News
M.D.C. Holdings, Inc.
First quarter home orders particularly were strong in Arizona, Virginia and Maryland (up 27%, 17% and 17% year-over-year, respectively), primarily due to the continued strong demand for new homes in these markets. In addition, the Company received 961 net home orders in the 2005 first quarter from its newest markets in Utah, Texas, Florida, Philadelphia/Delaware Valley and Illinois, compared with only 556 home orders from Utah, Texas and Florida in the 2004 first quarter. Similar to the 2004 fourth quarter, these increases partially were offset by lower home orders year-over-year in Nevada and California, compared with the extraordinary levels experienced in these markets during the first quarter of 2004.
Record Home Closings and Backlog
MDC closed 3,158 homes in the first quarter of 2005, a 9% increase from the 2,910 home closings for the same period in 2004. The Company ended the first quarter of 2005 with a record March 31st backlog of 7,893 homes with an estimated sales value of $2.43 billion, 11% and 17% greater, respectively, than the backlog of 7,112 homes with an estimated sales value of $2.08 billion at March 31, 2004.
Earnings Release, Conference Call and Webcast
The Company plans to release its 2005 first quarter earnings after the market closes on Monday, April 18, 2005. A synchronized slide show and audio presentation will be broadcast over the Internet on Tuesday, April 19, 2005, at 9:30 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 2005 First Quarter Conference Call." Minimum requirements to listen to broadcast: Windows Media Player software, downloadable free from http://www.microsoft.com/windows/windowsmedia/mp10/ default.aspx, and at least a 28.8Kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to
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 Jacksonville, Northern California and Southern California. MDC also has established operating divisions in Dallas/Fort Worth, Houston, West Florida, Philadelphia/Delaware Valley and Chicago. For more information about our Company, please visit www.richmondamerican.com.
Forward-Looking Statements
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. Additional information about the risks and uncertainties applicable to the Company's business is contained in the Company's Form 10-K for the year ended December 31, 2004, which was filed with the Securities and Exchange Commission. 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. The Company undertakes no duty to publicly update 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 presentations should be consulted.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
Three Months
Ended March 31,
Orders For Homes, net (units) 2005 2004
Arizona 1,152 910
California 531 826
Colorado 664 691
Florida 320 109
Illinois 29 --
Maryland 145 124
Nevada 750 1,030
Philadelphia/Delaware Valley 43 --
Texas 321 271
Utah 248 176
Virginia 343 292
Total 4,546 4,429
Cancellation Rate 20.2% 18.6%
Homes Closed (units)
Arizona 796 870
California 386 476
Colorado 448 478
Florida 295 71
Illinois 5 --
Maryland 74 70
Nevada 609 568
Texas 165 70
Utah 168 104
Virginia 212 203
Total 3,158 2,910
Backlog (units) March 31, March 31,
2005 2004
Arizona 2,499 1,373
California 952 1,469
Colorado 908 947
Florida 663 142
Illinois 42 --
Maryland 296 323
Nevada 887 1,348
Philadelphia/Delaware Valley 66 --
Texas 412 344
Utah 369 223
Virginia 799 943
Total 7,893 7,112
Backlog Estimated Sales Value $2,430,000 $2,080,000
Estimated Average Selling Price
of Homes in Backlog $307.9 $292.5
Active Subdivisions at
Beginning of Month 252 208
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Paris G. Reece III, Chief Financial Officer of M.D.C. Holdings,
Inc., +1-303-804-7706,
Web site: https://www.richmondamerican.com/
