News
M.D.C. Holdings, Inc.
Net loss for the nine months ended September 30, 2008 was $291.5 million, or $6.32 per diluted share, which included pre-tax charges of $238.5 million for asset impairments. This net loss for the first nine months of 2008 also was impacted adversely by a $115.1 million increase in our deferred tax asset valuation allowance, which reduced our benefit from income taxes. The net loss for the first nine months of 2007 was $355.8 million, or $7.79 per diluted share, including pre-tax charges of $551.4 million for asset impairments. Total revenue for the first nine months of 2008 was $1.18 billion, compared with revenue of $2.15 billion for the same period in 2007.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "As national economic conditions continued to deteriorate during the third quarter of 2008, we generated in excess of $100 million in operating cash flow, largely through our efforts to reduce inventory balances and overhead expenses. As a result, we ended the quarter with $1.37 billion in cash and investments. Though many businesses across the country have struggled in the wake of tightening credit markets and overall market volatility, we believe that our capital structure currently provides us with adequate resources to pursue opportunistic land investments, given that our quarter-end cash and investments exceeded our total debt by more than $300 million and that our next debt maturity does not occur until 2012."
Homebuilding Results
Homebuilding loss before taxes for the quarter and nine months ended September 30, 2008 improved to $99.1 million and $270.8 million, respectively, compared with $258.0 million and $568.3 million for the same periods in 2007. The loss in 2008 narrowed in large part due to declines in asset impairment charges of 62% and 57%, respectively, for the third quarter and first nine months of 2008, and declines in homebuilding commissions, marketing and general and administrative expenses ("SG&A") of 44% and 45%, respectively, from the comparative 2007 periods. These decreases in expenses and charges were offset partially by the impact of reductions in home closings and average selling prices from the levels achieved during the same periods in 2007.
The Company closed 1,116 homes and produced home gross margins of 15.3% in the 2008 third quarter, compared with 1,963 home closings and home gross margins of 14.1% for the same period in 2007. For the nine months ended September 30, 2008, the Company closed 3,544 homes and produced home gross margins of 12.7%, compared with 5,995 home closings and 14.7% home gross margins for the nine months ended September 30, 2007. Average selling prices were $301,700 and $303,200, respectively, for the quarter and nine months ended September 30, 2008, down $30,000 and $38,900, respectively, from the same periods in 2007. Homebuilding SG&A decreased to $59.3 million and $183.0 million, respectively, for the three and nine months ended September 30, 2008, compared with $105.2 million and $330.1 million for the same periods in the prior year.
Christopher M. Anderson, MDC's senior vice president and chief financial officer, said, "We recognized $95 million of asset impairments charges during the quarter, including $91 million of inventory impairment charges. We impaired our land inventory by $70 million and our work-in-process inventory by $21 million, impacting approximately 3,500 lots in 150 subdivisions. The quarter-end book value of the impaired subdivisions after the impairments was $213 million, consisting of $55 million of land and $158 million of work-in-process. As was the case in the prior quarter, impairments in the West and Mountain segments accounted for more than 80% of all inventory impairments recorded in the 2008 third quarter."
Anderson continued, "In the interest of preserving value for our shareholders, we continued to evaluate strategies for reducing our overhead during the quarter, and as a part of that process we made the decision to exit the Illinois market. We continue to build on or sell the lots we control in this market but currently have no plans to evaluate any new land investments."
Anderson concluded, "We also made adjustments to our operating structure in most of our other markets and, as a result, our employee headcount decreased by more than 10% in the third quarter alone. Unfortunately, these difficult steps are necessary to return our Company to profitability. However, even as we right-size our organization, we continue to search for opportunities to make new investments to capitalize on current market conditions."
Financial Services and Other and Corporate Results
Income before taxes from the Company's Financial Services and Other segment for the quarter and nine months ended September 30, 2008 was $3.4 million and $8.1 million, respectively, compared with $5.0 million and $16.8 million for the same periods in the previous year. The decreases in the 2008 periods primarily resulted from lower insurance revenue due to lower insurance premiums collected from our homebuilding subcontractors as a result of the decline in home construction levels. The Company also realized lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in conjunction with builder home closings, which were offset by reductions in general and administrative expenses for our mortgage operations.
Loss before taxes from the Company's Corporate segment for the quarter and nine months ended September 30, 2008 was $21.3 million and $33.0 million, respectively, compared with income before taxes of $1.7 million and loss before taxes of $14.5 million for the same periods in 2007. The decline for both periods primarily resulted from reduced supervisory fees charged to other segments, an increase in interest expense related to incurred amounts that could no longer be capitalized to inventory and the impact of recording an $8.0 million gain on the sale of an aircraft during the 2007 third quarter.
Home Orders and Backlog
MDC received orders, net of cancellations, for 667 homes with an estimated sales value of $182.0 million during the 2008 third quarter, compared with net orders for 1,228 homes with an estimated sales value of $365.0 million during the same period in 2007. For the nine months ended September 30, 2008, the Company received net orders for 2,724 homes with a sales value of $786 million, compared with 5,756 homes with a sales value of $1.92 billion for the nine months ended September 30, 2007. During the third quarter and first nine months of 2008, the Company's approximate order cancellation rate was 46% and 43%, respectively, compared with rates of 57% and 44% experienced during the same periods in 2007. The Company ended the third quarter of 2008 with a backlog of 1,127 homes with an estimated sales value of $364.0 million, compared with a backlog of 3,399 homes with an estimated sales value of $1.21 billion at September 30, 2007.
Since 1972, MDC has built and financed the American dream for more than 150,000 families. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. As one of the largest homebuilders in the United States, the Company has homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. The Company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, 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 http://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 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 conditions, including changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by the Company, including cancellation rates, net home orders, home gross margins, and land and home values; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) the relative stability of debt and equity markets; (5) competition; (6) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (7) the availability and cost of performance bonds and insurance covering risks associated with our business; (8) shortages and the cost of labor; (9) weather related slowdowns; (10) slow growth initiatives; (11) building moratoria; (12) governmental regulation, including the interpretation of tax, labor and environmental laws; (13) changes in consumer confidence and preferences; (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 Annual Report on Form 10-K for the year ended December 31, 2007, which has been filed with the Securities and Exchange Commission ("SEC"), and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008, which is scheduled to be filed with the SEC 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. The Company 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 presentations should be consulted.
M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
REVENUE
Home sales revenue $336,744 $651,124 $1,074,629 $2,050,737
Land sales revenue 15,850 2,700 56,699 12,151
Other revenue 8,655 32,837 47,964 85,605
Total Revenue 361,249 686,661 1,179,292 2,148,493
COSTS AND EXPENSES
Home cost of sales 285,367 559,402 937,947 1,749,165
Land cost of sales 14,775 452 49,559 7,740
Asset impairments 95,388 248,950 238,498 551,422
Marketing expenses 18,797 28,694 58,350 87,144
Commission expenses 12,297 23,900 40,389 71,530
General and administrative
expenses 51,596 76,482 150,276 247,229
Related party expenses 3 95 13 286
Total Costs and Expenses 478,223 937,975 1,475,032 2,714,516
Loss before income taxes (116,974) (251,314) (295,740) (566,023)
(Provision for) benefit from
income taxes (997) 95,936 4,223 210,175
NET LOSS $(117,971) $(155,378) $(291,517) $(355,848)
LOSS PER SHARE
Basic $(2.55) $(3.40) $(6.32) $(7.79)
Diluted $(2.55) $(3.40) $(6.32) $(7.79)
WEIGHTED-AVERAGE SHARES
OUTSTANDING
Basic 46,219 45,751 46,094 45,659
Diluted 46,219 45,751 46,094 45,659
DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $0.75 $0.75
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
September 30, December 31,
2008 2007
ASSETS
Cash and cash equivalents $1,160,868 $1,004,763
Short-term investments 94,767 -
Restricted cash 979 1,898
Unsettled trades 115,135 -
Receivables
Home sales receivables 25,489 33,647
Income taxes receivable, net 99,290 36,988
Other receivables 18,053 16,796
Mortgage loans held-for-sale, net 60,925 100,144
Inventories, net
Housing completed or under construction 541,866 902,221
Land and land under development 254,360 554,336
Property and equipment, net 37,701 44,368
Deferred income taxes, net 13,505 160,565
Related party assets 28,627 28,627
Prepaid expenses and other assets, net 80,275 71,884
Total Assets $2,531,840 $2,956,237
LIABILITIES
Accounts payable $42,304 $71,932
Accrued liabilities 288,343 339,353
Related party liabilities - 1,701
Mortgage line of credit 30,534 70,147
Senior notes, net 997,416 997,091
Total Liabilities 1,358,597 1,480,224
COMMITMENTS AND CONTINGENCIES - -
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;
46,598,000 and 46,549,000 issued and
outstanding, respectively, at September 30,
2008, and 46,084,000 and 46,053,000 issued
and outstanding, respectively, at
December 31, 2007 466 461
Additional paid-in-capital 779,847 757,039
Retained earnings 393,589 719,841
Accumulated other comprehensive loss - (669)
Treasury stock, at cost; 49,000 and
31,000 shares at September 30, 2008
and December 31, 2007, respectively (659) (659)
Total Stockholders' Equity 1,173,243 1,476,013
Total Liabilities and Stockholders'
Equity $2,531,840 $2,956,237
M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
REVENUE
Homebuilding
West $195,073 $389,309 $639,623 $1,277,012
Mountain 72,572 138,439 230,503 418,300
East 52,420 72,368 161,939 205,523
Other Homebuilding 38,411 60,364 115,916 184,195
Total Homebuilding 358,476 660,480 1,147,981 2,085,030
Financial Services and Other 9,545 14,652 28,318 47,836
Corporate (2,709) 16,048 14,215 30,510
Inter-company adjustments (4,063) (4,519) (11,222) (14,883)
Consolidated $361,249 $686,661 $1,179,292 $2,148,493
(LOSS) INCOME BEFORE INCOME
TAXES
Homebuilding
West $(47,741) $(197,917) $(142,723) $(462,547)
Mountain (30,085) (925) (80,720) 3,218
East (14,854) (15,998) (27,502) (27,168)
Other Homebuilding (6,388) (43,158) (19,871) (81,776)
Total Homebuilding (99,068) (257,998) (270,816) (568,273)
Financial Services and Other 3,414 5,018 8,119 16,776
Corporate (21,320) 1,666 (33,043) (14,526)
Consolidated $(116,974) $(251,314) $(295,740) $(566,023)
INVENTORY IMPAIRMENTS
West $49,258 $190,490 $135,921 $445,124
Mountain 25,195 6,930 59,249 16,707
East 12,551 16,237 22,298 24,669
Other Homebuilding 3,816 35,293 12,240 64,922
Consolidated $90,820 $248,950 $229,708 $551,422
September December September December
30, 31, 30, 31,
2008 2007 2007 2006
TOTAL ASSETS
Homebuilding
West $383,540 $747,835 $1,157,760 $1,869,442
Mountain 381,435 474,203 535,568 535,554
East 163,492 250,658 308,070 333,902
Other Homebuilding 86,790 125,003 168,990 266,326
Total Homebuilding 1,015,257 1,597,699 2,170,388 3,005,224
Financial Services and Other 129,587 174,617 142,456 284,791
Corporate 1,432,853 1,229,178 1,091,566 657,917
Inter-company adjustments (45,857) (45,257) (43,157) (38,057)
Consolidated $2,531,840 $2,956,237 $3,361,253 $3,909,875
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Segments $28,240 $52,561 $(24,321) -46%
Financial Services and Other
Segment 6,131 9,635 (3,504) -36%
Corporate Segment (1) 17,228 14,381 2,847 20%
Total $51,599 $76,577 $(24,978) -33%
SG&A as a % of Home Sales Revenue
Homebuilding Segments 17.6% 16.1% 1.5%
Corporate Segment (1) 5.1% 2.2% 2.9%
Depreciation and Amortization (2) $8,902 $11,777 $(2,875) -24%
Home Gross Margins (3) 15.3% 14.1% 1.2%
Interest in Home Cost of Sales as
a % of Home Sales Revenue 2.9% 2.2% 0.7%
Cash Provided by Operating
Activities $106,046 $136,246 $(30,200) -22%
Cash Used in Investing
Activities $(210,199) $(6,307) $(203,892) N/A
Cash Used in Financing
Activities $(31,796) $(68,839) $37,043 -54%
Corporate and Homebuilding Interest
Interest capitalized during the
period $3,749 $14,444 $(10,695) -74%
Previously capitalized interest
included in home cost of sales
during the period $(9,689) $(14,428) $4,739 -33%
Interest Capitalized in
Inventories at End of Period $43,734 $54,004 $(10,270) -19%
Nine Months
Ended September 30, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Segments $84,215 $171,419 $(87,204) -51%
Financial Services and Other
Segment 20,199 31,060 (10,861) -35%
Corporate Segment (1) 45,875 45,036 839 2%
Total $150,289 $247,515 $(97,226) -39%
SG&A as a % of Home Sales Revenue
Homebuilding Segments 17.0% 16.1% 0.9%
Corporate Segment (1) 4.3% 2.2% 2.1%
Depreciation and Amortization (2) $26,860 $33,994 $(7,134) -21%
Home Gross Margins (3) 12.7% 14.7% -2.0%
Interest in Home Cost of Sales
as a % of Home Sales Revenue 3.9% 1.9% 2.0%
Cash Provided by Operating
Activities $428,349 $335,568 $92,781 28%
Cash Used in Investing
Activities $(210,315) $(8,362) $(201,953) N/A
Cash Used in Financing
Activities $(61,929) $(105,674) $43,745 -41%
Corporate and Homebuilding Interest
Interest capitalized during the
period $32,666 $43,320 $(10,654) -25%
Previously capitalized interest
included in home cost of
sales during the period $(42,419) $(39,971) $(2,448) 6%
Interest Capitalized in
Inventories
at End of Period $43,734 $54,004 $(10,270) -19%
(1) Includes related party expenses.
(2) Includes depreciation and amortization of long-lived assets and
amortization of deferred marketing costs.
(3) Home sales revenue less home cost of sales (excluding commissions,
amortization of deferred marketing, project cost write offs and asset
impairments) as a percent of home sales revenue. During the three and
nine months ended September 30, 2008, we closed homes on lots for
which we had previously recorded $68.5 million and $182.1 million,
respectively, of asset impairments. During the three and nine months
ended September 30, 2007, we closed homes on lots for which we had
previously recorded $28.6 million and $56.6 million, respectively, of
asset impairments.
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
2008 2007 Amount %
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans
originated $198,780 $286,192 $(87,412) -31%
Principal amount of mortgage loans
brokered $34,977 $118,580 $(83,603) -71%
Capture Rate 71% 54% 17%
Including brokered loans 82% 73% 9%
Mortgage products (% of mortgage loans
originated)
Fixed rate 97% 86% 11%
Adjustable rate - interest only 0% 11% -11%
Adjustable rate - other 3% 3% 0%
Prime loans (4) 46% 86% -40%
Alt A loans (5) 0% 0% 0%
Government loans (6) 54% 14% 40%
Sub-prime loans (7) 0% 0% 0%
Nine Months
Ended September 30, Change
2008 2007 Amount %
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans
originated $576,565 $930,769 $(354,204) -38%
Principal amount of mortgage loans
brokered $141,147 $364,813 $(223,666) -61%
Capture Rate 65% 55% 10%
Including brokered loans 78% 74% 4%
Mortgage products (% of mortgage
loans originated)
Fixed rate 97% 78% 19%
Adjustable rate - interest only 1% 20% -19%
Adjustable rate - other 2% 2% 0%
Prime loans (4) 51% 77% -26%
Alt A loans (5) 0% 14% -14%
Government loans (6) 49% 9% 40%
Sub-prime loans (7) 0% 0% 0%
(4) Prime loans generally are defined as loans with Fair, Isaac and
Company ("FICO") scores greater than 620 and that comply with the
documentation standards of the government sponsored enterprise
guidelines.
(5) Alt-A loans are defined as loans that would otherwise qualify as prime
loans except that they do not comply with the documentation standards
of the government sponsored enterprise guidelines.
(6) Government loans are loans either insured by the Federal Housing
Administration or guaranteed by the Department of Veteran Affairs.
(7) Sub-prime loans generally are defined as loans that have FICO scores
of less than or equal to 620.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
September 30, December 31, September 30,
2008 2007 2007
HOMES COMPLETED OR UNDER
CONSTRUCTION
Unsold Home Under Construction
- Final 364 515 493
Unsold Home Under Construction
- Frame 495 656 862
Unsold Home Under Construction
- Foundation 123 229 196
Total Unsold Homes Under
Construction 982 1,400 1,551
Sold Homes Under Construction 852 1,350 2,791
Model Homes 428 730 758
Homes Completed or Under
Construction 2,262 3,480 5,100
LOTS OWNED (excluding homes completed
or under construction)
Arizona 1,612 2,969 3,962
California 873 1,491 1,867
Nevada 934 1,549 1,879
West 3,419 6,009 7,708
Colorado 2,638 2,992 2,904
Utah 731 863 900
Mountain 3,369 3,855 3,804
Maryland 192 302 307
Virginia 256 369 417
East 448 671 724
Delaware Valley 117 151 141
Florida 254 638 849
Illinois 155 191 201
Other Homebuilding 526 980 1,191
Total 7,762 11,515 13,427
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
September 30, December 31, September 30,
2008 2007 2007
LOTS CONTROLLED UNDER OPTION
Arizona 431 512 388
California 149 157 157
Nevada 101 4 4
West 681 673 549
Colorado 183 262 258
Utah - - -
Mountain 183 262 258
Maryland 349 558 605
Virginia 1,050 1,311 1,769
East 1,399 1,869 2,374
Delaware Valley 82 327 315
Florida 407 484 497
Illinois - - -
Other Homebuilding 489 811 812
Total 2,752 3,615 3,993
NON-REFUNDABLE OPTION DEPOSITS
Cash $5,004 $6,292 $8,093
Letters of Credit 4,913 6,547 8,287
Total Non-Refundable Option Deposits $9,917 $12,839 $16,380
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
2008 2007 Amount %
HOMES CLOSED (UNITS)
Arizona 307 700 (393) -56%
California 155 237 (82) -35%
Nevada 210 310 (100) -32%
West 672 1,247 (575) -46%
Colorado 155 219 (64) -29%
Utah 54 162 (108) -67%
Mountain 209 381 (172) -45%
Maryland 55 71 (16) -23%
Virginia 60 72 (12) -17%
East 115 143 (28) -20%
Delaware Valley 24 35 (11) -31%
Florida 70 115 (45) -39%
Illinois 26 41 (15) -37%
Texas - 1 (1) N/A
Other Homebuilding 120 192 (72) -38%
Total 1,116 1,963 (847) -43%
AVERAGE SELLING PRICES PER HOME CLOSED
West
Arizona $206.2 $247.9 $(41.7) -17%
California 435.5 492.4 (56.9) -12%
Nevada 243.3 294.2 (50.9) -17%
Mountain
Colorado 346.4 357.7 (11.3) -3%
Utah 331.4 363.3 (31.9) -9%
East
Maryland 442.0 521.4 (79.4) -15%
Virginia 458.5 484.1 (25.6) -5%
Other Homebuilding
Delaware Valley 395.5 417.2 (21.7) -5%
Florida 240.1 253.8 (13.7) -5%
Illinois 351.7 396.1 (44.4) -11%
Texas - 110.0 N/A N/A
Company Average $301.7 $331.7 $(30.0) -9%
Nine Months
Ended September 30, Change
2008 2007 Amount %
HOMES CLOSED (UNITS)
Arizona 1,038 1,997 (959) -48%
California 472 831 (359) -43%
Nevada 639 1,028 (389) -38%
West 2,149 3,856 (1,707) -44%
Colorado 443 583 (140) -24%
Utah 214 568 (354) -62%
Mountain 657 1,151 (494) -43%
Maryland 150 181 (31) -17%
Virginia 199 216 (17) -8%
East 349 397 (48) -12%
Delaware Valley 75 116 (41) -35%
Florida 254 381 (127) -33%
Illinois 60 68 (8) -12%
Texas - 26 (26) N/A
Other Homebuilding 389 591 (202) -34%
Total 3,544 5,995 (2,451) -41%
AVERAGE SELLING PRICES PER HOME CLOSED
West
Arizona $220.2 $254.4 $(34.2) -13%
California 422.4 524.7 (102.3) -19%
Nevada 246.2 301.5 (55.3) -18%
Mountain
Colorado 348.6 345.5 3.1 1%
Utah 336.4 359.8 (23.4) -7%
East
Maryland 459.3 521.3 (62.0) -12%
Virginia 459.5 491.4 (31.9) -6%
Other Homebuilding
Delaware Valley 409.3 452.7 (43.4) -10%
Florida 240.4 265.2 (24.8) -9%
Illinois 347.8 381.7 (33.9) -9%
Texas - 129.6 N/A N/A
Company Average $303.2 $342.1 $(38.9) -11%
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
2008 2007 Amount %
ORDERS FOR HOMES, NET (UNITS)
Arizona 216 385 (169) -44%
California 87 152 (65) -43%
Nevada 111 239 (128) -54%
West 414 776 (362) -47%
Colorado 105 153 (48) -31%
Utah 17 41 (24) -59%
Mountain 122 194 (72) -37%
Maryland 25 36 (11) -31%
Virginia 40 81 (41) -51%
East 65 117 (52) -44%
Delaware Valley 20 23 (3) -13%
Florida 33 81 (48) -59%
Illinois 13 37 (24) -65%
Texas - - - N/A
Other Homebuilding 66 141 (75) -53%
Total 667 1,228 (561) -46%
Estimated Value of Orders for Homes,
net $182,000 $365,000 (183,000) -50%
Estimated Average Selling Price of
Orders for Homes, net $272.9 $297.2 (24.3) -8%
Cancellation Rate (8) 46% 57% -11%
Nine Months
Ended September 30, Change
2008 2007 Amount %
ORDERS FOR HOMES, NET (UNITS)
Arizona 792 1,750 (958) -55%
California 394 849 (455) -54%
Nevada 487 984 (497) -51%
West 1,673 3,583 (1,910) -53%
Colorado 385 677 (292) -43%
Utah 105 390 (285) -73%
Mountain 490 1,067 (577) -54%
Maryland 112 227 (115) -51%
Virginia 152 275 (123) -45%
East 264 502 (238) -47%
Delaware Valley 56 104 (48) -46%
Florida 215 377 (162) -43%
Illinois 26 109 (83) -76%
Texas - 14 (14) -100%
Other Homebuilding 297 604 (307) -51%
Total 2,724 5,756 (3,032) -53%
Estimated Value of Orders for Homes,
net $786,000 $1,920,000 (1,134,000) -59%
Estimated Average Selling Price of
Orders for Homes, net $288.5 $333.6 (45.1) -14%
Cancellation Rate (8) 43% 44% -1%
(8) We define "Cancellation Rate" as the approximate number of cancelled
home order contracts during a reporting period as a percent of total
home orders received during such reporting period.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
September 30, December 31, September 30,
2008 2007 2007
BACKLOG (UNITS)
Arizona 346 592 1,257
California 125 203 445
Nevada 155 307 271
West 626 1,102 1,973
Colorado 155 213 347
Utah 69 178 287
Mountain 224 391 634
Maryland 88 126 233
Virginia 53 100 195
East 141 226 428
Delaware Valley 38 57 107
Florida 86 125 193
Illinois 12 46 64
Texas - - -
Other Homebuilding 136 228 364
Total 1,127 1,947 3,399
Backlog Estimated Sales Value $364,000 $650,000 $1,210,000
Estimated Average Selling Price
of Homes in Backlog $323.0 $333.8 $356.0
ACTIVE SUBDIVISIONS
Arizona 52 66 67
California 17 41 41
Nevada 25 39 41
West 94 146 149
Colorado 49 47 52
Utah 24 23 25
Mountain 73 70 77
Maryland 12 15 16
Virginia 16 18 21
East 28 33 37
Delaware Valley 2 4 4
Florida 12 20 23
Illinois 2 5 7
Other Homebuilding 16 29 34
Total 211 278 297
Average for quarter ended 220 287 303
First Call Analyst:
FCMN Contact: bnmartin@mdch.com
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Investor Relations, Robert N. Martin of M.D.C. Holdings, Inc.,
+1-720-977-3431,
Web site: https://www.richmondamerican.com/
