News

M.D.C. Holdings Announces 2017 Fourth Quarter And Full Year Results
PR Newswire
DENVER

DENVER, Feb. 1, 2018 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter and full year ended December 31, 2017.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "Our strong performance in the 2017 full year is evidenced not only by double-digit percentage increases for home sale revenues and net income, but also by the steps we took to strengthen our financial position, enhance shareholder value, and prepare for future growth."

Mr. Mizel continued, "During the year, we added $150 million to our senior notes due January 2043, bringing the total amount outstanding to $500 million. In doing so, we pushed our average senior note maturity to almost 15 years, a strong advantage as interest rates start to rise. In addition, we expanded the capacity under our unsecured line of credit from $550 million to $700 million and extended its maturity to December 2022. We ended the year with liquidity of $1.25 billion, an increase of nearly 40% over the prior year, which provides us with additional resources to fund our future growth. Already, our plans for expansion are well underway, as shown by the nearly 10,400 lots we approved during 2017 for purchase, which was more than double our total in 2016."

Mr. Mizel concluded, "We ended the year on a strong note, with fourth quarter net home orders surging 23% year-over-year. We believe the robust demand is not only the result of solid economic fundamentals, but also our focus on affordable product. At the center of our emphasis on affordability is our SeasonsTM collection, which accounted for 15% of our fourth quarter net orders. Because of our strong sales performance, our yearend backlog value is 16% higher than a year ago, setting the stage for growth in 2018. Given our positive outlook and strong financial position, we enhanced our industry-leading dividend program with an 8% stock dividend in the fourth quarter and a 20% increase in our cash dividend declared at the start of the 2018 first quarter, reflecting our confidence in the prospects for growth against the backdrop of solid industry conditions."

Net income for the 2017 fourth quarter was $24.6 million, or $0.43 per diluted share, versus $40.4 million, or $0.72 per diluted share* for the 2016 fourth quarter. Net income for the 2017 full year was $141.8 million, or $2.48 per diluted share, versus $103.2 million, or $1.85 per diluted share*, for the 2016 full year. Net income and diluted earnings per share for the fourth quarter and year ended December 31, 2017 were impacted by the following tax-related items:

  • The enactment of the Tax Cuts and Jobs Act in December 2017, which required a remeasurement of the Company's deferred tax assets, resulted in a charge of $10.0 million for both the 2017 fourth quarter and full year.
  • The Company's January 1, 2017 adoption of Accounting Standard Update 2016-09, which resulted in the Company recognizing an income tax charge of $2.8 million related to tax deficiencies from stock option expirations for both the 2017 fourth quarter and full year.
  • The Company realized income tax benefits of $3.5 million for the 2017 fourth quarter and $7.2 million for the 2017 full year from the release of a portion of its deferred tax asset valuation allowance relating to the sale and valuation of certain assets.

Additional 2017 Fourth Quarter Highlights and Comparisons to 2016 Fourth Quarter

  • Home sale revenues of $702.6 million versus $715.8 million
    • Home deliveries of 1,556 versus 1,582
    • Approximately 35 home deliveries delayed to later periods due to Weyerhaeuser joist issue (net of Weyerhaeuser closings originally scheduled for the third quarter that closed in the fourth quarter)
  • Gross margin from home sales percentage up 120 basis points to 17.3% from 16.1%
    • Impairments of $0.6 million vs. $3.9 million
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") of 11.6% versus 9.5%
    • Includes $5.4 million of infrequent charges to general and administrative expenses for accrual adjustments and tax planning strategies
  • Financial services segment income of $11.5 million versus $11.4 million
  • Dollar value of net new orders of $574.3 million, up 23% from $465.9 million
    • Absorption rate increased by 31%
  • Lot purchase approvals up 64% to 2,566 lots in 38 communities

Additional 2017 Full Year Highlights and Comparisons to 2016 Full Year

  • Home sale revenues up 11% to $2.50 billion from $2.26 billion
    • Home deliveries of 5,541 increased from 5,054
    • Approximately 120 home deliveries delayed to 2018 due to Weyerhaeuser joist issue
  • Gross margin from home sales percentage up 50 basis points from 16.1% to 16.6%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") of 11.5% versus 11.1%
  • Realized gains from the sale of investments of $54.0 million versus $1.1 million
  • Financial services segment income of $43.8 million versus $36.4 million
  • Dollar value of net new orders of $2.70 billion, up 6%
  • Lot purchase approvals up more than 100% to 10,382 lots in 144 communities
  • Pretax return on equity improved 510 basis points to 16.9%

2018 Outlook – Selected Information

  • Backlog dollar value at 12/31/2017 up 16% year-over-year to $1.60 billion
    • Gross margin from home sales percentage in backlog at 12/31/2017 exceeds 2017 fourth quarter closing gross profit margin of 17.3%
    • Backlog conversion ratio (home deliveries divided by beginning backlog) for Q1 2018 estimated to be in the 38% to 40% range
  • Active subdivision count at 12/31/2017 of 151, down 8% year-over-year
    • Targeting a 10% year-over-year increase in active subdivision count from 151 at 12/31/2017 to at least 166 at 12/31/2018
  • Lots controlled of 19,312 at 12/31/2017, up 32% year-over-year
  • Quarterly dividend of $0.30 ($1.20 annualized) declared in January 2018, up 20% sequentially
  • Preliminary estimate for full year 2018 effective tax rate of 25% to 27%, excluding impact of any potential discrete items

*All per share amounts have been adjusted for the 8% stock dividend declared and paid in the 2017 fourth quarter.

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 195,000 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-K for the year ended December 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

 

Year Ended

 

December 31,

 

December 31,

 

2017

 

2016

 

2017

 

2016

 

(Dollars in thousands, except per share amounts)

Homebuilding:

(Unaudited)

 

(Unaudited)

     

Home sale revenues

$

702,649

 

$

715,816

 

$

2,498,695

 

$

2,257,153

Land sale revenues

 

1,609

   

770

   

4,547

   

5,700

Total home and land sale revenues

 

704,258

   

716,586

   

2,503,242

   

2,262,853

Home cost of sales

 

(580,667)

   

(597,018)

   

(2,073,833)

   

(1,884,391)

Land cost of sales

 

(1,768)

   

(669)

   

(4,440)

   

(4,866)

Inventory impairments

 

(620)

   

(3,873)

   

(10,010)

   

(10,173)

Total cost of sales

 

(583,055)

   

(601,560)

   

(2,088,283)

   

(1,899,430)

Gross margin

 

121,203

   

115,026

   

414,959

   

363,423

Selling, general and administrative expenses

 

(81,379)

   

(67,919)

   

(287,488)

   

(250,540)

Interest and other income

 

1,614

   

1,586

   

7,714

   

6,033

Net realized gains from the sales of marketable securities

 

-

   

68

   

17,775

   

979

Realized gain from the sale of metropolitan district bond securities (related party)

 

 

-

   

 

-

   

 

35,847

   

 

-

Other expense

 

(1,182)

   

(984)

   

(2,817)

   

(3,447)

Other-than-temporary impairment of  marketable securities

 

-

   

(136)

   

(51)

   

(1,070)

Homebuilding pretax income

 

40,256

   

47,641

   

185,939

   

115,378

                       

Financial Services:

                     

Revenues

 

19,856

   

19,743

   

74,372

   

63,991

Expenses

 

(9,287)

   

(9,181)

   

(34,534)

   

(30,920)

Interest and other income

 

1,048

   

1,057

   

4,190

   

3,705

Other-than-temporary impairment of  marketable securities

 

(75)

   

(262)

   

(235)

   

(373)

Financial services pretax income

 

11,542

   

11,357

   

43,793

   

36,403

                       

Income before income taxes

 

51,798

   

58,998

   

229,732

   

151,781

Provision for income taxes

 

(27,246)

   

(18,622)

   

(87,897)

   

(48,570)

Net income

$

24,552

 

$

40,376

 

$

141,835

 

$

103,211

                       

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

 

 

1,166

   

 

2,485

   

 

(18,079)

   

 

6,356

Comprehensive income

$

25,718

 

$

42,861

 

$

123,756

 

$

109,567

                       

Earnings per share

                     

Basic

$

0.44

 

$

0.73

 

$

2.54

 

$

1.86

Diluted

$

0.43

 

$

0.72

 

$

2.48

 

$

1.85

                       

Weighted average common shares outstanding

                     

Basic

 

55,802,550

   

55,398,412

   

55,663,908

   

55,389,898

Diluted

 

57,235,959

   

55,594,874

   

56,901,461

   

55,562,920

                       

Dividends declared per share

$

0.23

 

$

0.22

 

$

0.93

 

$

0.88

 

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

 
 

December 31,

 

December 31,

 

2017

 

2016

 

(Dollars in thousands, except

 

per share amounts)

ASSETS

       

Homebuilding:

       

Cash and cash equivalents

$

472,957

 

$

259,087

Marketable securities

 

49,634

   

59,770

Restricted cash

 

8,812

   

3,778

Trade and other receivables

 

53,362

   

42,492

Inventories:

         

Housing completed or under construction

 

936,685

   

874,199

Land and land under development

 

893,051

   

884,615

Total inventories

 

1,829,736

   

1,758,814

Property and equipment, net

 

26,439

   

28,041

Deferred tax assets, net

 

41,480

   

74,888

Metropolitan district bond securities (related party)

 

-

   

30,162

Prepaid and other assets

 

75,666

   

60,463

Total homebuilding assets

 

2,558,086

   

2,317,495

Financial Services:

         

Cash and cash equivalents

 

32,471

   

23,822

Marketable securities

 

42,004

   

36,436

Mortgage loans held-for-sale, net

 

138,114

   

138,774

Other assets

 

9,617

   

12,062

Total financial services assets

 

222,206

   

211,094

      Total Assets

$

2,780,292

 

$

2,528,589

LIABILITIES AND EQUITY

         

Homebuilding:

         

Accounts payable

$

39,655

 

$

42,088

Accrued liabilities

 

166,312

   

144,566

Revolving credit facility

 

15,000

   

15,000

Senior notes, net

 

986,597

   

841,646

Total homebuilding liabilities

 

1,207,564

   

1,043,300

Financial Services:

         

Accounts payable and accrued liabilities

 

53,101

   

50,734

Mortgage repurchase facility

 

112,340

   

114,485

Total financial services liabilities

 

165,441

   

165,219

      Total Liabilities

 

1,373,005

   

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; 56,123,228 and 51,485,090 issued and outstanding at December 31, 2017 and December 31, 2016, respectively

 

 

561

   

 

515

Additional paid-in-capital

 

1,144,570

   

983,532

Retained earnings

 

258,164

   

313,952

Accumulated other comprehensive income

 

3,992

   

22,071

Total Stockholders' Equity

 

1,407,287

   

1,320,070

Total Liabilities and Stockholders' Equity

$

2,780,292

 

$

2,528,589

 

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

 
 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

2017

 

2016

 

2017

 

2016

 

(Dollars in thousands)

 

(Unaudited)

 

(Unaudited)

     

Operating Activities:

                     

Net income

$

24,552

 

$

40,376

 

$

141,835

 

$

103,211

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

                     

Stock-based compensation expense

 

2,757

   

841

   

5,857

   

7,477

Depreciation and amortization

 

1,116

   

1,430

   

5,321

   

5,132

Inventory impairments

 

620

   

3,873

   

10,010

   

10,173

Other-than-temporary impairment of marketable securities

 

75

   

398

   

286

   

1,443

Net realized loss (gain) on sale of marketable securities

 

-

   

(163)

   

(18,122)

   

(1,074)

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

 

-

   

-

   

(35,847)

   

-

Deferred income tax expense

 

21,992

   

4,788

   

44,787

   

16,145

Net changes in assets and liabilities:

                     

      Restricted cash

 

(89)

   

843

   

(5,034)

   

(28)

      Trade and other receivables

 

(13,882)

   

1,255

   

(13,763)

   

(20,424)

      Mortgage loans held-for-sale

 

(48,310)

   

(20,785)

   

660

   

(23,104)

      Housing completed or under construction

 

32,449

   

101,214

   

(69,548)

   

(128,525)

      Land and land under development

 

(30,055)

   

(16,509)

   

(10,169)

   

124,622

      Prepaid expenses and other assets

 

(1,892)

   

3,537

   

(13,121)

   

(1,036)

      Accounts payable and accrued liabilities

 

6,975

   

3,722

   

22,320

   

21,905

Net cash provided by (used in) operating activities

 

(3,692)

   

124,820

   

65,472

   

115,917

                       

Investing Activities:

                     

Purchases of marketable securities

 

(49,635)

   

(19,778)

   

(67,239)

   

(48,050)

Sales of marketable securities

 

-

   

4,863

   

83,315

   

61,736

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

 

-

   

-

   

44,253

   

-

Purchases of property and equipment

 

(622)

   

(603)

   

(2,539)

   

(4,468)

Net cash provided by (used in) investing activities

 

(50,257)

   

(15,518)

   

57,790

   

9,218

                       

Financing Activities:

                     

Advances (payments) on mortgage repurchase facility, net

 

47,237

   

22,474

   

(2,145)

   

25,874

Proceeds from issuance of senior notes

 

146,463

   

-

   

146,463

   

-

Dividend payments

 

(13,104)

   

(12,325)

   

(51,897)

   

(49,088)

Payments of deferred financing costs

 

(35)

   

-

   

(2,665)

   

-

Proceeds from exercise of stock options

 

998

   

-

   

9,501

   

-

Net cash provided by (used in) financing activities

 

181,559

   

10,149

   

99,257

   

(23,214)

                       

Net increase in cash and cash equivalents

 

127,610

   

119,451

   

222,519

   

101,921

Cash and cash equivalents:

                     

      Beginning of period

 

377,818

   

163,458

   

282,909

   

180,988

      End of period

$

505,428

 

$

282,909

 

$

505,428

 

$

282,909

 

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

 
   

 Three Months Ended December 31, 

   

2017

 

2016

 

 % Change

   

 Homes

 

Dollar
Value

 

Average
Price

 

 Homes

 

Dollar
Value

 

Average
Price

 

 Homes

 

Dollar
Value

 

Average
Price

   

(Dollars in thousands)

 

Arizona

235

 

$

76,785

 

$

326.7

 

207

 

$

62,159

 

$

300.3

 

14%

 

24%

 

9%

 

California

227

   

136,485

   

601.3

 

295

   

176,818

   

599.4

 

(23)%

 

(23)%

 

0%

 

Nevada

228

   

79,608

   

349.2

 

251

   

88,580

   

352.9

 

(9)%

 

(10)%

 

(1)%

 

Washington

120

   

63,550

   

529.6

 

111

   

54,963

   

495.2

 

8%

 

16%

 

7%

 

West

810

   

356,428

   

440.0

 

864

   

382,520

   

442.7

 

(6)%

 

(7)%

 

(1)%

 

Colorado

407

   

199,530

   

490.2

 

424

   

207,774

   

490.0

 

(4)%

 

(4)%

 

0%

 

Utah

94

   

40,494

   

430.8

 

74

   

27,441

   

370.8

 

27%

 

48%

 

16%

 

Mountain

501

   

240,024

   

479.1

 

498

   

235,215

   

472.3

 

1%

 

2%

 

1%

 

Maryland

50

   

23,983

   

479.7

 

65

   

29,337

   

451.3

 

(23)%

 

(18)%

 

6%

 

Virginia

66

   

33,258

   

503.9

 

69

   

36,822

   

533.7

 

(4)%

 

(10)%

 

(6)%

 

Florida

129

   

48,956

   

379.5

 

86

   

31,922

   

371.2

 

50%

 

53%

 

2%

 

East

245

   

106,197

   

433.5

 

220

   

98,081

   

445.8

 

11%

 

8%

 

(3)%

 

Total

1,556

 

$

702,649

 

$

451.6

 

1,582

 

$

715,816

 

$

452.5

 

(2)%

 

(2)%

 

(0)%

     
   

 Year Ended December 31, 

   

2017

 

2016

 

 % Change

   

 Homes

 

Dollar
Value

 

Average
Price

 

 Homes

 

Dollar
Value

 

Average
Price

 

 Homes

 

Dollar
Value

 

 Average
Price

   

(Dollars in thousands)

 

Arizona

821

 

$

260,043

 

$

316.7

 

789

 

$

232,511

 

$

294.7

 

4%

 

12%

 

7%

 

California

889

   

540,459

   

607.9

 

807

   

495,934

   

614.5

 

10%

 

9%

 

(1)%

 

Nevada

870

   

302,911

   

348.2

 

683

   

238,441

   

349.1

 

27%

 

27%

 

(0)%

 

Washington

410

   

212,656

   

518.7

 

345

   

161,628

   

468.5

 

19%

 

32%

 

11%

 

West

2,990

   

1,316,069

   

440.2

 

2,624

   

1,128,514

   

430.1

 

14%

 

17%

 

2%

 

Colorado

1,471

   

709,741

   

482.5

 

1,369

   

671,308

   

490.4

 

7%

 

6%

 

(2)%

 

Utah

220

   

91,903

   

417.7

 

219

   

80,679

   

368.4

 

0%

 

14%

 

13%

 

Mountain

1,691

   

801,644

   

474.1

 

1,588

   

751,987

   

473.5

 

6%

 

7%

 

0%

 

Maryland

190

   

89,853

   

472.9

 

243

   

114,079

   

469.5

 

(22)%

 

(21)%

 

1%

 

Virginia

237

   

125,690

   

530.3

 

262

   

135,394

   

516.8

 

(10)%

 

(7)%

 

3%

 

Florida

433

   

165,439

   

382.1

 

337

   

127,179

   

377.4

 

28%

 

30%

 

1%

 

East

860

   

380,982

   

443.0

 

842

   

376,652

   

447.3

 

2%

 

1%

 

(1)%

 

Total

5,541

 

$

2,498,695

 

$

450.9

 

5,054

 

$

2,257,153

 

$

446.6

 

10%

 

11%

 

1%

 

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

 
 

 Three Months Ended December 31, 

 

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

187

 

$

59,958

 

$

320.6

 

2.35

 

106

 

$

31,380

 

$

296.0

 

1.23

 

76%

 

91%

 

8%

 

91%

California

230

   

141,477

   

615.1

 

3.52

 

149

   

98,158

   

658.8

 

2.42

 

54%

 

44%

 

(7)%

 

45%

Nevada

171

   

64,138

   

375.1

 

2.92

 

161

   

56,618

   

351.7

 

2.50

 

6%

 

13%

 

7%

 

17%

Washington

63

   

34,165

   

542.3

 

3.11

 

78

   

39,911

   

511.7

 

1.86

 

(19)%

 

(14)%

 

6%

 

67%

West

651

   

299,738

   

460.4

 

2.91

 

494

   

226,067

   

457.6

 

1.94

 

32%

 

33%

 

1%

 

50%

Colorado

381

   

189,238

   

496.7

 

2.63

 

284

   

136,139

   

479.4

 

2.89

 

34%

 

39%

 

4%

 

(9)%

Utah

32

   

15,468

   

483.4

 

1.52

 

37

   

15,524

   

419.6

 

1.37

 

(14)%

 

(0)%

 

15%

 

11%

Mountain

413

   

204,706

   

495.7

 

2.49

 

321

   

151,663

   

472.5

 

2.56

 

29%

 

35%

 

5%

 

(3)%

Maryland

28

   

12,178

   

434.9

 

2.20

 

37

   

16,971

   

458.7

 

1.17

 

(24)%

 

(28)%

 

(5)%

 

88%

Virginia

47

   

23,366

   

497.1

 

3.30

 

62

   

32,347

   

521.7

 

2.76

 

(24)%

 

(28)%

 

(5)%

 

20%

Florida

113

   

34,273

   

303.3

 

2.69

 

104

   

38,888

   

373.9

 

1.98

 

9%

 

(12)%

 

(19)%

 

36%

East

188

   

69,817

   

371.4

 

2.72

 

203

   

88,206

   

434.5

 

1.91

 

(7)%

 

(21)%

 

(15)%

 

42%

Total

1,252

 

$

574,261

 

$

458.7

 

2.73

 

1,018

 

$

465,936

 

$

457.7

 

2.09

 

23%

 

23%

 

0%

 

31%

   
 

 Year Ended December 31, 

 

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

825

 

$

273,047

 

$

331.0

 

2.66

 

790

 

$

241,584

 

$

305.8

 

2.21

 

4%

 

13%

 

8%

 

20%

California

957

   

611,067

   

638.5

 

4.05

 

946

   

577,840

   

610.8

 

3.88

 

1%

 

6%

 

5%

 

4%

Nevada

917

   

331,827

   

361.9

 

3.85

 

795

   

278,369

   

350.1

 

3.09

 

15%

 

19%

 

3%

 

25%

Washington

395

   

219,533

   

555.8

 

3.66

 

403

   

198,442

   

492.4

 

2.57

 

(2)%

 

11%

 

13%

 

42%

West

3,094

   

1,435,474

   

464.0

 

3.47

 

2,934

   

1,296,235

   

441.8

 

2.89

 

5%

 

11%

 

5%

 

20%

Colorado

1,673

   

826,488

   

494.0

 

3.20

 

1,511

   

727,192

   

481.3

 

3.69

 

11%

 

14%

 

3%

 

(13)%

Utah

203

   

93,387

   

460.0

 

2.20

 

215

   

83,343

   

387.6

 

2.18

 

(6)%

 

12%

 

19%

 

1%

Mountain

1,876

   

919,875

   

490.3

 

3.05

 

1,726

   

810,535

   

469.6

 

3.39

 

9%

 

13%

 

4%

 

(10)%

Maryland

150

   

66,994

   

446.6

 

1.73

 

245

   

114,250

   

466.3

 

1.73

 

(39)%

 

(41)%

 

(4)%

 

0%

Virginia

218

   

112,647

   

516.7

 

3.47

 

272

   

142,073

   

522.3

 

2.75

 

(20)%

 

(21)%

 

(1)%

 

26%

Florida

478

   

163,507

   

342.1

 

2.30

 

429

   

173,266

   

403.9

 

2.14

 

11%

 

(6)%

 

(15)%

 

7%

East

846

   

343,148

   

405.6

 

2.37

 

946

   

429,589

   

454.1

 

2.15

 

(11)%

 

(20)%

 

(11)%

 

10%

Total

5,816

 

$

2,698,497

 

$

464.0

 

3.12

 

5,606

 

$

2,536,359

 

$

452.4

 

2.85

 

4%

 

6%

 

3%

 

9%

   
 

* 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,

 

%

   

2017

 

2016

 

Change

 

2017

 

2016

 

Change

 

2017

 

2016

 

Change

 

Arizona

26

 

28

 

(7)%

 

27

 

29

 

(7)%

 

26

 

30

 

(13)%

 

California

22

 

20

 

10%

 

22

 

21

 

5%

 

20

 

20

 

0%

 

Nevada

19

 

21

 

(10)%

 

19

 

21

 

(10)%

 

20

 

21

 

(5)%

 

Washington

6

 

14

 

(57)%

 

7

 

14

 

(50)%

 

9

 

13

 

(31)%

 

West

73

 

83

 

(12)%

 

75

 

85

 

(12)%

 

75

 

84

 

(11)%

 

Colorado

49

 

38

 

29%

 

48

 

33

 

45%

 

44

 

34

 

29%

 

Utah

7

 

9

 

(22)%

 

7

 

9

 

(22)%

 

8

 

8

 

0%

 

Mountain

56

 

47

 

19%

 

55

 

42

 

31%

 

52

 

42

 

24%

 

Maryland

3

 

10

 

(70)%

 

3

 

10

 

(70)%

 

7

 

12

 

(42)%

 

Virginia

5

 

7

 

(29)%

 

5

 

8

 

(38)%

 

5

 

8

 

(38)%

 

Florida

14

 

17

 

(18)%

 

14

 

18

 

(22)%

 

17

 

17

 

0%

 

East

22

 

34

 

(35)%

 

22

 

36

 

(39)%

 

29

 

37

 

(22)%

 

Total

151

 

164

 

(8)%

 

152

 

163

 

(7)%

 

156

 

163

 

(4)%

 

Backlog

 
   

At December 31,

   

2017

 

2016

 

% Change

   

Homes

 

Dollar

Value

 

Average
Price

 

Homes

 

Dollar

Value

 

Average
Price

 

Homes

 

Dollar

Value

 

Average
Price

   

(Dollars in thousands)

 

Arizona

326

 

$

119,601

 

$

366.9

 

322

 

$

104,899

 

$

325.8

 

1%

 

14%

 

13%

 

California

549

   

387,339

   

705.5

 

481

   

314,305

   

653.4

 

14%

 

23%

 

8%

 

Nevada

354

   

138,174

   

390.3

 

307

   

108,720

   

354.1

 

15%

 

27%

 

10%

 

Washington

222

   

129,068

   

581.4

 

237

   

120,305

   

507.6

 

(6)%

 

7%

 

15%

 

West

1,451

   

774,182

   

533.6

 

1,347

   

648,229

   

481.2

 

8%

 

19%

 

11%

 

Colorado

1,166

   

594,384

   

509.8

 

964

   

466,565

   

484.0

 

21%

 

27%

 

5%

 

Utah

87

   

43,611

   

501.3

 

104

   

41,689

   

400.9

 

(16)%

 

5%

 

25%

 

Mountain

1,253

   

637,995

   

509.2

 

1,068

   

508,254

   

475.9

 

17%

 

26%

 

7%

 

Maryland

52

   

22,647

   

435.5

 

92

   

45,160

   

490.9

 

(43)%

 

(50)%

 

(11)%

 

Virginia

92

   

48,972

   

532.3

 

111

   

60,701

   

546.9

 

(17)%

 

(19)%

 

(3)%

 

Florida

311

   

118,696

   

381.7

 

266

   

119,305

   

448.5

 

17%

 

(1)%

 

(15)%

 

East

455

   

190,315

   

418.3

 

469

   

225,166

   

480.1

 

(3)%

 

(15)%

 

(13)%

 

Total

3,159

 

$

1,602,492

 

$

507.3

 

2,884

 

$

1,381,649

 

$

479.1

 

10%

 

16%

 

6%

 

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

 
   

December 31,

   
   

2017

 

2016

 

% Change

 

Unsold:

         
 

Completed

95

 

115

 

(17)%

 

Under construction

215

 

279

 

(23)%

 

Total unsold started homes

310

 

394

 

(21)%

 

Sold homes under construction or completed

2,345

 

2,186

 

7%

 

Model homes under construction or completed

338

 

302

 

12%

 

Total homes completed or under construction

2,993

 

2,882

 

4%

 

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

 
   

December 31, 2017

 

December 31, 2016

   
   

Lots
Owned

 

Lots
Optioned

 

Total

 

Lots
Owned

 

Lots
Optioned

 

Total

 

Total %
Change

 

Arizona

2,003

 

700

 

2,703

 

1,521

 

287

 

1,808

 

50%

 

California

1,785

 

678

 

2,463

 

1,702

 

298

 

2,000

 

23%

 

Nevada

2,284

 

561

 

2,845

 

1,934

 

65

 

1,999

 

42%

 

Washington

535

 

162

 

697

 

862

 

-

 

862

 

(19)%

 

West

6,607

 

2,101

 

8,708

 

6,019

 

650

 

6,669

 

31%

 

Colorado

4,496

 

2,736

 

7,232

 

3,982

 

1,683

 

5,665

 

28%

 

Utah

409

 

194

 

603

 

306

 

30

 

336

 

79%

 

Mountain

4,905

 

2,930

 

7,835

 

4,288

 

1,713

 

6,001

 

31%

 

Maryland

88

 

79

 

167

 

221

 

62

 

283

 

(41)%

 

Virginia

220

 

45

 

265

 

367

 

19

 

386

 

(31)%

 

Florida

1,178

 

1,159

 

2,337

 

910

 

421

 

1,331

 

76%

 

East

1,486

 

1,283

 

2,769

 

1,498

 

502

 

2,000

 

38%

 

Total

12,998

 

6,314

 

19,312

 

11,805

 

2,865

 

14,670

 

32%

 

M.D.C. HOLDINGS, INC.

Other Financial Data

 

Selling, General and Administrative Expenses

 
   

Three Months Ended December 31,

 

Year Ended December 31,

   

2017

 

2016

 

Change

 

2017

 

2016

 

Change

   

(Dollars in thousands)

 

General and administrative expenses

$

39,843

 

$

27,438

 

$

12,405

 

$

137,674

 

$

118,076

 

$

19,598

 

General and administrative expenses as a percentage of home sale revenues

 

 

5.7%

   

 

3.8%

   

 

190 bps

   

 

5.5%

   

 

5.2%

   

 

30 bps

                                     
 

Marketing expenses

$

17,843

 

$

17,050

 

$

793

 

$

66,388

 

$

58,778

 

$

7,610

 

Marketing expenses as a percentage of home sale revenues

 

 

2.5%

   

 

2.4%

   

 

10 bps

   

 

2.7%

   

 

2.6%

   

 

10 bps

                                     
 

Commissions expenses

$

23,693

 

$

23,431

 

$

262

 

$

83,426

 

$

73,686

 

$

9,740

 

Commissions expenses as a percentage of home sale revenues

 

 

3.4%

   

 

3.3%

   

 

10 bps

   

 

3.3%

   

 

3.3%

   

 

0 bps

 
                                     
 

Total selling, general and administrative expenses

 

$

 

81,379

 

 

$

 

67,919

 

 

$

 

13,460

 

 

$

 

287,488

 

 

$

 

250,540

 

 

$

 

36,948

 
 

Total selling, general and administrative expenses as a percentage of home sale revenues (SG&A Rate)

 

 

11.6%

   

 

9.5%

   

 

210 bps

   

 

11.5%

   

 

11.1%

   

 

40 bps

 
 

Capitalized Interest

 
   

Three Months Ended

 

Year Ended

   

December 31,

 

December 31,

   

2017

 

2016

 

2017

 

2016

   

(Dollars in thousands)

 

Homebuilding interest incurred

$

15,576

 

$

13,170

 

$

55,170

 

$

52,681

 

Less:  Interest capitalized

 

(15,576)

   

(13,170)

   

(55,170)

   

(52,681)

 

Homebuilding interest expensed

$

-

 

$

-

 

$

-

 

$

-

                         
 

Interest capitalized, beginning of period

$

60,216

 

$

74,415

 

$

68,085

 

$

77,541

 

Plus: Interest capitalized during period

 

15,576

   

13,170

   

55,170

   

52,681

 

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

 

(18,251)

   

(19,500)

   

(65,714)

   

(62,137)

 

Interest capitalized, end of period

$

57,541

 

$

68,085

 

$

57,541

 

$

68,085

 

Cision View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-fourth-quarter-and-full-year-results-300591712.html

SOURCE M.D.C. Holdings, Inc.