News
M.D.C. Holdings, Inc. today reported results for its third quarter ended September 30, 2009. The Company announced a net loss for the quarter of $32.0 million, or $0.69 per diluted share, which included a pre-tax charge of $1.2 million for asset impairments. The 2009 third quarter net loss also included an $11.8 million increase in our deferred tax valuation allowance. The net loss for the 2008 third quarter was $118.0 million, or $2.55 per diluted share, which included a pre-tax charge of $95.4 million for asset impairments and an increase in our deferred tax valuation allowance of $61.1 million. Total revenue for the third quarter of 2009 was $203.2 million, compared with revenue of $362.7 million for the same period in 2008.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "During the third quarter, an increasing national unemployment rate overshadowed an improvement in overall homebuilding industry conditions. Our outlook remains cautious because of the employment situation and the overall uncertain state of the economy. However, we are encouraged by a year-over-year increase in our own net home orders for the second consecutive quarter."
Mizel continued, "We achieved the improvement in home orders in part due to our efforts to adapt our homes to the changing needs of our customers. During the third quarter, we continued to expand our offering of the smaller, more affordable homes that we introduced earlier this year. In addition, in an effort to improve affordability for our homebuyers, we initiated a new sales program during the quarter, which focused on providing low mortgage interest rates, and we positioned inventory to allow buyers the opportunity to close on a home prior to the impending expiration of the federal homebuyer tax credit."
"We strategically increased the number of unsold homes available for personalization in our inventory by more than 40% during the quarter, while we decreased our finished homes by more than 75%. This should help to improve our profitability, as the margins we realize on unsold homes available for personalization significantly exceed those on finished inventory. Generally, we stop construction on unsold units at the drywall stage. Once construction is restarted, these homes can close within 45 days, in direct competition with finished homes on the market. However, by holding the units at drywall, we offer our buyers the opportunity to personalize the home at one of our Home Galleries."
Mizel concluded, "After several years of relatively limited land acquisition activity, during the third quarter, we secured control of almost 1,300 lots through direct acquisitions or option contracts. With more than $1.6 billion in cash and investments available at the end of the quarter, we are well-positioned to continue making opportunistic investments as we build our land pipeline to support future home closings."
Homebuilding Highlights
Net orders for the third quarter ended September 30, 2009 totaled 1,016 homes with an estimated sales value of $271.9 million, compared with net orders for 667 homes with an estimated sales value of $182.1 million during the same period in 2008. The improvement was driven by significant increases across all of the homebuilding segments. During the third quarter of 2009, the Company's cancellation rate dropped to 23% compared with 46% during the same period in 2008, primarily due to a decrease in mortgage-related issues and a decline in the number of prospective homebuyers with a contingency to sell an existing home.
Homebuilding revenue for the 2009 third quarter fell to $200.0 million, compared with $358.1 million in the third quarter of 2008. The decline in revenue was primarily the result of a year-over-year decline in home closings and average selling price of 41% and 6%, respectively. All of our markets experienced year-over-year decreases in closings with the exception of Colorado, which experienced a 3% increase. Nearly all of our markets experienced year-over-year decreases in average selling price. However, Virginia and Delaware Valley experienced a year-over-year increase in average selling price due to a change in the size and style of homes that closed during the third quarter of 2009 compared to the same period in 2008.
Home gross margins during the third quarter of 2009 increased to 18.9% from 15.3% in the third quarter of 2008, primarily due to a $10.8 million reduction in the warranty reserve, compared with only a $3.2 million reduction in the third quarter of 2008. The third quarter 2009 warranty reserve reduction resulted from a decrease in warranty payments actually incurred and reaching a settlement on certain construction defect claims in Nevada. In addition, margins improved as a result of a decrease in the lot cost per home closed, primarily a result of prior impairments.
Homebuilding SG&A decreased to $31.0 million for the quarter ended September 30, 2009, compared with $57.7 million for the same period in the prior year. The decrease in SG&A resulted from various cost saving initiatives associated with right-sizing our operations in response to the reduced level of home closings, including a 35% reduction in homebuilding headcount over the past year. Also contributing to this decrease was a reduction in marketing expenses, primarily due to a significant reduction in sales office and model home expenses, as well as a decline in commission expenses resulting from fewer home closings and lower average selling prices.
During the third quarter of 2009, we recognized $1.2 million of asset impairments, a decrease of 99% from the $95.4 million recognized in the 2008 third quarter. Overall, the year-over-year decrease in asset impairments can be attributed to the impact of recording significant impairments over the last twelve quarters, thereby reducing our exposure to further impairments.
Financial Services and Other Highlights
Loss before taxes from the Company's Financial Services and Other segment for the quarter ended September 30, 2009 was $4.3 million compared with income of $3.4 million for the same period in 2008. The decrease primarily resulted from a $5.2 million increase in general and administrative expense for the segment, due to a $7.3 million increase in our reserves for mortgage loan losses, compared with an increase in the reserve of only $0.8 million in the third quarter of 2008. In addition, we experienced a $1.5 million decrease in gains on sales of mortgage loans and broker origination fees, as we originated and sold fewer mortgage loans in connection with closing fewer homes during the quarter.
Corporate Highlights
Loss before taxes from the Company's Corporate segment for the quarter ended September 30, 2009 was $27.4 million, compared with a loss of $21.3 million for the same period in 2008. The higher loss primarily resulted from a $5.7 million decrease in interest income, as lower interest rates offset a higher average cash balance for the quarter. Additionally, Corporate general and administrative expense increased by $2.7 million, primarily due to a $2.6 million increase in finance costs associated with the reduction of the commitment amount under our homebuilding line of credit.
Nine Month Results
Net loss for the nine months ended September 30, 2009 was $102.5 million, or $2.20 per diluted share, which included pre-tax charges of $17.0 million for asset impairments. The net loss for the nine months ended September 30, 2009 also included a $44.8 million increase in our deferred tax valuation allowance, of which $9.7 million related to a 2006 alternative minimum tax liability associated with our 2008 net operating loss carry back. The net loss for the first nine months of 2008 was $291.5 million, or $6.32 per diluted share, which included a pre-tax charge of $238.5 million for asset impairments and an increase of $115.1 million to our deferred tax asset valuation allowance.
About MDC
Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 160,000 families. 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 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'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 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 Form 10-Q for the quarter September 30, 2009, 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. 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,
------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue
Home sales revenue $186,816 $336,744 $539,352 $1,074,629
Land sales revenue 9,414 15,850 13,986 56,699
Other revenue 6,996 10,107 21,086 30,573
----- ------ ------ ------
Total Revenue 203,226 362,701 574,424 1,161,901
------- ------- ------- ---------
Costs and Expenses
Home cost of sales 151,596 285,367 445,039 937,947
Land cost of sales 9,433 14,775 12,274 49,559
Asset impairments, net 1,197 95,388 17,009 238,498
Marketing expenses 9,631 18,797 26,393 58,350
Commission expenses 6,808 12,297 20,119 40,389
General and
administrative expenses 45,800 50,010 121,981 145,120
Other operating expenses 3,594 1,586 4,151 5,156
Related party expenses 5 3 14 13
-- -- -- --
Total Operating Costs
and Expenses 228,064 478,223 646,980 1,475,032
------- ------- ------- ---------
Loss from Operations (24,838) (115,522) (72,556) (313,131)
------- -------- ------- --------
Other income (expense)
Interest income 2,724 9,315 9,763 28,338
Interest expense (9,760) (10,775) (29,338) (10,985)
Other income 56 8 177 38
-- -- --- --
Loss Before Taxes (31,818) (116,974) (91,954) (295,740)
------- -------- ------- --------
(Provision for) benefit from
income taxes, net (230) (997) (10,529) 4,223
---- ---- ------- -----
NET LOSS $(32,048) $(117,971) $(102,483) $(291,517)
======== ========= ========= =========
LOSS PER SHARE
Basic $(0.69) $(2.55) $(2.20) $(6.32)
====== ====== ====== ======
Diluted $(0.69) $(2.55) $(2.20) $(6.32)
====== ====== ====== ======
WEIGHTED-AVERAGE SHARES
OUTSTANDING
Basic 46,597 46,219 46,515 46,094
====== ====== ====== ======
Diluted 46,597 46,219 46,515 46,094
====== ====== ====== ======
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,
2009 2008
---- ----
Assets
Cash and cash equivalents $1,448,875 $1,304,728
Marketable securities 151,260 54,864
Unsettled trades, net 2,133 57,687
Restricted cash 933 670
Receivables
Home sales receivables 14,283 17,104
Income taxes receivable 3,119 170,753
Other receivables 9,981 16,697
Mortgage loans held-for-
sale, net 42,704 68,604
Inventories, net
Housing completed or under
construction 325,257 415,500
Land and land under
development 177,888 221,822
Property and equipment, net 37,721 38,343
Deferred tax asset, net of
valuation allowance - -
Related party assets 28,839 28,627
Prepaid expenses and other
assets, net 77,524 79,539
------ ------
Total Assets $2,320,517 $2,474,938
========== ==========
Liabilities
Accounts payable $45,910 $28,793
Accrued liabilities 309,457 332,825
Mortgage repurchase facility 13,010 34,873
Senior notes, net 997,872 997,527
------- -------
Total Liabilities 1,366,249 1,394,018
--------- ---------
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; 47,025,000 and
46,972,000 issued and
outstanding, respectively, at
September 30, 2009 and
46,715,000 and 46,666,000
issued and outstanding,
respectively,
at December 31, 2008 470 467
Additional paid-in-capital 799,215 788,207
Retained earnings 155,242 292,905
Treasury stock, at cost;
53,000 and 49,000 shares at
September 30, 2009 and
December 31, 2008,
respectively (659) (659)
---- ----
Total Stockholders' Equity 954,268 1,080,920
------- ---------
Total Liabilities and
Stockholders' Equity $2,320,517 $2,474,938
========== ==========
M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
REVENUE
Homebuilding
West $94,079 $194,750 $250,519 $639,066
Mountain 61,945 72,565 163,720 230,452
East 33,033 61,950 113,004 192,796
Other Homebuilding 10,909 28,829 37,709 84,918
------ ------ ------ ------
Total Homebuilding 199,966 358,094 564,952 1,147,232
Financial Services and
Other 6,578 8,497 19,147 25,341
Corporate - 173 50 550
Inter-company adjustments (3,318) (4,063) (9,725) (11,222)
------ ------ ------ -------
Consolidated $203,226 $362,701 $574,424 $1,161,901
======== ======== ======== ==========
(LOSS) INCOME BEFORE INCOME
TAXES
Homebuilding
West $6,037 $(47,741) $5,809 $(142,723)
Mountain (1,681) (30,085) (8,800) (80,720)
East (1,707) (17,444) (8,704) (32,523)
Other Homebuilding (2,724) (3,798) (4,232) (14,850)
------ ------ ------ -------
Total Homebuilding (75) (99,068) (15,927) (270,816)
Financial Services and
Other (4,344) 3,414 (108) 8,119
Corporate (27,399) (21,320) (75,919) (33,043)
------- ------- ------- -------
Consolidated $(31,818) $(116,974) $(91,954) $(295,740)
======== ========= ======== =========
INVENTORY IMPAIRMENTS
West $283 $49,258 $12,793 $135,921
Mountain 191 25,195 445 59,249
East - 13,126 2,475 23,667
Other Homebuilding 629 3,241 913 10,871
--- ----- --- ------
Consolidated $1,103 $90,820 $16,626 $229,708
====== ======= ======= ========
September 30, December 31,
2009 2008
---- ----
TOTAL ASSETS
Homebuilding
West $204,146 $255,652
Mountain 245,639 288,221
East 115,466 151,367
Other Homebuilding 24,569 38,179
------ ------
Total Homebuilding 589,820 733,419
Financial Services and Other 116,629 139,569
Corporate 1,660,025 1,647,907
Inter-company adjustments (45,957) (45,957)
------- -------
Consolidated $2,320,517 $2,474,938
========== ==========
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
------------------- ----------------
2009 2008 Amount %
---- ---- ---------- ----
SELECTED FINANCIAL DATA
General and Administrative
Expenses
Homebuilding $14,579 $26,654 $(12,075) -45%
Financial Services and Other 11,303 6,131 $5,172 84%
Corporate (1) 19,923 17,228 $2,695 16%
------ ------ ------
Total $45,805 $50,013 $(4,208) -8%
======= ======= =======
SG&A as a % of Home Sales Revenue
Homebuilding Segments 16.6% 17.1% -0.5%
Corporate Segment (1) 10.7% 5.1% 5.6%
Depreciation and
Amortization (2) $3,404 $8,902 $(5,498) -62%
Home Gross Margins (3) 18.9% 15.3% 3.6%
Interest in Home Cost of
Sales as a % of Home
Sales Revenue -3.8% -2.9% -0.9%
Cash Provided by (Used in)
Operating Activities $(7,312) $106,046 $(113,358) -107%
Investing Activities $(80,881) $(210,199) $129,318 -62%
Financing Activities $(22,757) $(31,796) $9,039 -28%
Corporate and Homebuilding
Interest
Interest capitalized,
beginning of period $32,089 $49,674 $(17,585) -35%
Interest capitalized, net of
interest expense $4,810 $3,749 $1,061 28%
Previously capitalized
interest included
in home cost of sales $(7,142) $(9,689) $2,547 -26%
Interest capitalized, end of
period $29,757 $43,734 $(13,977) -32%
Nine Months
Ended September 30, Change
------------------- ----------------
2009 2008 Amount %
------ ----- ---------- -----
SELECTED FINANCIAL DATA
General and
Administrative Expenses
Homebuilding $46,264 $79,059 $(32,795) -41%
Financial Services and
Other 20,646 20,199 $447 2%
Corporate (1) 55,085 45,875 $9,210 20%
------ ------ ------
Total $121,995 $145,133 $(23,138) -16%
======== ======== ========
SG&A as a % of Home
Sales Revenue
Homebuilding Segments 17.2% 16.5% 0.7%
Corporate Segment (1) 10.2% 4.3% 5.9%
Depreciation and
Amortization (2) $10,128 $26,860 $(16,732) -62%
Home Gross Margins (3) 17.5% 12.7% 4.8%
Interest in Home Cost of
Sales as a % of Home
Sales Revenue -4.4% -3.9% -0.5%
Cash Provided by
(Used in)
Operating Activities $244,506 $428,349 $(183,843) -43%
Investing Activities $(46,938) $(210,315) $163,377 -78%
Financing Activities $(53,421) $(61,929) $8,508 -14%
Corporate and Homebuilding
Interest
Interest capitalized,
beginning of period $39,239 $53,487 $(14,248) -27%
Interest capitalized,
net of interest expense $14,354 $32,666 $(18,312) -56%
Previously capitalized
interest included in
home cost of sales $(23,836) $(42,419) $18,583 -44%
Interest capitalized,
end of period $29,757 $43,734 $(13,977) -32%
(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
months ended September 30, 2009 and September 30, 2008, we closed
homes on lots for which we had previously recorded $45.8 million and
$68.5 million, respectively, of asset impairments. During the nine
months ended September 30, 2009 and September 30, 2008, we closed
homes on lots for which we had previously recorded $136.4 million and
$182.1 million, respectively, of asset impairments.
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
------------------- ------------------
2009 2008 Amount %
---- ---- ---------- -----
HOMEAMERICAN OPERATING
ACTIVITIES
Principal amount of mortgage
loans originated $137,990 $198,780 $(60,790) -31%
Principal amount of mortgage
loans brokered $6,136 $34,977 $(28,841) -82%
Capture Rate 84% 71% 13%
Including brokered
loans 87% 82% 5%
Mortgage products (% of
mortgage loans originated)
Fixed rate 100% 97% 3%
Adjustable rate -
interest only 0% 0% 0%
Adjustable rate -
other 0% 3% -3%
Prime loans (4) 28% 46% -18%
Government loans (5) 72% 54% 18%
Nine Months
Ended September 30, Change
------------------- ------------------
2009 2008 Amount %
---- ---- ---------- -----
HOMEAMERICAN OPERATING
ACTIVITIES
Principal amount of mortgage
loans originated $406,688 $576,565 $(169,877) -29%
Principal amount of mortgage
loans brokered $25,131 $141,147 $(116,016) -82%
Capture Rate 84% 65% 19%
Including brokered
loans 89% 78% 11%
Mortgage products (% of
mortgage loans originated)
Fixed rate 100% 97% 3%
Adjustable rate -
interest only 0% 1% -1%
Adjustable rate -
other 0% 2% -2%
Prime loans (4) 32% 51% -19%
Government loans (5) 68% 49% 19%
(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) Government loans are loans either insured by the Federal Housing
Administration or guaranteed by the Department of Veteran Affairs.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
September 30, December 31, September 30,
2009 2008 2008
---- ---- ----
HOMES COMPLETED OR UNDER
CONSTRUCTION
Unsold Home Under
Construction - Final 19 451 364
Unsold Home Under
Construction - Frame 298 329 495
Unsold Home Under
Construction - Foundation 226 41 123
--- -- ---
Total Unsold Homes
Under Construction 543 821 982
Sold Homes Under
Construction 1,073 409 852
Model Homes 215 387 428
--- --- ---
Homes Completed or
Under Construction 1,831 1,617 2,262
===== ===== =====
LOTS OWNED (excluding homes
completed or under construction)
Arizona 1,303 1,458 1,612
California 721 839 873
Nevada 706 1,111 934
--- ----- ---
West 2,730 3,408 3,419
----- ----- -----
Colorado 2,345 2,597 2,638
Utah 469 642 731
--- --- ---
Mountain 2,814 3,239 3,369
----- ----- -----
Delaware Valley 91 115 117
Maryland 131 176 192
Virginia 161 241 256
--- --- ---
East 383 532 565
--- --- ---
Florida 196 257 254
Illinois 141 141 155
--- --- ---
Other Homebuilding 337 398 409
--- --- ---
Total 6,264 7,577 7,762
===== ===== =====
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
September 30, December 31, September 30,
2009 2008 2008
---- ---- ----
LOTS CONTROLLED UNDER OPTION
Arizona 413 472 431
California 46 149 149
Nevada 87 95 101
-- -- ---
West 546 716 681
--- --- ---
Colorado 532 184 183
Utah 143 - -
--- --- ---
Mountain 675 184 183
--- --- ---
Delaware Valley - 40 82
Maryland 528 355 349
Virginia 278 592 1,050
--- --- -----
East 806 987 1,481
--- --- -----
Florida 299 471 407
Illinois - - -
--- --- ---
Other Homebuilding 299 471 407
--- --- ---
Total 2,326 2,358 2,752
===== ===== =====
NON-REFUNDABLE OPTION DEPOSITS
Cash $5,430 $5,145 $5,004
Letters of Credit 2,702 4,358 $4,913
----- ----- ------
Total Non-Refundable
Option Deposits $8,132 $9,503 $9,917
====== ====== ======
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Nine
Months Months
Ended Ended
September 30, Change September 30, Change
----------- ------------ ------------- ------------
2009 2008 Amount % 2009 2008 Amount %
---- ---- ------- ---- ---- ---- ------- ----
HOMES CLOSED
(UNITS)
Arizona 152 307 (155) -50% 505 1,038 (533) -51%
California 80 155 (75) -48% 191 472 (281) -60%
Nevada 106 210 (104) -50% 294 639 (345) -54%
--- --- ---- --- --- ----
West 338 672 (334) -50% 990 2,149 (1,159) -54%
--- --- ---- --- ----- ------
Colorado 159 155 4 3% 363 443 (80) -18%
Utah 40 54 (14) -26% 136 214 (78) -36%
-- -- --- --- --- ---
Mountain 199 209 (10) -5% 499 657 (158) -24%
--- --- --- --- --- ----
Delaware Valley 12 24 (12) -50% 42 75 (33) -44%
Maryland 25 55 (30) -55% 90 150 (60) -40%
Virginia 34 60 (26) -43% 120 199 (79) -40%
-- -- --- --- --- ---
East 71 139 (68) -49% 252 424 (172) -41%
-- --- --- --- --- ----
Florida 48 70 (22) -31% 141 254 (113) -44%
Illinois 3 26 (23) -88% 22 60 (38) -63%
-- -- --- -- -- ---
Other
Homebuilding 51 96 (45) -47% 163 314 (151) -48%
-- -- --- --- --- ----
Total 659 1,116 (457) -41% 1,904 3,544 (1,640) -46%
=== ===== ==== ===== ===== ======
AVERAGE SELLING PRICES
PER HOME CLOSED
Arizona $193.6 $206.2 $(12.6) -6% $194.8 $220.2 $(25.4) -12%
California 417.0 435.5 (18.5) -4% 410.3 422.4 (12.1) -3%
Colorado 317.3 346.4 (29.1) -8% 333.7 348.6 (14.9) -4%
Delaware Valley 429.5 395.5 34.0 9% 418.0 409.3 8.7 2%
Florida 208.2 240.1 (31.9) -13% 217.9 240.4 (22.5) -9%
Illinois 294.0 351.7 (57.7) -16% 313.0 347.8 (34.8) -10%
Maryland 405.7 442.0 (36.3) -8% 405.4 459.3 (53.9) -12%
Nevada 204.6 243.3 (38.7) -16% 206.4 246.2 (39.8) -16%
Utah 283.1 331.4 (48.3) -15% 295.2 336.4 (41.2) -12%
Virginia 521.1 458.5 62.6 14% 490.6 459.5 31.1 7%
Company
Average $283.5 $301.7 $(18.2) -6% $283.3 $303.2 $(19.9) -7%
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended September 30, Change
------------------- --------------------
2009 2008 Amount %
---- ---- ---------- ------
ORDERS FOR HOMES, NET (UNITS)
Arizona 227 216 11 5%
California 75 87 (12) -14%
Nevada 214 111 103 93%
--- --- ---
West 516 414 102 25%
--- --- ---
Colorado 197 105 92 88%
Utah 102 17 85 500%
--- -- --
Mountain 299 122 177 145%
--- --- ---
Delaware Valley 13 20 (7) -35%
Maryland 53 25 28 112%
Virginia 61 40 21 53%
-- -- --
East 127 85 42 49%
--- -- --
Florida 71 33 38 115%
Illinois 3 13 (10) -77%
-- -- ---
Other Homebuilding 74 46 28 61%
-- -- --
Total 1,016 667 349 52%
===== === ===
Estimated Value of Orders for
Homes, net $272,000 $182,000 $90,000 49%
Estimated Average Selling
Price of Orders for Homes, net $267.7 $272.9 $(5.2) -2%
Cancellation Rate(6) 23% 46% -23%
Nine Months
Ended September 30, Change
-------------------- -------------------
2009 2008 Amount %
---- ---- ---------- -----
ORDERS FOR HOMES, NET (UNITS)
Arizona 599 792 (193) -24%
California 262 394 (132) -34%
Nevada 462 487 (25) -5%
--- --- ---
West 1,323 1,673 (350) -21%
----- ----- ----
Colorado 537 385 152 39%
Utah 229 105 124 118%
--- --- ---
Mountain 766 490 276 56%
--- --- ---
Delaware Valley 46 56 (10) -18%
Maryland 144 112 32 29%
Virginia 178 152 26 17%
--- --- --
East 368 320 48 15%
--- --- --
Florida 193 215 (22) -10%
Illinois 19 26 (7) -27%
-- -- --
Other Homebuilding 212 241 (29) -12%
--- --- ---
Total 2,669 2,724 (55) -2%
===== ===== ===
Estimated Value of Orders for
Homes, net $752,000 $785,000 $(33,000) -4%
Estimated Average Selling
Price of Orders for Homes, net $281.8 $288.2 $(6.4) -2%
Cancellation Rate(6) 22% 43% -21%
(6) 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,
2009 2008 2008
---- ---- ----
BACKLOG (UNITS)
Arizona 252 158 346
California 120 49 125
Nevada 221 53 155
--- -- ---
West 593 260 626
--- --- ---
Colorado 246 72 155
Utah 135 42 69
--- -- --
Mountain 381 114 224
--- --- ---
Delaware Valley 31 27 38
Maryland 112 58 88
Virginia 94 36 53
-- -- --
East 237 121 179
--- --- ---
Florida 87 35 86
Illinois - 3 12
-- -- --
Other Homebuilding 87 38 98
-- -- --
Total 1,298 533 1,127
===== === =====
Backlog Estimated Sales Value $383,000 $173,000 $364,000
======== ======== ========
Estimated Average Selling Price
of Homes in Backlog $295.1 $324.6 $323.0
====== ====== ======
ACTIVE SUBDIVISIONS
Arizona 30 44 52
California 5 18 17
Nevada 20 24 25
-- -- --
West 55 86 94
-- -- --
Colorado 41 49 49
Utah 17 22 24
-- -- --
Mountain 58 71 73
-- -- --
Delaware Valley 1 3 2
Maryland 8 11 12
Virginia 7 12 16
-- -- --
East 16 26 30
-- -- --
Florida 8 7 12
Illinois - 1 2
-- -- --
Other Homebuilding 8 8 14
-- -- --
Total 137 191 211
=== === ===
Average for quarter ended 140 202 219
=== === ===
First Call Analyst:
FCMN Contact: bnmartin@mdch.com
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Robert N. Martin, Investor Relations of M.D.C. Holdings, Inc.,
+1-720-977-3431,
Web Site: http://www.mdcholdings.com/
