Market Overview

M.D.C. Holdings Announces 2015 Third Quarter Results

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DENVER, Oct. 27, 2015 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2015.

2015 Third Quarter Highlights and Comparisons to 2014 Third Quarter

  • Home sale revenues of $454.7 million, up 12% from $405.1 million
    • Average sales price up $51,000 per home, or 14%, to $421,000
    • Homes delivered of 1,080  vs. 1,093
  • Gross margin from home sales of 16.4% vs. 16.5%
    • Excluding $4.4 million in inventory impairments, gross margin from home sales up 80 basis points year-over-year and 70 basis points sequentially from the 2015 second quarter to 17.3%*
  • Ending backlog dollar value of $1.18 billion, up 49%
    • Ending backlog units of 2,587, up 38%
  • Dollar value of net new orders of $489.0 million, up 13%
    • Net new orders of 1,109, up 3%
  • Interest and other income of $0.8 million, down $5.1 million from $5.9 million
  • Net income of $14.8 million, or $0.30 per share, vs. $15.5 million, or $0.32 per share
    • Pretax income of $23.7 million vs. $23.9 million

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "During the 2015 third quarter, our pre-impairment gross margin percentage continued to increase both year-over-year and from the 2015 second quarter. When coupled with a robust increase in the average price of our homes delivered, this improvement drove our average pre-impairment gross margin per home closed for the quarter to more than $70,000, our highest amount since 2006."

Mr. Mizel continued, "We continued to see evidence that the homebuilding industry is on strong footing during the quarter. Not only did key macroeconomic drivers such as employment levels and consumer confidence continue to show modest improvements, but we also saw increasing evidence of accelerating wage growth and increasing household formation and birth rates. In combination with low interest rates and a limited supply of both new and existing home inventories, we believe that these factors can fuel continued improvement in overall market conditions for the industry."

Mr. Mizel concluded, "As a result of improved year-to-date sales activity and price increases implemented in many of our subdivisions throughout the year, combined with a longer sale-to-close cycle time resulting from an increasing percentage of dirt sales, the dollar value of our backlog reached $1.18 billion at the end of the quarter, up nearly 50% from a year ago. The increased number of units in production, both for us and the industry, has strained our subcontractor base, resulting in a lower backlog conversion rate, even against already tempered expectations.  However, we believe that the increased level of backlog also gives us a strong base for continued year-over-year revenue growth for the next few quarters."

Homebuilding

Home sale revenues for the 2015 third quarter increased 12% to $454.7 million, compared to $405.1 million for the prior year period. The increase in revenue was driven by a 14% increase in average selling price, primarily due to a mix shift to higher-priced submarkets and to a lesser extent price increases implemented earlier in the year.

Gross margin from home sales for the 2015 third quarter was down 10 basis points from the same period in 2014, due primarily to $4.4 million in inventory impairments and higher land and construction costs partially offset by a 90 basis point improvement in our interest in cost of sales as a percentage of home sale revenues, price increases implemented in various communities, and a higher percentage of our deliveries coming from dirt sales, which typically have higher gross margins than the sale of units already under construction. Excluding inventory impairments, our gross margin from home sales for the 2015 third quarter was 17.3%* (see below for a reconciliation of non-GAAP measures), up 80 basis points year-over-year. Sequentially, from the 2015 second quarter, our gross margin from home sales excluding inventory impairments increased 70 basis points, due primarily to (1) a 30 basis point improvement in our interest in cost of sales as a percent of home sale revenues, (2) a higher percentage of our total deliveries coming from dirt starts and (3) an increase in the gross margin for our spec deliveries, due to decreased incentives offered on the sale of these units.

Selling, general and administrative expenses ("SG&A") expenses for the 2015 third quarter were $57.4 million, while our SG&A expenses as a percent of home sale revenues ("SG&A rate") was 12.6%. For the same period in 2014, our SG&A expenses were $50.5 million, while our SG&A rate was 12.5%. The 10 basis point increase in our SG&A rate was driven primarily by a $5.4 million increase in executive compensation related expenses, partially offset by lower marketing costs relative to home sale revenues.

For the three months ended September 30, 2015, our interest and other income decreased $5.1 million, due primarily to a lower average marketable securities balance. Additionally, our impairments of marketable securities for the 2015 third quarter were $2.2 million, down $2.1 million from $4.3 million in the 2014 third quarter.

The dollar value of net new orders for the 2015 third quarter increased 13% to $489.0 million from $431.6 million for the same period in 2014. The improvement was primarily driven by a 10% increase in average selling price and, to a lesser extent, a 3% increase in the number of net new orders. Despite a year-over-year decrease in our average active subdivision count, our net new orders were up as a result of an 8% improvement in our monthly sales absorption pace. The increases in average selling price for both periods are the result of price increases implemented in many of our active subdivisions across most of our markets during the first nine months of 2015, coupled with changes in the mix of net new orders to higher priced submarkets. Our cancellation rate for the 2015 third quarter was nearly unchanged from a year ago at 25% compared to 26% for the same period in the prior year.

Our backlog value at the end of the 2015 third quarter was up 49% year-over-year to $1.18 billion. The increase was driven primarily by an 8% increase in the average selling price of homes in backlog and a 38% increase in units in backlog, due to year-over-year increases in net new orders for each of the past four quarters coupled with a higher percentage of dirt sales, which are generally in backlog for a longer period of time, and delayed closings as a result of limited subcontractor availability.

Financial Services

Income before taxes from our financial services operations for the 2015 third quarter was $8.3 million, an increase of $2.3 million from $6.0 million for the 2014 third quarter. The improvement was primarily driven by year-over-year increases in the dollar value of loans locked, originated, and sold  in our mortgage operations.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 180,000 homebuyers. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, South Florida and Seattle. The Company's subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol "MDC." For more information, visit www.mdcholdings.com.

Forward-Looking Statements

Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of MDC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, including changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of MDC's investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican Mortgage Corporation's sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by MDC in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns and natural disasters; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) changes in energy prices; and (17) other factors over which MDC has little or no control. Additional information about the risks and uncertainties applicable to MDC's business is contained in MDC's Form 10-Q for the quarter ended September 30, 2015, which is scheduled to be filed with the Securities and Exchange Commission today. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. MDC undertakes no duty to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or webcasts should be consulted.

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

 

M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income






Three Months Ended


Nine Months Ended


September 30,


September 30,


2015


2014


2015


2014


(Dollars in thousands, except per share amounts)


(Unaudited)

Homebuilding:












Home sale revenues

$

454,740


$

405,051


$

1,293,457


$

1,154,328

Land sale revenues


906



2,653



1,816



3,171

Total home and land sale revenues


455,646



407,704



1,295,273



1,157,499

Home cost of sales


(375,948)



(338,037)



(1,079,609)



(953,690)

Land cost of sales


(819)



(1,985)



(1,944)



(2,507)

Inventory impairments


(4,351)



-



(4,701)



(850)

Total cost of sales


(381,118)



(340,022)



(1,086,254)



(957,047)

Gross margin


74,528



67,682



209,019



200,452

Selling, general and administrative expenses


(57,444)



(50,512)



(162,757)



(148,652)

Interest and other income


838



5,926



5,412



24,088

Interest expense


-



-



-



(685)

Other expense


(350)



(841)



(2,539)



(2,534)

Loss on early extinguishment of debt


-



-



-



(9,412)

Other-than-temporary impairment of marketable securities


(2,176)



(4,293)



(2,176)



(4,293)

Homebuilding pretax income


15,396



17,962



46,959



58,964













Financial Services:












Revenues


12,841



10,699



34,852



31,413

Expenses


(5,464)



(5,643)



(15,830)



(16,182)

Interest and other income


885



906



2,885



2,395

Financial services pretax income


8,262



5,962



21,907



17,626













Income before income taxes


23,658



23,924



68,866



76,590

Provision for income taxes


(8,880)



(8,466)



(25,670)



(28,086)

Net income

$

14,778


$

15,458


$

43,196


$

48,504













Other comprehensive income (loss) related to
available for sale securities, net of tax













(226)



(2,484)



722



(4,203)

Comprehensive income

$

14,552


$

12,974


$

43,918


$

44,301













Earnings per share:












Basic

$

0.30


$

0.32


$

0.88


$

0.99

Diluted

$

0.30


$

0.32


$

0.88


$

0.99













Weighted average common shares outstanding












Basic


48,785,973



48,625,685



48,756,265



48,607,425

Diluted


49,070,291



48,830,790



48,982,975



48,824,871













Dividends declared per share

$

0.25


$

0.25


$

0.75


$

0.75

 

M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets






September 30,


December 31,


2015


2014

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:

(Unaudited)




Cash and cash equivalents

$

85,074


$

122,642

Marketable securities


89,479



140,878

Restricted cash


4,800



2,816

Trade and other receivables


28,588



28,555

Inventories:






Housing completed or under construction


821,667



732,692

Land and land under development


957,695



935,268

Total inventories


1,779,362



1,667,960

Property and equipment, net


28,499



30,491

Deferred tax asset, net


115,145



140,486

Metropolitan district bond securities (related party)


24,074



18,203

Prepaid and other assets


72,448



67,996

Total homebuilding assets


2,227,469



2,220,027

Financial Services:






Cash and cash equivalents


37,921



31,183

Marketable securities


10,939



15,262

Mortgage loans held-for-sale, net


68,633



88,392

Other assets


5,906



3,574

Total financial services assets


123,399



138,411

      Total Assets

$

2,350,868


$

2,358,438

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

41,514


$

35,445

Accrued liabilities


106,918



115,117

Revolving credit facility


15,000



15,000

Senior notes, net


846,907



846,450

Total homebuilding liabilities


1,010,339



1,012,012

Financial Services:






Accounts payable and accrued liabilities


54,164



57,268

Mortgage repurchase facility


43,755



60,822

Total financial services liabilities


97,919



118,090

      Total Liabilities


1,108,258



1,130,102

Stockholders' Equity






Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding


-



-

Common stock, $0.01 par value; 250,000,000 shares authorized; 48,886,424 and 48,831,639
issued and outstanding at September 30, 2015 and December 31, 2014, respectively







489



488

Additional paid-in-capital


916,975



909,974

Retained earnings


313,969



307,419

Accumulated other comprehensive income


11,177



10,455

Total Stockholders' Equity


1,242,610



1,228,336

Total Liabilities and Stockholders' Equity

$

2,350,868


$

2,358,438

 

M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows






Three Months Ended


Nine Months Ended


September 30,


September 30,


2015


2014


2015


2014


(Dollars in thousands)


(Unaudited)

Operating Activities:












Net income

$

14,778


$

15,458


$

43,196


$

48,504

Adjustments to reconcile net income to net cash provided by (used in)
operating activities:























Loss on early extinguishment of debt


-



-



-



9,412

Stock-based compensation expense


3,998



2,204



6,589



4,754

Depreciation and amortization


992



995



3,084



2,928

Inventory impairments


4,351



850



4,701



850

Other-than-temporary impairment of marketable securities


2,176



4,293



2,176



4,293

Loss (gain) on sale of marketable securities


588



(1,266)



126



(7,622)

Amortization of discount / premiums on marketable debt securities, net


-



79



100



501

Deferred income tax expense


8,515



8,809



24,782



28,363

Net changes in assets and liabilities:












      Restricted cash


144



(846)



(1,984)



(839)

      Trade and other receivables


(283)



2,588



(575)



(5,821)

      Mortgage loans held-for-sale


11,095



245



19,759



34,446

      Housing completed or under construction


(48,367)



(78,040)



(89,841)



(200,408)

      Land and land under development


(62,724)



(16,719)



(25,805)



(79,465)

      Prepaid expenses and other assets


(4,954)



(4,469)



(8,072)



(14,084)

      Accounts payable and accrued liabilities


(1,304)



(11,165)



(4,722)



932

Net cash used in operating activities


(70,995)



(76,984)



(26,486)



(173,256)













Investing Activities:












Purchases of marketable securities


(12,207)



(22,147)



(46,886)



(409,846)

Maturities of marketable securities


-



5,300



1,510



165,089

Sales of marketable securities


44,731



60,112



94,910



372,301

Purchases of property and equipment


(409)



(565)



(830)



(1,919)

Net cash provided by investing activities


32,115



42,700



48,704



125,625













Financing Activities:












Payments on mortgage repurchase facility, net


(6,245)



(416)



(17,067)



(31,292)

Proceeds from issuance of senior notes


-



-



-



248,375

Repayment of senior notes


-



-



-



(259,118)

Advances on revolving credit facility


-



-



-



10,000

Dividend payments


(12,221)



(12,204)



(36,646)



(36,616)

Proceeds from exercise of stock options


53



(8)



665



63

Net cash used in financing activities


(18,413)



(12,628)



(53,048)



(68,588)













Net decrease in cash and cash equivalents


(57,293)



(46,912)



(30,830)



(116,219)

Cash and cash equivalents:












      Beginning of period


180,288



130,031



153,825



199,338

      End of period

$

122,995


$

83,119


$

122,995


$

83,119

 

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data

New Home Deliveries




 Three Months Ended September 30, 



2015


2014


 % Change



 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price



(Dollars in thousands)


Arizona

190


$

54,434


$

286.5


222


$

58,816


$

264.9


(14)%


(7)%


8%


California

161



84,877



527.2


136



62,217



457.5


18%


36%


15%


Nevada

159



60,258



379.0


131



40,297



307.6


21%


50%


23%


Washington

75



30,174



402.3


66



23,297



353.0


14%


30%


14%


West

585



229,743



392.7


555



184,627



332.7


5%


24%


18%


Colorado

281



132,916



473.0


309



129,056



417.7


(9)%


3%


13%


Utah

39



13,460



345.1


43



13,526



314.6


(9)%


(0)%


10%


Mountain

320



146,376



457.4


352



142,582



405.1


(9)%


3%


13%


Maryland

55



26,122



474.9


74



35,094



474.2


(26)%


(26)%


0%


Virginia

51



25,309



496.3


56



26,682



476.5


(9)%


(5)%


4%


Florida

69



27,190



394.1


56



16,066



286.9


23%


69%


37%


East

175



78,621



449.3


186



77,842



418.5


(6)%


1%


7%


Total

1,080


$

454,740


$

421.1


1,093


$

405,051


$

370.6


(1)%


12%


14%









 Nine Months Ended September 30, 



2015


2014


 % Change



 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price



(Dollars in thousands)


Arizona

543


$

160,011


$

294.7


531


$

138,901


$

261.6


2%


15%


13%


California

486



243,407



500.8


371



174,215



469.6


31%


40%


7%


Nevada

404



147,788



365.8


395



123,016



311.4


2%


20%


17%


Washington

190



73,055



384.5


208



74,578



358.5


(9)%


(2)%


7%


West

1,623



624,261



384.6


1,505



510,710



339.3


8%


22%


13%


Colorado

843



392,779



465.9


885



354,443



400.5


(5)%


11%


16%


Utah

95



33,600



353.7


111



35,231



317.4


(14)%


(5)%


11%


Mountain

938



426,379



454.6


996



389,674



391.2


(6)%


9%


16%


Maryland

168



78,980



470.1


232



108,350



467.0


(28)%


(27)%


1%


Virginia

170



82,755



486.8


180



88,972



494.3


(6)%


(7)%


(2)%


Florida

216



81,082



375.4


211



56,622



268.4


2%


43%


40%


East

554



242,817



438.3


623



253,944



407.6


(11)%


(4)%


8%


Total

3,115


$

1,293,457


$

415.2


3,124


$

1,154,328


$

369.5


(0)%


12%


12%

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data

Net New Orders




 Three Months Ended September 30, 


2015


2014


% Change


Homes


Dollar

Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


(Dollars in thousands)

Arizona

214


$

60,274


$

281.7


2.15


208


$

63,685


$

306.2


1.98


3%


(5)%


(8)%


9%

California

184



118,943



646.4


3.07


164



78,245



477.1


2.80


12%


52%


35%


10%

Nevada

110



40,196



365.4


2.99


155



55,766



359.8


2.91


(29)%


(28)%


2%


3%

Washington

93



40,260



432.9


2.25


63



22,578



358.4


2.33


48%


78%


21%


(3)%

West

601



259,673



432.1


2.53


590



220,274



373.3


2.42


2%


18%


16%


5%

Colorado

273



129,221



473.3


2.39


262



114,707



437.8


2.25


4%


13%


8%


6%

Utah

48



17,282



360.0


2.21


35



11,934



341.0


2.12


37%


45%


6%


4%

Mountain

321



146,503



456.4


2.36


297



126,641



426.4


2.24


8%


16%


7%


5%

Maryland

53



26,667



503.2


1.81


55



25,518



464.0


1.31


(4)%


5%


8%


38%

Virginia

48



22,812



475.3


2.21


49



24,878



507.7


2.04


(2)%


(8)%


(6)%


8%

Florida

86



33,393



388.3


1.98


90



34,274



380.8


1.88


(4)%


(3)%


2%


5%

East

187



82,872



443.2


1.98


194



84,670



436.4


1.70


(4)%


(2)%


2%


16%

Total

1,109


$

489,048


$

441.0


2.37


1,081


$

431,585


$

399.2


2.20


3%


13%


10%


8%






 Nine Months Ended September 30, 


2015


2014


% Change


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


(Dollars in thousands)

Arizona

689


$

195,546


$

283.8


2.20


661


$

193,516


$

292.8


2.32


4%


1%


(3)%


(5)%

California

696



402,701



578.6


3.79


531



257,163



484.3


3.64


31%


57%


19%


4%

Nevada

487



185,313



380.5


4.19


485



158,804



327.4


3.27


0%


17%


16%


28%

Washington

314



133,197



424.2


2.66


229



85,033



371.3


2.54


37%


57%


14%


5%

West

2,186



916,757



419.4


2.99


1,906



694,516



364.4


2.85


15%


32%


15%


5%

Colorado

1,173



557,372



475.2


3.19


1,068



453,163



424.3


3.12


10%


23%


12%


2%

Utah

177



64,426



364.0


2.89


133



44,425



334.0


2.64


33%


45%


9%


9%

Mountain

1,350



621,798



460.6


3.15


1,201



497,588



414.3


3.06


12%


25%


11%


3%

Maryland

181



89,213



492.9


2.14


200



95,390



477.0


1.44


(10)%


(6)%


3%


49%

Virginia

163



80,588



494.4


2.11


172



86,625



503.6


2.08


(5)%


(7)%


(2)%


1%

Florida

303


112,895


372.6


2.34


257


87,047


338.7


1.96


18%


30%


10%


19%

East

647



282,696



436.9


2.22


629



269,062



427.8


1.78


3%


5%


2%


25%

Total

4,183


$

1,821,251


$

435.4


2.88


3,736


$

1,461,166


$

391.1


2.64


12%


25%


11%


9%


* Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data

Active Subdivisions




















Average Active Subdivisions


Average Active Subdivisions



Active Subdivisions


Three Months Ended


Nine Months Ended



September 30,


%


September 30,


%


September 30,


%



2015


2014


Change


2015


2014


Change


2015


2014


Change


Arizona

31


36


(14)%


33


35


(6)%


35


32


9%


California

19


21


(10)%


20


20


0%


20


16


25%


Nevada

15


18


(17)%


12


18


(33)%


13


17


(24)%


Washington

14


10


40%


14


9


56%


13


10


30%


West

79


85


(7)%


79


82


(4)%


81


75


8%


Colorado

37


42


(12)%


38


39


(3)%


41


38


8%


Utah

8


5


60%


7


6


17%


7


6


17%


Mountain

45


47


(4)%


45


45


0%


48


44


9%


Maryland

10


14


(29)%


10


14


(29)%


9


15


(40)%


Virginia

8


8


0%


7


8


(13)%


9


9


0%


Florida

15


16


(6)%


15


16


(6)%


14


15


(7)%


East

33


38


(13)%


32


38


(16)%


32


39


(18)%


Total

157


170


(8)%


156


165


(5)%


161


158


2%

 

Backlog






September 30,



2015


2014


% Change



Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price



(Dollars in thousands)


Arizona

377


$

109,735


$

291.1


290


$

96,456


$

332.6


30%


14%


(12)%


California

402



253,814



631.4


307



150,856



491.4


31%


68%


28%


Nevada

238



94,815



398.4


230



81,644



355.0


3%


16%


12%


Washington

179



79,175



442.3


67



25,302



377.6


167%


213%


17%


West

1,196



537,539



449.4


894



354,258



396.3


34%


52%


13%


Colorado

909



434,371



477.9


600



268,205



447.0


52%


62%


7%


Utah

122



43,551



357.0


48



17,135



357.0


154%


154%


0%


Mountain

1,031



477,922



463.6


648



285,340



440.3


59%


67%


5%


Maryland

81



42,999



530.9


97



48,831



503.4


(16)%


(12)%


5%


Virginia

83



42,494



512.0


95



47,663



501.7


(13)%


(11)%


2%


Florida

196



78,900



402.6


140



56,053



400.4


40%


41%


1%


East

360



164,393



456.6


332



152,547



459.5


8%


8%


(1)%


Total

2,587


$

1,179,854


$

456.1


1,874


$

792,145


$

422.7


38%


49%


8%

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data






Homes Completed or Under Construction (WIP lots)








September 30,


%



2015


2014


Change


Unsold:







Completed

221


456


(52)%


Under construction

403


881


(54)%


Total unsold started homes

624


1,337


(53)%


Sold homes under construction or completed

1,947


1,417


37%


Model homes

273


242


13%


Total homes completed or under construction

2,844


2,996


(5)%

 

Lots Owned and Options (including homes completed or under construction)










September 30, 2015


September 30, 2014





Lots Owned


Lots Optioned


Total


Lots Owned


Lots Optioned


Total


Total % Change


Arizona

1,778


205


1,983


2,461


50


2,511


(21)%


California

1,726


222


1,948


1,711


191


1,902


2%


Nevada

1,938


439


2,377


1,703


209


1,912


24%


Washington

842


37


879


936


-


936


(6)%


West

6,284


903


7,187


6,811


450


7,261


(1)%


Colorado

4,208


1,036


5,244


4,240


1,160


5,400


(3)%


Utah

496


-


496


662


-


662


(25)%


Mountain

4,704


1,036


5,740


4,902


1,160


6,062


(5)%


Maryland

383


304


687


403


389


792


(13)%


Virginia

693


163


856


546


510


1,056


(19)%


Florida

1,014


293


1,307


917


254


1,171


12%


East

2,090


760


2,850


1,866


1,153


3,019


(6)%


Total

13,078


2,699


15,777


13,579


2,763


16,342


(3)%

 

M.D.C. HOLDINGS, INC.
Reconciliations of Non-GAAP Financial Measures



Gross Margin from Home Sales Excluding Interest and Impairments (Unaudited)



Gross Margin from Home Sales Excluding Impairments and Gross Margin from Home Sales Excluding Interest and Impairments are non-GAAP financial measures. We believe this information is meaningful as it isolates the impact that interest and impairments have on our Gross Margin from Home Sales and permits investors to make better comparisons with our competitors, who also break out and adjust gross margins in a similar fashion.




Three Months Ended


September 30, 2015


Gross Margin %


June 30, 2015


Gross Margin %


September 30, 2014


Gross Margin %


(Dollars in thousands)

Gross Margin

$

74,528


16.4%


$

76,689


16.6%


$

67,682


16.6%

Less: Land Sales Revenue


(906)





-





(2,653)



Add: Land Cost of Sales


819





-





1,985



Gross Margin from Home Sales


74,441


16.4%



76,689


16.6%



67,014


16.5%

Add: Inventory Impairments


4,351





-





-



Gross Margin from Home Sales Excluding Impairments


78,792


17.3%



76,689


16.6%



67,014


16.5%

Add: Interest in Cost of Sales


12,878





14,439





14,966



Gross Margin from Home Sales Excluding Impairments
and Interest in Cost of Sales















$

91,670


20.2%


$

91,128


19.7%


$

81,980


20.2%
































 Nine Months Ended September 30, 







September 30, 2015


Gross Margin %


September 30, 2014


Gross Margin %







(Dollars in thousands)






Gross Margin

$

209,019


16.1%


$

200,452


17.3%






Less: Land Sales Revenue


(1,816)





(3,171)








Add: Land Cost of Sales


1,944





2,507








Gross Margin from Home Sales


209,147


16.2%



199,788


17.3%






Add: Inventory Impairments


4,701





850








Gross Margin from Home Sales Excluding Impairments


213,848


16.5%



200,638


17.4%






Add: Interest in Cost of Sales


39,808





43,212








Gross Margin from Home Sales Excluding Impairments
and Interest in Cost of Sales















$

253,656


19.6%


$

243,850


21.1%






 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2015-third-quarter-results-300166678.html

SOURCE M.D.C. Holdings, Inc.

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