Market Overview

M.D.C. Holdings Announces 2017 Second Quarter Results

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DENVER, Aug. 1, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended June 30, 2017.

2017 Second Quarter Highlights and Comparisons to 2016 Second Quarter

  • Net income up 26% to $33.9 million, or $0.64 per diluted share, from $26.9 million or $0.52 per diluted share*
  • Home sale revenues up 13% to $647.6 million from $571.2 million
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved 40 basis points from 11.3% to 10.9%
  • Dollar value of net new orders of $710.6 million versus $722.5 million
    • Monthly sales absorption pace of  3.41 improved 2%
  • Ending backlog dollar value up 4% to $1.68 billion from $1.61 billion
  • Approved 3,342 lots for purchase in 44 communities
  • Last twelve months return on equity improved 340 basis points to 9.3%

*Per share amount for 2016 second quarter has been adjusted for the 5% stock dividend declared and paid in the 2016 fourth quarter.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are pleased to announce our 2017 second quarter results, highlighted by a 26% year-over-year increase in our net income. For the second consecutive quarter, we realized a year-over-year improvement in our backlog conversion rate, which helped to drive a double-digit increase in home sale revenues and improved operating leverage. The improved backlog conversion rate was achieved based on stabilizing build-to-order construction cycle times, which decreased sequentially for the first time in almost two years."

Mr. Mizel continued, "Income for both our homebuilding and financial services operations increased for the 2017 second quarter, driving a seventh consecutive quarter of improvement to our last twelve months return on equity, which expanded by 340 basis points year-over-year. We achieved this improvement without losing focus on the balance sheet, which features a unique combination of low leverage, carefully managed exposure to homebuilding assets, and liquidity of nearly $1.0 billion."

Mr. Mizel concluded, "With our returns rising, we have focused increasingly on sourcing new communities to drive future growth for our core homebuilding business.  In the second quarter alone, we approved more than 3,300 lots for acquisition, far exceeding the activity for any other quarter in the past three years. Our acquisition activities have maintained a focus on affordability, given the success of our more affordable SeasonsTM product line, which is now selling in four states and accounted for just over 10% of total net new orders in the quarter. Overall, our outlook for the homebuilding industry remains positive, supported by a solid macroeconomic environment and favorable dynamics in the balance between housing supply and demand."

Homebuilding

Home sale revenues for the 2017 second quarter increased 13% to $647.6 million, primarily driven by an 11% increase in deliveries, which was mostly the result of an 8% year-over-year increase in our homes in beginning backlog coupled with a 100 basis point improvement in our backlog conversion rate.

For the 2017 second quarter, our gross margin from home sales percentage was 16.8%, a 40 basis point improvement from 16.4% in the prior year period. Our 2016 second quarter included $1.6 million, or 30 basis points, of inventory impairments while our 2017 second quarter included no such inventory impairments.

Selling, general and administrative expenses for the 2017 second quarter were $70.7 million, up $6.3 million from $64.4 million for the same period in 2016 primarily due to increased compensation-related expenses driven by higher average headcount. Our SG&A rate improved by 40 basis points to 10.9% for the 2017 second quarter from 11.3% in the 2016 second quarter. This decrease in our SG&A rate was primarily the result of an increased ability to leverage our fixed overhead as a result of our increase in home sale revenues.

The dollar value of net new orders for the 2017 second quarter decreased 2% year-over-year to $710.6 million, as a 4% decline in our average active community count was partly offset by a 2% increase in our monthly sales absorption pace.

Our backlog value at the end of the 2017 second quarter was up 4% year-over-year to $1.68 billion. The improvement was due to both a 2% increase in the number of units in backlog and a 2% increase in the average selling price. The increase in the number of units in backlog was driven by strong sales activity during the past twelve months. Price increases implemented in the past twelve months drove the increase in average selling price, but the price increases were slightly offset by the lower selling price of our more affordable homes.

Financial Services

Income before taxes for our financial services operations for the 2017 second quarter was $11.7 million, a $2.7 million increase from $9.1 million in the 2016 second quarter. This improvement was due to increased profitability in our mortgage operations segment as a 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 originated. In addition, we realized higher income before taxes from our other financial services subsidiaries as a result of the increase in new home deliveries.

Income Taxes

For the three months ended June 30, 2017 and 2016, we had effective income tax rates of 34.7% and 33.5%, respectively. The year-over-year increase in our effective tax rate was primarily the result of our estimate of the full year effective tax rate for 2016 including an estimate for energy credits whereas our estimate for the 2017 full year includes no such energy credit as the credit has not been approved by the U.S. Congress.

About MDC

M.D.C. Holdings, Inc. was founded in 1972. MDC's homebuilding subsidiaries, which operate under the name Richmond American Homes, have built and financed the American Dream for more than 190,000 homebuyers since 1977. 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, Northern Colorado, 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. MDC'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. MDC's stock 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, 2017, 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,


2017


2016


2017


2016


(Dollars in thousands, except per share amounts)


(Unaudited)

Homebuilding:












Home sale revenues

$

647,620


$

571,195


$

1,211,099


$

965,615

Land sale revenues


1,351



316



1,598



2,640

Total home and land sale revenues


648,971



571,511



1,212,697



968,255

Home cost of sales


(539,077)



(475,836)



(1,008,019)



(805,862)

Land cost of sales


(1,202)



(216)



(1,413)



(1,879)

Inventory impairments


-



(1,600)



(4,850)



(1,600)

Total cost of sales


(540,279)



(477,652)



(1,014,282)



(809,341)

Gross margin


108,692



93,859



198,415



158,914

Selling, general and administrative expenses


(70,709)



(64,440)



(137,007)



(120,717)

Interest and other income


2,847



2,553



5,174



3,489

Other expense


(666)



(278)



(1,017)



(905)

Other-than-temporary impairment of marketable securities


(1)



(288)



(51)



(719)

Homebuilding pretax income


40,163



31,406



65,514



40,062













Financial Services:












Revenues


19,073



15,823



37,052



26,840

Expenses


(8,500)



(7,543)



(16,398)



(13,784)

Interest and other income


1,238



772



2,217



1,613

Other-than-temporary impairment of marketable securities


(80)



-



(131)



-

Financial services pretax income


11,731



9,052



22,740



14,669













Income before income taxes


51,894



40,458



88,254



54,731

Provision for income taxes


(18,023)



(13,545)



(32,134)



(18,255)

Net income

$

33,871


$

26,913


$

56,120


$

36,476













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


1,944



895



3,930



2,843

Comprehensive income

$

35,815


$

27,808


$

60,050


$

39,319













Earnings per share:












Basic

$

0.65


$

0.52


$

1.09


$

0.71

Diluted

$

0.64


$

0.52


$

1.07


$

0.71













Weighted average common shares outstanding












Basic


51,514,309



51,293,917



51,428,079



51,281,643

Diluted


52,444,123



51,304,829



52,065,968



51,291,359













Dividends declared per share

$

0.25


$

0.24


$

0.50


$

0.48

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets


June 30,


December 31,


2017


2016

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:

(Unaudited)




Cash and cash equivalents

$

314,814


$

259,087

Marketable securities


65,268



59,770

Restricted cash


5,027



3,778

Trade and other receivables


37,747



42,492

Inventories:






Housing completed or under construction


909,911



874,199

Land and land under development


846,825



884,615

Total inventories


1,756,736



1,758,814

Property and equipment, net


27,194



28,041

Deferred tax asset, net


62,446



74,888

Metropolitan district bond securities (related party)


31,864



30,162

Prepaid and other assets


67,009



60,463

Total homebuilding assets


2,368,105



2,317,495

Financial Services:






Cash and cash equivalents


23,162



23,822

Marketable securities


38,666



36,436

Mortgage loans held-for-sale, net


95,283



138,774

Other assets


11,195



12,062

Total financial services assets


168,306



211,094

      Total Assets

$

2,536,411


$

2,528,589

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

48,327


$

42,088

Accrued liabilities


148,199



144,566

Revolving credit facility


15,000



15,000

Senior notes, net


842,232



841,646

Total homebuilding liabilities


1,053,758



1,043,300

Financial Services:






Accounts payable and accrued liabilities


49,873



50,734

Mortgage repurchase facility


69,127



114,485

Total financial services liabilities


119,000



165,219

      Total Liabilities


1,172,758



1,208,519

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; 51,862,230 and 51,485,090 issued and outstanding at June 30, 2017 and December 31, 2016, respectively


519



515

Additional paid-in-capital


992,870



983,532

Retained earnings


344,263



313,952

Accumulated other comprehensive income


26,001



22,071

Total Stockholders' Equity


1,363,653



1,320,070

Total Liabilities and Stockholders' Equity

$

2,536,411


$

2,528,589


 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows



Three Months Ended


Six Months Ended


June 30,


June 30,


2017


2016


2017


2016


(Dollars in thousands)


(Unaudited)

Operating Activities:












Net income

$

33,871


$

26,913


$

56,120


$

36,476

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












Stock-based compensation expense


1,443



3,176



2,038



6,163

Depreciation and amortization


1,376



1,294



2,704



2,367

Inventory impairments


-



1,600



4,850



1,600

Other-than-temporary impairment of marketable securities


81



288



182



719

Gain on sale of marketable securities


(1,197)



(1,177)



(1,758)



(262)

Deferred income tax expense


6,813



6,085



10,033



7,873

Net changes in assets and liabilities:












      Restricted cash


(798)



(597)



(1,249)



(196)

      Trade and other receivables


(1,907)



(10,984)



5,419



(26,235)

      Mortgage loans held-for-sale


2,090



(36,506)



43,491



(3,029)

      Housing completed or under construction


(18,841)



(71,448)



(39,707)



(186,805)

      Land and land under development


8,491



54,390



37,521



122,701

      Prepaid expenses and other assets


(5,195)



(3,886)



(7,602)



(2,975)

      Accounts payable and accrued liabilities


774



23,751



8,845



19,517

Net cash provided by (used in) operating activities


27,001



(7,101)



120,887



(22,086)













Investing Activities:












Purchases of marketable securities


(6,682)



(9,944)



(12,043)



(15,426)

Sales of marketable securities


6,467



30,165



11,450



50,765

Purchases of property and equipment


(242)



(1,173)



(1,364)



(3,117)

Net cash provided by (used in) investing activities


(457)



19,048



(1,957)



32,222













Financing Activities:












Advances (payments) on mortgage repurchase facility, net


(1,415)



33,076



(45,358)



4,686

Dividend payments


(12,912)



(12,252)



(25,809)



(24,504)

Proceeds from exercise of stock options


5,697



-



7,304



-

Net cash used in financing activities


(8,630)



20,824



(63,863)



(19,818)













Net increase (decrease) in cash and cash equivalents


17,914



32,771



55,067



(9,682)

Cash and cash equivalents:












      Beginning of period


320,062



138,535



282,909



180,988

      End of period

$

337,976


$

171,306


$

337,976


$

171,306

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries




 Three Months Ended June 30, 



2017


2016


 % Change



 Homes


 Dollar
Value


 Average

Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

212


$

68,943


$

325.2


201


$

60,976


$

303.4


5%


13%


7%


California

210



131,746



627.4


192



117,985



614.5


9%


12%


2%


Nevada

215



75,687



352.0


148



51,834



350.2


45%


46%


1%


Washington

91



47,382



520.7


85



39,236



461.6


7%


21%


13%


West

728



323,758



444.7


626



270,031



431.4


16%


20%


3%


Colorado

414



203,141



490.7


353



172,100



487.5


17%


18%


1%


Utah

48



19,864



413.8


51



17,935



351.7


(6)%


11%


18%


Mountain

462



223,005



482.7


404



190,035



470.4


14%


17%


3%


Maryland

64



27,760



433.8


83



41,639



501.7


(23)%


(33)%


(14)%


Virginia

53



32,365



610.7


75



38,623



515.0


(29)%


(16)%


19%


Florida

105



40,732



387.9


84



30,867



367.5


25%


32%


6%


East

222



100,857



454.3


242



111,129



459.2


(8)%


(9)%


(1)%


Total

1,412


$

647,620


$

458.7


1,272


$

571,195


$

449.1


11%


13%


2%






 Six Months Ended June 30, 



2017


2016


 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

400


$

124,619


$

311.5


361


$

106,038


$

293.7


11%


18%


6%


California

439



268,229



611.0


317



193,515



610.5


38%


39%


0%


Nevada

402



141,820



352.8


255



90,260



354.0


58%


57%


(0)%


Washington

192



98,170



511.3


159



71,593



450.3


21%


37%


14%


West

1,433



632,838



441.6


1,092



461,406



422.5


31%


37%


5%


Colorado

750



363,328



484.4


602



293,675



487.8


25%


24%


(1)%


Utah

81



32,568



402.1


90



32,510



361.2


(10)%


0%


11%


Mountain

831



395,896



476.4


692



326,185



471.4


20%


21%


1%


Maryland

99



44,363



448.1


117



57,445



491.0


(15)%


(23)%


(9)%


Virginia

103



58,894



571.8


115



58,777



511.1


(10)%


0%


12%


Florida

202



79,108



391.6


163



61,802



379.2


24%


28%


3%


East

404



182,365



451.4


395



178,024



450.7


2%


2%


0%


Total

2,668


$

1,211,099


$

453.9


2,179


$

965,615


$

443.1


22%


25%


2%

 


M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders



 Three Months Ended June 30, 


2017


2016


% 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

230


$

75,049


$

326.3


2.89


236


$

70,699


$

299.6


2.62


(3)%


6%


9%


10%

California

234



143,208



612.0


4.59


308



177,934



577.7


5.33


(24)%


(20)%


6%


(14)%

Nevada

267



92,407



346.1


4.45


230



80,263



349.0


3.48


16%


15%


(1)%


28%

Washington

127



68,876



542.3


4.34


118



55,934



474.0


3.42


8%


23%


14%


27%

West

858



379,540



442.4


3.90


892



384,830



431.4


3.59


(4)%


(1)%


3%


9%

Colorado

458



215,472



470.5


3.59


413



192,543



466.2


4.02


11%


12%


1%


(11)%

Utah

67



29,046



433.5


3.19


77



28,057



364.4


3.21


(13)%


4%


19%


(1)%

Mountain

525



244,518



465.7


3.54


490



220,600



450.2


3.87


7%


11%


3%


(9)%

Maryland

32



14,819



463.1


1.19


69



31,918



462.6


1.67


(54)%


(54)%


0%


(29)%

Virginia

63



32,790



520.5


4.20


73



36,892



505.4


2.95


(14)%


(11)%


3%


42%

Florida

120



38,940



324.5


2.05


122



48,236



395.4


2.32


(2)%


(19)%


(18)%


(12)%

East

215



86,549



402.6


2.14


264



117,046



443.4


2.23


(19)%


(26)%


(9)%


(4)%

Total

1,598


$

710,607


$

444.7


3.41


1,646


$

722,476


$

438.9


3.34


(3)%


(2)%


1%


2%




 Six Months Ended June 30, 


2017


2016


% 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

446


$

143,119


$

320.9


2.86


459


$

139,785


$

304.5


2.49


(3)%


2%


5%


15%

California

477



298,621



626.0


4.31


537



321,162



598.1


4.54


(11)%


(7)%


5%


(5)%

Nevada

562



192,898



343.2


4.65


459



160,074



348.7


3.57


22%


21%


(2)%


30%

Washington

266



144,368



542.7


4.14


242



116,073



479.6


3.17


10%


24%


13%


31%

West

1,751



779,006



444.9


3.88


1,697



737,094



434.4


3.34


3%


6%


2%


16%

Colorado

959



456,162



475.7


3.93


906



428,747



473.2


4.11


6%


6%


1%


(4)%

Utah

123



52,616



427.8


2.52


143



52,629



368.0


3.03


(14)%


(0)%


16%


(17)%

Mountain

1,082



508,778



470.2


3.69


1,049



481,376



458.9


3.92


3%


6%


2%


(6)%

Maryland

83



37,189



448.1


1.49


158



74,068



468.8


2.09


(47)%


(50)%


(4)%


(29)%

Virginia

127



67,229



529.4


3.61


158



81,036



512.9


3.07


(20)%


(17)%


3%


18%

Florida

251



91,117



363.0


2.20


230



96,279



418.6


2.42


9%


(5)%


(13)%


(9)%

East

461



195,535



424.2


2.25


546



251,383



460.4


2.46


(16)%


(22)%


(8)%


(9)%

Total

3,294


$

1,483,319


$

450.3


3.47


3,292


$

1,469,853


$

446.5


3.30


0%


1%


1%


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,


%



2017


2016


Change


2017


2016


Change


2017


2016


Change


Arizona

26


30


(13)%


27


30


(10)%


26


31


(16)%


California

17


20


(15)%


17


19


(11)%


18


20


(10)%


Nevada

18


22


(18)%


20


22


(9)%


20


21


(5)%


Washington

9


10


(10)%


10


12


(17)%


11


13


(15)%


West

70


82


(15)%


74


83


(11)%


75


85


(12)%


Colorado

44


28


57%


43


34


26%


41


37


11%


Utah

6


8


(25)%


7


8


(13)%


8


8


0%


Mountain

50


36


39%


50


42


19%


49


45


9%


Maryland

9


13


(31)%


9


14


(36)%


9


13


(31)%


Virginia

5


9


(44)%


5


8


(38)%


6


9


(33)%


Florida

19


19


0%


20


18


11%


19


16


19%


East

33


41


(20)%


34


40


(15)%


34


38


(11)%


Total

153


159


(4)%


158


165


(4)%


158


168


(6)%

 

Backlog



At June 30,



2017


2016


% Change



Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price



(Dollars in thousands)


Arizona

368


$

125,097


$

339.9


419


$

129,591


$

309.3


(12)%


(3)%


10%


California

519



347,822



670.2


562



360,450



641.4


(8)%


(4)%


4%


Nevada

467



160,349



343.4


399



138,604



347.4


17%


16%


(1)%


Washington

311



169,045



543.6


262



127,968



488.4


19%


32%


11%


West

1,665



802,313



481.9


1,642



756,613



460.8


1%


6%


5%


Colorado

1,173



571,956



487.6


1,126



546,356



485.2


4%


5%


0%


Utah

146



62,225



426.2


161



59,133



367.3


(9)%


5%


16%


Mountain

1,319



634,181



480.8


1,287



605,489



470.5


2%


5%


2%


Maryland

76



38,329



504.3


131



61,623



470.4


(42)%


(38)%


7%


Virginia

135



70,384



521.4


144



76,278



529.7


(6)%


(8)%


(2)%


Florida

315



132,628



421.0


241



107,679



446.8


31%


23%


(6)%


East

526



241,341



458.8


516



245,580



475.9


2%


(2)%


(4)%


Total

3,510


$

1,677,835


$

478.0


3,445


$

1,607,682


$

466.7


2%


4%


2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)




June 30,


%



2017


2016


Change


Unsold:







Completed

77


100


(23)%


Under construction

153


263


(42)%


Total unsold started homes

230


363


(37)%


Sold homes under construction or completed

2,547


2,535


0%


Model homes under construction or completed

316


289


9%


Total homes completed or under construction

3,093


3,187


(3)%

 

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




June 30, 2017


June 30, 2016





Lots Owned


Lots Optioned


Total


Lots Owned


Lots Optioned


Total


Total % Change


Arizona

1,794


553


2,347


1,565


259


1,824


29%


California

1,491


502


1,993


1,834


79


1,913


4%


Nevada

1,709


907


2,616


2,087


67


2,154


21%


Washington

671


49


720


816


35


851


(15)%


West

5,665


2,011


7,676


6,302


440


6,742


14%


Colorado

4,684


1,934


6,618


3,937


1,423


5,360


23%


Utah

302


123


425


424


-


424


0%


Mountain

4,986


2,057


7,043


4,361


1,423


5,784


22%


Maryland

142


69


211


297


168


465


(55)%


Virginia

283


37


320


498


107


605


(47)%


Florida

928


916


1,844


1,038


512


1,550


19%


East

1,353


1,022


2,375


1,833


787


2,620


(9)%


Total

12,004


5,090


17,094


12,496


2,650


15,146


13%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expense




Three Months Ended June 30,


Six Months Ended June 30,



2017


2016


Change


2017


2016


Change



(Dollars in thousands)


General and administrative expenses

$

32,292


$

31,414


$

878


$

64,661


$

62,880


$

1,781


General and administrative expense as a percentage of home sale revenues


5.0%



5.5%



(50) bps



5.3%



6.5%



(120) bps





















Marketing expenses

$

16,976


$

14,433


$

2,543


$

32,100


$

26,466


$

5,634


Marketing expenses as a percentage of home sale revenues


2.6%



2.5%



10 bps



2.7%



2.7%



0 bps





















Commissions expenses

$

21,441


$

18,593


$

2,848


$

40,246


$

31,371


$

8,875


Commissions expenses as a percentage of home sale revenues


3.3%



3.3%



0 bps



3.3%



3.2%



10 bps





















Total selling, general and administrative expenses

$

70,709


$

64,440


$

6,269


$

137,007


$

120,717


$

16,290


Total selling, general and administrative expenses as a percentage of home sale revenues


10.9%



11.3%



(40) bps



11.3%



12.5%



(120) bps

 

Capitalized Interest




Three Months Ended


Six Months Ended



June 30,


June 30,



2017


2016


2017


2016



(Dollars in thousands)


Homebuilding interest incurred

$

13,194


$

13,106


$

26,382


$

26,324


Less:  Interest capitalized


(13,194)



(13,106)



(26,382)



(26,324)


Homebuilding interest expensed

$

-


$

-


$

-


$

-















Interest capitalized, beginning of period

$

66,076


$

79,783


$

68,085


$

77,541


Plus: Interest capitalized during period


13,194



13,106



26,382



26,324


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


(17,179)



(15,739)



(32,376)



(26,715)


Interest capitalized, end of period

$

62,091


$

77,150


$

62,091


$

77,150

 

View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-second-quarter-results-300497075.html

SOURCE M.D.C. Holdings, Inc.

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