Q4 2021 Century Communities Inc Earnings Call
Greetings and welcome to the century communities fourth quarter and full year 2021 earnings conference call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note.
This conference call is being recorded I will now turn the conference over to Hunter Wells, Vice President of Investor Relations for century communities. Thank you you may begin.
Good afternoon. Thank you for joining us today for century communities earnings conference call for the fourth quarter and full year ended December 31st 2021.
Before the call begins I would like to remind everyone that certain statements made in the course of this call are not based on historical information and May constitute forward looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those.
Scribes or implied in the forward looking statements certain of these risks and uncertainties can be found under the heading risk factors in the company's most recently filed 2021 and to be filed in 2020 . One annual report on Form 10-K as supplemented by our other SEC filings our SEC filings are available.
Alible at Www Dot SEC Gov, and on our website at Www Dot century communities dotcom.
The company undertakes no duty to update any forward looking statements that are made during this call. Additionally, certain non-GAAP financial measures will be discussed on this conference call. The company's presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP management.
We'll be available after the call should you have any questions that did not get answered.
Hosting the call today are Dell friends, Duskin, Chairman and co Chief Executive Officer, Rob Franciscan President and co Chief Executive Officer, and David Messenger, Chief Financial Officer.
Following today's prepared remarks, we will open the line for questions with that I will turn the call over to Dale.
Thank you Hunter and good afternoon, everyone.
Our record fourth quarter results helped propel century to the most successful year in our history as we continued to experience strong consumer demand for affordable new homes across our entire 17 state footprint.
We delivered 2915 homes, the most homes, we've ever delivered within a quarter, culminating in a record 10805 closings for the year generating over $4 $2 billion in total revenues a 33% increase.
The fourth quarter was not only century strongest quarter in terms of closings, but we also achieved a number of additional milestones and quarterly records, including $1.2 billion in homebuilding revenues, an increase of 23% and.
And home sales gross margin of 25, 9% our highest since going public.
We accomplished this while concurrently improving our SG&A leverage to nine 3% the lowest in company history in the fourth quarter in a row of single digit SG&A ratio.
Helping to drive our eighth sequential quarter, our pre tax margin improvement, which expanded 530 basis points to 17, 6%.
Fourth quarter net income increased 80% to a record $165 million or $4.78 in earnings per diluted share our highest quarterly net income and EPS.
Net new contracts increased to a fourth quarter record 2007 hundred homes with our sales pace accelerating each month through the end of the year, reflecting not only the resiliency. We are experiencing in terms of demand, but also our ongoing sales momentum into 2022.
The most significant constraint on are achievable sales pace remains the number of homes, we have available for purchase.
This strong demand environment is further evidenced by the significant progress made in growing our backlog ending.
Ending the year with 4651 sold homes valued at $1.9 billion increases of 35% and 45% respectively.
Our 2021 homebuilding revenues also grew by 34% to $4 billion and was achieved in parallel with record gross margin expansion of 580 basis points to 24, 2%.
And a 160 basis point improvement in SG&A leverage to a record nine 7% fueling century communities most profitable year ever.
Throughout 2021, we were able to increase our gross margin percentage in each successive quarter, resulting in 142% year over year increase in net income to $499 million or $14.47 in earnings per diluted share.
And driving return on equity to 33%.
Our 11th quarter of sequential improvement.
<unk> 2021 also represented our 19th consecutive year of profitability.
Housing demographics and buyer demand remains strong and we are well positioned to benefit from the ongoing shortage of both new and resale homes available for purchase.
In the fourth quarter across our more than 40 markets. The estimated months of supply decreased to an average of approximately one month.
Well below the current national average of 2.4 months.
This constrained supply of available homes is occurring at a time when millions of millennials the largest generational group in the country.
Our reaching the prime age for new household formation.
Driving demand and further exacerbating the shortage.
By 2025, it is expected that an additional $6 4 million new households will be formed as millennials continue to age into their home buying years.
To better position century, and the appeal of our homes to this digitally focused generation, we recently announced the expanded capability of our industry first buy online experience, which allows homebuyers to not only reserve, but fully complete our new home sales contract.
Over the Internet.
While this program has been in place for several years within the century complete brand. It is now available for all century homes sold across our expansive national footprint.
The streamline processes easily completed providing the convenience of online shopping and enabling buyers to purchase a home anytime 365 days a year.
Program significant potential was recently demonstrated when the buy online platform was used to purchase a home on Thanksgiving day.
One of the few days a year our sales offices are closed.
Our record results for the fourth quarter and full year reflect the power of our business model the.
The strong foundation, we have built and our ability to overcome the impact of higher input costs.
Supply chain disruptions and a tight labor market.
In 2021, we bolstered cash flows as reflected by a 103% increase in EBITDA to a company record $718 million and improved our net homebuilding debt to net capital ratio to 26, 3%.
All while significantly growing the investment in our business and initiating a quarterly cash dividend to reward our shareholders.
Stockholders equity also increased 38% to $1 $8 billion strengthening our balance sheet and providing us with maximum flexibility to manage our organization and capitalize on opportunities as they arise.
The incredibly talented teams across our business have done a fantastic job of navigating the construction challenges the industry is experiencing.
It is their hard work dedication and commitment that enabled us to deliver on our objectives for the year.
And they remained sharply focused on the continued execution of our strategy to drive organic growth and increase our presence in existing markets as well as future ones.
This year, we'll celebrate the 20 year anniversary of our founding.
As we enter this market.
Stone year, we're looking forward to capitalizing on the tremendous growth opportunities ahead of us.
I'll now turn the call over to Rob to discuss our business in more detail.
Thank you Dale and good afternoon, everyone.
Our proven history of consistent performance is compelling evidence that our operating strategy strategic investments and efficiency initiatives are working well.
We intend to continue growing the business as we strengthen our competitive positioning and further execute against our key initiatives.
In the fourth quarter, we continue to raise prices across all of centuries markets as we did throughout the year.
Even with this price appreciation, 75% of our 2021 home deliveries were priced below FHA limits, demonstrating our strong positioning within the affordable new home category.
In December the FHA announced they would increase their loan limits across 99% of U S counties, which will help support continued affordability for our first time and move up homebuyers in 2022.
The new FHA loan limits went into effect on January one and increased by approximately 18% basically equivalent to the rise in home prices that occurred over the past year.
Yeah.
Our typical buyer continues to have a healthy financial profile with average FICO scores of 746, and seven and 14 based on loans originated in the fourth quarter, respectively for century communities and century complete homebuyers.
In recent weeks interest rates have risen to the current 30 year fixed rate of approximately 3.75%.
If interest rates were to rise an additional 50 basis points from today's rate.
Would only increase the monthly mortgage payment by $61 for a century complete homebuyer and $117 for a century communities homebuyer further illustrating the impressive affordability of our homes.
Given the robust outlook for housing demographics and in support of our future growth expectations. We've continued to expand our land pipeline to barn deeply penetrate our local markets.
As part of executing on this growth plan, we have grown our total lot count to nearly 80000 lots.
While our mix of controlled lots versus owned will vary from quarter to quarter with approximately 60%. Currently controlled we are committed to a land light acquisition strategy as we focus on increasing our home production to meet the continued broad based demand we are experiencing.
Looking ahead, we expect significant future growth to come primarily from deeper penetration in our existing markets as well as organic expansion.
We made good progress on our growth initiatives in 2021 , including the geographical expansion of our presence into a number of new areas to further diversify our offerings in attractive high potential markets.
Both our century communities and century complete brands entered Dallas Fort worth in Texas, as well as Jacksonville in Florida.
Century, complete entered Louisville, Kentucky, a brand new market for us and homes are already under construction and available for purchase.
Additionally, our century communities brand joined our century complete brand and delivering homes last year within the Phoenix Metro area, a top 10 U S city for inbound growth.
We now have a dual brand presence across six states, including Arizona, Texas, Florida, Georgia, North Carolina, and South Carolina positioning us to benefit from more efficient land acquisition and development in the years ahead.
While century has not been immune to the recent industry wide supply chain challenges, we found being a builder of primarily spec homes, coupled with our national footprint and purchasing capabilities has helped us navigate these obstacles.
In the fourth quarter, 92% of our home deliveries were spec builds.
Unlike build to order with speck builds materials can be ordered well in advance of current lead times, helping secure availability and insulate us from future fluctuations in cost and supply.
We are focused on ordering our materials, often and early keeping in frequent communication with our national suppliers and local trade partners to inform them of our current projected production volume and ensure they have sufficient materials on hand to service our markets.
In certain instances many of our suppliers also upgraded or substitute materials for us at no additional cost in order to mitigate delays that we would have otherwise experienced.
We've also reduced and optimized the number of skus in our homes, enabling us to prioritize materials, such as windows appliances, and paint and order these materials in bulk.
Our business model also allows us to lock in our cost before pricing and releasing at home for sale.
Given recent conversations with our local and national supplier partners, we anticipate material and labor shortages to continue throughout 2022 but remain confident we will be able to continue to solve for issues as they arise to keep production movie.
We're continually impressed by our team's ability to creatively solve for these challenges and we thank them for their dedication resilience and resourcefulness.
As we celebrate our 20th anniversary this year our mission remains unchanged.
To provide a home for every dream by delivering beautiful high quality homes to our customers at affordable price points.
We intend to continue driving our business forward to ongoing success and build an even more formidable and impressive century communities in the months and years ahead.
I'll now turn the call over to Dave to discuss our financial results in more detail.
Thank you Rob during the fourth quarter of 2021, net income increased 80% to a record $165 million or $4.78 per diluted share compared to $91 8 million and $2 72.
Higher year quarter.
Full year net income increased 142% to 498, and a half million with earnings per diluted share rising to $14 47.
Compared with $206 2 million and $6.13 in the prior year.
Fourth quarter pre tax income was $212 $2 million, an increase of 75% and a quarterly record while pre tax income for the full year increased 137% to 641.1 billion also the highest in the company's history.
Home sales revenues for the fourth quarter grew to $1 $2 billion, an increase of 22% compared to $946 8 million in the prior year quarter.
This improvement in revenues was propelled by an increase in deliveries of 2915 homes compared to 2000, and 826 homes, along with an 18% increase in average sales price to $395000.
Full year home sales revenues increased 33% to $4 billion compared to 3 billion last year, driven by a 14% increase in home deliveries to a company record 10805 homes.
In the fourth quarter.
Net new contracts across our divisions increased to 2007 hundred contracts a fourth quarter record propelled by a 31% increase in net new contracts for our century complete brand.
For the full year net new home contracts increased 11% to a record of 12017 contracts.
We also improved our year end backlog of 35% to 4651 homes valued at $1.9 billion, a 45% increase.
And in the fourth quarter.
Adjusted homebuilding gross margin percentage was 27, 3% compared to 23% in the prior year quarter.
Homebuilding gross margin percentage improved to 25, 9% compared to 28% for the same period last year.
This is the sixth quarter of sequential gross margin improvement for.
For the full year homebuilding gross margin percentage improved to 24, 2% compared to 18, 4%.
And adjusted Homebuilding gross margin percentage improved 510 basis points to 25, 9%.
Looking at our backlog margins, we anticipate continued year over year margin improvement in the first half of the year.
SG&A as a percent of home sales revenue improved 80 basis points to nine 3% in the fourth quarter compared to 10, 1% in the prior year.
The result of our ongoing efforts to manage costs instituted efficiencies and improve operating leverage for.
For the full year SG&A as a percent of home sales revenues was nine 7% compared to 11, 3% in 2020 or an improvement of 160 basis points.
We ended 2021 with 202 selling communities up from 198 communities in the prior year and a 9% sequential increase compared to 186 communities at the end of the third quarter.
Yeah.
Our financial services business continues to perform according to our expectations.
In the fourth quarter of 2021 financial services generated $31 2 million in revenues compared to $35 8 million in the fourth quarter of 2020.
The business contributed $12 7 million in pre tax income compared to $17 8 million in the prior year quarter.
The decrease in pretax income compared to the prior year period was primarily a result of selling loans into the secondary markets at normalized margins this year compared to 2020.
In 2021, we captured 76% of the business compared to 64% last year while.
While the number of loans funded increased by approximately 27% on a year over year basis.
This improvement in capture rate and loan funding resulted in a 20% full year increase in revenues to $123 7 million and $51 $2 million in pre tax income.
In 2021, our continued commitment to a strengthened balance sheet resulted in a 38% increase in our stockholders equity to $1 $8 billion and an improvement of our net homebuilding debt to net capital ratio of 26, 3% down from 27, 2% in the prior year.
Quarter.
We ended the year with a strong financial position, including $1 $2 billion in total liquidity $369 million in cash and no borrowings outstanding on our 800 million dollar unsecured revolving credit facility that does not mature until April of 2026.
Okay.
In the fourth quarter, our tax rate was 22, 3% compared to 24, 2% last year.
As of the end of the year the federal energy tax credits have expired and we expect our 2022 effective tax rate to be approximately 25%.
We're pleased with our strong performance in the fourth quarter and full year 2021, which has resulted us in resulted in us achieving an ROE of 33% a new record for the company and our 11th sequential quarter of improvement.
Now turning to 2022.
We remain encouraged by the underlying strength of our business and health of the housing market and are confident of a positive that our positive momentum will continue.
We expect this year to be another year of success for century with sequential acceleration in sales and community openings as the year progresses.
Based on our current development pipeline and schedules, we anticipate increasing our community count by 20% to 25% during the year and ending 2022 with between $240 and 250 selling communities.
Most of these new communities will be opening in the third and fourth quarters and sales should track comparably.
Q1 sales will be our lowest of the year approximating the fourth quarter of 'twenty, one and will grow sequentially from there.
As a result of opening many new communities throughout the year, we expect to be making SG&A investments in these communities that will be offset by volumes and our year end SG&A percentage should be a tick down from our 2021 levels.
Additionally for 2022, we expect deliveries in the range of 11500 to 12500 homes.
And home sales revenues to be in the range of $4 3 billion to $4 $9 billion.
122 appears to be another year for significant milestones and record results, including more topline growth and expanded profitability as we drive continued value creation for our shareholders.
With that I'll open the lineup for questions operator.
Thank you at this time, we'll be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May Press Star two if you would like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star.
King.
Additionally, we ask that you limit yourselves to one question and one follow up per person one moment. Please poll for questions.
Our first question is from Michael Rehaut of J P. Morgan. Please proceed with your question.
Hi, This is Maggie on for Mike.
First question on how you're thinking about gross margins into 2022.
Leave if I heard you correctly, you mentioned that you expect continued year on year improvement during the first half of the year, but can you talk about how you're thinking about the sequential performance of those margins, particularly as it relates to the kind of the moving pieces there.
Recent volatility in lumber and pricing actions and whatnot.
Hey, Maggie this is Dave Yeah, as we look at our backlog right now and kind of had a little bit of visibility into our Q1 and Q2 margins I'd say, there probably would be roughly consistent with our Q3 and Q4 barges. So in that 25, 5% to 26% range.
It should be you know some pretty significant year over year improvement, but obviously getting into the back half of this year, we'll be watching commodity pricing at our own in house pricing I will be happy to provide more color on that as we get further in the year.
Got it thank you and Oh second question.
Just on that.
Orders for the quarter.
I think last quarter, you had guided today down maybe 10% and obviously you came in up five so not much better than that and I know that you called out that sales pace accelerated through the quarter, but.
What changed kind of relative to expectations and can you talk about what you've seen in January and in terms of demand.
Sure Maggie this is dale.
And I think as we said in our prepared remarks, the the biggest impact on sales pace is really the number of available homes that we have for sale at any time.
The the demand was strong throughout the quarter. It was it's been strong.
Through January so it's really a matter of when we get starts out to a point that there there are fully priced and we're comfortable releasing them for sale. So as we look at that it's just really we've had a real emphasis on getting homes started and as we get those homes started they're selling.
So that's the reason that we saw the increase in the sales pace as the.
The quarter progressed.
Got it thank you.
Our next question is from Deepa Raghavan of Wells Fargo. Please proceed with your question.
Hi, good evening, everyone and thanks for taking my question.
Interesting step up in that community count growth.
Guide I thought last quarter, you were looking at high single digits.
Low double digits kind of a profile curious how did such a good potential come together.
I know you know within the short span was there.
Physicians involved you know how did you get it together organically in their supply chain and labor constrained environment.
Hey, David This is Dave Yeah, I know that there were no acquisitions in the quarter. All of this was organic growth, but you know as we've been seeing throughout the course of 2021 when everybody. When we started talking about community count growth in quarter in the second quarter to the third quarter, we saw things getting delayed delayed delayed and it really kind of bunching up in that fourth quarter.
And not knowing when we're gonna be able to pull the trigger on Grand openings, we got into the into October November December and we were able to get some of these you know pretty much really in November or December . Some of these communities opened at the very tail end of the year to get them through the mist municipalities get the Grand opening set and actually get them get them functional here at the very end of the year.
Okay, That's Oh, that's fair.
Supply chain Ah I mean, it looks like none of your builders onex or expecting any easing at all.
You know rest of 2022 but I bet should we at this point in time, just wipe out any improvements that we could probably see during the year or do you see some signs that it could still improve maybe at the margin.
And secondarily, if things do improve by summer or is any of the supply chain with ease.
And this benefit spec builders, such as yourself in 2022 or will it be only at 2023 story.
Well, you know I I'd love to say that I think that we're seeing an easing of the supply chain challenges, but it's nothing has really changed from a positive perspective and it's it's not like it's it's was one particular item that causes delays as I'm sure you can appreciate.
I mean, we watch our our cycle times pretty closely in terms of of what we're seeing change.
During the fourth quarter, we saw our cycle times expand by.
By another couple of weeks at this point our average cycle time is just under seven and a half months.
And you know that's that's up about two months from where we were at this time last year.
But as we look in the future I mean at some point it'll it'll start improving but we haven't we can't tell you when that is and we really haven't seen an inflection point anywhere near us.
Would you say labor issues have gotten worse worse are you.
I was I've been to the product side was worse or you think but they're equally worse.
Well I think it's it's really there.
In some markets that at one point in time, it may be labor in a different market. It may be a particular commodity or it may be a particularly material that we need. So it's just really across the board and so and as opposed to say well, it's all labor or it's all materials or its something it really is a car.
Nation of all the above and it kind of comes together in one market, we may be experiencing one thing and another market, we're experiencing a scarcity of something else.
Alright, that's fair, thanks, very much great quarter pass it on.
Thank you.
Our next question is from Alan Ratner of Zelman. Please proceed with your question.
Hey, guys. Good afternoon, congrats on a great quarter on year.
First question just on the order pace not to beat a dead horse here. So you know obviously came in well above what you you kind of signaled to us in October and are you on the flip side for <unk>, you're expecting flattish order trends.
Yeah, I understand there is a tough comp from a year ago. So I'm not necessarily focused on on that but you know historically first quarter spring selling season, you do see a pretty meaningful step up in order activity on a sequential basis. So.
It doesn't look like your community counts moving lower versus the fourth quarter. So why why shouldn't we expect some seasonal lift in a in order activity.
Hey, all of this is Dave I think you know kind of piggybacking on what Dale said.
Our sales right now are really dependent on the amount of homes that we're putting out there for sale and the inventory, we're making available from a community count perspective, you know we look at say, we look at the first quarter and I think that may end up being relatively flat.
With the number of communities, we're opening as well as closing out of and then you start to see that really ramp in quarters. Two through four are both from a sales perspective here in the first or in the first quarter of the year, saying it would be relatively flat compared to Q4, that's really a function of just the amount of inventory in starts we have in the ground that will be getting in the ground here.
Here over the next couple of months.
Got it on that note, Dave do you have the number of.
Most of your businesses stack, but do you have the number of spec homes that you currently have under construction and how that compares to a quarter ago and a year ago.
That's not something we've disclosed previously.
Okay.
Although maybe I can get a do over here on my follow up then.
[laughter] can you talk a little bit about build for rent and you know what activity if any in terms of sales you've you've had to build to rent our investors operators and what the outlook is for 'twenty two on that.
Yeah, Alan I mean, there's I don't think we're different than a lot of the other builders and we have relationships with a number of the large institutional investors and we'll sell off certain of our inventory to them.
Most of that is in our century complete business, although we do some at our century communities business as well but.
In terms of the number of sales that we do to investors. It's a small part of our overall business.
Single digits.
Soon.
Yes, yes.
Okay. Thanks, a lot guys.
Thanks.
Our next question is from Alex Rygiel Ith B Riley. Please proceed with your question.
Thank you and very nice quarter gentlemen.
Couple of quick questions here.
Backlog in the South east trended down year over year for the last couple of quarters can you expand upon that because it looks like the lockout is growing a lot. So we just having a little bit of a timing differential here with regards to when the southeast market kind of rebounds.
Yeah. That's what it is it's complete timing and we closed out of a lot of communities and we have a lot in the queue now that'll be opening up so it's strictly timing.
That is helpful.
And as it relates to the online buying system.
Any way to help us understand sort of what portion of your buyers are using it and how.
Integral to become to yourselves for instance.
Yeah.
Well on the century complete side virtually all of our homebuyers use it even if they're working with our sales counselor.
That is that is the way that we sell homes on century complete on century communities. We just migrated to that so it's a it's a small percentage of our sales today, but I expect that as we look forward you know every quarter and every year it'll continue to grow I mean, it's it's so convenient.
It's such an easy way to do it we've worked out the.
Bugs on the century complete side and now we offer the basically the same experience across the board.
Thank you.
Okay.
Our next question is from Alex Barron Housing Research Center. Please proceed with your question.
Hello, gentlemen, great job on the quarter and for the year.
I wanted to ask about the Texas region are it looks like the deliveries at a nice <unk>.
Increases this quarter, but they had been a bit depressed the previous quarters. So can you guys discuss a little bit about you know what what went on there what caused both of those things.
Now how is the outlook for this year.
Well, we like the Texas region, and we looked at that from a investment standpoint from a lot count standpoint from a closing standpoint, and we wanted to increase and enhance what we had within those markets of Texas. So this has been a strategy. We've deployed is you know it takes a little time for things.
So come to fruition, but thats why those numbers are up now we're continuing to do that on the land front by increasing our pipeline of lots there where we have on a year over year basis.
We're up at least 50% over 50% and we own and control about 13500 lots round numbers within the Texas region.
That's an area that we are definitely looking to grow upon.
Got it.
Just wanted to clarify the comment you made about orders are expecting them to be flat did you mean sequentially or did you mean year over year.
Sequentially.
Okay got it.
Thanks, and then another question was you know what.
I applaud your decision to start the the dividend, but just curious around your current thoughts around share buybacks.
Yeah, Yeah, I mean share buybacks are.
Always an option for us and it's something that we we have continued to monitor and as we evaluate whether we should evaluate and investing in our divisions and the organic growth of a century as a whole or if we should be buying back shares in the marketplace. Obviously to date, we have not done so but it's something that we'll continue to evaluate as we go.
Through 'twenty two.
Okay, Great I'll I'll give it to somebody else thinks.
Thank you thanks, Alex.
Our next question is from Jay Mccanless of Wedbush Securities. Please proceed with your question.
Good afternoon, everyone. Thanks for taking my question.
So one with century complete since you I'm, assuming you can see some of these orders and what people are selecting real time since rates have started moving up have you seen any type of trade down or people trying to take the smaller floor plan.
No since since since the recent move in rates Jay we we haven't seen any change in.
Demand or buyer behavior.
Uh huh.
Good to hear.
Okay.
I know, we've already talked about lumber and I'm, assuming with the seven months cycle time that will have to be thinking about maybe some higher lumber costs and the gross margin the back half of the year, but maybe could you comment on the other input costs shingles cement et cetera, what's your what youre seeing on the and the Pos trends for those goods.
They're all going up I think that right now you just see you're just seeing a supply chain in total the veto.
I so severe.
The bank costs are up plumbing drywall.
Dry walls up so is that just the scanning through my list here.
Most items on a year over year basis are are trending and trending upwards.
And it can be anywhere from 2% to 10%.
Okay.
But it sounds like.
You guys are comfortable that you're staying ahead of the price cost curve with the pricing you've been able to implement so far.
Yes, basically what we have in our backlog I would say, yes, and you know and that's really the beauty of our of our model in that we're not releasing homes for sale until we've got our cost locked in and that's part of why we like the the speck business model.
Yeah.
It sounds great. Thanks again.
Thanks.
We have reached the end of the question and answer session I will now turn the line back over to Dale Franciscan for some brief closing remarks.
Thank you operator, I'd like to take this opportunity once again, thank all of our team members for their incredible work and continued dedication to our valued homebuyers.
I'd also like to thank our investors for their time today. We appreciate your continued support and investment and look forward to speaking to you again next quarter.
This concludes today's conference you may disconnect. Your lines at this time. Thank you for your participation and have a great day.
Yeah.
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