News
M.D.C. Holdings, Inc.
For the six months ended June 30, 2010, net loss was $24.6 million, or $0.53 per diluted share, compared with a net loss for the six months ended June 30, 2009 of $70.4 million, or $1.52 per diluted share.
Management Comments
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "During the second quarter, we successfully executed a strategy designed to capture homebuyer demand in advance of the expiration of the federal homebuyer tax credit, resulting in an increase in our home orders year-over-year for the fifth consecutive quarter. In addition, we are pleased to report strong top-line growth, with revenues up 67% year-over-year on the strength of a 71% increase in home closings."
Mizel continued, "Over the past twelve months, we have secured control of 157 new communities across the country, including 36 in the second quarter alone. These subdivisions provide us with a strong platform for future growth. However, our outlook remains cautious given the industry-wide slowdown in new home orders in the second quarter immediately following the expiration of the federal homebuyer tax credit and the uncertainty surrounding overall economic conditions."
Mizel concluded, "With more than $1.6 billion in cash and investments at the end of the quarter, we are well-positioned to adapt to changing industry conditions. Even if homebuilding activity remains subdued, we will continue to focus our attention on long-term shareowner value through the pursuit and implementation of improvements to our business processes that will enhance our performance in the future."
Highlights
Home closings for the second quarter ended June 30, 2010 improved to 1,135 homes with an average selling price of $274,300, compared with home closings of 665 units with an average selling price of $279,000 during the same period in 2009. The improvement in closings is attributable to a beginning backlog of 1,234 units compared to 629 units in backlog to begin the second quarter of 2009. Total revenue for the second quarter of 2010 was $326.3 million, compared with revenue of $195.3 million for the same period in 2009. The increase in revenue was primarily driven by a 71% increase in home closings, partially offset by the 2% year-over-year decrease in average selling price.
Net orders for the second quarter ended June 30, 2010 improved to 1,015 homes with an estimated sales value of $281 million, compared with net orders for 977 homes with an estimated sales value of $289 million during the same period in 2009. The improvement in net orders is attributable to a 25% increase in the average rate of sales per active community, partially offset by a 17% decline in the average number of active communities. During the second quarter of 2010, the Company's cancellation rate increased to 25% compared with 20% during the same period in 2009. We ended the 2010 second quarter with 1,114 homes under contract with an estimated sales value of $351 million, compared with a backlog of 941 homes with an estimated sales value of $295 million at June 30, 2009.
Home gross margin in the 2010 second quarter was 18.1%, virtually unchanged as compared with 18.0% in the 2009 second quarter. However, excluding interest expense and warranty adjustments, home gross margin increased to 20.2% in the second quarter of 2010 as compared with 16.8% in the second quarter of 2009. The improvement was primarily the result of an increase in net option revenue, relative to home sales revenue, combined with a reduction in construction costs relative to home sales revenue. Both the increase in average upgrade revenue and the decrease in construction costs were driven by the Company's efforts to build smaller, more efficient homes that can be personalized based on homebuyer preference. These improvements partially were offset by an increase in land costs relative to home sales revenue from 12.3% in the 2009 second quarter to 20.6% in the 2010 second quarter.
SG&A increased to $67.7 million for the quarter ended June 30, 2010, compared with $52.7 million for the same period in the prior year. The increase was driven primarily by an $8.2 million increase in marketing and commissions costs directly related to the increased closings, combined with a $6.8 million increase in general and administrative costs associated with increased salaries and benefits. No asset impairments were incurred during the quarter, compared with $1.2 million incurred in the second quarter of 2009.
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) changes in the market value of the Company's investments in marketable securities; (5) the relative stability of debt and equity markets; (6) competition; (7) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (8) the availability and cost of performance bonds and insurance covering risks associated with our business; (9) shortages and the cost of labor; (10) weather related slowdowns; (11) slow growth initiatives; (12) building moratoria; (13) governmental regulation, including the interpretation of tax, labor and environmental laws; (14) changes in consumer confidence and preferences; (15) terrorist acts and other acts of war; and (16) 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 ended June 30, 2010, 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 Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 --- --- --- --- Revenue Home sales revenue $311,276 $185,554 $452,219 $352,536 Land sales revenue 5,699 1,954 5,714 4,572 Other revenue 9,355 7,758 15,475 14,090 ----- ----- ------ ------ Total Revenue 326,330 195,266 473,408 371,198 ------- ------- ------- ------- Costs and Expenses Home cost of sales 255,062 152,118 364,452 293,443 Land cost of sales 4,974 1,500 5,165 2,841 Asset impairments, net - 1,243 - 15,812 Marketing expenses 11,475 7,930 18,535 16,762 Commission expenses 11,611 6,953 16,740 13,311 General and administrative expenses 44,588 37,800 84,791 76,181 Other operating expenses 529 292 1,020 557 Related party expenses - 4 9 9 --- --- --- --- Total Operating Costs and Expenses 328,239 207,840 490,712 418,916 ------- ------- ------- ------- Loss from Operations (1,909) (12,574) (17,304) (47,718) ------ ------- ------- ------- Other income (expense) Interest income 7,541 2,968 11,969 7,039 Interest expense (9,436) (9,838) (19,810) (19,578) Other income 105 381 204 121 --- --- --- --- Loss Before Taxes (3,699) (19,063) (24,941) (60,136) ------ ------- ------- ------- Benefit from (provision for) income taxes, net 15 (10,519) 384 (10,299) --- ------- --- ------- NET LOSS $(3,684) $(29,582) $(24,557) $(70,435) ======= ======== ======== ======== LOSS PER SHARE Basic $(0.08) $(0.64) $(0.53) $(1.52) ====== ====== ====== ====== Diluted $(0.08) $(0.64) $(0.53) $(1.52) ====== ====== ====== ====== DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $0.50 $0.50 ===== ===== ===== ===== M.D.C. HOLDINGS, INC. Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) December June 30, 31, 2010 2009 --- --- Assets Cash and cash equivalents $692,132 $1,234,252 Marketable securities 941,403 327,944 Restricted cash 713 476 Receivables Home sales receivables 34,096 10,056 Income taxes receivable 641 145,144 Other receivables 17,412 5,844 Mortgage loans held-for-sale, net 112,065 62,315 Inventories, net Housing completed or under construction 382,971 260,324 Land and land under development 370,352 262,860 Property and equipment, net 41,188 38,421 Deferred tax asset, net of valuation allowance of $217,455 and $208,144 at June 30, 2010 and December 31, 2009, respectively - - Related party assets 7,856 7,856 Prepaid expenses and other assets, net 80,369 73,816 ------ ------ Total Assets $2,681,198 $2,429,308 ========== ========== Liabilities Accounts payable $51,888 $36,087 Accrued liabilities 289,614 291,969 Related party liabilities 86 1,000 Mortgage repurchase facility 65,305 29,115 Senior notes, net 1,242,325 997,991 --------- ------- Total Liabilities 1,649,218 1,356,162 --------- --------- 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; 47,194,000 and 47,138,000 issued and outstanding, respectively, at June 30, 2010 and 47,070,000 and 47,017,000 issued and outstanding, respectively, at December 31, 2009 472 471 Additional paid-in-capital 810,929 802,675 Retained earnings 222,532 270,659 Accumulated other comprehensive loss (1,294) - Treasury stock, at cost; 56,000 and 53,000 shares at June 30, 2010 and December 31, 2009, respectively (659) (659) ---- ---- Total Stockholders' Equity 1,031,980 1,073,146 --------- --------- Total Liabilities and Stockholders' Equity $2,681,198 $2,429,308 ========== ========== M.D.C. HOLDINGS, INC. Information on Segments (Dollars in thousands) (Unaudited) Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 --- --- --- --- REVENUE Homebuilding West $123,193 $81,758 $180,330 $156,440 Mountain 110,112 57,658 156,794 101,775 East 72,657 39,479 104,162 79,971 Other Homebuilding 16,757 13,117 25,793 26,800 ------ ------ ------ ------ Total Homebuilding 322,719 192,012 467,079 364,986 Financial Services and Other 9,143 7,006 14,764 12,569 Corporate - - - 50 Inter-company adjustments (5,532) (3,752) (8,435) (6,407) ------ ------ ------ ------ Consolidated $326,330 $195,266 $473,408 $371,198 ======== ======== ======== ======== (LOSS) INCOME BEFORE INCOME TAXES Homebuilding West $6,357 $10,075 $8,711 $(228) Mountain 4,962 (2,308) 6,132 (7,119) East 1,455 (4,626) (64) (6,997) Other Homebuilding 295 (677) (224) (1,508) --- ---- ---- ------ Total Homebuilding 13,069 2,464 14,555 (15,852) Financial Services and Other 4,089 2,615 5,935 4,236 Corporate (20,857) (24,142) (45,431) (48,520) ------- ------- ------- ------- Consolidated $(3,699) $(19,063) $(24,941) $(60,136) ======= ======== ======== ======== INVENTORY IMPAIRMENTS West $- $(557) $- $12,510 Mountain - - - 254 East - 1,725 - 2,475 Other Homebuilding - - - 284 --- --- --- --- Consolidated $- $1,168 $- $15,523 === ====== === ======= June 30, December 31, 2010 2009 ---- ---- TOTAL ASSETS Homebuilding West $300,848 $190,204 Mountain 328,696 237,702 East 170,525 112,964 Other Homebuilding 36,457 26,778 ------ ------ Total Homebuilding 836,526 567,648 Financial Services and Other 183,478 133,957 Corporate 1,663,851 1,773,660 Inter-company adjustments (2,657) (45,957) ------ ------- Consolidated $2,681,198 $2,429,308 ========== ========== M.D.C. HOLDINGS, INC. Selected Financial Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change -------------- ------ 2010 2009 Amount % --- --- ------ -- SELECTED FINANCIAL DATA General and Administrative Expenses Homebuilding $20,489 $15,906 $4,583 29% Financial Services and Other 5,658 4,845 $813 17% Corporate (1) 18,441 17,053 $1,388 8% ------ ------ ------ Total $44,588 $37,804 $6,784 18% ======= ======= ====== SG&A as a % of Home Sales Revenue Homebuilding Segments 14.0% 16.6% -2.6% Corporate Segment (1) 5.9% 9.2% -3.3% Depreciation and Amortization (2) $5,169 $2,831 $2,338 83% Home Gross Margins (3) 18.1% 18.0% 0.1% Interest in Home Cost of Sales as a % of Home Sales Revenue -2.6% -4.7% 2.1% Cash Provided by (Used in) Operating Activities $(190,450) $12,325 $(202,775) Investing Activities $(116,380) $(48,747) $(67,633) Financing Activities $48,823 $11,616 $37,207 Corporate and Homebuilding Interest Interest capitalized, beginning of period $31,773 $36,050 $(4,277) -12% Interest capitalized, net of interest expense $8,849 $4,700 $4,149 88% Previously capitalized interest included in home cost of sales $(8,202) $(8,661) $459 -5% Interest capitalized, end of period $32,420 $32,089 $331 1% Six Months Ended June 30, Change -------------- ------ 2010 2009 Amount % --- --- ------ -- SELECTED FINANCIAL DATA General and Administrative Expenses Homebuilding $38,215 $31,685 $6,530 21% Financial Services and Other 9,746 9,343 $403 4% Corporate (1) 36,839 35,162 $1,677 5% ------ ------ ------ Total $84,800 $76,190 $8,610 11% ======= ======= ====== SG&A as a % of Home Sales Revenue Homebuilding Segments 16.3% 17.5% -1.2% Corporate Segment (1) 8.1% 10.0% -1.9% Depreciation and Amortization (2) $8,101 $6,724 $1,377 20% Home Gross Margins (3) 19.4% 16.8% 2.6% Interest in Home Cost of Sales as a % of Home Sales Revenue -2.5% -4.7% 2.2% Cash Provided by (Used in) Operating Activities $(178,934) $251,818 $(430,752) Investing Activities $(618,147) $33,943 $(652,090) Financing Activities $254,961 $(30,664) $285,625 Corporate and Homebuilding Interest Interest capitalized, beginning of period $28,339 $39,239 $(10,900) -28% Interest capitalized, net of interest expense $15,485 $9,544 $5,941 62% Previously capitalized interest included in home cost of sales $(11,404) $(16,694) $5,290 -32% Interest capitalized, end of period $32,420 $32,089 $331 1% (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 June 30, 2010 and June 30, 2009, we closed homes on lots for which we had previously recorded $50.7 million and $47.4 million, respectively, of asset impairments. During the six months ended June 30, 2010 and June 30, 2009, we closed homes on lots for which we had previously recorded $81.7 million and $90.6 million, respectively, of asset impairments. M.D.C. HOLDINGS, INC. Selected Financial Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change -------------- ------ 2010 2009 Amount % --- --- ------ -- HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage loans originated $240,693 $142,191 $98,502 69% Principal amount of mortgage loans brokered $882 $6,030 $(5,148) -85% Capture Rate 87% 82% 5% Including brokered loans 88% 85% 3% Mortgage products (% of mortgage loans originated) Fixed rate 97% 100% -3% Adjustable rate - other 3% 0% 3% Prime loans (4) 26% 27% -1% Government loans (5) 74% 73% 1% Six Months Ended June 30, Change -------------- ------ 2010 2009 Amount % --- --- ------ -- HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage loans originated $348,783 $268,698 $80,085 30% Principal amount of mortgage loans brokered $3,738 $18,995 $(15,257) -80% Capture Rate 86% 80% 6% Including brokered loans 87% 85% 2% Mortgage products (% of mortgage loans originated) Fixed rate 96% 100% -4% Adjustable rate - other 4% 0% 4% Prime loans (4) 25% 34% -9% Government loans (5) 75% 66% 9% (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) December June 30, 31, June 30, 2010 2009 2009 --- --- --- HOMES COMPLETED OR UNDER CONSTRUCTION Unsold Home Under Construction - Final 47 41 82 Unsold Home Under Construction - Frame 720 389 248 Unsold Home Under Construction - Foundation 124 109 122 --- --- --- Total Unsold Homes Under Construction 891 539 452 Sold Homes Under Construction 865 570 664 Model Homes 226 212 246 --- --- --- Homes Completed or Under Construction 1,982 1,321 1,362 ===== ===== ===== LOTS OWNED (excluding homes completed or under construction) Arizona 1,165 1,075 1,247 California 1,130 581 618 Nevada 681 966 936 --- --- --- West 2,976 2,622 2,801 ----- ----- ----- Colorado 2,893 2,514 2,541 Utah 569 545 568 --- --- --- Mountain 3,462 3,059 3,109 ----- ----- ----- Delaware Valley 55 82 101 Maryland 144 100 169 Virginia 371 241 210 --- --- --- East 570 423 480 --- --- --- Florida 184 138 213 Illinois 134 141 141 --- --- --- Other Homebuilding 318 279 354 --- --- --- Total 7,326 6,383 6,744 ===== ===== ===== M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (Unaudited) December June 30, 31, June 30, 2010 2009 2009 --- --- --- LOTS CONTROLLED UNDER OPTION Arizona 499 328 416 California 152 113 145 Nevada 570 222 95 --- --- --- West 1,221 663 656 ----- --- --- Colorado 644 537 157 Utah 156 117 12 --- --- --- Mountain 800 654 169 --- --- --- Delaware Valley - - - Maryland 655 575 409 Virginia 272 192 251 --- --- --- East 927 767 660 --- --- --- Florida 658 500 486 Illinois - - - --- --- --- Other Homebuilding 658 500 486 --- --- --- Total 3,606 2,584 1,971 ===== ===== ===== NON-REFUNDABLE OPTION DEPOSITS Cash $7,933 $7,654 $5,295 Letters of Credit 2,727 2,134 3,383 ----- ----- ----- Total Non-Refundable Option Deposits $10,660 $9,788 $8,678 ======= ====== ====== M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change ---------- ------ 2010 2009 Amount % --- --- ------ -- HOMES CLOSED (UNITS) Arizona 242 181 61 34% California 68 52 16 31% Nevada 221 114 107 94% --- --- --- West 531 347 184 53% --- --- --- Colorado 230 113 117 104% Utah 147 56 91 163% --- --- --- Mountain 377 169 208 123% --- --- --- Delaware Valley 12 11 1 9% Maryland 75 39 36 92% Virginia 68 45 23 51% --- --- --- East 155 95 60 63% --- --- --- Florida 72 44 28 64% Illinois - 10 (10) -100% --- --- --- Other Homebuilding 72 54 18 33% --- --- --- Total 1,135 665 470 71% ===== === === AVERAGE SELLING PRICES PER HOME CLOSED Arizona $190.7 $197.9 $(7.2) -4% California 444.7 414.0 30.7 7% Colorado 303.0 341.7 (38.7) -11% Delaware Valley 377.1 393.6 (16.5) -4% Florida 227.3 227.1 0.2 0% Illinois - 312.1 N/A N/A Maryland 476.2 381.7 94.5 25% Nevada 187.2 210.3 (23.1) -11% Utah 274.7 301.5 (26.8) -9% Virginia 476.2 451.3 24.9 6% Company Average $274.3 $279.0 $(4.7) -2% Six Months Ended June 30, Change ---------- ------ 2010 2009 Amount % --- --- ------ -- HOMES CLOSED (UNITS) Arizona 350 353 (3) -1% California 114 111 3 3% Nevada 319 188 131 70% --- --- --- West 783 652 131 20% --- --- --- Colorado 338 204 134 66% Utah 199 96 103 107% --- --- --- Mountain 537 300 237 79% --- --- --- Delaware Valley 16 30 (14) -47% Maryland 101 65 36 55% Virginia 108 86 22 26% --- --- --- East 225 181 44 24% --- --- --- Florida 113 93 20 22% Illinois - 19 (19) -100% --- --- --- Other Homebuilding 113 112 1 1% --- --- --- Total 1,658 1,245 413 33% ===== ===== === AVERAGE SELLING PRICES PER HOME CLOSED Arizona $194.7 $195.3 $(0.6) 0% California 407.3 405.6 1.7 0% Colorado 302.0 346.4 (44.4) -13% Delaware Valley 366.4 413.4 (47.0) -11% Florida 224.8 223.0 1.8 1% Illinois - 316.0 N/A N/A Maryland 462.9 405.2 57.7 14% Nevada 187.8 207.4 (19.6) -9% Utah 274.4 300.3 (25.9) -9% Virginia 476.8 478.5 (1.7) 0% Company Average $272.7 $283.2 $(10.5) -4% M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change -------------- ------ 2010 2009 Amount % --- --- ------ -- ORDERS FOR HOMES, NET (UNITS) Arizona 184 214 (30) -14% California 109 112 (3) -3% Nevada 195 153 42 27% --- --- --- West 488 479 9 2% --- --- --- Colorado 232 206 26 13% Utah 110 86 24 28% --- --- --- Mountain 342 292 50 17% --- --- --- Delaware Valley 2 19 (17) -89% Maryland 60 54 6 11% Virginia 76 61 15 25% --- --- --- East 138 134 4 3% --- --- --- Florida 47 64 (17) -27% Illinois - 8 (8) -100% --- --- --- Other Homebuilding 47 72 (25) -35% --- --- --- Total 1,015 977 38 4% ===== === === Estimated Value of Orders for Homes, net $281,000 $289,000 $(8,000) -3% Estimated Average Selling Price of Orders for Homes, net $276.8 $295.8 $(19.0) -6% Cancellation Rate(6) 25% 20% 5% Six Months Ended June 30, Change -------------- ------ 2010 2009 Amount % ---- ---- ------ -- ORDERS FOR HOMES, NET (UNITS) Arizona 352 372 (20) -5% California 135 187 (52) -28% Nevada 365 248 117 47% --- --- --- West 852 807 45 6% --- --- --- Colorado 502 340 162 48% Utah 235 127 108 85% --- --- --- Mountain 737 467 270 58% --- --- --- Delaware Valley 16 33 (17) -52% Maryland 93 91 2 2% Virginia 142 117 25 21% --- --- --- East 251 241 10 4% --- --- --- Florida 106 122 (16) -13% Illinois - 16 (16) -100% --- --- --- Other Homebuilding 106 138 (32) -23% --- --- --- Total 1,946 1,653 293 18% ===== ===== === Estimated Value of Orders for Homes, net $539,000 $480,000 $59,000 12% Estimated Average Selling Price of Orders for Homes, net $277.0 $290.4 $(13.4) -5% Cancellation Rate(6) 24% 22% 2% (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) December June 30, 31, June 30, 2010 2009 2009 --- --- --- BACKLOG (UNITS) Arizona 105 103 177 California 97 76 125 Nevada 134 88 113 --- --- --- West 336 267 415 --- --- --- Colorado 371 207 208 Utah 130 94 73 --- --- --- Mountain 501 301 281 --- --- --- Delaware Valley 23 23 30 Maryland 95 103 84 Virginia 107 73 67 --- --- --- East 225 199 181 --- --- --- Florida 52 59 64 Illinois - - - --- --- --- Other Homebuilding 52 59 64 --- --- --- Total 1,114 826 941 ===== === === Backlog Estimated Sales Value $351,000 $265,000 $295,000 ======== ======== ======== Estimated Average Selling Price of Homes in Backlog $315.1 $320.8 $313.5 ====== ====== ====== ACTIVE SUBDIVISIONS Arizona 26 28 27 California 6 3 10 Nevada 15 18 19 --- --- --- West 47 49 56 --- --- --- Colorado 41 42 43 Utah 18 16 18 --- --- --- Mountain 59 58 61 --- --- --- Delaware Valley 1 1 1 Maryland 9 8 9 Virginia 9 7 7 --- --- --- East 19 16 17 --- --- --- Florida 9 10 8 Illinois - - - --- --- --- Other Homebuilding 9 10 8 --- --- --- Total 134 133 142 === === === Average for quarter ended 133 134 160 === === === M.D.C. HOLDINGS, INC. Reconciliation of Non-GAAP Financial Measure (Dollars in thousands) (Unaudited) Three Months Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 --- --- --- --- Home Sales Revenue -As reported $311,276 $185,554 $452,219 $352,536 Home Cost of Sales -As reported $255,062 $152,118 $364,452 $293,443 Warranty Adjustments (1,677) (10,904) (5,606) (14,547) Interest in Cost of Sales 8,202 8,661 11,404 16,694 ----- ----- ------ ------ Home Cost of Sales -Excluding Warranty Adjustments and Interest $248,537 $154,361 $358,654 $307,990 ======== ======== ======== ======== Home Gross Margins -Excluding Warranty Adjustments and Interest (7) 20.2% 16.8% 20.7% 12.6% (7) Home Gross Margins excluding the impact of warranty adjustments and interest in cost of sales is a non-GAAP financial measure. We believe this information is meaningful as it isolates the impact that warranty adjustments and interest have on our Home Gross Margins.
First Call Analyst:
FCMN Contact: bob.martin@mdch.com
SOURCE: M.D.C. Holdings, Inc.
CONTACT: Robert N. Martin, Investor Relations, M.D.C. Holdings, Inc.,
+1-720-977-3431,