Century Communities, Inc. (NYSE:CCS) Q4 2022 Earnings Conference Call February 1, 2023 5:00 PM ET

Company Participants

Tyler Langton - Senior Vice President, Investor Relations

Dale Francescon - Chairman and Co-Chief Executive Officer

Rob Francescon - Co-Chief Executive Officer and President

David Messenger - Chief Financial Officer

Conference Call Participants

Carl Reichardt - BTIG

Alan Ratner - Zelman & Associates

Jay McCanless - Wedbush Securities

Michael Rehaut - JPMorgan

Alex Barron - Housing Research Center

Operator

Hello and welcome to the Century Communities Fourth Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Senior Vice President of Investor Relations, Tyler Langton. Please go ahead.

Tyler Langton

Good afternoon. Thank you for joining us today for Century Communities earnings conference call for the fourth quarter and full year 2022. Before the call begins, I would like to remind everyone that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described 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 latest 10-K as supplemented by our other SEC filings. We undertake no duty to update our forward-looking statements. 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.

Hosting the call today are Dale Francescon, Chairman and Co-Chief Executive Officer; Rob Francescon, Co-Chief Executive Officer and President; and David Messenger, Chief Financial Officer. Following today's prepared remarks, we will open the line up for questions.

With that, I will turn the call over to Dale.

Dale Francescon

Thank you, Tyler, and good afternoon, everyone. During the fourth quarter, we focused our sales efforts and incentives towards available homes with near-term deliveries to monetize these homes, even though they carried lower margins due to inflated direct construction costs, given their start dates earlier in the year. The goals behind this strategy included increasing our cash position, reducing leverage metrics, and positioning us to start new and lower cost homes. As a result of the efforts, we generated $382 million of operating cash flow during the fourth quarter and reduced our net debt to net capital ratio down to 23.5%, the lowest year-end level in our history as a public company.