DEF 14A: Century Communities Announces 2024 Annual Meeting of Stockholders, Highlights Strong 2023 Performance

Century Communities invites stockholders to its 2024 Annual Meeting and reports a successful 2023 marked by profitability, balance sheet strength, and record deliveries.

Summary

• Century Communities is holding its 2024 Annual Meeting of Stockholders on May 8, 2024.
• Stockholders will vote on electing seven directors, ratifying the appointment of Ernst & Young LLP as the independent accounting firm, and approving executive compensation.
• The company highlights its strong performance in 2023, including achieving \$3.6 billion in home sales revenues.
• Net homebuilding debt to net capital decreased to 22.4%, the lowest year-end level in the company's history as a public company.
• The stock price per share increased by over 82% to \$91.14 as of December 31, 2023.
• Book value per share increased by 11% to \$75.12 as of December 31, 2023.
• The quarterly cash dividend increased by 15% to \$0.23 per share in March 2023.
• The company delivered 9,568 homes in 2023 and strategically managed its lot pipeline, resulting in 73,720 lots owned and controlled.
• Approximately 92% of deliveries were made to entry-level homebuyers.
• The company prioritized incentivizing homes with near-term completions and increased spec builds to 99% of total home deliveries.
• The Board of Directors recommends voting FOR the director nominees and the proposals outlined in the proxy statement.

Sentiment

Score: 8

Explanation: The document expresses a positive outlook on the company's performance and future prospects, highlighting strong financial results and strategic initiatives. The tone is optimistic and confident.

Positives

• The company achieved its 21st consecutive year of profitability.
• Century Communities ended the year with the strongest balance sheet, lowest leverage, and highest share price in its history.
• The company has a strong focus on entry-level homes and move-in-ready/spec home construction.
• The company has a robust stockholder engagement program and values stockholder feedback.
• The company has a clawback policy to recover incentive compensation based on incorrect calculations resulting from a financial restatement.
• The company has a commitment to environmental, social, and governance (ESG) principles.

Risks

• The document mentions the volatility of interest rates in 2023 as a challenge.
• The company faces risks inherent in the homebuilding industry, including financial, operational, strategic, regulatory, compliance, legal, cybersecurity, competitive, and reputational risks.

Future Outlook

The company aims to continue building affordable homes with lasting livability and believes its commitment to ESG initiatives can be achieved in parallel with the interests of its homeowners and stockholders.

Management Comments

• We are extremely pleased with the performance and resilience demonstrated by the Century Communities team throughout 2023, which was a difficult yet rewarding year for our Company.
• Our goal as a Company is to provide our homebuyer with A Home for Every Dream and we accomplish this by offering our customers some of the most affordable homes in our industry.

Industry Context

The document highlights the strong underlying demand for new homes driven by positive demographics and a lack of existing home inventory, indicating a favorable environment for homebuilders.

Comparison to Industry Standards

• The document mentions that the company compensates its executives competitively relative to industry peers.
• The company benchmarks its executive compensation against a peer group of 15 public companies in the homebuilding or manufactured housing industries, including Beazer Homes USA, Inc., LGI Homes, Inc., PulteGroup, Inc., and others.
• The company targets fixed compensation (i.e., base salary) at the market median, with performance-based incentive compensation opportunities resulting in total direct compensation that ranges from below the market median to the top quartile of the market (based on performance).

Management Changes

Related Party Transactions

• James Francescon, the son of Robert J. Francescon, received total gross compensation of \$646,500 as Executive Vice President, Corporate Operations.
• The son of David L. Messenger purchased a home from Century for approximately \$650,000 and obtained a mortgage of approximately \$552,500 from Inspire Home Loans.

Stakeholder Impact

• Shareholders are encouraged to participate in the Annual Meeting and vote on key proposals.
• Employees are recognized for their contributions to the company's success.
• Customers are offered affordable homes and a commitment to building enduring neighborhoods.
• Communities benefit from the company's charitable contributions and responsible land development practices.

Next Steps

• Stockholders are urged to vote their shares via the Internet, by telephone, or by promptly marking, dating, signing, and returning the proxy card.
• The Board of Directors will consider the outcome of the advisory vote on executive compensation when making future compensation decisions.

Key Dates

Keywords

Annual Meeting, Stockholders, Homebuilding, Executive Compensation, Corporate Governance, Financial Performance, Century Communities, Directors, Proxy Statement