CCS - Earnings call transcript Q3 2018 | Century Communities, Inc.

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Operator

Greetings, and welcome to the Century Communities Third Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Scott Dixon, Chief Accounting Officer.

Scott Dixon

afternoon. Good to quarter joining XXXX like Century today you third Communities earnings thank would us for for We conference call.

begins, those results made and and are recently actual Factors number of implied to statements filings. found cause are call described could XX-K that beliefs from and may Certain risks or company's based filed and the the materially I these under on statement. to that information risks like Form SEC on of Before uncertainties These as forward-looking remind statements. on certain forward-looking historical most uncertainties statements a call report in the Risk management's in by differ in supplemented subject this course other be annual based to constitute the the and are not of would everyone heading current can our expectations

and company any website that are SEC our this call. at at update to on duty The www.sec.gov www.centurycommunities.com. forward-looking made no during Our available are filings statements undertakes

have Financial Chief turn Co-Chief Officer; Messenger, Dale. Rob Executive that, you not get Executive are and Chairman and the call accordance non-GAAP of will Additionally, presentation this answered. With information available call. as that on conference David the should any will isolation to substitute discussed in Management after considered call did be company's or to a I today Francescon, questions for measures not Francescon, presented Hosting in the information The be with is over this GAAP. Dale call Officer. Officer; financial intended the will financial Co-Chief be certain

Dale Francescon

on business highlights Dave balance our then markets discuss more the and business Rob up information I will our Afterwards, Thank you, Scott. will financial on results, Today sheet review updates. for reaffirmed follow balance further the detail. outlook our of in with and year. operating will call, and the

questions. lines prepared Following open will remarks, the we for our

expand revenues home to up up as in we homes. year-over-year XX% quarter new our including contracts net the XX% generated significant XX%, third in XXXX, our growth backlog sales we've profitability, up operations in and deliveries and value metrics, During XX% up continue of XX%, home and operating key

million XX% share. diluted increased year-over-year earnings per to $XX.X adjusted or $X.XX Our

Additionally, at selling brand, Century a a we quarter ended for the our actively year-over-year communities XXX XX% Communities increase.

asset-light, Texas, the expanded Ohio. in Arizona, into point These also to We markets anticipated Wade Homes the XXXX. of are lower Jurney quarter Indiana of and price generating new begin operations closings first

from led grew home During sales revenues XX% by $XXX.X prior year the of XX% to we quarter, improvement an an quarter, the home in improvement million, deliveries.

Third in which quarter segment, backlog margin nearly homes. profit was third quarter increase year-over-year, to of also homebuilding in to our $XXX $XXX our of Southeast, compared million value, X,XXX XX% expectations up September, the gross into XX% the pushed the fourth X,XXX an adjusted homes Wade backlog, activity our dollars the and constrained million in and the in the Jurney XX%. quarter prior ended XX.X% in resulting increased selling weather gross net we for region contracts experienced home portion during severe period Adjusted deliveries to mainly time. affecting a In Homes with year We with homebuilding equating quarter. line in of stable of

of platform commitment and drive homebuilding our support overall and direct year-over-year, our towards result shift our average strategy business. national diversified in progress Our attractive with markets aspects investments strong capital line our a backlog entry-level improvement accretive price in all to decreased continual is in with position of This more a in to buyers.

to our to during create tripling the a quarter, services out title solution one-stop profit group, services continue year-over-year homebuyers, nearly third its financial and operations Our mortgage, build to for which its provides $X.X insurance million.

offerings continued service Overall, to positioned financial offering for actively and are company well Jurney them the Wade Century our homebuyers. is recently our Communities success. to today existing We began our have providing

quarter rates growth which remain markets. interest job and following growth, rising and underlying deceleration have tightening While our end, still affordability in positive created in an population continued has industry-wide housing

demographic, advance Our higher comprises couple which acquired whose has we investing XX its teams, homebuilder divisional increasing top strength exposure now of began control to overall collective ability a cycles, and an deploy land, corporate, our ago capital experience many source has to national regional disciplined closes. throughout position. to contributed and The the to management Century years entry-level strategically in number been cost our our of into

the quarter, markets, expanding over in additional growth is continue Homes within in are efficiencies the track acquisitive Wade brand full Jurney focus to now all confident enhancing fourth we Into our of our our business. business of driving our targeted and expectations. on remain returns, period achieve and XXXX growing our growing a areas we to prospects our as year on last couple and years, established Following improvements our into

in emphasis which fundamentals geographic our markets to Century, demonstrates open for year of company Even with and fundamentals, such our and exposure balance of with avenues as turn Rob also and believe we detail. generate XXXX overall forward like attractive the as to now varied are this X.X us strong look move towards to the in into our stable the offerings repurchase business. of commitment business program we discuss program. the today's additional will with to a to to to share into markets I'd supply up shares, Board's will million returns, new call a over greater beyond. footprint, and to concentrated homebuilding confidence our our our of allow base We still announcement softening buyer product solid entry-level and This balanced continue to to diverse and building the backdrop repurchase value on

Robert Francescon

X.X average. increased you, well and national remain The markets afternoon, approximately months, across economic Thank the our Throughout our good to good supply national condition. average most Dale, of in indicators footprint, everyone. below month all has

within a We deploy positions local each terms, source cost continue sales our are prepared control to opportunistically, levels our and markets capital to tailor attractive and team's our believe accordingly. to and on We monitor continue to operations. of the strategies quality XX% activity in inventory the additional ability by land the enhancing XX in quarter. West. communities the Bay our area the will increased new provide to selling communities The period-end company's our division fourth open we framework and In West, strongest remains constructive

in While decline a in new period we the softening markets and net last have of third of Western both same experienced contracts. In quarter net third increased each quarter demand, over year-over-year we some deliveries the contracts experienced year. our region, Mountain the new

Wade we and contracts year-over-year of the broaden capital homes quicker during a net geographic sale our markets the for for third including levels are product. We year-over-year has turns. and aided impacted by almost of Southeast, a and investment region. both with helped in relatively quarter, and home homes. and for been of the in the In we each as lower quarter Internet of Utah tightening the the and adversely asset-light which at for yields increase its in and Jurney contracts housing XX% affordability on strong. to resulting Austin, the have prices by outlets model Houston. our the this at markets the to of more In and remained asset an deliveries the business that sector in These backlog evidenced doubling city have Homes homes and improved have while last in price completion highly by Jurney growing primarily positive, increases of respectively both attributes quarter, net also demand opposed less acquisition as reach the deliveries, surpassed us, we a Colorado XX% unique of the economies of has quarter business entry-level possible region, model, primarily Since second quickly the call which our homes. our our Wade strong higher improved end in retail scalable While the The market increased homes requires model, XX% Texas, portion where mentioned through as in closed Vegas year-over-year. remain driven our to moved the tax has points operate previous Homes made new an rebounding of Las employment of oil employment, our shift peak by business. streamlined has

Jurney As ability Wade to a manner. Homes quick result, a and scale relatively cost-efficient in have we the

in selected next the which For first we and carefully deliveries of example, have will already Wade Homes areas Jurney into Indiana quarter within Arizona, generating begin we year. anticipate expanded Texas, Ohio,

Following even markets not existing broader this served. we an entry-level now position previously within move have

are pleased grow in made While in Century, year, the the of the by we which our progress most occurred we business including as profitability. shift demand that we and we are half during this of second builders its XXXX, resulted continuing increased concessions cognizant has have with has

move comprise offerings, to entry-level We which our of have taken more to steps now over and business growing. XX% proactively

of specific affecting in and populations, formations. household general to are which mitigated the our Some employment markets, by housing, factors exhibit growing continue

had that our provide XXXX. pipeline the owned lots we for of an quarter, As controlled third XX,XXX than more extensive projected and through closings

within and provide Homes call primary our expanding I sheet executing Wade and our actions consistent recently strength in repurchase the attractive turn remains to including who investment opportunities announced Our markets, financial taking markets, and existing on Dave, Jurney accretive results maintaining value, greater on focus existing drive outlook. on balance on will share our program. detail now shareholder will to new over

David Messenger

Rob. Thank you,

nearly metrics, consistent strong quarter performance improvement of all across results showed year-to-date. our our Third with

income our deliveries to across quarter. home $X.XX diluted share prior with in our in in percentage $XXX.X to to prior XX% Consistent gross homes, diluted by XXX or sales XX% to average revenues quarter. year XX.X% price an increase margin to net homebuilding expand selling X,XXX grew markets compared increase in the offering million This was the to year in $XXX.X $XXX,XXX compared adjusted per a prior year compared to entry-level in to was per $XXX,XXX XX% $X.XX Adjusted quarter. year increased year improvement efforts million of was compared our homes Home quarter. XX% driven revenues quarter. million in prior Our compared prior the the primarily $XX.X share, our the

quarter of Third XXXX. in half to what the trends inflation experienced first similar cost we were

input help agreements of costs. rising purchasing effects and across long-term and to national Our relationships trade these efficiencies the all continue mitigate supplier

mix for typical product range. XXXX geographical to of the continue in the period, While quarterly expect XX% and adjusted gross we fourth due some our fluctuations from period to may remain XX% occur to to to quarter margin

degree Given we the we enter year. some margin of to next housing is slowing that compression market expect the currently overall occur experiencing, as

attributable adjusted homebuilding gross to basis a XX% from impacts accounting point XX.X% and largely in capitalized reminder, purchase margin compared prior a interest On cost charges. GAAP basis margin gross purchased a from to XXX sales. accounting year As was impact excludes the of quarter, as

the transactions, quarter UCP XXXX, with third to Homes million charges, we $XX.X the million and of acquisition. Jurney for During of along accounting $XX.X Sundquist Wade million the which incurred $X.X pertained purchased of

an approximately related to adjustments Homes. million adjustments accounting estimate fourth in expect incurred Wade acquisitions Wade revenue as to We costs. to complete with and two, to: XX.X% XXXX. prior This million along our doubling amortization; UCP in incurred due final that homebuilding for currently one, support The quarter accounting ASC quarter in of expect included in was year-end. by million to our We the and XXX year price $X to acquisition, recognition, adoption all of Jurney of of of basis $XX compared SG&A of increase the of point for sales $XX accounting third was have be includes Homes purchase growth, incurred and quarter. cost marketing, and which the purchase acquisition related to will XX.X% our Jurney purchase revenues integration which the percent XX depreciation led prior headcount mainly the a the we a

first the opportunities quarter with forecasted SG&A component expectations, and year. conjunction we in at our the revenue look in leverage continuing see of we next fourth As our into

as reduce revenues. We are initiatives to SG&A percent of a actively addressing

quarter prior $X it of we revenue business more capture The of $X.X on closings in the in margins Jurney mortgage, produce million income income and, revenue Homes, year continues consisting the with attractive and to with in services quarter. compared third $X.X the of a subsidiary services $XXX,XXX scale to West XXXX in will financial as Wade million stream. growing and pretax contributed insurance title Our million

our to liquidity. Now turning sheet balance and

liquidity and of September of debt $XXX.X of revolver stockholders’ cash we including XX, XXXX, $XXX $XX.X million total equity. $X total on long-term had of availability million million, our As with unsecured billion million of $XXX.X of and

acquisition and result the platform. direct across with than growth the Wade Jurney higher the a secured debt as is of quarter levels, at related our however, leverage end of Our historical Homes funding along second payoffs

of anticipate our objectives we to less. returns, solid XXXX. long-term on generate year be our with In achieve put in year-to-date line ground or the investments target closing, us we will results these As our full for XX%

our XXXX deliveries and homes to in be X,XXX $X.X reiterating billion to are of revenues outlooks We the to X,XXX be in the the range for home of range $X billion. sales to

rate, income please capital XXXX. full resources, positions to XX% and program, year We another excluding well strategic deliver discrete of capitalize our continue equity we lines on record for diversified to year open the enhance an the returns our strong approximately remain earnings. tax for entry-level share investments and market questions. new on repurchase anticipate Operator, With positioned of to emphasis, items,

Operator

Nishu [Operator with Bank. Our a from conducting question-and-answer Sood, At questions. question first your this Deutsche will be time proceed comes session. Please we Instructions]

Timothy Daley

actually Daley Tim Nishu. on is This for

just… guess, I So

Dale Francescon

Hi, Tim.

Timothy Daley

the So expansion. question Jurney I guess, the on Wade first

impact we new will four guess, I the for these operations to on information, we magnitude, of looks closings think the commentary the the about that quite and that's on should of platform. guess, ability obviously, But how the the about, next new about positive order rollout year? in expect quarter thinking -- we next just obviously, the of quickly I scale year. the that thank states of kind details you the So have first

we That'd more just helpful. could be So some if get details.

Dale Francescon

market, we're obviously will grow. Tim, -- to expansion so we in any Well, the the Sure. like continue as longer it

first we'll that some by But we'll And get providing guidance anticipate additional quarter, information markets. the quarter. will that. closings closings more on the So of give we we year, have number look those at we from grow as you then quarter for into next as

Timothy Daley

Okay. Jurney. the on And then, I guess, Wade just

out on kind were up down seems Wade the on about were about Jurney order was a numbers about the basis that XXX. weather shortfall the Robert the much Well, you, closings year-over-year on call? a How basis, when to for impact orders So look this at that, the quarter. it earlier impact was units quarter of thinking just a called running we significant it, guess, on obviously storm I the guess, due A - Francescon year-over-year platform I of like XXX while

ahead of the and the a year-over-year impact Given would been hurricanes on absent we that, basis. have

Timothy Daley

I my business. then, second And question, about thinking mortgage that. Appreciate right. All guess, the

folding a how sort capture we of, into ramp you as that legacy bit Jurney I the And what rate there? aspect of in guess, -- time. expect more capture Jurney that So kind the Thanks it of you the guess, about I mortgage you on quarter for in rate and up how business? quarter third I Wade what what was in Century to business should the guys much the think thinking So get do in next versus year? Wade -- and next guess, to the about

David Messenger

this Tim, is Hey Dave.

the business. to there's mortgage a of think consider on things I So couple

markets, closings, when you rate XX% in third legacy out in it's it some the we from we've more from they're where that capture divisions double-digits. called rolling infancy quarter But a then been are some are been So where you our on their those look the range. mature, around and the have beginning where have divisions low then at

upper And up minimal actual expected we at XXXX, -- as this end haven't and look we closing good we been on any think, operations. provide you Jurney continue So yet, give we overall we that. Wade and feel When to any about do be we rolling I there put in for but out quarter, for up But to the impact will if minimis that out get XXXX de a just color in clarity that XXXX capture we've any every if given ups it anything, guidance. we we'll to have business, towards ramp think we numbers we some XXXX, recently. it that as more the

Timothy Daley

the Great, you for time. thank

David Messenger

Thanks, Tim.

Operator

comes Please JPMorgan. proceed Our Rehaut, with next question your Michael questions. from

Michael Rehaut

afternoon, Good thanks. Hi, everyone.

most guidance peers is form. your wanted guidance had focus And shape which on pretty in some of to obviously, to have reiteration question First impressive. year, for or the of the reduce

to So next some you the regions. perhaps been margin time, expecting to revenues, take your to just a just that you've pointed as was result. some the some looking we And down mentioned of year, trying -- softening the Should despite guidance of and towards account range drill pressure into at there's be same in demand end of closings I of some reiteration also the in maybe lower of terms the recent in softness. trying of kind

David Messenger

Dave. its Mike, Hey

we when on ranges. that order a We're depends have in get the to and of the range. look November that how the we midpoint We range, to think those product really variety see the we points the think ground. And path shake traffic at along and out. can to on I December hit a it seeing necessary

that's we need But take so the probably why inch felt the range going something were us If not it that within And over we enough to and range. range think that to only line, hit we adjusting down. room reiterate thought that we be the we'd accordingly. there that for to within there is bottom

Michael Rehaut

are good you've noted, It's increasing though, a demand, incentives of then occurring of type -- that associated sight you time, your is discounts into system some the think should and you're the and to is fourth the hear. hit about pace how have able seeing I to all when builders same how Is at as the you talking during taking you your we if pickup that about pressure part Okay. of of margin talked margin quarter of then any given you've some to starting there hit of guess, -- line in that this some to or XXXX have quarter see that incentive in even some second and maybe into -- alluded ways you're to in hit that always in obviously, softening or the numbers. could and, kind type pressure fourth to? this of you're some hitting in to in XXXX, as work you're, that impact or pace part alluded

Robert Francescon

seeing marketplace. we're the increase concessions definitely in Well,

set and If those you project. project project by the look ground depending the what it, comp really it's on projects inventory for a at on that though, basis in specific is

to generally speaking, now. at With the So increased the have All that though in concessions very various that national right is that footprint looking suspects we're the it seen that said, usual past show degree. homebuilding within closely starting to in forms. in we've

with our particular wouldn't we're say concessioning select so to of concessions instances I within that, project homes, And but are guidance that's in hit all the on our because that, based marketplace. just that there

Michael Rehaut

I appreciate if I could. that. quick last One one,

Just think missed before. -- I I it

just number fourth you can what XXXX? the Dave, accounting. you if in to back quarter purchase circle expect be about talked and, to You've for that anything

David Messenger

No, And would We $XX everything have $XX we zero if then quarter. Yes. with washed XXXX. as through fourth that all comes have million in we would million, accounting. the purchase the expected expect in through

Michael Rehaut

Great, thanks very much.

David Messenger

Thanks.

Operator

next Associates. Please Zelman & Thomas comes your Our with questions. from Maguire, question proceed

Thomas Maguire

taking Hey my question. guys. Thanks for

and going at the as attractive Is the something the growth like But good to time? forward at or buying think stock? can here, investing also just with Just you leverage an the it's business balance all you do guys in limiting the we feel certainly grow and be you business either is, think of continuing of same maybe on it something and do use how should value in you land or, both or the it just back capital. where buyback ratio understand an

David Messenger

This is Dave.

nailed still sheet that. the going that an I right at look got our Okay. Jurney say, we've have And up and We beyond. we've business less think legacy on balance capital, in now, we've both of of the lot for got tied in got growth our and down that, the we enough XXXX to expanding -- opportunity ability invest as requiring a land sheet already it growth we already I regions. look at our got Wade think with kind lots where for we've balance

opportunity when at look basis. returns a we're sensitive We have at our substantial a book could the compared stock fairly attractive to acquire trading you value be where pretty to the discount, where

Thomas Maguire

the to I that. I it, vein, Got guess, being, leverage appreciate I be where shorter-term same over the guess, for willing but would target, a time the in understand But I you take frame? is time XX%

David Messenger

coupled we're something But the over that. that we in going looking That's of here to do that of to acquisitions a we're still the and in time as to of target to opportunities our and with for that get we as other mortgage Sundquist discuss our Wade UCP, period buyback, investments returns, Jurney, business grow trying of back think some our terms pre-buyback the on -- business manage the current how daily, internally longer term, next over start a XX%. and generate at we can that

Thomas Maguire

guys, a great Thanks night. have it. Got

Operator

comes questions. Our Please Riley from with Rygiel, next proceed question Alex B. FBR. your

Alex Rygiel

gentlemen. nice Very quarter,

Dale Francescon

Thanks, Alex.

Alex Rygiel

some in in the over you what's metric carried quantify weather getting the the quarter and impacts quarter? could into on fourth Dave,

David Messenger

difficult to it's say. No,

guidance. that shuttered of negatively the we into time been for -- were about construction area talked from as impacted we but And sales a that QX the well. sales having a have receded. Then front in for feel As by QX. as maintaining closings our Wade water divisions, think to retail we then storefront overall have period push Don't still impacted from the annual we see quantify, Jurney Jurney the confident really the Wade that's we earlier did

Alex Rygiel

Yes. of a due mix? margin any XXXX erosion to product in is shift the And in gross

David Messenger

don't In XXXX, No, talking think so. No. I you're about? we think

Alex Rygiel

you that gross misunderstanding I the Or could XXXX did correct? Was that XXXX? a remarks bit thought environment. mentioned the I margins current mean had given And little on Yes. in you deteriorate prepared am

David Messenger

you I'm asking were thought the in XXXX sorry. margins. about I

the compression current So has when margin environment to today. to at kind that seeing we XXXX, look that been of that's we're due

Alex Rygiel

on options involve seen you use buyers Fair change premiums? in customers, any enough. And have

Robert Francescon

more terms taking housing pause, that a we're overall into higher to No, They're the not home. in in of on but are the only terms seeing as premiums, it play adjust mean, cost. -- they lot options of buyers affordability the of I selective. And comes specifically.

Alex Rygiel

lastly, today? buybacks think prioritizing about how And should versus land we purchases

David Messenger

that an expand in whether we we business. or where to daily see in We much opportunity of see evaluate the a marketplace pretty terms disconnect the

And so that think put where returns we of going get is dollar some we'll to it where is to work. best the

Alex Rygiel

you. Thank Nice quarter.

David Messenger

Thanks.

Operator

Our Jay comes Please next from Wedbush. your question McCanless, questions. with proceed

James McCanless

good my everyone. Hey, Dave, change out versus XXX first, first thing, questions. headcount? the Thanks taking two-parter a of afternoon you could for the impact on SG&A. I break guess, additional the

David Messenger

Yes.

and we you're time. recognition, later XXX near at So you exact give I depreciation. doubling talking of way revenue the number a did an about the can our

James McCanless

the Wade and to number should look basis? What Okay. that. now, Jurney, Century how this as base should we Jurney that And and about of business we quarterly Wade XXXX? a -- think we on think like then side then move year for plus If of the for rest SG&A the a about other in

David Messenger

color have we'll we for you think as I XXXX. more give our

run As some the of I number rate better a to into in we is where quarter we're be. XXXX, think you today, bring into that we'll as G&A clarity our and from is here SG&A have the looking assimilate that of fixed some kind for think going I proxies think ours their it to get XX.X% we to down

James McCanless

sales Denver home environment of much existing and but in looked Salt seen versus some numbers Lake We've the sales Denver then what And like pretty talk weaker Lake I could guess, weak, there. and, Salt seen haven't just Vegas? some you City about sounds

color can put So a more around three those you little markets?

Robert Francescon

Yes.

in overall time, We've the Lake in certainly you the in Colorado comprised seems resonated of look at September generally well our of points basis. is Vegas. in strongest look the the price overall the and then XX%. when where shifted Vegas a market When for We've lower Mountain And out is. at Vegas. three. to market year-over-year are speaking, done at been markets many And be market XX% So the not on that ours, done listings we've of region, Salt were about of but are sales very And same stellar market that performer Colorado, Vegas. to years. everywhere, Colorado, those three the and that that they has we down market but up that

inventory this said, average with two well of which would still in situation below supply So market. But the months is you is in expect month that as rising here. this as part that

homes. at just selling we're selling that previously. that still word, and strong the selling so better we We're but them And still torrid we're too had is But not maybe a we place at torrid the pace had of homes.

kind of well the market. just When much is an still product, the look division Utah, of it's Colorado that's Our Utah, a experiencing was. doing we have smaller overall, urban doing it of same thing. very investment in you as very at kind it's robust more but experiencing some not a of same infill-type good location But well. that's things and very although as It's

but heard variety from have time, rates their like from that taking rates division on spring are just they're season. purchases. market felt slower have we people out in comes prices But people a of just Salt by that risen there our as President to have Lake that as around the little people, hopefully this risen, of you've residence we selling react changes and think, as heard bit As over a some pause a and

Dale Francescon

we're it -- much The that's what the the slowdown example, back talking article And about the Denver. and I here -- to So was was market Post seeing. today, more the in in Jay, there think slowdown housing get on normal for to pretty was Denver levels and

James McCanless

rain the in we've color. quick then a two Great seen lot Number And more ones. Texas. lately in one, press about

that some October's how XQ then make orders Just just about if any impact or operations are And on had broad -- want can comments even if as the into to see October. trending. all you also, during

Dale Francescon

in of the some range region smaller on at Texas, look -- the terms side. had Yes, we Texas the it, there our is when have impact. And

it that of legacy it have look an were same from they're but we -- would a when at we're Then else, When sales basis, up overall our trends, an from seeing look at there more regions, So same. they been doesn't October has we -- impact October. have in the year-over-year issue. somewhere XX% the

grow, in a We're build it's up we're saw totality within what they're out that the part we continuing at them quarter. of XX% to we're basis, being and continuing the look But so down forward. still when optimism that's third double on as to up digits and it, platform. gives look in And from our us the opening we year-over-year we communities

James McCanless

great. thank you. Great quarter, Sounds

Dale Francescon

you, Jay. Thank

Operator

Our Barrón, questions. proceed next with Research Alex Please question comes from Center. Housing your

Alex Barrón

commentary. thanks the for Yes, gentlemen all

you mentioned are seeing about the the -- industry-wide slowdown. board same? by end the is much any than Or end? it higher across the pretty roughly lower you is So price slower How all point,

Robert Francescon

is more. points I low price right the as good Yes. a statement, general end the at very demand now. mean, still higher slowed We're seeing

Alex Barrón

are little Okay, And what spec pretty your got the that the about spec. shift And Wade how of it. the moment much versus than strategy, your Century in starts terms obviously, if longer is expect? specced build-to-order? brand, of to you a How slowdown currently stays roughly at in Jurney percentage is all likely

Robert Francescon

our less is doing specs spec slowdown are rate out be run individual on based getting each the that if we elongated of I Well, monitoring really today. mean, we'll we're than subdivision. we're starts then the

business. the managed always no really than have we way And so different that's our

today, have we a we on starts. slowed down our so at look it bit And spec when

basis eliminated to it -- we'll rate subdivision really, to our run but is. continue a monitor be on And them. what We sales consistent with by subdivision haven't

Alex Barrón

moment? at Or And you cutting are are finding you homes? paid most in in giving Is are Got downs extra that's what being the guys are it the what putting terms helpful options it, buy incentives Like, the helpful? most -- that guys offering, or sense. makes doing prices? that's you you of

Robert Francescon

works. or Generally group out. But the on that roll it prices. speaking, particular concessions the what again can potential of really we're we've at not cutting And depends entire market got we subdivision

if can. do. on and obviously, we'll what project, depending very what's we so we that's want or And individual to that market needed, And sparingly do each

Alex Barrón

it. Got

luck. of best well, Okay, you. Thank

Robert Francescon

Thank you.

Operator

And I session. for question-and-answer Dale call closing to remarks. the would of end the turn like reached have the we gentlemen, Francescon back and to Ladies

Dale Francescon

today's to next Thank speaking us quarter. with everyone again And We to again, call. you, you, for joining look operator. forward thank you on

Operator

today's concludes conference. This

this time. You may disconnect lines participation. you for your at Thank your

Century Communities (CCS) 11 Nov 182018 Q3 Earnings call transcript