News

M.D.C. Holdings Announces 2017 Third Quarter Results
PR Newswire
DENVER

DENVER, Nov. 2, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2017.

2017 Third Quarter Highlights and Comparisons to 2016 Third Quarter

  • Net income up 132% to $61.2 million, or $1.16 per diluted share, from $26.4 million or $0.51 per diluted share*
    • Pretax gain of $52.2 million on investment sales
  • Home sale revenues up 2% to $584.9 million from $575.7 million
  • Gross margin from home sales percentage up 80 basis points from 15.5% to 16.3%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") of 11.8% versus 10.8%
  • Dollar value of net new orders of $596.7 million, up 6% from $563.9 million
  • Ending backlog dollar value up 6% to $1.71 billion from $1.61 billion
  • Lot purchase approvals up 83% to 2,489 lots in 37 communities
  • Last twelve months return on equity improved 500 basis points to 11.8%
  • Increased homebuilding line of credit from $550 million to $700 million
  • Announced entry into Portland market
  • Added $150 million to our senior notes due January 2043 subsequent to quarter end

*Per share amount for 2016 third 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, "Despite the challenges presented to our Florida operations by Hurricane Irma and our Colorado operations by the Weyerhaeuser joist issue, we increased revenues, net order value and ending backlog value year-over-year for the 2017 third quarter. In addition, we recognized significant gains from the opportunistic sale of several investments during the quarter, which drove a 132% increase in our net income."

Mr. Mizel continued, "Solid economic fundamentals continue to support the homebuilding industry, driving robust demand for new homes, especially in the first-time homebuyer segment. To meet this growing demand, we have taken a number of steps to grow community count. First, we substantially increased our approvals of future lots for purchase. Through the first nine months of 2017, we approved the purchase of over 7,800 lots, more than double the approvals from the same period a year ago. An increasing percentage of our lot approvals are focused on the first-time homebuyer segment, which has responded favorably to one of our newest product lines, the Seasons™ collection."

Mr. Mizel continued, "Also, we announced in September that we will commence operations in the greater Portland area, giving us additional exposure to the Pacific Northwest, where we have experienced solid results."

Mr. Mizel concluded, "Lastly, we expanded the capacity under our line of credit at the end of the third quarter from $550 million to $700 million and extended its maturity by two years to December 2022. In addition, at the start of the fourth quarter, we added $150 million to our senior notes due January 2043. We ended our 2017 third quarter with liquidity of almost $1.1 billion, an increase of 40% over the prior year. The higher liquidity provides us with additional resources to fund our increased lot approval activity, providing us the foundation for community count growth in 2018."

Homebuilding

Home sale revenues for the 2017 third quarter increased 2% to $584.9 million, primarily driven by a 2% improvement in deliveries, which was mostly the result of a 2% year-over-year increase in our homes in beginning backlog. However, deliveries were negatively impacted by the Weyerhaeuser joist issue in Colorado and Hurricane Irma in Florida. The deliveries of approximately 115 homes that were previously scheduled to close during the 2017 third quarter were delayed to later quarters as a result of these issues.

For the 2017 third quarter, our gross margin from home sales percentage was 16.3%, an 80 basis point improvement from 15.5% in the prior year period. During the 2017 and 2016 third quarters, we recorded inventory impairments of $4.5 million and $4.7 million, respectively. The impairments recorded for each period negatively impacted gross margin by 80 basis points. Additionally, during the 2016 third quarter, we recorded adjustments of $1.8 million (a 30 basis point negative impact to gross margins) to increase our warranty accrual while for our 2017 third quarter, we recorded an adjustment to decrease our warranty accrual by $0.4 million (a 10 basis point positive impact to gross margins).

Our interest and other income for the three months ended September 30, 2017 and 2016 was $54.5 million and $1.9 million, respectively. The year-over-year increase was driven by a $52.2 million gain from investment sales in the 2017 third quarter. The majority of the gain relates to the sale of the Company's metropolitan district bond securities, which we held for the past ten years and relate to a master-planned community being developed by one of our homebuilding subsidiaries.

Selling, general and administrative expenses for the 2017 third quarter were $69.1 million, up $7.2 million from $61.9 million for the same period in 2016. As we continued to plan for future growth of our business, we increased headcount, resulting in higher compensation-related expenses. Our SG&A rate was up 100 basis points year-over-year to 11.8%. However, absent the Weyerhaeuser joist issue and Hurricane Irma issues discussed above, we estimate that our SG&A rate might have increased by only 40 basis points year-over-year.  

The dollar value of net new orders for the 2017 third quarter increased 6% year-over-year to $596.7 million, as an 8% increase in the average selling price of net new orders was slightly offset by a 2% decline in the number of net new orders. The year-over-year change in our average selling price of net new orders was driven by price increases in existing communities due to robust demand and the mix of sales between markets, partially offset by an increase in the percentage of sales coming from our more affordable product lines. The slight decline in the number of net new orders was caused by a 4% decrease in our average active community count, partially offset by a 2% increase in our monthly sales absorption rate.

Our backlog value at the end of the 2017 third quarter was up 6% year-over-year to $1.71 billion, due mostly to a 6% increase in the average selling price of homes in backlog. The change in average selling price is consistent with that explained for our net new orders.

Financial Services

Income before taxes for our financial services operations for the 2017 third quarter was $9.5 million, a $0.9 million decline from $10.4 million in the 2016 third quarter. The change in average selling price is consistent with the explanation provided above for our net new orders.

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, 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, Seattle and Portland. 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 any 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, 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

Nine Months Ended

September 30,


September 30,


2017

2016

2017

2016

(Dollars in thousands, except per share amounts)

(Unaudited)

Homebuilding:










Home sale revenues

$

584,947

$

575,722

$

1,796,046

$

1,541,337

Land sale revenues

1,340

2,290

2,938

4,930

Total home and land sale revenues

586,287

578,012

1,798,984

1,546,267

Home cost of sales

(485,147)

(481,511)

(1,493,166)

(1,287,373)

Land cost of sales

(1,259)

(2,318)

(2,672)

(4,197)

Inventory impairments

(4,540)

(4,700)

(9,390)

(6,300)

Total cost of sales

(490,946)

(488,529)

(1,505,228)

(1,297,870)

Gross margin

95,341

89,483

293,756

248,397

Selling, general and administrative expenses

(69,102)

(61,904)

(206,109)

(182,621)

Interest and other income

54,548

1,869

59,722

5,358

Other expense

(618)

(1,558)

(1,635)

(2,463)

Other-than-temporary impairment of marketable securities

-

(215)

(51)

(934)

Homebuilding pretax income

80,169

27,675

145,683

67,737










Financial Services:










Revenues

17,464

17,408

54,516

44,248

Expenses

(8,849)

(7,955)

(25,247)

(21,739)

Interest and other income

925

1,035

3,142

2,648

Other-than-temporary impairment of marketable securities

(29)

(111)

(160)

(111)

Financial services pretax income

9,511

10,377

32,251

25,046










Income before income taxes

89,680

38,052

177,934

92,783

Provision for income taxes

(28,517)

(11,693)

(60,651)

(29,948)

Net income

$

61,163

$

26,359

$

117,283

$

62,835










Other comprehensive income (loss) related to










available for sale securities, net of tax

(23,175)

1,028

(19,245)

3,871

Comprehensive income

$

37,988

$

27,387

$

98,038

$

66,706










Earnings per share:










Basic

$

1.18

$

0.51

$

2.27

$

1.22

Diluted

$

1.16

$

0.51

$

2.23

$

1.22










Weighted average common shares outstanding:










Basic

51,650,360

51,297,132

51,502,986

51,286,844

Diluted

52,601,118

51,460,446

52,248,377

51,297,765










Dividends declared per share

$

0.25

$

0.24

$

0.75

$

0.72

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

September 30,


December 31,


2017

2016

ASSETS

(Dollars in thousands, except

per share amounts)

Homebuilding:

(Unaudited)


Cash and cash equivalents

$

351,399

$

259,087

Marketable securities

-

59,770

Restricted cash

8,723

3,778

Trade and other receivables

42,904

42,492

Inventories:




Housing completed or under construction

969,419

874,199

Land and land under development

863,002

884,615

Total inventories

1,832,421

1,758,814

Property and equipment, net

26,304

28,041

Deferred tax asset, net

64,164

74,888

Metropolitan district bond securities (related party)

-

30,162

Prepaid and other assets

72,808

60,463

Total homebuilding assets

2,398,723

2,317,495

Financial Services:




Cash and cash equivalents

26,419

23,822

Marketable securities

40,221

36,436

Mortgage loans held-for-sale, net

89,804

138,774

Other assets

11,135

12,062

Total financial services assets

167,579

211,094

      Total Assets

$

2,566,302

$

2,528,589

LIABILITIES AND EQUITY




Homebuilding:




Accounts payable

$

49,390

$

42,088

Accrued liabilities

151,661

144,566

Revolving credit facility

15,000

15,000

Senior notes, net

842,532

841,646

Total homebuilding liabilities

1,058,583

1,043,300

Financial Services:




Accounts payable and accrued liabilities

51,697

50,734

Mortgage repurchase facility

65,103

114,485

Total financial services liabilities

116,800

165,219

      Total Liabilities

1,175,383

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; 51,933,969 and 51,485,090




 issued and outstanding at September 30, 2017 and December 31, 2016, respectively

519

515

Additional paid-in-capital

995,132

983,532

Retained earnings

392,442

313,952

Accumulated other comprehensive income

2,826

22,071

Total Stockholders' Equity

1,390,919

1,320,070

Total Liabilities and Stockholders' Equity

$

2,566,302

$

2,528,589

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

Three Months Ended

Nine Months Ended

September 30,


September 30,


2017

2016

2017

2016

(Dollars in thousands)

(Unaudited)

Operating Activities:










Net income

$

61,163

$

26,359

$

117,283

$

62,835

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










operating activities:










Stock-based compensation expense

1,062

473

3,100

6,636

Depreciation and amortization


1,501

1,335

4,205

3,702

Inventory impairments

4,540

4,700

9,390

6,300

Other-than-temporary impairment of marketable securities

29

326

211

1,045

Gain on sale of marketable securities

(16,364)

(649)

(18,122)

(911)

Gain on sale of metropolitan district bond securities (related party)

(35,847)

-

(35,847)

-

Deferred income tax expense

12,762

3,484

22,795

11,357

Net changes in assets and liabilities:










      Restricted cash

(3,696)

(675)

(4,945)

(871)

      Trade and other receivables

(5,300)

4,556

119

(21,679)

      Mortgage loans held-for-sale

5,479

710

48,970

(2,319)

      Housing completed or under construction

(62,290)

(42,934)

(101,997)

(229,739)

      Land and land under development

(17,635)

18,430

19,886

141,131

      Prepaid expenses and other assets

(3,627)

(1,598)

(11,229)

(4,573)

      Accounts payable and accrued liabilities

6,500

(1,334)

15,345

18,183

Net cash provided by (used in) operating activities

(51,723)

13,183

69,164

(8,903)










Investing Activities:










Purchases of marketable securities

(5,561)

(12,846)

(17,604)

(28,272)

Sales of marketable securities

71,865

6,108

83,315

56,873

Proceeds from sale of metropolitan district bond securities (related party)

44,253

-

44,253

-

Purchases of property and equipment

(553)

(748)

(1,917)

(3,865)

Net cash provided by (used in) investing activities

110,004

(7,486)

108,047

24,736










Financing Activities:










Advances (payments) on mortgage repurchase facility, net

(4,024)

(1,286)

(49,382)

3,400

Dividend payments

(12,984)

(12,259)

(38,793)

(36,763)

Payments of deferred financing costs

(2,630)

-

(2,630)

-

Proceeds from exercise of stock options

1,199

-

8,503

-

Net cash used in financing activities

(18,439)

(13,545)

(82,302)

(33,363)










Net increase (decrease) in cash and cash equivalents

39,842

(7,848)

94,909

(17,530)

Cash and cash equivalents:










      Beginning of period

337,976

171,306

282,909

180,988

      End of period

$

377,818

$

163,458

$

377,818

$

163,458

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


New Home Deliveries

 Three Months Ended September 30, 



2017

2016

 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)

Arizona

186

$

58,640

$

315.3

221

$

64,314

$

291.0

(16)%

(9)%

8%

California

223

135,745

608.7

195

125,602

644.1

14%

8%

(5)%

Nevada

240

81,483

339.5

177

59,601

336.7

36%

37%

1%

Washington

98

50,936

519.8

75

35,072

467.6

31%

45%

11%

West

747

326,804

437.5

668

284,589

426.0

12%

15%

3%

Colorado

314

146,883

467.8

343

169,858

495.2

(8)%

(14)%

(6)%

Utah

45

18,843

418.7

55

20,728

376.9

(18)%

(9)%

11%

Mountain

359

165,726

461.6

398

190,586

478.9

(10)%

(13)%

(4)%

Maryland

41

21,506

524.5

61

27,297

447.5

(33)%

(21)%

17%

Virginia

68

33,537

493.2

78

39,795

510.2

(13)%

(16)%

(3)%

Florida

102

37,374

366.4

88

33,455

380.2

16%

12%

(4)%

East

211

92,417

438.0

227

100,547

442.9

(7)%

(8)%

(1)%

Total

1,317

$

584,947

$

444.2

1,293

$

575,722

$

445.3

2%

2%

(0)%


 Nine Months Ended September 30, 



2017

2016

 % Change



 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price


 Homes


 Dollar
Value


 Average
Price



(Dollars in thousands)

Arizona

586

$

183,258

$

312.7

582

$

170,352

$

292.7

1%

8%

7%

California

662

403,974

610.2

512

319,116

623.3

29%

27%

(2)%

Nevada

642

223,303

347.8

432

149,861

346.9

49%

49%

0%

Washington

290

149,106

514.2

234

106,665

455.8

24%

40%

13%

West

2,180

959,641

440.2

1,760

745,994

423.9

24%

29%

4%

Colorado

1,064

510,211

479.5

945

463,534

490.5

13%

10%

(2)%

Utah

126

51,409

408.0

145

53,238

367.2

(13)%

(3)%

11%

Mountain

1,190

561,620

471.9

1,090

516,772

474.1

9%

9%

(0)%

Maryland

140

65,870

470.5

178

84,742

476.1

(21)%

(22)%

(1)%

Virginia

171

92,432

540.5

193

98,572

510.7

(11)%

(6)%

6%

Florida

304

116,483

383.2

251

95,257

379.5

21%

22%

1%

East

615

274,785

446.8

622

278,571

447.9

(1)%

(1)%

(0)%

Total

3,985

$

1,796,046

$

450.7

3,472

$

1,541,337

$

443.9

15%

17%

2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Net New Orders

 Three Months Ended September 30, 


2017

2016

% 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

192

$

64,765

$

337.3

2.53

225

$

67,424

$

299.7

2.56

(15)%

(4)%

13%

(1)%

California

250

164,265

657.1

4.17

260

152,901

588.1

4.08

(4)%

7%

12%

2%

Nevada

184

70,130

381.1

3.23

175

58,443

334.0

2.75

5%

20%

14%

17%

Washington

66

37,570

569.2

2.84

83

38,061

458.6

2.26

(20)%

(1)%

24%

26%

West

692

336,730

486.6

3.20

743

316,829

426.4

2.95

(7)%

6%

14%

8%

Colorado

333

162,725

488.7

2.45

321

146,911

457.7

3.82

4%

11%

7%

(36)%

Utah

48

23,041

480.0

2.29

35

14,718

420.5

1.41

37%

57%

14%

62%

Mountain

381

185,766

487.6

2.43

356

161,629

454.0

3.27

7%

15%

7%

(26)%

Maryland

39

17,006

436.1

2.00

50

22,612

452.2

1.42

(22)%

(25)%

(4)%

41%

Virginia

44

20,984

476.9

3.45

52

26,869

516.7

2.04

(15)%

(22)%

(8)%

69%

Florida

114

36,229

317.8

2.20

95

35,938

378.3

1.74

20%

1%

(16)%

26%

East

197

74,219

376.7

2.35

197

85,419

433.6

1.71

0%

(13)%

(13)%

37%

Total

1,270

$

596,715

$

469.9

2.78

1,296

$

563,877

$

435.1

2.72

(2)%

6%

8%

2%

 Nine Months Ended September 30, 


2017

2016

% Change

Homes

Dollar
Value

Average
Price

Monthly
Absorption
Rate *

Homes

Dollar
Value

Average
Price

Monthly
Absorption
Rate *

Homes

Dollar
Value

Average
Price

Monthly
Absorptio
Rate

(Dollars in thousands)

Arizona

638

$

209,547

$

328.4

2.76

684

$

207,456

$

303.3

2.52

(7)%

1%

8%

10%

California

727

465,164

639.8

4.21

797

476,341

597.7

4.36

(9)%

(2)%

7%

(3)%

Nevada

746

265,691

356.2

4.17

634

220,799

348.3

3.31

18%

20%

2%

26%

Washington

332

184,112

554.6

3.80

325

156,546

481.7

2.82

2%

18%

15%

35%

West

2,443

1,124,514

460.3

3.64

2,440

1,061,142

434.9

3.20

0%

6%

6%

14%

Colorado

1,292

627,845

485.9

3.40

1,227

583,309

475.4

4.00

5%

8%

2%

(15)%

Utah

171

77,114

451.0

2.41

178

67,394

378.6

2.47

(4)%

14%

19%

(2)%

Mountain

1,463

704,959

481.9

3.24

1,405

650,703

463.1

3.71

4%

8%

4%

(13)%

Maryland

122

54,468

446.5

1.65

208

96,590

464.4

1.89

(41)%

(44)%

(4)%

(13)%

Virginia

171

88,600

518.1

3.58

210

108,779

518.0

2.75

(19)%

(19)%

0%

30%

Florida

365

128,091

350.9

2.22

325

133,533

410.9

2.19

12%

(4)%

(15)%

1%

East

658

271,159

412.1

2.30

743

338,902

456.1

2.22

(11)%

(20)%

(10)%

4%

Total

4,564

$

2,100,632

$

460.3

3.24

4,588

$

2,050,747

$

447.0

3.11

(1)%

2%

3%

4%

* 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,


%

2017

2016

Change

2017

2016

Change

2017

2016

Change

Arizona

27

30

(10)%

25

29

(14)%

26

30

(13)%

California

23

21

10%

20

21

(5)%

19

20

(5)%

Nevada

19

20

(5)%

19

21

(10)%

20

21

(5)%

Washington

7

14

(50)%

8

12

(33)%

10

13

(23)%

West

76

85

(11)%

72

83

(13)%

75

84

(11)%

Colorado

48

28

71%

45

28

61%

42

34

24%

Utah

7

9

(22)%

7

8

(13)%

8

8

0%

Mountain

55

37

49%

52

36

44%

50

42

19%

Maryland

5

11

(55)%

7

12

(42)%

8

12

(33)%

Virginia

4

8

(50)%

4

9

(56)%

5

9

(44)%

Florida

14

18

(22)%

17

18

(6)%

18

17

6%

East

23

37

(38)%

28

39

(28)%

31

38

(18)%

Total

154

159

(3)%

152

158

(4)%

156

164

(5)%


Backlog

At September 30,



2017

2016

% Change

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

Homes

Dollar
Value

Average
Price

(Dollars in thousands)

Arizona

374

$

133,074

$

355.8

423

$

132,929

$

314.3

(12)%

0%

13%

California

546

378,448

693.1

627

389,622

621.4

(13)%

(3)%

12%

Nevada

411

151,726

369.2

397

139,731

352.0

4%

9%

5%

Washington

279

156,974

562.6

270

133,367

494.0

3%

18%

14%

West

1,610

820,222

509.5

1,717

795,649

463.4

(6)%

3%

10%

Colorado

1,192

595,675

499.7

1,104

530,662

480.7

8%

12%

4%

Utah

149

67,830

455.2

141

53,180

377.2

6%

28%

21%

Mountain

1,341

663,505

494.8

1,245

583,842

468.9

8%

14%

6%

Maryland

74

34,102

460.8

120

56,837

473.6

(38)%

(40)%

(3)%

Virginia

111

58,225

524.5

118

64,228

544.3

(6)%

(9)%

(4)%

Florida

327

132,238

404.4

248

111,499

449.6

32%

19%

(10)%

East

512

224,565

438.6

486

232,564

478.5

5%

(3)%

(8)%

Total

3,463

$

1,708,292

$

493.3

3,448

$

1,612,055

$

467.5

0%

6%

6%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data


Homes Completed or Under Construction (WIP lots)

September 30,


%

2017

2016

Change

Unsold:





Completed

78

81

(4)%

Under construction

218

298

(27)%

Total unsold started homes

296

379

(22)%

Sold homes under construction or completed

2,591

2,626

(1)%

Model homes under construction or completed

319

293

9%

Total homes completed or under construction

3,206

3,298

(3)%


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

September 30, 2017

September 30, 2016



Lots
Owned

Lots
Optioned

Total

Lots
Owned

Lots
Optioned

Total

Total %
Change

Arizona

1,971

761

2,732

1,515

269

1,784

53%

California

1,454

679

2,133

1,753

75

1,828

17%

Nevada

2,150

401

2,551

2,051

200

2,251

13%

Washington

655

64

719

853

-

853

(16)%

West

6,230

1,905

8,135

6,172

544

6,716

21%

Colorado

4,622

2,960

7,582

4,051

1,347

5,398

40%

Utah

456

132

588

380

-

380

55%

Mountain

5,078

3,092

8,170

4,431

1,347

5,778

41%

Maryland

122

48

170

261

143

404

(58)%

Virginia

282

30

312

429

15

444

(30)%

Florida

941

1,231

2,172

962

455

1,417

53%

East

1,345

1,309

2,654

1,652

613

2,265

17%

Total

12,653

6,306

18,959

12,255

2,504

14,759

28%

 

M.D.C. HOLDINGS, INC.

Other Financial Data


Selling, General and Administrative Expenses

Three Months Ended September 30,


Nine Months Ended September 30,



2017

2016

Change

2017

2016

Change

(Dollars in thousands)

General and administrative expenses

$

33,170

$

27,758

$

5,412

$

97,831

$

90,638

$

7,193

General and administrative expenses

















as a percentage of home sale revenues

5.7%

4.8%

90 bps

5.4%

5.9%

(50) bps


















Marketing expenses

$

16,445

$

15,262

$

1,183

$

48,545

$

41,728

$

6,817

Marketing expenses as a percentage of

















home sale revenues

2.8%

2.7%

10 bps

2.7%

2.7%

0 bps


















Commissions expenses

$

19,487

$

18,884

$

603

$

59,733

$

50,255

$

9,478

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

$

69,102

$

61,904

$

7,198

$

206,109

$

182,621

$

23,488

Total selling, general and administrative

















expenses as a percentage of home

















sale revenues

11.8%

10.8%

100 bps

11.5%

11.8%

(30) bps


Capitalized Interest

Three Months Ended

Nine Months Ended

September 30,


September 30,



2017

2016

2017

2016

(Dollars in thousands)

Homebuilding interest incurred

$

13,212

$

13,187

$

39,594

$

39,511

Less:  Interest capitalized

(13,212)

(13,187)

(39,594)

(39,511)

Homebuilding interest expensed

$

-

$

-

$

-

$

-












Interest capitalized, beginning of period

$

62,091

$

77,150

$

68,085

$

77,541

Plus: Interest capitalized during period

13,212

13,187

39,594

39,511

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

(15,087)

(15,922)

(47,463)

(42,637)

Interest capitalized, end of period

$

60,216

$

74,415

$

60,216

$

74,415

 

View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-third-quarter-results-300548220.html

SOURCE M.D.C. Holdings, Inc.