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

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DENVER, Nov. 1, 2016 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2016.

2016 Third Quarter Highlights and Comparisons to 2015 Third Quarter

  • Net income up 78% to $26.4 million, or $0.54 per share from $14.8 million or $0.30 per share
  • Home sale revenues up 27% to $575.7 million from $454.7 million
    • Average sales price up 6% to $445,300
    • Homes delivered up 20% to 1,293
  • Selling, general and administrative expenses as a percentage of home sale revenues improved 180 basis points from 12.6% to 10.8%
  • Dollar value of net new orders up 17% to $570.3 million from $489.0 million
    • Net new orders up 17% to 1,296
  • Ending backlog dollar value up 37% to $1.61 billion from $1.18 billion
    • Ending backlog units up 33% to 3,448
  • Industry-leading dividend payment continued at $0.25 per share

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with our 2016 third quarter results, as our net income increased by 78% year-over-year. Even though our cycle times continued to increase during the quarter based on limited subcontractor availability in many markets, we still increased our home sale revenues by 27% over the prior year, resulting in better leverage of our overhead costs and higher return on equity than a year ago."

Mr. Mizel concluded, "The 2016 third quarter was our tenth consecutive quarter of year-over-year growth in net new orders, and we achieved our highest third quarter average monthly sales absorption pace in over a decade. Our order results included an increased contribution from our new, more affordable collection of home plans, which are still in the early stages of rollout. With a simpler design, these new plans should ultimately have a positive impact on our overall construction cycle times, which remain a key focus area for the Company as we close out the year."

Homebuilding

Home sale revenues for the 2016 third quarter increased 27% to $575.7 million, primarily driven by a 20% increase in deliveries, which was mostly the result of a 35% year-over-year increase of our homes in beginning backlog, coupled with a 6% increase in average selling price of homes closed. 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 third quarter, our gross margin from home sales declined 90 basis points to 15.5% from the same period in 2015 primarily due to increased land and construction costs in certain of our markets and warranty adjustments totaling $1.8 million that resulted from higher than expected warranty related spending. Gross margin for the 2016 third quarter included $4.7 million of inventory impairments, compared with $4.4 million for the same quarter in the prior year.

Selling, general and administrative ("SG&A") expenses for the 2016 third quarter were $61.9 million, up $4.5 million from $57.4 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenue ("SG&A rate") improved by 180 basis points to 10.8% for the 2016 third quarter from 12.6% in the 2015 third quarter. This decrease in our SG&A rate was primarily the result of a 27% increase in home sale revenues.

The dollar value of net new orders for the 2016 third quarter increased 17% year-over-year to $570.3 million. The improvement was the result of a 17% increase in the number of homes sold, driven primarily by our monthly sales absorption rate being up 15% year-over-year. Our average selling price of net new orders was flat from the same period in the prior year, as price increases were offset by a shift in mix to lower price communities, in part related to the introduction of our more affordable product earlier this year.

Our backlog value at the end of the 2016 third quarter was up 37% year-over-year to $1.61 billion. The improvement was due mostly to a 33% increase in the number of units in backlog, which is primarily the result of (1) an increase in net new order activity over the last twelve months for most of our markets, (2) a higher percentage 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 in most of our larger markets.

Financial Services

Income before taxes for our financial services operations for the 2016 third quarter was $10.4 million, a $2.1 million increase from $8.3 million in the 2015 third quarter. This improvement was primarily the result of (1) year-over-year increases in 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 September 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


Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(Dollars in thousands, except per share amounts)


(Unaudited)

Homebuilding:












Home sale revenues

$

575,722


$

454,740


$

1,541,337


$

1,293,457

Land sale revenues


2,290



906



4,930



1,816

Total home and land sale revenues


578,012



455,646



1,546,267



1,295,273

Home cost of sales


(481,511)



(375,948)



(1,287,373)



(1,079,609)

Land cost of sales


(2,318)



(819)



(4,197)



(1,944)

Inventory impairments


(4,700)



(4,351)



(6,300)



(4,701)

Total cost of sales


(488,529)



(381,118)



(1,297,870)



(1,086,254)

Gross margin


89,483



74,528



248,397



209,019

Selling, general and administrative expenses


(61,904)



(57,444)



(182,621)



(162,757)

Interest and other income


1,869



838



5,358



5,412

Other expense


(1,558)



(350)



(2,463)



(2,539)

Other-than-temporary impairment of marketable securities


(215)



(2,176)



(934)



(2,176)

Homebuilding pretax income


27,675



15,396



67,737



46,959













Financial Services:












Revenues


17,408



12,841



44,248



34,852

Expenses


(7,955)



(5,464)



(21,739)



(15,830)

Interest and other income


1,035



885



2,648



2,885

Other-than-temporary impairment of marketable securities


(111)



-



(111)



-

Financial services pretax income


10,377



8,262



25,046



21,907













Income before income taxes


38,052



23,658



92,783



68,866

Provision for income taxes


(11,693)



(8,880)



(29,948)



(25,670)

Net income

$

26,359


$

14,778


$

62,835


$

43,196













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













1,028



(226)



3,871



722

Comprehensive income

$

27,387


$

14,552


$

66,706


$

43,918













Earnings per share:












Basic

$

0.54


$

0.30


$

1.28


$

0.88

Diluted

$

0.54


$

0.30


$

1.28


$

0.88













Weighted average common shares outstanding












Basic


48,854,412



48,785,973



48,844,613



48,756,265

Diluted


49,009,949



49,070,291



48,855,014



48,982,975













Dividends declared per share

$

0.25


$

0.25


$

0.75


$

0.75

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets



September 30,


December 31,


2016


2015

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:

(Unaudited)




Cash and cash equivalents

$

129,278


$

144,342

Marketable securities


57,116



92,387

Restricted cash


4,621



3,750

Trade and other receivables


43,082



23,314

Inventories:






Housing completed or under construction


976,372



747,036

Land and land under development


870,733



1,016,926

Total inventories


1,847,105



1,763,962

Property and equipment, net


28,749



28,226

Deferred tax asset, net


85,128



99,107

Metropolitan district bond securities (related party)


29,132



25,911

Prepaid and other assets


66,195



65,394

Total homebuilding assets


2,290,406



2,246,393

Financial Services:






Cash and cash equivalents


34,180



36,646

Marketable securities


22,105



11,307

Mortgage loans held-for-sale, net


117,989



115,670

Other assets


9,590



5,883

Total financial services assets


183,864



169,506

      Total Assets

$

2,474,270


$

2,415,899

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

54,117


$

40,472

Accrued liabilities


122,227



122,886

Revolving credit facility


15,000



15,000

Senior notes, net


841,359



840,524

Total homebuilding liabilities


1,032,703



1,018,882

Financial Services:






Accounts payable and accrued liabilities


56,934



52,114

Mortgage repurchase facility


92,011



88,611

Total financial services liabilities


148,945



140,725

      Total Liabilities


1,181,648



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; 49,033,981 and 48,888,424 issued and outstanding at September 30, 2016 and December 31, 2015, respectively


490



489

Additional paid-in-capital


922,132



915,746

Retained earnings


350,414



324,342

Accumulated other comprehensive income


19,586



15,715

Total Stockholders' Equity


1,292,622



1,256,292

Total Liabilities and Stockholders' Equity

$

2,474,270


$

2,415,899

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows



Three Months Ended


Nine Months Ended


September 30,


September 30,


2016


2015


2016


2015


(Dollars in thousands)


(Unaudited)

Operating Activities:












Net income

$

26,359


$

14,778


$

62,835


$

43,196

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












operating activities:












Stock-based compensation expense


473



3,998



6,636



6,589

Depreciation and amortization


1,335



992



3,702



3,084

Inventory impairments


4,700



4,351



6,300



4,701

Other-than-temporary impairment of marketable securities


326



2,176



1,045



2,176

Loss (gain) on sale of marketable securities


(649)



588



(911)



126

Amortization of discount / premiums on marketable debt securities, net


-



-



-



100

Deferred income tax expense


3,484



8,515



11,357



24,782

Net changes in assets and liabilities:












      Restricted cash


(675)



144



(871)



(1,984)

      Trade and other receivables


4,556



(283)



(21,679)



(575)

      Mortgage loans held-for-sale


710



11,095



(2,319)



19,759

      Housing completed or under construction


(42,934)



(48,367)



(229,739)



(89,841)

      Land and land under development


18,430



(62,724)



141,131



(25,805)

      Other assets


(1,598)



(4,954)



(4,573)



(8,072)

      Accounts payable and accrued liabilities


(1,334)



(1,304)



18,183



(4,722)

Net cash provided by (used in) operating activities


13,183



(70,995)



(8,903)



(26,486)













Investing Activities:












Purchases of marketable securities


(12,846)



(12,207)



(28,272)



(46,886)

Maturities of marketable securities


-



-



-



1,510

Sales of marketable securities


6,108



44,731



56,873



94,910

Purchases of property and equipment


(748)



(409)



(3,865)



(830)

Net cash provided by (used in) investing activities


(7,486)



32,115



24,736



48,704













Financing Activities:












Advances (payments) on mortgage repurchase facility, net


(1,286)



(6,245)



3,400



(17,067)

Dividend payments


(12,259)



(12,221)



(36,763)



(36,646)

Proceeds from exercise of stock options


-



53



-



665

Net cash used in financing activities


(13,545)



(18,413)



(33,363)



(53,048)













Net decrease in cash and cash equivalents


(7,848)



(57,293)



(17,530)



(30,830)

Cash and cash equivalents:












      Beginning of period


171,306



180,288



180,988



153,825

      End of period

$

163,458


$

122,995


$

163,458


$

122,995

 


M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries




 Three Months Ended September 30, 



2016


2015


 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

221


$

64,314


$

291.0


190


$

54,434


$

286.5


16%


18%


2%


California

195



125,601



644.1


161



84,877



527.2


21%


48%


22%


Nevada

177



59,601



336.7


159



60,258



379.0


11%


(1)%


(11)%


Washington

75



35,072



467.6


75



30,174



402.3


0%


16%


16%


West

668



284,588



426.0


585



229,743



392.7


14%


24%


8%


Colorado

343



169,859



495.2


281



132,916



473.0


22%


28%


5%


Utah

55



20,728



376.9


39



13,460



345.1


41%


54%


9%


Mountain

398



190,587



478.9


320



146,376



457.4


24%


30%


5%


Maryland

61



27,297



447.5


55



26,122



474.9


11%


4%


(6)%


Virginia

78



39,795



510.2


51



25,309



496.3


53%


57%


3%


Florida

88



33,455



380.2


69



27,190



394.1


28%


23%


(4)%


East

227



100,547



442.9


175



78,621



449.3


30%


28%


(1)%


Total

1,293


$

575,722


$

445.3


1,080


$

454,740


$

421.1


20%


27%


6%

















































 Nine Months Ended September 30, 



2016


2015


 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

582


$

170,352


$

292.7


543


$

160,011


$

294.7


7%


6%


(1)%


California

512



319,116



623.3


486



243,407



500.8


5%


31%


24%


Nevada

432



149,861



346.9


404



147,788



365.8


7%


1%


(5)%


Washington

234



106,665



455.8


190



73,055



384.5


23%


46%


19%


West

1,760



745,994



423.9


1,623



624,261



384.6


8%


20%


10%


Colorado

945



463,534



490.5


843



392,779



465.9


12%


18%


5%


Utah

145



53,238



367.2


95



33,600



353.7


53%


58%


4%


Mountain

1,090



516,772



474.1


938



426,379



454.6


16%


21%


4%


Maryland

178



84,742



476.1


168



78,980



470.1


6%


7%


1%


Virginia

193



98,572



510.7


170



82,755



486.8


14%


19%


5%


Florida

251



95,257



379.5


216


81,082


375.4


16%


17%


1%


East

622



278,571



447.9


554



242,817



438.3


12%


15%


2%


Total

3,472


$

1,541,337


$

443.9


3,115


$

1,293,457


$

415.2


11%


19%


7%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders



 Three Months Ended September 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

225


$

68,611


$

304.9


2.56


214


$

60,274


$

281.7


2.15


5%


14%


8%


19%

California

260



154,113



592.7


4.08


184



118,943



646.4


3.07


41%


30%


(8)%


33%

Nevada

175



59,068



337.5


2.75


110



40,196



365.4


2.99


59%


47%


(8)%


(8)%

Washington

83



38,400



462.7


2.26


93



40,260



432.9


2.25


(11)%


(5)%


7%


0%

West

743



320,192



430.9


2.95


601



259,673



432.1


2.53


24%


23%


(0)%


17%

Colorado

321



147,984



461.0


3.82


273



129,221



473.3


2.39


18%


15%


(3)%


60%

Utah

35



14,979



428.0


1.41


48



17,282



360.0


2.21


(27)%


(13)%


19%


(36)%

Mountain

356



162,963



457.8


3.27


321



146,503



456.4


2.36


11%


11%


0%


39%

Maryland

50



23,125



462.5


1.42


53



26,667



503.2


1.81


(6)%


(13)%


(8)%


(22)%

Virginia

52



27,270



524.4


2.04


48



22,812



475.3


2.21


8%


20%


10%


(8)%

Florida

95



36,711



386.4


1.74


86



33,393



388.3


1.98


10%


10%


(0)%


(12)%

East

197



87,106



442.2


1.71


187



82,872



443.2


1.98


5%


5%


(0)%


(14)%

Total

1,296


$

570,261


$

440.0


2.72


1,109


$

489,048


$

441.0


2.37


17%


17%


(0)%


15%





























 Nine Months Ended September 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

684


$

209,013


$

305.6


2.52


689


$

195,546


$

283.8


2.20


(1)%


7%


8%


15%

California

797



479,030



601.0


4.36


696



402,701



578.6


3.79


15%


19%


4%


15%

Nevada

634



224,168



353.6


3.31


487



185,313



380.5


4.19


30%


21%


(7)%


(21)%

Washington

325



156,962



483.0


2.82


314



133,197



424.2


2.66


4%


18%


14%


6%

West

2,440



1,069,173



438.2


3.20


2,186



916,757



419.4


2.99


12%


17%


4%


7%

Colorado

1,227



585,152



476.9


4.00


1,173



557,372



475.2


3.19


5%


5%


0%


25%

Utah

178



68,199



383.1


2.47


177



64,426



364.0


2.89


1%


6%


5%


(15)%

Mountain

1,405



653,351



465.0


3.71


1,350



621,798



460.6


3.15


4%


5%


1%


18%

Maryland

208



98,703



474.5


1.89


181



89,213



492.9


2.14


15%


11%


(4)%


(12)%

Virginia

210



110,047



524.0


2.75


163



80,588



494.4


2.11


29%


37%


6%


30%

Florida

325


136,220


419.1


2.19


303


112,895


372.6


2.34


7%


21%


12%


(6)%

East

743



344,970



464.3


2.22


647



282,696



436.9


2.22


15%


22%


6%


0%

Total

4,588


$

2,067,494


$

450.6


3.11


4,183


$

1,821,251


$

435.4


2.88


10%


14%


3%


8%


* 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,


%



2016


2015


Change


2016


2015


Change


2016


2015


Change


Arizona

30


31


(3)%


29


33


(12)%


30


35


(14)%


California

21


19


11%


21


20


5%


20


20


0%


Nevada

20


15


33%


21


12


75%


21


13


62%


Washington

14


14


0%


12


14


(14)%


13


13


0%


West

85


79


8%


83


79


5%


84


81


4%


Colorado

28


37


(24)%


28


38


(26)%


34


41


(17)%


Utah

9


8


13%


8


7


14%


8


7


14%


Mountain

37


45


(18)%


36


45


(20)%


42


48


(13)%


Maryland

11


10


10%


12


10


20%


12


9


33%


Virginia

8


8


0%


9


7


29%


9


9


0%


Florida

18


15


20%


18


15


20%


17


14


21%


East

37


33


12%


39


32


22%


38


32


19%


Total

159


157


1%


158


156


1%


164


161


2%

 

Backlog




September 30,



2016


2015


% Change



Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price



(Dollars in thousands)


Arizona

423


$

132,929


$

314.3


377


$

109,735


$

291.1


12%


21%


8%


California

627



389,622



621.4


402



253,814



631.4


56%


54%


(2)%


Nevada

397



139,731



352.0


238



94,815



398.4


67%


47%


(12)%


Washington

270



133,367



494.0


179



79,175



442.3


51%


68%


12%


West

1,717



795,649



463.4


1,196



537,539



449.4


44%


48%


3%


Colorado

1,104



530,662



480.7


909



434,371



477.9


21%


22%


1%


Utah

141



53,180



377.2


122



43,551



357.0


16%


22%


6%


Mountain

1,245



583,842



468.9


1,031



477,922



463.6


21%


22%


1%


Maryland

120



56,837



473.6


81



42,999



530.9


48%


32%


(11)%


Virginia

118



64,228



544.3


83



42,494



512.0


42%


51%


6%


Florida

248



111,499



449.6


196



78,900



402.6


27%


41%


12%


East

486



232,564



478.5


360



164,393



456.6


35%


41%


5%


Total

3,448


$

1,612,055


$

467.5


2,587


$

1,179,854


$

456.1


33%


37%


2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)




September 30,


%



2016


2015


Change


Unsold:







Completed

81


221


(63)%


Under construction

298


403


(26)%


Total unsold started homes

379


624


(39)%


Sold homes under construction or completed

2,626


1,947


35%


Model homes

293


273


7%


Total homes completed or under construction

3,298


2,844


16%

 

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




September 30, 2016


September 30, 2015





Lots
Owned


Lots
Optioned


Total


Lots
Owned


Lots
Optioned


Total


Total %
Change


Arizona

1,515


269


1,784


1,778


205


1,983


(10)%


California

1,753


75


1,828


1,726


222


1,948


(6)%


Nevada

2,051


200


2,251


1,938


439


2,377


(5)%


Washington

853


-


853


842


37


879


(3)%


West

6,172


544


6,716


6,284


903


7,187


(7)%


Colorado

4,051


1,347


5,398


4,208


1,036


5,244


3%


Utah

380


-


380


496


-


496


(23)%


Mountain

4,431


1,347


5,778


4,704


1,036


5,740


1%


Maryland

261


143


404


383


304


687


(41)%


Virginia

429


15


444


693


163


856


(48)%


Florida

962


455


1,417


1,014


293


1,307


8%


East

1,652


613


2,265


2,090


760


2,850


(21)%


Total

12,255


2,504


14,759


13,078


2,699


15,777


(6)%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expense




Three Months Ended September 30,


Nine Months Ended September 30,



2016


2015


Change


2016


2015


Change



(Dollars in thousands)


General and administrative expenses

$

27,758


$

29,694


$

(1,936)


$

90,638


$

81,984


$

8,654


General and administrative expenses



















as a percentage of home sale revenues


4.8%



6.5%



(170) bps



5.9%



6.3%



(40) bps





















Marketing expenses

$

15,262


$

12,548


$

2,714


$

41,728


$

37,866


$

3,862


Marketing expenses as a percentage of



















home sale revenues


2.7%



2.8%



(10) bps



2.7%



2.9%



(20) bps





















Commissions expenses

$

18,884


$

15,202


$

3,682


$

50,255


$

42,907


$

7,348


Commissions expenses as a percentage of



















home sale revenues


3.3%



3.3%



0 bps



3.3%



3.3%



0 bps





















Total selling, general and administrative



















expenses

$

61,904


$

57,444


$

4,460


$

182,621


$

162,757


$

19,864


Total selling, general and administrative



















expenses as a percentage of home



















sale revenues (SG&A Rate)


10.8%



12.6%



(180) bps



11.8%



12.6%



(80) bps

 

Capitalized Interest




Three Months Ended


Nine Months Ended



September 30,


September 30,



2016


2015


2016


2015



(Dollars in thousands)


Homebuilding interest incurred

$

13,187


$

13,265


$

39,511


$

39,821


Less:  Interest capitalized


(13,187)



(13,265)



(39,511)



(39,821)


Homebuilding interest expensed

$

-


$

-


$

-


$

-















Interest capitalized, beginning of period

$

77,150


$

78,857


$

77,541


$

79,231


Plus: Interest capitalized during period


13,187



13,265



39,511



39,821


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


(15,922)



(12,878)



(42,637)



(39,808)


Interest capitalized, end of period

$

74,415


$

79,244


$

74,415


$

79,244

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2016-third-quarter-results-300354627.html

SOURCE M.D.C. Holdings, Inc.

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