News

M.D.C. Holdings Announces 2018 Second Quarter Results
Low new and existing home inventories, healthy consumer demand, and the success of our more affordable product offering combined to drive a favorable pricing environment, resulting in the continued expansion of our gross margin during the second quarter of 2018.
PR Newswire
DENVER

DENVER, Aug. 1, 2018 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the second quarter ended June 30, 2018.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "We are very pleased with our performance in the second quarter of 2018, as we posted year-over-year improvements in several key areas of our business and laid the foundation for future growth.  The strategic initiatives our Company has implemented over the last several quarters coupled with our strong execution in the quarter culminated in a 48% year-over-year increase in pretax income.  We continued to see healthy demand in our markets, especially at affordable price points, which allowed us to raise prices in a majority of our communities during the quarter.  We believe we are well positioned as we head into the second half of the year, given the strong fundamentals we see in our markets and our positioning within those markets."

Mr. Mizel continued, "The second quarter also represented the seventh consecutive quarter in which we approved more lots for purchase than we did in the year ago period.  Consistent with the first quarter of 2018, almost 50% of those lot approvals are targeted to be a part of our Seasons Collection or other more-affordable product lines.  At the end of the quarter, we had more than 23,500 lots under control, representing a 38% increase over the second quarter of 2017.  Our recent land acquisition efforts give us a great runway for growth and position us to benefit from the rapidly improving market for affordable homes."

Mr. Mizel concluded, "We are very optimistic about the future of our Company given our operational performance this quarter, our recent land acquisition activity and our strong balance sheet.  The strategic initiatives we implemented over the last several quarters put us on a path to better consistency in our operating results.  The effectiveness of these initiatives was evident in the second quarter of 2018, and we are excited for what the future holds."

2018 Second Quarter Highlights and Comparisons to 2017 Second Quarter

  • Net income up 89% to $63.9 million, or $1.12 per diluted share, from $33.9 million or $0.60 per diluted share*
    • Effective tax rate of 16.6% vs. 34.7%
  • Pretax income up 48% to $76.6 million from $51.9 million
  • Home sale revenues up 16% to $749.6 million from $647.6 million
    • Average selling price of homes delivered up 8% to $496,000
  • Gross margin from home sales up 230 basis points to 19.1% from 16.8%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") even with prior year-over-year at 10.9%
  • Dollar value of net new orders up 9% to $776.2 million from $710.6 million
    • Monthly sales absorption pace of 3.68, up 8%
  • Lot purchase approvals increased by 10% to 3,678 lots in 49 communities

* Per share amount for the 2017 second quarter has been adjusted for the 8% stock dividend declared and paid in the 2017 fourth quarter

2018 Outlook – Selected Information

  • Backlog dollar value at June 30, 2018 up 16% year-over-year to $1.95 billion
    • Gross margin from home sales in backlog at 6/30/2018 roughly even with 2018 second quarter closing gross margin of 19.1%
    • Average selling price of homes in backlog at 6/30/2018 of $487,400 is lower than 2018 second quarter closing average sales price of $496,000
    • Backlog conversion ratio (home deliveries divided by beginning backlog) for the third quarter estimated to be in the 40% to 41% range
  • Active subdivision count at 6/30/2018 of 164, up 7% year-over-year and 9% from 12/31/2017
    • Targeting a 10% year-over-year increase in active subdivision count by year end (from 151 at 12/31/2017 to at least 166 at 12/31/2018)
  • Lots controlled of 23,626 at 6/30/2018, up 38% year-over-year
  • Quarterly dividend of $0.30 ($1.20 annualized) declared in July 2018, up 30% year-over-year (after adjusting for 8% stock dividend in December 2017)
  • Estimated effective tax rate for the final six months of 2018 between 25% and 27%, excluding impact of any further discrete items

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-Q for the quarter ended June 30, 2018, 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

 

Six Months Ended

 

June 30,

 

June 30,

 

2018

 

2017

 

2018

 

2017

 

(Dollars in thousands, except per share amounts)

 

(Unaudited)

Homebuilding:

                     

Home sale revenues

$

749,608

 

$

647,620

 

$

1,357,296

 

$

1,211,099

Land sale revenues

 

-

   

1,351

   

-

   

1,598

Total home and land sale revenues

 

749,608

   

648,971

   

1,357,296

   

1,212,697

Home cost of sales

 

(606,403)

   

(539,077)

   

(1,103,035)

   

(1,008,019)

Land cost of sales

 

-

   

(1,202)

   

-

   

(1,413)

Inventory impairments

 

(200)

   

-

   

(750)

   

(4,850)

Total cost of sales

 

(606,603)

   

(540,279)

   

(1,103,785)

   

(1,014,282)

Gross profit

 

143,005

   

108,692

   

253,511

   

198,415

Selling, general and administrative expenses

 

(81,571)

   

(70,709)

   

(152,912)

   

(137,007)

Interest and other income

 

1,774

   

2,847

   

3,633

   

5,174

Other expense

 

(871)

   

(666)

   

(1,434)

   

(1,017)

Other-than-temporary impairment of marketable securities

 

-

   

(1)

   

-

   

(51)

Homebuilding pretax income

 

62,337

   

40,163

   

102,798

   

65,514

                       

Financial Services:

                     

Revenues

 

21,372

   

19,073

   

40,407

   

37,052

Expenses

 

(9,611)

   

(8,500)

   

(18,442)

   

(16,398)

Interest and other income

 

2,518

   

1,238

   

2,385

   

2,217

Other-than-temporary impairment of marketable securities

 

-

   

(80)

   

-

   

(131)

Financial services pretax income

 

14,279

   

11,731

   

24,350

   

22,740

                       

Income before income taxes

 

76,616

   

51,894

   

127,148

   

88,254

Provision for income taxes

 

(12,717)

   

(18,023)

   

(24,485)

   

(32,134)

Net income

$

63,899

 

$

33,871

 

$

102,663

 

$

56,120

                       

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

 

 

-

   

 

1,944

   

 

-

   

 

3,930

Comprehensive income

$

63,899

 

$

35,815

 

$

102,663

 

$

60,050

                       

Earnings per share:

                     

Basic

$

1.13

 

$

0.61

 

$

1.82

 

$

1.01

Diluted

$

1.12

 

$

0.60

 

$

1.79

 

$

0.99

                       

Weighted average common shares outstanding:

                     

Basic

 

56,102,684

   

55,635,454

   

55,987,525

   

55,542,325

Diluted

 

57,041,006

   

56,639,653

   

56,968,002

   

56,231,245

                       

Dividends declared per share

$

0.30

 

$

0.23

 

$

0.60

 

$

0.46

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

 
 

June 30,

 

December 31,

 

2018

 

2017

ASSETS

(Dollars in thousands, except

 

per share amounts)

Homebuilding:

(Unaudited)

     

Cash and cash equivalents

$

378,219

 

$

472,957

Marketable securities

 

-

   

49,634

Restricted cash

 

7,443

   

8,812

Trade and other receivables

 

54,719

   

53,362

Inventories:

         

Housing completed or under construction

 

1,077,406

   

936,685

Land and land under development

 

977,694

   

893,051

Total inventories

 

2,055,100

   

1,829,736

Property and equipment, net

 

55,112

   

26,439

Deferred tax asset, net

 

37,350

   

41,480

Prepaid and other assets

 

45,450

   

75,666

Total homebuilding assets

 

2,633,393

   

2,558,086

Financial Services:

         

Cash and cash equivalents

 

47,661

   

32,471

Marketable securities

 

44,328

   

42,004

Mortgage loans held-for-sale, net

 

107,185

   

138,114

Other assets

 

15,062

   

9,617

Total financial services assets

 

214,236

   

222,206

      Total Assets

$

2,847,629

 

$

2,780,292

LIABILITIES AND EQUITY

         

Homebuilding:

         

Accounts payable

$

52,513

 

$

39,655

Accrued liabilities

 

168,899

   

166,312

Revolving credit facility

 

15,000

   

15,000

Senior notes, net

 

987,272

   

986,597

Total homebuilding liabilities

 

1,223,684

   

1,207,564

Financial Services:

         

Accounts payable and accrued liabilities

 

53,285

   

53,101

Mortgage repurchase facility

 

80,819

   

112,340

Total financial services liabilities

 

134,104

   

165,441

      Total Liabilities

 

1,357,788

   

1,373,005

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; 56,435,989 and 56,123,228 issued and outstanding at June 30, 2018 and December 31, 2017, respectively

 

 

564

   

 

561

Additional paid-in-capital

 

1,156,477

   

1,144,570

Retained earnings

 

332,800

   

258,164

Accumulated other comprehensive income

 

-

   

3,992

Total Stockholders' Equity

 

1,489,841

   

1,407,287

Total Liabilities and Stockholders' Equity

$

2,847,629

 

$

2,780,292

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

 
 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2018

 

2017

 

2018

 

2017

 

(Dollars in thousands)

 

(Unaudited)

Operating Activities:

                     

Net income

$

63,899

 

$

33,871

 

$

102,663

 

$

56,120

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

                     

Stock-based compensation expense

 

4,824

   

1,443

   

6,075

   

2,038

Depreciation and amortization

 

5,316

   

1,376

   

9,952

   

2,704

Inventory impairments

 

200

   

-

   

750

   

4,850

Other-than-temporary impairment of marketable securities

 

-

   

81

   

-

   

182

Net gain on sale of available-for-sale marketable securities

 

-

   

(1,197)

   

-

   

(1,758)

Net gain on marketable equity securities

 

(1,278)

   

-

   

(125)

   

-

Amortization of discount / premiums on marketable debt securities, net

 

(184)

   

-

   

(366)

   

-

Deferred income tax expense

 

3,134

   

6,813

   

3,557

   

10,033

Net changes in assets and liabilities:

                     

      Trade and other receivables

 

944

   

(1,907)

   

(2,317)

   

5,419

      Mortgage loans held-for-sale

 

5,973

   

2,090

   

30,929

   

43,491

      Housing completed or under construction

 

(68,198)

   

(18,841)

   

(133,576)

   

(39,707)

      Land and land under development

 

(12,905)

   

8,491

   

(84,457)

   

37,521

      Prepaid expenses and other assets

 

(5,497)

   

(5,195)

   

(5,108)

   

(7,602)

      Accounts payable and accrued liabilities

 

9,070

   

774

   

15,835

   

8,845

Net cash provided by (used in) operating activities

 

5,298

   

27,799

   

(56,188)

   

122,136

                       

Investing Activities:

                     

Purchases of marketable securities

 

(5,898)

   

(6,682)

   

(14,659)

   

(12,043)

Maturities of marketable securities

 

50,000

   

-

   

50,000

   

-

Sales of marketable securities

 

3,760

   

6,467

   

12,460

   

11,450

Purchases of property and equipment

 

(6,735)

   

(242)

   

(13,051)

   

(1,364)

Net cash provided by (used in) investing activities

 

41,127

   

(457)

   

34,750

   

(1,957)

                       

Financing Activities:

                     

Payments on mortgage repurchase facility, net

 

(9,307)

   

(1,415)

   

(31,521)

   

(45,358)

Dividend payments

 

(16,928)

   

(12,912)

   

(33,793)

   

(25,809)

Proceeds from exercise of stock options

 

5,553

   

5,697.00

   

5,835

   

7,304.00

Net cash used in financing activities

 

(20,682)

   

(8,630)

   

(59,479)

   

(63,863)

                       

Net increase (decrease) in cash, cash equivalents and restricted cash

 

25,743

   

18,712

   

(80,917)

   

56,316

Cash, cash equivalents and restricted cash:

                     

      Beginning of period

 

407,580

   

324,291

   

514,240

   

286,687

      End of period

$

433,323

 

$

343,003

 

$

433,323

 

$

343,003

                       

Reconciliation of cash, cash equivalents and restricted cash:

                     

Homebuilding:

                     

Cash and cash equivalents

$

378,219

 

$

314,814

 

$

378,219

 

$

314,814

Restricted cash

 

7,443

   

5,027

   

7,443

   

5,027

Financial Services:

                     

Cash and cash equivalents

 

47,661

   

23,162

   

47,661

   

23,162

Total cash, cash equivalents and restricted cash

$

433,323

 

$

343,003

 

$

433,323

 

$

343,003


 

New Home Deliveries

 
   

 Three Months Ended June 30, 

   

2018

 

2017

 

 % Change

   

 Homes

 

 Home Sale 
Revenues

 

 Average
Price

 

 Homes

 

 Home Sale
Revenues

 

 Average
Price

 

 Homes

 

 Home Sale 
Revenues

 Average
Price

   

(Dollars in thousands)

 

West

769

 

$

391,806

 

$

509.5

 

728

 

$

323,758

 

$

444.7

 

6%

 

21%

 

15%

 

Mountain

522

   

268,541

   

514.4

 

462

 

223,005

 

482.7

 

13%

 

20%

 

7%

 

East

221

   

89,261

   

403.9

 

222

   

100,857

   

454.3

 

(0)%

 

(11)%

 

(11)%

 

Total

1,512

 

$

749,608

 

$

495.8

 

1,412

 

$

647,620

 

$

458.7

 

7%

 

16%

 

8%

 
   

 Six Months Ended June 30, 

   

2018

 

2017

 

 % Change

   

 Homes

 

 Home Sale
Revenues

 

 Average 
Price

 

 Homes

 

 Home Sale 
Revenues

 

 Average 
Price

 

 Homes

 

 Home Sale
Revenues

 Average
Price

   

(Dollars in thousands)

 

West

1,450

 

$

711,315

 

$

490.6

 

1,433

 

$

632,838

 

$

441.6

 

1%

 

12%

 

11%

 

Mountain

938

   

477,173

   

508.7

 

831

 

395,896

 

476.4

 

13%

 

21%

 

7%

 

East

398

   

168,808

   

424.1

 

404

   

182,365

   

451.4

 

(1)%

 

(7)%

 

(6)%

 

Total

2,786

 

$

1,357,296

 

$

487.2

 

2,668

 

$

1,211,099

 

$

453.9

 

4%

 

12%

 

7%

 

 

Net New Orders

 
 

 Three Months Ended June 30, 

 

2018

 

2017

 

% 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)

West

1,020

 

$

458,082

 

$

449.1

 

4.55

 

858

 

$

379,540

 

$

442.4

 

3.90

 

19%

 

21%

 

2%

 

17%

Mountain

508

 

250,454

 

493.0

 

2.97

 

525

 

244,518

 

465.7

 

3.54

 

(3)%

 

2%

 

6%

 

(16)%

East

193

   

67,627

   

350.4

 

2.65

 

215

   

86,549

   

402.6

 

2.14

 

(10)%

 

(22)%

 

(13)%

 

24%

Total

1,721

 

$

776,163

 

$

451.0

 

3.68

 

1,598

 

$

710,607

 

$

444.7

 

3.41

 

8%

 

9%

 

1%

 

8%

 
 

 Six Months Ended June 30, 

 

2018

 

2017

 

% 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)

West

2,053

 

$

937,759

 

$

456.8

 

4.66

 

1,751

 

$

779,006

 

$

444.9

 

3.88

 

17%

 

20%

 

3%

 

20%

Mountain

1,175

 

590,045

 

502.2

 

3.45

 

1,082

 

508,778

 

470.2

 

3.69

 

9%

 

16%

 

7%

 

(7)%

East

397

   

147,943

   

372.7

 

2.82

 

461

   

195,535

   

424.2

 

2.25

 

(14)%

 

(24)%

 

(12)%

 

25%

Total

3,625

 

$

1,675,747

 

$

462.3

 

3.93

 

3,294

 

$

1,483,319

 

$

450.3

 

3.47

 

10%

 

13%

 

3%

 

13%

 

 

Active Subdivisions

 
               

Average Active Subdivisions

 

Average Active Subdivisions

   

Active Subdivisions

 

Three Months Ended

 

Six Months Ended

   

June 30,

 

%

 

June 30,

 

%

 

June 30,

 

%

   

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

2018

 

2017

 

Change

 

West

78

 

70

 

11%

 

75

 

74

 

1%

 

73

 

75

 

(3)%

 

Mountain

61

 

50

 

22%

 

57

 

50

 

14%

 

57

 

49

 

16%

 

East

25

 

33

 

(24)%

 

24

 

34

 

(29)%

 

24

 

34

 

(29)%

 

Total

164

 

153

 

7%

 

156

 

158

 

(1)%

 

154

 

158

 

(3)%

 

Backlog

 
   

June 30,

   

2018

 

2017

 

% Change

   

Homes

 

Dollar
Value

 

Average
Price

 

Homes

 

Dollar
Value

 

Average
Price

 

Homes

 

Dollar
Value

 

Average
Price

   

(Dollars in thousands)

 

West

2,054

 

$

1,011,780

 

$

492.6

 

1,665

 

$

802,313

 

$

481.9

 

23%

 

26%

 

2%

 

Mountain

1,490

   

766,539

   

514.5

 

1,319

   

634,181

   

480.8

 

13%

 

21%

 

7%

 

East

454

   

170,364

   

375.3

 

526

   

241,341

   

458.8

 

(14)%

 

(29)%

 

(18)%

 

Total

3,998

 

$

1,948,683

 

$

487.4

 

3,510

 

$

1,677,835

 

$

478.0

 

14%

 

16%

 

2%

 

Homes Completed or Under Construction (WIP lots)

 
   

June 30,

 

%

   

2018

 

2017

 

Change

 

Unsold:

         
 

Completed

86

 

77

 

12%

 

Under construction

268

 

153

 

75%

 

Total unsold started homes

354

 

230

 

54%

 

Sold homes under construction or completed

2,980

 

2,547

 

17%

 

Model homes under construction or completed

373

 

316

 

18%

 

Total homes completed or under construction

3,707

 

3,093

 

20%

 

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

 
   

June 30, 2018

 

June 30, 2017

   
   

Lots 
Owned

 

Lots 
Optioned

 

Total

 

Lots 
Owned

 

Lots 
Optioned

 

Total

 

Total %
Change

 

West

7,906

 

2,916

 

10,822

 

5,665

 

2,011

 

7,676

 

41%

 

Mountain

5,329

 

4,041

 

9,370

 

4,986

 

2,057

 

7,043

 

33%

 

East

1,509

 

1,925

 

3,434

 

1,353

 

1,022

 

2,375

 

45%

 

Total

14,744

 

8,882

 

23,626

 

12,004

 

5,090

 

17,094

 

38%

 

Selling, General and Administrative Expenses

 
   

Three Months Ended June 30,

 

Six Months Ended June 30,

   

2018

 

2017

 

Change

 

2018

 

2017

 

Change

   

(Dollars in thousands)

 

General and administrative expenses

$

40,372

 

$

32,292

 

$

8,080

 

$

76,125

 

$

64,661

 

$

11,464

 

General and administrative expenses as a percentage of home sale revenues

 

 

5.4%

   

 

5.0%

   

 

40 bps

   

 

5.6%

   

 

5.3%

   

 

30 bps

                                     
 

Marketing expenses

$

17,215

 

$

16,976

 

$

239

 

$

32,786

 

$

32,100

 

$

686

 

Marketing expenses as a percentage of home sale revenues

 

 

2.3%

   

 

2.6%

   

 

(30) bps

   

 

2.4%

   

 

2.7%

   

 

(30) bps

                                     
 

Commissions expenses

$

23,984

 

$

21,441

 

$

2,543

 

$

44,001

 

$

40,246

 

$

3,755

 

Commissions expenses as a percentage of  home sale revenues

 

 

3.2%

   

 

3.3%

   

 

(10) bps

   

 

3.2%

   

 

3.3%

   

 

(10) bps

                                     
 

Total selling, general and administrative expenses

$

81,571

 

$

70,709

 

$

10,862

 

$

152,912

 

$

137,007

 

$

15,905

 

Total selling, general and administrative expenses as a percentage of  home sale revenues

 

 

10.9%

   

 

10.9%

   

 

0 bps

   

 

11.3%

   

 

11.3%

   

 

0 bps

 

Capitalized Interest

 
   

Three Months Ended

 

Six Months Ended

   

June 30,

 

June 30,

   

2018

 

2017

 

2018

 

2017

   

(Dollars in thousands)

 

Homebuilding interest incurred

$

15,639

 

$

13,194

 

$

31,264

 

$

26,382

 

Less:  Interest capitalized

 

(15,639)

   

(13,194)

   

(31,264)

   

(26,382)

 

Homebuilding interest expensed

$

-

 

$

-

 

$

-

 

$

-

                         
 

Interest capitalized, beginning of period

$

58,738

 

$

66,076

 

$

57,541

 

$

68,085

 

Plus: Interest capitalized during period

 

15,639

   

13,194

   

31,264

   

26,382

 

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

 

(16,150)

   

(17,179)

   

(30,578)

   

(32,376)

 

Interest capitalized, end of period

$

58,227

 

$

62,091

 

$

58,227

 

$

62,091

 


CONTACT:  Kevin McCarty, Vice President of Finance and Corporate Controller, 1-866-424-3395 / 720-977-3395, IR@mdch.com