News
DENVER, May 9, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the first quarter ended March 31, 2017.
2017 First Quarter Highlights and Comparisons to 2016 First Quarter
- Net income up 133% to $22.2 million, or $0.43 per diluted share, from $9.6 million or $0.19 per diluted share*
- Home sale revenues up 43% to $563.5 million from $394.4 million
- Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved 250 basis points from 14.3% to 11.8%
- Dollar value of net new orders up 3% to $750.0 million from $726.0 million
- Monthly sales absorption pace of 3.5, up 8%
- Ending backlog dollar value up 11% to $1.59 billion from $1.43 billion
- Continued industry-leading dividend payment of $0.25 per share
- Outlook upgraded by Standard & Poor's in April
*Per share amount for 2016 first quarter has 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 advanced the efficiency of our build-to-order operating model during the first quarter, as demonstrated by the strength of our financial results. An improved conversion rate, coupled with a larger backlog to start the quarter, drove a 43% year-over-year increase in home sale revenues and a significant gain in operating leverage. As a result, our first quarter net income increased to $22.2 million, more than double the level of the same quarter a year ago."
Mr. Mizel continued, "Strong performance from both our homebuilding and financial services operations has greatly benefited our returns, with our last twelve months return on equity for the 2017 first quarter expanding by 350 basis points year-over-year to 8.9%. We achieved this improvement in returns without losing focus on the balance sheet, which features a unique combination of low leverage, carefully managed exposure to homebuilding assets, and liquidity of nearly $1.0 billion. Our efforts directed at prudently managing our financial position were recently recognized with an upgrade to our ratings outlook from Standard & Poor's in April."
Mr. Mizel concluded, "Our more affordable collections of home plans continue to be a key focus as we look to expand in most of our markets across the country. The demand for this product is encouraging, bolstering our view that first-time homebuyers should serve as a significant source of growth for new home sales nationwide. Some uncertainty remains because of potential changes in policy from the new administration, but we remain optimistic about the future of the homebuilding industry, supported by a solid macroeconomic environment and favorable dynamics in the balance between housing supply and demand."
Homebuilding
Home sale revenues for the 2017 first quarter increased 43% to $563.5 million, primarily driven by a 38% increase in deliveries, which was mostly the result of a 24% year-over-year increase in our homes in beginning backlog and a 500 basis point year-over-year increase in our backlog conversion rate.
For the 2017 first quarter, our gross margin from home sales was 15.9% a 40 basis point decrease from 16.3% in the prior year period. The 2017 first quarter included $4.9 million of inventory impairments while our 2016 first quarter included $3.0 million of expense to adjust our warranty accrual.
Selling, general and administrative ("SG&A") expenses for the 2017 first quarter were $66.3 million, up $10.0 million from $56.3 million for the same period in 2016. Our SG&A rate improved by 250 basis points to 11.8% for the 2017 first quarter from 14.3% in the 2016 first quarter. This decrease in our SG&A rate was primarily the result of our increase in home sale revenues and, to a lesser extent, a $2.5 million decrease in stock-based compensation.
The dollar value of net new orders for the 2017 first quarter increased 3% year-over-year to $750.0 million. The improvement was the result of a 3% increase net new order activity as our monthly sales absorption pace increased 8% year-over-year. Strong demand for our more affordable home plans was one of the key drivers of the increase in absorption pace. The positive impact of our improved monthly sales absorption pace was partially offset by a 4% year-over-year decrease in our average active community count.
Our backlog value at the end of the 2017 first quarter was up 11% year-over-year to $1.59 billion. The improvement was due mostly to an 8% increase in the number of units in backlog, which was primarily the result of (1) strong sales activity over the last-twelve months and, (2) slightly extended cycle times in certain of our larger markets.
Financial Services
Income before taxes for our financial services operations for the 2017 first quarter was $11.0 million, a $5.4 million increase from $5.6 million in the 2016 first quarter. This improvement was primarily driven by 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 originated.
Income Taxes
For the three months ended March 31, 2017 and 2016, we had effective income tax rates of 38.8% and 33.0%, respectively. The year-over-year increase in our effective tax rate was primarily the result of (1) our 2016 first quarter estimate of our full year effective tax rate including an estimate for energy credits whereas our estimate for the 2017 full year includes no such estimate as a credit for 2017 has not been approved by the U.S. Congress and (2) establishment of a valuation allowance against certain state net operating loss carryforwards where realization is more uncertain at this time.
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-Q for the quarter ended March 31, 2017, 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 | |||||
|
March 31, | |||||
|
2017 |
2016 | ||||
|
(Dollars in thousands, except per share amounts) | |||||
|
(Unaudited) | |||||
|
Homebuilding: |
|||||
|
Home sale revenues |
$ |
563,479 |
$ |
394,420 | |
|
Land sale revenues |
247 |
2,324 | |||
|
Total home and land sale revenues |
563,726 |
396,744 | |||
|
Home cost of sales |
(468,942) |
(330,026) | |||
|
Land cost of sales |
(211) |
(1,663) | |||
|
Inventory impairments |
(4,850) |
- | |||
|
Total cost of sales |
(474,003) |
(331,689) | |||
|
Gross margin |
89,723 |
65,055 | |||
|
Selling, general and administrative expenses |
(66,298) |
(56,277) | |||
|
Interest and other income |
2,327 |
1,850 | |||
|
Other expense |
(351) |
(1,541) | |||
|
Other-than-temporary impairment of marketable securities |
(50) |
(431) | |||
|
Homebuilding pretax income |
25,351 |
8,656 | |||
|
Financial Services: |
|||||
|
Revenues |
17,979 |
11,017 | |||
|
Expenses |
(7,898) |
(6,241) | |||
|
Interest and other income |
979 |
841 | |||
|
Other-than-temporary impairment of marketable securities |
(51) |
- | |||
|
Financial services pretax income |
11,009 |
5,617 | |||
|
Income before income taxes |
36,360 |
14,273 | |||
|
Provision for income taxes |
(14,111) |
(4,710) | |||
|
Net income |
$ |
22,249 |
$ |
9,563 | |
|
Other comprehensive income related to available for sale securities, net of tax |
1,986 |
1,948 | |||
|
Comprehensive income |
$ |
24,235 |
$ |
11,511 | |
|
Earnings per share: |
|||||
|
Basic |
$ |
0.43 |
$ |
0.19 | |
|
Diluted |
$ |
0.43 |
$ |
0.19 | |
|
Weighted average common shares outstanding |
|||||
|
Basic |
51,340,890 |
51,269,370 | |||
|
Diluted |
51,590,017 |
51,275,117 | |||
|
Dividends declared per share |
$ |
0.25 |
$ |
0.24 | |
|
M.D.C. HOLDINGS, INC. | |||||
|
Consolidated Balance Sheets | |||||
|
March 31, |
December 31, | ||||
|
2017 |
2016 | ||||
|
ASSETS |
(Dollars in thousands, except | ||||
|
per share amounts) | |||||
|
Homebuilding: |
(Unaudited) |
||||
|
Cash and cash equivalents |
$ |
296,731 |
$ |
259,087 | |
|
Marketable securities |
62,316 |
59,770 | |||
|
Restricted cash |
4,229 |
3,778 | |||
|
Trade and other receivables |
36,210 |
42,492 | |||
|
Inventories: |
|||||
|
Housing completed or under construction |
890,883 |
874,199 | |||
|
Land and land under development |
855,208 |
884,615 | |||
|
Total inventories |
1,746,091 |
1,758,814 | |||
|
Property and equipment, net |
27,984 |
28,041 | |||
|
Deferred tax asset, net |
70,451 |
74,888 | |||
|
Metropolitan district bond securities (related party) |
31,004 |
30,162 | |||
|
Prepaid and other assets |
63,419 |
60,463 | |||
|
Total homebuilding assets |
2,338,435 |
2,317,495 | |||
|
Financial Services: |
|||||
|
Cash and cash equivalents |
23,331 |
23,822 | |||
|
Marketable securities |
37,549 |
36,436 | |||
|
Mortgage loans held-for-sale, net |
97,373 |
138,774 | |||
|
Other assets |
9,860 |
12,062 | |||
|
Total financial services assets |
168,113 |
211,094 | |||
|
Total Assets |
$ |
2,506,548 |
$ |
2,528,589 | |
|
LIABILITIES AND EQUITY |
|||||
|
Homebuilding: |
|||||
|
Accounts payable |
$ |
52,351 |
$ |
42,088 | |
|
Accrued liabilities |
141,707 |
144,566 | |||
|
Revolving credit facility |
15,000 |
15,000 | |||
|
Senior notes, net |
841,937 |
841,646 | |||
|
Total homebuilding liabilities |
1,050,995 |
1,043,300 | |||
|
Financial Services: |
|||||
|
Accounts payable and accrued liabilities |
51,401 |
50,734 | |||
|
Mortgage repurchase facility |
70,542 |
114,485 | |||
|
Total financial services liabilities |
121,943 |
165,219 | |||
|
Total Liabilities |
1,172,938 |
1,208,519 | |||
|
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; 51,649,695 and 51,485,090 issued and outstanding at March 31, 2017 and December 31, 2016, respectively |
516 |
515 | |||
|
Additional paid-in-capital |
985,733 |
983,532 | |||
|
Retained earnings |
323,304 |
313,952 | |||
|
Accumulated other comprehensive income |
24,057 |
22,071 | |||
|
Total Stockholders' Equity |
1,333,610 |
1,320,070 | |||
|
Total Liabilities and Stockholders' Equity |
$ |
2,506,548 |
$ |
2,528,589 | |
|
M.D.C. HOLDINGS, INC. | |||||
|
Consolidated Statement of Cash Flows | |||||
|
Three Months Ended | |||||
|
March 31, | |||||
|
2017 |
2016 | ||||
|
(Dollars in thousands) | |||||
|
(Unaudited) | |||||
|
Operating Activities: |
|||||
|
Net income |
$ |
22,249 |
$ |
9,563 | |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||
|
Stock-based compensation expense |
595 |
2,987 | |||
|
Depreciation and amortization |
1,328 |
1,073 | |||
|
Inventory impairments |
4,850 |
- | |||
|
Other-than-temporary impairment of marketable securities |
101 |
431 | |||
|
Loss (gain) on sale of marketable securities |
(561) |
915 | |||
|
Deferred income tax expense |
3,220 |
1,788 | |||
|
Net changes in assets and liabilities: |
|||||
|
Restricted cash |
(451) |
401 | |||
|
Trade and other receivables |
7,326 |
(15,251) | |||
|
Mortgage loans held-for-sale |
41,401 |
33,477 | |||
|
Housing completed or under construction |
(20,866) |
(115,357) | |||
|
Land and land under development |
29,030 |
68,311 | |||
|
Prepaid expenses and other assets |
(2,407) |
911 | |||
|
Accounts payable and accrued liabilities |
8,071 |
(4,234) | |||
|
Net cash provided by (used in) operating activities |
93,886 |
(14,985) | |||
|
Investing Activities: |
|||||
|
Purchases of marketable securities |
(5,361) |
(5,482) | |||
|
Sales of marketable securities |
4,983 |
20,600 | |||
|
Purchases of property and equipment |
(1,122) |
(1,944) | |||
|
Net cash provided by (used in) investing activities |
(1,500) |
13,174 | |||
|
Financing Activities: |
|||||
|
Payments on mortgage repurchase facility, net |
(43,943) |
(28,390) | |||
|
Dividend payments |
(12,897) |
(12,252) | |||
|
Proceeds from exercise of stock options |
1,607 |
- | |||
|
Net cash used in financing activities |
(55,233) |
(40,642) | |||
|
Net increase (decrease) in cash and cash equivalents |
37,153 |
(42,453) | |||
|
Cash and cash equivalents: |
|||||
|
Beginning of period |
282,909 |
180,988 | |||
|
End of period |
$ |
320,062 |
$ |
138,535 | |
|
M.D.C. HOLDINGS, INC. | ||||||||||||||||||||||||||||
|
Homebuilding Operational Data | ||||||||||||||||||||||||||||
|
New Home Deliveries | ||||||||||||||||||||||||||||
|
Three Months Ended March 31, |
||||||||||||||||||||||||||||
|
2017 |
2016 |
% Change | ||||||||||||||||||||||||||
|
Homes |
Dollar |
Average Price |
Homes |
Dollar |
Average Price |
Homes |
Dollar |
Average Price | ||||||||||||||||||||
|
(Dollars in thousands) | ||||||||||||||||||||||||||||
|
Arizona |
188 |
$ |
55,676 |
$ |
296.1 |
160 |
$ |
45,062 |
$ |
281.6 |
18% |
24% |
5% | |||||||||||||||
|
California |
229 |
136,483 |
596.0 |
125 |
75,530 |
604.2 |
83% |
81% |
(1)% | |||||||||||||||||||
|
Nevada |
187 |
66,133 |
353.7 |
107 |
38,426 |
359.1 |
75% |
72% |
(2)% | |||||||||||||||||||
|
Washington |
101 |
50,788 |
502.9 |
74 |
32,357 |
437.3 |
36% |
57% |
15% | |||||||||||||||||||
|
West |
705 |
309,080 |
438.4 |
466 |
191,375 |
410.7 |
51% |
62% |
7% | |||||||||||||||||||
|
Colorado |
336 |
160,187 |
476.7 |
249 |
121,575 |
488.3 |
35% |
32% |
(2)% | |||||||||||||||||||
|
Utah |
33 |
12,704 |
385.0 |
39 |
14,575 |
373.7 |
(15)% |
(13)% |
3% | |||||||||||||||||||
|
Mountain |
369 |
172,891 |
468.5 |
288 |
136,150 |
472.7 |
28% |
27% |
(1)% | |||||||||||||||||||
|
Maryland |
35 |
16,603 |
474.4 |
34 |
15,806 |
464.9 |
3% |
5% |
2% | |||||||||||||||||||
|
Virginia |
50 |
26,529 |
530.6 |
40 |
20,154 |
503.9 |
25% |
32% |
5% | |||||||||||||||||||
|
Florida |
97 |
38,376 |
395.6 |
79 |
30,935 |
391.6 |
23% |
24% |
1% | |||||||||||||||||||
|
East |
182 |
81,508 |
447.8 |
153 |
66,895 |
437.2 |
19% |
22% |
2% | |||||||||||||||||||
|
Total |
1,256 |
$ |
563,479 |
$ |
448.6 |
907 |
$ |
394,420 |
$ |
434.9 |
38% |
43% |
3% | |||||||||||||||
|
Net New Orders | |||||||||||||||||||||||||||
|
Three Months Ended March 31, |
|||||||||||||||||||||||||||
|
2017 |
2016 |
% Change | |||||||||||||||||||||||||
|
Homes |
Dollar |
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 |
216 |
$ |
66,146 |
$ |
306.2 |
2.80 |
223 |
$ |
65,566 |
$ |
294.0 |
2.38 |
(3)% |
1% |
4% |
18% | |||||||||||
|
California |
243 |
151,023 |
621.5 |
4.05 |
229 |
140,369 |
613.0 |
3.72 |
6% |
8% |
1% |
9% | |||||||||||||||
|
Nevada |
295 |
97,496 |
330.5 |
4.80 |
229 |
77,446 |
338.2 |
3.59 |
29% |
26% |
(2)% |
34% | |||||||||||||||
|
Washington |
139 |
72,734 |
523.3 |
4.03 |
124 |
58,639 |
472.9 |
3.01 |
12% |
24% |
11% |
34% | |||||||||||||||
|
West |
893 |
387,399 |
433.8 |
3.83 |
805 |
342,020 |
424.9 |
3.09 |
11% |
13% |
2% |
24% | |||||||||||||||
|
Colorado |
501 |
233,286 |
465.6 |
4.31 |
493 |
229,119 |
464.7 |
4.11 |
2% |
2% |
0% |
5% | |||||||||||||||
|
Utah |
56 |
22,806 |
407.3 |
2.02 |
66 |
23,794 |
360.5 |
2.84 |
(15)% |
(4)% |
13% |
(29)% | |||||||||||||||
|
Mountain |
557 |
256,092 |
459.8 |
3.87 |
559 |
252,913 |
452.4 |
3.90 |
(0)% |
1% |
2% |
(1)% | |||||||||||||||
|
Maryland |
51 |
21,996 |
431.3 |
1.79 |
89 |
46,760 |
525.4 |
2.58 |
(43)% |
(53)% |
(18)% |
(31)% | |||||||||||||||
|
Virginia |
64 |
33,531 |
523.9 |
3.28 |
85 |
41,378 |
486.8 |
3.33 |
(25)% |
(19)% |
8% |
(2)% | |||||||||||||||
|
Florida |
131 |
50,985 |
389.2 |
2.30 |
108 |
42,907 |
397.3 |
2.57 |
21% |
19% |
(2)% |
(11)% | |||||||||||||||
|
East |
246 |
106,512 |
433.0 |
2.34 |
282 |
131,045 |
464.7 |
2.76 |
(13)% |
(19)% |
(7)% |
(15)% | |||||||||||||||
|
Total |
1,696 |
$ |
750,003 |
$ |
442.2 |
3.52 |
1,646 |
$ |
725,978 |
$ |
441.1 |
3.26 |
3% |
3% |
0% |
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 | ||||||||||||
|
Active Subdivisions |
Three Months Ended | |||||||||||
|
March 31, |
% |
March 31, |
% | |||||||||
|
2017 |
2016 |
Change |
2017 |
2016 |
Change | |||||||
|
Arizona |
27 |
30 |
(10)% |
26 |
31 |
(16)% | ||||||
|
California |
19 |
21 |
(10)% |
20 |
21 |
(5)% | ||||||
|
Nevada |
21 |
23 |
(9)% |
21 |
21 |
0% | ||||||
|
Washington |
10 |
12 |
(17)% |
12 |
14 |
(14)% | ||||||
|
West |
77 |
86 |
(10)% |
79 |
87 |
(9)% | ||||||
|
Colorado |
40 |
40 |
0% |
39 |
40 |
(3)% | ||||||
|
Utah |
8 |
8 |
0% |
9 |
8 |
13% | ||||||
|
Mountain |
48 |
48 |
0% |
48 |
48 |
0% | ||||||
|
Maryland |
9 |
13 |
(31)% |
10 |
12 |
(17)% | ||||||
|
Virginia |
5 |
7 |
(29)% |
7 |
9 |
(22)% | ||||||
|
Florida |
21 |
15 |
40% |
19 |
14 |
36% | ||||||
|
East |
35 |
35 |
0% |
36 |
35 |
3% | ||||||
|
Total |
160 |
169 |
(5)% |
163 |
170 |
(4)% | ||||||
|
Backlog | ||||||||||||||||||||||
|
March 31, |
||||||||||||||||||||||
|
2017 |
2016 |
% Change | ||||||||||||||||||||
|
Homes |
Dollar |
Average Price |
Homes |
Dollar |
Average Price |
Homes |
Dollar |
Average Price | ||||||||||||||
|
(Dollars in thousands) | ||||||||||||||||||||||
|
Arizona |
350 |
$ |
116,984 |
$ |
334.2 |
384 |
$ |
116,646 |
$ |
303.8 |
(9)% |
0% |
10% | |||||||||
|
California |
495 |
331,926 |
670.6 |
446 |
297,790 |
667.7 |
11% |
11% |
0% | |||||||||||||
|
Nevada |
415 |
140,611 |
338.8 |
317 |
107,850 |
340.2 |
31% |
30% |
(0)% | |||||||||||||
|
Washington |
275 |
144,055 |
523.8 |
229 |
109,733 |
479.2 |
20% |
31% |
9% | |||||||||||||
|
West |
1,535 |
733,576 |
477.9 |
1,376 |
632,019 |
459.3 |
12% |
16% |
4% | |||||||||||||
|
Colorado |
1,129 |
548,614 |
485.9 |
1,066 |
516,264 |
484.3 |
6% |
6% |
0% | |||||||||||||
|
Utah |
127 |
52,179 |
410.9 |
135 |
48,215 |
357.1 |
(6)% |
8% |
15% | |||||||||||||
|
Mountain |
1,256 |
600,793 |
478.3 |
1,201 |
564,479 |
470.0 |
5% |
6% |
2% | |||||||||||||
|
Maryland |
108 |
50,837 |
470.7 |
145 |
70,575 |
486.7 |
(26)% |
(28)% |
(3)% | |||||||||||||
|
Virginia |
125 |
68,933 |
551.5 |
146 |
76,790 |
526.0 |
(14)% |
(10)% |
5% | |||||||||||||
|
Florida |
300 |
132,845 |
442.8 |
203 |
89,046 |
438.7 |
48% |
49% |
1% | |||||||||||||
|
East |
533 |
252,615 |
473.9 |
494 |
236,411 |
478.6 |
8% |
7% |
(1)% | |||||||||||||
|
Total |
3,324 |
$ |
1,586,984 |
$ |
477.4 |
3,071 |
$ |
1,432,909 |
$ |
466.6 |
8% |
11% |
2% | |||||||||
|
M.D.C. HOLDINGS, INC. | ||||||
|
Homebuilding Operational Data | ||||||
|
Homes Completed or Under Construction (WIP lots) | ||||||
|
March 31, |
% | |||||
|
2017 |
2016 |
Change | ||||
|
Unsold: |
||||||
|
Completed |
82 |
133 |
(38)% | |||
|
Under construction |
212 |
266 |
(20)% | |||
|
Total unsold started homes |
294 |
399 |
(26)% | |||
|
Sold homes under construction or completed |
2,322 |
2,169 |
7% | |||
|
Model homes under construction or completed |
324 |
296 |
9% | |||
|
Total homes completed or under construction |
2,940 |
2,864 |
3% | |||
|
Lots Owned and Optioned (including homes completed or under construction) | ||||||||||||||
|
March 31, 2017 |
March 31, 2016 |
|||||||||||||
|
Lots Owned |
Lots Optioned |
Total |
Lots Owned |
Lots Optioned |
Total |
Total % Change | ||||||||
|
Arizona |
1,736 |
271 |
2,007 |
1,575 |
247 |
1,822 |
10% | |||||||
|
California |
1,526 |
245 |
1,771 |
1,754 |
232 |
1,986 |
(11)% | |||||||
|
Nevada |
1,827 |
251 |
2,078 |
2,234 |
- |
2,234 |
(7)% | |||||||
|
Washington |
762 |
- |
762 |
892 |
19 |
911 |
(16)% | |||||||
|
West |
5,851 |
767 |
6,618 |
6,455 |
498 |
6,953 |
(5)% | |||||||
|
Colorado |
4,265 |
1,398 |
5,663 |
3,892 |
819 |
4,711 |
20% | |||||||
|
Utah |
350 |
49 |
399 |
403 |
72 |
475 |
(16)% | |||||||
|
Mountain |
4,615 |
1,447 |
6,062 |
4,295 |
891 |
5,186 |
17% | |||||||
|
Maryland |
196 |
79 |
275 |
354 |
199 |
553 |
(50)% | |||||||
|
Virginia |
336 |
- |
336 |
528 |
152 |
680 |
(51)% | |||||||
|
Florida |
845 |
739 |
1,584 |
1,035 |
194 |
1,229 |
29% | |||||||
|
East |
1,377 |
818 |
2,195 |
1,917 |
545 |
2,462 |
(11)% | |||||||
|
Total |
11,843 |
3,032 |
14,875 |
12,667 |
1,934 |
14,601 |
2% | |||||||
|
M.D.C. HOLDINGS, INC. | |||||||||
|
Other Financial Data | |||||||||
|
Selling, General and Administrative Expense | |||||||||
|
Three Months Ended March 31, | |||||||||
|
2017 |
2016 |
Change | |||||||
|
(Dollars in thousands) | |||||||||
|
General and administrative expenses |
$ |
32,369 |
$ |
31,465 |
$ |
904 | |||
|
General and administrative expenses as a percentage of home sale revenues |
5.7% |
8.0% |
(230) bps | ||||||
|
Marketing expenses |
$ |
15,124 |
$ |
12,034 |
$ |
3,090 | |||
|
Marketing expenses as a percentage of home sale revenues |
2.7% |
3.1% |
(40) bps | ||||||
|
Commissions expenses |
$ |
18,805 |
$ |
12,778 |
$ |
6,027 | |||
|
Commissions expenses as a percentage of home sale revenues |
3.3% |
3.2% |
10 bps | ||||||
|
Total selling, general and administrative expenses |
$ |
66,298 |
$ |
56,277 |
$ |
10,021 | |||
|
Total selling, general and administrative expenses as a percentage of home sale revenues (SG&A Rate) |
11.8% |
14.3% |
(250) bps | ||||||
|
Capitalized Interest | ||||||
|
Three Months Ended | ||||||
|
March 31, | ||||||
|
2017 |
2016 | |||||
|
(Dollars in thousands) | ||||||
|
Homebuilding interest incurred |
$ |
13,188 |
$ |
13,218 | ||
|
Less: Interest capitalized |
(13,188) |
(13,218) | ||||
|
Homebuilding interest expensed |
$ |
- |
$ |
- | ||
|
Interest capitalized, beginning of period |
$ |
68,085 |
$ |
77,541 | ||
|
Plus: Interest capitalized during period |
13,188 |
13,218 | ||||
|
Less: Previously capitalized interest included in home and land cost of sales |
(15,197) |
(10,976) | ||||
|
Interest capitalized, end of period |
$ |
66,076 |
$ |
79,783 | ||
SOURCE M.D.C. Holdings, Inc.
