Century Communities, Inc. (NYSE:CCS), Greenwood Village, Col. after market close on Tuesday reported net income for the fourth quarter 2017 ended Dec. 31 was $17.2 million, or $0.60 per share. Excluding the impact of one-time charges associated with the remeasurement of net deferred tax assets and home builder acquisitions, adjusted net income for the fourth quarter increased 90% to a record $28.8 million, or $1.01 per share, as compared to $15.1 million, or $0.71 per share, for the prior year quarter.
Home sales revenues for the fourth quarter 2017 increased 77% to $516.5 million, compared to $292.4 million for the prior year quarter. The growth in home sales revenues was primarily due to a 62% increase in deliveries to 1,311 homes compared to 812 homes for the prior year quarter, and a higher average sales price of home deliveries of $394,000, compared to $360,100 in the prior year quarter.
Deliveries and average sales price of home deliveries in the fourth quarter of 2017 were both favorably impacted, primarily in the West, by the acquisitions of UCP and Sundquist. Excluding the West, the company’s legacy regions experienced growth in revenue and deliveries of 22% and 31%, respectively.
Adjusted home building gross margin percentage, excluding interest and purchase price accounting, was 21.7% in the fourth quarter 2017, as compared to 21.0% in the third quarter and 21.4% in the prior year quarter, primarily as a result of favorable product and geographical mix. Home building gross margin percentage in the fourth quarter 2017 was 17.6%, as compared to 19.2% in the prior year quarter, with approximately half of the difference attributable to the impact of purchase price accounting in the fourth quarter 2017. SG&A as a percent of home sales revenues was 12.1%, compared 11.9% in the prior year quarter, largely attributable to numerous investment initiatives to support growth objectives in 2018.
Net new home contracts in the fourth quarter 2017 increased to 922 homes, representing an increase of 62%, compared to 569 homes in the prior year quarter, attributable to the addition of the new West region and stronger demand trends in all legacy regions driving an overall increase in absorption rates. Excluding the West, the company’s legacy regions experienced a 30% increase in net new home contracts.