News
M.D.C. Holdings, Inc.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "Given the strong home orders in the first quarter and early in the second quarter, we intentionally slowed the pace of new orders in certain communities over the last several weeks in some of our fastest growing markets, including Southern California and Nevada. Similar to our actions in Virginia and Maryland in the first quarter, which continued throughout the second quarter, we increased sales prices and limited the release of new homes for sale to allow construction to catch up with the growing backlog of homes sold but not started in these markets. Notwithstanding these self-imposed restraints, year-over-year increases in mortgage interest rates, and difficult comparisons created by the exceptional level of home orders recorded in the 2003 second quarter, our home orders reached record levels for the tenth consecutive quarter."
Second quarter 2004 home orders increased from 2003 levels in most of the Company's markets, led by gains of 54% in Northern California and 26% in Arizona. In addition, the Company received 527 net home orders in the 2004 second quarter from its newest markets in Texas, Utah, Florida and Illinois, compared with only 162 home orders from Texas and Utah in the 2003 second quarter. Home orders were down in Colorado from the strong level of orders received in the 2003 second quarter, primarily due to a reduced number of active subdivisions, combined with relatively more of the active subdivisions in this market nearing close-out during the 2004 period. Virginia and Maryland also reported lower home orders primarily due to the reasons previously discussed.
MDC closed 3,085 homes and 5,995 homes, respectively, in the quarter and six months ended June 30, 2004. These record home closing levels represent increases of 18% and 27% from the 2,624 and 4,724 homes closed, respectively, for the same periods in 2003. The Company ended the second quarter of 2004 with its highest ever quarter-end backlog of 8,259 homes with an estimated sales value of $2.5 billion, 30% and 53% greater, respectively, than the backlog of 6,341 homes with an estimated sales value of $1.63 billion at June 30, 2003.
MDC plans to release its 2004 second quarter earnings after the market closes on Monday, July 12, 2004. A synchronized slide show and audio presentation will be broadcast over the Internet on Tuesday, July 13, 2004, at 10:00 a.m. Eastern Daylight Saving Time in conjunction with its conference call. The presentation can be accessed by entering MDC's website, www.richmondamerican.com, clicking on "Investors" and selecting "M.D.C. Holdings 2004 Second Quarter Conference Call."
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, suburban Maryland, Phoenix, Tucson, Las Vegas and Salt Lake City; and among the top ten homebuilders in Northern California and Southern California. MDC also has a growing presence in Dallas/Fort Worth, Houston and Jacksonville, and has recently entered the Philadelphia/Delaware Valley, West Florida and Chicago markets. For more information about our Company, please visit www.richmondamerican.com.
Certain statements in this release 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 performance bonds and 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,
2004 2003 2004 2003
Orders For Homes,
net (units)
Colorado 599 812 1,290 1,483
California 627 511 1,453 1,041
Nevada 927 774 1,957 1,357
Arizona 1,243 986 2,153 1,910
Utah 210 93 386 186
Texas 224 69 495 119
Virginia 230 305 522 708
Maryland 79 115 203 226
Florida 90 -- 199 --
Illinois 3 -- 3 --
Total 4,232 3,665 8,661 7,030
Cancellation Rate 23.2% 23.5% 20.9% 22.8%
Homes Closed (units)
Colorado 542 625 1,020 1,234
California 535 487 1,011 915
Nevada 629 508 1,197 781
Arizona 665 663 1,535 1,234
Utah 124 69 228 109
Texas 148 29 218 39
Virginia 267 166 470 268
Maryland 91 77 161 144
Florida 84 -- 155 --
Illinois -- -- -- --
Total 3,085 2,624 5,995 4,724
June 30, June 30,
2004 2003
Backlog (units)
Colorado 1,004 1,206
California 1,561 1,048
Nevada 1,646 926
Arizona 1,951 1,752
Utah 309 127
Texas 420 96
Virginia 906 916
Maryland 311 270
Florida 148 --
Illinois 3 --
Total 8,259 6,341
Backlog Estimated
Sales Value $2,500,000 $1,630,000
Estimated Average
Selling Price of
Homes in Backlog $302.7 $257.1
Active Subdivisions
at Beginning of
Month 222 194
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Paris G. Reece III, Chief Financial Officer, +1-303-804-7706,
+1-303-804-7729,
Web site: https://www.richmondamerican.com/
