News

M.D.C. Holdings Announces Preliminary 2016 Second Quarter Results For Home Sale Revenues, Gross Margin From Home Sales, Net New Orders And Backlog
PR Newswire
DENVER

DENVER, July 20, 2016 /PRNewswire/ -- In anticipation of investor meetings scheduled to occur before its final unaudited results will be available, M.D.C. Holdings, Inc. (NYSE: MDC) announced preliminary results for home sale revenues, gross margin from home sales, net new orders, and backlog for the 2016 second quarter. These results are preliminary and unaudited. The Company will announce final totals when it releases its final results for the 2016 second quarter on August 3, 2016, followed by a 12:30 P.M. (EST) conference call that will be broadcast live on its website.

2016 Second Quarter Highlights and Comparisons to 2015 Second Quarter (preliminary and unaudited)

  • Home sale revenues up 24% to $571.2 million from $461.7 million
  • Gross margin from home sales expected to be roughly even with the prior year
  • Dollar value of net new orders up 15% to $723.3 million from $629.7 million
  • Ending backlog dollar value up 42% to $1.61 billion from $1.13 billion

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "The 24% year-over-year improvement in our home sale revenues for our 2016 second quarter was our fastest rate of increase in eleven quarters. We will be focused on continuing a pattern of revenue growth for the remainder of the year, as we work to drive higher returns for our Company while maintaining a strong balance sheet."

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 185,000 homebuyers. 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 operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, South Florida and Seattle. 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

Information presented herein for the second quarter ended June 30, 2016 is subject to finalization of the Company's regulatory filings, related financial and accounting reporting procedures and external auditor procedures.

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 MDC 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 MDC, including cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of MDC's investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican Mortgage Corporation's sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by MDC in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns and natural disasters; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) changes in energy prices; and (17) other factors over which MDC has little or no control. Additional information about the risks and uncertainties applicable to MDC's business is contained in MDC's most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.  All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. MDC 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 webcasts should be consulted.

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


(The fiscal 2016 information presented below is preliminary and unaudited.)


New Home Deliveries



 Three Months Ended June 30, 


2016


2015


 % Change


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


(Dollars in thousands)

Arizona

201


$

60,976


$

303.4


203


$

58,691


$

289.1


(1)%


4%


5%

California

192



117,985



614.5


185



89,544



484.0


4%


32%


27%

Nevada

148



51,834



350.2


134



46,616



347.9


10%


11%


1%

Washington

85



39,236



461.6


59



22,850



387.3


44%


72%


19%

West

626



270,031



431.4


581



217,701



374.7


8%


24%


15%

Colorado

353



172,100



487.5


317



147,925



466.6


11%


16%


4%

Utah

51



17,935



351.7


25



8,968



358.7


104%


100%


(2)%

Mountain

404



190,035



470.4


342



156,893



458.8


18%


21%


3%

Maryland

83



41,639



501.7


57



25,702



450.9


46%


62%


11%

Virginia

75



38,623



515.0


60



28,326



472.1


25%


36%


9%

Florida

84



30,867



367.5


86



33,086



384.7


(2)%


(7)%


(4)%

East

242



111,129



459.2


203



87,114



429.1


19%


28%


7%

Total

1,272


$

571,195


$

449.1


1,126


$

461,708


$

410.0


13%


24%


10%














































 Six Months Ended June 30, 


2016


2015


 % Change


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


 Homes


 Dollar

Value


 Average Price


(Dollars in thousands)

Arizona

361


$

106,038


$

293.7


353


$

105,577


$

299.1


2%


0%


(2)%

California

317



193,515



610.5


325



158,530



487.8


(2)%


22%


25%

Nevada

255



90,260



354.0


245



87,530



357.3


4%


3%


(1)%

Washington

159



71,593



450.3


115



42,881



372.9


38%


67%


21%

West

1,092



461,406



422.5


1,038



394,518



380.1


5%


17%


11%

Colorado

602



293,675



487.8


562



259,863



462.4


7%


13%


6%

Utah

90



32,510



361.2


56



20,140



359.6


61%


61%


0%

Mountain

692



326,185



471.4


618



280,003



453.1


12%


16%


4%

Maryland

117



57,445



491.0


113



52,858



467.8


4%


9%


5%

Virginia

115



58,777



511.1


119



57,446



482.7


(3)%


2%


6%

Florida

163



61,802



379.2


147



53,892



366.6


11%


15%


3%

East

395



178,024



450.7


379



164,196



433.2


4%


8%


4%

Total

2,179


$

965,615


$

443.1


2,035


$

838,717


$

412.1


7%


15%


8%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


(The fiscal 2016 information presented below is preliminary.)


Net New Orders



 Three Months Ended June 30, 


2016


2015


% Change


Homes


Dollar

Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


(Dollars in thousands)

Arizona

237


$

69,685


$

294.0


2.63


250


$

70,350


$

281.4


2.35


(5)%


(1)%


4%


12%

California

308



178,438



579.3


5.33


283



158,462



559.9


4.44


9%


13%


3%


20%

Nevada

230



81,610



354.8


3.48


150



56,254



375.0


4.55


53%


45%


(5)%


(24)%

Washington

118



56,463



478.5


3.42


109



45,769



419.9


2.79


8%


23%


14%


23%

West

893



386,196



432.5


3.60


792



330,835



417.7


3.27


13%


17%


4%


10%

Colorado

413



191,329



463.3


4.02


410



187,483



457.3


3.23


1%


2%


1%


24%

Utah

77



28,070



364.5


3.21


63



22,458



356.5


3.11


22%


25%


2%


3%

Mountain

490



219,399



447.8


3.87


473



209,941



443.8


3.22


4%


5%


1%


20%

Maryland

69



31,750



460.1


1.67


61



28,660



469.8


2.14


13%


11%


(2)%


(22)%

Virginia

73



37,362



511.8


2.95


43



22,318



519.0


1.74


70%


67%


(1)%


70%

Florida

122



48,565



398.1


2.32


112



37,938



338.7


2.45


9%


28%


18%


(5)%

East

264



117,677



445.7


2.23


216



88,916



411.6


2.18


22%


32%


8%


2%

Total

1,647


$

723,272


$

439.1


3.34


1,481


$

629,692


$

425.2


3.03


11%


15%


3%


10%





























 Six Months Ended June 30, 


2016


2015


% Change


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


Homes


Dollar Value


Average Price


Monthly Absorption Rate *


(Dollars in thousands)

Arizona

460


$

138,307


$

300.7


2.50


475


$

132,673


$

279.3


2.22


(3)%


4%


8%


13%

California

537



322,374



600.3


4.54


512



280,992



548.8


4.15


5%


15%


9%


9%

Nevada

459



163,041



355.2


3.57


377



143,669



381.1


4.83


22%


13%


(7)%


(26)%

Washington

242



116,336



480.7


3.17


221



91,814



415.4


2.90


10%


27%


16%


9%

West

1,698



740,058



435.8


3.35


1,585



649,148



409.6


3.22


7%


14%


6%


4%

Colorado

906



427,248



471.6


4.11


900



418,453



464.9


3.56


1%


2%


1%


15%

Utah

143



52,783



369.1


3.03


129



46,747



362.4


3.27


11%


13%


2%


(7)%

Mountain

1,049



480,031



457.6


3.92


1,029



465,200



452.1


3.52


2%


3%


1%


11%

Maryland

158



74,810



473.5


2.09


128



62,276



486.5


2.33


23%


20%


(3)%


(10)%

Virginia

158



82,055



519.3


3.07


115



57,497



500.0


2.10


37%


43%


4%


46%

Florida

230


97,657


424.6


2.42


217



77,374



356.6


2.51


6%


26%


19%


(4)%

East

546



254,522



466.2


2.46


460



197,147



428.6


2.34


19%


29%


9%


5%

Total

3,293


$

1,474,611


$

447.8


3.30


3,074


$

1,311,495


$

426.6


3.13


7%


12%


5%


5%





*

Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


(The fiscal 2016 information presented below is preliminary.)


Backlog



June 30,


2016


2015


% Change


Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price


(Dollars in thousands)

Arizona

419


$

129,591


$

309.3


353


$

102,062


$

289.1


19%


27%


7%

California

562



360,450



641.4


379



217,806



574.7


48%


65%


12%

Nevada

399



138,604



347.4


287



114,305



398.3


39%


21%


(13)%

Washington

262



127,968



488.4


161



68,564



425.9


63%


87%


15%

West

1,642



756,613



460.8


1,180



502,737



426.0


39%


50%


8%

Colorado

1,126



546,356



485.2


917



428,450



467.2


23%


28%


4%

Utah

161



59,133



367.3


113



39,681



351.2


42%


49%


5%

Mountain

1,287



605,489



470.5


1,030



468,131



454.5


25%


29%


4%

Maryland

131



61,623



470.4


83



42,326



510.0


58%


46%


(8)%

Virginia

144



76,278



529.7


86



44,964



522.8


67%


70%


1%

Florida

241



107,679



446.8


179



71,180



397.7


35%


51%


12%

East

516



245,580



475.9


348



158,470



455.4


48%


55%


5%

Total

3,445


$

1,607,682


$

466.7


2,558


$

1,129,338


$

441.5


35%


42%


6%

 

SOURCE M.D.C. Holdings, Inc.