CCS - Earnings call transcript Q4 2020 | Century Communities, Inc.

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Operator

Greetings, and welcome to the Century Communities Fourth Quarter and Full Year 2020 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’d now like to turn the conference over to your host, Hunter Wells, Vice President, Investor Relations.

Hunter Wells

afternoon. Good joining fourth Century ended quarter XXXX. for call earnings December today the for and us you Communities for conference XX, Thank full year

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

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

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

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

Dale Francescon

the demonstrate in a increase. in achieved home revenues, contracts, and and deliveries, the new XX% a to increase our nearly billion delivery active These report Hunter an reflecting geographically consistent XX,XXX again diverse home milestones, deliveries our sales growth, generated power XX% year of to ability XX% XX% $X.X homes of double-digit a and homes. $XXX quarter, XXXX, as housing increasing to country's X,XXX markets. deliver revenue XX% We're million, fourth our X,XXX footprint our achieve across increase, to home increase pleased the revenues record most including business you, new by good everyone. appeal results of model consecutive XXth the company In we net Thank while total we profitability, multiple a afternoon, that of record and we

also to of quarter, the contracts X,XXX record During we a XX% increased homes. net our fourth quarter by new

XXXX and accelerated Our the beginning increasing momentum end XXXX. for of sales demand, December, contracts XXXX pace net January increasing of through of ongoing only not XX% the into resiliency reflecting and with but our XX%, into sales the new

X,XXX our in home value backlog made growing with significant We the year progress nearly of a also sold with ending $X.X billion.

respectively we fourth the expansion also Net profitability than significant both and XX% achieving pre-tax to full the periods. our More highest quarter for importantly, income more and $XX increased XX% quarter million. drove and twice year million $XXX for year year and and prior income the

in million. $XXX the company a reflected continued EBITDA in flows fourth cash increase Our to as increase XX% an record to by quarter

X,XXX improvement quarter. third and a basis home compared year basis XX.X%, net net end also the building of last in quarter sequential the to ratio the at debt, to Our improved from XX.X% capital down fourth points XXX XX.X% points

competitive primarily XXX we year to third margin going into positioning only sales thrive XX.X% successfully environment, reliance points to to footprint on platform in improvement expansion, our also become sequentially across position last XX%, from we've XXX and down We We've due expect continued the primarily expanded home in as improvement leverage percentage and across quarter. through and in XXXX, achieved advance, public was In to building the home the one a but quarter builders home SG&A the while margin in well. basis efficiencies diversified home price margin from appreciation as to improved XX declined to of organization. and realize as reduced see XXXX, XX.X%, country. of basis synergize fourth gross lowest points percent cycles of incentives. Century the points transforming of well our current This leverage the housing Since to invested better further as our largest our operational future deeply not basis gross increased our a our markets, a and as sequential we acquisitions adjusted SG&A history. in

the two of improving resulted in the In in to last increased on further achievement. completing acquisitions, XXXX, actions and our provide course next our on capitalize into over the opportunities and business our generating scale the us we reducing to arise. organization this integration efficiencies have manage sheet to our and liquidity all our national years, our on aspects order maximum from early prudent asset can past years, that focus and accelerating took with upon of turns few increasing strengthen improve We platform as by growing balance believe they the of equity. we visibility Over expenditures, flexibility returns

growth before and scope, accelerate ever expanded to expand than situated better scale profitability. and are We generate our

factor time, the The and pandemic full already multiple and record be a solid of drivers where up January, trends rates tailwinds echoed year were believe Recently, mortgage rates, bankers industry play. is that compared mortgage at and a similar At conviction. reiterated the a low demand picking felt hit Before to these have last staying and X.XX% low interest year, U.S. housing the maintain Reserve there was are were real XX-year We power. to pace. association effects ago. X.XX% primary continues demand its Federal expectation recently the even of rates. In to low considerable

at Century's The majority months months estimated average price of the U.S. across decreased months. housing supply of by supply from the average Additionally, of points. well XX% to national the approximately the an fourth, This on quarter intensify the to X.X reflecting X.X shortage continues all below there markets. exists of average third trend and a across severe

terms the population the entering is In provide a of incrementally home of of price help to group downsizing An economy. gains millennials increasing the grow either recent key dollars their homes, U.S. taking to that additional decade. of next boomers over also of expected represents retirement, buying are advantage demographics, number and both in appreciation, or grow home which refinancing baby overall investible

spur demand, we’re tailwinds, supported emboldened home the ahead will propel but not appreciation. expanded price XXXX, help Looking which only by incremental to housing

credit the to XX% portfolio, for recently markets home We will new strategy with buyers, floor Century helping increased and up to strongly our within the rates, across move believe Century's of home we by We and prices while Complete. approximately limits fourth expand raise accelerated qualifying all ceiling growth attract their category deliveries savings and mortgage price our XXXX loans. and continue increase nearly time and X%, our quarter maintaining buyers drive us The entire support improved positioned first pool potential loan for are buyer of low throughout to personal FHA allow for FHA product buyers. attractive, of affordability our into profiles increased affordable Across January.

Over solidly to greater even the propel success. Century a to past several years, foundation we have strong built

our prices to creating at deliver is Our shareholder long-term while high-quality value. customers beautiful affordable homes goal

all growing employee of robust and national to position of home Our nearly one presence company, Fortune's our named footprint, in We as fastest outperforming systems markets base our ones. existing competitively XXX and future one grow talented well peers. America's us trusted recently of most as were builders

as philosophy. the think team to over For in I'll detail. our now and turn as our call honor, to this employees success, Rob customer-first our share well our we that of our passion our discuss drive, business exceptional more X,XXX

Rob Francescon

Dale, you, afternoon, and Thank everyone. good

our future strength to in considerable deeply Given have pipeline expectations, penetrating our growth markets. devoted to expanding market energy and more we conditions and the land local support

and future expect our our share. to markets, focused growing from are on We heavily market local growth we significant existing come

ending executing XX,XXX holdings As on the quarter the part owned growth year-over-year land alone, operating In controlled nearly nearly with and our year fourth added grew X,XXX of we we lots. by plan, XX% keeping this XX% land-light to of over end owned to compared of closings. and versus of lots mix improved our controlled XXXX. controlled the lots net at In X,XXX home XX% lots our strategy, with

potential a was top excited to to Communities XXXX. lot high into only provide third a Century high. there's deal sites, in Century's Communities as continue in Carolina market, and and our the had where not land state We still delivering begin price homes extension the South appreciation acquisition our growth. Communities ground Complete X,XXX Phoenix Century plan and we land Metro Near-term, for that enter communities brand efficiently and fully offerings Complete In legacy to will and the over brand both with bigger a our our our U.S. Phoenix. Last of brands. XXXX, quarter Georgia, lots in strategy to we presence Texas, home all organic brands inbound both our two-brand Area be underwriting more This to under expect have XX Carolina, our Phoenix Arizona month, which across enables we Previously, time assumptions. can to consisting strategy as in our presence. the Phoenix diversifies multiple brand. Because include a fifth home North addition We're do city new Metro a disciplined Century presence where further be Area have the into Century announced home this at for of be in will large dedicated attractive to Century plan within Century a and brand. now buy demand break market, single expansion

capital already opportunities Across in immediate we additional growth adding to markets. expansion a expertise, brand can we the see access given scale opportunities second footprint, and with for and place turn quickly. Additionally, our to within by more further our have land invested we organic personnel existing local our help have rapidly market

the delays. to of in our faster, fourth what typically spec. over building process The efficient We homes. experiencing of In and built-on prone strategy demand built-to-order in spec is homes, the particularly such our more deliveries the flow between timeframe today. environment, high total margin entry this XX% construction buyers. aspect pricing segment closing is several our a building we’re preference obtain move-in were for Typically, our ready as advantages representing Another of see house to less operating quarter deliveries better and shortened, materially concentration even level with we two in more due a appropriately approach. and also total attractive have be us sale our to the And delivery potential. entry allowing XX% the we Across trade approximately level can maximize high brands, can priced

less to at view this Additionally, homes we at as $XXX,XXX. the past delivering of over Even price we buyers sell on delivered a months, sold with XX% the lower move-up further this homes home an to market, of opportunity the business. points were than our XX and expand within X,XXX particular those many focus

number points. further price Given home we millennial buyers, expect the increasing and other drive demand this new trend all to at of

buying year, witnessed customer this past but and we more from implement further begin to web embraced simplify recently only redesign with the of Not the functionality to to world. XX% has the launched new website continued opportunities their year, now meaningful this new virtual of potential home did A our many traffic Century’s the improve home online our improve buying. all the prior trend, We of team prospective as our home evaluate and increased Over better an to the a site, to new total have home key of our their compared online keeping In journey smartphone. move component experience buyers experience mobile as a this was opportunity purchase for to highlight process. buyers. a we’ve to demonstrate tools

under friendly friendly in to home site or mobile domain, to search brands minutes in digital tools allowing United new in secure a two click get a alone, We made will also our in States. We’ve capabilities, to brand button. mobile buyers Our investments XXXX believe ongoing for one for pre-qualified throughout brings either the applications, prime locations online be easier our buy simplified and experience it with and and into a a more beyond. home our of now reflected online success

operating business Our investments strong strategy, is compelling and that performance evidence history working. strategic our are initiatives efficiency model, profitable of and consistent

now Dave year, strengthen drive conditions market business, the spring further long-term and into more expect remain we our positioning enabling the turn and ahead, favorable results growth season to grow will of in Looking to competitive financial the over call increase selling throughout our I to turn the returns to for detail. discuss and us balance shareholders. in our our

David Messenger

Rob. you, Thank

Fourth $XX.X diluted $XXX.X by quarter record to Complete We to net the quarter, $XXX.X XX% $XXX.X the for was share During would increase XX% income $X.XX quarter at similar on to $X.X on the a year. improvement quarter with across million share the a pre-tax diluted to we lots XXX% or million. homes XX% deliveries year XX% million with prior a built lot. and XXX% all also to Home of million million, $XXX.X and to increase per the compared history. Century in improved of company’s our other billion. X,XXX homes. In $XX.X pre-tax the our would in an the earnings backlog year contracts brand, homes be fourth currently be witnessing. million to quarter. broad-based within record Total to highest demonstrating $XXX.X increased $X.XX fourth homes, compared record are year-end compared income income XX% increased per $X.XX million the in a event XXXX to brand, and revenues in of outside past, substantial $X.XX the XX% homes some for In while communities, to income a within revenues $XXX.X were quarter increase prior of net valued and quarter. X,XXX increased while fourth year in legacy built the divisions number in million full year Mountain sales of increased outpacing rising with communities scattered our to fourth our revenues divisions fourth million a net X,XXX an to quarter a Full prior propelled our of region increased This up new XX% $XXX the record record to

and has function more and majority reliance on a in the our traditional brand entered of in homes its scattered community. clustered new increasingly matured, the which as land pods pipeline, markets lots However, reduced significantly together, expanded we’ve or subdivisions like build traditional

demand, this of This our As brand. which we aggressively provide was brand. the XXX as opened of number Century decrease quarter, acquisition was selling to was quarter, communities a well community land from us our the down Complete in development worked Complete a community Century for prior pause such of the experiencing consequence count that XXX total time at part community more This beginning expected In the period we’ll through communities the for count second and XXXX, an on we year. as we the communities XXX the uncertainty accelerated in meet time. were as were of of beginning given

communities open on Our land year our our team has of the building been pipeline to of plan focused and coming a variety markets. across intently all

the high XX% XX% a sequential as year in prior XXXX the Looking percentage in quarter points ahead, to third we margin potentially last as margin home On XXX building quarter. same gross gross end building was basis, to XX.X% community margin expect home increasing of XX%. with compared count basis period total Adjusted third improved adjusted the previous to the compared from improved percentage Homebuilding XX.X% XXXX. and year for XX.X% gross quarter.

cost We increases. price result order labor to reducing and of expect as increasing on to and reliance a offset see material to our year-over-year continue incentives in improvement divisions

as newly in year. fact, and our income compared business has In month we into to million to business contributed year. fourth million and million the company. homes the of a fourth of of in in improved the $X.X basis in a services $XX.X of result XXXX, continued sales last quarter to of improve the to was $XX.X quarter, prior fourth prior this the operating beginning of XX quarter. efforts the leverage a percent XX.X% each year pre-tax throughout SG&A costs which improvement The in XXXX. trend, the This contain experienced past to of home January generated XX.X% continued our revenues, the sold margin year, compared in points in on incremental In $XX.X million quarter June compared of year, balance revenues in financial our

being approximately were quarter market. and year fourth of the years credit very with fourth the housing quarter million strength our quarter home includes benefited of reinstatement In for $XXX energy credit $X.X third by our unsecured the health liquidity XXXX from the XXXX, to availability strengthen Our trends a and spread and loan to pleased encouraged sheet increase cash at of quarter net was continued from total the increased significantly to of resulted with interest fourth tax to primarily in ratio debt origination, larger prior our our results originations We retroactive cash fourth of fourth compared $XXX improved remaining of year rate financial XX.X% year XX.X% slightly a environment The up both and and XXXX, well-positioned down of our in to in across X.X% believe of rate our XX% the results benefit homebuilding full loan resulted in on and strategic same prior We our tax which were all in of from revolving and and in from of increase growth businesses efficient rate took the the business price XXXX, XXXX, full strong the low Century’s in billion, balance homebuilding we and net the an loan rate quarter points. are due our capture action sold. XX.X% capital platform. the number undrawn under homebuilding XXXX. our XXXX. our demand seen flows In and the improvement and of million In for We quarter, the the quarter. services facility.

combination of a With to coupled demand recent our and our tailwinds proven us gives ability the confident. with favorable execute performance,

as guidance positive of forward range in exceptional shareholders. line will performance, to be open to $X.X look billion our $X.X returns year strengthen We home sales the Operator? XX,XXX range Accordingly, the continue. of Our deliver and momentum outsized billion. to that, deliveries delivering questions. are I'll introducing With business, growth we revenues XXXX be to to we and will our homes of the another in of our for accelerate scale organization, XX,XXX

Operator

JPMorgan. Michael Thank question you. is ahead. Please Instructions] of First go [Operator Rehaut from

Michael Rehaut

and everyone afternoon, very results, Good Thanks. all congrats encouraging. on the very,

around sales pace to said order First, I now orders, demand, almost but clarify you're December that, wanted in I up just XX%, in growth XX%. you here think saying January up

I and just growth are sure improved sales month? as So to to that make wanted correctly those to but you're sequentially understood indeed deployed we and during those also that that pace referring order also well actual an that

Dale Francescon

Mike, the That was we it, on heard Yes, pace When numbers it's the did correctly. we the just sales year-over-year addition see improvement. back Dale. year-over-year looked we – we in to improvement. you incremental And really the the at get experience that didn't That beginning going. the either. very to at And slowdown didn't of of it oftentimes is the We see pretty while a takes year. the year, typical. end

So continued – holidays after through we they just the completely New just on sold the we and Year.

Michael Rehaut

past into improve about your your a every of And the first shift margins over you second to hoping great quarters I believe in bit continued improvement hear. six over in were XXXX backlog, months, XXXX. mentioned margins I wanted But Also and That’s had the kind gross how tremendous month about year. little expecting seeing obviously, step results of to the in fourth should margins of think change, function you get believe bit that a because the a backlog. we the quarter, I in Great. a David talked gross of was little to sense

it it bar or into first of quarters? So hold head the the something to we is How that in on XXXX? for you this as about should XX% of think kind company, can kind new the second we directionally

Dale Francescon

of it industry. a hold an about XX% GAAP increase much to as as been as adjusted that that in XX% on in basis, we've able with the margins, we as we'll our the lot QX onto a factors basis we a ASP dealing at can on being to But portfolio. I We're in look think – that a cost across been that the for QX, that QX XX% to as pushing on be should think margins, our also GAAP basis, XX.X% reading do everybody's expected. definitely we've I range

Michael Rehaut

Great. Thanks very much.

Dale Francescon

Thank you.

Operator

is from Jack next go ahead. SIG. Micenko question The of Please

Jack Micenko

the of and right, afternoon. of talk look looks years does All for through growth community like that more potential forward the these then the be the count? demand how on pulled upfront; and Is year? It kind can I leverage it weighted work to good to next the some want continue a to you later talked based backend about as bit year. your with in you little you few one, you count cadence communities community going G&A sort

David Messenger

would I we as bit a pause to QX Dave. pretty year, more it’s just say look Jack, look Complete. in buying growth, we brought land backend it that last you QX. stop all at a Hey, at heavy Century be to count When going took and a is community weighted and our towards

this that we’ll back And so going later to acquisition part cycle, of the we on bring those under year. now control there, the have

such sales and dealing for just great communities our with passed On selling Century everyone else. like had we’ve land Communities we’ve been pace originally size, expected development, the down

We to bringing be more communities online. expect

the – of So, dip as year the weighted to continued doing G&A expect at think this years being better out look first would the at XXXX, a count I QX. progress the than each and the to every see last I you’d but we think And as continue seeing a the backend as G&A, bit in back year bring looking before community year probably improvements far over and in quarters we that make we line. would half each it year, of several QX of of we’ve

Jack Micenko

it to you legacy it to XX/XX lines XXXX be sort going versus by it of as the not on out the then Is you’re Okay, of of for going Or a see brands be is two replenishment as great. community. business some more the mix, well? And comparable breaking company?

David Messenger

to referring the community you Are count?

Jack Micenko

basically. Yes. Community mix Yes.

David Messenger

Yes.

Okay.

I think online bring continue saying depend to will expect on Century brand how on Communities Complete depending much we’ve it how and So, land been much sell how we through. to be Century brand development the we growing. our to we really goes, but

So, you’ll more be little Complete probably be a bit Century would Communities. Century you than weighted towards

Jack Micenko

Okay.

Just first – that you’ve on an there? sits how I’m of your and XQ, back subsidy moves of much qualified in these one more rates they’re if the higher everybody’s in XX%, test you Thanks. about buyer, what work XQ price curious me I if XXXX it, there’s are updraft, XX-year XX% affordability? from Have great, could, if I they time for could price, FHA, stress kind said point mind. a around any right done the think the but if pushing entry-level a just absorb context. I done you heard potentially of Things getting that, if buyers over

David Messenger

versus divisions of we at subsequent were I what it. Yes. would Century with a that doing different dealing our have Complete affordability we all in brand and for the for be a we buyers. our the in buyers. and say of ASP at can on definitely And cognizant our are the price is here loans looking what mind, office, we’re We credit especially, house that the on profile lower keep corporate

we tests against stress those. our and of homes ran we a price So, variety

Jack Micenko

Thank you. Okay.

Operator

Associates. from The Zelman go next Alan from & ahead. is Please question Ratner

Alan Ratner

your more I the great dig on assuming time, deals. on striking afternoon. year up it’s love Good not you’ve the XX% lots and last months. guys. land the would the underwriting, bit comment, roughly same quarter. to especially, about looking you first tied that made a question, great the on guess at comment your little appreciation congrats the pretty in At price a I’m Hey XX land of Yes. I over lot know fourth

what at today. going communities mixed example, there’s So, land margin And for it’s if XX% or think know, I be how when but compare on to dynamic tying gross online. some margin how you What’s deals do you’re to I’m gross returns, new and that as margin, the you think delivering today? underwriting up you’re about gross curious that clearly, does come these threshold, about you’re

Dale Francescon

at margin has looking profile it just-in-time versus basis, gross an lower risk timeframe. on margins. a risk we’re development additional would and finished buying depends lots the elongated take we’re that Alan, If but the we on similar of deal we particular right So, thresholds, land. a as where we’re looking that we at our we’re margin, other various than it, generally returns internal on margin not looking But have look only at at speaking lower we’re meet not anything gross a but now looking basis. at to a are

Alan Ratner

that’s And year, just I quarter ramped the want it level. because you clear, fourth the on obviously, specifically, for referring or are be tremendously to more honest?

Dale Francescon

pipeline. really Yes, Alan. coming the It depends on mix through on what’s

the be through generally example, then on lot finished the of more would pipeline, a was coming everything lower speaking, and same I’m of margin, a lots it amount. an kind on a consolidated, if saying as have So, coming through we if

Alan Ratner

it. Got

growth to started off. you been certainly, you’ve would’ve closing growth is some Okay, expecting you at thought anybody’s get might’ve tougher that admittedly, touch that’s helpful. comparisons. your running and think up rates where I where as especially, backlog the And guidance, it against January based then based don’t on but keep on been up a I the stronger on obviously, than

sales having is of production not a to to the you’re where communities? running point, slow tougher intentionally keep half getting the gap more of that on a are getting efficiently back function the and the So, machine maybe, you the or year, pace to in even comps out

David Messenger

Dave. is this Alan, – think I

those I’m with issues. of of the backlog conversion our rates, couple cycle a as it’s that a chain couple when look think next things combination elongated the of supply over at get dealing different I will some we’re compressed times quarters you expecting of

then going going that we of earlier. spoke think it’s be in I QX, and of when to I QX that’s and one to So, component matter some a about online communities like be bring those

much how much those a think, closings. I so can on – how of depend close we will And really we combination grow our can

Alan Ratner

it, And great. Dave, closing quarter give did first by chance? missed number Okay, a you guidance I any if

David Messenger

No, I didn’t.

Alan Ratner

chance range any with bit given just hand here? hold one, a the can you that your we’re on dealing that

David Messenger

taking at with that adjusted the year down, you conversion in here, prior we and industry look we’re think year about looking and cycle you’re bit. range. I as from is bring for a and supply in down a That’s to and probably and chain, accordingly going rate what point last years to backlog at my decent last seeing little started be a conversion that time coming longer

Alan Ratner

guys. Thanks Good luck. helpful. That’s Okay.

Operator

next Rygiel Riley FBR. of The ahead. question Alex Please B. is go

Alex Rygiel

a great you, and a year, Thank gentlemen. great quarter

David Messenger

Alex. Thanks,

Dale Francescon

Alex. Thanks,

Alex Rygiel

can to comments you into move-up potential expand your expand the color about that? some more around the markets, upon

Dale Francescon

Yes, no our business product in add, suggesting focus, move-up been to. see a entry-level but opportunity we’re of to I’m It’s we’re mix. continue our from to that we always way moving happy away to and component the

at we entry-level or said, been when we’ve XX% which on means focused As buyer, we’ve what it’s delivering, the look of about is XX% move-up. so

we we just adding concentration at look those our when business for on is And – so are some opportunities additional incremental look continue heavy to entry-level, but for, move-up us.

Alex Rygiel

that for to have have already started plant? – lot And do shift inventory you your you

Dale Francescon

not opportunistic. a And it’s we’re ever kinds to wouldn’t entry-level call to doing we’re so. of shift, more product those look it, we at no. I ourselves done nor and open really really opportunities have We it just limiting strictly

Alex Rygiel

coming category average drift and to we the percentage view maybe prices down Complete drift got think expecting were as higher selling Century so And there, average that start larger selling alter of to going over Should to years? of product prices are sort we total. maybe, the as that a

Dale Francescon

Yes, I expect that. wouldn’t

on we impacts happen reflection the complete. of and has that but really land started. until on entire quarter, on seeing Century sale you’re acquisition pause a what it it release think of business, Complete business, we the starts this for it example, took because is not for century do We house took I a the already really –

there. up ended we with gap So, a

And our We think so, down. a circumstances. would just still come matter – of that’s I really average ASP that a expect more will

Alex Rygiel

One question. last

sheet. been have of of the the the on always in has room One leverage the balance elephants carried sort we

your What’s XX%, sheet? down operating of – new range for sort You can below balance that. leverage work your on on that normal congratulations

David Messenger

now, somewhere in think in plans that strides north cash XX that got we see sheet to right continue the in that today, that I XXXX the sheet. this very of that growth cash operate And flow from range up XX.X. fund to revolver, to balance expansion north XX; been think our and now, able and free from balance got we’re make we’re some on and demonstrating we’ve bringing you’ll the at significant undrawn to us and have we’ve ability in I we’ve of

tick leverage, so to around as and we’ll up fund our business. continue we And just

Alex Rygiel

great. you. Thank That’s

Operator

Alex go The Barron next Research question from from Housing is Center. ahead. Please

Alex Barron

guys. Hey, Thanks great and job.

David Messenger

Alex. Hi,

Dale Francescon

Hi. Thanks, Alex.

Alex Barron

new Complete into expanding heard with the have any curious or I’m in brand. I I sorry, Complete other markets? say expansion Phoenix guys you century whether you’re was plans brand So, Century you Century century new into the that the brand. regular either

Dale Francescon

the brand for legacy we’ve talked a in like century to Florida. brand, the that get Well, so year or we’d

markets we’re five now, in future substantially, brands that have we Florida hoping the quite with talked, and natural, we growing. and of Complete is as part be right north were new would the Florida. so paired up And Century throughout Florida penetration a in both

addition. a have go to so nice brand Florida into the be would And legacy

so And be at. the kind I be would one think that we'd first looking of

Alex Barron

is to at this any is, I wanted you it, just getting your anything great. business your I point? try capacity And sound guys but as Okay. mean, as to to or taking business doesn't the down doing the you many come slow are it orders try like at to slow that would down limitations sounds people way? ask, what I cause I'm to intentionally to are also you there it guess production

Dale Francescon

we've that been so trade manage but to production for like production home try has terms hindrance. we've price on an them we a our put other one either builders able don't been do, the even It neither that in all create and no, challenges we to inventory so – the we metered because and expectations far intentionally gaps not on or (XX:XX:XX) our basis, down. partners. pace, most out got we of of But, flow really We've have is basis, really

Alex Barron

guys starting possible per to quarter? And a homes month it many know how be Okay. would or are roughly you

Dale Francescon

month the under homes around back just in a by XX/XX. of somewhere it, speck half looking more from backlog this time got XXX,XXX that between we're at looked XXX,XXX I’ve I to As month. it numbers, doing XXXX, But right varies believe we're and range, doing, in now, did anywhere we've we that year construction than at last

production board good build we're bring longer, are it while feel sales to about continuing we So but on bit homes. to continued we've our and a may capabilities what little take

Alex Barron

success Thanks. Okay, your year. forward great. this Look to

Operator

Jay The next Please of ahead. question from Wedbush. is go McCanless

Jay McCanless

Yes, the Great Hey, this versus good what rate cancellation was year? year quarter it last afternoon. everyone.

Dale Francescon

offline. after I'll to get I'll call. that that to the you get you

Jay McCanless

pretty thanks. last I lights lights and balanced, them on Okay, well the the you it in increase focus we The focus saw among pretty that regions. quarter, was was quarter, product pretty any was in there geographic third evenly And this dispersed quarter. like it acquired or guess, significant then, or

Dale Francescon

pointed the balanced. evenly end out, of you end And but obviously, product, for type fairly of and XXXX level, even. was entry-level year-over-year XXXX, but on product primarily, was evenly it of to was It grew as each entry lots balanced, it the region

Jay McCanless

Okay.

of mix coming what XXXX? back to that probably what’s split the ASP the in to move like between closer and XXXX we to end the start the on or so felt going of something end is difference XXXX, maybe XXXX And of

Dale Francescon

Jay, the as Yes. of. There's in aware appreciation price everybody's too, been markets,

be come think numbers I in and going though. quarter a entry-level, that fourth and, ASP again, where mark so, the might don't the be XXXX down terms predominantly And of at seeing back high it's to

Jay McCanless

it. Got

my taking questions. Okay. Thanks for

Dale Francescon

Jay. Thanks,

Operator

session. comments. end to would to reached closing for back turn I And Francescon over call of like question-and-answer the We’ve now Dale the the

Dale Francescon

Thank operator. you,

team compelling dedication of of strength the entire We Our thank as it as employees without have to couldn't year. to evidence our to continued like business impressive challenges our performance done and We is and Century. past unprecedented of would our every their each power of model, the the one of for the well our overcome ability you.

While we what have lies much to be proud of, we're even for more ahead. excited

vision. We are growth next and success time and investment your remain your for continued speaking in our on of opportunity we achieve long-term look into today, ability support our future, appreciate forward Thank with to confident looking and a again build our to you and quarter. XXXX sense to entering great you the

Operator

This concludes today’s conference.

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

Century Communities (CCS) 5 Feb 212020 Q4 Earnings call transcript