News
M.D.C. Holdings, Inc.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "We are pleased to report our fourth consecutive month of record home orders. These increases in home orders, which are expected to contribute home closings primarily early next year, should further our previously disclosed goal to close more than 10,000 homes and produce record revenues and earnings in 2003."
The Company increased the number of active subdivisions to 165 at June 30, 2002 from 137 at December 31, 2001, including an additional eight in Nevada and seven in Arizona. These additional subdivisions contributed to year-over-year increases in second quarter home orders of over 150% in Nevada and 26% in Arizona. Home orders increased a combined 53% in Southern and Northern California, primarily resulting from the strong demand for new homes in these markets. In addition, the Company has opened 36 new model homes in the first six months of 2002 in Colorado, contributing to the 18% increase in home orders in this market.
MDC closed 1,956 homes in the second quarter of 2002, compared with closings of 1,924 homes for the same period in 2001. The Company ended the second quarter of 2002 with a record quarter-end backlog of 4,935 homes with an estimated sales value of $1.300 billion, 13% and 17% higher, respectively, than the backlog of 4,372 homes with an estimated sales value of $1.110 billion at June 30, 2001.
MDC, whose subsidiaries build homes under the name "Richmond American Homes," is one of the largest homebuilders in the United States. The Company also provides mortgage financing, primarily for MDC's homebuyers, through its wholly owned subsidiary, HomeAmerican Mortgage Corporation. MDC is a major regional homebuilder with a significant presence in some of the country's best housing markets. The Company is the largest homebuilder in Colorado; among the top five homebuilders in Northern Virginia, Phoenix, Tucson and Las Vegas; among the top ten homebuilders in suburban Maryland, Northern California and Southern California; and has recently entered the Salt Lake City and Dallas/Fort Worth markets.
Certain statements in this release, including those related to the Company's anticipated revenues, earnings, home orders and home closings, 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 the Company 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 and business conditions; (2) interest rate changes; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
Three Months Six Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
Orders For Homes, net (units)
Colorado 757 639 1,758 1,607
Utah 31 -- 31 --
California 633 414 1,224 855
Arizona 671 534 1,341 1,266
Nevada 411 162 618 430
Virginia 176 144 418 364
Maryland 74 80 139 178
Total 2,753 1,973 5,529 4,700
Homes Closed (units)
Colorado 706 671 1,315 1,300
Utah 25 -- 25 --
California 362 375 654 615
Arizona 446 513 884 1,011
Nevada 247 169 388 328
Virginia 104 136 234 306
Maryland 66 60 130 123
Total 1,956 1,924 3,630 3,683
June 30, December 31, June 30,
2002 2001 2001
Backlog (units)*
Colorado 1,638 1,195 1,692
Utah 47 -- --
California 1,060 490 748
Arizona 1,082 625 1,065
Nevada 524 181 300
Virginia 418 234 386
Maryland 166 157 181
Total 4,935 2,882 4,372
Backlog Estimated
Sales Value $1,300,000 $760,000 $1,110,000
Active Subdivisions 165 137 137
* In April 2002, MDC acquired certain assets of John Laing Homes in
Las Vegas and Salt Lake City, including 154 homes in backlog.
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Paris G. Reece III, Chief Financial Officer of M.D.C. Holdings,
Inc., +1-303-804-7706,
Associates, Inc., +1-212-843-8282,
Holdings, Inc.
Web site: https://www.richmondamerican.com/
