurance services to our homebuyers, as a sixth reportable segment. Our Corporate operations are a non-operating segment, as it serves to support our homebuilding, and to a lesser extent our financial services operations, through functions, such as our executive, finance, treasury, human resources, accounting and legal departments. The following table summarizes total revenue and income before income tax expense by segment (in thousands): Three months ended March 31, 2019 2018 Revenue: West $ 112,120 $ 118,920 Mountain 159,666 145,493 Texas 50,486 38,028 Southeast 112,812 93,849 Wade Jurney Homes 89,573 — Financial Services 8,400 5,556 Corporate — — Total revenue $ 533,057 $ 401,846 Income (loss) before income tax expense: West $ 8,648 $ 9,869 Mountain 19,308 17,923 Texas 3,749 1,808 Southeast 5,739 4,681 Wade Jurney Homes 3,973 — Financial Services 1,590 1,161 Corporate (20,010) (12,335) Total income before income tax expense $ 22,997 $ 23,107 The following table summarizes total assets by operating segment (in thousands): March 31, December 31, 2019 2018 West $ 541,455 $ 502,381 Mountain 636,258 621,757 Texas 217,538 209,550 Southeast 441,454 448,681 Wade Jurney 235,126 204,925 Financial Services 142,633 146,710 Corporate 108,601 120,251 Total assets $ 2,323,065 $ 2,254,255 Corporate assets primarily include certain cash and cash equivalents, certain property and equipment, prepaid insurance, and deferred financing costs on our revolving line of credit. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations WJH, LLC - Wade Jurney Homes On June 14, 2018, we acquired the remaining 50% ownership interest in WJH for $37.5 million, whereby WJH became a 100% owned subsidiary of the Company. We initially acquired a 50% ownership interest in WJH in November 2016 as part of a joint venture, which was accounted for under the equity method of accounting. Our Wade Jurney Homes brand solely targets first time homebuyers in markets which are traditionally underserved by new homebuilders, sells homes through retail studios and the internet, and provides no option or upgrade selections. The acquired assets primarily include homes under construction that are in various stages of completion and are geographically dispersed. We determined that the fair value of the gross assets acquired was not concentrated in a single identifiable asset or group of similar identifiable assets. 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 $0.4 million in acquisition costs. Authoritative guidance on accounting for business combinations requires that an acquirer re-measure its previously held equity interest in the acquisition at its acquisition date fair value and recognize the resulting gain or loss in earnings. As such, we valued our previously held equity interest in WJH at $35.6 million, which was inclusive of an estimated discount for lack of control of $1.9 million, and recognized a gain of $7.2 million during the year ended December 31, 2018. The following table outlines the total consideration transferred, inclusive of cash acquired and the fair value of our previously held equity interest (in thousands): Cash consideration transferred for 50% ownership interest $ 37,500 Previously held equity interest acquisition date fair value 35,625 Net assets acquired $ 73,125 The following table summarizes our estimates of the assets acquired and liabilities assumed as of the acquisition date (in thousands): Cash and cash equivalents $ 9,464 Cash held in escrow 260 Accounts receivable 1,042 Inventories 156,828 Prepaid expenses and other assets 7,710 Amortizable intangible assets, net 3,600 Goodwill 3,317 $ 182,221 Accounts payable $ 12,516 Accrued expenses and other liabilities 2,349 Total senior notes and revolving line of credit 94,231 Total liabilities 109,096 Fair value of assets acquired $ 73,125 Acquired inventories consist primarily of work in process inventories. We estimated the fair value of acquired work in process inventories based upon the stage of production of each unit and a gross margin that we believe a market participant would require to complete the remaining development and requisite selling efforts. The stage of production, as of the acquisition date, ranged from recently started lots to fully completed single family residences. Amortizable intangible assets include acquired trade names and a non-compete agreement, which were estimated to have fair values of $3.3 million and $0.3 million, respectively, and are amortized over 10 years and 2 years, respectively. We determined that WJH’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. WJH’s results of operations, which include homebuilding revenues of $89.6 million and income before tax inclusive of purchase price accounting, of $4.0 million are included in our accompanying Consolidated Statement of Operations for the three months ended March 31, 2019. Pro Forma Financial Information Pro forma revenue and income before tax expense for the quarter ended March 31, 2018 gives effect to the results of the acquisition of WJH. The effect of the WJH acquisition is reflected as though the acquisition date was as of January 1, 2018. Unaudited pro forma income before tax expense adjusts the operating results of WJH to reflect the additional costs that would have been recorded assuming the fair value adjustments had been applied as of the beginning of the year preceding the year of the acquisition and excludes acquisition expense incurred related to the transactions. Three months ended March 31, 2018 Total revenues $ 474,452 Income before tax expense $ 23,113 Tax expense (3,086) Net income $ 20,027 Less: Undistributed earnings allocated to participating securities (49) Numerator for basic and diluted pro forma EPS $ 19,978 Pro forma weighted average shares-basic 29,515,531 Pro forma weighted average shares-diluted 29,833,729 Pro forma basic EPS $ 0.68 Pro forma diluted EPS $ 0.67 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2019 | |
Inventory [Abstract] | |
Inventory | 4. Inventories Inventories included the following (in thousands): March 31, December 31, 2019 2018 Homes under construction $ 989,153 $ 1,073,682 Land and land development 895,518 720,719 Capitalized interest 59,121 53,842 Total inventories $ 1,943,792 $ 1,848,243 |
Financial Services
Financial Services | 3 Months Ended |
Mar. 31, 2019 | |
Financial Services [Abstract] | |
Financial Services | 5. Financial Services Our Financial Services are principally comprised of our mortgage lending operations, Inspire Home Loans, Inc. (which we refer to as “Inspire”). Inspire, is a full-service mortgage lender and primarily originates mortgage loans for our homebuyers. Inspire sells substantially all of the loans it originates and their related servicing rights in the secondary mortgage market within a short period of time after origination, generally within 30 days. Inspire primarily finances these loans under its mortgage repurchase facilities. Mortgage loans in process for which interest rates were committed to borrowers totaled approximately $45.2 million and $26.2 million at March 31, 2019 and December 31, 2018, respectively, and carried a weighted average interest rate of approximately 4.4% , and 4.7% , respectively. As of March 31, 2019 and December 31, 2018, Inspire had mortgage loans held for sale with an aggregate fair value of $98.6 million and $114.1 million, respectively, and an aggregate outstanding principal balance of $93.8 million and $108.0 million, respectively. Interest rate risks related to these obligations are mitigated by the preselling of loans to investors or through our interest rate hedging program. Mortgage loans held-for-sale, including the rights to service the mortgage loans, as well as the derivative instrument used to economically hedge our interest rate risk, which are typically forward commitments on mortgage backed securities, are carried at fair value and changes in fair value are reflected in Financial Services Revenue on the Consolidated Statement of Operations. Management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses and Other Assets [Abstract] | |
Prepaid Expenses and Other Assets | 6. Prepaid Expenses and Other Assets Prepaid expenses and other assets included the following (in thousands): March 31, December 31, 2019 2018 Prepaid insurance $ 31,780 $ 20,226 Lot option and escrow deposits 46,070 51,038 Performance deposits 6,626 4,552 Deferred financing costs revolving line of credit, net 4,226 4,155 Restricted cash 3,433 3,539 Secured note receivable 2,700 4,947 Right of use assets 17,254 — Insurance receivable and other 11,159 50,260 Total prepaid expenses and other assets $ 123,248 $ 138,717 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | 7. Accrued Expenses and Other Liabilities Accrued expenses and other liabilities included the following (in thousands): March 31, December 31, 2019 2018 Earnest money deposits $ 12,922 $ 13,990 Warranty reserve 8,633 7,970 Accrued compensation costs 17,259 29,770 Land development and home construction accruals 118,653 77,748 Accrued interest 16,583 15,636 Lease liabilities - operating leases 18,184 — Income taxes payable 3,638 — Liability for product financing arrangements and other 12,974 68,043 Total accrued expenses and other liabilities $ 208,846 $ 213,157 |
Warranties
Warranties | 3 Months Ended |
Mar. 31, 2019 | |
Warranties [Abstract] | |
Warranties | 8. Warranties Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in Accrued expenses and other liabilities on the Consolidated Balance Sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through an internal model that incorporates historical payment trends and adjust the amounts recorded if necessary. We increased our warranty reserve by $22 thousand during the three months ended March 31, 2019, compared to a $45 thousand decrease during the same period in 2018. This adjustment is included as a reduction to Cost of home sales revenues on our Consolidated Statements of Operations. Changes in our warranty accrual are detailed in the table below (in thousands ): Three months ended March 31, 2019 2018 Beginning balance $ 7,970 $ 8,531 Warranty expense provisions 1,661 1,434 Payments (1,020) (959) Warranty adjustment 22 (45) Ending balance $ 8,633 $ 8,961 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Debt | 9. Debt Our outstanding debt obligations included the following as of March 31, 2019 and December 31, 2018 (in thousands): March 31, December 31, 2019 2018 6.875% senior notes, due May 2022 (1) $ 380,900 $ 380,567 5.875% senior notes, due July 2025 (1) 395,591 395,415 Insurance premium notes and other financing obligations 10,381 8,795 Senior notes payable 786,872 784,777 Revolving line of credit, due April 2022 287,000 202,500 Mortgage repurchase facility 90,866 104,555 Total debt $ 1,164,738 $ 1,091,832 (1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. Revolving L ine of C redit We are party to an Amended and Restated Credit Agreement with Texas Capital Bank, National Association, as Administrative Agent and L/C Issuer, the lenders party thereto and certain of our subsidiaries, which, as amended most recently on February 12, 2019, provides us with a revolving line of credit of up to $640.0 million, and unless terminated earlier, will mature on April 30, 2022 . Under the terms of the Amended and Restated Credit Agreement, we may request a twelve-month extension of the maturity date. Our obligations under the Amended and Restated Credit Agreement are guaranteed by certain of our subsidiaries. The Amended and Restated Credit Agreement contains customary affirmative and negative covenants (including limitations on our ability to grant liens, incur additional debt, pay dividends, redeem our common stock, make certain investments and engage in certain merger, consolidation or asset sale transactions), as well as customary events of default. These covenants are measured as defined in the Amended and Restated Credit Agreement and are reported to the lenders quarterly. Borrowings under the Amended and Restated Credit Agreement bear interest at a floating rate equal to the adjusted Eurodollar Rate plus an applicable margin between 2.60% and 3.10% per annum, or, in the Administrative Agent’s discretion, a base rate plus an applicable margin between 1.60% and 2.10% per annum. As of March 31, 2019, we had $287.0 million outstanding under the credit facility, leaving $353.0 million in availability and were in compliance with all covenants. Mortgage Repurchase Facilities – Financial Services On May 4, 2018 and September 14, 2018, Inspire entered into mortgage warehouse facilities, with Comerica Bank, and J.P. Morgan, respectively. The mortgage warehouse lines of credit (which we refer to as the “Repurchase Facilities”) provide Inspire with uncommitted repurchase facilities of up to $140 million, secured by the mortgage loans financed thereunder. Amounts outstanding under the Repurchase Facilities are not guaranteed by us or any of our subsidiaries and the agreements contain various affirmative and negative covenants applicable to Inspire that are customary for arrangements of this type. As of March 31, 2019, we had $90.9 million outstanding under these Repurchase Facilities and were in compliance with all covenants thereunder. No assurance can be provided, however, that we will remain in compliance with the covenants or have continued access to these facilities or substitute or replacement facilities in an amount sufficient to fund our mortgage lending business. During the three months ended March 31, 2019 and 2018, we incurred interest expense on our Repurchase Facilities of $0.6 million and $0.2 million, respectively, which are included in financial services costs on our Consolidated Statements of Operations . |
Interest
Interest | 3 Months Ended |
Mar. 31, 2019 | |
Interest [Abstract] | |
Interest | 10. 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 months ended March 31, 2019 and 2018, we capitalized all interest costs incurred during these periods, except for interest incurred on our Mortgage repurchase facilities. Our interest costs are as follows (in thousands): Three months ended March 31, 2019 2018 Interest capitalized beginning of period $ 53,842 41,762 Interest capitalized during period 17,866 13,357 Less: capitalized interest in cost of sales (12,587) (8,959) Interest capitalized end of period $ 59,121 46,160 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 11 . Income Taxes At the end of each interim period we are required to estimate our annual effective tax rate for the fiscal year, and to use that rate to provide for income taxes for the current year-to-date reporting period. Our 2019 estimated annual effective tax rate of 26.7% is driven by our blended federal and state statutory rate of 24.9% , and certain other permanent differences between GAAP and tax which increased our rate by 1.8% . For the three months ended March 31, 2019 our estimated annual rate of 26.7% was impacted by discrete items which had a net impact of decreasing our rate by 1.2% , including excess tax benefits for vested stock-based compensation. For the three months ended March 31, 2019 and 2018, we recorded income tax expense of $5.9 million and $3.1 million, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 12. Fair Value Disclosures Accounting Standards Codification Topic 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 the 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): March 31, 2019 December 31, 2018 Hierarchy Carrying Fair Value Carrying Fair Value Secured notes receivable (1) Level 2 $ 2,700 $ 2,616 $ 4,947 $ 4,830 Mortgage loans held for sale (2) Level 2 $ 98,591 $ 98,591 $ 114,074 $ 114,074 6.875% senior notes (3) Level 2 $ 380,900 $ 385,308 $ 380,567 $ 367,618 5.875 % senior notes (3) Level 2 $ 395,591 $ 373,591 $ 395,415 $ 351,414 3.278% insurance premium notes (4) Level 2 $ 10,381 $ 10,381 $ 6,475 $ 6,475 Revolving line of credit (4) Level 3 $ 287,000 $ 287,000 $ 202,500 $ 202,500 Other financing obligation (4) Level 2 $ — $ — $ 2,320 $ 2,320 Mortgage repurchase facilities (4) Level 2 $ 90,866 $ 90,866 $ 104,555 $ 104,555 (1) Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates that considered the underlying risks of the note. (2) The mortgage loans held for sale are carried at fair value, which was based on quoted market prices for those committed mortgage loans. (3) Estimated fair value of the senior notes incorporated recent trading activity in inactive markets. (4) Carrying amount approximates fair value due to short-term nature and interest rate terms. The carrying amount of cash and cash equivalents approximates fair value. Non-financial assets and liabilities are measured at fair value when acquired in a business combination. Long-lived assets determined to be impaired are measured at fair value. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation During the three months ended March 31, 2019, we granted performance share units (which we refer to as “PSUs”) covering up to 0.3 million shares of common stock, assuming maximum level of performance, with a grant date fair value of $22.01 per share that are subject to both service and performance vesting conditions. The quantity of shares that will vest under the PSUs ranges from 0% to 250% of a targeted number of shares for each participant and will be determined based on an achievement of a three -year pre-tax income performance goal. During the three months ended March 31, 2019, we also granted restricted stock units (which we refer to as “RSUs”) covering 0.5 million shares of common stock with a grant date fair value of $23.76 per share that vest over a three -year period. As of March 31, 2019, we had no remaining unvested restricted stock awards (which we refer to as “RSAs”) outstanding. A summary of our outstanding RSUs and PSUs, assuming maximum level of performance, are as follows (in thousands, except years): As of March 31, 2019 Unvested units 1,326 Unrecognized compensation cost $ 24,442 Period to recognize compensation cost 2.0 years During the three months ended March 31, 2019 and 2018 , we recognized stock-based compensation expense of $3.5 million and $2.5 million, respectively. Stock-based compensation expense is included in selling, general, and administrative on our Consolidated Statements of Operations. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 14. Stockholders’ Equity Our authorized capital stock consists of 100.0 million shares of common stock, par value $ 0.01 per share, and 50.0 million shares of preferred stock, par value $ 0.01 per share. As of March 31, 2019 and December 31, 2018, there were 30.3 million and 30.2 million shares of common stock issued and outstanding, respectively . On May 10, 2017, our stockholders approved the adoption of the Century Communities, Inc. 2017 Omnibus Incentive Plan (which we refer to as our “2017 Incentive Plan”), which replaced our First Amended & Restated 2013 Long-Term Incentive Plan. We had reserved a total of 1.8 million shares of our common stock for issuance under our First Amended & Restated 2013 Long-Term Incentive Plan, of which approximately 0.6 million shares rolled over into the 2017 Incentive Plan when it became effective. We issued 0.4 million shares of common stock related to the vesting of RSUs during the three months ended March 31, 2019 . As of March 31, 2019, approximately 0.2 million shares remained available for issuance under the 2017 Incentive Plan. On July 3, 2018, we entered into a Distribution Agreement with J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as sales agents pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $100.0 million from time to time through any of the sales agents party thereto in “at-the-market” offerings. This Distribution Agreement, which superseded and replaced a prior similar Distribution Agreement, had $72.7 million available for sale as of March 31, 2019. We did no t sell or issue any shares of our common stock during the three months ended March 31, 2019. During the three months ended March 31, 2018, we sold and issued an aggregate of 0.2 million shares of our common stock under a prior Distribution Agreement, which provided net proceeds of $5.0 million, and in connection with such sales, paid total commissions and fees to the Sales Agents of $0.1 million . The Distribution Agreement will remain in full force and effect until terminated by either party pursuant to the terms of the agreement or such date that the maximum offering amount has been sold in accordance with the terms of the agreement . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We use the two-class method of calculating EPS as our non-vested RSAs 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. We use the treasury stock method to calculate the dilutive effect of our RSUs and PSUs as these awards do not have participating rights. The following table sets forth the computation of basic and diluted EPS for the three months ended March 31, 2019 and 2018 (in thousands, except share and per share information): Three months ended March 31, 2019 2018 Numerator Net income $ 17,117 $ 20,019 Less: Undistributed earnings allocated to participating securities — (49) Net income allocable to common stockholders $ 17,117 $ 19,970 Denominator Weighted average common shares outstanding - basic 30,203,243 29,515,531 Dilutive effect of restricted stock units 241,033 318,198 Weighted average common shares outstanding - diluted 30,444,276 29,833,729 Earnings per share: Basic $ 0.57 $ 0.68 Diluted $ 0.56 $ 0.67 Stock-based awards are excluded from the calculation of diluted EPS in the event they are subject to unsatisfied performance conditions or are antidilutive. We excluded 0.3 million common unit equivalents from diluted earnings per share during the three months ended March 31, 2019 related to the PSUs granted during the periods. We did no t have any common unit equivalents to exclude from diluted earnings per share during the three months ended March 31, 2018. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Letters of Credit and Performance Bonds In the normal course of business, we post letters of credit and performance bonds related to our land development performance obligations with local municipalities. As of March 31, 2019, and December 31, 2018 , we had $298.0 million and $289.8 million, respectively, in letters of credit and performance bonds issued and outstanding. Litigation We are 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 our 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 Statements of Operations for our estimated loss. Under various insurance policies, we have the ability to recoup costs in excess of applicable self-insured retentions. Estimates of such amounts are recorded in other assets when recovery is probable. As of December 31, 2018, substantially all of the amounts reflected in Insurance receivable and other were related to construction claims, which were settled and amounts collected under the applicable insurance policies during the quarter ended March 31, 2019. We do not believe that the ultimate resolution of any claims and lawsuits will have a material adverse effect upon our consolidated financial position, results of operations, or cash flows. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 17. Leases Under ASC 842, the Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. We primarily enter into operating leases for the right to use office space, and computer and office equipment, which have lease terms that generally range from 1 to 7 years and often include one or more options to renew. We include renewal terms in the lease term when it is reasonably certain that we will exercise the option. For leases entered into after January 1, 2019, we establish a right of use asset and a lease liability at the co mmencement date of the lease based on the present value of future minimum lease payments. As the rate implicit in each lease is not readily determinable, we utilize our incremental borrowing rate in determining the present value of future minimum payments. Our incremental borrowing rate is determined based on information available at the commencement date. We account for the lease components and non-lease components as a single lease component. As of March 31, 2019, the Company had $17.3 million and $18.2 million recognized as a r ight of use asset and l ease liability, respectively, which are presented on the consolidated balance sheet within Prepaid expenses and other assets and Accrued expenses and other liabilities, respectively. The Company has entered into various short-term operating leases, primarily for marketing billboards, with an initial term of twelve months or less. These leases are not recorded on the Company's balance sheet. Under both ASC 840 and ASC 842, operating lease expense is recognized on a straight-line basis over the lease term and was $1.4 million and $0.9 million for the quarters ended March 31, 2019 and 2018, respectively. Information related to the Company’s right of use asset and lease liability were as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for operating lease liabilities $ 1,311 Right-of-use assets obtained in exchange for new operating lease obligations $ 847 Weighted-average remaining lease term 4.29 years Weighted-average discount rate 6.39 % Maturities of lease liabilities as of March 31, 2019 were as follows (in thousands): Due in 12 month period ended March 31, 2020 $ 5,492 2021 5,023 2022 4,027 2023 2,861 2024 2,258 Thereafter 1,251 Total 20,912 Less: discount (2,728) Total lease liabilities $ 18,184 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | 18. Supplemental Guarantor Information Our 6.875% senior notes due 2022 and 5.875% senior notes due 2025 (which we collectively refer to as our “Senior Notes ”) are our unsecured senior obligations and are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by substantially all of our direct and indirect wholly-owned operating subsidiaries (which we refer to collectively as “Guarantors”). Each of the indentures governing our Senior Notes provides that the guarantees of a Guarantor will be automatically and unconditionally released and discharged: (1) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the equity interests of such Guarantor after which the applicable Guarantor is no longer a “Restricted Subsidiary” (as defined in the respective indentures ), which sale, transfer, exchange or other disposition does not constitute an “Asset Sale” (as defined in the respective indentures ) or is made in compliance with applicable provisions of the applicable indenture ; (2) upon any sale, transfer, exchange or other disposition (by merger, consolidation or otherwise) of all of the assets of such Guarantor, which sale, transfer, exchange or other disposition does not constitute an Asset Sale or is made in compliance with applicable provisions of the applicable indenture ; provided, that after such sale, transfer, exchange or other disposition, such Guarantor is an “Immaterial Subsidiary” (as defined in the respective indentures ); (3) unless a default has occurred and is continuing, upon the release or discharge of such Guarantor from its guarantee of any indebtedness for borrowed money of the Company and the Guarantors so long as such Guarantor would not then otherwise be required to provide a guarantee pursuant to the applicable indenture ; provided that if such Guarantor has incurred any indebtedness in reliance on its status as a Guarantor in compliance with applicable provisions of the applicable Indenture, such Guarantor’s obligations under such indebtedness, as the case may be, so incurred are satisfied in full and discharged or are otherwise permitted to be incurred by a Restricted Subsidiary (other than a Guarantor) in compliance with applicable provisions of the applicable Indenture; (4) upon the designation of such Guarantor as an “Unrestricted Subsidiary” (as defined in the respective Indentures), in accordance with the applicable indenture ; (5) if the Company exercises its legal defeasance option or covenant defeasance option under the applicable indenture or if the obligations of the Company and the Guarantors are discharged in compliance with applicable provisions of the applicable indenture , upon such exercise or discharge; or (6) in connection with the dissolution of such Guarantor under applicable law in accordance with the applicable indenture . As the guarantees were made in connection with exchange offers effected in February 2015, October 2015 and April 2017 and the issuance of the 5.875% senior notes due 2025 , the Guarantors’ condensed financial information is presented as if the guarantees existed during the periods presented. If any Guarantors are released from the guarantees in future periods, the changes are reflected prospectively. We have determined that separate, full financial statements of the Guarantors would not be material to investors, and accordingly, supplemental financial information is presented below: Supplemental Condensed Consolidated Balance Sheet As of March 31, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 643 2,596 34,876 — $ 38,115 Cash held in escrow — 24,664 — — 24,664 Accounts receivable 3,627 8,754 55 — 12,436 Investment in consolidated subsidiaries 1,928,076 — — (1,928,076) — Inventories — 1,943,792 — — 1,943,792 Mortgage loans held for sale — — 98,591 — 98,591 Prepaid expenses and other assets 13,807 101,649 7,792 — 123,248 Deferred tax assets, net 13,591 — — — 13,591 Property and equipment, net 13,966 18,578 927 — 33,471 Amortizable intangible assets, net — 4,762 — — 4,762 Goodwill — 30,395 — — 30,395 Total assets $ 1,973,710 $ 2,135,190 $ 142,241 $ (1,928,076) $ 2,323,065 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 835 73,002 238 — $ 74,075 Accrued expenses and other liabilities 33,978 166,029 8,839 — 208,846 Notes payable 776,491 10,381 — — 786,872 Revolving line of credit 287,000 — — — 287,000 Mortgage repurchase facilities — — 90,866 — 90,866 Total liabilities 1,098,304 249,412 99,943 — 1,447,659 Stockholders’ equity: 875,406 1,885,778 42,298 (1,928,076) 875,406 Total liabilities and stockholders’ equity $ 1,973,710 $ 2,135,190 $ 142,241 $ (1,928,076) $ 2,323,065 Supplemental Condensed Consolidated Balance Sheet As of December 31, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 2,183 2,101 28,618 — $ 32,902 Cash held in escrow — 24,344 — — 24,344 Accounts receivable 6,117 7,424 (77) — 13,464 Investment in consolidated subsidiaries 1,827,456 — — (1,827,456) — Inventories — 1,848,243 — — 1,848,243 Mortgage loans held for sale — — 114,074 — 114,074 Prepaid expenses and other assets 51,177 85,224 2,316 — 138,717 Deferred tax assets, net 13,763 — — — 13,763 Property and equipment, net 13,274 18,989 995 — 33,258 Amortizable intangible assets, net — 5,095 — — 5,095 Goodwill — 30,395 — — 30,395 Total assets $ 1,913,970 $ 2,021,815 $ 145,926 $ (1,827,456) $ 2,254,255 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 623 88,627 657 — $ 89,907 Accrued expenses and other liabilities 75,506 131,548 6,103 — 213,157 Notes payable 775,982 8,795 — — 784,777 Revolving line of credit 202,500 — — — 202,500 Mortgage repurchase facilities — — 104,555 — 104,555 Total liabilities 1,054,611 228,970 111,315 — 1,394,896 Stockholders’ equity: 859,359 1,792,845 34,611 (1,827,456) 859,359 Total liabilities and stockholders’ equity $ 1,913,970 $ 2,021,815 $ 145,926 $ (1,827,456) $ 2,254,255 Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2019 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 523,302 — — $ 523,302 Land sales and other revenues — 1,355 — — 1,355 — 524,657 — — 524,657 Financial services revenue — — 8,400 8,400 Total revenues — 524,657 8,400 — 533,057 Homebuilding cost of revenues Cost of home sales revenues — (433,757) — — (433,757) Cost of land sales and other revenues — (614) — — (614) — (434,371) — — (434,371) Financial services costs — — (6,829) (6,829) Selling, general and administrative (18,655) (50,281) — — (68,936) Acquisition expense — — — — — Equity in earnings from consolidated subsidiaries 31,163 — — (31,163) — Equity in income of unconsolidated subsidiaries — — — — — Other income (expense) 101 (45) 20 — 76 Income before income tax expense 12,609 39,960 1,591 (31,163) 22,997 Income tax expense 4,508 (9,990) (398) — (5,880) Net income $ 17,117 $ 29,970 $ 1,193 $ (31,163) $ 17,117 Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2018 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — $ 394,831 $ — $ — $ 394,831 Land sales and other revenues — 1,459 — — 1,459 — 396,290 — — 396,290 Financial services revenue — — 5,556 — 5,556 Total revenues — 396,290 5,556 — 401,846 Homebuilding cost of revenues Cost of home sales revenues — (319,583) — — (319,583) Cost of land sales and other revenues — (877) — — (877) — (320,460) — — (320,460) Financial services costs — — (4,395) — (4,395) Selling, general and administrative (15,462) (41,060) — — (56,522) Acquisition expense (173) — — — (173) Equity in earnings from consolidated subsidiaries 26,497 — — (26,497) — Equity in income of unconsolidated subsidiaries 3,168 — — — 3,168 Other income (expense) (233) (124) — — (357) Income before income tax expense 13,797 34,646 1,161 (26,497) 23,107 Income tax expense 6,222 (9,008) (302) — (3,088) Net income $ 20,019 $ 25,638 $ 859 $ (26,497) $ 20,019 Supplemental Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ (36,731) (36,216) 13,547 — $ (59,400) Net cash provided by/(used in) investing activities $ (44,704) (2,031) 67 43,384 $ (3,284) Financing activities Borrowings under revolving credit facilities $ 288,800 — — — $ 288,800 Payments on revolving credit facilities (204,300) — — — (204,300) Net proceeds from mortgage repurchase facilities — — (13,689) — (13,689) Proceeds from insurance notes payable — 9,301 — — 9,301 Principal payments on notes payable — (7,716) — — (7,716) Issuance of common stock — — — — — Repurchases of common stock under our stock repurchase program (1,439) — — — (1,439) Repurchases of common stock upon vesting of stock based compensation (3,166) — — — (3,166) Payments from (and advances to) parent/subsidiary — 36,890 6,494 (43,384) — Net cash provided by/(used in) financing activities $ 79,895 $ 38,475 $ (7,195) $ (43,384) $ 67,791 Net decrease $ (1,540) $ 228 $ 6,419 $ — $ 5,107 Cash and cash equivalents and Restricted cash Beginning of period $ 2,183 4,006 30,252 — $ 36,441 End of period $ 643 $ 4,234 $ 36,671 $ — $ 41,548 Cash and cash equivalents $ 643 2,596 34,876 — $ 38,115 Restricted Cash — 1,638 1,795 — 3,433 Cash and cash equivalents and Restricted cash $ 643 $ 4,234 $ 36,671 $ — $ 41,548 Supplemental Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ (13,651) (43,713) 12,793 — $ (44,571) Net cash provided by/(used in) investing activities $ (33,265) (1,782) (25) 32,997 $ (2,075) Financing activities Borrowings under revolving credit facilities $ 60,000 — — — $ 60,000 Payments on revolving credit facilities (60,000) — — — (60,000) Net proceeds from mortgage repurchase facilities — — (11,307) — (11,307) Proceeds from insurance notes payable — — — — — Principal payments on notes payable — — — — — Issuance of common stock - taxes for vesting 5,021 — — — 5,021 Repurchases of common stock under our stock repurchase program — — — — — Repurchases of common stock upon vesting of stock based compensation (4,790) — — — (4,790) Payments from (and advances to) parent/subsidiary (584) 29,888 3,693 (32,997) — Net cash provided by/(used in) financing activities $ (353) $ 29,888 $ (7,614) $ (32,997) $ (11,076) Net decrease $ (47,269) $ (15,607) $ 5,154 $ — $ (57,722) Cash and cash equivalents and Restricted cash Beginning of period $ 56,234 28,044 9,435 — $ 93,713 End of period $ 8,965 $ 12,437 $ 14,589 $ — $ 35,991 Cash and cash equivalents $ 8,965 8,039 12,982 — $ 29,986 Restricted Cash — 4,398 1,607 — 6,005 Cash and cash equivalents and Restricted cash $ 8,965 $ 12,437 $ 14,589 $ — $ 35,991 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Century Communities, Inc. (which we refer to as “we,” “CCS,” or the “Company”), together with its subsidiaries, is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes in the States of Alabama, Arizona, California, Colorado, Florida, Georgia, Indiana, Nevada, North Carolina, Ohio, South Carolina, Tennessee, Texas, Utah, and Washington. In many of our projects, in addition to building homes, we are responsible for the entitlement and development of the underlying land. We build and sell homes under our Century Communities and Wade Jurney Homes brands. Our Century Communities brand targets a wide range of buyer profiles including: first time, first and second time move up, and lifestyle homebuyers, and provides our homebuyers with the ability to personalize their homes through certain option and upgrade selections. Our Wade Jurney Homes brand solely targets first time homebuyers, sells homes through retail studios and the internet, and provides no option or upgrade selections. Our homebuilding operations are organized into the following five reportable segments: West, Mountain, Texas, Southeast, and Wade Jurney Homes. Additionally, our indirect wholly-owned subsidiaries, Inspire Home Loans, Inc., Parkway Title, LLC, and IHL Home Insurance Agency, LLC, which provide mortgage, title and insurance services, respectively, to our home buyers have been identified as our Financial Services segment. On June 14, 2018, we acquired the remaining 50% ownership interest in WJH, LLC (which we refer to as “WJH” or “Wade Jurney Homes”) for $37.5 million. WJH specializes in providing single family homes for first time buyers. On the acquisition date, WJH had operations in Alabama, Florida, Georgia, North Carolina and South Carolina. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (which we refer to as “GAAP”) for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (which we refer to as the “SEC”). In the o pinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of our 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, 2018, which are included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 that was filed with the SEC on February 13, 2019. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company, as well as all subsidiaries in which we have a controlling interest, and variable interest entities for which the Company is deemed to be the primary beneficiary. We do not have any variable interest entities in which we are deemed the primary beneficiary. 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 Adopted And Issued Accounting Standards | Recently Adopted Accounting Standards Leases The Financial Accounting Standards Board (which we refer to as “FASB”) issued ASC 842, Leases (which we refer to as “ASC 842”) which requires the recognition of lease assets and lease liabilities by lessees for most leases. ASC 842 is effective for the Company beginning January 1, 2019 and interim periods within the annual period. We adopted ASC 842 under a modified retrospective approach using the option to apply the transition provisions on the effective date January 1, 2019. The modified retrospective approach allows the Company to carryforward our historical lease classification, and to present historical periods under legacy lease accounting guidance. The Company’s leases primarily consist of leases for office space, and computer and office equipment where we are the lessee. ASC 842 includes several practical expedients which we elected upon adoption including to (a) not reassess the lease classification for any expired or existing leases and (b) not reassess whether previously capitalized initial direct costs qualify for capitalization under ASC 842. Additionally, we elected to utilize hindsight when determining the lease term. The adoption of ASC 842 resulted in the establishment of a right of use asset of $17.7 million and a lease liability of $ 18.7 million on our consolidated balance sheet as of January 1, 2019. The adoption of ASC 842 did not impact stockholders’ equity. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (which we refer to as “ASU 2016-13”), which changes the impairment model for most financial assets and certain other instruments. ASU 2016-13 changes the probable threshold for initial recognition of a credit loss in current GAAP to a model that reflects an entity’s current estimate of all expected credit losses. ASU 2016-13 is effective for our interim and annual reporting periods beginning January 1, 2020. We are currently evaluating the impact of ASU 2016-13 on our consolidated financial statements |
Reporting Segments (Tables)
Reporting Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Reporting Segments [Abstract] | |
Schedule Of Total Revenue And Pretax Income By Segment | Three months ended March 31, 2019 2018 Revenue: West $ 112,120 $ 118,920 Mountain 159,666 145,493 Texas 50,486 38,028 Southeast 112,812 93,849 Wade Jurney Homes 89,573 — Financial Services 8,400 5,556 Corporate — — Total revenue $ 533,057 $ 401,846 Income (loss) before income tax expense: West $ 8,648 $ 9,869 Mountain 19,308 17,923 Texas 3,749 1,808 Southeast 5,739 4,681 Wade Jurney Homes 3,973 — Financial Services 1,590 1,161 Corporate (20,010) (12,335) Total income before income tax expense $ 22,997 $ 23,107 |
Schedule Of Total Assets By Segment | March 31, December 31, 2019 2018 West $ 541,455 $ 502,381 Mountain 636,258 621,757 Texas 217,538 209,550 Southeast 441,454 448,681 Wade Jurney 235,126 204,925 Financial Services 142,633 146,710 Corporate 108,601 120,251 Total assets $ 2,323,065 $ 2,254,255 |
Business Combinations (Tables)
Business Combinations (Tables) - Wade Jurney Homes [Member] | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Line Items] | |
Schedule Of Total Consideration Transferred | Cash consideration transferred for 50% ownership interest $ 37,500 Previously held equity interest acquisition date fair value 35,625 Net assets acquired $ 73,125 |
Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed | Cash and cash equivalents $ 9,464 Cash held in escrow 260 Accounts receivable 1,042 Inventories 156,828 Prepaid expenses and other assets 7,710 Amortizable intangible assets, net 3,600 Goodwill 3,317 $ 182,221 Accounts payable $ 12,516 Accrued expenses and other liabilities 2,349 Total senior notes and revolving line of credit 94,231 Total liabilities 109,096 Fair value of assets acquired $ 73,125 |
Pro Forma Financial Information [Abstract] | |
Schedule Of Pro Forma Information | Three months ended March 31, 2018 Total revenues $ 474,452 Income before tax expense $ 23,113 Tax expense (3,086) Net income $ 20,027 Less: Undistributed earnings allocated to participating securities (49) Numerator for basic and diluted pro forma EPS $ 19,978 Pro forma weighted average shares-basic 29,515,531 Pro forma weighted average shares-diluted 29,833,729 Pro forma basic EPS $ 0.68 Pro forma diluted EPS $ 0.67 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory [Abstract] | |
Schedule Of Inventory | March 31, December 31, 2019 2018 Homes under construction $ 989,153 $ 1,073,682 Land and land development 895,518 720,719 Capitalized interest 59,121 53,842 Total inventories $ 1,943,792 $ 1,848,243 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Prepaid Expenses and Other Assets [Abstract] | |
Schedule Of Prepaid Expenses And Other Assets | March 31, December 31, 2019 2018 Prepaid insurance $ 31,780 $ 20,226 Lot option and escrow deposits 46,070 51,038 Performance deposits 6,626 4,552 Deferred financing costs revolving line of credit, net 4,226 4,155 Restricted cash 3,433 3,539 Secured note receivable 2,700 4,947 Right of use assets 17,254 — Insurance receivable and other 11,159 50,260 Total prepaid expenses and other assets $ 123,248 $ 138,717 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule Of Accrued Expenses And Other Liabilities | March 31, December 31, 2019 2018 Earnest money deposits $ 12,922 $ 13,990 Warranty reserve 8,633 7,970 Accrued compensation costs 17,259 29,770 Land development and home construction accruals 118,653 77,748 Accrued interest 16,583 15,636 Lease liabilities - operating leases 18,184 — Income taxes payable 3,638 — Liability for product financing arrangements and other 12,974 68,043 Total accrued expenses and other liabilities $ 208,846 $ 213,157 |
Warranties (Tables)
Warranties (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Warranties [Abstract] | |
Schedule Of Changes In Warranty Accrual | Three months ended March 31, 2019 2018 Beginning balance $ 7,970 $ 8,531 Warranty expense provisions 1,661 1,434 Payments (1,020) (959) Warranty adjustment 22 (45) Ending balance $ 8,633 $ 8,961 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt [Abstract] | |
Schedule Of Outstanding Debt Obligations | March 31, December 31, 2019 2018 6.875% senior notes, due May 2022 (1) $ 380,900 $ 380,567 5.875% senior notes, due July 2025 (1) 395,591 395,415 Insurance premium notes and other financing obligations 10,381 8,795 Senior notes payable 786,872 784,777 Revolving line of credit, due April 2022 287,000 202,500 Mortgage repurchase facility 90,866 104,555 Total debt $ 1,164,738 $ 1,091,832 (1) The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. |
Interest (Tables)
Interest (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Interest [Abstract] | |
Schedule Of Capitalized Interest Costs | Three months ended March 31, 2019 2018 Interest capitalized beginning of period $ 53,842 41,762 Interest capitalized during period 17,866 13,357 Less: capitalized interest in cost of sales (12,587) (8,959) Interest capitalized end of period $ 59,121 46,160 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments | March 31, 2019 December 31, 2018 Hierarchy Carrying Fair Value Carrying Fair Value Secured notes receivable (1) Level 2 $ 2,700 $ 2,616 $ 4,947 $ 4,830 Mortgage loans held for sale (2) Level 2 $ 98,591 $ 98,591 $ 114,074 $ 114,074 6.875% senior notes (3) Level 2 $ 380,900 $ 385,308 $ 380,567 $ 367,618 5.875 % senior notes (3) Level 2 $ 395,591 $ 373,591 $ 395,415 $ 351,414 3.278% insurance premium notes (4) Level 2 $ 10,381 $ 10,381 $ 6,475 $ 6,475 Revolving line of credit (4) Level 3 $ 287,000 $ 287,000 $ 202,500 $ 202,500 Other financing obligation (4) Level 2 $ — $ — $ 2,320 $ 2,320 Mortgage repurchase facilities (4) Level 2 $ 90,866 $ 90,866 $ 104,555 $ 104,555 (1) Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates that considered the underlying risks of the note. (2) The mortgage loans held for sale are carried at fair value, which was based on quoted market prices for those committed mortgage loans. (3) Estimated fair value of the senior notes incorporated recent trading activity in inactive markets. (4) Carrying amount approximates fair value due to short-term nature and interest rate terms. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Summary Of Outstanding Restricted Stock And Performance Stock Units | As of March 31, 2019 Unvested units 1,326 Unrecognized compensation cost $ 24,442 Period to recognize compensation cost 2.0 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three months ended March 31, 2019 2018 Numerator Net income $ 17,117 $ 20,019 Less: Undistributed earnings allocated to participating securities — (49) Net income allocable to common stockholders $ 17,117 $ 19,970 Denominator Weighted average common shares outstanding - basic 30,203,243 29,515,531 Dilutive effect of restricted stock units 241,033 318,198 Weighted average common shares outstanding - diluted 30,444,276 29,833,729 Earnings per share: Basic $ 0.57 $ 0.68 Diluted $ 0.56 $ 0.67 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Information Of Lease Right Of Use Asset And Lease Liability | Three Months Ended March 31, 2019 Cash paid for operating lease liabilities $ 1,311 Right-of-use assets obtained in exchange for new operating lease obligations $ 847 Weighted-average remaining lease term 4.29 years Weighted-average discount rate 6.39 % |
Maturities Of Lease Liabilities | Due in 12 month period ended March 31, 2020 $ 5,492 2021 5,023 2022 4,027 2023 2,861 2024 2,258 Thereafter 1,251 Total 20,912 Less: discount (2,728) Total lease liabilities $ 18,184 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Condensed Consolidated Balance Sheet | Supplemental Condensed Consolidated Balance Sheet As of March 31, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 643 2,596 34,876 — $ 38,115 Cash held in escrow — 24,664 — — 24,664 Accounts receivable 3,627 8,754 55 — 12,436 Investment in consolidated subsidiaries 1,928,076 — — (1,928,076) — Inventories — 1,943,792 — — 1,943,792 Mortgage loans held for sale — — 98,591 — 98,591 Prepaid expenses and other assets 13,807 101,649 7,792 — 123,248 Deferred tax assets, net 13,591 — — — 13,591 Property and equipment, net 13,966 18,578 927 — 33,471 Amortizable intangible assets, net — 4,762 — — 4,762 Goodwill — 30,395 — — 30,395 Total assets $ 1,973,710 $ 2,135,190 $ 142,241 $ (1,928,076) $ 2,323,065 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 835 73,002 238 — $ 74,075 Accrued expenses and other liabilities 33,978 166,029 8,839 — 208,846 Notes payable 776,491 10,381 — — 786,872 Revolving line of credit 287,000 — — — 287,000 Mortgage repurchase facilities — — 90,866 — 90,866 Total liabilities 1,098,304 249,412 99,943 — 1,447,659 Stockholders’ equity: 875,406 1,885,778 42,298 (1,928,076) 875,406 Total liabilities and stockholders’ equity $ 1,973,710 $ 2,135,190 $ 142,241 $ (1,928,076) $ 2,323,065 Supplemental Condensed Consolidated Balance Sheet As of December 31, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 2,183 2,101 28,618 — $ 32,902 Cash held in escrow — 24,344 — — 24,344 Accounts receivable 6,117 7,424 (77) — 13,464 Investment in consolidated subsidiaries 1,827,456 — — (1,827,456) — Inventories — 1,848,243 — — 1,848,243 Mortgage loans held for sale — — 114,074 — 114,074 Prepaid expenses and other assets 51,177 85,224 2,316 — 138,717 Deferred tax assets, net 13,763 — — — 13,763 Property and equipment, net 13,274 18,989 995 — 33,258 Amortizable intangible assets, net — 5,095 — — 5,095 Goodwill — 30,395 — — 30,395 Total assets $ 1,913,970 $ 2,021,815 $ 145,926 $ (1,827,456) $ 2,254,255 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 623 88,627 657 — $ 89,907 Accrued expenses and other liabilities 75,506 131,548 6,103 — 213,157 Notes payable 775,982 8,795 — — 784,777 Revolving line of credit 202,500 — — — 202,500 Mortgage repurchase facilities — — 104,555 — 104,555 Total liabilities 1,054,611 228,970 111,315 — 1,394,896 Stockholders’ equity: 859,359 1,792,845 34,611 (1,827,456) 859,359 Total liabilities and stockholders’ equity $ 1,913,970 $ 2,021,815 $ 145,926 $ (1,827,456) $ 2,254,255 |
Supplemental Condensed Consolidated Statement Of Operations | Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2019 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 523,302 — — $ 523,302 Land sales and other revenues — 1,355 — — 1,355 — 524,657 — — 524,657 Financial services revenue — — 8,400 8,400 Total revenues — 524,657 8,400 — 533,057 Homebuilding cost of revenues Cost of home sales revenues — (433,757) — — (433,757) Cost of land sales and other revenues — (614) — — (614) — (434,371) — — (434,371) Financial services costs — — (6,829) (6,829) Selling, general and administrative (18,655) (50,281) — — (68,936) Acquisition expense — — — — — Equity in earnings from consolidated subsidiaries 31,163 — — (31,163) — Equity in income of unconsolidated subsidiaries — — — — — Other income (expense) 101 (45) 20 — 76 Income before income tax expense 12,609 39,960 1,591 (31,163) 22,997 Income tax expense 4,508 (9,990) (398) — (5,880) Net income $ 17,117 $ 29,970 $ 1,193 $ (31,163) $ 17,117 Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended March 31, 2018 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — $ 394,831 $ — $ — $ 394,831 Land sales and other revenues — 1,459 — — 1,459 — 396,290 — — 396,290 Financial services revenue — — 5,556 — 5,556 Total revenues — 396,290 5,556 — 401,846 Homebuilding cost of revenues Cost of home sales revenues — (319,583) — — (319,583) Cost of land sales and other revenues — (877) — — (877) — (320,460) — — (320,460) Financial services costs — — (4,395) — (4,395) Selling, general and administrative (15,462) (41,060) — — (56,522) Acquisition expense (173) — — — (173) Equity in earnings from consolidated subsidiaries 26,497 — — (26,497) — Equity in income of unconsolidated subsidiaries 3,168 — — — 3,168 Other income (expense) (233) (124) — — (357) Income before income tax expense 13,797 34,646 1,161 (26,497) 23,107 Income tax expense 6,222 (9,008) (302) — (3,088) Net income $ 20,019 $ 25,638 $ 859 $ (26,497) $ 20,019 |
Supplemental Condensed Consolidated Statement Of Cash Flows | Supplemental Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ (36,731) (36,216) 13,547 — $ (59,400) Net cash provided by/(used in) investing activities $ (44,704) (2,031) 67 43,384 $ (3,284) Financing activities Borrowings under revolving credit facilities $ 288,800 — — — $ 288,800 Payments on revolving credit facilities (204,300) — — — (204,300) Net proceeds from mortgage repurchase facilities — — (13,689) — (13,689) Proceeds from insurance notes payable — 9,301 — — 9,301 Principal payments on notes payable — (7,716) — — (7,716) Issuance of common stock — — — — — Repurchases of common stock under our stock repurchase program (1,439) — — — (1,439) Repurchases of common stock upon vesting of stock based compensation (3,166) — — — (3,166) Payments from (and advances to) parent/subsidiary — 36,890 6,494 (43,384) — Net cash provided by/(used in) financing activities $ 79,895 $ 38,475 $ (7,195) $ (43,384) $ 67,791 Net decrease $ (1,540) $ 228 $ 6,419 $ — $ 5,107 Cash and cash equivalents and Restricted cash Beginning of period $ 2,183 4,006 30,252 — $ 36,441 End of period $ 643 $ 4,234 $ 36,671 $ — $ 41,548 Cash and cash equivalents $ 643 2,596 34,876 — $ 38,115 Restricted Cash — 1,638 1,795 — 3,433 Cash and cash equivalents and Restricted cash $ 643 $ 4,234 $ 36,671 $ — $ 41,548 Supplemental Condensed Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ (13,651) (43,713) 12,793 — $ (44,571) Net cash provided by/(used in) investing activities $ (33,265) (1,782) (25) 32,997 $ (2,075) Financing activities Borrowings under revolving credit facilities $ 60,000 — — — $ 60,000 Payments on revolving credit facilities (60,000) — — — (60,000) Net proceeds from mortgage repurchase facilities — — (11,307) — (11,307) Proceeds from insurance notes payable — — — — — Principal payments on notes payable — — — — — Issuance of common stock - taxes for vesting 5,021 — — — 5,021 Repurchases of common stock under our stock repurchase program — — — — — Repurchases of common stock upon vesting of stock based compensation (4,790) — — — (4,790) Payments from (and advances to) parent/subsidiary (584) 29,888 3,693 (32,997) — Net cash provided by/(used in) financing activities $ (353) $ 29,888 $ (7,614) $ (32,997) $ (11,076) Net decrease $ (47,269) $ (15,607) $ 5,154 $ — $ (57,722) Cash and cash equivalents and Restricted cash Beginning of period $ 56,234 28,044 9,435 — $ 93,713 End of period $ 8,965 $ 12,437 $ 14,589 $ — $ 35,991 Cash and cash equivalents $ 8,965 8,039 12,982 — $ 29,986 Restricted Cash — 4,398 1,607 — 6,005 Cash and cash equivalents and Restricted cash $ 8,965 $ 12,437 $ 14,589 $ — $ 35,991 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Thousands | Jun. 14, 2018USD ($) | Mar. 31, 2019USD ($)segment | Nov. 30, 2016 |
Summary of Significant Accounting Policies [Line Items] | |||
Number of operating segments | segment | 5 | ||
Right of use asset | $ 17,254 | ||
Lease liabilities - operating leases | $ 18,184 | ||
Wade Jurney Homes [Member] | |||
Summary of Significant Accounting Policies [Line Items] | |||
Ownership interest | 50.00% | 50.00% | |
Business combination, purchase price | $ 37,500 |
Reporting Segments (Narrative)
Reporting Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019stateregion | |
Segment Reporting Information [Line Items] | |
Number of operating states | 15 |
Number of operating regions | region | 4 |
Wade Jurney Homes [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating states | 10 |
Reporting Segments (Schedule Of
Reporting Segments (Schedule Of Total Revenue And Pretax Income By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 533,057 | $ 401,846 |
Total income (loss) before income tax expense | 22,997 | 23,107 |
West [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 112,120 | 118,920 |
Total income (loss) before income tax expense | 8,648 | 9,869 |
Mountain [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 159,666 | 145,493 |
Total income (loss) before income tax expense | 19,308 | 17,923 |
Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 50,486 | 38,028 |
Total income (loss) before income tax expense | 3,749 | 1,808 |
Southeast [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 112,812 | 93,849 |
Total income (loss) before income tax expense | 5,739 | 4,681 |
Wade Jurney Homes [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 89,573 | |
Total income (loss) before income tax expense | 3,973 | |
Financial Services [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 8,400 | 5,556 |
Total income (loss) before income tax expense | 1,590 | 1,161 |
Corporate [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total income (loss) before income tax expense | $ (20,010) | $ (12,335) |
Reporting Segments (Schedule _2
Reporting Segments (Schedule Of Total Assets By Segment) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,323,065 | $ 2,254,255 |
West [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 541,455 | 502,381 |
Mountain [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 636,258 | 621,757 |
Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 217,538 | 209,550 |
Southeast [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 441,454 | 448,681 |
Wade Jurney Homes [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 235,126 | 204,925 |
Financial Services [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 142,633 | 146,710 |
Corporate [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 108,601 | $ 120,251 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Jun. 14, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Nov. 30, 2016 |
Business Combinations [Line Items] | |||||
Acquisition expense | $ 173 | ||||
Revenues | $ 533,057 | 401,846 | |||
Equity in income of unconsolidated subsidiaries | 3,168 | ||||
Income before income tax expense | 22,997 | 23,107 | |||
Homebuilding [Member] | |||||
Business Combinations [Line Items] | |||||
Revenues | 524,657 | $ 396,290 | |||
Wade Jurney Homes [Member] | |||||
Business Combinations [Line Items] | |||||
Acquisition expense | $ 400 | ||||
Business combination, purchase price | $ 37,500 | ||||
Ownership interest | 50.00% | 50.00% | |||
Previously held equity interest | $ 35,625 | ||||
Estimated discount for lack of control | $ 1,900 | ||||
Equity in income of unconsolidated subsidiaries | $ 7,200 | ||||
Income before income tax expense | 4,000 | ||||
Wade Jurney Homes [Member] | Homebuilding [Member] | |||||
Business Combinations [Line Items] | |||||
Revenues | $ 89,600 | ||||
Wade Jurney Homes [Member] | |||||
Business Combinations [Line Items] | |||||
Ownership subsidiary | 100.00% | ||||
Trade Names [Member] | Wade Jurney Homes [Member] | |||||
Business Combinations [Line Items] | |||||
Estimated fair value | $ 3,300 | ||||
Amortization period | 10 years | ||||
Non-Compete Agreements [Member] | Wade Jurney Homes [Member] | |||||
Business Combinations [Line Items] | |||||
Estimated fair value | $ 300 | ||||
Amortization period | 2 years |
Business Combinations (Schedule
Business Combinations (Schedule Of Total Consideration Transferred) (Details) - Wade Jurney Homes [Member] $ in Thousands | Jun. 14, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash consideration transferred for 50% ownership interest | $ 37,500 |
Previously held equity interest acquisition date fair value | 35,625 |
Net assets acquired | $ 73,125 |
Business Combinations (Schedu_2
Business Combinations (Schedule Of Fair Values Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 14, 2018 |
Assets acquired and liabilities assumed | |||
Goodwill | $ 30,395 | $ 30,395 | |
Wade Jurney Homes [Member] | |||
Assets acquired and liabilities assumed | |||
Cash and cash equivalents | $ 9,464 | ||
Cash held in escrow | 260 | ||
Accounts receivable | 1,042 | ||
Inventories | 156,828 | ||
Prepaid expenses and other assets | 7,710 | ||
Amortizable intangible assets, net | 3,600 | ||
Goodwill | 3,317 | ||
Total assets | 182,221 | ||
Accounts payable | 12,516 | ||
Accrued expenses and other liabilities | 2,349 | ||
Total senior notes and revolving line of credit | 94,231 | ||
Total liabilities | 109,096 | ||
Fair value of assets acquired | $ 73,125 |
Business Combinations (Schedu_3
Business Combinations (Schedule Of Pro Forma Information) (Details) - UCP, Sundquist Homes, And WJH [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Total revenues | $ 474,452 |
Income before tax expense | 23,113 |
Tax expense | (3,086) |
Net income | 20,027 |
Less: Undistributed earnings allocated to participating securities | (49) |
Numerator for basic and diluted pro forma EPS | $ 19,978 |
Pro forma weighted average shares-basic | shares | 29,515,531 |
Pro forma weighted average shares-diluted | shares | 29,833,729 |
Pro forma basic EPS | $ / shares | $ 0.68 |
Pro forma diluted EPS | $ / shares | $ 0.67 |
Inventory (Schedule Of Inventor
Inventory (Schedule Of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Abstract] | ||||
Homes under construction | $ 989,153 | $ 1,073,682 | ||
Land and land development | 895,518 | 720,719 | ||
Capitalized interest | 59,121 | 53,842 | $ 46,160 | $ 41,762 |
Total inventories | $ 1,943,792 | $ 1,848,243 |
Financial Services (Narrative)
Financial Services (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | |
Financial Services [Line Items] | |||
Mortgage loans in process | $ 45,200 | $ 26,200 | |
Mortgage loans held for sale | $ 114,074 | $ 98,591 | |
Weighted Average [Member] | |||
Financial Services [Line Items] | |||
Interest rate | 4.40% | 4.70% | |
Inspire [Member] | |||
Financial Services [Line Items] | |||
Mortgage loans held for sale | $ 98,600 | $ 114,100 | |
Mortgage loans held for sale aggregate outstanding principal balance | $ 93,800 | $ 108,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Schedule Of Prepaid Expenses And Other Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Assets [Abstract] | ||
Prepaid insurance | $ 31,780 | $ 20,226 |
Lot option and escrow deposits | 46,070 | 51,038 |
Performance deposits | 6,626 | 4,552 |
Deferred financing costs revolving line of credit, net | 4,226 | 4,155 |
Restricted cash | 3,433 | 3,539 |
Secured note receivable | 2,700 | 4,947 |
Right of use assets | 17,254 | |
Insurance receivable and other | 11,159 | 50,260 |
Total prepaid expenses and other assets | $ 123,248 | $ 138,717 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Schedule Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accrued Expenses and Other Liabilities [Abstract] | ||||
Earnest money deposits | $ 12,922 | $ 13,990 | ||
Warranty reserve | 8,633 | 7,970 | $ 8,961 | $ 8,531 |
Accrued compensation costs | 17,259 | 29,770 | ||
Land development and home construction accruals | 118,653 | 77,748 | ||
Accrued interest | 16,583 | 15,636 | ||
Lease liabilities - operating leases | 18,184 | |||
Income taxes payable | 3,638 | |||
Liability for product financing arrangements and other | 12,974 | 68,043 | ||
Total accrued expenses and other liabilities | $ 208,846 | $ 213,157 |
Warranties (Schedule Of Changes
Warranties (Schedule Of Changes In Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Warranties [Abstract] | ||
Beginning balance | $ 7,970 | $ 8,531 |
Warranty expense provisions | 1,661 | 1,434 |
Payments | (1,020) | (959) |
Warranty adjustment | 22 | (45) |
Ending balance | $ 8,633 | $ 8,961 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Feb. 12, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 04, 2018 |
Debt Instrument [Line Items] | |||||
Line of credit facility, outstanding amount | $ 287,000,000 | $ 202,500,000 | |||
Mortgage repurchase facility | $ 90,866,000 | $ 104,555,000 | |||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Texas Capital Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | Apr. 30, 2022 | ||||
Line of credit facility. maximum borrowing capacity | $ 640,000,000 | ||||
Line of credit facility, outstanding amount | $ 287,000,000 | ||||
Line of credit facility, availability | 353,000,000 | ||||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.10% | ||||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.60% | ||||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.10% | ||||
Revolving Credit Facility [Member] | Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.60% | ||||
Mortgage Repurchase Facilities - Financial Services [Member] | Comerica Bank [Member] | Financial Services [Member] | |||||
Debt Instrument [Line Items] | |||||
Incurred interest expense | 600,000 | $ 200,000 | |||
Mortgage Repurchase Facilities - Financial Services [Member] | Inspire [Member] | Comerica Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Mortgage repurchase facility | $ 90,900,000 | ||||
Mortgage Repurchase Facilities - Financial Services [Member] | Maximum [Member] | Inspire [Member] | Comerica Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 140,000,000 |
Debt (Schedule Of Outstanding D
Debt (Schedule Of Outstanding Debt Obligations) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt [Abstract] | |||
6.875% senior notes, due May 2022 | [1] | $ 380,900 | $ 380,567 |
5.875% senior notes, due July 2025 | [1] | 395,591 | 395,415 |
Insurance premium notes and other financing obligations | 10,381 | 8,795 | |
Senior notes payable | 786,872 | 784,777 | |
Revolving line of credit, due April 2022 | 287,000 | 202,500 | |
Mortgage repurchase facility | 90,866 | 104,555 | |
Total debt (Carrying amount) | $ 1,164,738 | $ 1,091,832 | |
[1] | The carrying value of senior notes reflects the impact of premiums, discounts, and issuance costs that are amortized to interest cost over the respective terms of the senior notes. |
Interest (Schedule Of Capitaliz
Interest (Schedule Of Capitalized Interest Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest [Abstract] | ||
Interest capitalized beginning of period | $ 53,842 | $ 41,762 |
Interest capitalized during period | 17,866 | 13,357 |
Less: capitalized interest in cost of sales | (12,587) | (8,959) |
Interest capitalized end of period | $ 59,121 | $ 46,160 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Taxes [Abstract] | ||
Effective tax rate | 26.70% | |
Blended federal and state statutary rate | 24.90% | |
Percentage of decrease related to rate impacted by discrete items | 1.20% | |
Increased to effective tax rate | 1.80% | |
Income tax expense | $ 5,880 | $ 3,088 |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Mortgage loans held for sale | $ 98,591 | $ 114,074 | |
Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured notes receivable | [1] | 2,700 | 4,947 |
Mortgage loans held for sale | [2] | 98,591 | 114,074 |
6.875% senior notes | [3] | 380,900 | 380,567 |
5.875% senior notes | [3] | 395,591 | 395,415 |
3.278 insurance premium notes | [4] | 10,381 | 6,475 |
Other financing obligation | [4] | 2,320 | |
Mortgage repurchase facilities | [4] | 90,866 | 104,555 |
Level 2 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured notes receivable | [1] | 2,616 | 4,830 |
Mortgage loans held for sale | [2] | 98,591 | 114,074 |
6.875% senior notes | [3] | 385,308 | 367,618 |
5.875% senior notes | [3] | 373,591 | 351,414 |
3.278 insurance premium notes | [4] | 10,381 | 6,475 |
Other financing obligation | [4] | 2,320 | |
Mortgage repurchase facilities | [4] | 90,866 | 104,555 |
Level 3 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | [4] | 287,000 | 202,500 |
Level 3 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | [4] | $ 287,000 | $ 202,500 |
[1] | Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates that considered the underlying risks of the note. | ||
[2] | The mortgage loans held for sale are carried at fair value, which was based on quoted market prices for those committed mortgage loans. | ||
[3] | Estimated fair value of the senior notes incorporated recent trading activity in inactive markets. | ||
[4] | Carrying amount approximates fair value due to short-term nature and interest rate terms. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense | $ 3.5 | $ 2.5 |
Performance Share Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.3 | |
Grant date fair value | $ 22.01 | |
Awards vesting period | 3 years | |
Performance Share Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target range | 0.00% | |
Performance Share Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance target range | 250.00% | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.5 | |
Grant date fair value | $ 23.76 | |
Restricted Stock Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Awards vesting period | 3 years | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding | 0 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Outstanding Restricted Stock And Performance Stock Units) (Details) - Restricted Stock Units And Performance Share Units [Member] shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested units | shares | 1,326 |
Unrecognized compensation cost | $ | $ 24,442 |
Period to recognize compensation cost | 2 years |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 03, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Common stock shares authorized | 100,000,000 | 100,000,000 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock shares authorized | 50,000,000 | 50,000,000 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Common stock shares issued | 30,304,081 | 30,154,791 | ||
Common stock shares outstanding | 30,304,081 | 30,154,791 | ||
Common stock shares issued related to vesting of RSUs | 400,000 | |||
Common stock shares repurchased, value | $ 1,438 | |||
Common Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares repurchased, shares | 83,000 | |||
First Amended And Restated 2013 Long-Term Incentive Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares for stock award issuance | 1,800,000 | |||
2017 Incentive Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Common stock shares for stock award, available for issuance | 200,000 | |||
Common stock shares rolled into plan | 600,000 | |||
Distribution Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Aggregate offering price | $ 100,000 | |||
Available for sale | $ 72,700 | |||
Common stock shares sold and issued | 0 | 200,000 | ||
Net proceeds from issuances of common stock | $ 5,000 | |||
Comissions and fees paid to Sales Agents | $ 100 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive shares related to PSU's granted | 0.3 | 0 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator | ||
Net income | $ 17,117 | $ 20,019 |
Less: Undistributed earnings allocated to participating securities | (49) | |
Net income allocable to common stockholders | $ 17,117 | $ 19,970 |
Denominator | ||
Weighted average common shares outstanding - basic | 30,203,243 | 29,515,531 |
Dilutive effect of restricted stock units | 241,033 | 318,198 |
Weighted average common shares outstanding - diluted | 30,444,276 | 29,833,729 |
Earnings per share: | ||
Basic | $ 0.57 | $ 0.68 |
Diluted | $ 0.56 | $ 0.67 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies [Abstract] | ||
Outstanding letters of credit and performance bonds | $ 298 | $ 289.8 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Right of use asset | $ 17,254 | |
Lease liability | 18,184 | |
Operating lease expense | $ 1,400 | $ 900 |
Minimum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 7 years |
Leases (Information Of Lease Ri
Leases (Information Of Lease Right Of Use Asset And Lease Liability) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for operating lease liabilities | $ 1,311 |
Right-of-use asset obtained in exchange for new operating lease obligations | $ 847 |
Weighted-average remaining lease term | 4 years 3 months 15 days |
Weighted-average discount rate | 6.39% |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Due in 12 month period ended March 31, | |
2020 | $ 5,492 |
2021 | 5,023 |
2022 | 4,027 |
2023 | 2,861 |
2024 | 2,258 |
Thereafter | 1,251 |
Total | 20,912 |
Less: discount | (2,728) |
Total lease liabilities | $ 18,184 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Narrative) (Details) | Mar. 31, 2019 |
Senior Notes Due 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 6.875% |
Senior Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Supplemental Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash and cash equivalents | $ 38,115 | $ 32,902 | $ 29,986 | |
Cash held in escrow | 24,664 | 24,344 | ||
Accounts receivable | 12,436 | 13,464 | ||
Inventories | 1,943,792 | 1,848,243 | ||
Mortgage loans held for sale | 98,591 | 114,074 | ||
Prepaid expenses and other assets | 123,248 | 138,717 | ||
Deferred tax assets, net | 13,591 | 13,763 | ||
Property and equipment, net | 33,471 | 33,258 | ||
Amortizable intangible assets, net | 4,762 | 5,095 | ||
Goodwill | 30,395 | 30,395 | ||
Total assets | 2,323,065 | 2,254,255 | ||
Liabilities: | ||||
Accounts payable | 74,075 | 89,907 | ||
Accrued expenses and other liabilities | 208,846 | 213,157 | ||
Notes payable | 786,872 | 784,777 | ||
Revolving line of credit | 287,000 | 202,500 | ||
Mortgage repurchase facility | 90,866 | 104,555 | ||
Total liabilities | 1,447,659 | 1,394,896 | ||
Stockholders' equity: | 875,406 | 859,359 | 757,418 | $ 735,233 |
Total liabilities and stockholders' equity | 2,323,065 | 2,254,255 | ||
Century [Member] | ||||
Assets | ||||
Cash and cash equivalents | 643 | 2,183 | 8,965 | |
Accounts receivable | 3,627 | 6,117 | ||
Investment in consolidated subsidiaries | 1,928,076 | 1,827,456 | ||
Prepaid expenses and other assets | 13,807 | 51,177 | ||
Deferred tax assets, net | 13,591 | 13,763 | ||
Property and equipment, net | 13,966 | 13,274 | ||
Total assets | 1,973,710 | 1,913,970 | ||
Liabilities: | ||||
Accounts payable | 835 | 623 | ||
Accrued expenses and other liabilities | 33,978 | 75,506 | ||
Notes payable | 776,491 | 775,982 | ||
Revolving line of credit | 287,000 | 202,500 | ||
Total liabilities | 1,098,304 | 1,054,611 | ||
Stockholders' equity: | 875,406 | 859,359 | ||
Total liabilities and stockholders' equity | 1,973,710 | 1,913,970 | ||
Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 2,596 | 2,101 | 8,039 | |
Cash held in escrow | 24,664 | 24,344 | ||
Accounts receivable | 8,754 | 7,424 | ||
Inventories | 1,943,792 | 1,848,243 | ||
Prepaid expenses and other assets | 101,649 | 85,224 | ||
Property and equipment, net | 18,578 | 18,989 | ||
Amortizable intangible assets, net | 4,762 | 5,095 | ||
Goodwill | 30,395 | 30,395 | ||
Total assets | 2,135,190 | 2,021,815 | ||
Liabilities: | ||||
Accounts payable | 73,002 | 88,627 | ||
Accrued expenses and other liabilities | 166,029 | 131,548 | ||
Notes payable | 10,381 | 8,795 | ||
Total liabilities | 249,412 | 228,970 | ||
Stockholders' equity: | 1,885,778 | 1,792,845 | ||
Total liabilities and stockholders' equity | 2,135,190 | 2,021,815 | ||
Non Guarantor Subsidiaries [Member] | ||||
Assets | ||||
Cash and cash equivalents | 34,876 | 28,618 | $ 12,982 | |
Accounts receivable | 55 | (77) | ||
Mortgage loans held for sale | 98,591 | 114,074 | ||
Prepaid expenses and other assets | 7,792 | 2,316 | ||
Property and equipment, net | 927 | 995 | ||
Total assets | 142,241 | 145,926 | ||
Liabilities: | ||||
Accounts payable | 238 | 657 | ||
Accrued expenses and other liabilities | 8,839 | 6,103 | ||
Mortgage repurchase facility | 90,866 | 104,555 | ||
Total liabilities | 99,943 | 111,315 | ||
Stockholders' equity: | 42,298 | 34,611 | ||
Total liabilities and stockholders' equity | 142,241 | 145,926 | ||
Elimination Entries [Member] | ||||
Assets | ||||
Investment in consolidated subsidiaries | (1,928,076) | (1,827,456) | ||
Total assets | (1,928,076) | (1,827,456) | ||
Liabilities: | ||||
Stockholders' equity: | (1,928,076) | (1,827,456) | ||
Total liabilities and stockholders' equity | $ (1,928,076) | $ (1,827,456) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Total revenues | $ 533,057 | $ 401,846 |
Selling, general and administrative | (68,936) | (56,522) |
Acquisition expense | (173) | |
Equity in income of unconsolidated subsidiaries | 3,168 | |
Other income (expense) | 76 | (357) |
Income before income tax expense | 22,997 | 23,107 |
Income tax expense | (5,880) | (3,088) |
Net income | 17,117 | 20,019 |
Century [Member] | ||
Revenues | ||
Selling, general and administrative | (18,655) | (15,462) |
Acquisition expense | (173) | |
Equity in earnings from consolidated subsidiaries | 31,163 | 26,497 |
Equity in income of unconsolidated subsidiaries | 3,168 | |
Other income (expense) | 101 | (233) |
Income before income tax expense | 12,609 | 13,797 |
Income tax expense | 4,508 | 6,222 |
Net income | 17,117 | 20,019 |
Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 524,657 | 396,290 |
Selling, general and administrative | (50,281) | (41,060) |
Other income (expense) | (45) | (124) |
Income before income tax expense | 39,960 | 34,646 |
Income tax expense | (9,990) | (9,008) |
Net income | 29,970 | 25,638 |
Non Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 8,400 | 5,556 |
Other income (expense) | 20 | |
Income before income tax expense | 1,591 | 1,161 |
Income tax expense | (398) | (302) |
Net income | 1,193 | 859 |
Elimination Entries [Member] | ||
Revenues | ||
Equity in earnings from consolidated subsidiaries | (31,163) | (26,497) |
Income before income tax expense | (31,163) | (26,497) |
Net income | (31,163) | (26,497) |
Home Sales [Member] | ||
Revenues | ||
Total revenues | 523,302 | 394,831 |
Cost of revenues | (433,757) | (319,583) |
Home Sales [Member] | Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 523,302 | 394,831 |
Cost of revenues | (433,757) | (319,583) |
Land Sales And Other [Member] | ||
Revenues | ||
Total revenues | 1,355 | 1,459 |
Cost of revenues | (614) | (877) |
Land Sales And Other [Member] | Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 1,355 | 1,459 |
Cost of revenues | (614) | (877) |
Homebuilding [Member] | ||
Revenues | ||
Total revenues | 524,657 | 396,290 |
Cost of revenues | (434,371) | (320,460) |
Homebuilding [Member] | Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 524,657 | 396,290 |
Cost of revenues | (434,371) | (320,460) |
Financial Services [Member] | ||
Revenues | ||
Total revenues | 8,400 | 5,556 |
Cost of revenues | (6,829) | (4,395) |
Financial Services [Member] | Non Guarantor Subsidiaries [Member] | ||
Revenues | ||
Total revenues | 8,400 | 5,556 |
Cost of revenues | $ (6,829) | $ (4,395) |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | $ (59,400) | $ (44,571) | |
Net cash provided by/(used in) investing activities | (3,284) | (2,075) | |
Financing activities | |||
Borrowings under revolving credit facilities | 288,800 | 60,000 | |
Payments on revolving credit facilities | (204,300) | (60,000) | |
Net proceeds from mortgage repurchase facilities | (13,689) | (11,307) | |
Proceeds from insurance notes payable | 9,301 | ||
Principal payments on notes payable | (7,716) | ||
Issuance of common stock | 5,021 | ||
Repurchases of common stock under our stock repurchase program | (1,439) | ||
Repurchases of common stock upon vesting of stock based compensation | (3,166) | (4,790) | |
Net cash provided by (used in) financing activities | 67,791 | (11,076) | |
Net increase (decrease) | 5,107 | (57,722) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 36,441 | 93,713 | |
Cash and cash equivalents and Restricted cash, End of period | 41,548 | 35,991 | |
Cash and cash equivalents | 38,115 | 29,986 | $ 32,902 |
Restricted Cash | 3,433 | 6,005 | |
Elimination Entries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) investing activities | 43,384 | 32,997 | |
Financing activities | |||
Payments from (and advances to) parent/subsidiary | (43,384) | (32,997) | |
Net cash provided by (used in) financing activities | (43,384) | (32,997) | |
Century [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | (36,731) | (13,651) | |
Net cash provided by/(used in) investing activities | (44,704) | (33,265) | |
Financing activities | |||
Borrowings under revolving credit facilities | 288,800 | 60,000 | |
Payments on revolving credit facilities | (204,300) | (60,000) | |
Issuance of common stock | 5,021 | ||
Repurchases of common stock under our stock repurchase program | (1,439) | ||
Repurchases of common stock upon vesting of stock based compensation | (3,166) | (4,790) | |
Payments from (and advances to) parent/subsidiary | (584) | ||
Net cash provided by (used in) financing activities | 79,895 | (353) | |
Net increase (decrease) | (1,540) | (47,269) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 2,183 | 56,234 | |
Cash and cash equivalents and Restricted cash, End of period | 643 | 8,965 | |
Cash and cash equivalents | 643 | 8,965 | 2,183 |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | (36,216) | (43,713) | |
Net cash provided by/(used in) investing activities | (2,031) | (1,782) | |
Financing activities | |||
Proceeds from insurance notes payable | 9,301 | ||
Principal payments on notes payable | (7,716) | ||
Payments from (and advances to) parent/subsidiary | 36,890 | 29,888 | |
Net cash provided by (used in) financing activities | 38,475 | 29,888 | |
Net increase (decrease) | 228 | (15,607) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 4,006 | 28,044 | |
Cash and cash equivalents and Restricted cash, End of period | 4,234 | 12,437 | |
Cash and cash equivalents | 2,596 | 8,039 | 2,101 |
Restricted Cash | 1,638 | 4,398 | |
Non Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | 13,547 | 12,793 | |
Net cash provided by/(used in) investing activities | 67 | (25) | |
Financing activities | |||
Net proceeds from mortgage repurchase facilities | (13,689) | (11,307) | |
Payments from (and advances to) parent/subsidiary | 6,494 | 3,693 | |
Net cash provided by (used in) financing activities | (7,195) | (7,614) | |
Net increase (decrease) | 6,419 | 5,154 | |
Cash and cash equivalents and Restricted cash, Beginning of period | 30,252 | 9,435 | |
Cash and cash equivalents and Restricted cash, End of period | 36,671 | 14,589 | |
Cash and cash equivalents | 34,876 | 12,982 | $ 28,618 |
Restricted Cash | $ 1,795 | $ 1,607 |