CCS - Earnings call transcript Q4 2019 | Century Communities, Inc.

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Operator

Greetings. Welcome to the Century Communities Fourth Quarter 2019 Earnings Conference Call. [Operator instructions] Please note, this conference is being recorded.

I will now turn the conference over to Hunter Wells, Vice President of Investor Relations for Century Communities.

Thank you.

begin. may You

Hunter Wells

you fourth-quarter Thank us for today Good fiscal-year for XXXX Communities and earnings Century afternoon. joining conference call.

begins, those made of statements are Before that and may based call I statements. to information like the These in actual forward-looking remind based current beliefs on certain historical statements and number forward-looking expectations on differ results a that call to and in this course implied risks uncertainties constitute and the are of described materially statements. from management's the could not are cause would or everyone subject to

Certain SEC the of and company's filings. be supplemented on can in filed the recently as found report annual under these risks most Form factors other heading our risk XX-K uncertainties by

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

be this financial Additionally, on conference discussed non-GAAP call. measures certain will

answered. did Dale Chairman Francescon, today operating our Co-Chief updates. call questions not in to of The in this presentation business you considered Francescon, Chief be Rob information and Hosting Co-Chief Dale GAAP. financial Executive for are Officer; Dave Officer; review will accordance that company's as and available not Executive with presented call Messenger, Management information intended get a have the should the will substitute Officer. be isolation after is the any Financial highlights or and

business and XXXX results, with and discuss in balance Rob up financial further Dave our will our follow outlook. detail. on then markets further Afterwards, information will sheet

to will that, line-up the for turn will With our Following we prepared the over call remarks, I Dale. open questions.

Dale Francescon

net income public efficiencies quarter XXth record the represented anniversary with XXXX all due consecutive finish year positioning. Last including and pleased to to geographic as and profitability, sales, also and achieved year scale, becoming in virtually to which market strong shareholders' fourth resulted year along performance in scope our we company. Thanks, full metrics, continue opportunities a year-over-year we Hunter. our revenue, significant In improvement generate equity. deliveries, We're of very for and XXXX, fifth our with of our

enterprise relatively less to an a expansion coast growth manage three homes people, transformed independent of homebuilders platform formerly of we X,XXX the for a to processes, operating required billion delivering the states period, delivering and to states, this human select this well create we've market through time, primarily other this almost assimilation and XX scalable we ourselves procedures, in as on small regional X.X than in properly XXth developing X,XXX reporting significant one homebuilder exclusively as deployed businesses, country Over short stable to from homes the in support focused the and Over revenue. acquisition coast been future largest to resources these In order growth, and of size. and homebuilders. of integration systems, toward the financial of from

the pleased future. of to the the today and for about our our these future successfully excited business we with very look we're accomplished, As state prospects actions with

positioning. will strengthening in our believe over our achievements surpass of we've In years significant our substantial fact, competitive we next already business that given five past improving our and the made the accomplishments strides the meaningfully

market. through efforts within on organic Our going continue line each primary with top forward depth driving emphasis increasing will our a be expansion on to growth revenue

value the executing our strategic a to However, on on and help business variety deserves. and that initiatives equally achieve our further true financial are operational believe we focused results, designed improve we of

use with our of packs platform. the For example, across precut increased incorporating planned and library, made in we trusses, our year streamlining last value-engineering have panelization, the framing over significant along progress and

from national purchasing increased and We our and contracts benefit rebate of aspects and both number various and have efforts regional purchasing centralized of also agreements. the

toward internal other and times, benefits a Wade cycle company. further and track for throughout from which final business savings, as variance detailed these monitor beyond. enhanced reductions, aspects all accelerate realize to expect which of strategic we visibility of year given level us shortening of We at systems of the we we completed began end cost the our acquisition. improvements the Homes Jurney compare, to initiatives Our stages move XXXX and very into the drive to direct integration to tools we the year, have last are Last using

Homes Earlier the be to of capture differentiated great a we and and us Homes align our its home with product enabling the to of has of maximize overall to Wade brand, Jurney proven potential to announced value product. to better Wade buyers, Jurney segment. the truly potential today, affordable line, share Century additional showcase investment proposition a rebranding valuable this Complete

as under offer price or newly Century operate same targeted We brands. homes the Communities offerings, and christened its no-options it providing comparable Wade will as strategy. at land will did spec now only Jurney, the Century retaining Century Complete affordable points Complete The light,

is us consistent our the more the opportunity home us The as of priced new in marketing Century our remain value purpose company less committed with money and message demonstrate of branding to the to homes. Complete to message. updated lowest home clearly the position one offering market, instituting We better

the lowering ASP year. prior our We The in price delivered homes. homes $XXX,XXX progress dropped to of make average of the down $XXX,XXX, to substantial in from selling continue XXXX

the most price country. more we a entry-level mover lowest and were their builders transition shift while to more home have seen lately in and the some making competitive across this And focus first points, pricing we and deliver of

average to to housing, as millennials that be a their seeing groups the is factors is market we're today, affordable the U.S. report, a level, play note to are many first home across at and of baby to recent important segment driving research downsize. Across undersupplied. resale nation, continues this referred multiple looking demand the boomers shortage often to and there it's to According seeking demographic there it entry this While from

to the which households of afford the of in financing, Century market loan qualify once over capture to in loans. XX% for for In December, are increased segment. FHA a FHA majority of buy limits. is cannot Century FHA again share demonstrating further number homes country. home The the portfolio how of affordable expanded vast announced the well-positioned family eligible Increasing the home

to with than in our the of fourth less homebuyer monthly In average in execution, of business, fact, an trajectory, qualify a propel a less line an Truly to continue on renting. and equity further annual Complete payment and will improvements our for our than ASP quarter including $XXX,XXX, homebuilder than interest FHA purchase needs in a Century leverage. loan -- insurance. expensive a with $XX,XXX We strengthen income create less making growth home $XXX, and principal, with mortgage successful believe for return we

operating are demand healthy environment our and in of markets economies across housing We tremendous fundamentals. a supported potential, by strong

well one we our geographic footprint, as operational of deliver our positioning, national opportunity market widening in affordable of an we're America's Century expanding capitalize take deliver most markets. us share. to top our to advantage our on as of returns deepening outsized focused we on excited believe We're additional and to Complete we opportunities growth, penetration ahead turn, increased have accelerated performance, homebuilders, and We're existing scale shareholders. improved competitive line the platform, outsized of profitability, expanded as to our while and already And capture

markets discuss Rob Now, I'll in detail. our greater turn over it to to

Rob?

Rob Francescon

Thanks, Dale, afternoon, everyone. good and

in net As XX% experienced The across including momentum and up Dale board we mentioned, of has the that into sales the compared XXXX, we contracts in XX% record the new contracts quarter, year. XX%, closings. generated January the net to prior year-over-year continued quarter strong strong performance fourth with new improvements in in fourth

were point, of are months. projecting year-over-year due market improvement for same rate to the Given existing the January at XXXX sales that not depressed we conditions subsequent

our XX% of home in increase the successfully a our positive environment net and In we revenues. contracts since homes across each and regions. We sales balance quarter, overview were in recent results in and our home However, I'll that a deliveries. of demand achieved home ASP the sales the a consistent and for homebuilding achieved our across of January and perspective, about the prospects X% performance fourth With extremely the new XX% robust a our XX% trends brief by increase of are year. regions, provide Texas business current lowered increase

was is on fastest-growing Antonio while XXXX, large to In track named job and America's city, the sixth San Austin growth driven largest nation's by XXXX. become population by city

is nearly X.X Over projected for the Houston have people, the new next XX%. decade, of an any of of addition number approximately area, increase second-highest metro residents million to with the

these of growth to significant we in the strengthen to over an believe have of our a trends with reflecting XX% new product and We activity region. year, In confident positioning. accelerated share potential an example are Texas will region, XXXX, given mountain across continue capture is contracts, high-growth opportunity where positive our saw impressive significant we pace the up year net increased market

and to market. increased continues one are opportunity strong growth, Vegas growth our high us due healthy We metro organic to continue increases Colorado have most share take immigration Las market resale vibrant coupled a market is impress and population significant we markets. within to tight and we to this our we with market of demand and heightened stable, from seeing position. land-constrained believe benefit share Utah, as In price environment.

in our be growth, will region. this an by owned believe for lots to We the nearly mountain continue region controlled XX,XXX exciting and opportunity supported

the West. stabilize. pleased a We're positive region in turnaround to as Turning saw we market report to conditions this

the other fourth quarter home contracts, to compared of West net fact, prior up during regions all outperformed XX%, year. In new the terms the in

year. up We over quarter, XX% delivered homes in XXX fourth the year

seeing XXXX. and in demand We continue Washington momentum in are West to positive across to region and expect California the build

a also home up new in X% XXX home homes. solid southeast XX%, with performance net the in We contracts increase with deliveries to saw

in by economies. the the for prospects southeast confident are potential supported growth thriving across We local

growth as country. remains now and Charlotte interest Atlanta, now to XXXX new low fourth compared performance growing with population deliver market largest we low Jurney rates. quarter, remains December. the net Homes, job Wade or the solid sales it, in homebuyers for continue home for through contracts unemployment from increase rise the and expansion fastest XXth as up home city benefit The in results. the the city Complete continue was to Century strong XX% Nashville as have XXXX rebranded In fifth is to

fourth on the the results increased These completing process. in deliveries all quarter that move were XXX particularly XXX of to from homes, homes are and year. prior efforts the the integration internal impressive Home successfully given XX% focused

in and four the During markets operations already share new these we've begun each. with capture Iowa, in we in Indiana, Michigan, XXXX began deliveries new year, states: and to Ohio,

is as we additional brought ahead, to scale. efficiencies be believe Looking generated Century will Complete

that Internally, areas to into various geographic we regions. as we have local Complete segmented refer Century

on plans value-engineered geographic scaled, Given our Century homes. X,XXX the would business can closings X,XXX support approximate we Century across of an a with increasing the the various focused the the with large within aspects costs. centralized a and platform, offering land nature accomplished growth, expected region division supply current consisting lots. be are reduced a standardized built of start-up further beyond Complete region and annual exceeding When of expansion To

to standards and controlled of prior lots. since the lots finished we typically are portfolio of to business, We XX used Century underwriting the become the to our it of similar take the desirable lots some grown are the by the land substantially We've XX% returns XX,XXX expect to otherwise with our except year from that national the improve the Complete that only of improved footprint existed total would inventory up of purchase the at XXXX. end those Thus, homebuilder, for lots, nation's ROIs Our balance lots. successfully to expanding lot the we year, markets. not Century robust ended into impacted time Top a in increased across percentage compared most XX,XXX XX%, and increased

growth, areas flourishing metro We job expansion and in are economies. experiencing population operating which are

to the presence of well-positioned As communities pipeline positions we've local new us which extensive business, future deepen in increased new we're solid enable lot applied share with grown and established ample will and knowledge markets. demand. a fuel both Today, our capture we've our to and

we ahead, we each homebuilding our on execute strategic as encouraged Looking to the environment increased performance our initiatives remain of regions. drive by across current

provide will outlook. I our will Dave results financial detail and now the turn on who call over to greater

Dave Messenger

Thanks, Rob.

an sales increased XX%, home This compared deliveries record mainly record to deliveries increase in During the or in quarter a XX.X record income increased XXXX, million, million regions. than the net improvement were more XX% the Home million, increase XXX.X saw XXX% we by revenues share. fourth diluted per a driven of fourth was our to for quarter $X.XX revenues prior-year our X,XXX, as of across all in a to quarter. home a XXX.X

quarter, an of the quarter percentage of fourth which compared price quarter basis gross XX.X% price XX.X% for XXX,XXX the delivered Adjusted for with points. XX to share the increased prior-year to in capture the is selling increased our quarter of homes to in to decreased XX.X% from Homebuilding this XXXX third gross quarter and consistent the points level XXX,XXX, entry of at quarter from XX%, up the homebuilding plan third fourth increasing average prior-year XX.X%, to in compared margin and sequentially, The year. prior-year compared to XX.X%, in homebuyers margin quarter. the to

an increase able Given we we our the markets, that rate margin over and demand year sequentially. to backlog were drive gross experienced both increased our still and in outsized conversion year

our improved At on handful $X has with gross our a our end, the of approximately prior XX.X% with of fourth quarter, we margin to in as homebuilding year of percent expect profile homes across portfolio. quarter. Consistent fourth-quarter and and X,XXX deliver plans, in of XX.X% SG&A communities in impairments in revenues quarter. to in these recorded that's third the homes we of million to deliveries, couple a we in quarters. consistent next Additionally, fourth year, backlog our leverage made the a our year-long XX.X% the SG&A compared the solid improving progress

percent With SG&A full-year XXXX our and of XX.X%. our fourth-quarter percent XX.X%, SG&A of

all Looking increased ahead, expect acquisitions. the due benefit to of to integration reductions and and efficiencies from prior additional our completed we scale expenditure

Jurney a $X.X million adversely nine generated financial million XX onetime reinstatement home XX million the were of previously of over consisting $X of of our mentioned consulting service revenues, and and and title, fourth L impacted a impairment, intangible approximately the insurance energy-efficient million inventory half asset write-off related $X by total business, Wade primarily results consisting various quarter million due XXXX, year to Homes half to million to fourth-quarter up XX% a credits. Our $X.X items, name, fees onetime In mortgage a the settlements, related of of tax in the of year. and insurance

increase of contributed X.X XX% The prior-year quarter, pre-tax million in a compared and in the margin million a XX%. business income, to approximately reflecting X.X stable

to turning sheet Now, balance liquidity. our and

As XX, December expanded record XXXX, to stockholders' of our equity a X.X billion.

$XXX to April maturity and place we of our of line During million successfully put the the quarter, in extended XXXX, credit a accordion.

the debt to million net XXX-basis In our point accordion. we million XXX We reduced million quarter, our ratio unsecured in improved XXX-basis the revolver, to of the liquidity our to and total consisting dramatically increased under sequential the long-term improvement and since availability million XX.X%, additional point beginning to improvement. homebuilding a and deb fourth an XX.X year homebuilding $XXX.X of our total cash XXX.X on capital of excluding capacity net

transactions year-end. indicated leverage We transaction anticipated QX. certain third-quarter our due prior occurred occur land stated call, homebuilding closings our have might to to QX for previously Due reduce and in to to slated commitment land XXXX until not delays, our below typical on that XX%,

basis, QX land debt On have XX.X%. been had in as the capital would planned, the ratio forma our been would a minimal less impact have occurred to still transactions net originally than and pro

the During our as our deleveraging of inquiry $XX reverse program announced, opportunistically to we previously issued million efforts. we result ATM quarter, as a accelerate approximately a through

been M&A, ATM utilize have we organic couple years, the past able the de-lever. to program fund Over external of to and effectively growth

and sheet, focused with growing organic balance look goal improving we strengthening a ROE. to business, growth As be we'll forward our of primarily increasing leverage our on

to XX.X% our the was in the source rely the fourth efficient quarter, initiatives. prior same recent the credits. by X.X%, on extension to these of tax funding year due to a less rate the congress expect we compared quarter of Accordingly, In as ATM for home energy

We are fourth-quarter our full-year pleased with and extremely results. XXXX

Rob and and healthy have outlooks As XXXX. markets both our for have are Dale discussed, strong

in X,XXX home deliveries positive guidance the $X.X current of be we in to Accordingly, of momentum revenues XXXX billion. to are range X,XXX $X and with to sales our environment, the be our to homes, and range of introducing demand billion the

years consistent the line With questions. our Operator? I'll prior the be our first for number closings quarter generating with quarter, the that, quarterly most. with the lowest and expect fourth trends of We to open

Operator

instructions] question. from [Operator Morgan. Rehaut, question Please with first Our is proceed JP your Michael

Michael Rehaut

Hi. the congrats Good morning, on everyone, results. and

around business, kind core Historically, of kind growth I've question focused years, know, and add First would you be that of but know, been and on I outlined kind to you the XX%, in had closings. XXXX amount. of the of, was the an thought expectations whatever for the around closings fiscal has I've of in guys or growth over terms particular, the growth, the to as of then, top and maybe talked the you always in grow goal additional acquisitions core revenue the

of certain aggressively of to if -- there Any you to closings roughly You above-trend X that the line. thoughts higher markets bit walk kind the maybe you midpoint. continue growth above robust know, Complete, it's If that outlook? you there at through be to that expect at could trend more that of slightly a kind are growth the, what What's driving kind demonstrated you're helpful. know, looking with more XX%, would if Century guidance little so up an

Dale Francescon

and this is Dale. Mike,

so our markets part of is performing. they're at how and at I look it year, started positioned look think quickly how and we are we demand the this has where

range. year, just think up we the we're look we within the end somewhere forward to for that As that of going entirety

In board how terms performing. across terms they're of they're in of really particular markets, the if

here prospects And about positive you and we're know, our we particular. as in homebuilding today, really so, in sit general

Michael Rehaut

second, a ask if I before that on it's follow-up a Just possible.

the low at a similar the average closings is growth, Obviously, grow be rate Complete pretty had business mix terms fair would decent the that in the Given price of last the business? over and guys revenue to to the couple on to assume legacy closings Century it similar Century that years. a you shift have high-end growth of

Dale Francescon

at as we Complete come growth rate Century a Community Well, look to it's out. you look that it, get going we at the But on hard it, that the higher brand would know, to than product. would is exactly we on side, we mix Century how project as anticipate the

Michael Rehaut

I guess -- just Okay.

Dale Francescon

said, I all all points, that price I strength at we're being really But virtually, seeing as and say, mean, markets.

Michael Rehaut

side. clarification margin margin consistent couple gross persist to backlog a guess just the Dave, next you'd your how you mentioned in comment about heard fourth a expect the of on gross was should inventory we interest that impairments? over Right. that, I maybe the quarter, the that right, upcoming lastly, Is I on year? if of with think results. you quarters for the amortization And terms pre-interest that and in

Dave Messenger

throughout two Handling in basis, two at and GAAP comments, XX%. adjusted the down of leverage our your a sold, making in then, percent, the the probably on And of quarter, of seeing numbers, say, that a first. of you're I balance if part looking margin be we're fourth interest terms running should for year. right And second our now brought half what you and was percent given it relatively we half that backlog. was about a terms in especially amortization an I'd the goods flat through cost good XX.X% about see

QX at year, homes those backlog we through pipeline pretty of We our ought margins. in be next we expect with And where similar would XX/XX. numbers to look seeing of come those as as consistent QX, are the

Operator

Maguire, is Our Zelman your with proceed next from Associates. and Please question. Thomas question

Thomas Maguire

around. all on great Congrats way the everyone. Hey, quarter a

I prevented back, some come different rather, – piece and the a force. integration overhead nice you know before just alluded was touched thinking start the in remarks, see little a things prepared to were of have business, in there and that that it really that On bit. on issues full you the through it And to exciting, to leverage

or think now? show or items year XXXX of with of moving And is moving where it improvement cost increases aware just can full talk then, you into outsized base speed is forward, new on cost as But to about meaningfully we about all is any right of ahead there be higher, would continuing the overhead that to into drive the kind leverage? that

Dale Francescon

us. it's terms in the I mean, of integration, behind XXX% So

we in to those the we've believe get to don't look can forward are We the incurred, really and integration XXXX, we of have in going back then, half no outside year. incur any the see we already done. And of any costs for work haven't that into cost create acquisitions continue that we we as that do and come really efficiencies more cost to and as XXXX, or to particularly, into we down

Dave Messenger

Yeah. One thing I that. add would with

acquisitions Now percentage the have XXXX we integrated. all our and that basis was our years. lowest prior XXXX SG&A an gone, in has annual last come on four

see XXXX, Dale look and scale into range. drive this. said, some to efficiencies really into opportunity expect mid XXXX an we SG&A out high and we've drive would XX% As as our I to got to of be

Thomas Maguire

in you you the Got about then results two then, some the but and moving into more can, had that better thinking is dynamics that and Is just it higher driving splitting what's that that and less? drove about side, just more just the that sense. rate selling quarter just if that's XXXX? a you eventually? maybe the off And that mix similar it. at talked gross environment of Or and makes there of ballparking all on out, in on gradual scale impacting higher kind talk strong cautioned wore it pieces than improvement those about can anything on you That the margin

Dale Francescon

we'll that as I initiatives Yeah. year, is I fact of earlier, some look they're very coupled all we is It mix costs That, that was to with no function starting a strategic we're -- as see well. of of into the said benefits No, to from at markets, expand and that last XXXX. performing we started our continue unusual. the that mean, the really direct there really

the hold in but some we accomplishing that is. anything than today, forward, And don't so, as that margin in QX we we incentives will more currently sales sales obviously, see of our those from where really had being back gross go we're it had --

Operator

question. from is proceed Center. question Please your Our Alex with Barron, Research Housing

Alex Barron

thank you. Jurney Wade there on job quarter question a the had about, the Great and to Yeah, year, name? Complete. changing Century fundamentally guess, transition gentlemen. I from the anything Is the I besides

Dale Francescon

same change strictly same the the better it a approach. It's business the name entirety to Century It's business, No. business. align with the of

we made So, to that thought it make change. just sense

Alex Barron

you shopping prices So, guys be really still centers, entry from to going specs, selling building are etc.? level, affordable

Dale Francescon

Absolutely.

Rob Francescon

business It's the same model.

Dale Francescon

the same. all It's

Alex Barron

And I know you depth guys have launched to of markets into several plan new markets or a to over at this the greater last gain continue the point, XX months. just Is there in expand existing kind in markets? to

Rob Francescon

So, said, a that in foremost, in there's that markets. opportunity do greater markets multiple are, that Alex, really first tremendous existing our to think want we With the gain to and we depth being that. we

into not we're some people, markets that structured, in the up though to it's strategic we're are a centralization. area, a our expand cost-effective Complete started, scenario the the our looking with way side, way start on homebuilder with typical they're that very just that Secondly, a on it's at, Century especially And plans, with our to there get so have would thing, their infancy. nice you

gain efficient to we we much existing first do more that just want foremost, markets. within and It to continue like less that, makes our aspect. to expensive it But so share and

Dale Francescon

only is with brand. Just the clarity, for are we targeting in Alex, Century to Complete we're the that, that geographic follow-up -- expansion

Alex Barron

Correct.

type or Is terms what for you buy guys there of land? product is do current of engage at situation opportunities that in kind land this of to have finished time? in development Now, deals, the to

Rob Francescon

We're outside the though, lots we're are are that. said, put opportunities do that still buying finished sheet, situations We're our good lots, light where standpoint will approach, sometimes and an only But the we us. land on for finished purchasing our to finding finished lots. there balance from XXX% With still ground developer lots. still,

Alex Barron

to Okay, and thanks. of great. luck you, Well, best

Operator

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

Jay McCanless

Hey, my for good afternoon. taking questions. Thanks

-- higher of you little it roughly in in question had, XX% Wade expect of a XXXX first or the was Jurney closings Do XXXX? so that closings. I range to The bit all be

Dave Messenger

some think to that would see probably that XXXX. I in factor you're increase going by

a that said, quicker Century the do, we to As grow opportunity we've bit business. little business an than got we

so, being could growth all And of over that increase course of markets, we're XX% XXXX. out our of while expecting percentage the

Jay McCanless

this And Dave, rate should we use what then year? just, for tax

Dave Messenger

About credits. XX%, would energy be of that inclusive tax

Jay McCanless

apologize I growth about missed all I outside if Century this, count have for but your community you talked what are plans And of Complete? then

Dave Messenger

you hadn't as No, be didn't course on year-end. have community count XXXX. discussed opening miss end communities of of We docket, Currently, we the But the XX% throughout the X growth closing somewhere of variety forecasting we're it. to a and it. between and at

Jay McCanless

geographic that on community any And focus growth?

Dave Messenger

broad-based. No, I say it's

Jay McCanless

'XX what on what and then, so I comps just 'XX, can for XX% the and we congrats order were had, And the about -- 'XX? us give right be just XQ think number January. number wondering for February the one March growth last to the for I was if monthly could should you

Dave Messenger

the we quarter just No, other data up month typically, on we monthly call. haven't our to provide than any disclosed some following color a

full now. to right So providing in that unfortunately, be we're not going

Jay McCanless

Great you. Thank numbers.

Operator

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

Min Cho

evening. Hi, Alex. Min for good This is actually

I of wanted to talk little financial services So, your questions. a business. a bit couple about

If you it And capture just the regions being of could rate, if talk offered kind XXXX? in to of about your about of all bit you what a kind little to across get talk potentially it's now? expect

Dave Messenger

of Century have that year course we second as traditionally home to bit capture should worked business, the business has really into higher course rate rate Jurney XXXX. I Complete business. we that of capture system, it breakout of buyer and quarter Wade XXXX of our that our This that a from done third being than the does be the more of throughout capture able into sales our a or have Complete a perspective, business a to was during would more Dave. the say business division is Century which more and process expect And Century the we now that as our of not in

Min Cho

to to like Okay. you focused anything? you anything of Maybe expand offering now? financial add services what are on else opportunity? Could insurance, And kind to or business? expecting your sales that, anything add you're this just Or

Dave Messenger

title that we the premiums they services, sold, dealing a balance XXXX. on material -- over expect a we And renew portion to loss little and be very it business as off the them begin as insurance larger of small that of part Currently, being XXXX, that very insurance start small it people had the of we've a in a homes provided offer renewing to of to home becomes I mortgage ever offered, that Currently, a at truly do for of you're insurance started running But services in next years. owners' we business. given that don't expect bit several XXXX.

Min Cho

then, growth kind you going barrier XXXX, think just just end a into be you're with, can board and inflationary talk across labor in the bit I you could the At being of And to XXXX? very homebuilding strong. you orders know, the of Okay. do that mean, about year little a the seeing? costs

Dale Francescon

ebbs we're years item. the and inflationary several We're look just side, certainly, be you know, seeing seeing really When depending we on we a lot speaking, that particular line material flows, did not like But direct generally pressures. not cost there of can at ago. the

So to corrected have that seems itself.

both been is to side, And we've come as continue as In a terms labor. for-rent a up. out as recovery on of there enough and labor of homebuilding always ramped build isn't for-sale companies the labor, and there's of shortage

enough the we've size by been that within able with we our However, said, are, market. garner to being

So that and want our where them it we all of cycle times that. keeps

to robust impediment in an there market. us, been isn't hasn't labor the it So but

Dale Francescon

Thanks.

Operator

remarks. turn brief now over back will to some for closing line Dale We the

Dale Francescon

operator. you, Thank

As execute our in and to like to the and we where to confident be employees dedication. continued are look our initiatives we're beyond, for success. without for and deliver We our opportunities ahead excited passion XXXX wouldn't we work ability ahead your for results. strategic today hard are to thank their I'd

forward shareholders all our to for for valued continued speaking call, on we you again like thank look also today's We'd us and next of quarter. their and joining to with you thank support,

Operator

you thank your for lines you your conference, at today's This disconnect participation. concludes time, this may

Century Communities (CCS) 7 Feb 202019 Q4 Earnings call transcript