Q2 2025 Century Communities Inc Earnings Call
Good afternoon, ladies and gentlemen, and welcome to the century communities Inc. Second quarter 2025 earnings conference call at this time. All lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, July?
3 2025.
Tyler Langton: I would now like to turn the conference over to Tyler Langton. Please go ahead.
Tyler Langton: Good afternoon.
Speaker Change: Thank you for joining us today for Century communities earnings conference. Call for the second quarter of 2025.
Speaker Change: Before the call begins, I would like to remind everyone that certain statements made. During this call May constitute for public space. These statements are based on Management's, current expectations, and our subject to a number of risks and the certainties that could cause a Revolt to differentially from those described or implied in the forward-looking statements.
Speaker Change: Certain of these risks and uncertainties can be found under the heading risk factors and the company's greatest 10K as supplemented by, our latest 10q and other SEC filings.
Speaker Change: We undertake no duty to update our forward-looking statements. Additionally for a non-gaap financial measures will be discussed on this conference call.
Speaker Change: 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.
Rob Francesc: Hosting the call today are sales Francesca executive chairman Rob francesc chief executive officer and president and Scott Dixon Chief Financial Officer.
Speaker Change: Following today's prepared remarks, we'll open up the line for questions with that. I'll turn the call over to Dale.
Speaker Change: Thank you, Tyler, and good afternoon everyone.
In the second quarter, we continued to execute well in a challenging environment, generating results that were in line with the expectations outlined during our first quarter conference, call back in April.
Speaker Change: Similar to the trends from the first quarter order activity for new. Homes has continued to be impacted by elevated. Mortgage rates.
Ford ability. Constraints economic uncertainty and lower consumer confidence.
Speaker Change: while we saw improvement in our order activity, as the second quarter progressed,
Speaker Change: buyers are still cautious and hesitant and as expected, our incentives increased in the second quarter, as we look to maintain an appropriate sales space.
Speaker Change: Despite the market headwinds, our deliveries at 2,587 homes, increase 13% on a sequential basis and exceeded our guidance of 2,300 to 2,500 homes as customers responded to incentives, enabling us to sell and close a greater number of homes within the quarter.
Speaker Change: Well, Spring selling, season was clearly muted compared to historical Trends. We continue to believe that there is underlying demand for affordable, new homes supported by solid demographic Trends and we were encouraged by several trends that we saw during the second quarter.
Speaker Change: Both our net orders and absorption rates increased on sequential basis in May, and June, while our cancellation rates remained in line with the levels, we have seen over the past several years and well below our preco averages in the 20% to 25% range.
Speaker Change: However, despite these positive Trends, our second quarter absorption were below seasonal, expectations, and given typical seasonality so far in July, our absorption rate is trending below. Second quarter, 2025 levels.
Speaker Change: Our Ending Community count increased to 327 communities at the end of the second quarter.
Speaker Change: A record for the company.
Speaker Change: While we have remained disciplined on the land, front and reassessed deals to make sure they pencil in the current environment.
Speaker Change: We also continue to expect our year end 2025 Community count to increase in the mid single digit percentage range on a year-over-year basis.
Speaker Change: Which will provide a strong base to execute from over the next couple years.
As we have stated in the past, we are not focused on growth for the sake of growth alone. And we looked at balance pace and price at the community level to optimize our returns.
Speaker Change: We are also taking a balanced approach towards Capital allocation
Speaker Change: We repurchase 48 million of our shares in the second quarter or approximately 3% of shares outstanding at the beginning of the quarter.
Speaker Change: Bringing our year-to-date total to 104 million.
Speaker Change: Or 5% of our shares outstanding at the beginning of the year.
Speaker Change: Additionally, since the start of 2024, we have repurchased over 8% of our shares outstanding.
Our book value per share, increased by 10% on a year-over-year. Basis to 86.39 a company record,
Rob Francesc: Before turning the call over to Rob, I wanted to highlight that century was recently recognized as 1 of the best companies to work for by US News and World Report.
Rob Francesc: It is our people that make Century communities, a great company. And I want to thank our team members for all they do to create a culture of excellence in support of our mission of providing our customers a home for every dream.
Rob Francesc: I'll now turn the call over to Rob to discuss our operations and land position in more detail.
Rob Francesc: Thank you, Dale. And good afternoon everyone.
Our second quarter, net new contracts, total 25,546, homes with both our orders and absorption rates. Increasing sequentially in May and June
Rob Francesc: Our Ending Community count increased to 327 communities. At the end of the second quarter, a record for the company.
Rob Francesc: I would like to point out that all of the net growth in our community count. This quarter came in June and especially in the back half of June with our April and May Community counts below. Our first quarter ending Community count of 318,
Rob Francesc: as a result, our orders in the second quarter, did not see a significant benefit from the growth in our quarter, end Community count.
We currently expect our year end 2025 Community count to increase in the mid single digit percentage range, which coupled with our 28% year-over-year growth for the full year. 2024 will provide a strong base for future growth in the years ahead.
Rob Francesc: We had continued success in controlling, our costs, in the second quarter.
Our direct construction costs on the homes. We delivered declined by 3% on a year-over-year basis and 2% sequentially.
Rob Francesc: As housing starts have slowed, our negotiating power has increased and we expect to see further cost reductions in the quarters ahead.
On the land side, our finished lot costs on the homes. We delivered in the second quarter were flat on a quarter over quarter basis.
Rob Francesc: Similar to the trend that we saw last quarter.
Rob Francesc: Going forward. We would expect to see some land inflation flow through on our deliveries, that will be partially offset by direct cost reductions
Rob Francesc: As expected given the competitive pressures. In the new Home Market are incentives on closed homes, increase to approximately 1,050 basis, points in the second quarter, 2025 up from roughly 900 basis points in the first quarter.
Rob Francesc: Looking forward, we continue to expect incentive levels to be the largest driver of changes to our gross margins in the near term. Given our success in managing our costs. We currently expect incentives to increase by up to another 100 basis points. In our third quarter closings
any impacts from immigration reform on our labor-based so far,
Rob Francesc: In the second quarter, we started 2485 homes and similar to the past several Quarters. At continued, our focus on maintaining an appropriate level of speech home Inventory. By generally matching, our starts with our sales.
Earning to land. We ended the second quarter with nearly 70,000 owned and controlled Lots.
Rob Francesc: Our own lot count has remained relatively steady since the third quarter of last year and we have remained disciplined on the land front and continued underwrite deals to current market assumptions.
Rob Francesc: During the quarter. We were also able to renegotiate a portion of our existing contracts for controlled. Lots securing better terms for the most part and lower prices in some cases.
Rob Francesc: Given our discipline, our controlled lot count, decreased by 12,000 lakhs sequentially as we exited deals that no longer about our criteria.
Rob Francesc: Which result in an approximately 2.6 million dollars of charges.
As we have said, in the past, we believe that our low-risk landlife business strategy that is primarily based on more traditional option, agreements with individual land owners and third-party land developers, allows us greater flexibility to renegotiate terms versus what could be achieved through an option strategy based on
Rob Francesc: Banking agreements.
While the industry as a whole is currently facing headwinds. We remain focused on growing our community. Count maintaining a solid balance sheet, being opportunistic, with our allocation of capital and building value. For our shareholders,
Rob Francesc: I'll now turn the call over to Scott to discuss our financial results in more detail.
Thank you rob in the second quarter pre-tax income, with 47 million and net income with 305 million or 1.14 cents per diluted share.
Adjusted. Net income was 42 million or $1.37 per delayed. Share for the quarter were 66 million in adjusted Eva of 76 million.
Rob Francesc: Home sales, revenues for the second quarter were 976 million up. 10% sequentially on higher deliveries.
Rob Francesc: Our deliveries of 25,587 homes in the second quarter, with essentially flat on the year-over-year basis with elevated, mortgage rates and economic uncertainty Weighing on order activities.
Rob Francesc: our second quarter average sales, price of 378,000 decreased by 3% on a year-over-year basis primarily due to higher levels of incentives,
Rob Francesc: For the third quarter 2025, we expect our deliveries to range from 2,300, to 2500 homes.
Rob Francesc: This estimate is based on our backlog heading into the quarter in anticipated seasonal absorption.
Rob Francesc: As a reminder, we usually see a sequential decrease in our absorption rates in the third quarter with July and August, typically representing, some of the slower months of the year.
Rob Francesc: At quarter end, our backlog of sold homes was 1,217 valued at 466 million with an average sales, price of 383,000.
In the second quarter adjusted homebuilding growth. Margin was 20% compared to 21.6% in the first quarter of this year. In homebuilding, growth margin excluding inventory impairments with 18.4% versus 19.9% in the first quarter.
Rob Francesc: The quarter over quarter. Differential was driven almost entirely by increased incentive levels.
Rob Francesc: Consistent with the first quarter purchase price accounting associated with our 2 Acquisitions. In 2024 reduced our second quarter, 2025 gross margin by 20 basis points.
Rob Francesc: We would expect purchase price accounting to have a similar impact on our home. Building growth margin in the third and fourth quarters of 2025.
Rob Francesc: We also took an inventory impairment charge of 7 million in the second quarter related to 5 communities that were in their closeout phase and located primarily in Florida.
Rob Francesc: for the third quarter, 2025,
Rob Francesc: We expect our home building growth margin to ease on a cyclical basis by up to a 100% points. Compared to our second quarter primarily due to higher levels of incentives.
Rob Francesc: Sgna is a percentage of home sales. Revenue was 13.2% in the second quarter.
Rob Francesc: New guidance, we expect our sgna as a percent of home sales. Revenue to be roughly 13% for the full year 2025 with sgna appearance of home sales, revenue of 14% for the third quarter.
Rob Francesc: revenues from Financial Services with 23.8 million, in the second quarter, and the business generated pre-tax income of 6.2 million
Rob Francesc: Our financial services results benefited from the sale of mortgage serving rights on loans with 3 billion of unpaid principal for approximately 47.3 million.
Rob Francesc: This transaction resulted in a gain of 4 million.
Rob Francesc: This game was partially offset, by Mark to Market adjustments related to our mortgage loans held for Investments. We currently anticipate that the contribution margin from Financial Services in the back, half of the year will most closely resemble our first quarter results.
Rob Francesc: Our tax rate was 26% in the second quarter 2025 we continue to expect our full year tax rate for 2025 to be in the range of 25% to 26% with the increase. Over a full year, 2024 tax rate of 24.1%, primarily driven by A reduced number of homes expected to qualify for 45 our credits.
Rob Francesc: Our second quarter, 2025, net homebuilding debt, to net, capital ratio equal to 31% and compared the first quarter 2025 levels of 30.1%.
Rob Francesc: Our home building debt to Capital ratio equaled, 33.3% in the second quarter and compared to first quarter 2025 levels of 32.4%.
Rob Francesc: During the quarter, we maintained our quarterly cash dividend of 29 cents per share and also repurchased 884,000 shares of our common stock for 48 million at an average share, price of $54.35. For a 37% discount, to our book value per share of 86.39, as of the end of the second quarter.
Rob Francesc: Through the first 6 months of the year. We have repurchased, 1.6 million shares for 5% of our shares outstanding at the beginning of the year.
Rob Francesc: We ended the quarter with 2.6 billion in stockholders equity and 858 million of liquidity.
We also have no senior debt maturities until June of 2027 providing us ample flexibility with our leverage management.
Rob Francesc: Turning the guidance due to current market conditions. We are revising our full year 2025 home delivery guidance to be in the range of 10,000 to 10,500 homes in home sales revenues to be in the range of 3.8 to 4 billion.
Rob Francesc: In closing, we are taking the necessary steps to address the Headlands facing the market including reducing our costs remaining disciplined on the land front and maintaining appropriate level of spec home Inventory, by matching, our starts with our sales.
Rob Francesc: Given where our shares have been trading. We have an opportunity to share repurchases while still positioning the company. Well, for future growth, that is supported by our lot pipeline Community, count and strong balance sheets.
With that, I'll open the lines for questions. Operator.
Rob Francesc: Thank you.
Rob Francesc: Ladies and gentlemen, we will now begin the question and answer session.
Should you have a question please? Press the star followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press the star followed by the 2. If you are using a speaker phone, please leave the handset before pressing any keys.
Rob Francesc: 1 moment, please for your first question. Your first question.
Rob Francesc: Comes.
Speaker Change: From Rockit.
Speaker Change: From Alex, Riel of Texas Capitol. Please go ahead.
Speaker Change: Hey, good evening gentlemen. Uh first question how are you thinking about your land investment? The second half of the Year versus the first half.
Speaker Change: We're changing the terms to push things out into 26. Uh and that's kind of our Focus right now but the big kind of purge if you will was in Q2
Speaker Change: In in Alex, this is Scott if I could, if I could, if I could just add them, I think, I think 1 of the benefits that we're seeing of our of our, maybe more traditional land, light strategy is just our ability to have flexibility within our runway on the lot side. Um, we were able to, to really move a significant number of lives are out or, or obtain, uh, better pricing, um, with really, really small.
Speaker Change: Impact from a feasibility cost perspective.
Speaker Change: Sure understood and then can you talk a little bit about the mortgage the mortgage products? Uh, your buyers are using? And are you seeing any buyers use any arms?
Speaker Change: Yeah, uh, great. Great question and and very topical at the moment. So we're, you know, we're running about, um, 70%, uh, on governmental 30% on conventional. Um, just generally speaking, uh, we we've really been leaning into the arms. Um, a really firm kind of a late q1 into Q2, and we're certainly seeing the buyer acceptance of that, uh, continue to pick up, um, sequentially as as the quarter in the year has gone on
Speaker Change: Very helpful. Thank you. Good luck.
Speaker Change: Thank you.
Your second question comes from Rohit. Seth of B Riley. Please go ahead.
Rohit Seth: Hey, thanks for taking my question. Um, just on the 2025, deliveries guidance. Maybe just talk to, um, you know, the drivers behind lowering it what you're seeing in July, you know, was the traffic affordability, just any color you can add there and in my follow-up would be on.
Rohit Seth: Just discuss kind of what you're seeing across your footprint.
Rohit Seth: Sure. Absolutely. And this, this is Scott Rohit. Um, so so from a guide perspective, uh, you know, we really step back and, and look at it and look where, um, you know, look where our backlog is at the moment going into the quarter. Uh, you know, knowing that the third quarter from a demand perspective is is generally 1 of the the the slowest periods of the Year especially at the beginning of the quarter from a July and August. Um, that was really a large driver um of of of of the uh revision that we did. Um was just looking at to the third quarter um from a market perspective.
Rohit Seth: You know, I can, I can hit a handful of things here. I think, you know, I think as you run through our our various regions, uh, you know, West for the most part I think it's held up, um, as strong as any of our markets. Uh, certainly we've seen a little bit of recent slowing, maybe in California, but but West in general, um, continues to be to be very strong. Uh, mountain is a little bit of the tale of of various different markets. Um, we see Vegas started out the year, very, very strong in this slowed slightly, but it's still a, um, a very strong market for us, uh, with maybe Colorado at the moment working through some affordability issues. Uh, moving on to Texas, uh, we have a very small footprint in Dallas. I think Dallas generally has been very challenged, um, but but Houston and San Antonio which are slightly larger positions from us are certainly working through some affordability items, um, and some uh, inventory Supply, but where we continue to move product um in our margins continue to be rather rather uh, consistent within Texas. And then I think our
Rohit Seth: Strongest Market. Overall really has been Southeast. Um, Atlanta is a large driver of our of our position in the Southeast, uh, as well as, uh, Charlotte in Nashville. Uh, and generally speaking I would say that those have have followed up the best of, of any of our markets. Um,
Rohit Seth: And then the last piece that that, uh, you know, an interesting Dynamic that they were really excited to see, um, is our, is our brand our Century complete brand, um, which which really attracts, um, you know, even a more affordable buyer type, um, and really attracts and doesn't compete necessarily directly with some of the larger publics in certain markets. It has really held up quite well. Uh, the Carolinas as well as the Midwest first century complete. Our ones that I would call out as being quite strong
Speaker Change: Okay, thank you. And if I could squeeze 1, 1 more in on the gross margin, uh, you kind of you. You hit by the 20th on the adjusted side.
Speaker Change: Raising uh, incentives a little bit here. And so, are there any offsets that we, we should think about. And you talked about lower costs, um, lower direct costs and labor costs coming in savings coming in, but you have some higher lands, just trying to get a sense of, you know, we touched the bottom here for, for, uh, for margins or you still got a little bit more pressure here.
Speaker Change: Obviously, um, a little bit difficult to specifically tell. I, I, I would say on the cost side. Um, we have been very successful in getting direct cost out um uh of our homes and we believe there's continued opportunity to do that. Um, we see that flowing through from a deliveries perspective. Certainly in the back half of the year, however, to some degree that is offset. Um, from really some normal inflation on the land side. So Apples to Apples, rather rather consistent on the cost side, and we continue to think that incentives as as they move through, the p&l will be the, the largest driver on the margin side.
Speaker Change: Understood, thank you.
Speaker Change: Absolutely.
Speaker Change: Your third question comes from Alan Ratner of delman Associates. Please go ahead. Hey guys, good afternoon. Thanks for all the detail and uh all the helpful guidance, it's appreciated. Um, for first question, you know, you alluded to this in a prior, uh, response to a question. But you know what you walked away from I think 12 thousand or so lots. But you did allude to renegotiations that are ongoing and even some price concessions from from Land Sellers. And I'm curious, you know, what type of magnitude are you seeing? There are you seeing real capitulation yet in the land market and, and if so, um, is there any ability to actually lower land costs on actively selling communities or are these more kind of go forward?
Speaker Change: Projects that are earlier in the due diligence more go forward. Yeah, it's more go forward and we're not seeing, um, really huge changes in pricing, more on structure of deals. Um, pushing out takes for a more just in time basis. But in terms of pricing, you know, there is some of that in select markets, but I would not say that's an overreaching item through all the markets. We have not seen uh, that across the board.
Speaker Change: Okay. Um, second question, you know, if I look at your margin guidance for third quarter, take uh, you know, roughly the the the the the down 100 basis points on gross margin and the 14% on sgna, I'm getting to a pre-tax margin, you know, in the low single digit range overall, which would would definitely be the lowest level we've seen in quite a while. And, you know, that's traditionally a level, I would imagine where, if that's a company average, there's, you know, a decent number of projects that are closer to break even. So do you have any, um, disclosure you give in terms of, I know some Builders give like an impairment watch list? You know, what percentage of communities are on on that watch list that have indicators of potential impairment?
Speaker Change: Yeah, and all of our, you know, all of the required disclosures including, including how we evaluate it, which is consistent with the industry will be in our in in our tin queue which is filed later today. Um, you know, 1 important item to note, is that, you know, the gross margin, um, item that we we called out is really X, the uh, impairment um, the 7 million dollar.
Speaker Change: Impairment. Um, from our perspective is is really directly related to a handful of communities, that that we're, um, you know, in close out. Um, they really decided to get aggressive on pricing. I think we would need to see the market, um, deteriorate rather significantly from here for the be significant additional impairments.
Speaker Change: Send this quarter X impairments, um, and capitalize interest, interest is running about a point and a half. So that that's more like 18 and a half, less the 14% sgna that, that's just how I was getting there.
Speaker Change: Yeah, correct. And 1 you know 1 1 little note, just on the on the um on the specific Gap, requirements of of impairment you you ignore the sgna, it's just direct cost in and out. So it it's really much more akin to your gross margin than than your pre-tax.
Speaker Change: Okay, that that's helpful. I appreciate that. Thanks guys. Yep.
Speaker Change: Thank you.
Speaker Change: Your fourth question comes from Michael rehat of JP Morgan. Please go ahead.
Hi everyone. This is Andrew osion for Michael rehaul. I appreciate you taking my questions.
Speaker Change: Um, just wanted to kind of appreciate all the color you'd given so far. I would love to drill down if possible on on, you know, I think we talked about July a bit. Would love to get a, a sense of what happened. April May to June and and given the volatility with rates what you were seeing in terms of your sales Pace versus your expectations month-to-month.
That, uh, you may have heard from others. The end of June was certainly very strong, um, uh, taking advantage of some of the, the dips and raids. Uh, and then we've paused um, at the beginning of July and it's been a little bit choppy so far, um, within July, um, uh, and so that's from Cadence perspective. Really where we've been at from a sales perspective
Got it. And then in terms of potential uh incremental Canadian tariffs on Lumber, can you provide maybe your your exposure to Canadian Lumber versus US source and and what kind of impact you'd expect?
Speaker Change: Yeah, absolutely. So obviously difficult to tell the exact impact at the moment. We'll need to wait to see until um, you know, until this additional terrorist or potentially finalized here. Um, we generally Source, uh, between 20 and 30% of our lumber from from Canada. Um, you know, it's Market dependent, but from a general rule, that, that would be our exposure. Um, and certainly, we're not seeing that currently, um, running through any cost. But we'll just have to see where where that land is going for.
Got it. Much appreciated. I'll pass it on. Thank you.
Speaker Change: Absolutely.
Speaker Change: As a reminder, if you wish to ask a question, please press star zero.
Speaker Change: For your next question.
Speaker Change: Can zenner of Seaport research Partners, please, go ahead.
you there can
Speaker Change: be can we can I hear you if you're on
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Speaker Change: can we hurt you?
Speaker Change: Oh, you did, you can?
Speaker Change: Yeah, we got you now.
Speaker Change: Thank you for the time.
Speaker Change: so,
Speaker Change: Thursday on a community count. Uh,
Speaker Change: More.
Speaker Change: Attributable to quarter and inventory. Uh, excuse me Community growth so I understand that but the orders are still down like in the west quite a bit. Uh and the mountains specifically could you kind of provide details around what you know what that driver was versus you know?
Speaker Change: The Baseline that you guys were.
Speaker Change: I don't know, like
To invest bad then you guys printed I guess is what I'm asking.
Speaker Change: Like what? What driver of that?
Speaker Change: Sure. I mean um, there's a handful of factors, obviously that's playing itself into it um you know from from a, from an overall perspective you know, the way the way the quarterly play itself out from the consumer demand perspective, um, was the sickling tool growth um, from, you know, maybe May to April and then obviously June to April. Um, it was something that we experienced, but, you know, April certainly was, um, off from March. So, uh, that was part of part of the driver from, uh, an absorption standpoint, uh, the other item that that we called out really. In our, um, in our prepared, remarks is, is really the, the significant amount of the community count did come online, um, in, uh, the back half of the year or excuse me at the quarter with, with Mo, most of it really coming online um, in June. And so that's that's some of the Dynamics that you're seeing um flow themselves through um uh, mountain in particular.
Speaker Change: So the 51 I assume quarter end Community Count versus 47 which is up right? Your suggesting of the or not. Suggesting I mean I'm not trying to pin you down here but with orders down
Speaker Change: Uh, contracts down 39%. Is that fair to think that?
Speaker Change: Over half of that was attributable to an average communicate, not being below the quarter end Community count is what you're suggesting.
Speaker Change: Mountain Century communities issue, which is just that Community count, not being available there, okay?
Speaker Change: Um, do appreciate that. Um, do you guys have any comment on what you think? If, if I wasn't mistaken, did I hear you correctly saying? You're
Speaker Change: Unicender construct. Well, with your stars at 2485, is that correct?
Speaker Change: That's right.
Do you expect kind of the Stars to reflect the orders growth as it has been more or less?
Speaker Change: It is a background. Yeah, more or less. Yes, more or less.
And then more or less. Uh, what do you guys expect your inventory, you know, your units under construction, right? So wherever you are now is you don't disclose, but like starts closing, so we can kind of get there. Do you know, what, What's the magnitude that you expect that to be down into fourth quarter year-over-year?
Speaker Change: And I think, I think in all honesty, it's really. Yeah, I think, I think, to some degree, it's dependent on on, uh, where where the market is, um, in terms of our, um, in terms of our ability to continue to to drive starts. So, uh, okay we start we we began the year with with, obviously a little bit of a higher, um, level of, of units either under construction and or finished. Um, and to really focus on working those down to levels that we feel. We feel quite frankly, very confident, um, uh, in putting more units out into the market for the back half of the
Speaker Change: Year to the, to the extent that we believe. Um, you know, to We believe that the market continues to support that level of starts. So, um, it'll be Market dependent, um, and demand dependent um, on an individual Market basis.
Speaker Change: Excellent. And the last question which I've been asking Builders is
Speaker Change: It's the census data has inventory.
Speaker Change: You know, for sale 3 categories complete under construction, not started, but do you guys respond to Census Bureau requests for, you know, inventory or sales or any of that type of information?
Speaker Change: do you provide them data is what I'm asking you
Speaker Change: um, can I don't believe we provide them specific inventory data, um, from a census on a regular basis,
Thank you very much. It's it's interesting. I don't know what Builder is so it's uh it's getting to be interesting. Thank you very much John. Absolutely.
Speaker Change: Your next question comes from Alex Barron of housing Research Center. Please go ahead.
Alex Barron: Yes. Thank you. Um, I think I heard you say that the build times currently are around 4 months. Um, that's correct. I was wondering, um, is there any room for improvement from that level? Do you feel that's about as efficient as a business gets? And if there is, is there any other, um,
Alex Barron: initiatives, you guys are potentially trying such as vertical integration or
You know, acquiring certain trades or anything like that.
Alex Barron: So as far as acquiring certain trades, Alex, we we have not been looking at that, but in terms of improving cycle times, you know, sequentially each quarter, they've gotten better candidly month by month, they've gotten better. You know, that 4 months is a Consolidated average, we have homes, some that are being built in the low, 70-day range. Um, certainly a lot in the 80 and 90 and we have other, uh, product specific and basement markets. Where the time frame may be a little bit longer than that 4 month period. But on average, that's what we're doing. Uh, we do. See that potentially even getting better, um, over time but that that has been a bright spot that we're continuing to reduce that down
Alex Barron: Got it and um as far as you know, um incentives especially as it pertains to finish spec inventory, are you guys primarily just doing right by Downs? Or are you also
Speaker Change: Um, having to do price cuts.
Speaker Change: Um you need to make sure of both certainly our um you know our most aggressive um opportunities on the mortgage side are generally geared towards our slowing moving communities, aged inventory and our consumer profiles that that need that assistance. Uh It generally is a mix of both. However,
Got it. Well, best of luck, guys. Thank you.
Thanks Alex. Thank you.
To call over to Dale. Please continue.
Speaker Change: Everyone on the call, thank you for your time today and interest in Century communities. So our team members, thank you for your hard work, dedication to Century and commitment to our valued home buyers.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect