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

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DENVER, Nov. 2, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2017.

2017 Third Quarter Highlights and Comparisons to 2016 Third Quarter

  • Net income up 132% to $61.2 million, or $1.16 per diluted share, from $26.4 million or $0.51 per diluted share*
    • Pretax gain of $52.2 million on investment sales
  • Home sale revenues up 2% to $584.9 million from $575.7 million
  • Gross margin from home sales percentage up 80 basis points from 15.5% to 16.3%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") of 11.8% versus 10.8%
  • Dollar value of net new orders of $596.7 million, up 6% from $563.9 million
  • Ending backlog dollar value up 6% to $1.71 billion from $1.61 billion
  • Lot purchase approvals up 83% to 2,489 lots in 37 communities
  • Last twelve months return on equity improved 500 basis points to 11.8%
  • Increased homebuilding line of credit from $550 million to $700 million
  • Announced entry into Portland market
  • Added $150 million to our senior notes due January 2043 subsequent to quarter end

*Per share amount for 2016 third 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, "Despite the challenges presented to our Florida operations by Hurricane Irma and our Colorado operations by the Weyerhaeuser joist issue, we increased revenues, net order value and ending backlog value year-over-year for the 2017 third quarter. In addition, we recognized significant gains from the opportunistic sale of several investments during the quarter, which drove a 132% increase in our net income."

Mr. Mizel continued, "Solid economic fundamentals continue to support the homebuilding industry, driving robust demand for new homes, especially in the first-time homebuyer segment. To meet this growing demand, we have taken a number of steps to grow community count. First, we substantially increased our approvals of future lots for purchase. Through the first nine months of 2017, we approved the purchase of over 7,800 lots, more than double the approvals from the same period a year ago. An increasing percentage of our lot approvals are focused on the first-time homebuyer segment, which has responded favorably to one of our newest product lines, the Seasons™ collection."

Mr. Mizel continued, "Also, we announced in September that we will commence operations in the greater Portland area, giving us additional exposure to the Pacific Northwest, where we have experienced solid results."

Mr. Mizel concluded, "Lastly, we expanded the capacity under our line of credit at the end of the third quarter from $550 million to $700 million and extended its maturity by two years to December 2022. In addition, at the start of the fourth quarter, we added $150 million to our senior notes due January 2043. We ended our 2017 third quarter with liquidity of almost $1.1 billion, an increase of 40% over the prior year. The higher liquidity provides us with additional resources to fund our increased lot approval activity, providing us the foundation for community count growth in 2018."

Homebuilding

Home sale revenues for the 2017 third quarter increased 2% to $584.9 million, primarily driven by a 2% improvement in deliveries, which was mostly the result of a 2% year-over-year increase in our homes in beginning backlog. However, deliveries were negatively impacted by the Weyerhaeuser joist issue in Colorado and Hurricane Irma in Florida. The deliveries of approximately 115 homes that were previously scheduled to close during the 2017 third quarter were delayed to later quarters as a result of these issues.

For the 2017 third quarter, our gross margin from home sales percentage was 16.3%, an 80 basis point improvement from 15.5% in the prior year period. During the 2017 and 2016 third quarters, we recorded inventory impairments of $4.5 million and $4.7 million, respectively. The impairments recorded for each period negatively impacted gross margin by 80 basis points. Additionally, during the 2016 third quarter, we recorded adjustments of $1.8 million (a 30 basis point negative impact to gross margins) to increase our warranty accrual while for our 2017 third quarter, we recorded an adjustment to decrease our warranty accrual by $0.4 million (a 10 basis point positive impact to gross margins).

Our interest and other income for the three months ended September 30, 2017 and 2016 was $54.5 million and $1.9 million, respectively. The year-over-year increase was driven by a $52.2 million gain from investment sales in the 2017 third quarter. The majority of the gain relates to the sale of the Company's metropolitan district bond securities, which we held for the past ten years and relate to a master-planned community being developed by one of our homebuilding subsidiaries.

Selling, general and administrative expenses for the 2017 third quarter were $69.1 million, up $7.2 million from $61.9 million for the same period in 2016. As we continued to plan for future growth of our business, we increased headcount, resulting in higher compensation-related expenses. Our SG&A rate was up 100 basis points year-over-year to 11.8%. However, absent the Weyerhaeuser joist issue and Hurricane Irma issues discussed above, we estimate that our SG&A rate might have increased by only 40 basis points year-over-year.  

The dollar value of net new orders for the 2017 third quarter increased 6% year-over-year to $596.7 million, as an 8% increase in the average selling price of net new orders was slightly offset by a 2% decline in the number of net new orders. The year-over-year change in our average selling price of net new orders was driven by price increases in existing communities due to robust demand and the mix of sales between markets, partially offset by an increase in the percentage of sales coming from our more affordable product lines. The slight decline in the number of net new orders was caused by a 4% decrease in our average active community count, partially offset by a 2% increase in our monthly sales absorption rate.

Our backlog value at the end of the 2017 third quarter was up 6% year-over-year to $1.71 billion, due mostly to a 6% increase in the average selling price of homes in backlog. The change in average selling price is consistent with that explained for our net new orders.

Financial Services

Income before taxes for our financial services operations for the 2017 third quarter was $9.5 million, a $0.9 million decline from $10.4 million in the 2016 third quarter. The change in average selling price is consistent with the explanation provided above for our net new orders.

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, 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, Seattle and Portland. 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 any 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, 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


Nine Months Ended


September 30,


September 30,


2017


2016


2017


2016


(Dollars in thousands, except per share amounts)


(Unaudited)

Homebuilding:












Home sale revenues

$

584,947


$

575,722


$

1,796,046


$

1,541,337

Land sale revenues


1,340



2,290



2,938



4,930

Total home and land sale revenues


586,287



578,012



1,798,984



1,546,267

Home cost of sales


(485,147)



(481,511)



(1,493,166)



(1,287,373)

Land cost of sales


(1,259)



(2,318)



(2,672)



(4,197)

Inventory impairments


(4,540)



(4,700)



(9,390)



(6,300)

Total cost of sales


(490,946)



(488,529)



(1,505,228)



(1,297,870)

Gross margin


95,341



89,483



293,756



248,397

Selling, general and administrative expenses


(69,102)



(61,904)



(206,109)



(182,621)

Interest and other income


54,548



1,869



59,722



5,358

Other expense


(618)



(1,558)



(1,635)



(2,463)

Other-than-temporary impairment of marketable securities


-



(215)



(51)



(934)

Homebuilding pretax income


80,169



27,675



145,683



67,737













Financial Services:












Revenues


17,464



17,408



54,516



44,248

Expenses


(8,849)



(7,955)



(25,247)



(21,739)

Interest and other income


925



1,035



3,142



2,648

Other-than-temporary impairment of marketable securities


(29)



(111)



(160)



(111)

Financial services pretax income


9,511



10,377



32,251



25,046













Income before income taxes


89,680



38,052



177,934



92,783

Provision for income taxes


(28,517)



(11,693)



(60,651)



(29,948)

Net income

$

61,163


$

26,359


$

117,283


$

62,835













Other comprehensive income (loss) related to












available for sale securities, net of tax


(23,175)



1,028



(19,245)



3,871

Comprehensive income

$

37,988


$

27,387


$

98,038


$

66,706













Earnings per share:












Basic

$

1.18


$

0.51


$

2.27


$

1.22

Diluted

$

1.16


$

0.51


$

2.23


$

1.22













Weighted average common shares outstanding:












Basic


51,650,360



51,297,132



51,502,986



51,286,844

Diluted


52,601,118



51,460,446



52,248,377



51,297,765













Dividends declared per share

$

0.25


$

0.24


$

0.75


$

0.72

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets



September 30,


December 31,


2017


2016

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:

(Unaudited)




Cash and cash equivalents

$

351,399


$

259,087

Marketable securities


-



59,770

Restricted cash


8,723



3,778

Trade and other receivables


42,904



42,492

Inventories:






Housing completed or under construction


969,419



874,199

Land and land under development


863,002



884,615

Total inventories


1,832,421



1,758,814

Property and equipment, net


26,304



28,041

Deferred tax asset, net


64,164



74,888

Metropolitan district bond securities (related party)


-



30,162

Prepaid and other assets


72,808



60,463

Total homebuilding assets


2,398,723



2,317,495

Financial Services:






Cash and cash equivalents


26,419



23,822

Marketable securities


40,221



36,436

Mortgage loans held-for-sale, net


89,804



138,774

Other assets


11,135



12,062

Total financial services assets


167,579



211,094

      Total Assets

$

2,566,302


$

2,528,589

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

49,390


$

42,088

Accrued liabilities


151,661



144,566

Revolving credit facility


15,000



15,000

Senior notes, net


842,532



841,646

Total homebuilding liabilities


1,058,583



1,043,300

Financial Services:






Accounts payable and accrued liabilities


51,697



50,734

Mortgage repurchase facility


65,103



114,485

Total financial services liabilities


116,800



165,219

      Total Liabilities


1,175,383



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; 51,933,969 and 51,485,090






 issued and outstanding at September 30, 2017 and December 31, 2016, respectively


519



515

Additional paid-in-capital


995,132



983,532

Retained earnings


392,442



313,952

Accumulated other comprehensive income


2,826



22,071

Total Stockholders' Equity


1,390,919



1,320,070

Total Liabilities and Stockholders' Equity

$

2,566,302


$

2,528,589

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows



Three Months Ended


Nine Months Ended


September 30,


September 30,


2017


2016


2017


2016


(Dollars in thousands)


(Unaudited)

Operating Activities:












Net income

$

61,163


$

26,359


$

117,283


$

62,835

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












operating activities:












Stock-based compensation expense


1,062



473



3,100



6,636

Depreciation and amortization


1,501



1,335



4,205



3,702

Inventory impairments


4,540



4,700



9,390



6,300

Other-than-temporary impairment of marketable securities


29



326



211



1,045

Gain on sale of marketable securities


(16,364)



(649)



(18,122)



(911)

Gain on sale of metropolitan district bond securities (related party)


(35,847)



-



(35,847)



-

Deferred income tax expense


12,762



3,484



22,795



11,357

Net changes in assets and liabilities:












      Restricted cash


(3,696)



(675)



(4,945)



(871)

      Trade and other receivables


(5,300)



4,556



119



(21,679)

      Mortgage loans held-for-sale


5,479



710



48,970



(2,319)

      Housing completed or under construction


(62,290)



(42,934)



(101,997)



(229,739)

      Land and land under development


(17,635)



18,430



19,886



141,131

      Prepaid expenses and other assets


(3,627)



(1,598)



(11,229)



(4,573)

      Accounts payable and accrued liabilities


6,500



(1,334)



15,345



18,183

Net cash provided by (used in) operating activities


(51,723)



13,183



69,164



(8,903)













Investing Activities:












Purchases of marketable securities


(5,561)



(12,846)



(17,604)



(28,272)

Sales of marketable securities


71,865



6,108



83,315



56,873

Proceeds from sale of metropolitan district bond securities (related party)


44,253



-



44,253



-

Purchases of property and equipment


(553)



(748)



(1,917)



(3,865)

Net cash provided by (used in) investing activities


110,004



(7,486)



108,047



24,736













Financing Activities:












Advances (payments) on mortgage repurchase facility, net


(4,024)



(1,286)



(49,382)



3,400

Dividend payments


(12,984)



(12,259)



(38,793)



(36,763)

Payments of deferred financing costs


(2,630)



-



(2,630)



-

Proceeds from exercise of stock options


1,199



-



8,503



-

Net cash used in financing activities


(18,439)



(13,545)



(82,302)



(33,363)













Net increase (decrease) in cash and cash equivalents


39,842



(7,848)



94,909



(17,530)

Cash and cash equivalents:












      Beginning of period


337,976



171,306



282,909



180,988

      End of period

$

377,818


$

163,458


$

377,818


$

163,458

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries




 Three Months Ended September 30, 



2017


2016


 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

186


$

58,640


$

315.3


221


$

64,314


$

291.0


(16)%


(9)%


8%


California

223



135,745



608.7


195



125,602



644.1


14%


8%


(5)%


Nevada

240



81,483



339.5


177



59,601



336.7


36%


37%


1%


Washington

98



50,936



519.8


75



35,072



467.6


31%


45%


11%


West

747



326,804



437.5


668



284,589



426.0


12%


15%


3%


Colorado

314



146,883



467.8


343



169,858



495.2


(8)%


(14)%


(6)%


Utah

45



18,843



418.7


55



20,728



376.9


(18)%


(9)%


11%


Mountain

359



165,726



461.6


398



190,586



478.9


(10)%


(13)%


(4)%


Maryland

41



21,506



524.5


61



27,297



447.5


(33)%


(21)%


17%


Virginia

68



33,537



493.2


78



39,795



510.2


(13)%


(16)%


(3)%


Florida

102



37,374



366.4


88



33,455



380.2


16%


12%


(4)%


East

211



92,417



438.0


227



100,547



442.9


(7)%


(8)%


(1)%


Total

1,317


$

584,947


$

444.2


1,293


$

575,722


$

445.3


2%


2%


(0)%





 Nine Months Ended September 30, 



2017


2016


 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)


Arizona

586


$

183,258


$

312.7


582


$

170,352


$

292.7


1%


8%


7%


California

662



403,974



610.2


512



319,116



623.3


29%


27%


(2)%


Nevada

642



223,303



347.8


432



149,861



346.9


49%


49%


0%


Washington

290



149,106



514.2


234



106,665



455.8


24%


40%


13%


West

2,180



959,641



440.2


1,760



745,994



423.9


24%


29%


4%


Colorado

1,064



510,211



479.5


945



463,534



490.5


13%


10%


(2)%


Utah

126



51,409



408.0


145



53,238



367.2


(13)%


(3)%


11%


Mountain

1,190



561,620



471.9


1,090



516,772



474.1


9%


9%


(0)%


Maryland

140



65,870



470.5


178



84,742



476.1


(21)%


(22)%


(1)%


Virginia

171



92,432



540.5


193



98,572



510.7


(11)%


(6)%


6%


Florida

304



116,483



383.2


251



95,257



379.5


21%


22%


1%


East

615



274,785



446.8


622



278,571



447.9


(1)%


(1)%


(0)%


Total

3,985


$

1,796,046


$

450.7


3,472


$

1,541,337


$

443.9


15%


17%


2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders



 Three Months Ended September 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

192


$

64,765


$

337.3


2.53


225


$

67,424


$

299.7


2.56


(15)%


(4)%


13%


(1)%

California

250



164,265



657.1


4.17


260



152,901



588.1


4.08


(4)%


7%


12%


2%

Nevada

184



70,130



381.1


3.23


175



58,443



334.0


2.75


5%


20%


14%


17%

Washington

66



37,570



569.2


2.84


83



38,061



458.6


2.26


(20)%


(1)%


24%


26%

West

692



336,730



486.6


3.20


743



316,829



426.4


2.95


(7)%


6%


14%


8%

Colorado

333



162,725



488.7


2.45


321



146,911



457.7


3.82


4%


11%


7%


(36)%

Utah

48



23,041



480.0


2.29


35



14,718



420.5


1.41


37%


57%


14%


62%

Mountain

381



185,766



487.6


2.43


356



161,629



454.0


3.27


7%


15%


7%


(26)%

Maryland

39



17,006



436.1


2.00


50



22,612



452.2


1.42


(22)%


(25)%


(4)%


41%

Virginia

44



20,984



476.9


3.45


52



26,869



516.7


2.04


(15)%


(22)%


(8)%


69%

Florida

114



36,229



317.8


2.20


95



35,938



378.3


1.74


20%


1%


(16)%


26%

East

197



74,219



376.7


2.35


197



85,419



433.6


1.71


0%


(13)%


(13)%


37%

Total

1,270


$

596,715


$

469.9


2.78


1,296


$

563,877


$

435.1


2.72


(2)%


6%


8%


2%



 Nine Months Ended September 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
Absorptio
Rate


(Dollars in thousands)

Arizona

638


$

209,547


$

328.4


2.76


684


$

207,456


$

303.3


2.52


(7)%


1%


8%


10%

California

727



465,164



639.8


4.21


797



476,341



597.7


4.36


(9)%


(2)%


7%


(3)%

Nevada

746



265,691



356.2


4.17


634



220,799



348.3


3.31


18%


20%


2%


26%

Washington

332



184,112



554.6


3.80


325



156,546



481.7


2.82


2%


18%


15%


35%

West

2,443



1,124,514



460.3


3.64


2,440



1,061,142



434.9


3.20


0%


6%


6%


14%

Colorado

1,292



627,845



485.9


3.40


1,227



583,309



475.4


4.00


5%


8%


2%


(15)%

Utah

171



77,114



451.0


2.41


178



67,394



378.6


2.47


(4)%


14%


19%


(2)%

Mountain

1,463



704,959



481.9


3.24


1,405



650,703



463.1


3.71


4%


8%


4%


(13)%

Maryland

122



54,468



446.5


1.65


208



96,590



464.4


1.89


(41)%


(44)%


(4)%


(13)%

Virginia

171



88,600



518.1


3.58


210



108,779



518.0


2.75


(19)%


(19)%


0%


30%

Florida

365



128,091



350.9


2.22


325



133,533



410.9


2.19


12%


(4)%


(15)%


1%

East

658



271,159



412.1


2.30


743



338,902



456.1


2.22


(11)%


(20)%


(10)%


4%

Total

4,564


$

2,100,632


$

460.3


3.24


4,588


$

2,050,747


$

447.0


3.11


(1)%


2%


3%


4%




* 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,


%



2017


2016


Change


2017


2016


Change


2017


2016


Change


Arizona

27


30


(10)%


25


29


(14)%


26


30


(13)%


California

23


21


10%


20


21


(5)%


19


20


(5)%


Nevada

19


20


(5)%


19


21


(10)%


20


21


(5)%


Washington

7


14


(50)%


8


12


(33)%


10


13


(23)%


West

76


85


(11)%


72


83


(13)%


75


84


(11)%


Colorado

48


28


71%


45


28


61%


42


34


24%


Utah

7


9


(22)%


7


8


(13)%


8


8


0%


Mountain

55


37


49%


52


36


44%


50


42


19%


Maryland

5


11


(55)%


7


12


(42)%


8


12


(33)%


Virginia

4


8


(50)%


4


9


(56)%


5


9


(44)%


Florida

14


18


(22)%


17


18


(6)%


18


17


6%


East

23


37


(38)%


28


39


(28)%


31


38


(18)%


Total

154


159


(3)%


152


158


(4)%


156


164


(5)%


Backlog




At September 30,



2017


2016


% Change



Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price


Homes


Dollar
Value


Average
Price



(Dollars in thousands)


Arizona

374


$

133,074


$

355.8


423


$

132,929


$

314.3


(12)%


0%


13%


California

546



378,448



693.1


627



389,622



621.4


(13)%


(3)%


12%


Nevada

411



151,726



369.2


397



139,731



352.0


4%


9%


5%


Washington

279



156,974



562.6


270



133,367



494.0


3%


18%


14%


West

1,610



820,222



509.5


1,717



795,649



463.4


(6)%


3%


10%


Colorado

1,192



595,675



499.7


1,104



530,662



480.7


8%


12%


4%


Utah

149



67,830



455.2


141



53,180



377.2


6%


28%


21%


Mountain

1,341



663,505



494.8


1,245



583,842



468.9


8%


14%


6%


Maryland

74



34,102



460.8


120



56,837



473.6


(38)%


(40)%


(3)%


Virginia

111



58,225



524.5


118



64,228



544.3


(6)%


(9)%


(4)%


Florida

327



132,238



404.4


248



111,499



449.6


32%


19%


(10)%


East

512



224,565



438.6


486



232,564



478.5


5%


(3)%


(8)%


Total

3,463


$

1,708,292


$

493.3


3,448


$

1,612,055


$

467.5


0%


6%


6%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)




September 30,


%



2017


2016


Change


Unsold:







Completed

78


81


(4)%


Under construction

218


298


(27)%


Total unsold started homes

296


379


(22)%


Sold homes under construction or completed

2,591


2,626


(1)%


Model homes under construction or completed

319


293


9%


Total homes completed or under construction

3,206


3,298


(3)%


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




September 30, 2017


September 30, 2016





Lots
Owned


Lots
Optioned


Total


Lots
Owned


Lots
Optioned


Total


Total %
Change


Arizona

1,971


761


2,732


1,515


269


1,784


53%


California

1,454


679


2,133


1,753


75


1,828


17%


Nevada

2,150


401


2,551


2,051


200


2,251


13%


Washington

655


64


719


853


-


853


(16)%


West

6,230


1,905


8,135


6,172


544


6,716


21%


Colorado

4,622


2,960


7,582


4,051


1,347


5,398


40%


Utah

456


132


588


380


-


380


55%


Mountain

5,078


3,092


8,170


4,431


1,347


5,778


41%


Maryland

122


48


170


261


143


404


(58)%


Virginia

282


30


312


429


15


444


(30)%


Florida

941


1,231


2,172


962


455


1,417


53%


East

1,345


1,309


2,654


1,652


613


2,265


17%


Total

12,653


6,306


18,959


12,255


2,504


14,759


28%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expenses




Three Months Ended September 30,


Nine Months Ended September 30,



2017


2016


Change


2017


2016


Change



(Dollars in thousands)


General and administrative expenses

$

33,170


$

27,758


$

5,412


$

97,831


$

90,638


$

7,193


General and administrative expenses



















as a percentage of home sale revenues


5.7%



4.8%



90 bps



5.4%



5.9%



(50) bps





















Marketing expenses

$

16,445


$

15,262


$

1,183


$

48,545


$

41,728


$

6,817


Marketing expenses as a percentage of



















home sale revenues


2.8%



2.7%



10 bps



2.7%



2.7%



0 bps





















Commissions expenses

$

19,487


$

18,884


$

603


$

59,733


$

50,255


$

9,478


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

$

69,102


$

61,904


$

7,198


$

206,109


$

182,621


$

23,488


Total selling, general and administrative



















expenses as a percentage of home



















sale revenues


11.8%



10.8%



100 bps



11.5%



11.8%



(30) bps


Capitalized Interest




Three Months Ended


Nine Months Ended



September 30,


September 30,



2017


2016


2017


2016



(Dollars in thousands)


Homebuilding interest incurred

$

13,212


$

13,187


$

39,594


$

39,511


Less:  Interest capitalized


(13,212)



(13,187)



(39,594)



(39,511)


Homebuilding interest expensed

$

-


$

-


$

-


$

-















Interest capitalized, beginning of period

$

62,091


$

77,150


$

68,085


$

77,541


Plus: Interest capitalized during period


13,212



13,187



39,594



39,511


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


(15,087)



(15,922)



(47,463)



(42,637)


Interest capitalized, end of period

$

60,216


$

74,415


$

60,216


$

74,415

 

View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-third-quarter-results-300548220.html

SOURCE M.D.C. Holdings, Inc.

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