Century Communities Reports Second Quarter 2015 Results and Updates Full Year Guidance

Century Communities, Inc. (NYSE:CCS), a top-25 U.S. homebuilder of single-family homes, townhomes and flats in select markets, today announced financial results for its second quarter ending June 30, 2015.

Second Quarter 2015 Highlights Compared to Second Quarter 2014*

• Net income of $9.8 million, an increase of 84%
• Pre-tax income of $14.4 million, an increase of 79%
• Total revenue of $ 189.0 million, an increase of 137%
• Home deliveries increased 221% to 636 homes
• Homebuilding gross margin of $36.6 million, an increase of 91%
• Selling, General & Administrative (“SG&A”) as a percent of home sales revenues of 12.2%, an improvement of 243 basis points
• Adjusted EBITDA of $19.0 million, an increase of 87%
• Net new home contracts grew to 718 homes, an increase of 156%
• Homes in backlog expanded to 1,005 homes, an increase of 155%
• Average open communities increased 175% to 88
• Open communities at the end of the quarter increased 147% to 89
• Completed successful offering of an additional $60 million of its 6.875% senior notes due 2022
• In July 2015, entered into an amended 3 year, $200 million unsecured credit facility, with a $100 million accordion feature

“We are pleased with the strong momentum in our business during the second quarter in which we improved our earnings 53% per share,” stated Dale Francescon, Chairman and Co-Chief Executive Officer. “We executed against all of our core objectives in the second quarter and set records in home sales revenues, deliveries, contracts, backlog and net income. We achieved this growth while also maintaining our homebuilding gross margin percentage sequentially and further reducing our SG&A as a percent of home sales revenues compared to a year ago on our scalable platform. Into the second half of 2015, we are excited by our prospects to further grow our business, improve our profitability and meet expectations for full year 2015.”

“Our markets continue to exhibit positive fundamentals including rising employment and favorable population growth amid a limited supply of new homes which was evident as we ended the quarter with a record backlog of 1,005 homes,” said Rob Francescon, Co-Chief Executive Officer. “The integration of our recent acquisitions are largely complete and we are now better positioned to further expand our footprint into additional attractive markets with improving economies. We enter the second half of 2015 with a solid balance sheet to support our strategic capital deployment efforts into value-enhancing opportunities as we look to increase returns for shareholders.”

Second Quarter 2015 Results*

Net income for the second quarter 2015 was $9.8 million, or $0.46 per share, compared to $5.3 million, or $0.30 per share, in the prior year quarter. The improvement in net income was primarily attributable to an increase in home sales revenues generated by a higher number of home deliveries and an improvement in SG&A as a percent of home sales revenue.

Home sales revenues for the second quarter 2015 was $186.8 million, compared to $77.3 million in the prior year quarter. The growth in home sales revenues was primarily due to home deliveries increasing 221% to 636 homes compared to 198 in the prior year quarter. The average selling price of homes delivered was $293,722, up sequentially from $284,751 and compared to $390,545 in the prior year quarter, largely due to a shift in regional and product mix from new communities and acquisitions.

Home sales gross margin percentage in the second quarter 2015 was 19.6%, compared to 24.7% in the prior year quarter. Adjusted homebuilding gross margin percentage, excluding purchase price accounting and interest in cost of homes sales revenues, was stable sequentially at 21.3% compared to 26.5% in the prior year quarter, mainly attributable to regional and product mix. SG&A as a percent of home sales revenues was 12.2% compared to 14.6% in the prior year quarter, primarily as a result of higher home sales revenues, which more than offset an increase in personnel costs and additional investments to support a higher number of communities.

Net new home contracts in the second quarter 2015 increased to 718 homes, an increase of 156% compared to 281 homes in the prior year quarter, largely attributable to a higher number of average open communities. At the end of the second quarter 2015, the Company had 1,005 homes in backlog, representing $348.0 million of backlog dollar value, compared to 394 homes, representing $167.8 million of backlog dollar value in the prior year quarter.

*Financial and operating results as of and for the three and six months ended June 30, 2014 include the results of operations from our acquisition of Las Vegas Land Holdings, LLC, from the date of acquisition, April 1, 2014. Financial and operating results as of and for the three and six months ended June 30, 2014 do not include the results of operations from our acquisitions of Grand View Builders and Peachtree Communities Group Inc., which were acquired in August 2014 and November 2014, respectively. Subsequent to the acquisitions, Las Vegas Land Holdings, LLC, Grand View Builders, and Peachtree Communities Group Inc., comprise our Nevada, Houston, and Atlanta operating segments.

Balance Sheet and Liquidity

In April 2015, the Company successfully completed an offering of an additional $60 million of its 6.875% senior notes due 2022. The senior notes were additional notes issued under the indenture pursuant to which the Company’s existing outstanding $200 million aggregate principal amount of 6.875% senior notes due 2022 were issued. The new and existing senior notes totaling $260 million have identical terms and are treated as a single class under the indenture. The proceeds of the offerings were used to repay amounts outstanding under the line of credit.

As of June 30, 2015, the Company had total assets of $781.1 million, including cash and cash equivalents totaling $32.6 million, and inventories of $661.7 million. Liabilities totaled $398.0 million, which included $304.5 million of long-term debt. At June 30, 2015, the Company’s ratio of net debt to net capital was 41.5%.

As of June 30, 2015, the Company had $80.0 million of availability on its unsecured $120 million credit facility and an undrawn $80 million accordion. In July 2015, the Company successfully amended and increased its unsecured credit facility to $200 million with a $100 million accordion feature.

Full Year 2015 Outlook

Dave Messenger, Chief Financial Officer, commented, “Given our positive results in the first half of 2015, we are increasing our full year 2015 guidance. Based on our current market outlook, for the full year 2015 we expect our home deliveries to be in the range of 2,200 to 2,600 homes and our home sales revenues to be in the range of $700 million to $800 million, excluding the impact of any future acquisitions. At the end of the full year 2015, we continue to expect our active selling community count to be in the range of 80-90 communities.”

Conference Call

The Company will host a webcast and conference call on Thursday, August 6, 2015 at 5:00 p.m. Eastern time, 3:00 p.m. Mountain time, to review the Company’s second quarter 2015 results, discuss recent events and conduct a question-and-answer period. To participate in the call, please dial 877-705-6003 (domestic) or 201-493-6725 (international). The live webcast will be available at www.centurycommunities.com in the Investors section. A replay of the conference call will be available through September 6, 2015, by dialing 877-870-5176 (domestic) or 858-384-5517 (international) and entering the pass code 13614388.

About Century Communities

Founded in 2002, Colorado-based Century Communities is a builder of single-family homes, townhomes and flats in select major metropolitan markets in Colorado, Texas, Nevada, and Georgia. The Company offers a wide variety of product lines and is engaged in all aspects of homebuilding, including the acquisition, entitlement and development of land and the construction, marketing and sale of homes. Century Communities is a top-25 U.S. homebuilder based on homes delivered. To learn more about Century Communities please visit www.centurycommunities.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and, as such, may involve known and unknown risks, uncertainties and assumptions. Forward-looking statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “estimate,” “plan,” “outlook,” and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on historical information available at the time the statements are made and are based on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s Annual Report on Form 10-K for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.

Financial and operating results as of and for the three and six months ended June 30, 2014 include the results of operations from our acquisition of Las Vegas Land Holdings, LLC, from the date of acquisition, April 1, 2014. Financial and operating results as of and for the three and six months ended June 30, 2014 do not include the results of operations from our acquisitions of Grand View Builders and Peachtree Communities Group Inc., which were acquired in August 2014 and November 2014, respectively. Subsequent to the acquisitions, Las Vegas Land Holdings, LLC, Grand View Builders, and Peachtree Communities Group Inc., comprise our Nevada, Houston, and Atlanta operating segments.

Home Deliveries

Backlog

Lot Inventory

NM – Not meaningful.

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