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,
