News

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

DENVER, Nov. 1, 2016 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2016.

2016 Third Quarter Highlights and Comparisons to 2015 Third Quarter

  • Net income up 78% to $26.4 million, or $0.54 per share from $14.8 million or $0.30 per share
  • Home sale revenues up 27% to $575.7 million from $454.7 million
    • Average sales price up 6% to $445,300
    • Homes delivered up 20% to 1,293
  • Selling, general and administrative expenses as a percentage of home sale revenues improved 180 basis points from 12.6% to 10.8%
  • Dollar value of net new orders up 17% to $570.3 million from $489.0 million
    • Net new orders up 17% to 1,296
  • Ending backlog dollar value up 37% to $1.61 billion from $1.18 billion
    • Ending backlog units up 33% to 3,448
  • Industry-leading dividend payment continued at $0.25 per share

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with our 2016 third quarter results, as our net income increased by 78% year-over-year. Even though our cycle times continued to increase during the quarter based on limited subcontractor availability in many markets, we still increased our home sale revenues by 27% over the prior year, resulting in better leverage of our overhead costs and higher return on equity than a year ago."

Mr. Mizel concluded, "The 2016 third quarter was our tenth consecutive quarter of year-over-year growth in net new orders, and we achieved our highest third quarter average monthly sales absorption pace in over a decade. Our order results included an increased contribution from our new, more affordable collection of home plans, which are still in the early stages of rollout. With a simpler design, these new plans should ultimately have a positive impact on our overall construction cycle times, which remain a key focus area for the Company as we close out the year."

Homebuilding

Home sale revenues for the 2016 third quarter increased 27% to $575.7 million, primarily driven by a 20% increase in deliveries, which was mostly the result of a 35% year-over-year increase of our homes in beginning backlog, coupled with a 6% increase in average selling price of homes closed. 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 third quarter, our gross margin from home sales declined 90 basis points to 15.5% from the same period in 2015 primarily due to increased land and construction costs in certain of our markets and warranty adjustments totaling $1.8 million that resulted from higher than expected warranty related spending. Gross margin for the 2016 third quarter included $4.7 million of inventory impairments, compared with $4.4 million for the same quarter in the prior year.

Selling, general and administrative ("SG&A") expenses for the 2016 third quarter were $61.9 million, up $4.5 million from $57.4 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenue ("SG&A rate") improved by 180 basis points to 10.8% for the 2016 third quarter from 12.6% in the 2015 third quarter. This decrease in our SG&A rate was primarily the result of a 27% increase in home sale revenues.

The dollar value of net new orders for the 2016 third quarter increased 17% year-over-year to $570.3 million. The improvement was the result of a 17% increase in the number of homes sold, driven primarily by our monthly sales absorption rate being up 15% year-over-year. Our average selling price of net new orders was flat from the same period in the prior year, as price increases were offset by a shift in mix to lower price communities, in part related to the introduction of our more affordable product earlier this year.

Our backlog value at the end of the 2016 third quarter was up 37% year-over-year to $1.61 billion. The improvement was due mostly to a 33% increase in the number of units in backlog, which is primarily the result of (1) an increase in net new order activity over the last twelve months for most of our markets, (2) a higher percentage 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 in most of our larger markets.

Financial Services

Income before taxes for our financial services operations for the 2016 third quarter was $10.4 million, a $2.1 million increase from $8.3 million in the 2015 third quarter. This improvement was primarily the result of (1) year-over-year increases in 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 September 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

Nine Months Ended

September 30,


September 30,


2016

2015

2016

2015

(Dollars in thousands, except per share amounts)

(Unaudited)

Homebuilding:










Home sale revenues

$

575,722

$

454,740

$

1,541,337

$

1,293,457

Land sale revenues

2,290

906

4,930

1,816

Total home and land sale revenues

578,012

455,646

1,546,267

1,295,273

Home cost of sales

(481,511)

(375,948)

(1,287,373)

(1,079,609)

Land cost of sales

(2,318)

(819)

(4,197)

(1,944)

Inventory impairments

(4,700)

(4,351)

(6,300)

(4,701)

Total cost of sales

(488,529)

(381,118)

(1,297,870)

(1,086,254)

Gross margin

89,483

74,528

248,397

209,019

Selling, general and administrative expenses

(61,904)

(57,444)

(182,621)

(162,757)

Interest and other income

1,869

838

5,358

5,412

Other expense

(1,558)

(350)

(2,463)

(2,539)

Other-than-temporary impairment of marketable securities

(215)

(2,176)

(934)

(2,176)

Homebuilding pretax income

27,675

15,396

67,737

46,959










Financial Services:










Revenues

17,408

12,841

44,248

34,852

Expenses

(7,955)

(5,464)

(21,739)

(15,830)

Interest and other income

1,035

885

2,648

2,885

Other-than-temporary impairment of marketable securities

(111)

-

(111)

-

Financial services pretax income

10,377

8,262

25,046

21,907










Income before income taxes

38,052

23,658

92,783

68,866

Provision for income taxes

(11,693)

(8,880)

(29,948)

(25,670)

Net income

$

26,359

$

14,778

$

62,835

$

43,196










Other comprehensive income (loss) related to available for sale securities, net of tax











1,028

(226)

3,871

722

Comprehensive income

$

27,387

$

14,552

$

66,706

$

43,918










Earnings per share:










Basic

$

0.54

$

0.30

$

1.28

$

0.88

Diluted

$

0.54

$

0.30

$

1.28

$

0.88










Weighted average common shares outstanding










Basic

48,854,412

48,785,973

48,844,613

48,756,265

Diluted

49,009,949

49,070,291

48,855,014

48,982,975










Dividends declared per share

$

0.25

$

0.25

$

0.75

$

0.75

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

September 30,


December 31,


2016

2015

ASSETS

(Dollars in thousands, except

per share amounts)

Homebuilding:

(Unaudited)


Cash and cash equivalents

$

129,278

$

144,342

Marketable securities

57,116

92,387

Restricted cash

4,621

3,750

Trade and other receivables

43,082

23,314

Inventories:




Housing completed or under construction

976,372

747,036

Land and land under development

870,733

1,016,926

Total inventories

1,847,105

1,763,962

Property and equipment, net

28,749

28,226

Deferred tax asset, net

85,128

99,107

Metropolitan district bond securities (related party)

29,132

25,911

Prepaid and other assets

66,195

65,394

Total homebuilding assets

2,290,406

2,246,393

Financial Services:




Cash and cash equivalents

34,180

36,646

Marketable securities

22,105

11,307

Mortgage loans held-for-sale, net

117,989

115,670

Other assets

9,590

5,883

Total financial services assets

183,864

169,506

      Total Assets

$

2,474,270

$

2,415,899

LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

54,117

$

40,472

Accrued liabilities

122,227

122,886

Revolving credit facility

15,000

15,000

Senior notes, net

841,359

840,524

Total homebuilding liabilities

1,032,703

1,018,882

Financial Services:




Accounts payable and accrued liabilities

56,934

52,114

Mortgage repurchase facility

92,011

88,611

Total financial services liabilities

148,945

140,725

      Total Liabilities

1,181,648

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; 49,033,981 and 48,888,424 issued and outstanding at September 30, 2016 and December 31, 2015, respectively

490

489

Additional paid-in-capital

922,132

915,746

Retained earnings

350,414

324,342

Accumulated other comprehensive income

19,586

15,715

Total Stockholders' Equity

1,292,622

1,256,292

Total Liabilities and Stockholders' Equity

$

2,474,270

$

2,415,899

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

Three Months Ended

Nine Months Ended

September 30,


September 30,


2016

2015

2016

2015

(Dollars in thousands)

(Unaudited)

Operating Activities:










Net income

$

26,359

$

14,778

$

62,835

$

43,196

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










operating activities:










Stock-based compensation expense

473

3,998

6,636

6,589

Depreciation and amortization


1,335

992

3,702

3,084

Inventory impairments

4,700

4,351

6,300

4,701

Other-than-temporary impairment of marketable securities

326

2,176

1,045

2,176

Loss (gain) on sale of marketable securities

(649)

588

(911)

126

Amortization of discount / premiums on marketable debt securities, net

-

-

-

100

Deferred income tax expense

3,484

8,515

11,357

24,782

Net changes in assets and liabilities:










      Restricted cash

(675)

144

(871)

(1,984)

      Trade and other receivables

4,556

(283)

(21,679)

(575)

      Mortgage loans held-for-sale

710

11,095

(2,319)

19,759

      Housing completed or under construction

(42,934)

(48,367)

(229,739)

(89,841)

      Land and land under development

18,430

(62,724)

141,131

(25,805)

      Other assets

(1,598)

(4,954)

(4,573)

(8,072)

      Accounts payable and accrued liabilities

(1,334)

(1,304)

18,183

(4,722)

Net cash provided by (used in) operating activities

13,183

(70,995)

(8,903)

(26,486)










Investing Activities:










Purchases of marketable securities

(12,846)

(12,207)

(28,272)

(46,886)

Maturities of marketable securities

-

-

-

1,510

Sales of marketable securities

6,108

44,731

56,873

94,910

Purchases of property and equipment

(748)

(409)

(3,865)

(830)

Net cash provided by (used in) investing activities

(7,486)

32,115

24,736

48,704










Financing Activities:










Advances (payments) on mortgage repurchase facility, net

(1,286)

(6,245)

3,400

(17,067)

Dividend payments

(12,259)

(12,221)

(36,763)

(36,646)

Proceeds from exercise of stock options

-

53

-

665

Net cash used in financing activities

(13,545)

(18,413)

(33,363)

(53,048)










Net decrease in cash and cash equivalents

(7,848)

(57,293)

(17,530)

(30,830)

Cash and cash equivalents:










      Beginning of period

171,306

180,288

180,988

153,825

      End of period

$

163,458

$

122,995

$

163,458

$

122,995

 


M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries

 Three Months Ended September 30, 



2016

2015

 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)

Arizona

221

$

64,314

$

291.0

190

$

54,434

$

286.5

16%

18%

2%

California

195

125,601

644.1

161

84,877

527.2

21%

48%

22%

Nevada

177

59,601

336.7

159

60,258

379.0

11%

(1)%

(11)%

Washington

75

35,072

467.6

75

30,174

402.3

0%

16%

16%

West

668

284,588

426.0

585

229,743

392.7

14%

24%

8%

Colorado

343

169,859

495.2

281

132,916

473.0

22%

28%

5%

Utah

55

20,728

376.9

39

13,460

345.1

41%

54%

9%

Mountain

398

190,587

478.9

320

146,376

457.4

24%

30%

5%

Maryland

61

27,297

447.5

55

26,122

474.9

11%

4%

(6)%

Virginia

78

39,795

510.2

51

25,309

496.3

53%

57%

3%

Florida

88

33,455

380.2

69

27,190

394.1

28%

23%

(4)%

East

227

100,547

442.9

175

78,621

449.3

30%

28%

(1)%

Total

1,293

$

575,722

$

445.3

1,080

$

454,740

$

421.1

20%

27%

6%














































 Nine Months Ended September 30, 



2016

2015

 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)

Arizona

582

$

170,352

$

292.7

543

$

160,011

$

294.7

7%

6%

(1)%

California

512

319,116

623.3

486

243,407

500.8

5%

31%

24%

Nevada

432

149,861

346.9

404

147,788

365.8

7%

1%

(5)%

Washington

234

106,665

455.8

190

73,055

384.5

23%

46%

19%

West

1,760

745,994

423.9

1,623

624,261

384.6

8%

20%

10%

Colorado

945

463,534

490.5

843

392,779

465.9

12%

18%

5%

Utah

145

53,238

367.2

95

33,600

353.7

53%

58%

4%

Mountain

1,090

516,772

474.1

938

426,379

454.6

16%

21%

4%

Maryland

178

84,742

476.1

168

78,980

470.1

6%

7%

1%

Virginia

193

98,572

510.7

170

82,755

486.8

14%

19%

5%

Florida

251

95,257

379.5

216

81,082

375.4

16%

17%

1%

East

622

278,571

447.9

554

242,817

438.3

12%

15%

2%

Total

3,472

$

1,541,337

$

443.9

3,115

$

1,293,457

$

415.2

11%

19%

7%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders

 Three Months Ended September 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

225

$

68,611

$

304.9

2.56

214

$

60,274

$

281.7

2.15

5%

14%

8%

19%

California

260

154,113

592.7

4.08

184

118,943

646.4

3.07

41%

30%

(8)%

33%

Nevada

175

59,068

337.5

2.75

110

40,196

365.4

2.99

59%

47%

(8)%

(8)%

Washington

83

38,400

462.7

2.26

93

40,260

432.9

2.25

(11)%

(5)%

7%

0%

West

743

320,192

430.9

2.95

601

259,673

432.1

2.53

24%

23%

(0)%

17%

Colorado

321

147,984

461.0

3.82

273

129,221

473.3

2.39

18%

15%

(3)%

60%

Utah

35

14,979

428.0

1.41

48

17,282

360.0

2.21

(27)%

(13)%

19%

(36)%

Mountain

356

162,963

457.8

3.27

321

146,503

456.4

2.36

11%

11%

0%

39%

Maryland

50

23,125

462.5

1.42

53

26,667

503.2

1.81

(6)%

(13)%

(8)%

(22)%

Virginia

52

27,270

524.4

2.04

48

22,812

475.3

2.21

8%

20%

10%

(8)%

Florida

95

36,711

386.4

1.74

86

33,393

388.3

1.98

10%

10%

(0)%

(12)%

East

197

87,106

442.2

1.71

187

82,872

443.2

1.98

5%

5%

(0)%

(14)%

Total

1,296

$

570,261

$

440.0

2.72

1,109

$

489,048

$

441.0

2.37

17%

17%

(0)%

15%


























 Nine Months Ended September 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

684

$

209,013

$

305.6

2.52

689

$

195,546

$

283.8

2.20

(1)%

7%

8%

15%

California

797

479,030

601.0

4.36

696

402,701

578.6

3.79

15%

19%

4%

15%

Nevada

634

224,168

353.6

3.31

487

185,313

380.5

4.19

30%

21%

(7)%

(21)%

Washington

325

156,962

483.0

2.82

314

133,197

424.2

2.66

4%

18%

14%

6%

West

2,440

1,069,173

438.2

3.20

2,186

916,757

419.4

2.99

12%

17%

4%

7%

Colorado

1,227

585,152

476.9

4.00

1,173

557,372

475.2

3.19

5%

5%

0%

25%

Utah

178

68,199

383.1

2.47

177

64,426

364.0

2.89

1%

6%

5%

(15)%

Mountain

1,405

653,351

465.0

3.71

1,350

621,798

460.6

3.15

4%

5%

1%

18%

Maryland

208

98,703

474.5

1.89

181

89,213

492.9

2.14

15%

11%

(4)%

(12)%

Virginia

210

110,047

524.0

2.75

163

80,588

494.4

2.11

29%

37%

6%

30%

Florida

325

136,220

419.1

2.19

303

112,895

372.6

2.34

7%

21%

12%

(6)%

East

743

344,970

464.3

2.22

647

282,696

436.9

2.22

15%

22%

6%

0%

Total

4,588

$

2,067,494

$

450.6

3.11

4,183

$

1,821,251

$

435.4

2.88

10%

14%

3%

8%


* 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

Nine Months Ended

September 30,


%

September 30,


%

September 30,


%

2016

2015

Change

2016

2015

Change

2016

2015

Change

Arizona

30

31

(3)%

29

33

(12)%

30

35

(14)%

California

21

19

11%

21

20

5%

20

20

0%

Nevada

20

15

33%

21

12

75%

21

13

62%

Washington

14

14

0%

12

14

(14)%

13

13

0%

West

85

79

8%

83

79

5%

84

81

4%

Colorado

28

37

(24)%

28

38

(26)%

34

41

(17)%

Utah

9

8

13%

8

7

14%

8

7

14%

Mountain

37

45

(18)%

36

45

(20)%

42

48

(13)%

Maryland

11

10

10%

12

10

20%

12

9

33%

Virginia

8

8

0%

9

7

29%

9

9

0%

Florida

18

15

20%

18

15

20%

17

14

21%

East

37

33

12%

39

32

22%

38

32

19%

Total

159

157

1%

158

156

1%

164

161

2%

 

Backlog

September 30,



2016

2015

% Change

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

(Dollars in thousands)

Arizona

423

$

132,929

$

314.3

377

$

109,735

$

291.1

12%

21%

8%

California

627

389,622

621.4

402

253,814

631.4

56%

54%

(2)%

Nevada

397

139,731

352.0

238

94,815

398.4

67%

47%

(12)%

Washington

270

133,367

494.0

179

79,175

442.3

51%

68%

12%

West

1,717

795,649

463.4

1,196

537,539

449.4

44%

48%

3%

Colorado

1,104

530,662

480.7

909

434,371

477.9

21%

22%

1%

Utah

141

53,180

377.2

122

43,551

357.0

16%

22%

6%

Mountain

1,245

583,842

468.9

1,031

477,922

463.6

21%

22%

1%

Maryland

120

56,837

473.6

81

42,999

530.9

48%

32%

(11)%

Virginia

118

64,228

544.3

83

42,494

512.0

42%

51%

6%

Florida

248

111,499

449.6

196

78,900

402.6

27%

41%

12%

East

486

232,564

478.5

360

164,393

456.6

35%

41%

5%

Total

3,448

$

1,612,055

$

467.5

2,587

$

1,179,854

$

456.1

33%

37%

2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)

September 30,


%

2016

2015

Change

Unsold:





Completed

81

221

(63)%

Under construction

298

403

(26)%

Total unsold started homes

379

624

(39)%

Sold homes under construction or completed

2,626

1,947

35%

Model homes

293

273

7%

Total homes completed or under construction

3,298

2,844

16%

 

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

September 30, 2016

September 30, 2015



Lots
Owned

Lots
Optioned

Total

Lots
Owned

Lots
Optioned

Total

Total %
Change

Arizona

1,515

269

1,784

1,778

205

1,983

(10)%

California

1,753

75

1,828

1,726

222

1,948

(6)%

Nevada

2,051

200

2,251

1,938

439

2,377

(5)%

Washington

853

-

853

842

37

879

(3)%

West

6,172

544

6,716

6,284

903

7,187

(7)%

Colorado

4,051

1,347

5,398

4,208

1,036

5,244

3%

Utah

380

-

380

496

-

496

(23)%

Mountain

4,431

1,347

5,778

4,704

1,036

5,740

1%

Maryland

261

143

404

383

304

687

(41)%

Virginia

429

15

444

693

163

856

(48)%

Florida

962

455

1,417

1,014

293

1,307

8%

East

1,652

613

2,265

2,090

760

2,850

(21)%

Total

12,255

2,504

14,759

13,078

2,699

15,777

(6)%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expense

Three Months Ended September 30,


Nine Months Ended September 30,



2016

2015

Change

2016

2015

Change

(Dollars in thousands)

General and administrative expenses

$

27,758

$

29,694

$

(1,936)

$

90,638

$

81,984

$

8,654

General and administrative expenses

















as a percentage of home sale revenues

4.8%

6.5%

(170) bps

5.9%

6.3%

(40) bps


















Marketing expenses

$

15,262

$

12,548

$

2,714

$

41,728

$

37,866

$

3,862

Marketing expenses as a percentage of

















home sale revenues

2.7%

2.8%

(10) bps

2.7%

2.9%

(20) bps


















Commissions expenses

$

18,884

$

15,202

$

3,682

$

50,255

$

42,907

$

7,348

Commissions expenses as a percentage of

















home sale revenues

3.3%

3.3%

0 bps

3.3%

3.3%

0 bps


















Total selling, general and administrative

















expenses

$

61,904

$

57,444

$

4,460

$

182,621

$

162,757

$

19,864

Total selling, general and administrative

















expenses as a percentage of home

















sale revenues (SG&A Rate)

10.8%

12.6%

(180) bps

11.8%

12.6%

(80) bps

 

Capitalized Interest

Three Months Ended

Nine Months Ended

September 30,


September 30,



2016

2015

2016

2015

(Dollars in thousands)

Homebuilding interest incurred

$

13,187

$

13,265

$

39,511

$

39,821

Less:  Interest capitalized

(13,187)

(13,265)

(39,511)

(39,821)

Homebuilding interest expensed

$

-

$

-

$

-

$

-












Interest capitalized, beginning of period

$

77,150

$

78,857

$

77,541

$

79,231

Plus: Interest capitalized during period

13,187

13,265

39,511

39,821

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

(15,922)

(12,878)

(42,637)

(39,808)

Interest capitalized, end of period

$

74,415

$

79,244

$

74,415

$

79,244

 

 

SOURCE M.D.C. Holdings, Inc.