Greetings. Welcome to 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 31, 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 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 most recently filed 2021, and to be filed 2021 annual report on Form 10-K, as supplemented by our other SEC filings. Our SEC filings are available at www.sec.gov and on our website at www.centurycommunities.com. 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 will be available after the call should you have any questions that did not get answered. Hosting the call today are Dale Francescon, Chairman and Co-Chief Executive Officer, Rob Francescon, 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 our affordable new homes across our entire 17-state footprint. We delivered 2,915 homes, the most homes we have ever delivered within a quarter, culminating in a record 10,805 closings for the year, generating over $4.2 billion in total revenues, a 33% increase. The fourth quarter was not only Century's 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 home sales gross margin of 25.9%, our highest since going public. We accomplished this while concurrently improving our SG&A leverage to 9.3%, the lowest in company history, and the fourth quarter in a row of single-digit SG&A ratio, helping to drive our eighth sequential quarter of 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 2,700 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 our 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 the year with 4,651 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 9.7%, fueling Century Communities' most profitable year ever. Throughout 2021, we were able to increase our gross margin% in each successive quarter, resulting in a 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. 2021 also represented our 19th consecutive year of profitability. Housing demographics and buyer demand remain 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 two point four months. This constrained supply of available homes is occurring at a time when millions of millennials, the largest generational group in the country, are 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 home buyers to not only reserve but fully complete a 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 streamlined process is easily completed, providing the convenience of online shopping and enabling buyers to purchase a home anytime, 365 days a year. The program's 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 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 remain 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 milestone year, we are 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. 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 continued to raise prices across all of Century's 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 home buyers in 2022. The new FHA loan limits went into effect on January first and increased by approximately 18%, basically equivalent to the rise in home prices that occurred over the past year. Our typical buyer continues to have a healthy financial profile with average FICO scores of 746 and 714 based on loans originated in the fourth quarter, respectively, for our Century Communities and Century Complete home buyers. 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, that would only increase the monthly mortgage payment by $61 for a Century Complete home buyer and $117 for a Century Communities home buyer, further illustrating the impressive affordability of our homes. Given the robust outlook for housing demographics in support of our future growth expectations, we've continued to expand our land pipeline to more deeply penetrate our local markets. As part of executing on this growth plan, we have grown our total lot count to nearly 80,000 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 in 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 spec 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 substituted 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 costs before pricing and releasing a 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 moving. 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 in the prior-year quarter. Full year net income increased 142% - $498.5 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 million, 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 2,915 homes compared to 2,826 homes, along with an 18% increase in average sales price to $395,000. 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 10,805 homes. In the fourth quarter, net new contracts across our divisions increased to 2,700 contracts, a fourth quarter record propelled by a 31% increase in net in new contracts for our Century Complete brand. For the full year, net new home contracts increased 11% to a record of 12,017 contracts. We also improved our year-end backlog 35% to 4,651 homes valued at $1.9 billion, a 45% increase. In the fourth quarter, adjusted home building gross margin percentage was 27.3% compared to 23% in the prior year quarter. Home building gross margin percentage improved to 25.9% compared to 20.8% for the same period last year. This is the sixth quarter of sequential gross margin improvement. For the full year, home building gross margin percentage improved to 24.2% compared to 18.4%, and adjusted home building 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 9.3% in the fourth quarter, compared to 10.1% in the prior year, the result of our ongoing efforts to manage costs, institute efficiencies, and improve operating leverage. For the full year, SG&A as a percent of home sales revenues was 9.7% 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. Our financial services business continued 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 pre-tax 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 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. the end of 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 unsecured revolving credit facility that does not mature until April of 2026. 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 in us achieving an ROE of 33%, a new record for the company, and our eleventh 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 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 20-25% 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 2021, 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% should be a tick down from our 2021 levels. Additionally, for 2022, we expect deliveries in the range of 11,500-12,500 homes and home sales revenues to be in the range of $4.3 billion-$4.9 billion. 2022 appears to be another year for significant milestones and record results, including more top-line growth and expanded profitability as we drive continued value creation for our shareholders. With that, I'll open the line up for questions. Operator? Thank you. At this time, we will 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 keys. Additionally, we ask that you limit yourselves to one question and one follow-up per person. One moment please while we poll for questions. Our first question is from Michael Rehaut of JPMorgan. Please proceed with your question. Hi, this is Maggie on for Mike. First question on how you're thinking about gross margins into 2022. I believe if I heard you correctly, you mentioned that you expect continued year-on-year improvement during the first half of the year. Can you talk about how you're thinking about the sequential performance of those margins, particularly as it relates to kind of the moving pieces, the 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 have a little bit of visibility into our Q1 and Q2 margins, you know, I'd say they're probably gonna be roughly consistent with our Q3 and Q4 margins, so in that 25.5%-26% range, which would be, you know, some pretty significant year-over-year improvement. Obviously, getting into the back half of this year, we'll be watching commodity pricing and our own in-house pricing. We'll be, you know, happy to provide more color on that as we get further in the year. Got it. Thank you. A second question, just on the orders for the quarter. I think last quarter you had guided to down maybe 10% and obviously you came in up 5%, so much better than that. I know that you called out that sales pace accelerated through the quarter. What changed kind of relative to expectations, and can you talk about what you've seen in January in terms of demand? Sure, Maggie. This is Dale. I think as we said in our prepared remarks, the biggest impact on sales pace is really the number of available homes that we have for sale at any time. The demand was strong throughout the quarter. It's been strong through January. It's really a matter of when we get starts out to a point that they're fully priced and we're comfortable releasing them for sale. 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. That's the reason that we saw the increase in the sales pace as 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. Thanks for taking my question. Interesting step up in that community count growth guide. I thought last quarter we were looking at high single digits to low double digits kind of a profile. Curious, how did such a growth potential come together all the, you know, within a short span? Was there any acquisitions involved? You know, how did you get it together organically in this supply chain and labor-constrained environment? Hey, Deepa, this is Dave. Yeah, no, there were no acquisitions in the quarter. All of this was organic growth. You know, as we've been seeing throughout the course of 2021, when we started talking about community count growth in the second quarter, the third quarter, we saw things getting delayed, and really kind of bunching up in that fourth quarter and not knowing when we were gonna be able to pull the trigger on grand openings. We got into October, November, December, and we were able to get some of these, you know, pretty much really in November, December, some of these communities open at the very tail end of the year through the municipalities, get the grand opening set, and actually get them functional here at the very end of the year. Okay. That's fair. Supply chain, I mean, it looks like none of you builders are expecting any easing at all in the rest of 2022. Should we at this point in time just write off any improvements that we could probably see during the year, or do you see some signs that it could still improve maybe at the margins? Secondarily, if things do improve by summer or ease, you know, any of these supply chain issues ease, can it benefit spec builders such as yourself in 2022, or will that be only a 2023 story? Well, you know, I'd love to say that I think that we're seeing an easing of the supply chain challenges, but nothing has really changed from a positive perspective. It's not like it's one particular item that causes delays. I'm sure you can appreciate, I mean, we watch our cycle times pretty closely in terms of what we're seeing change. You know, during the fourth quarter, we saw our cycle times expand by another couple weeks. At this point, our average cycle time is just under seven point five months. You know, that's up about two months from where we were at this time last year. As we look in the future, I mean, at some point it'll start improving, but 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 or you'd say supply was, I mean, the product side was worse or you think both were equally worse? Well, I think it's really there are, you know, in some markets at one point in time, it may be labor. In a different market, it may be a particular commodity, or it may be a particular material that we need. It's just really across the board. As opposed to saying, "Well, it's all labor or it's all materials or it's something," it really is a combination of all the above, and it kind of comes together. In one market, we may be experiencing one thing, in another market, we're experiencing a scarcity of something else. All right, that's fair. Thanks very much. Great quarter. Pass it on. Thanks. 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 and year. First question, you know, just on the order pace, not to beat a dead horse here. You know, obviously came in well above what you kind of signaled to us in October. You know, on the flip side for 1Q, you know, expecting flattish order trends. You know, I understand there's a tough comp from a year ago, so I'm not necessarily focused on that. You know, historically, first quarter spring selling season, you do see a pretty meaningful step-up in order activity on a sequential basis. It doesn't look like your community count's moving lower versus the fourth quarter. Why shouldn't we expect some seasonal lift in order activity? Hey, Alan, this is David. I think, you know, kind of piggybacking off what Dale said, our sales right now are really dependent on the amount of homes we're putting out there for sale and the inventory we're making available. From a community count perspective, you know, we look at the first quarter and 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. From a sales perspective here in the first quarter of the year, seeing it be relatively flat compared to Q4, that's really a function of just the amount of inventory and starts we have in the ground that we'll be getting in the ground here over the next couple of months. Got it. On that note, Dave, do you have the number of, I know most of your business is spec, 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. Well, maybe I can get a do-over here on my follow-up. Can you talk a little bit about build for rent and, you know, what activity, if any, you know, in terms of sales you've had to build for rent investors, operators and what the outlook is for 2022 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 in our Century Communities business as well. In terms of a number of sales that we do to investors, it's a small part of our overall business. Single digits, I would assume. Yes. Yeah. Okay. Thanks a lot, guys. Thanks. Our next question is from Alex Rygiel of B. Riley. Please proceed with your question. Thank you, and very nice quarter, gentlemen. A couple quick questions here. Thank you. Thanks. Backlog in the Southeast, trending down year-over-year for the last couple quarters. Can you expand upon this? Because it looks like your lot count's growing a lot, so are 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. It's strictly timing. That is helpful. 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 it's become to your sales process? Well, on the Century Complete side, virtually all of our home buyers use it, even if they're working with a sales counselor. That is the way that we sell homes on Century Complete. On Century Communities, we've just migrated to that. 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 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 basically the same experience across the board. Thank you. Our next question is from Alex Barrón of Housing Research Center. Please proceed with your question. Hello, gentlemen. Great job in the quarter and for the year. I wanted to ask about the Texas region. Looks like the deliveries had a nice increase this quarter, but they had been a bit depressed the previous quarter. Can you guys discuss a little bit about, you know, what went on there, what caused both of those things and, you know, 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. This has been a strategy we've deployed, and as you know, it takes a little time for things to come to fruition, but that's why those numbers are up now. We're continuing to do that on the land front by increasing our pipeline of lots there, where, you know, we have on a year-over-year basis, you know, we're up at least 50%, over 50%, and we own and control about 13,500 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, expecting them to be flat. Did you mean sequentially or did you mean year over year? Sequentially. Okay, got it. Thanks. Another question was, you know, I applaud your decision to start the dividend, but just curious around your current thoughts around share buybacks. Hey, Alex. Yeah, I mean, share buybacks are always an option for us and something that we have continued to monitor as we evaluate whether we should, you know, evaluate investing in our divisions and the organic growth of 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 2022. Okay, great. I'll give it to somebody else. Thanks. Thank you. Thanks, Alex. Our next question is from Jay McCanless of Wedbush Securities. Please proceed with your question. Hey, good afternoon, everyone. Thanks for taking my question. With Century Complete, since you, I'm assuming, 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 a smaller floor plan? No. Since the recent move in rates, Jay, we haven't seen any change in demand or buyer behavior. Good to hear. I know we already talked about lumber, and I'm assuming with a seven-month cycle time that we'll have to be thinking about maybe some higher lumber costs in the gross margin in the back half of the year. Maybe could you comment on the other input costs, shingles, cement, et cetera, what you're seeing in the cost trends for those goods? They're all going up. I think that right now you're just seeing supply chain in total. I mean, you know, cement costs are up, plumbing's up, drywall's up. As I'm just scanning through my list here, you know, most items on a year-over-year basis are trending upwards. It could be anywhere from 2%-10%. 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. Based on what we have in our backlog, I would say yes. You know, that's really the beauty of our model in that we're not releasing homes for sale until we've got our costs locked in. That's part of why we like the spec business model. Sounds great. Thanks again. You're welcome. Thanks. We have reached the end of the question and answer session. I will now turn the line back over to Dale Francescon for some brief closing remarks. Thank you, operator. I'd like to take this opportunity to once again thank all of our team members for their incredible work and continued dedication to our valued home buyers. 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.