News

M.D.C. Holdings Announces 2016 Second Quarter Results
PR Newswire
DENVER

DENVER, Aug. 3, 2016 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended June 30, 2016.

2016 Second Quarter Highlights and Comparisons to 2015 Second Quarter

  • Net income up 35% to $26.9 million, or $0.55 per share from $20.0 million or $0.41 per share
  • Home sale revenues up 24% to $571.2 million from $461.7 million
    • Average sales price up 10% to $449,100
    • Homes delivered up 13% to 1,272
  • Dollar value of net new orders up 15% to $723.0 million from $629.7 million
    • Net new orders up 11% to 1,646
  • Ending backlog dollar value up 42% to $1.61 billion from $1.13 billion
    • Ending backlog units up 35% to 3,445

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with the results of our 2016 second quarter, highlighted by a 35% increase in our net income. As a result of strong execution by our dedicated employees across the country, our home sale revenues improved by 24%, the fastest rate of year-over-year growth in nearly 3 years."

Mr. Mizel concluded, "To end the spring selling season, we recorded our ninth consecutive quarter of year-over-year growth in net new orders and achieved our highest second quarter average monthly sales absorption pace in over a decade, enabling us to reach a quarter-end backlog that was considerably higher than a year ago. As we enter the second half of 2016, our focus will be on accelerating the delivery of homes from this robust backlog, with a goal of sustaining our significant year-over-year revenue growth for the remainder of the year. This focus will give us the opportunity for continuing gains in operating leverage and overall returns for our Company, even as we maintain a financial position that ranks among the industry's strongest."  

Homebuilding

Home sale revenues for the 2016 second quarter increased 24% to $571.2 million, compared to $461.7 million for the prior year period. This improvement was driven by a 13% increase in deliveries, primarily due to a 39% year-over-year increase of our homes in beginning backlog, and a 10% increase in average selling price. The increase in average selling price was primarily the result of a mix shift to higher-priced submarkets and, to a lesser extent, price increases implemented in the prior year.

For the 2016 second quarter, our gross margin from home sales declined 20 basis points from the same period in 2015. The decline was primarily the result of $1.6 million of inventory impairments, but it was mostly offset by less interest included in cost of sales as a percentage of home sale revenues. 

Selling, general and administrative ("SG&A") expenses for the 2016 second quarter were $64.4 million, up $9.6 million from $54.8 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenues ("SG&A rate") decreased by 60 basis points to 11.3% for the 2016 second quarter from 11.9% in the 2015 second quarter. This decrease in our SG&A rate was primarily the result of a 24% increase in home sale revenues.

The dollar value of net new orders for the 2016 second quarter increased 15% year-over-year to $723.0 million. The improvement was primarily the result of an 11% increase in the number of homes sold, which was driven by a 10% increase in our monthly sales absorption rate. We also had a slight increase in our average selling price, due to price increases implemented in various active communities over the past year and a shift in mix to higher priced communities.

Our backlog value at the end of the 2016 second quarter was up 42% year-over-year to $1.61 billion. The improvement was due mostly to a 35% increase in the number of units in backlog, primarily due to (1) an increase in net new order activity over the last twelve months, (2) a higher percent of our backlog coming from build-to-order sales, which are generally in backlog for a longer period of time and, (3) limited subcontractor availability, which has extended our cycle times.

Financial Services

Income before taxes for our financial services operations for the 2016 second quarter was $9.1 million, a $0.8 million increase from $8.3 million in the 2015 second quarter. The increase in pretax income was primarily the result of year-over-year increases in (1) the dollar value of loans locked, originated, and sold, and (2) higher gains on loans locked and sold.

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

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 Form 10-Q for the quarter ended June 30, 2016, 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. 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.
Consolidated Statements of Operations and Comprehensive Income



Three Months Ended

Six Months Ended

June 30,


June 30,


2016

2015

2016

2015

(Dollars in thousands, except per share amounts)

(Unaudited)

Homebuilding:










Home sale revenues

$

571,195

$

461,708

$

965,615

$

838,717

Land sale revenues

316

-

2,640

910

Total home and land sale revenues

571,511

461,708

968,255

839,627

Home cost of sales

(475,836)

(385,019)

(805,862)

(703,661)

Land cost of sales

(216)

-

(1,879)

(1,125)

Inventory impairments

(1,600)

-

(1,600)

(350)

Total cost of sales

(477,652)

(385,019)

(809,341)

(705,136)

Gross margin

93,859

76,689

158,914

134,491

Selling, general and administrative expenses

(64,440)

(54,781)

(120,717)

(105,313)

Interest and other income

2,553

2,720

3,489

4,574

Other expense

(278)

(1,055)

(905)

(2,189)

Other-than-temporary impairment of marketable securities

(288)

-

(719)

-

Homebuilding pretax income

31,406

23,573

40,062

31,563










Financial Services:










Revenues

15,823

11,420

26,840

22,011

Expenses

(7,543)

(4,207)

(13,784)

(10,366)

Interest and other income

772

1,096

1,613

2,000

Financial services pretax income

9,052

8,309

14,669

13,645










Income before income taxes

40,458

31,882

54,731

45,208

Provision for income taxes

(13,545)

(11,884)

(18,255)

(16,790)

Net income

$

26,913

$

19,998

$

36,476

$

28,418










Other comprehensive income (loss) related to










available for sale securities, net of tax

895

(360)

2,843

948

Comprehensive income

$

27,808

$

19,638

$

39,319

$

29,366










Earnings per share:










Basic

$

0.55

$

0.41

$

0.74

$

0.58

Diluted

$

0.55

$

0.41

$

0.74

$

0.58










Weighted average common shares outstanding










Basic

48,851,350

48,768,021

48,839,660

48,741,476

Diluted

48,861,742

49,005,037

48,848,914

48,954,059










Dividends declared per share

$

0.25

$

0.25

$

0.50

$

0.50

 

M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets



June 30,


December 31,


2016

2015

ASSETS

(Dollars in thousands, except

per share amounts)

Homebuilding:

(Unaudited)


Cash and cash equivalents

$

132,006

$

144,342

Marketable securities

55,798

92,387

Restricted cash

3,946

3,750

Trade and other receivables

47,803

23,314

Inventories:




Housing completed or under construction

933,922

747,036

Land and land under development

893,096

1,016,926

Total inventories

1,827,018

1,763,962

Property and equipment, net

29,143

28,226

Deferred tax asset, net

89,242

99,107

Metropolitan district bond securities (related party)

28,604

25,911

Prepaid and other assets

65,254

65,394

Total homebuilding assets

2,278,814

2,246,393

Financial Services:




Cash and cash equivalents

39,300

36,646

Marketable securities

14,821

11,307

Mortgage loans held-for-sale, net

118,699

115,670

Other assets

9,766

5,883

Total financial services assets

182,586

169,506

      Total Assets

$

2,461,400

$

2,415,899

LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

48,294

$

40,472

Accrued liabilities

130,651

122,886

Revolving credit facility

15,000

15,000

Senior notes, net

841,076

840,524

Total homebuilding liabilities

1,035,021

1,018,882

Financial Services:




Accounts payable and accrued liabilities

56,060

52,114

Mortgage repurchase facility

93,297

88,611

Total financial services liabilities

149,357

140,725

      Total Liabilities

1,184,378

1,159,607

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; 49,008,835 and 48,888,424




 issued and outstanding at June 30, 2016 and December 31, 2015, respectively

490

489

Additional paid-in-capital

921,660

915,746

Retained earnings

336,314

324,342

Accumulated other comprehensive income

18,558

15,715

Total Stockholders' Equity

1,277,022

1,256,292

Total Liabilities and Stockholders' Equity

$

2,461,400

$

2,415,899


 

M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows



Three Months Ended

Six Months Ended

June 30,


June 30,


2016

2015

2016

2015

(Dollars in thousands)

(Unaudited)

Operating Activities:










Net income

$

26,913

$

19,998

$

36,476

$

28,418

Adjustments to reconcile net income to net cash provided by (used in)










operating activities:










Stock-based compensation expense

3,176

1,716

6,163

2,591

Depreciation and amortization


1,294

1,009

2,367

2,092

Inventory impairments

1,600

-

1,600

350

Other-than-temporary impairment of marketable securities

288

-

719

-

Gain on sale of marketable securities

(1,177)

(473)

(262)

(462)

Amortization of discount / premiums on marketable debt securities, net

-

41

-

100

Deferred income tax expense

6,085

11,554

7,873

16,267

Net changes in assets and liabilities:










      Restricted cash

(597)

(684)

(196)

(2,128)

      Trade and other receivables

(10,984)

5,849

(26,235)

(292)

      Mortgage loans held-for-sale

(36,506)

(15,020)

(3,029)

8,664

      Housing completed or under construction

(71,448)

(45,756)

(186,805)

(41,474)

      Land and land under development

54,390

38,193

122,701

36,919

      Prepaid expenses and other assets

(3,886)

(3,607)

(2,975)

(3,118)

      Accounts payable and accrued liabilities

23,751

16,263

19,517

(3,418)

Net cash provided by (used in) operating activities

(7,101)

29,083

(22,086)

44,509










Investing Activities:










Purchases of marketable securities

(9,944)

(14,195)

(15,426)

(34,679)

Maturities of marketable securities

-

-

-

1,510

Sales of marketable securities

30,165

37,203

50,765

50,179

Purchases of property and equipment

(1,173)

(81)

(3,117)

(421)

Net cash provided by investing activities

19,048

22,927

32,222

16,589










Financing Activities:










Advances (payments) on mortgage repurchase facility, net

33,076

9,963

4,686

(10,822)

Dividend payments

(12,252)

(12,212)

(24,504)

(24,425)

Proceeds from exercise of stock options

-

612

-

612

Net cash provided by (used in) financing activities

20,824

(1,637)

(19,818)

(34,635)










Net increase (decrease) in cash and cash equivalents

32,771

50,373

(9,682)

26,463

Cash and cash equivalents:










      Beginning of period

138,535

129,915

180,988

153,825

      End of period

$

171,306

$

180,288

$

171,306

$

180,288

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data


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%

 


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

236

$

69,393

$

294.0

2.62

250

$

70,350

$

281.4

2.35

(6)%

(1)%

4%

11%

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

892

385,904

432.6

3.59

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

1,646

$

722,980

$

439.2

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

459

$

138,015

$

300.7

2.49

475

$

132,673

$

279.3

2.22

(3)%

4%

8%

12%

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

1,697

739,766

435.9

3.34

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

3,292

$

1,474,319

$

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









Active Subdivisions

















Average Active Subdivisions

Average Active Subdivisions

Active Subdivisions

Three Months Ended

Six Months Ended

June 30,


%

June 30,


%

June 30,


%

2016

2015

Change

2016

2015

Change

2016

2015

Change

Arizona

30

35

(14)%

30

36

(17)%

31

36

(14)%

California

20

20

0%

19

21

(10)%

20

21

(5)%

Nevada

22

11

100%

22

11

100%

21

13

62%

Washington

10

13

(23)%

12

13

(8)%

13

13

0%

West

82

79

4%

83

81

2%

85

83

2%

Colorado

28

39

(28)%

34

42

(19)%

37

42

(12)%

Utah

8

7

14%

8

7

14%

8

7

14%

Mountain

36

46

(22)%

42

49

(14)%

45

49

(8)%

Maryland

13

9

44%

14

10

40%

13

9

44%

Virginia

9

7

29%

8

8

0%

9

9

0%

Florida

19

15

27%

18

15

20%

16

14

14%

East

41

31

32%

40

33

21%

38

32

19%

Total

159

156

2%

165

163

1%

168

164

2%

 

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%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data



Homes Completed or Under Construction (WIP lots)





June 30,


%

2016

2015

Change

Unsold:





Completed

100

229

(56)%

Under construction

263

459

(43)%

Total unsold started homes

363

688

(47)%

Sold homes under construction or completed

2,535

1,787

42%

Model homes

289

281

3%

Total homes completed or under construction

3,187

2,756

16%

 

Lots Owned and Optioned (including homes completed or under construction)

June 30, 2016

June 30, 2015



Lots Owned

Lots Optioned

Total

Lots Owned

Lots Optioned

Total

Total % Change

Arizona

1,565

259

1,824

1,972

40

2,012

(9)%

California

1,834

79

1,913

1,625

55

1,680

14%

Nevada

2,087

67

2,154

1,683

420

2,103

2%

Washington

816

35

851

825

129

954

(11)%

West

6,302

440

6,742

6,105

644

6,749

(0)%

Colorado

3,937

1,423

5,360

3,878

821

4,699

14%

Utah

424

-

424

535

-

535

(21)%

Mountain

4,361

1,423

5,784

4,413

821

5,234

11%

Maryland

297

168

465

385

325

710

(35)%

Virginia

498

107

605

588

319

907

(33)%

Florida

1,038

512

1,550

910

160

1,070

45%

East

1,833

787

2,620

1,883

804

2,687

(2)%

Total

12,496

2,650

15,146

12,401

2,269

14,670

3%

 

M.D.C. HOLDINGS, INC.
Other Financial Data



Selling, General and Administrative Expense





Three Months Ended June 30,


Six Months Ended June 30,



2016

2015

Change

2016

2015

Change

(Dollars in thousands)

(Dollars in thousands)

General and administrative expenses

$

31,414

$

26,377

$

5,037

$

62,880

$

52,290

$

10,590

General and administrative expenses

















as a percentage of home sale revenues

5.5%

5.7%

(20) bps

6.5%

6.2%

30 bps


















Marketing expenses

$

14,433

$

13,191

$

1,242

$

26,466

$

25,318

$

1,148

Marketing expenses as a percentage of

















home sale revenues

2.5%

2.9%

(40) bps

2.7%

3.0%

(30) bps


















Commissions expenses

$

18,593

$

15,213

$

3,380

$

31,371

$

27,705

$

3,666

Commissions expenses as a percentage of

















home sale revenues

3.3%

3.3%

0 bps

3.2%

3.3%

(10) bps

Total selling, general and administrative

















expenses

$

64,440

$

54,781

$

9,659

$

120,717

$

105,313

$

15,404

Total selling, general and administrative

















expenses as a percentage of home

















sale revenues

11.3%

11.9%

(60) bps

12.5%

12.6%

(10) bps

 

Capitalized Interest





Three Months Ended

Six Months Ended

June 30,


June 30,



2016

2015

2016

2015

(Dollars in thousands)

Homebuilding interest incurred

$

13,106

$

13,305

$

26,324

$

26,556

Less:  Interest capitalized

(13,106)

(13,305)

(26,324)

(26,556)

Homebuilding interest expensed

$

-

$

-

$

-

$

-












Interest capitalized, beginning of period

$

79,783

$

79,991

$

77,541

$

79,231

Plus: Interest capitalized during period

13,106

13,305

26,324

26,556

Less: Previously capitalized interest included in home and land cost of sales

(15,739)

(14,439)

(26,715)

(26,930)

Interest capitalized, end of period

$

77,150

$

78,857

$

77,150

$

78,857

 

SOURCE M.D.C. Holdings, Inc.