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M.D.C. Holdings Announces 2016 Second Quarter Results

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DENVER, Aug. 3, 2016 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended June 30, 2016.

2016 Second Quarter Highlights and Comparisons to 2015 Second Quarter

  • Net income up 35% to $26.9 million, or $0.55 per share from $20.0 million or $0.41 per share
  • Home sale revenues up 24% to $571.2 million from $461.7 million
    • Average sales price up 10% to $449,100
    • Homes delivered up 13% to 1,272
  • Dollar value of net new orders up 15% to $723.0 million from $629.7 million
    • Net new orders up 11% to 1,646
  • Ending backlog dollar value up 42% to $1.61 billion from $1.13 billion
    • Ending backlog units up 35% to 3,445

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with the results of our 2016 second quarter, highlighted by a 35% increase in our net income. As a result of strong execution by our dedicated employees across the country, our home sale revenues improved by 24%, the fastest rate of year-over-year growth in nearly 3 years."

Mr. Mizel concluded, "To end the spring selling season, we recorded our ninth consecutive quarter of year-over-year growth in net new orders and achieved our highest second quarter average monthly sales absorption pace in over a decade, enabling us to reach a quarter-end backlog that was considerably higher than a year ago. As we enter the second half of 2016, our focus will be on accelerating the delivery of homes from this robust backlog, with a goal of sustaining our significant year-over-year revenue growth for the remainder of the year. This focus will give us the opportunity for continuing gains in operating leverage and overall returns for our Company, even as we maintain a financial position that ranks among the industry's strongest."  

Homebuilding

Home sale revenues for the 2016 second quarter increased 24% to $571.2 million, compared to $461.7 million for the prior year period. This improvement was driven by a 13% increase in deliveries, primarily due to a 39% year-over-year increase of our homes in beginning backlog, and a 10% increase in average selling price. The increase in average selling price was primarily the result of a mix shift to higher-priced submarkets and, to a lesser extent, price increases implemented in the prior year.

For the 2016 second quarter, our gross margin from home sales declined 20 basis points from the same period in 2015. The decline was primarily the result of $1.6 million of inventory impairments, but it was mostly offset by less interest included in cost of sales as a percentage of home sale revenues. 

Selling, general and administrative ("SG&A") expenses for the 2016 second quarter were $64.4 million, up $9.6 million from $54.8 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenues ("SG&A rate") decreased by 60 basis points to 11.3% for the 2016 second quarter from 11.9% in the 2015 second quarter. This decrease in our SG&A rate was primarily the result of a 24% increase in home sale revenues.

The dollar value of net new orders for the 2016 second quarter increased 15% year-over-year to $723.0 million. The improvement was primarily the result of an 11% increase in the number of homes sold, which was driven by a 10% increase in our monthly sales absorption rate. We also had a slight increase in our average selling price, due to price increases implemented in various active communities over the past year and a shift in mix to higher priced communities.

Our backlog value at the end of the 2016 second quarter was up 42% year-over-year to $1.61 billion. The improvement was due mostly to a 35% increase in the number of units in backlog, primarily due to (1) an increase in net new order activity over the last twelve months, (2) a higher percent of our backlog coming from build-to-order sales, which are generally in backlog for a longer period of time and, (3) limited subcontractor availability, which has extended our cycle times.

Financial Services

Income before taxes for our financial services operations for the 2016 second quarter was $9.1 million, a $0.8 million increase from $8.3 million in the 2015 second quarter. The increase in pretax income was primarily the result of year-over-year increases in (1) the dollar value of loans locked, originated, and sold, and (2) higher gains on loans locked and sold.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 185,000 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 June 30, 2016, 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.

 

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






Three Months Ended


Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(Dollars in thousands, except per share amounts)


(Unaudited)

Homebuilding:












Home sale revenues

$

571,195


$

461,708


$

965,615


$

838,717

Land sale revenues


316



-



2,640



910

Total home and land sale revenues


571,511



461,708



968,255



839,627

Home cost of sales


(475,836)



(385,019)



(805,862)



(703,661)

Land cost of sales


(216)



-



(1,879)



(1,125)

Inventory impairments


(1,600)



-



(1,600)



(350)

Total cost of sales


(477,652)



(385,019)



(809,341)



(705,136)

Gross margin


93,859



76,689



158,914



134,491

Selling, general and administrative expenses


(64,440)



(54,781)



(120,717)



(105,313)

Interest and other income


2,553



2,720



3,489



4,574

Other expense


(278)



(1,055)



(905)



(2,189)

Other-than-temporary impairment of marketable securities


(288)



-



(719)



-

Homebuilding pretax income


31,406



23,573



40,062



31,563













Financial Services:












Revenues


15,823



11,420



26,840



22,011

Expenses


(7,543)



(4,207)



(13,784)



(10,366)

Interest and other income


772



1,096



1,613



2,000

Financial services pretax income


9,052



8,309



14,669



13,645













Income before income taxes


40,458



31,882



54,731



45,208

Provision for income taxes


(13,545)



(11,884)



(18,255)



(16,790)

Net income

$

26,913


$

19,998


$

36,476


$

28,418













Other comprehensive income (loss) related to












available for sale securities, net of tax


895



(360)



2,843



948

Comprehensive income

$

27,808


$

19,638


$

39,319


$

29,366













Earnings per share:












Basic

$

0.55


$

0.41


$

0.74


$

0.58

Diluted

$

0.55


$

0.41


$

0.74


$

0.58













Weighted average common shares outstanding












Basic


48,851,350



48,768,021



48,839,660



48,741,476

Diluted


48,861,742



49,005,037



48,848,914



48,954,059













Dividends declared per share

$

0.25


$

0.25


$

0.50


$

0.50

 

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






June 30,


December 31,


2016


2015

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:

(Unaudited)




Cash and cash equivalents

$

132,006


$

144,342

Marketable securities


55,798



92,387

Restricted cash


3,946



3,750

Trade and other receivables


47,803



23,314

Inventories:






Housing completed or under construction


933,922



747,036

Land and land under development


893,096



1,016,926

Total inventories


1,827,018



1,763,962

Property and equipment, net


29,143



28,226

Deferred tax asset, net


89,242



99,107

Metropolitan district bond securities (related party)


28,604



25,911

Prepaid and other assets


65,254



65,394

Total homebuilding assets


2,278,814



2,246,393

Financial Services:






Cash and cash equivalents


39,300



36,646

Marketable securities


14,821



11,307

Mortgage loans held-for-sale, net


118,699



115,670

Other assets


9,766



5,883

Total financial services assets


182,586



169,506

      Total Assets

$

2,461,400


$

2,415,899

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

48,294


$

40,472

Accrued liabilities


130,651



122,886

Revolving credit facility


15,000



15,000

Senior notes, net


841,076



840,524

Total homebuilding liabilities


1,035,021



1,018,882

Financial Services:






Accounts payable and accrued liabilities


56,060



52,114

Mortgage repurchase facility


93,297



88,611

Total financial services liabilities


149,357



140,725

      Total Liabilities


1,184,378



1,159,607

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; 49,008,835 and 48,888,424






 issued and outstanding at June 30, 2016 and December 31, 2015, respectively


490



489

Additional paid-in-capital


921,660



915,746

Retained earnings


336,314



324,342

Accumulated other comprehensive income


18,558



15,715

Total Stockholders' Equity


1,277,022



1,256,292

Total Liabilities and Stockholders' Equity

$

2,461,400


$

2,415,899


 

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






Three Months Ended


Six Months Ended


June 30,


June 30,


2016


2015


2016


2015


(Dollars in thousands)


(Unaudited)

Operating Activities:












Net income

$

26,913


$

19,998


$

36,476


$

28,418

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












operating activities:












Stock-based compensation expense


3,176



1,716



6,163



2,591

Depreciation and amortization


1,294



1,009



2,367



2,092

Inventory impairments


1,600



-



1,600



350

Other-than-temporary impairment of marketable securities


288



-



719



-

Gain on sale of marketable securities


(1,177)



(473)



(262)



(462)

Amortization of discount / premiums on marketable debt securities, net


-



41



-



100

Deferred income tax expense


6,085



11,554



7,873



16,267

Net changes in assets and liabilities:












      Restricted cash


(597)



(684)



(196)



(2,128)

      Trade and other receivables


(10,984)



5,849



(26,235)



(292)

      Mortgage loans held-for-sale


(36,506)



(15,020)



(3,029)



8,664

      Housing completed or under construction


(71,448)



(45,756)



(186,805)



(41,474)

      Land and land under development


54,390



38,193



122,701



36,919

      Prepaid expenses and other assets


(3,886)



(3,607)



(2,975)



(3,118)

      Accounts payable and accrued liabilities


23,751



16,263



19,517



(3,418)

Net cash provided by (used in) operating activities


(7,101)



29,083



(22,086)



44,509













Investing Activities:












Purchases of marketable securities


(9,944)



(14,195)



(15,426)



(34,679)

Maturities of marketable securities


-



-



-



1,510

Sales of marketable securities


30,165



37,203



50,765



50,179

Purchases of property and equipment


(1,173)



(81)



(3,117)



(421)

Net cash provided by investing activities


19,048



22,927



32,222



16,589













Financing Activities:












Advances (payments) on mortgage repurchase facility, net


33,076



9,963



4,686



(10,822)

Dividend payments


(12,252)



(12,212)



(24,504)



(24,425)

Proceeds from exercise of stock options


-



612



-



612

Net cash provided by (used in) financing activities


20,824



(1,637)



(19,818)



(34,635)













Net increase (decrease) in cash and cash equivalents


32,771



50,373



(9,682)



26,463

Cash and cash equivalents:












      Beginning of period


138,535



129,915



180,988



153,825

      End of period

$

171,306


$

180,288


$

171,306


$

180,288

 

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


New Home Deliveries






 Three Months Ended June 30, 



2016


2015


 % Change



 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price



(Dollars in thousands)


Arizona

201


$

60,976


$

303.4


203


$

58,691


$

289.1


(1)%


4%


5%


California

192



117,985



614.5


185



89,544



484.0


4%


32%


27%


Nevada

148



51,834



350.2


134



46,616



347.9


10%


11%


1%


Washington

85



39,236



461.6


59



22,850



387.3


44%


72%


19%


West

626



270,031



431.4


581



217,701



374.7


8%


24%


15%


Colorado

353



172,100



487.5


317



147,925



466.6


11%


16%


4%


Utah

51



17,935



351.7


25



8,968



358.7


104%


100%


(2)%


Mountain

404



190,035



470.4


342



156,893



458.8


18%


21%


3%


Maryland

83



41,639



501.7


57



25,702



450.9


46%


62%


11%


Virginia

75



38,623



515.0


60



28,326



472.1


25%


36%


9%


Florida

84



30,867



367.5


86



33,086



384.7


(2)%


(7)%


(4)%


East

242



111,129



459.2


203



87,114



429.1


19%


28%


7%


Total

1,272


$

571,195


$

449.1


1,126


$

461,708


$

410.0


13%


24%


10%

















































 Six Months Ended June 30, 



2016


2015


 % Change



 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price



(Dollars in thousands)


Arizona

361


$

106,038


$

293.7


353


$

105,577


$

299.1


2%


0%


(2)%


California

317



193,515



610.5


325



158,530



487.8


(2)%


22%


25%


Nevada

255



90,260



354.0


245



87,530



357.3


4%


3%


(1)%


Washington

159



71,593



450.3


115



42,881



372.9


38%


67%


21%


West

1,092



461,406



422.5


1,038



394,518



380.1


5%


17%


11%


Colorado

602



293,675



487.8


562



259,863



462.4


7%


13%


6%


Utah

90



32,510



361.2


56



20,140



359.6


61%


61%


0%


Mountain

692



326,185



471.4


618



280,003



453.1


12%


16%


4%


Maryland

117



57,445



491.0


113



52,858



467.8


4%


9%


5%


Virginia

115



58,777



511.1


119



57,446



482.7


(3)%


2%


6%


Florida

163



61,802



379.2


147



53,892



366.6


11%


15%


3%


East

395



178,024



450.7


379



164,196



433.2


4%


8%


4%


Total

2,179


$

965,615


$

443.1


2,035


$

838,717


$

412.1


7%


15%


8%

 


Net New Orders


 Three Months Ended June 30, 


2016


2015


% 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

236


$

69,393


$

294.0


2.62


250


$

70,350


$

281.4


2.35


(6)%


(1)%


4%


11%

California

308



178,438



579.3


5.33


283



158,462



559.9


4.44


9%


13%


3%


20%

Nevada

230



81,610



354.8


3.48


150



56,254



375.0


4.55


53%


45%


(5)%


(24)%

Washington

118



56,463



478.5


3.42


109



45,769



419.9


2.79


8%


23%


14%


23%

West

892



385,904



432.6


3.59


792



330,835



417.7


3.27


13%


17%


4%


10%

Colorado

413



191,329



463.3


4.02


410



187,483



457.3


3.23


1%


2%


1%


24%

Utah

77



28,070



364.5


3.21


63



22,458



356.5


3.11


22%


25%


2%


3%

Mountain

490



219,399



447.8


3.87


473



209,941



443.8


3.22


4%


5%


1%


20%

Maryland

69



31,750



460.1


1.67


61



28,660



469.8


2.14


13%


11%


(2)%


(22)%

Virginia

73



37,362



511.8


2.95


43



22,318



519.0


1.74


70%


67%


(1)%


70%

Florida

122



48,565



398.1


2.32


112



37,938



338.7


2.45


9%


28%


18%


(5)%

East

264



117,677



445.7


2.23


216



88,916



411.6


2.18


22%


32%


8%


2%

Total

1,646


$

722,980


$

439.2


3.34


1,481


$

629,692


$

425.2


3.03


11%


15%


3%


10%





























 Six Months Ended June 30, 


2016


2015


% 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

459


$

138,015


$

300.7


2.49


475


$

132,673


$

279.3


2.22


(3)%


4%


8%


12%

California

537



322,374



600.3


4.54


512



280,992



548.8


4.15


5%


15%


9%


9%

Nevada

459



163,041



355.2


3.57


377



143,669



381.1


4.83


22%


13%


(7)%


(26)%

Washington

242



116,336



480.7


3.17


221



91,814



415.4


2.90


10%


27%


16%


9%

West

1,697



739,766



435.9


3.34


1,585



649,148



409.6


3.22


7%


14%


6%


4%

Colorado

906



427,248



471.6


4.11


900



418,453



464.9


3.56


1%


2%


1%


15%

Utah

143



52,783



369.1


3.03


129



46,747



362.4


3.27


11%


13%


2%


(7)%

Mountain

1,049



480,031



457.6


3.92


1,029



465,200



452.1


3.52


2%


3%


1%


11%

Maryland

158



74,810



473.5


2.09


128



62,276



486.5


2.33


23%


20%


(3)%


(10)%

Virginia

158



82,055



519.3


3.07


115



57,497



500.0


2.10


37%


43%


4%


46%

Florida

230


97,657


424.6


2.42


217



77,374



356.6


2.51


6%


26%


19%


(4)%

East

546



254,522



466.2


2.46


460



197,147



428.6


2.34


19%


29%


9%


5%

Total

3,292


$

1,474,319


$

447.8


3.30


3,074


$

1,311,495


$

426.6


3.13


7%


12%


5%


5%


* 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


Six Months Ended



June 30,


%


June 30,


%


June 30,


%



2016


2015


Change


2016


2015


Change


2016


2015


Change


Arizona

30


35


(14)%


30


36


(17)%


31


36


(14)%


California

20


20


0%


19


21


(10)%


20


21


(5)%


Nevada

22


11


100%


22


11


100%


21


13


62%


Washington

10


13


(23)%


12


13


(8)%


13


13


0%


West

82


79


4%


83


81


2%


85


83


2%


Colorado

28


39


(28)%


34


42


(19)%


37


42


(12)%


Utah

8


7


14%


8


7


14%


8


7


14%


Mountain

36


46


(22)%


42


49


(14)%


45


49


(8)%


Maryland

13


9


44%


14


10


40%


13


9


44%


Virginia

9


7


29%


8


8


0%


9


9


0%


Florida

19


15


27%


18


15


20%


16


14


14%


East

41


31


32%


40


33


21%


38


32


19%


Total

159


156


2%


165


163


1%


168


164


2%

 

Backlog






June 30,



2016


2015


% Change



Homes


Dollar
Value


Average Price


Homes


Dollar
Value


Average Price


Homes


Dollar
Value


Average Price



(Dollars in thousands)


Arizona

419


$

129,591


$

309.3


353


$

102,062


$

289.1


19%


27%


7%


California

562



360,450



641.4


379



217,806



574.7


48%


65%


12%


Nevada

399



138,604



347.4


287



114,305



398.3


39%


21%


(13)%


Washington

262



127,968



488.4


161



68,564



425.9


63%


87%


15%


West

1,642



756,613



460.8


1,180



502,737



426.0


39%


50%


8%


Colorado

1,126



546,356



485.2


917



428,450



467.2


23%


28%


4%


Utah

161



59,133



367.3


113



39,681



351.2


42%


49%


5%


Mountain

1,287



605,489



470.5


1,030



468,131



454.5


25%


29%


4%


Maryland

131



61,623



470.4


83



42,326



510.0


58%


46%


(8)%


Virginia

144



76,278



529.7


86



44,964



522.8


67%


70%


1%


Florida

241



107,679



446.8


179



71,180



397.7


35%


51%


12%


East

516



245,580



475.9


348



158,470



455.4


48%


55%


5%


Total

3,445


$

1,607,682


$

466.7


2,558


$

1,129,338


$

441.5


35%


42%


6%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data






Homes Completed or Under Construction (WIP lots)








June 30,


%



2016


2015


Change


Unsold:







Completed

100


229


(56)%


Under construction

263


459


(43)%


Total unsold started homes

363


688


(47)%


Sold homes under construction or completed

2,535


1,787


42%


Model homes

289


281


3%


Total homes completed or under construction

3,187


2,756


16%

 

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



June 30, 2016


June 30, 2015





Lots Owned


Lots Optioned


Total


Lots Owned


Lots Optioned


Total


Total % Change


Arizona

1,565


259


1,824


1,972


40


2,012


(9)%


California

1,834


79


1,913


1,625


55


1,680


14%


Nevada

2,087


67


2,154


1,683


420


2,103


2%


Washington

816


35


851


825


129


954


(11)%


West

6,302


440


6,742


6,105


644


6,749


(0)%


Colorado

3,937


1,423


5,360


3,878


821


4,699


14%


Utah

424


-


424


535


-


535


(21)%


Mountain

4,361


1,423


5,784


4,413


821


5,234


11%


Maryland

297


168


465


385


325


710


(35)%


Virginia

498


107


605


588


319


907


(33)%


Florida

1,038


512


1,550


910


160


1,070


45%


East

1,833


787


2,620


1,883


804


2,687


(2)%


Total

12,496


2,650


15,146


12,401


2,269


14,670


3%

 

M.D.C. HOLDINGS, INC.
Other Financial Data






Selling, General and Administrative Expense








Three Months Ended June 30,


Six Months Ended June 30,



2016


2015


Change


2016


2015


Change



(Dollars in thousands)


(Dollars in thousands)


General and administrative expenses

$

31,414


$

26,377


$

5,037


$

62,880


$

52,290


$

10,590


General and administrative expenses



















as a percentage of home sale revenues


5.5%



5.7%



(20) bps



6.5%



6.2%



30 bps





















Marketing expenses

$

14,433


$

13,191


$

1,242


$

26,466


$

25,318


$

1,148


Marketing expenses as a percentage of



















home sale revenues


2.5%



2.9%



(40) bps



2.7%



3.0%



(30) bps





















Commissions expenses

$

18,593


$

15,213


$

3,380


$

31,371


$

27,705


$

3,666


Commissions expenses as a percentage of



















home sale revenues


3.3%



3.3%



0 bps



3.2%



3.3%



(10) bps


Total selling, general and administrative



















expenses

$

64,440


$

54,781


$

9,659


$

120,717


$

105,313


$

15,404


Total selling, general and administrative



















expenses as a percentage of home



















sale revenues


11.3%



11.9%



(60) bps



12.5%



12.6%



(10) bps

 

Capitalized Interest








Three Months Ended


Six Months Ended



June 30,


June 30,



2016


2015


2016


2015



(Dollars in thousands)


Homebuilding interest incurred

$

13,106


$

13,305


$

26,324


$

26,556


Less:  Interest capitalized


(13,106)



(13,305)



(26,324)



(26,556)


Homebuilding interest expensed

$

-


$

-


$

-


$

-















Interest capitalized, beginning of period

$

79,783


$

79,991


$

77,541


$

79,231


Plus: Interest capitalized during period


13,106



13,305



26,324



26,556


Less: Previously capitalized interest included in home and land cost of sales


(15,739)



(14,439)



(26,715)



(26,930)


Interest capitalized, end of period

$

77,150


$

78,857


$

77,150


$

78,857

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2016-second-quarter-results-300308263.html

SOURCE M.D.C. Holdings, Inc.

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