News

M.D.C. Holdings Announces 2016 Fourth Quarter And Full Year Results
PR Newswire
DENVER

DENVER, Feb. 1, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the fourth quarter and full year ended December 31, 2016.

2016 Fourth Quarter Highlights and Comparisons to 2015 Fourth Quarter

  • Net income up 79% to $40.4 million, or $0.78 per diluted share*, from $22.6 million or $0.44 per diluted share*
  • Home sale revenues up 29% to $715.8 million from $554.4 million
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved 200 basis points from 11.5% to 9.5%
  • Dollar value of net new orders up 5% to $473.4 million from $450.5 million
  • Ending backlog dollar value up 31% to $1.38 billion from $1.05 billion
  • Industry-leading dividend payment of $0.25 per share declared in January 2017
    • 5% stock dividend paid in December 2016

2016 Full Year Highlights and Comparisons to 2015 Full Year

  • Net income up 57% to $103.2 million, or $2.00 per diluted share* vs. $65.8 million, or $1.28 per diluted share*
  • Home sale revenues of $2.26 billion, up 22%
  • SG&A rate improved 110 basis points to 11.1%
  • Dollar value of net new orders up 12% to $2.56 billion from $2.29 billion

*All per share amounts have been adjusted for the 5% stock dividend declared and paid in the 2016 fourth quarter.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with our 2016 fourth quarter results, highlighted by a 79% increase in our net income. Our solid backlog to start the quarter enabled us to increase our home sale revenues by 29% year-over-year, driving a 200 basis point improvement in our SG&A rate. These strong fourth quarter results pushed our full year return on equity to 8.1% for 2016, a 280 basis points improvement over the prior year."

Mr. Mizel continued, "We are proud that our success in 2016 was achieved without losing focus on our balance sheet, which features a unique combination of low leverage, carefully managed exposure to homebuilding assets, and liquidity exceeding $900 million. The combination of strong balance sheet metrics and accelerating returns gave us the confidence to continue to reward shareholders during 2016 through our industry-leading dividend program, not only with the payment of our long-standing cash dividend, but also with a special 5% stock dividend in the fourth quarter."

Mr. Mizel concluded, "Early in 2016, we announced the roll-out of a more affordable collection of home plans. This new product has been well-received by potential homebuyers, which helps to reinforce our belief that the first-time homebuyer can drive growth in new home sales nationwide for the industry in the coming year. Based on our positive experience thus far, expanding the offering of our more affordable home plans will continue to be a strategic focus of the Company in 2017. With the dollar value of our backlog up 31% year-over-year and encouraging macroeconomic drivers such as increasing personal income levels, high employment levels and increasing consumer confidence, we are optimistic as we enter the 2017 spring selling season. However, this optimism is somewhat tempered by an increased risk for a rise in interest rates, which already increased significantly during the final quarter of 2016, and uncertainty surrounding potential changes in government policy following the 2016 Presidential Election."

Homebuilding

Home sale revenues for the 2016 fourth quarter increased 29% to $715.8 million, primarily driven by a 24% increase in deliveries, which was mostly the result of a 33% year-over-year increase in our homes in beginning backlog.

For the 2016 fourth quarter, our gross margin from home sales was 16.1%, unchanged from the same period a year ago. The 2016 fourth quarter included $2.4 million in adjustments to increase our warranty accrual and $3.9 of inventory impairments while the 2015 fourth quarter included $0.4 million in adjustments to increase our warranty accrual and $5.3 of inventory impairments.

Selling, general and administrative ("SG&A") expenses for the 2016 fourth quarter were $67.9 million, up $4.3 million from $63.6 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenues ("SG&A rate") improved by 200 basis points to 9.5% for the 2016 fourth quarter from 11.5% in the 2015 fourth quarter. This decrease in our SG&A rate was primarily the result of our increase in home sale revenues.

The dollar value of net new orders for the 2016 fourth quarter increased 5% year-over-year to $473.4 million. The improvement was the result of a 5% increase in the average selling price of net new orders due primarily to a shift in mix to higher priced communities.

Our backlog value at the end of the 2016 fourth quarter was up 31% year-over-year to $1.38 billion. The improvement was due mostly to a 24% increase in the number of units in backlog, which was 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 fourth quarter was $11.4 million, a $2.3 million increase from $9.1 million in the 2015 fourth quarter. This improvement was primarily due to our mortgage operations segment, which had (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

M.D.C. Holdings, Inc. was founded in 1972. MDC's homebuilding subsidiaries, which operate under the name Richmond American Homes, have built and financed the American Dream for more than 190,000 homebuyers since 1977. 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, Northern Colorado, 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. MDC'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. MDC's stock 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-K for the year ended December 31, 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

Year Ended

December 31,


December 31,


2016

2015

2016

2015

(Dollars in thousands, except per share amounts)

Homebuilding:

(Unaudited)

(Unaudited)


Home sale revenues

$

715,816

$

554,432

$

2,257,153

$

1,847,889

Land sale revenues

770

10,521

5,700

12,337

Total home and land sale revenues

716,586

564,953

2,262,853

1,860,226

Home cost of sales

(597,018)

(459,787)

(1,884,391)

(1,539,396)

Land cost of sales

(669)

(10,667)

(4,866)

(12,611)

Inventory impairments

(3,873)

(5,292)

(10,173)

(9,993)

Total cost of sales

(601,560)

(475,746)

(1,899,430)

(1,562,000)

Gross margin

115,026

89,207

363,423

298,226

Selling, general and administrative expenses

(67,919)

(63,560)

(250,540)

(226,317)

Interest and other income

1,654

1,297

7,012

6,709

Other expense

(984)

(1,669)

(3,447)

(4,208)

Other-than-temporary impairment of  marketable securities

(136)

(1,793)

(1,070)

(3,969)

Homebuilding pretax income

47,641

23,482

115,378

70,441










Financial Services:










Revenues

19,743

13,958

63,991

48,810

Expenses

(9,181)

(5,742)

(30,920)

(21,572)

Interest and other income

1,057

860

3,705

3,745

Other-than-temporary impairment of  marketable securities

(262)

-

(373)

-

Financial services pretax income

11,357

9,076

36,403

30,983










Income before income taxes

58,998

32,558

151,781

101,424

Provision for income taxes

(18,622)

(9,963)

(48,570)

(35,633)

Net income

$

40,376

$

22,595

$

103,211

$

65,791










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

2,485

4,538

6,356

5,260

Comprehensive income

$

42,861

$

27,133

$

109,567

$

71,051










Earnings per share










Basic

$

0.78

$

0.44

$

2.01

$

1.28

Diluted

$

0.78

$

0.44

$

2.00

$

1.28










Weighted average common shares outstanding










Basic

51,294,826

51,227,950

51,286,942

51,202,616

Diluted

51,476,735

51,399,721

51,447,147

51,415,580










Dividends declared per share

$

0.24

$

0.24

$

0.95

$

0.95

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

December 31,


December 31,


2016

2015

(Dollars in thousands, except

per share amounts)

ASSETS



Homebuilding:



Cash and cash equivalents

$

259,087

$

144,342

Marketable securities

59,770

92,387

Restricted cash

3,778

3,750

Trade and other receivables

42,492

23,314

Inventories:




Housing completed or under construction

874,199

747,036

Land and land under development

884,615

1,016,926

Total inventories

1,758,814

1,763,962

Property and equipment, net

28,041

28,226

Deferred tax assets, net

74,888

99,107

Metropolitan district bond securities (related party)

30,162

25,911

Prepaid and other assets

60,463

65,394

Total homebuilding assets

2,317,495

2,246,393

Financial Services:




Cash and cash equivalents

23,822

36,646

Marketable securities

36,436

11,307

Mortgage loans held-for-sale, net

138,774

115,670

Other assets

12,062

5,883

Total financial services assets

211,094

169,506

      Total Assets

$

2,528,589

$

2,415,899

LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

42,088

$

40,472

Accrued liabilities

144,566

122,886

Revolving credit facility

15,000

15,000

Senior notes, net

841,646

840,524

Total homebuilding liabilities

1,043,300

1,018,882

Financial Services:




Accounts payable and accrued liabilities

50,734

52,114

Mortgage repurchase facility

114,485

88,611

Total financial services liabilities

165,219

140,725

      Total Liabilities

1,208,519

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; 51,485,090 and 48,888,424
  issued and outstanding at December 31, 2016 and December 31, 2015, respectively

515

489

Additional paid-in-capital

983,532

915,746

Retained earnings

313,952

324,342

Accumulated other comprehensive income

22,071

15,715

Total Stockholders' Equity

1,320,070

1,256,292

Total Liabilities and Stockholders' Equity

$

2,528,589

$

2,415,899

 


M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

Three Months Ended

Year Ended

December 31,


December 31,


2016

2015

2016

2015

(Dollars in thousands)

(Unaudited)

(Unaudited)


Operating Activities:










Net income

$

40,376

$

22,595

$

103,211

$

65,791

Adjustments to reconcile net income to net cash provided by










(used in) operating activities:










Stock-based compensation expense

841

3,477

7,477

10,066

Depreciation and amortization


1,430

985

5,132

4,069

Inventory impairments

3,873

5,292

10,173

9,993

Other-than-temporary impairment of marketable securities

398

1,793

1,443

3,969

Net realized loss (gain) on sale of marketable securities

(163)

785

(1,074)

911

Amortization of discount / premiums on marketable debt securities

-

-

-

100

Deferred income tax expense

4,788

8,551

16,145

33,333

Net changes in assets and liabilities:










      Restricted cash

843

1,050

(28)

(934)

      Trade and other receivables

1,255

5,822

(20,424)

5,247

      Mortgage loans held-for-sale

(20,785)

(47,037)

(23,104)

(27,278)

      Housing completed or under construction

101,214

74,290

(128,525)

(15,551)

      Land and land under development

(16,509)

(63,583)

124,622

(89,388)

      Prepaid expenses and other assets

3,537

424

(1,036)

(7,648)

      Accounts payable and accrued liabilities

3,722

12,257

21,905

7,535

Net cash provided by operating activities

124,820

26,701

115,917

215










Investing Activities:










Purchases of marketable securities

(19,778)

(6,936)

(48,050)

(53,822)

Maturities of marketable securities

-

-

-

1,510

Sales of marketable securities

4,863

6,255

61,736

101,165

Purchases of property and equipment

(603)

(661)

(4,468)

(1,491)

Net cash provided by (used in) investing activities

(15,518)

(1,342)

9,218

47,362










Financing Activities:










Advances on mortgage repurchase facility, net

22,474

44,856

25,874

27,789

Dividend payments

(12,325)

(12,222)

(49,088)

(48,868)

Proceeds from exercise of stock options

-

-

-

665

Net cash provided by (used in) financing activities

10,149

32,634

(23,214)

(20,414)










Net increase in cash and cash equivalents

119,451

57,993

101,921

27,163

Cash and cash equivalents:










      Beginning of year

163,458

122,995

180,988

153,825

      End of year

$

282,909

$

180,988

$

282,909

$

180,988

 


M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries

 Three Months Ended December 31, 


2016

2015

 % Change


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


(Dollars in thousands)

Arizona

207

$

62,159

$

300.3

210

$

60,129

$

286.3

(1)%

3%

5%

California

295

176,818

599.4

220

127,196

578.2

34%

39%

4%

Nevada

251

88,580

352.9

171

67,691

395.9

47%

31%

(11)%

Washington

111

54,963

495.2

80

35,983

449.8

39%

53%

10%

West

864

382,520

442.7

681

290,999

427.3

27%

31%

4%

Colorado

424

207,774

490.0

349

160,794

460.7

21%

29%

6%

Utah

74

27,441

370.8

54

19,194

355.4

37%

43%

4%

Mountain

498

235,215

472.3

403

179,988

446.6

24%

31%

6%

Maryland

65

29,337

451.3

47

24,168

514.2

38%

21%

(12)%

Virginia

69

36,822

533.7

46

22,838

496.5

50%

61%

7%

Florida

86

31,922

371.2

98

36,439

371.8

(12)%

(12)%

(0)%

East

220

98,081

445.8

191

83,445

436.9

15%

18%

2%

Total

1,582

$

715,816

$

452.5

1,275

$

554,432

$

434.8

24%

29%

4%

 Year Ended December 31, 


2016

2015

 % Change


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


(Dollars in thousands)

Arizona

789

$

232,511

$

294.7

753

$

220,140

$

292.4

5%

6%

1%

California

807

495,934

614.5

706

370,603

524.9

14%

34%

17%

Nevada

683

238,441

349.1

575

215,479

374.7

19%

11%

(7)%

Washington

345

161,628

468.5

270

109,038

403.8

28%

48%

16%

West

2,624

1,128,514

430.1

2,304

915,260

397.2

14%

23%

8%

Colorado

1,369

671,308

490.4

1,192

553,573

464.4

15%

21%

6%

Utah

219

80,679

368.4

149

52,794

354.3

47%

53%

4%

Mountain

1,588

751,987

473.5

1,341

606,367

452.2

18%

24%

5%

Maryland

243

114,079

469.5

215

103,148

479.8

13%

11%

(2)%

Virginia

262

135,394

516.8

216

105,593

488.9

21%

28%

6%

Florida

337

127,179

377.4

314

117,521

374.3

7%

8%

1%

East

842

376,652

447.3

745

326,262

437.9

13%

15%

2%

Total

5,054

$

2,257,153

$

446.6

4,390

$

1,847,889

$

420.9

15%

22%

6%

 


M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders

 Three Months Ended December 31, 


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

106

$

31,937

$

301.3

1.23

154

$

43,448

$

282.1

1.64

(31)%

(26)%

7%

(25)%

California

149

99,903

670.5

2.42

160

101,300

633.1

2.81

(7)%

(1)%

6%

(14)%

Nevada

161

57,324

356.0

2.50

128

41,560

324.7

2.44

26%

38%

10%

2%

Washington

78

40,210

515.5

1.86

80

38,612

482.7

1.98

(3)%

4%

7%

(6)%

West

494

229,374

464.3

1.94

522

224,920

430.9

2.14

(5)%

2%

8%

(9)%

Colorado

284

138,194

486.6

2.89

262

122,119

466.1

2.28

8%

13%

4%

27%

Utah

37

15,841

428.1

1.37

40

14,343

358.6

1.72

(8)%

10%

19%

(20)%

Mountain

321

154,035

479.9

2.56

302

136,462

451.9

2.19

6%

13%

6%

17%

Maryland

37

17,509

473.2

1.17

56

26,253

468.8

1.74

(34)%

(33)%

1%

(33)%

Virginia

62

32,753

528.3

2.76

64

33,159

518.1

2.25

(3)%

(1)%

2%

23%

Florida

104

39,705

381.8

1.98

76

29,694

390.7

1.72

37%

34%

(2)%

15%

East

203

89,967

443.2

1.91

196

89,106

454.6

1.87

4%

1%

(3)%

2%

Total

1,018

$

473,376

$

465.0

2.09

1,020

$

450,488

$

441.7

2.10

(0)%

5%

5%

(0)%

 Year Ended December 31, 


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

790

$

243,358

$

308.0

2.21

843

$

241,192

$

286.1

2.07

(6)%

1%

8%

7%

California

946

582,460

615.7

3.88

856

506,445

591.6

3.55

11%

15%

4%

9%

Nevada

795

282,198

355.0

3.09

615

227,560

370.0

3.62

29%

24%

(4)%

(15)%

Washington

403

199,011

493.8

2.57

394

173,071

439.3

2.50

2%

15%

12%

3%

West

2,934

1,307,027

445.5

2.89

2,708

1,148,268

424.0

2.77

8%

14%

5%

4%

Colorado

1,511

730,924

483.7

3.69

1,435

687,695

479.2

2.97

5%

6%

1%

24%

Utah

215

84,455

392.8

2.18

217

79,203

365.0

2.58

(1)%

7%

8%

(16)%

Mountain

1,726

815,379

472.4

3.39

1,652

766,898

464.2

2.91

4%

6%

2%

16%

Maryland

245

116,813

476.8

1.73

237

116,010

489.5

2.02

3%

1%

(3)%

(14)%

Virginia

272

143,680

528.2

2.75

227

114,713

505.3

2.12

20%

25%

5%

30%

Florida

429

176,862

412.3

2.14

379

143,594

378.9

2.18

13%

23%

9%

(2)%

East

946

437,355

462.3

2.15

843

374,317

444.0

2.12

12%

17%

4%

1%

Total

5,606

$

2,559,761

$

456.6

2.85

5,203

$

2,289,483

$

440.0

2.68

8%

12%

4%

6%


* 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

Active Subdivisions

Three Months Ended

Year Ended

December 31,


%

December 31,


%

December 31,


%

2016

2015

Change

2016

2015

Change

2016

2015

Change

Arizona

28

32

(13)%

29

31

(6)%

30

34

(12)%

California

20

20

0%

21

19

11%

20

20

0%

Nevada

21

20

5%

21

17

24%

21

14

50%

Washington

14

14

0%

14

14

0%

13

13

0%

West

83

86

(3)%

85

81

5%

84

81

4%

Colorado

38

40

(5)%

33

38

(13)%

34

40

(15)%

Utah

9

7

29%

9

8

13%

8

7

14%

Mountain

47

47

0%

42

46

(9)%

42

47

(11)%

Maryland

10

11

(9)%

10

11

(9)%

12

10

20%

Virginia

7

9

(22)%

8

9

(11)%

8

9

(11)%

Florida

17

14

21%

18

15

20%

17

14

21%

East

34

34

0%

36

35

3%

37

33

12%

Total

164

167

(2)%

163

162

1%

163

161

1%

 

Backlog



At December 31,


2016

2015

% Change

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

(Dollars in thousands)

Arizona

322

$

104,899

$

325.8

321

$

89,464

$

278.7

0%

17%

17%

California

481

314,305

653.4

342

220,755

645.5

41%

42%

1%

Nevada

307

108,720

354.1

195

67,901

348.2

57%

60%

2%

Washington

237

120,305

507.6

179

80,134

447.7

32%

50%

13%

West

1,347

648,229

481.2

1,037

458,254

441.9

30%

41%

9%

Colorado

964

466,565

484.0

822

390,635

475.2

17%

19%

2%

Utah

104

41,689

400.9

108

38,549

356.9

(4)%

8%

12%

Mountain

1,068

508,254

475.9

930

429,184

461.5

15%

18%

3%

Maryland

92

45,160

490.9

90

43,317

481.3

2%

4%

2%

Virginia

111

60,701

546.9

101

52,622

521.0

10%

15%

5%

Florida

266

119,305

448.5

174

70,837

407.1

53%

68%

10%

East

469

225,166

480.1

365

166,776

456.9

28%

35%

5%

Total

2,884

$

1,381,649

$

479.1

2,332

$

1,054,214

$

452.1

24%

31%

6%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)

December 31,




2016

2015

% Change

Unsold:




Completed

115

189

(39)%

Under construction

279

334

(16)%

Total unsold started homes

394

523

(25)%

Sold homes under construction or completed

2,186

1,697

29%

Model homes under construction or completed

302

281

7%

Total homes completed or under construction

2,882

2,501

15%

 

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

December 31, 2016

December 31, 2015


Lots
Owned

Lots
Optioned

Total

Lots
Owned

Lots
Optioned

Total

Total %
Change

Arizona

1,521

287

1,808

1,735

201

1,936

(7)%

California

1,702

298

2,000

1,759

352

2,111

(5)%

Nevada

1,934

65

1,999

2,240

100

2,340

(15)%

Washington

862

-

862

832

107

939

(8)%

West

6,019

650

6,669

6,566

760

7,326

(9)%

Colorado

3,982

1,683

5,665

4,086

832

4,918

15%

Utah

306

30

336

442

-

442

(24)%

Mountain

4,288

1,713

6,001

4,528

832

5,360

12%

Maryland

221

62

283

368

219

587

(52)%

Virginia

367

19

386

562

158

720

(46)%

Florida

910

421

1,331

1,078

230

1,308

2%

East

1,498

502

2,000

2,008

607

2,615

(24)%

Total

11,805

2,865

14,670

13,102

2,199

15,301

(4)%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expense

Three Months Ended December 31,


Year Ended December 31,


2016

2015

Change

2016

2015

Change

(Dollars in thousands)

General and administrative expenses

$

27,438

$

30,150

$

(2,712)

$

118,076

$

112,134

$

5,942

General and administrative expenses
















as a percentage of home sale revenues

3.8%

5.4%

(160) bps

5.2%

6.1%

(90) bps
















Marketing expenses

$

17,050

$

14,551

$

2,499

$

58,778

$

52,417

$

6,361

Marketing expenses as a percentage of
















home sale revenues

2.4%

2.6%

(20) bps

2.6%

2.8%

(20) bps
















Commissions expenses

$

23,431

$

18,859

$

4,572

$

73,686

$

61,766

$

11,920

Commissions expenses as a percentage of
















home sale revenues

3.3%

3.4%

(10) bps

3.3%

3.3%

0 bps
















Total selling, general and administrative
















expenses

$

67,919

$

63,560

$

4,359

$

250,540

$

226,317

$

24,223

Total selling, general and administrative
















expenses as a percentage of home
















sale revenues (SG&A Rate)

9.5%

11.5%

(200) bps

11.1%

12.2%

(110) bps

 

Capitalized Interest

Three Months Ended

Year Ended

December 31,


December 31,


2016

2015

2016

2015

(Dollars in thousands)

Homebuilding interest incurred

$

13,170

$

13,240

$

52,681

$

53,061

Less:  Interest capitalized

(13,170)

(13,240)

(52,681)

(53,061)

Homebuilding interest expensed

$

-

$

-

$

-

$

-










Interest capitalized, beginning of period

$

74,415

$

79,244

$

77,541

$

79,231

Plus: Interest capitalized during period

13,170

13,240

52,681

53,061

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

(19,500)

(14,943)

(62,137)

(54,751)

Interest capitalized, end of period

$

68,085

$

77,541

$

68,085

$

77,541

 

SOURCE M.D.C. Holdings, Inc.