Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36491 | |
Entity Central Index Key | 0001576940 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Registrant Name | Century Communities, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 8390 East Crescent Parkway | |
Entity Address, Address Line Two | Suite 650 | |
Entity Address, City or Town | Greenwood Village | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80111 | |
Entity Tax Identification Number | 68-0521411 | |
City Area Code | 303 | |
Local Phone Number | 770-8300 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | CCS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,347,379 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 38,508 | $ 32,902 |
Cash held in escrow | 30,362 | 24,344 |
Accounts receivable | 17,929 | 13,464 |
Inventories | 2,093,493 | 1,848,243 |
Mortgage loans held for sale | 95,321 | 112,394 |
Prepaid expenses and other assets | 129,925 | 140,397 |
Property and equipment, net | 35,258 | 33,258 |
Deferred tax assets, net | 14,277 | 13,763 |
Amortizable intangible assets, net | 4,094 | 5,095 |
Goodwill | 30,395 | 30,395 |
Total assets | 2,489,562 | 2,254,255 |
Liabilities: | ||
Accounts payable | 78,695 | 89,907 |
Accrued expenses and other liabilities | 206,818 | 213,157 |
Notes payable | 896,272 | 784,777 |
Revolving line of credit | 278,800 | 202,500 |
Mortgage repurchase facilities | 77,798 | 104,555 |
Total liabilities | 1,538,383 | 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, 31,249,373 and 30,154,791 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 312 | 302 |
Additional paid-in capital | 627,211 | 595,037 |
Retained earnings | 323,656 | 264,020 |
Total stockholders' equity | 951,179 | 859,359 |
Total liabilities and stockholders' equity | $ 2,489,562 | $ 2,254,255 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 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 | 31,249,373 | 30,154,791 |
Common stock shares outstanding | 31,249,373 | 30,154,791 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 590,362 | $ 561,729 | $ 1,743,369 | $ 1,495,467 |
Selling, general and administrative | (72,834) | (70,975) | (216,987) | (191,130) |
Loss on debt extinguishment | (10,832) | |||
Acquisition expense | (58) | (395) | ||
Equity in income of unconsolidated subsidiaries | 14,849 | |||
Other income (expense) | (56) | (545) | (499) | (553) |
Income before income tax expense | 34,840 | 22,858 | 78,667 | 92,468 |
Income tax expense | (7,816) | (5,810) | (19,031) | (22,207) |
Net income | $ 27,024 | $ 17,048 | $ 59,636 | $ 70,261 |
Earnings per share: | ||||
Basic | $ 0.88 | $ 0.56 | $ 1.96 | $ 2.35 |
Diluted | $ 0.87 | $ 0.56 | $ 1.95 | $ 2.33 |
Weighted average common shares outstanding: | ||||
Basic | 30,587,487 | 30,232,376 | 30,378,860 | 29,885,858 |
Diluted | 30,906,235 | 30,554,881 | 30,641,194 | 30,189,058 |
Home Sales [Member] | ||||
Revenues | ||||
Total revenues | $ 573,860 | $ 552,876 | $ 1,705,798 | $ 1,469,871 |
Cost of revenues | (469,834) | (460,144) | (1,407,519) | (1,206,924) |
Land Sales And Other [Member] | ||||
Revenues | ||||
Total revenues | 6,083 | 1,131 | 8,837 | 4,304 |
Cost of revenues | (4,624) | (1,093) | (6,115) | (3,010) |
Homebuilding [Member] | ||||
Revenues | ||||
Total revenues | 579,943 | 554,007 | 1,714,635 | 1,474,175 |
Cost of revenues | (474,458) | (461,237) | (1,413,634) | (1,209,934) |
Financial Services [Member] | ||||
Revenues | ||||
Total revenues | 10,419 | 7,722 | 28,734 | 21,292 |
Cost of revenues | $ (8,174) | $ (6,056) | $ (22,750) | $ (15,836) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income | $ 59,636 | $ 70,261 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 9,793 | 8,803 |
Stock-based compensation expense | 11,391 | 10,135 |
Loss on debt extinguishment | 10,832 | |
Deferred income taxes | (514) | (804) |
Distributions from unconsolidated subsidiaries | 7,432 | |
Equity in income of unconsolidated subsidiaries | (14,849) | |
(Gain) loss on disposition of assets | 846 | 1,399 |
Changes in assets and liabilities: | ||
Cash held in escrow | (6,018) | 6,077 |
Accounts receivable | (4,465) | (13,324) |
Inventories | (215,771) | (243,355) |
Prepaid expenses and other assets | 33,346 | (32,640) |
Accounts payable | (11,212) | 3,267 |
Accrued expenses and other liabilities | (53,901) | (9,285) |
Mortgage loans held for sale | 17,073 | (10,114) |
Net cash provided by (used in) operating activities | (148,964) | (216,997) |
Investing activities | ||
Purchases of property and equipment | (11,633) | (11,893) |
Business combinations, net of acquired cash | (28,036) | |
Other investing activities | 78 | 272 |
Net cash provided by (used in) investing activities | (11,555) | (39,657) |
Financing activities | ||
Borrowings under revolving credit facilities | 1,184,800 | 520,000 |
Payments on revolving credit facilities | (1,108,500) | (284,000) |
Proceeds from issuance of senior notes due 2027 | 500,000 | |
Extinguishment of senior notes due 2022 | (391,942) | |
Proceeds from issuance of insurance premium notes and other | 12,629 | 11,838 |
Principal payments on insurance notes payable and other | (19,275) | (2,173) |
Extinguishments of debt assumed in business combination | (94,231) | |
Debt issuance costs | (6,075) | (3,521) |
Net payments on mortgage repurchase facilities | (26,757) | 9,008 |
Net proceeds from issuances of common stock | 25,817 | 31,230 |
Repurchases of common stock upon vesting of stock based compensation | (3,588) | (5,483) |
Repurchases of common stock under our stock repurchase program | (1,439) | |
Net cash provided by (used in) financing activities | 165,670 | 182,668 |
Net increase (decrease) | 5,151 | (73,986) |
Cash and cash equivalents and Restricted cash, Beginning of period | 36,441 | 93,713 |
Cash and cash equivalents and Restricted cash, End of period | 41,592 | 19,727 |
Supplemental cash flow disclosure | ||
Cash paid for income taxes | 20,722 | 39,326 |
Cash and cash equivalents and Restricted cash | ||
Cash and cash equivalents | 38,508 | 15,927 |
Restricted cash (Note 6) | $ 3,084 | $ 3,800 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' 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, net | $ 11 | 31,219 | 31,230 | |
Issuance of common stock, net, shares | 1,086 | |||
Vesting of restricted stock units | $ 2 | (5,483) | (5,481) | |
Vesting of restricted stock units, shares | 170 | |||
Stock-based compensation expense | 10,133 | 10,133 | ||
Net income | 70,261 | 70,261 | ||
Ending balance at Sep. 30, 2018 | $ 308 | 602,659 | 237,826 | 840,793 |
Ending balance (in shares) at Sep. 30, 2018 | 30,759 | |||
Beginning balance at Jun. 30, 2018 | $ 301 | 582,627 | 220,778 | 803,706 |
Beginning balance (in shares) at Jun. 30, 2018 | 30,119 | |||
Issuance of common stock, net | $ 6 | 16,915 | 16,921 | |
Issuance of common stock, net, shares | 600 | |||
Vesting of restricted stock units | $ 1 | (695) | (694) | |
Vesting of restricted stock units, shares | 40 | |||
Stock-based compensation expense | 3,812 | 3,812 | ||
Net income | 17,048 | 17,048 | ||
Ending balance at Sep. 30, 2018 | $ 308 | 602,659 | 237,826 | 840,793 |
Ending balance (in shares) at Sep. 30, 2018 | 30,759 | |||
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 | |||
Issuance of common stock, net | $ 9 | 25,808 | 25,817 | |
Issuance of common stock, net, shares | 899 | |||
Repurchase of common stock | $ (1) | (1,438) | (1,439) | |
Repurchase of common stock, shares | (83) | |||
Vesting of restricted stock units | $ 2 | (3,587) | (3,585) | |
Vesting of restricted stock units, shares | 278 | |||
Stock-based compensation expense | 11,391 | 11,391 | ||
Net income | 59,636 | 59,636 | ||
Ending balance at Sep. 30, 2019 | $ 312 | 627,211 | 323,656 | 951,179 |
Ending balance (in shares) at Sep. 30, 2019 | 31,249 | |||
Beginning balance at Jun. 30, 2019 | $ 304 | 600,293 | 296,632 | 897,229 |
Beginning balance (in shares) at Jun. 30, 2019 | 30,439 | |||
Issuance of common stock, net | $ 8 | 23,146 | 23,154 | |
Issuance of common stock, net, shares | 799 | |||
Vesting of restricted stock units | (151) | (151) | ||
Vesting of restricted stock units, shares | 11 | |||
Stock-based compensation expense | 3,923 | 3,923 | ||
Net income | 27,024 | 27,024 | ||
Ending balance at Sep. 30, 2019 | $ 312 | $ 627,211 | $ 323,656 | $ 951,179 |
Ending balance (in shares) at Sep. 30, 2019 | 31,249 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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, Iowa, Michigan, 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 targets first time homebuyers, primarily 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. 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 currently 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. Reclassifications In order to conform to current year presentation, mortgage loans held for investment and derivative assets of $ 1.0 million and $ 0.7 million, respectively, have been reclassified to prepaid expenses and other assets from mortgage loans held for sale on the condensed consolidated balance sheets as of December 31, 2018. Recently Adopted Accounting Standards Leases The Financial Accounting Standards Board (which we refer to as “FASB”) issued Accounting Standards Codification (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 carry forward 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 condensed 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 Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The standard changes the accounting for credit losses for most financial assets and certain other instruments. Credit losses which have historically been accounted for on an incurred loss basis will now be accounted for using an estimate of lifetime expected credit losses. This will generally result in earlier recognition of allowances for credit losses. The standard is effective for the Company on January 1, 2020. Upon adoption, the standard will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We anticipate ASU 2016-13 will apply to certain of our loans held for investment and certain receivable balances. We do not anticipate this standard having a material effect on the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company January 1, 2020. Upon adoption, the Company has elected to apply the standard prospectively. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Reporting Segments
Reporting Segments | 9 Months Ended |
Sep. 30, 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 17 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 targets first time homebuyers, primarily sells homes through retail studios and the internet, and provides no option or upgrade selections. Our Wade Jurney Homes brand currently has operations in 11 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, Iowa, Michigan, North Carolina, Ohio, South Carolina, 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 segment is 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue: West $ 116,874 $ 105,949 $ 364,220 $ 354,087 Mountain 171,617 162,912 510,693 488,928 Texas 68,812 56,220 180,820 157,793 Southeast 118,610 141,458 356,236 360,653 Wade Jurney Homes 104,030 87,468 302,666 112,714 Financial Services 10,419 7,722 28,734 21,292 Corporate — — — — Total revenue $ 590,362 $ 561,729 $ 1,743,369 $ 1,495,467 Income (loss) before income tax expense: West $ 9,013 $ 7,478 $ 27,634 $ 29,494 Mountain 20,552 18,753 62,386 61,995 Texas 8,290 3,539 17,626 10,319 Southeast 7,079 10,401 17,467 24,106 Wade Jurney Homes 6,032 451 18,323 265 Financial Services 2,245 1,666 5,984 5,456 Corporate ( 18,371 ) ( 19,430 ) ( 70,753 ) ( 39,167 ) Total income before income tax expense $ 34,840 $ 22,858 $ 78,667 $ 92,468 The following table summarizes total assets by operating segment (in thousands): September 30, December 31, 2019 2018 West $ 625,085 $ 502,381 Mountain 674,894 621,757 Texas 222,819 209,550 Southeast 455,289 448,681 Wade Jurney 287,923 204,925 Financial Services 144,682 146,710 Corporate 78,870 120,251 Total assets $ 2,489,562 $ 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 | 9 Months Ended |
Sep. 30, 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 targets first time homebuyers in markets which are traditionally underserved by new homebuilders, primarily 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 June 14, 2018 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 nine months ended September 30, 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. The Company determined that WJH’s carrying costs approximated fair value for all other acquired assets and assumed liabilities. Pro Forma Financial Information Pro forma revenue and income before tax expense for the nine months ended September 30, 2018 give 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. Nine Months Ended September 30, 2018 Total revenues $ 1,645,858 Income before tax expense $ 87,092 Income tax expense ( 21,773 ) Net income $ 65,319 Less: Undistributed earnings allocated to participating securities ( 54 ) Numerator for basic and diluted pro forma EPS $ 65,265 Pro forma weighted average shares-basic 29,885,858 Pro forma weighted average shares-diluted 30,189,058 Pro forma basic EPS $ 2.18 Pro forma diluted EPS $ 2.16 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Inventories | 4. Inventories Inventories included the following (in thousands): September 30, December 31, 2019 2018 Homes under construction $ 1,205,232 $ 1,073,682 Land and land development 820,126 720,719 Capitalized interest 68,135 53,842 Total inventories $ 2,093,493 $ 1,848,243 |
Financial Services
Financial Services | 9 Months Ended |
Sep. 30, 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 using its mortgage repurchase facilities. Mortgage loans in process for which interest rates were committed to borrowers totaled approximately $ 59.2 million and $ 26.2 million at September 30, 2019 and December 31, 2018, respectively, and carried a weighted average interest rate of approximately 3.8 %, and 4.7 %, respectively. As of September 30, 2019 and December 31, 2018, Inspire had mortgage loans held for sale with an aggregate fair value of $ 95.3 million and $ 112.4 million, respectively, and an aggregate outstanding principal balance of $ 92.8 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 condensed consolidated statement of operations. Management believes carrying loans held-for-sale and the derivative instruments used to economically hedge them at fair value improves financial reporting by more accurately reflecting the underlying transaction. Refer to Note 12 – fair value disclosures for further information regarding our derivative instruments. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 9 Months Ended |
Sep. 30, 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): September 30, December 31, 2019 2018 Prepaid insurance $ 29,311 $ 20,226 Lot option and escrow deposits 50,758 51,038 Performance deposits 6,814 4,552 Deferred financing costs revolving line of credit, net 3,530 4,155 Restricted cash (1) 3,084 3,539 Secured note receivable 2,632 4,947 Right of use assets 16,760 — Insurance receivable and other 17,036 51,940 Total prepaid expenses and other assets $ 129,925 $ 140,397 (1) Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 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): September 30, December 31, 2019 2018 Earnest money deposits $ 13,805 $ 13,990 Warranty reserve 9,990 7,970 Accrued compensation costs 22,636 29,770 Land development and home construction accruals 117,511 77,748 Accrued interest 18,327 15,636 Lease liabilities - operating leases 17,380 — Liability for product financing arrangements and other 7,169 68,043 Total accrued expenses and other liabilities $ 206,818 $ 213,157 |
Warranties
Warranties | 9 Months Ended |
Sep. 30, 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 condensed consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through a model that incorporates historical payment trends and adjust the amounts recorded if necessary. We decreased our warranty reserve by $ 0.6 million during the three months ended September 30, 2019 and during the same period in 2018. We decreased our warranty reserve by $ 0.4 million during the nine months ended September 30, 2019, compared to a $ 0.8 million decrease during the same period in 2018. These adjustments are included in cost of home sales revenues on our condensed consolidated statements of operations. Changes in our warranty accrual are detailed in the table below (in thousands ): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 9,768 $ 10,269 $ 7,970 $ 8,531 Warranty reserve assumed in business combination — — — 397 Warranty expense provisions 1,665 1,568 5,433 4,789 Payments ( 870 ) ( 968 ) ( 3,063 ) ( 2,688 ) Warranty adjustment ( 573 ) ( 597 ) ( 350 ) ( 757 ) Ending balance $ 9,990 $ 10,272 $ 9,990 $ 10,272 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Debt | 9. Debt Our outstanding debt obligations included the following as of September 30, 2019 and December 31, 2018 (in thousands): September 30, December 31, 2019 2018 6.750% senior notes, due May 2027 (1) $ 494,178 $ — 5.875% senior notes, due July 2025 (1) 395,944 395,415 6.875% senior notes, due May 2022 (1) — 380,567 Insurance premium notes and other financing obligations 6,150 8,795 Notes payable 896,272 784,777 Revolving line of credit, due April 2022 278,800 202,500 Mortgage repurchase facility 77,798 104,555 Total debt $ 1,252,870 $ 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. Issuance of 6.750% Senior Notes Due 2027 In May 2019, the Company completed a private offering of $ 500.0 million aggregate principal amount of the Company’s 6.750 % Senior Notes due 2027 (the “2027 Notes”) in reliance on Rule 144A and Regulation S under the Securities Act of 1933. The 2027 Notes were issued under the Indenture, dated as of May 23, 2019, among the Company, our subsidiary guarantors party thereto, and U.S. Bank National Association, as trustee (which we refer to as the “May 2019 Indenture,” as it may be supplemented or amended from time to time). The 2027 Notes were issued at 100% of their principal amount and we received net proceeds of $ 493.9 million. The 2027 Notes contain certain restrictive covenants on issuing future secured debt and other transactions. The aggregate principal balance of the 2027 Notes is due June 2027, with interest only payments due semi-annually in June and December of each year, beginning on December 1, 2019. In connection with this issuance, the Company deferred $ 6.1 million of issuance costs, which is presented in the notes payable line item of the condensed consolidated balance sheet. Extinguishment of 6.875% Senior Notes Due 2022 During the nine months ended September 30, 2019, the Company extinguished $ 385.0 million in outstanding principal of our 6.875 % Senior Notes due 2022 (the “2022 Notes”). The extinguishment was the result of two separate transactions whereby a tender offer validly tendered $ 189.3 million of the 2022 Notes on March 23, 2019 and the remaining $ 195.7 million was redeemed in accordance with the Indenture agreement on June 10, 2019. The transaction resulted in a loss of $ 10.8 million, which is presented in loss on debt extinguishment in the consolidated statement of operations for the nine months ended September 30, 2019. Revolving Line of Credit 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 September 30, 2019, we had $ 278.8 million outstanding under the credit facility 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 an aggregate of $ 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 September 30, 2019, we had $ 77.8 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 September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $ 0.6 million and $ 0.4 million, respectively, which are included in financial services costs on our condensed consolidated statements of operations . During the nine months ended September 30, 2019 and 2018, we incurred interest expense on the repurchase facilities of $ 2.1 million and $ 0.8 million, respectively. |
Interest
Interest | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest capitalized beginning of period $ 63,068 $ 47,797 $ 53,842 $ 41,762 Interest capitalized during period 19,325 16,109 55,792 43,387 Less: capitalized interest in cost of sales ( 14,258 ) ( 12,334 ) ( 41,499 ) ( 33,577 ) Interest capitalized end of period $ 68,135 $ 51,572 $ 68,135 $ 51,572 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 27.9 % is driven by our blended federal and state statutory rate of 25.2 %, and certain other permanent differences between GAAP and tax which increased our rate by 2.7 %. For the three months ended September 30, 2019, our estimated annual rate of 27.9 % was impacted by discrete items which had a net impact of decreasing our rate by 5.5 %, including federal energy tax credits claimed in the current period related to homes closed in prior years. For the nine months ended September 30, 2019 our estimated annual rate of 27.9 % was impacted by discrete items which had a net impact of decreasing our rate by 3.7 %, including federal energy tax credits and excess tax benefits for vested stock-based compensation. For the three months ended September 30, 2019 and 2018, we recorded income tax expense of $ 7.8 million and $ 5.8 million, respectively. For the nine months ended September 30, 2019 and 2018, we recorded income tax expense of $ 19.0 million and $ 22.2 million, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 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): September 30, 2019 December 31, 2018 Hierarchy Carrying Fair Value Carrying Fair Value Secured notes receivable (1) Level 2 $ 2,632 $ 2,577 $ 4,947 $ 4,830 Mortgage loans held for sale (2) Level 2 $ 95,321 $ 95,321 $ 112,394 $ 112,394 Derivative assets (3) Level 2 $ 1,593 $ 1,593 $ 726 $ 726 6.750% senior notes (4) (5) Level 2 $ 494,178 $ 535,550 $ — $ — 6.875% senior notes (4) (5) Level 2 $ — $ — $ 380,567 $ 372,488 5.875 % senior notes (4) (5) Level 2 $ 395,944 $ 413,000 $ 395,415 $ 356,000 3.278% insurance premium notes (6) Level 2 $ 6,150 $ 6,150 $ 6,475 $ 6,475 Revolving line of credit (6) Level 3 $ 278,800 $ 278,800 $ 202,500 $ 202,500 Other financing obligation (6) Level 2 $ — $ — $ 2,320 $ 2,320 Mortgage repurchase facilities (6) Level 2 $ 77,798 $ 77,798 $ 104,555 $ 104,555 (1) Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note. (2) The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans. (3) Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments. (4) Estimated fair value of the senior notes is based on recent trading activity in inactive markets. (5) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $ 5.8 million and $ 4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $ 4.9 million and $ 4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively. (6) 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 | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 13. Stock-Based Compensation During the nine months ended September 30, 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 nine months ended September 30, 2019, we also granted restricted stock units (which we refer to as “RSUs”) covering 0.6 million shares of common stock with a grant date fair value of $ 23.85 per share that vest over a three year period. A summary of our outstanding RSUs and PSUs, assuming maximum level of performance, are as follows (in thousands, except years): As of September 30, 2019 Unvested units 1,225 Unrecognized compensation cost $ 16,421 Period to recognize compensation cost 1.6 years During the three months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $ 3.9 million and $ 3.8 million, respectively. During the nine months ended September 30, 2019 and 2018, we recognized stock-based compensation expense of $ 11.4 million and $ 10.1 million, respectively. Stock-based compensation expense is included in selling, general, and administrative expense on our condensed consolidated statements of operations. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018, there were 31.2 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. On May 8, 2019, our stockholders approved an amended and restated 2017 Omnibus Incentive Plan, which increased the number of shares of our common stock authorized for issuance under the 2017 Incentive Plan by an additional 1.631 million shares. We issued 0.3 million shares of our common stock related to the vesting of RSUs during the nine months ended September 30, 2019 . 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 (the “Distribution Agreement”), 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. During the three and nine months ended September 30, 2019, we sold and issued an aggregate of 0.8 million shares and 0.9 million shares, respectively, of our common stock under the Distribution Agreement, which provided gross proceeds of $ 23.7 million and $ 26.5 million, respectively, and in connection with such sales, paid total offering costs of $ 0.6 million and $ 0.7 million, respectively. During the three and nine months ended September 30, 2018, we sold and issued an aggregate of 0.6 million and 1.1 million shares of our common stock under the Second and Third Distribution Agreements, which provided gross proceeds of $ 17.4 million and $ 32.4 million, respectively, and, in connection with such sales, paid total offering costs of $ 0.5 million and $ 1.1 million respectively . 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 . This Distribution Agreement had $ 56.1 million remaining as of September 30, 2019. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings Per Share We use the two-class method of calculating EPS, where applicable, as our previously issued non-vested restricted stock awards had 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 and nine months ended September 30, 2019 and 2018 (in thousands, except share and per share information): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator Net income $ 27,024 $ 17,048 $ 59,636 $ 70,261 Less: Undistributed earnings allocated to participating securities — — — ( 58 ) Net income allocable to common stockholders $ 27,024 $ 17,048 $ 59,636 $ 70,203 Denominator Weighted average common shares outstanding - basic 30,587,487 30,232,376 30,378,860 29,885,858 Dilutive effect of restricted stock units 318,748 322,505 262,334 303,200 Weighted average common shares outstanding - diluted 30,906,235 30,554,881 30,641,194 30,189,058 Earnings per share: Basic $ 0.88 $ 0.56 $ 1.96 $ 2.35 Diluted $ 0.87 $ 0.56 $ 1.95 $ 2.33 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 0.6 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2019 related to the PSUs for which performance conditions remain unsatisfied. We excluded 0.3 million common unit equivalents from diluted earnings per share during the three and nine months ended September 30, 2018 related to the PSUs granted during the periods. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 September 30, 2019 and December 31, 2018, we had $ 347.6 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 the 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 expense on our condensed 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 nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 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 commencement 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 September 30, 2019, the Company had $ 16.8 million and $ 17.4 million recognized as a right of use asset and lease 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 condensed consolidated 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 $ 1.6 million and $ 1.1 million for the three months ended September 30, 2019 and 2018, respectively. Operating lease expense was $ 4.3 million and $ 2.8 million for the nine months ended September 30, 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 September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for operating lease liabilities $ 1,460 $ 4,183 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,275 $ 2,785 Weighted-average remaining lease term 4.05 years 4.05 years Weighted-average discount rate 6.38 % 6.38 % Maturities of lease liabilities as of September 30, 2019 were as follows (in thousands): Due in 12 month period ended September 30, 2020 $ 5,136 2021 5,191 2022 3,734 2023 3,083 2024 2,029 Thereafter 622 Total 19,795 Less: discount ( 2,415 ) Total lease liabilities $ 17,380 |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | 18. Supplemental Guarantor Information Our 5.875 % senior notes due 2025 and 6.750 % senior notes due 2027 (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”). In addition, our former 6.875 % senior notes due 2022 which were extinguished during the second quarter of 2019, were our unsecured senior obligations and were fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the 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 . The indenture governing our former 6.875 % senior notes due 2022 contained a similar provision. 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 and of the 6.750 % senior notes due 2027 , 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 September 30, 2019 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 1,894 2,125 34,489 — $ 38,508 Cash held in escrow — 30,362 — — 30,362 Accounts receivable 4,043 13,989 ( 103 ) — 17,929 Investment in consolidated subsidiaries 2,107,232 — — ( 2,107,232 ) — Inventories — 2,093,493 — — 2,093,493 Mortgage loans held for sale — — 95,321 — 95,321 Prepaid expenses and other assets 8,451 108,265 13,209 — 129,925 Deferred tax assets, net 14,277 — — — 14,277 Property and equipment, net 15,179 19,247 832 — 35,258 Amortizable intangible assets, net — 4,094 — — 4,094 Goodwill — 30,395 — — 30,395 Total assets $ 2,151,076 $ 2,301,970 $ 143,748 $ ( 2,107,232 ) $ 2,489,562 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 190 77,882 623 — $ 78,695 Accrued expenses and other liabilities 30,785 166,443 9,590 — 206,818 Notes payable 890,122 6,150 — — 896,272 Revolving line of credit 278,800 — — — 278,800 Mortgage repurchase facilities — — 77,798 — 77,798 Total liabilities 1,199,897 250,475 88,011 — 1,538,383 Stockholders’ equity: 951,179 2,051,495 55,737 ( 2,107,232 ) 951,179 Total liabilities and stockholders’ equity $ 2,151,076 $ 2,301,970 $ 143,748 $ ( 2,107,232 ) $ 2,489,562 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 — — 112,394 — 112,394 Prepaid expenses and other assets 51,177 85,224 3,996 — 140,397 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 September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 573,860 — — $ 573,860 Land sales and other revenues — 6,083 — — 6,083 — 579,943 — — 579,943 Financial services revenue — — 10,419 10,419 Total revenues — 579,943 10,419 — 590,362 Homebuilding cost of revenues Cost of home sales revenues — ( 469,834 ) — — ( 469,834 ) Cost of land sales and other revenues — ( 4,624 ) — — ( 4,624 ) — ( 474,458 ) — — ( 474,458 ) Financial services costs — — ( 8,174 ) ( 8,174 ) Selling, general and administrative ( 17,621 ) ( 55,213 ) — — ( 72,834 ) Equity in earnings from consolidated subsidiaries 39,268 — — ( 39,268 ) — Other income (expense) 104 ( 119 ) ( 41 ) — ( 56 ) Income before income tax expense 21,751 50,153 2,204 ( 39,268 ) 34,840 Income tax expense 5,273 ( 12,539 ) ( 550 ) — ( 7,816 ) Net income $ 27,024 $ 37,614 $ 1,654 $ ( 39,268 ) $ 27,024 Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — $ 552,876 $ — $ — $ 552,876 Land sales and other revenues — 1,131 — — 1,131 — 554,007 — — 554,007 Financial services revenue — — 7,722 — 7,722 Total revenues — 554,007 7,722 — 561,729 Homebuilding cost of revenues Cost of home sales revenues — ( 460,144 ) — — ( 460,144 ) Cost of land sales and other revenues — ( 1,093 ) — — ( 1,093 ) — ( 461,237 ) — — ( 461,237 ) Financial services costs — — ( 6,056 ) — ( 6,056 ) Selling, general and administrative ( 20,187 ) ( 50,788 ) — — ( 70,975 ) Acquisition expense ( 58 ) — — — ( 58 ) Equity in earnings from consolidated subsidiaries 32,282 — — ( 32,282 ) — Other income (expense) 61 ( 606 ) — — ( 545 ) Income before income tax expense 12,098 41,376 1,666 ( 32,282 ) 22,858 Income tax expense 4,950 ( 10,344 ) ( 416 ) — ( 5,810 ) Net income $ 17,048 $ 31,032 $ 1,250 $ ( 32,282 ) $ 17,048 Supplemental Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 1,705,798 — — $ 1,705,798 Land sales and other revenues — 8,837 — — 8,837 — 1,714,635 — — 1,714,635 Financial services revenue — — 28,734 28,734 Total revenues — 1,714,635 28,734 — 1,743,369 Homebuilding cost of revenues Cost of homes sales revenues — ( 1,407,519 ) — — ( 1,407,519 ) Cost of land sales and other revenues — ( 6,115 ) — — ( 6,115 ) — ( 1,413,634 ) — — ( 1,413,634 ) Financial services costs — — ( 22,750 ) — ( 22,750 ) Selling, general and administrative ( 55,089 ) ( 161,898 ) — — ( 216,987 ) Loss on debt extinguishment ( 10,832 ) — — — ( 10,832 ) Equity in earnings from consolidated subsidiaries 108,939 — — ( 108,939 ) — Other income (expense) ( 664 ) 57 108 — ( 499 ) Income before income tax expense 42,354 139,160 6,092 ( 108,939 ) 78,667 Income tax expense 17,282 ( 34,790 ) ( 1,523 ) — ( 19,031 ) Net income $ 59,636 $ 104,370 $ 4,569 $ ( 108,939 ) $ 59,636 Supplemental Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 1,469,871 — — $ 1,469,871 Land sales and other revenues — 4,304 — — 4,304 — 1,474,175 — — 1,474,175 Financial services revenue — — 21,292 — 21,292 Total revenues — 1,474,175 21,292 — 1,495,467 Homebuilding cost of revenues Cost of homes sales revenues — ( 1,206,924 ) — — ( 1,206,924 ) Cost of land sales and other revenues — ( 3,010 ) — — ( 3,010 ) — ( 1,209,934 ) — — ( 1,209,934 ) Financial services costs — — ( 15,836 ) — ( 15,836 ) Selling, general and administrative ( 53,802 ) ( 137,328 ) — — ( 191,130 ) Acquisition expense ( 395 ) — — — ( 395 ) Equity in earnings from consolidated subsidiaries 97,688 — — ( 97,688 ) — Equity in income from unconsolidated subsidiaries 14,849 — — — 14,849 Other income (expense) ( 194 ) ( 359 ) — — ( 553 ) Income before income tax expense 58,146 126,554 5,456 ( 97,688 ) 92,468 Income tax expense 12,115 ( 32,904 ) ( 1,418 ) — ( 22,207 ) Net income $ 70,261 $ 93,650 $ 4,038 $ ( 97,688 ) $ 70,261 Supplemental Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ ( 52,863 ) ( 112,548 ) 16,447 — $ ( 148,964 ) Net cash provided by/(used in) investing activities $ ( 146,499 ) ( 7,610 ) 163 142,391 $ ( 11,555 ) Financing activities Borrowings under revolving credit facilities $ 1,184,800 — — — $ 1,184,800 Payments on revolving credit facilities ( 1,108,500 ) — — — ( 1,108,500 ) Proceeds from the issuance of senior notes due 2027 500,000 — — — 500,000 Extinguishment of senior notes due 2022 ( 391,942 ) — — — ( 391,942 ) Debt issuance costs ( 6,075 ) — — — ( 6,075 ) Proceeds from the issuance of insurance premium notes and other — 12,629 — — 12,629 Principal payments on insurance notes payable — ( 19,275 ) — — ( 19,275 ) Net proceeds from mortgage repurchase facilities — — ( 26,757 ) — ( 26,757 ) Net proceeds from issuances of common stock 25,817 — — — 25,817 Repurchases of common stock upon vesting of stock based compensation ( 3,588 ) — — — ( 3,588 ) Repurchases of common stock under our stock repurchase program ( 1,439 ) — — — ( 1,439 ) Payments from (and advances to) parent/subsidiary — 125,834 16,557 ( 142,391 ) — Net cash provided by (used in) financing activities $ 199,073 $ 119,188 $ ( 10,200 ) $ ( 142,391 ) $ 165,670 Net increase (decrease) $ ( 289 ) $ ( 970 ) $ 6,410 $ — $ 5,151 Cash and cash equivalents and Restricted cash Beginning of period $ 2,183 4,006 30,252 — $ 36,441 End of period $ 1,894 $ 3,036 $ 36,662 $ — $ 41,592 Cash and cash equivalents $ 1,894 2,125 34,489 — $ 38,508 Restricted Cash — 911 2,173 — 3,084 Cash and cash equivalents and Restricted cash $ 1,894 $ 3,036 $ 36,662 $ — $ 41,592 Supplemental Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ ( 71,743 ) ( 123,418 ) ( 5,256 ) ( 16,580 ) $ ( 216,997 ) Net cash provided by/(used in) investing activities $ ( 153,607 ) ( 165,939 ) ( 159 ) 280,048 $ ( 39,657 ) Financing activities Borrowings under revolving credit facilities $ 520,000 — — — $ 520,000 Payments on revolving credit facilities ( 284,000 ) — — — ( 284,000 ) Proceeds from insurance notes payable — 11,838 — — 11,838 Extinguishments of debt assumed in business combination ( 94,231 ) — — — ( 94,231 ) Debt issuance costs ( 3,521 ) — — — ( 3,521 ) Principal payments on notes payable ( 9 ) ( 2,164 ) — — ( 2,173 ) Repurchases of common stock upon vesting of stock based compensation ( 5,483 ) — — — ( 5,483 ) Payments from (and advances to) parent/subsidiary 5,130 263,120 11,798 ( 280,048 ) — Net proceeds from mortgage repurchase facilities — — 9,008 — 9,008 Net proceeds from issuances of common stock 31,230 — — — 31,230 Net cash provided by (used in) financing activities $ 169,116 $ 272,794 $ 20,806 $ ( 280,048 ) $ 182,668 Net increase (decrease) $ ( 56,234 ) $ ( 16,563 ) $ 15,391 $ ( 16,580 ) $ ( 73,986 ) Cash and cash equivalents and Restricted cash Beginning of period $ 56,234 28,044 9,435 — $ 93,713 End of period $ — $ 11,481 $ 24,826 $ ( 16,580 ) $ 19,727 Cash and cash equivalents $ — 8,922 23,585 ( 16,580 ) $ 15,927 Restricted Cash — 2,559 1,241 — 3,800 Cash and cash equivalents and Restricted cash $ — $ 11,481 $ 24,826 $ ( 16,580 ) $ 19,727 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 9 Months Ended |
Sep. 30, 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, Iowa, Michigan, 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 targets first time homebuyers, primarily 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. 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 currently 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. |
Reclassifications | Reclassifications In order to conform to current year presentation, mortgage loans held for investment and derivative assets of $ 1.0 million and $ 0.7 million, respectively, have been reclassified to prepaid expenses and other assets from mortgage loans held for sale on the condensed consolidated balance sheets as of December 31, 2018. |
Recently Adopted And Issued Accounting Standards | Recently Adopted Accounting Standards Leases The Financial Accounting Standards Board (which we refer to as “FASB”) issued Accounting Standards Codification (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 carry forward 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 condensed 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 Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The standard changes the accounting for credit losses for most financial assets and certain other instruments. Credit losses which have historically been accounted for on an incurred loss basis will now be accounted for using an estimate of lifetime expected credit losses. This will generally result in earlier recognition of allowances for credit losses. The standard is effective for the Company on January 1, 2020. Upon adoption, the standard will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We anticipate ASU 2016-13 will apply to certain of our loans held for investment and certain receivable balances. We do not anticipate this standard having a material effect on the consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).” This standard aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for the Company January 1, 2020. Upon adoption, the Company has elected to apply the standard prospectively. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Reporting Segments (Tables)
Reporting Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Reporting Segments [Abstract] | |
Schedule Of Total Revenue And Pretax Income By Segment | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue: West $ 116,874 $ 105,949 $ 364,220 $ 354,087 Mountain 171,617 162,912 510,693 488,928 Texas 68,812 56,220 180,820 157,793 Southeast 118,610 141,458 356,236 360,653 Wade Jurney Homes 104,030 87,468 302,666 112,714 Financial Services 10,419 7,722 28,734 21,292 Corporate — — — — Total revenue $ 590,362 $ 561,729 $ 1,743,369 $ 1,495,467 Income (loss) before income tax expense: West $ 9,013 $ 7,478 $ 27,634 $ 29,494 Mountain 20,552 18,753 62,386 61,995 Texas 8,290 3,539 17,626 10,319 Southeast 7,079 10,401 17,467 24,106 Wade Jurney Homes 6,032 451 18,323 265 Financial Services 2,245 1,666 5,984 5,456 Corporate ( 18,371 ) ( 19,430 ) ( 70,753 ) ( 39,167 ) Total income before income tax expense $ 34,840 $ 22,858 $ 78,667 $ 92,468 |
Schedule Of Total Assets By Segment | September 30, December 31, 2019 2018 West $ 625,085 $ 502,381 Mountain 674,894 621,757 Texas 222,819 209,550 Southeast 455,289 448,681 Wade Jurney 287,923 204,925 Financial Services 144,682 146,710 Corporate 78,870 120,251 Total assets $ 2,489,562 $ 2,254,255 |
Business Combinations (Tables)
Business Combinations (Tables) - Wade Jurney Homes [Member] | 9 Months Ended |
Sep. 30, 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 | Nine Months Ended September 30, 2018 Total revenues $ 1,645,858 Income before tax expense $ 87,092 Income tax expense ( 21,773 ) Net income $ 65,319 Less: Undistributed earnings allocated to participating securities ( 54 ) Numerator for basic and diluted pro forma EPS $ 65,265 Pro forma weighted average shares-basic 29,885,858 Pro forma weighted average shares-diluted 30,189,058 Pro forma basic EPS $ 2.18 Pro forma diluted EPS $ 2.16 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventories [Abstract] | |
Schedule Of Inventories | September 30, December 31, 2019 2018 Homes under construction $ 1,205,232 $ 1,073,682 Land and land development 820,126 720,719 Capitalized interest 68,135 53,842 Total inventories $ 2,093,493 $ 1,848,243 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Prepaid Expenses and Other Assets [Abstract] | |
Schedule Of Prepaid Expenses And Other Assets | September 30, December 31, 2019 2018 Prepaid insurance $ 29,311 $ 20,226 Lot option and escrow deposits 50,758 51,038 Performance deposits 6,814 4,552 Deferred financing costs revolving line of credit, net 3,530 4,155 Restricted cash (1) 3,084 3,539 Secured note receivable 2,632 4,947 Right of use assets 16,760 — Insurance receivable and other 17,036 51,940 Total prepaid expenses and other assets $ 129,925 $ 140,397 (1) Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities. |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accrued Expenses and Other Liabilities [Abstract] | |
Schedule Of Accrued Expenses And Other Liabilities | September 30, December 31, 2019 2018 Earnest money deposits $ 13,805 $ 13,990 Warranty reserve 9,990 7,970 Accrued compensation costs 22,636 29,770 Land development and home construction accruals 117,511 77,748 Accrued interest 18,327 15,636 Lease liabilities - operating leases 17,380 — Liability for product financing arrangements and other 7,169 68,043 Total accrued expenses and other liabilities $ 206,818 $ 213,157 |
Warranties (Tables)
Warranties (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Warranties [Abstract] | |
Schedule Of Changes In Warranty Accrual | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 9,768 $ 10,269 $ 7,970 $ 8,531 Warranty reserve assumed in business combination — — — 397 Warranty expense provisions 1,665 1,568 5,433 4,789 Payments ( 870 ) ( 968 ) ( 3,063 ) ( 2,688 ) Warranty adjustment ( 573 ) ( 597 ) ( 350 ) ( 757 ) Ending balance $ 9,990 $ 10,272 $ 9,990 $ 10,272 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt [Abstract] | |
Schedule Of Outstanding Debt Obligations | September 30, December 31, 2019 2018 6.750% senior notes, due May 2027 (1) $ 494,178 $ — 5.875% senior notes, due July 2025 (1) 395,944 395,415 6.875% senior notes, due May 2022 (1) — 380,567 Insurance premium notes and other financing obligations 6,150 8,795 Notes payable 896,272 784,777 Revolving line of credit, due April 2022 278,800 202,500 Mortgage repurchase facility 77,798 104,555 Total debt $ 1,252,870 $ 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) | 9 Months Ended |
Sep. 30, 2019 | |
Interest [Abstract] | |
Schedule Of Capitalized Interest Costs | Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest capitalized beginning of period $ 63,068 $ 47,797 $ 53,842 $ 41,762 Interest capitalized during period 19,325 16,109 55,792 43,387 Less: capitalized interest in cost of sales ( 14,258 ) ( 12,334 ) ( 41,499 ) ( 33,577 ) Interest capitalized end of period $ 68,135 $ 51,572 $ 68,135 $ 51,572 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments | September 30, 2019 December 31, 2018 Hierarchy Carrying Fair Value Carrying Fair Value Secured notes receivable (1) Level 2 $ 2,632 $ 2,577 $ 4,947 $ 4,830 Mortgage loans held for sale (2) Level 2 $ 95,321 $ 95,321 $ 112,394 $ 112,394 Derivative assets (3) Level 2 $ 1,593 $ 1,593 $ 726 $ 726 6.750% senior notes (4) (5) Level 2 $ 494,178 $ 535,550 $ — $ — 6.875% senior notes (4) (5) Level 2 $ — $ — $ 380,567 $ 372,488 5.875 % senior notes (4) (5) Level 2 $ 395,944 $ 413,000 $ 395,415 $ 356,000 3.278% insurance premium notes (6) Level 2 $ 6,150 $ 6,150 $ 6,475 $ 6,475 Revolving line of credit (6) Level 3 $ 278,800 $ 278,800 $ 202,500 $ 202,500 Other financing obligation (6) Level 2 $ — $ — $ 2,320 $ 2,320 Mortgage repurchase facilities (6) Level 2 $ 77,798 $ 77,798 $ 104,555 $ 104,555 (1) Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note. (2) The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans. (3) Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments. (4) Estimated fair value of the senior notes is based on recent trading activity in inactive markets. (5) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $ 5.8 million and $ 4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $ 4.9 million and $ 4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively. (6) Carrying amount approximates fair value due to short-term nature and interest rate terms. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stock-Based Compensation [Abstract] | |
Summary Of Outstanding Restricted Stock And Performance Stock Units | As of September 30, 2019 Unvested units 1,225 Unrecognized compensation cost $ 16,421 Period to recognize compensation cost 1.6 years |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator Net income $ 27,024 $ 17,048 $ 59,636 $ 70,261 Less: Undistributed earnings allocated to participating securities — — — ( 58 ) Net income allocable to common stockholders $ 27,024 $ 17,048 $ 59,636 $ 70,203 Denominator Weighted average common shares outstanding - basic 30,587,487 30,232,376 30,378,860 29,885,858 Dilutive effect of restricted stock units 318,748 322,505 262,334 303,200 Weighted average common shares outstanding - diluted 30,906,235 30,554,881 30,641,194 30,189,058 Earnings per share: Basic $ 0.88 $ 0.56 $ 1.96 $ 2.35 Diluted $ 0.87 $ 0.56 $ 1.95 $ 2.33 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Information Of Lease Right Of Use Asset And Lease Liability | Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Cash paid for operating lease liabilities $ 1,460 $ 4,183 Right-of-use assets obtained in exchange for new operating lease obligations $ 1,275 $ 2,785 Weighted-average remaining lease term 4.05 years 4.05 years Weighted-average discount rate 6.38 % 6.38 % |
Maturities Of Lease Liabilities | Due in 12 month period ended September 30, 2020 $ 5,136 2021 5,191 2022 3,734 2023 3,083 2024 2,029 Thereafter 622 Total 19,795 Less: discount ( 2,415 ) Total lease liabilities $ 17,380 |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Condensed Consolidated Balance Sheet | Supplemental Condensed Consolidated Balance Sheet As of September 30, 2019 (in thousands) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Assets Cash and cash equivalents $ 1,894 2,125 34,489 — $ 38,508 Cash held in escrow — 30,362 — — 30,362 Accounts receivable 4,043 13,989 ( 103 ) — 17,929 Investment in consolidated subsidiaries 2,107,232 — — ( 2,107,232 ) — Inventories — 2,093,493 — — 2,093,493 Mortgage loans held for sale — — 95,321 — 95,321 Prepaid expenses and other assets 8,451 108,265 13,209 — 129,925 Deferred tax assets, net 14,277 — — — 14,277 Property and equipment, net 15,179 19,247 832 — 35,258 Amortizable intangible assets, net — 4,094 — — 4,094 Goodwill — 30,395 — — 30,395 Total assets $ 2,151,076 $ 2,301,970 $ 143,748 $ ( 2,107,232 ) $ 2,489,562 Liabilities and stockholders’ equity Liabilities: Accounts payable $ 190 77,882 623 — $ 78,695 Accrued expenses and other liabilities 30,785 166,443 9,590 — 206,818 Notes payable 890,122 6,150 — — 896,272 Revolving line of credit 278,800 — — — 278,800 Mortgage repurchase facilities — — 77,798 — 77,798 Total liabilities 1,199,897 250,475 88,011 — 1,538,383 Stockholders’ equity: 951,179 2,051,495 55,737 ( 2,107,232 ) 951,179 Total liabilities and stockholders’ equity $ 2,151,076 $ 2,301,970 $ 143,748 $ ( 2,107,232 ) $ 2,489,562 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 — — 112,394 — 112,394 Prepaid expenses and other assets 51,177 85,224 3,996 — 140,397 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 September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 573,860 — — $ 573,860 Land sales and other revenues — 6,083 — — 6,083 — 579,943 — — 579,943 Financial services revenue — — 10,419 10,419 Total revenues — 579,943 10,419 — 590,362 Homebuilding cost of revenues Cost of home sales revenues — ( 469,834 ) — — ( 469,834 ) Cost of land sales and other revenues — ( 4,624 ) — — ( 4,624 ) — ( 474,458 ) — — ( 474,458 ) Financial services costs — — ( 8,174 ) ( 8,174 ) Selling, general and administrative ( 17,621 ) ( 55,213 ) — — ( 72,834 ) Equity in earnings from consolidated subsidiaries 39,268 — — ( 39,268 ) — Other income (expense) 104 ( 119 ) ( 41 ) — ( 56 ) Income before income tax expense 21,751 50,153 2,204 ( 39,268 ) 34,840 Income tax expense 5,273 ( 12,539 ) ( 550 ) — ( 7,816 ) Net income $ 27,024 $ 37,614 $ 1,654 $ ( 39,268 ) $ 27,024 Supplemental Condensed Consolidated Statement of Operations For the Three Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — $ 552,876 $ — $ — $ 552,876 Land sales and other revenues — 1,131 — — 1,131 — 554,007 — — 554,007 Financial services revenue — — 7,722 — 7,722 Total revenues — 554,007 7,722 — 561,729 Homebuilding cost of revenues Cost of home sales revenues — ( 460,144 ) — — ( 460,144 ) Cost of land sales and other revenues — ( 1,093 ) — — ( 1,093 ) — ( 461,237 ) — — ( 461,237 ) Financial services costs — — ( 6,056 ) — ( 6,056 ) Selling, general and administrative ( 20,187 ) ( 50,788 ) — — ( 70,975 ) Acquisition expense ( 58 ) — — — ( 58 ) Equity in earnings from consolidated subsidiaries 32,282 — — ( 32,282 ) — Other income (expense) 61 ( 606 ) — — ( 545 ) Income before income tax expense 12,098 41,376 1,666 ( 32,282 ) 22,858 Income tax expense 4,950 ( 10,344 ) ( 416 ) — ( 5,810 ) Net income $ 17,048 $ 31,032 $ 1,250 $ ( 32,282 ) $ 17,048 Supplemental Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 1,705,798 — — $ 1,705,798 Land sales and other revenues — 8,837 — — 8,837 — 1,714,635 — — 1,714,635 Financial services revenue — — 28,734 28,734 Total revenues — 1,714,635 28,734 — 1,743,369 Homebuilding cost of revenues Cost of homes sales revenues — ( 1,407,519 ) — — ( 1,407,519 ) Cost of land sales and other revenues — ( 6,115 ) — — ( 6,115 ) — ( 1,413,634 ) — — ( 1,413,634 ) Financial services costs — — ( 22,750 ) — ( 22,750 ) Selling, general and administrative ( 55,089 ) ( 161,898 ) — — ( 216,987 ) Loss on debt extinguishment ( 10,832 ) — — — ( 10,832 ) Equity in earnings from consolidated subsidiaries 108,939 — — ( 108,939 ) — Other income (expense) ( 664 ) 57 108 — ( 499 ) Income before income tax expense 42,354 139,160 6,092 ( 108,939 ) 78,667 Income tax expense 17,282 ( 34,790 ) ( 1,523 ) — ( 19,031 ) Net income $ 59,636 $ 104,370 $ 4,569 $ ( 108,939 ) $ 59,636 Supplemental Condensed Consolidated Statement of Operations For the Nine Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Revenues Homebuilding revenues Home sales revenues $ — 1,469,871 — — $ 1,469,871 Land sales and other revenues — 4,304 — — 4,304 — 1,474,175 — — 1,474,175 Financial services revenue — — 21,292 — 21,292 Total revenues — 1,474,175 21,292 — 1,495,467 Homebuilding cost of revenues Cost of homes sales revenues — ( 1,206,924 ) — — ( 1,206,924 ) Cost of land sales and other revenues — ( 3,010 ) — — ( 3,010 ) — ( 1,209,934 ) — — ( 1,209,934 ) Financial services costs — — ( 15,836 ) — ( 15,836 ) Selling, general and administrative ( 53,802 ) ( 137,328 ) — — ( 191,130 ) Acquisition expense ( 395 ) — — — ( 395 ) Equity in earnings from consolidated subsidiaries 97,688 — — ( 97,688 ) — Equity in income from unconsolidated subsidiaries 14,849 — — — 14,849 Other income (expense) ( 194 ) ( 359 ) — — ( 553 ) Income before income tax expense 58,146 126,554 5,456 ( 97,688 ) 92,468 Income tax expense 12,115 ( 32,904 ) ( 1,418 ) — ( 22,207 ) Net income $ 70,261 $ 93,650 $ 4,038 $ ( 97,688 ) $ 70,261 |
Supplemental Condensed Consolidated Statement Of Cash Flows | Supplemental Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2019 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ ( 52,863 ) ( 112,548 ) 16,447 — $ ( 148,964 ) Net cash provided by/(used in) investing activities $ ( 146,499 ) ( 7,610 ) 163 142,391 $ ( 11,555 ) Financing activities Borrowings under revolving credit facilities $ 1,184,800 — — — $ 1,184,800 Payments on revolving credit facilities ( 1,108,500 ) — — — ( 1,108,500 ) Proceeds from the issuance of senior notes due 2027 500,000 — — — 500,000 Extinguishment of senior notes due 2022 ( 391,942 ) — — — ( 391,942 ) Debt issuance costs ( 6,075 ) — — — ( 6,075 ) Proceeds from the issuance of insurance premium notes and other — 12,629 — — 12,629 Principal payments on insurance notes payable — ( 19,275 ) — — ( 19,275 ) Net proceeds from mortgage repurchase facilities — — ( 26,757 ) — ( 26,757 ) Net proceeds from issuances of common stock 25,817 — — — 25,817 Repurchases of common stock upon vesting of stock based compensation ( 3,588 ) — — — ( 3,588 ) Repurchases of common stock under our stock repurchase program ( 1,439 ) — — — ( 1,439 ) Payments from (and advances to) parent/subsidiary — 125,834 16,557 ( 142,391 ) — Net cash provided by (used in) financing activities $ 199,073 $ 119,188 $ ( 10,200 ) $ ( 142,391 ) $ 165,670 Net increase (decrease) $ ( 289 ) $ ( 970 ) $ 6,410 $ — $ 5,151 Cash and cash equivalents and Restricted cash Beginning of period $ 2,183 4,006 30,252 — $ 36,441 End of period $ 1,894 $ 3,036 $ 36,662 $ — $ 41,592 Cash and cash equivalents $ 1,894 2,125 34,489 — $ 38,508 Restricted Cash — 911 2,173 — 3,084 Cash and cash equivalents and Restricted cash $ 1,894 $ 3,036 $ 36,662 $ — $ 41,592 Supplemental Condensed Consolidated Statement of Cash Flows For the Nine Months Ended September 30, 2018 ( in thousands ) Guarantor Non Guarantor Elimination Consolidated Century Subsidiaries Subsidiaries Entries Century Net cash provided by/(used in) operating activities $ ( 71,743 ) ( 123,418 ) ( 5,256 ) ( 16,580 ) $ ( 216,997 ) Net cash provided by/(used in) investing activities $ ( 153,607 ) ( 165,939 ) ( 159 ) 280,048 $ ( 39,657 ) Financing activities Borrowings under revolving credit facilities $ 520,000 — — — $ 520,000 Payments on revolving credit facilities ( 284,000 ) — — — ( 284,000 ) Proceeds from insurance notes payable — 11,838 — — 11,838 Extinguishments of debt assumed in business combination ( 94,231 ) — — — ( 94,231 ) Debt issuance costs ( 3,521 ) — — — ( 3,521 ) Principal payments on notes payable ( 9 ) ( 2,164 ) — — ( 2,173 ) Repurchases of common stock upon vesting of stock based compensation ( 5,483 ) — — — ( 5,483 ) Payments from (and advances to) parent/subsidiary 5,130 263,120 11,798 ( 280,048 ) — Net proceeds from mortgage repurchase facilities — — 9,008 — 9,008 Net proceeds from issuances of common stock 31,230 — — — 31,230 Net cash provided by (used in) financing activities $ 169,116 $ 272,794 $ 20,806 $ ( 280,048 ) $ 182,668 Net increase (decrease) $ ( 56,234 ) $ ( 16,563 ) $ 15,391 $ ( 16,580 ) $ ( 73,986 ) Cash and cash equivalents and Restricted cash Beginning of period $ 56,234 28,044 9,435 — $ 93,713 End of period $ — $ 11,481 $ 24,826 $ ( 16,580 ) $ 19,727 Cash and cash equivalents $ — 8,922 23,585 ( 16,580 ) $ 15,927 Restricted Cash — 2,559 1,241 — 3,800 Cash and cash equivalents and Restricted cash $ — $ 11,481 $ 24,826 $ ( 16,580 ) $ 19,727 |
Basis of Presentation (Narrativ
Basis of Presentation (Narrative) (Details) $ in Thousands | Jun. 14, 2018USD ($) | Sep. 30, 2019USD ($)segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2016 |
Summary of Significant Accounting Policies [Line Items] | |||||
Number of operating segments | segment | 5 | ||||
Mortgage loans held for investment reclassified to prepaid and other assets | $ 1,000 | ||||
Derivative assets reclassified to prepaid and other assets | $ 700 | ||||
Right of use asset | $ 16,760 | ||||
Lease liabilities - operating leases | $ 17,380 | ||||
ASC 842 [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Right of use asset | $ 17,700 | ||||
Lease liabilities - operating leases | $ 18,700 | ||||
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) | 9 Months Ended |
Sep. 30, 2019stateregionsegment | |
Segment Reporting Information [Line Items] | |
Number of operating states | 17 |
Number of operating regions | region | 4 |
Number of reportable segments | segment | 5 |
Wade Jurney Homes [Member] | |
Segment Reporting Information [Line Items] | |
Number of operating states | 11 |
Reporting Segments (Schedule Of
Reporting Segments (Schedule Of Total Revenue And Pretax Income By Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 590,362 | $ 561,729 | $ 1,743,369 | $ 1,495,467 |
Total income (loss) before income tax expense | 34,840 | 22,858 | 78,667 | 92,468 |
West [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 116,874 | 105,949 | 364,220 | 354,087 |
Total income (loss) before income tax expense | 9,013 | 7,478 | 27,634 | 29,494 |
Mountain [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 171,617 | 162,912 | 510,693 | 488,928 |
Total income (loss) before income tax expense | 20,552 | 18,753 | 62,386 | 61,995 |
Texas [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 68,812 | 56,220 | 180,820 | 157,793 |
Total income (loss) before income tax expense | 8,290 | 3,539 | 17,626 | 10,319 |
Southeast [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 118,610 | 141,458 | 356,236 | 360,653 |
Total income (loss) before income tax expense | 7,079 | 10,401 | 17,467 | 24,106 |
Wade Jurney Homes [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 104,030 | 87,468 | 302,666 | 112,714 |
Total income (loss) before income tax expense | 6,032 | 451 | 18,323 | 265 |
Financial Services [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 10,419 | 7,722 | 28,734 | 21,292 |
Total income (loss) before income tax expense | 2,245 | 1,666 | 5,984 | 5,456 |
Corporate [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total income (loss) before income tax expense | $ (18,371) | $ (19,430) | $ (70,753) | $ (39,167) |
Reporting Segments (Schedule _2
Reporting Segments (Schedule Of Total Assets By Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 2,489,562 | $ 2,254,255 |
West [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 625,085 | 502,381 |
Mountain [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 674,894 | 621,757 |
Texas [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 222,819 | 209,550 |
Southeast [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 455,289 | 448,681 |
Wade Jurney Homes [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 287,923 | 204,925 |
Financial Services [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | 144,682 | 146,710 |
Corporate [Member] | Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 78,870 | $ 120,251 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Jun. 14, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Nov. 30, 2016 |
Business Combinations [Line Items] | ||||||
Acquisition expense | $ 58 | $ 395 | ||||
Revenues | $ 590,362 | $ 561,729 | $ 1,743,369 | 1,495,467 | ||
Equity in income of unconsolidated subsidiaries | $ 14,849 | |||||
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 | |||||
Wade Jurney Homes [Member] | ||||||
Business Combinations [Line Items] | ||||||
Ownership subsidiary | 100.00% | 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 | Sep. 30, 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 | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Business Acquisition [Line Items] | |
Total revenues | $ 1,645,858 |
Income before tax expense | 87,092 |
Income tax expense | (21,773) |
Net income | 65,319 |
Less: Undistributed earnings allocated to participating securities | (54) |
Numerator for basic and diluted pro forma EPS | $ 65,265 |
Pro forma weighted average shares-basic | shares | 29,885,858 |
Pro forma weighted average shares-diluted | shares | 30,189,058 |
Pro forma basic EPS | $ / shares | $ 2.18 |
Pro forma diluted EPS | $ / shares | $ 2.16 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Inventories [Abstract] | ||||||
Homes under construction | $ 1,205,232 | $ 1,073,682 | ||||
Land and land development | 820,126 | 720,719 | ||||
Capitalized interest | 68,135 | $ 63,068 | 53,842 | $ 51,572 | $ 47,797 | $ 41,762 |
Total inventories | $ 2,093,493 | $ 1,848,243 |
Financial Services (Narrative)
Financial Services (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financial Services [Line Items] | ||
Mortgage loans in process | $ 59,200 | $ 26,200 |
Mortgage loans held for sale | $ 95,321 | $ 112,394 |
Weighted Average [Member] | ||
Financial Services [Line Items] | ||
Interest rate | 3.80% | 4.70% |
Inspire [Member] | ||
Financial Services [Line Items] | ||
Mortgage loans held for sale | $ 95,300 | $ 112,400 |
Mortgage loans held for sale aggregate outstanding principal balance | $ 92,800 | $ 108,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Schedule Of Prepaid Expenses And Other Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Prepaid Expenses and Other Assets [Abstract] | |||
Prepaid insurance | $ 29,311 | $ 20,226 | |
Lot option and escrow deposits | 50,758 | 51,038 | |
Performance deposits | 6,814 | 4,552 | |
Deferred financing costs revolving line of credit, net | 3,530 | 4,155 | |
Restricted cash | [1] | 3,084 | 3,539 |
Secured note receivable | 2,632 | 4,947 | |
Right of use assets | 16,760 | ||
Insurance receivable and other | 17,036 | 51,940 | |
Total prepaid expenses and other assets | $ 129,925 | $ 140,397 | |
[1] | Restricted cash consists of earnest money deposits for home sale contracts held by third parties as required by various jurisdictions, and certain pledge balances associated with our mortgage repurchase facilities. |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Schedule Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accrued Expenses and Other Liabilities [Abstract] | ||||||
Earnest money deposits | $ 13,805 | $ 13,990 | ||||
Warranty reserve | 9,990 | $ 9,768 | 7,970 | $ 10,272 | $ 10,269 | $ 8,531 |
Accrued compensation costs | 22,636 | 29,770 | ||||
Land development and home construction accruals | 117,511 | 77,748 | ||||
Accrued interest | 18,327 | 15,636 | ||||
Lease liabilities - operating leases | 17,380 | |||||
Liability for product financing arrangements and other | 7,169 | 68,043 | ||||
Total accrued expenses and other liabilities | $ 206,818 | $ 213,157 |
Warranties (Narrative) (Details
Warranties (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Warranties [Abstract] | ||||
Warranty adjustment | $ (573) | $ (597) | $ (350) | $ (757) |
Warranties (Schedule Of Changes
Warranties (Schedule Of Changes In Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Warranties [Abstract] | ||||
Beginning balance | $ 9,768 | $ 10,269 | $ 7,970 | $ 8,531 |
Warranty reserves assumed in business combination | 397 | |||
Warranty expense provisions | 1,665 | 1,568 | 5,433 | 4,789 |
Payments | (870) | (968) | (3,063) | (2,688) |
Warranty adjustment | (573) | (597) | (350) | (757) |
Ending balance | $ 9,990 | $ 10,272 | $ 9,990 | $ 10,272 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Jun. 10, 2019 | Mar. 23, 2019 | Feb. 12, 2019 | May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 14, 2018 | May 04, 2018 |
Debt Instrument [Line Items] | |||||||||||
Deferred issuance costs | $ 896,272,000 | $ 896,272,000 | $ 784,777,000 | ||||||||
Line of credit facility, outstanding amount | 278,800,000 | 278,800,000 | 202,500,000 | ||||||||
Mortgage repurchase facilities | 77,798,000 | 77,798,000 | $ 104,555,000 | ||||||||
Loss on debt extinguishment | $ (10,832,000) | ||||||||||
Amended And Restated Credit Agreement [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [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 | $ 278,800,000 | $ 278,800,000 | |||||||||
Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 3.10% | ||||||||||
Amended And Restated Credit Agreement [Member] | Eurodollar Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.60% | ||||||||||
Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Maximum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.10% | ||||||||||
Amended And Restated Credit Agreement [Member] | Base Rate [Member] | Minimum [Member] | Texas Capital Bank [Member] | Revolving Credit Facility [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 1.60% | ||||||||||
2027 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 500,000,000 | ||||||||||
Net proceeds from issuance of senior debt | $ 493,900,000 | ||||||||||
Interest rate | 6.75% | ||||||||||
Maturity year | 2027 | ||||||||||
Deferred issuance costs | $ 6,100,000 | ||||||||||
2022 Notes [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 6.875% | 6.875% | |||||||||
Maturity year | 2022 | ||||||||||
Extinguishment amount | $ 195,700,000 | $ 189,300,000 | $ 385,000,000 | ||||||||
Loss on debt extinguishment | 10,800,000 | ||||||||||
Mortgage Repurchase Facilities - Financial Services [Member] | Comerica Bank [Member] | Financial Services [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Incurred interest expense | $ 600,000 | $ 400,000 | 2,100,000 | $ 800,000 | |||||||
Mortgage Repurchase Facilities - Financial Services [Member] | Inspire [Member] | Comerica Bank [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Mortgage repurchase facilities | $ 77,800,000 | $ 77,800,000 | |||||||||
Mortgage Repurchase Facilities - Financial Services [Member] | Maximum [Member] | Inspire [Member] | Comerica Bank [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 140,000,000 | $ 140,000,000 |
Debt (Schedule Of Outstanding D
Debt (Schedule Of Outstanding Debt Obligations) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt [Abstract] | |||
6.750% senior notes, due May 2027 | [1] | $ 494,178 | |
5.875% senior notes, due July 2025 | [1] | 395,944 | $ 395,415 |
6.875% senior notes, due May 2022 | [1] | 380,567 | |
Insurance premium notes and other financing obligations | 6,150 | 8,795 | |
Notes payable | 896,272 | 784,777 | |
Revolving line of credit, due April 2022 | 278,800 | 202,500 | |
Mortgage repurchase facilities | 77,798 | 104,555 | |
Total debt (Carrying amount) | $ 1,252,870 | $ 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest [Abstract] | ||||
Interest capitalized beginning of period | $ 63,068 | $ 47,797 | $ 53,842 | $ 41,762 |
Interest capitalized during period | 19,325 | 16,109 | 55,792 | 43,387 |
Less: capitalized interest in cost of sales | (14,258) | (12,334) | (41,499) | (33,577) |
Interest capitalized end of period | $ 68,135 | $ 51,572 | $ 68,135 | $ 51,572 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 27.90% | 27.90% | ||
Blended federal and state statutary rate | 25.20% | |||
Increased to effective tax rate | 2.70% | |||
Percentage of decrease related to rate impacted by discrete items | 5.50% | 3.70% | ||
Income tax expense | $ 7,816 | $ 5,810 | $ 19,031 | $ 22,207 |
Fair Value Disclosures (Schedul
Fair Value Disclosures (Schedule Of Carrying Values And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Mortgage loans held for sale | $ 95,321 | $ 112,394 | |
Senior Notes 6.750% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amounts include unamortized deferred financing costs, premiums and discounts | 5,800 | ||
Senior Notes 6.875% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amounts include unamortized deferred financing costs, premiums and discounts | 4,900 | ||
Senior Notes 5.875% [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amounts include unamortized deferred financing costs, premiums and discounts | 4,100 | 4,600 | |
Level 2 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured notes receivable | [1] | 2,632 | 4,947 |
Mortgage loans held for sale | [2] | 95,321 | 112,394 |
Derivative assets | [3] | 1,593 | 726 |
6.750% senior notes | [4],[5] | 494,178 | |
6.875% senior notes | [4],[5] | 380,567 | |
5.875% senior notes | [4],[5] | 395,944 | 395,415 |
3.278 insurance premium notes | [6] | 6,150 | 6,475 |
Other financing obligation | [6] | 2,320 | |
Mortgage repurchase facilities | [6] | 77,798 | 104,555 |
Level 2 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Secured notes receivable | [1] | 2,577 | 4,830 |
Mortgage loans held for sale | [2] | 95,321 | 112,394 |
Derivative assets | [3] | 1,593 | 726 |
6.750% senior notes | [4],[5] | 535,550 | |
6.875% senior notes | [4],[5] | 372,488 | |
5.875% senior notes | [4],[5] | 413,000 | 356,000 |
3.278 insurance premium notes | [6] | 6,150 | 6,475 |
Other financing obligation | [6] | 2,320 | |
Mortgage repurchase facilities | [6] | 77,798 | 104,555 |
Level 3 [Member] | Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | [6] | 278,800 | 202,500 |
Level 3 [Member] | Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Revolving line of credit | [6] | $ 278,800 | $ 202,500 |
[1] | Estimated fair value of the secured notes receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note. | ||
[2] | The mortgage loans held for sale are carried at fair value, which is based on quoted market prices for committed mortgage loans. | ||
[3] | Derivative instruments are carried at fair value and based on market prices for similar instruments. Changes in fair value are reflected in financial services revenue on the condensed consolidated statement of operations. As of September 30, 2019 and December 31, 2018, we had immaterial amounts of derivative liabilities which are presented within accrued expenses and other liabilities on the condensed consolidated balance sheets. Refer to Note 5 – financial services for further information regarding our derivative instruments. | ||
[4] | Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2019, these amounts totaled $ 5.8 million and $ 4.1 million for the 6.750% senior notes and 5.875% senior notes, respectively. As of December 31, 2018, these amounts totaled $ 4.9 million and $ 4.6 million for the 6.875% senior notes and 5.875% senior notes, respectively. | ||
[5] | Estimated fair value of the senior notes is based on recent trading activity in inactive markets. | ||
[6] | 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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 3.9 | $ 3.8 | $ 11.4 | $ 10.1 |
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] | ||||
Restricted stock granted | 0.6 | |||
Grant date fair value | $ 23.85 | |||
Awards vesting period | 3 years |
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 | 9 Months Ended |
Sep. 30, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested units | shares | 1,225 |
Unrecognized compensation cost | $ | $ 16,421 |
Period to recognize compensation cost | 1 year 7 months 6 days |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 03, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | May 08, 2019 | Dec. 31, 2018 | May 10, 2017 |
Class of Stock [Line Items] | ||||||||
Common stock shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock shares authorized | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Preferred stock, par value | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Common stock shares issued | 31,249,373 | 31,249,373 | 30,154,791 | |||||
Common stock shares outstanding | 31,249,373 | 31,249,373 | 30,154,791 | |||||
Common stock shares issued related to vesting of RSUs | 300,000 | |||||||
Net proceeds from issuances of common stock | $ 25,817 | $ 31,230 | ||||||
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 | 1,631,000 | |||||||
Common stock shares rolled into plan | 600,000 | |||||||
Distribution Agreement [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Aggregate offering price | $ 100,000 | |||||||
Available for sale | $ 56,100 | $ 56,100 | ||||||
Common stock shares sold and issued | 800,000 | 600,000 | 900,000 | 1,100,000 | ||||
Net proceeds from issuances of common stock | $ 23,700 | $ 17,400 | $ 26,500 | $ 32,400 | ||||
Comissions and fees paid to Sales Agents | $ 600 | $ 500 | $ 700 | $ 1,100 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares related to PSU's granted | 0.6 | 0.3 | 0.6 | 0.3 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||||
Net income | $ 27,024 | $ 17,048 | $ 59,636 | $ 70,261 |
Less: Undistributed earnings allocated to participating securities | (58) | |||
Net income allocable to common stockholders | $ 27,024 | $ 17,048 | $ 59,636 | $ 70,203 |
Denominator | ||||
Weighted average common shares outstanding - basic | 30,587,487 | 30,232,376 | 30,378,860 | 29,885,858 |
Dilutive effect of restricted stock units | 318,748 | 322,505 | 262,334 | 303,200 |
Weighted average common shares outstanding - diluted | 30,906,235 | 30,554,881 | 30,641,194 | 30,189,058 |
Earnings per share: | ||||
Basic | $ 0.88 | $ 0.56 | $ 1.96 | $ 2.35 |
Diluted | $ 0.87 | $ 0.56 | $ 1.95 | $ 2.33 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies [Abstract] | ||
Outstanding letters of credit and performance bonds | $ 347.6 | $ 289.8 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lessee, Lease, Description [Line Items] | ||||
Right of use asset | $ 16,760 | $ 16,760 | ||
Lease liability | 17,380 | 17,380 | ||
Operating lease expense | $ 1,600 | $ 1,100 | $ 4,300 | $ 2,800 |
Minimum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 1 year | 1 year | ||
Maximum [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 7 years | 7 years |
Leases (Information Of Lease Ri
Leases (Information Of Lease Right Of Use Asset And Lease Liability) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 1,460 | $ 4,183 |
Right-of-use asset obtained in exchange for new operating lease obligations | $ 1,275 | $ 2,785 |
Weighted-average remaining lease term | 4 years 18 days | 4 years 18 days |
Weighted-average discount rate | 6.38% | 6.38% |
Leases (Maturities Of Lease Lia
Leases (Maturities Of Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Due in 12 month period ended September 30, | |
2020 | $ 5,136 |
2021 | 5,191 |
2022 | 3,734 |
2023 | 3,083 |
2024 | 2,029 |
Thereafter | 622 |
Total | 19,795 |
Less: discount | (2,415) |
Total lease liabilities | $ 17,380 |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Senior Notes Due 2022 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 6.875% |
Maturity year | 2022 |
Senior Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Maturity year | 2025 |
Senior Notes Due 2027 [Member] | |
Debt Instrument [Line Items] | |
Interest rate | 6.75% |
Maturity year | 2027 |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Supplemental Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||||||
Cash and cash equivalents | $ 38,508 | $ 32,902 | $ 15,927 | |||
Cash held in escrow | 30,362 | 24,344 | ||||
Accounts receivable | 17,929 | 13,464 | ||||
Inventories | 2,093,493 | 1,848,243 | ||||
Mortgage loans held for sale | 95,321 | 112,394 | ||||
Prepaid expenses and other assets | 129,925 | 140,397 | ||||
Deferred tax assets, net | 14,277 | 13,763 | ||||
Property and equipment, net | 35,258 | 33,258 | ||||
Amortizable intangible assets, net | 4,094 | 5,095 | ||||
Goodwill | 30,395 | 30,395 | ||||
Total assets | 2,489,562 | 2,254,255 | ||||
Liabilities: | ||||||
Accounts payable | 78,695 | 89,907 | ||||
Accrued expenses and other liabilities | 206,818 | 213,157 | ||||
Notes payable | 896,272 | 784,777 | ||||
Revolving line of credit | 278,800 | 202,500 | ||||
Mortgage repurchase facilities | 77,798 | 104,555 | ||||
Total liabilities | 1,538,383 | 1,394,896 | ||||
Stockholders' equity: | 951,179 | $ 897,229 | 859,359 | 840,793 | $ 803,706 | $ 735,233 |
Total liabilities and stockholders' equity | 2,489,562 | 2,254,255 | ||||
Century [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 1,894 | 2,183 | ||||
Accounts receivable | 4,043 | 6,117 | ||||
Investment in consolidated subsidiaries | 2,107,232 | 1,827,456 | ||||
Prepaid expenses and other assets | 8,451 | 51,177 | ||||
Deferred tax assets, net | 14,277 | 13,763 | ||||
Property and equipment, net | 15,179 | 13,274 | ||||
Total assets | 2,151,076 | 1,913,970 | ||||
Liabilities: | ||||||
Accounts payable | 190 | 623 | ||||
Accrued expenses and other liabilities | 30,785 | 75,506 | ||||
Notes payable | 890,122 | 775,982 | ||||
Revolving line of credit | 278,800 | 202,500 | ||||
Total liabilities | 1,199,897 | 1,054,611 | ||||
Stockholders' equity: | 951,179 | 859,359 | ||||
Total liabilities and stockholders' equity | 2,151,076 | 1,913,970 | ||||
Guarantor Subsidiaries [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 2,125 | 2,101 | 8,922 | |||
Cash held in escrow | 30,362 | 24,344 | ||||
Accounts receivable | 13,989 | 7,424 | ||||
Inventories | 2,093,493 | 1,848,243 | ||||
Prepaid expenses and other assets | 108,265 | 85,224 | ||||
Property and equipment, net | 19,247 | 18,989 | ||||
Amortizable intangible assets, net | 4,094 | 5,095 | ||||
Goodwill | 30,395 | 30,395 | ||||
Total assets | 2,301,970 | 2,021,815 | ||||
Liabilities: | ||||||
Accounts payable | 77,882 | 88,627 | ||||
Accrued expenses and other liabilities | 166,443 | 131,548 | ||||
Notes payable | 6,150 | 8,795 | ||||
Total liabilities | 250,475 | 228,970 | ||||
Stockholders' equity: | 2,051,495 | 1,792,845 | ||||
Total liabilities and stockholders' equity | 2,301,970 | 2,021,815 | ||||
Non Guarantor Subsidiaries [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 34,489 | 28,618 | 23,585 | |||
Accounts receivable | (103) | (77) | ||||
Mortgage loans held for sale | 95,321 | 112,394 | ||||
Prepaid expenses and other assets | 13,209 | 3,996 | ||||
Property and equipment, net | 832 | 995 | ||||
Total assets | 143,748 | 145,926 | ||||
Liabilities: | ||||||
Accounts payable | 623 | 657 | ||||
Accrued expenses and other liabilities | 9,590 | 6,103 | ||||
Mortgage repurchase facilities | 77,798 | 104,555 | ||||
Total liabilities | 88,011 | 111,315 | ||||
Stockholders' equity: | 55,737 | 34,611 | ||||
Total liabilities and stockholders' equity | 143,748 | 145,926 | ||||
Elimination Entries [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | $ (16,580) | |||||
Investment in consolidated subsidiaries | (2,107,232) | (1,827,456) | ||||
Total assets | (2,107,232) | (1,827,456) | ||||
Liabilities: | ||||||
Stockholders' equity: | (2,107,232) | (1,827,456) | ||||
Total liabilities and stockholders' equity | $ (2,107,232) | $ (1,827,456) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 590,362 | $ 561,729 | $ 1,743,369 | $ 1,495,467 |
Selling, general and administrative | (72,834) | (70,975) | (216,987) | (191,130) |
Loss on debt extinguishment | (10,832) | |||
Acquisition expense | (58) | (395) | ||
Equity in income of unconsolidated subsidiaries | 14,849 | |||
Other income (expense) | (56) | (545) | (499) | (553) |
Income before income tax expense | 34,840 | 22,858 | 78,667 | 92,468 |
Income tax expense | (7,816) | (5,810) | (19,031) | (22,207) |
Net income | 27,024 | 17,048 | 59,636 | 70,261 |
Century [Member] | ||||
Revenues | ||||
Selling, general and administrative | (17,621) | (20,187) | (55,089) | (53,802) |
Loss on debt extinguishment | (10,832) | |||
Acquisition expense | (58) | (395) | ||
Equity in earnings from consolidated subsidiaries | 39,268 | 32,282 | 108,939 | 97,688 |
Equity in income of unconsolidated subsidiaries | 14,849 | |||
Other income (expense) | 104 | 61 | (664) | (194) |
Income before income tax expense | 21,751 | 12,098 | 42,354 | 58,146 |
Income tax expense | 5,273 | 4,950 | 17,282 | 12,115 |
Net income | 27,024 | 17,048 | 59,636 | 70,261 |
Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 579,943 | 554,007 | 1,714,635 | 1,474,175 |
Selling, general and administrative | (55,213) | (50,788) | (161,898) | (137,328) |
Other income (expense) | (119) | (606) | 57 | (359) |
Income before income tax expense | 50,153 | 41,376 | 139,160 | 126,554 |
Income tax expense | (12,539) | (10,344) | (34,790) | (32,904) |
Net income | 37,614 | 31,032 | 104,370 | 93,650 |
Non Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 10,419 | 7,722 | 28,734 | 21,292 |
Other income (expense) | (41) | 108 | ||
Income before income tax expense | 2,204 | 1,666 | 6,092 | 5,456 |
Income tax expense | (550) | (416) | (1,523) | (1,418) |
Net income | 1,654 | 1,250 | 4,569 | 4,038 |
Elimination Entries [Member] | ||||
Revenues | ||||
Equity in earnings from consolidated subsidiaries | (39,268) | (32,282) | (108,939) | (97,688) |
Income before income tax expense | (39,268) | (32,282) | (108,939) | (97,688) |
Net income | (39,268) | (32,282) | (108,939) | (97,688) |
Home Sales [Member] | ||||
Revenues | ||||
Total revenues | 573,860 | 552,876 | 1,705,798 | 1,469,871 |
Cost of revenues | (469,834) | (460,144) | (1,407,519) | (1,206,924) |
Home Sales [Member] | Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 573,860 | 552,876 | 1,705,798 | 1,469,871 |
Cost of revenues | (469,834) | (460,144) | (1,407,519) | (1,206,924) |
Land Sales And Other [Member] | ||||
Revenues | ||||
Total revenues | 6,083 | 1,131 | 8,837 | 4,304 |
Cost of revenues | (4,624) | (1,093) | (6,115) | (3,010) |
Land Sales And Other [Member] | Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 6,083 | 1,131 | 8,837 | 4,304 |
Cost of revenues | (4,624) | (1,093) | (6,115) | (3,010) |
Homebuilding [Member] | ||||
Revenues | ||||
Total revenues | 579,943 | 554,007 | 1,714,635 | 1,474,175 |
Cost of revenues | (474,458) | (461,237) | (1,413,634) | (1,209,934) |
Homebuilding [Member] | Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 579,943 | 554,007 | 1,714,635 | 1,474,175 |
Cost of revenues | (474,458) | (461,237) | (1,413,634) | (1,209,934) |
Financial Services [Member] | ||||
Revenues | ||||
Total revenues | 10,419 | 7,722 | 28,734 | 21,292 |
Cost of revenues | (8,174) | (6,056) | (22,750) | (15,836) |
Financial Services [Member] | Non Guarantor Subsidiaries [Member] | ||||
Revenues | ||||
Total revenues | 10,419 | 7,722 | 28,734 | 21,292 |
Cost of revenues | $ (8,174) | $ (6,056) | $ (22,750) | $ (15,836) |
Supplemental Guarantor Inform_6
Supplemental Guarantor Information (Supplemental Condensed Consolidated Statement Of Cash Flows) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | $ (148,964) | $ (216,997) | |
Net cash provided by/(used in) investing activities | (11,555) | (39,657) | |
Financing activities | |||
Borrowings under revolving credit facilities | 1,184,800 | 520,000 | |
Payments on revolving credit facilities | (1,108,500) | (284,000) | |
Extinguishments of debt assumed in business combination | (94,231) | ||
Proceeds from issuance of senior notes due 2027 | 500,000 | ||
Extinguishment of senior notes due 2022 | (391,942) | ||
Debt issuance costs | (6,075) | (3,521) | |
Proceeds from issuance of insurance premium notes and other | 12,629 | 11,838 | |
Principal payments on insurance notes payable and other | (19,275) | (2,173) | |
Net payments on mortgage repurchase facilities | (26,757) | 9,008 | |
Net proceeds from issuances of common stock | 25,817 | 31,230 | |
Repurchases of common stock upon vesting of stock based compensation | (3,588) | (5,483) | |
Repurchases of common stock under our stock repurchase program | (1,439) | ||
Net cash provided by (used in) financing activities | 165,670 | 182,668 | |
Net increase (decrease) | 5,151 | (73,986) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 36,441 | 93,713 | |
Cash and cash equivalents and Restricted cash, End of period | 41,592 | 19,727 | |
Cash and cash equivalents | 38,508 | 15,927 | $ 32,902 |
Restricted Cash | 3,084 | 3,800 | |
Elimination Entries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | (16,580) | ||
Net cash provided by/(used in) investing activities | 142,391 | 280,048 | |
Financing activities | |||
Payments from (and advances to) parent/subsidiary | (142,391) | (280,048) | |
Net cash provided by (used in) financing activities | (142,391) | (280,048) | |
Net increase (decrease) | (16,580) | ||
Cash and cash equivalents and Restricted cash, End of period | (16,580) | ||
Cash and cash equivalents | (16,580) | ||
Century [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | (52,863) | (71,743) | |
Net cash provided by/(used in) investing activities | (146,499) | (153,607) | |
Financing activities | |||
Borrowings under revolving credit facilities | 1,184,800 | 520,000 | |
Payments on revolving credit facilities | (1,108,500) | (284,000) | |
Extinguishments of debt assumed in business combination | (94,231) | ||
Proceeds from issuance of senior notes due 2027 | 500,000 | ||
Extinguishment of senior notes due 2022 | (391,942) | ||
Debt issuance costs | (6,075) | (3,521) | |
Principal payments on insurance notes payable and other | (9) | ||
Net proceeds from issuances of common stock | 25,817 | 31,230 | |
Repurchases of common stock upon vesting of stock based compensation | (3,588) | (5,483) | |
Repurchases of common stock under our stock repurchase program | (1,439) | ||
Payments from (and advances to) parent/subsidiary | 5,130 | ||
Net cash provided by (used in) financing activities | 199,073 | 169,116 | |
Net increase (decrease) | (289) | (56,234) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 2,183 | 56,234 | |
Cash and cash equivalents and Restricted cash, End of period | 1,894 | ||
Cash and cash equivalents | 1,894 | 2,183 | |
Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | (112,548) | (123,418) | |
Net cash provided by/(used in) investing activities | (7,610) | (165,939) | |
Financing activities | |||
Proceeds from issuance of insurance premium notes and other | 12,629 | 11,838 | |
Principal payments on insurance notes payable and other | (19,275) | (2,164) | |
Payments from (and advances to) parent/subsidiary | 125,834 | 263,120 | |
Net cash provided by (used in) financing activities | 119,188 | 272,794 | |
Net increase (decrease) | (970) | (16,563) | |
Cash and cash equivalents and Restricted cash, Beginning of period | 4,006 | 28,044 | |
Cash and cash equivalents and Restricted cash, End of period | 3,036 | 11,481 | |
Cash and cash equivalents | 2,125 | 8,922 | 2,101 |
Restricted Cash | 911 | 2,559 | |
Non Guarantor Subsidiaries [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net cash provided by/(used in) operating activities | 16,447 | (5,256) | |
Net cash provided by/(used in) investing activities | 163 | (159) | |
Financing activities | |||
Net payments on mortgage repurchase facilities | (26,757) | 9,008 | |
Payments from (and advances to) parent/subsidiary | 16,557 | 11,798 | |
Net cash provided by (used in) financing activities | (10,200) | 20,806 | |
Net increase (decrease) | 6,410 | 15,391 | |
Cash and cash equivalents and Restricted cash, Beginning of period | 30,252 | 9,435 | |
Cash and cash equivalents and Restricted cash, End of period | 36,662 | 24,826 | |
Cash and cash equivalents | 34,489 | 23,585 | $ 28,618 |
Restricted Cash | $ 2,173 | $ 1,241 |