News

M.D.C. Holdings Announces 2018 Fourth Quarter And Full Year Results
Full year home sales revenues increased 19%, home sales gross margins expanded 170 basis points and pretax income rose to its highest level in over a decade.

DENVER, Jan. 31, 2019 /PRNewswire/ -- M.D.C Holdings, Inc. (NYSE: MDC) announced results for the quarter and full year ended December 31, 2018.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "2018 was a banner year for MDC as home sales revenues increased 19%, home sales gross margins expanded 170 basis points, and pretax income rose to its highest level in over a decade.  In addition, we ended the year in excellent financial condition, with a homebuilding debt to capital ratio of 39% and enhanced liquidity following the increase of our homebuilding line of credit from $700 million to $1.0 billion in the fourth quarter. Furthermore, we delivered on our goal of 10% active community count growth to start 2019."

Mr. Mizel continued, "The fourth quarter marked a strong end to the year as we made significant year-over-year improvements to our top and bottom line.  However, order activity during the quarter was not as robust as it was last year, a sign that buyers are being patient with their purchase decisions.  Years of price appreciation coupled with recent uncertainty about mortgage rates have understandably made some buyers cautious and have resulted in a slower sales pace for our industry.  Fortunately, we have adjusted our strategy over the past few years to address the rising cost of home ownership by bringing down the price points of our homes.  Our more affordable home offerings were well received in 2018, and we anticipate the same will be true in 2019."

Mr Mizel concluded, "We continue to believe that the outlook for our industry remains favorable, with rising wages, continuing job growth and positive consumer sentiment providing a healthy economic backdrop.  MDC is in a great position to capitalize on these fundamentals thanks to our more affordable product focus, our strong balance sheet and our seasoned management team.  As a result, we are optimistic about our company's future as we enter the spring selling season."

2018 Fourth Quarter Highlights and Comparisons to 2017 Fourth Quarter

  • Home sale revenues up 22% to $858.5 million from $702.6 million
    • Average selling price of homes delivered up 4% to $469,900
  • Pretax income up 34% to $69.3 million from $51.8 million
    • $6.9 million loss on investments in 2018 fourth quarter vs. $0.1 million loss in 2017 fourth quarter
  • Net income of $54.7 million, or $0.95 per diluted share, up 123% from $24.6 million, or $0.43 per diluted share
    • Effective tax rate of 21.0% in 2018 fourth quarter vs 52.6% in 2017 fourth quarter
  • Gross margin from home sales up 80 basis points to 18.1% from 17.3%
    • $10.0 million impairment charge in 2018 fourth quarter vs. $0.6 million in 2017 fourth quarter
    • Excluding impairments, gross margins increased 190 basis points to 19.3% from 17.4%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 70 basis points to 10.9% from 11.6%
  • Dollar value of net new orders of $453.3 million vs. $574.3 million in 2017 fourth quarter

2018 Full Year Highlights and Comparisons to 2017 Full Year

  • Home sale revenues up 19% to $2.98 billion from $2.50 billion
    • Average selling price of homes delivered up 7% to $481,200
  • Pretax income up 15% to $263.9 million from $229.7 million
    • $3.7 million loss on investments in 2018 vs $53.7 million gain in 2017
  • Net income of $210.8 million, or $3.66 per diluted share, up 49% from $141.8 million, or $2.48 per diluted share
    • Effective tax rate of 20.1% in 2018 vs 38.3% in 2017
  • Gross margin from home sales up 170 basis points to 18.3% from 16.6%
    • $21.9 million impairment charge in 2018 vs. $10.0 million in 2017
    • Excluding impairments, gross margins increased 200 basis points to 19.0% from 17.0%
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 40 basis points to 11.1% from 11.5%
  • Dollar value of net new orders of $2.77 billion, up 3% from $2.70 billion
    • Average selling price of net new orders consistent with 2017

Other Selected Information

  • Backlog dollar value at December 31, 2018 down 11% year-over-year to $1.43 billion
    • Gross margin from home sales in backlog at 12/31/2018 comparable to 2018 full year closing gross margin (excluding impairments) of 19.0%
    • Backlog conversion ratio (home deliveries divided by beginning backlog) for the 2019 first quarter estimated to be in the 42% to 44% range
  • Active subdivision count at 12/31/2018 of 166, up 10% year-over-year and 5% from 9/30/2018
  • Lots controlled of 23,187 at 12/31/2018, up 20% year-over-year
  • Quarterly cash dividend of $0.30 ($1.20 annualized) and 8% stock dividend declared in January 2019

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 200,000 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, 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

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2018


2017


2018


2017


(Dollars in thousands, except per share amounts)

Homebuilding:







Home sale revenues

$

858,488


$

702,649


$

2,981,811


$

2,498,695

Land sale revenues


-



1,609



-



4,547

Total home and land sale revenues


858,488



704,258



2,981,811



2,503,242

Home cost of sales


(692,856)



(580,667)



(2,415,139)



(2,073,833)

Land cost of sales


-



(1,768)



-



(4,440)

Inventory impairments


(10,002)



(620)



(21,850)



(10,010)

Total cost of sales


(702,858)



(583,055)



(2,436,989)



(2,088,283)

Gross margin


155,630



121,203



544,822



414,959

Selling, general and administrative expenses


(93,366)



(81,379)



(329,801)



(287,488)

Interest and other income


2,132



1,614



7,718



7,714

Net realized gains from the sales of marketable securities


-



-



-



17,775

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













-



-



-



35,847

Other expense


(2,683)



(1,182)



(5,245)



(2,817)

Other-than-temporary impairment of  marketable securities


-



-



-



(51)

Homebuilding pretax income


61,713



40,256



217,494



185,939













Financial Services:












Revenues


23,387



19,856



83,405



74,372

Expenses


(10,350)



(9,287)



(38,200)



(34,534)

Interest and other income


1,409



1,048



4,900



4,190

Net loss on marketable equity securities


(6,873)



-



(3,745)



-

Other-than-temporary impairment of marketable securities


-



(75)



-



(235)

Financial services pretax income


7,573



11,542



46,360



43,793













Income before income taxes


69,286



51,798



263,854



229,732

Provision for income taxes


(14,561)



(27,246)



(53,074)



(87,897)

Net income

$

54,725


$

24,552


$

210,780


$

141,835













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













-



1,166



-



(18,079)

Comprehensive income

$

54,725


$

25,718


$

210,780


$

123,756













Earnings per share












Basic

$

0.97


$

0.44


$

3.74


$

2.54

Diluted

$

0.95


$

0.43


$

3.66


$

2.48













Weighted average common shares outstanding












Basic


56,263,535



55,802,550



56,084,373



55,663,908

Diluted


57,141,245



57,235,959



57,250,704



56,901,461













Dividends declared per share

$

0.30


$

0.23


$

1.20


$

0.93

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Unaudited)



December 31,


December 31,


2018


2017

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:





Cash and cash equivalents

$

414,724


$

472,957

Marketable securities


-



49,634

Restricted cash


6,363



8,812

Trade and other receivables


52,982



53,362

Inventories:






Housing completed or under construction


952,436



936,685

Land and land under development


1,180,558



893,051

Total inventories


2,132,994



1,829,736

Property and equipment, net


58,167



26,439

Deferred tax assets, net


37,178



41,480

Prepaid and other assets


45,794



75,666

Total homebuilding assets


2,748,202



2,558,086

Financial Services:






Cash and cash equivalents


49,052



32,471

Marketable securities


40,879



42,004

Mortgage loans held-for-sale, net


149,211



138,114

Other assets


13,733



9,617

Total financial services assets


252,875



222,206

      Total Assets

$

3,001,077


$

2,780,292

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

50,505


$

39,655

Accrued liabilities


196,247



166,312

Revolving credit facility


15,000



15,000

Senior notes, net


987,967



986,597

Total homebuilding liabilities


1,249,719



1,207,564

Financial Services:






Accounts payable and accrued liabilities


58,543



53,101

Mortgage repurchase facility


116,815



112,340

Total financial services liabilities


175,358



165,441

      Total Liabilities


1,425,077



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; 56,615,352 and 56,123,228 issued and outstanding at December 31, 2018 and December 31, 2017, respectively







566



561

Additional paid-in-capital


1,168,442



1,144,570

Retained earnings


406,992



258,164

Accumulated other comprehensive income


-



3,992

Total Stockholders' Equity


1,576,000



1,407,287

Total Liabilities and Stockholders' Equity

$

3,001,077


$

2,780,292

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2018


2017


2018


2017


(Dollars in thousands)

Operating Activities:








Net income

$

54,725


$

24,552


$

210,780


$

141,835

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























Stock-based compensation expense


5,517



2,757



14,017



5,857

Depreciation and amortization


5,920



1,116



21,326



5,321

Inventory impairments


10,002



620



21,850



10,010

Other-than-temporary impairment of marketable securities


-



75



-



286

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


-



-



-



(18,122)

Net loss on marketable equity securities


6,873



-



3,745



-

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


-



-



-



(35,847)

Amortization of discount / premiums on marketable debt securities


-



-



(366)



-

Deferred income tax expense


(363)



21,992



3,729



44,787

Net changes in assets and liabilities:












      Trade and other receivables


2,411



(13,882)



(4,638)



(13,763)

      Mortgage loans held-for-sale


(34,375)



(48,310)



(11,097)



660

      Housing completed or under construction


119,575



32,449



(12,082)



(69,548)

      Land and land under development


(154,287)



(30,055)



(304,250)



(10,169)

      Prepaid expenses and other assets


12,083



(1,892)



(245)



(13,121)

      Accounts payable and accrued liabilities


23,259



6,975



49,325



22,320

Net cash provided by (used in) operating activities


51,340



(3,603)



(7,906)



70,506













Investing Activities:












Purchases of marketable securities


(1,667)



(49,635)



(18,850)



(67,239)

Maturities of marketable securities


-



-



50,000



-

Sales of marketable securities


2,920



-



16,230



83,315

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


-



-



-



44,253

Purchases of property and equipment


(7,267)



(622)



(27,166)



(2,539)

Net cash provided by (used in) investing activities


(6,014)



(50,257)



20,214



57,790













Financing Activities:












Advances (payments) on mortgage repurchase facility, net


26,031



47,237



4,475



(2,145)

Proceeds from issuance of senior notes


-



146,463



-



146,463

Dividend payments


(16,985)



(13,104)



(67,718)



(51,897)

Payments of deferred financing costs


(3,026)



(35)



(3,026)



(2,665)

Proceeds from exercise of stock options


1



998



9,860



9,501

Net cash provided by (used in) financing activities


6,021



181,559



(56,409)



99,257













Net increase (decrease) in cash and cash equivalents


51,347



127,699



(44,101)



227,553

Cash and cash equivalents:












Beginning of period


418,792



386,541



514,240



286,687

End of period

$

470,139


$

514,240


$

470,139


$

514,240













Reconciliation of cash, cash equivalents and restricted cash:












Homebuilding:












Cash and cash equivalents

$

414,724


$

472,957


$

414,724


$

472,957

Restricted cash


6,363



8,812



6,363



8,812

Financial Services:












Cash and cash equivalents


49,052



32,471



49,052



32,471

Total cash, cash equivalents and restricted cash

$

470,139


$

514,240


$

470,139


$

514,240

 

New Home Deliveries




 Three Months Ended December 31, 



2018


2017


 % Change



 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar Value


 Average Price



(Dollars in thousands)


West

958


$

446,825


$

466.4


810


$

356,428


$

440.0


18%


25%


6%


Mountain

645



330,313



512.1


501



240,024



479.1


29%


38%


7%


East

224



81,350



363.2


245



106,197



433.5


(9)%


(23)%


(16)%


Total

1,827


$

858,488


$

469.9


1,556


$

702,649


$

451.6


17%


22%


4%

 



 Year Ended December 31, 



2018


2017


 % Change



 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price


 Homes


 Dollar
Value


 Average Price



(Dollars in thousands)


West

3,244


$

1,567,141


$

483.1


2,990


$

1,316,069


$

440.2


8%


19%


10%


Mountain

2,118



1,080,475



510.1


1,691



801,644



474.1


25%


35%


8%


East

835



334,195



400.2


860



380,982



443.0


(3)%


(12)%


(10)%


Total

6,197


$

2,981,811


$

481.2


5,541


$

2,498,695


$

450.9


12%


19%


7%

 

Net New Orders



 Three Months Ended December 31, 


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

573


$

250,647


$

437.4


2.51


651


$

299,738


$

460.4


2.91


(12)%


(16)%


(5)%


(14)%

Mountain

315



149,583



474.9


1.60


413



204,706



495.7


2.49


(24)%


(27)%


(4)%


(36)%

East

171



53,028



310.1


2.78


188



69,817



371.4


2.72


(9)%


(24)%


(17)%


2%

Total

1,059


$

453,258


$

428.0


2.18


1,252


$

574,261


$

458.7


2.73


(15)%


(21)%


(7)%


(20)%

 


 Year Ended December 31, 


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

3,316


$

1,535,438


$

463.0


3.71


3,094


$

1,435,474


$

464.0


3.47


7%


7%


(0)%


7%

Mountain

1,908



972,826



509.9


2.63


1,876



919,875



490.3


3.05


2%


6%


4%


(14)%

East

750



262,518



350.0


2.78


846



343,148



405.6


2.37


(11)%


(23)%


(14)%


17%

Total

5,974


$

2,770,782


$

463.8


3.16


5,816


$

2,698,497


$

464.0


3.12


3%


3%


(0)%


1%


*Calculated as total net new orders in period ÷ average active communicates during period ÷ number of months in period

 

Active Subdivisions










Average Active Subdivisions



Active Subdivisions


Three Months Ended


Year Ended



December 31,


%


December 31,


%


December 31,


%



2018


2017


Change


2018


2017


Change


2018


2017


Change


West

79


73


8%


76


75


1%


75


75


0%


Mountain

67


56


20%


65


55


18%


60


52


15%


East

20


22


(9)%


21


22


(5)%


22


29


(24)%


Total

166


151


10%


162


152


7%


157


156


1%

 

Backlog




At December 31,



2018


2017


% Change



Homes


Dollar
Value


Average Price


Homes


Dollar
Value


Average Price


Homes


Dollar
Value


Average Price



(Dollars in thousands)


West

1,523


$

756,335


$

496.6


1,451


$

774,182


$

533.6


5%


(2)%


(7)%


Mountain

1,043



550,329



527.6


1,253



637,995



509.2


(17)%


(14)%


4%


East

370



119,303



322.4


455



190,315



418.3


(19)%


(37)%


(23)%


Total

2,936


$

1,425,967


$

485.7


3,159


$

1,602,492


$

507.3


(7)%


(11)%


(4)%

 

Homes Completed or Under Construction (WIP lots)




December 31,





2018


2017


% Change


Unsold:







Completed

179


95


88%


Under construction

263


215


22%


Total unsold started homes

442


310


43%


Sold homes under construction or completed

2,219


2,345


(5)%


Model homes under construction or completed

407


338


20%


Total homes completed or under construction

3,068


2,993


3%

 

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




December 31, 2018


December 31, 2017





Lots
Owned


Lots
Optioned


Total


Lots
Owned


Lots
Optioned


Total


Total %
Change


West

8,093


3,004


11,097


6,607


2,101


8,708


27%


Mountain

6,305


2,477


8,782


4,905


2,930


7,835


12%


East

1,899


1,409


3,308


1,486


1,283


2,769


19%


Total

16,297


6,890


23,187


12,998


6,314


19,312


20%

 

Selling, General and Administrative Expenses




Three Months Ended December 31,


Year Ended December 31,



2018


2017


Change


2018


2017


Change



(Dollars in thousands)


General and administrative expenses

$

45,317


$

39,843


$

5,474


$

161,679


$

137,674


$

24,005


General and administrative expenses as a percentage of home sale revenues




















5.3%



5.7%



(40) bps



5.4%



5.5%



(10) bps





















Marketing expenses

$

19,234


$

17,843


$

1,391


$

70,122


$

66,388


$

3,734


Marketing expenses as a percentage of home sale revenues




















2.2%



2.5%



(30) bps



2.4%



2.7%



(30) bps





















Commissions expenses

$

28,815


$

23,693


$

5,122


$

98,000


$

83,426


$

14,574


Commissions expenses as a percentage of home sale revenues




















3.4%



3.4%



0 bps



3.3%



3.3%



0 bps





















Total selling, general and administrative expenses



















$

93,366


$

81,379


$

11,987


$

329,801


$

287,488


$

42,313


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






































10.9%



11.6%



(70) bps



11.1%



11.5%



(40) bps

 

Capitalized Interest




Three Months Ended


Year Ended



December 31,


December 31,



2018


2017


2018


2017



(Dollars in thousands)


Homebuilding interest incurred

$

15,726


$

15,576


$

62,631


$

55,170


Less:  Interest capitalized


(15,726)



(15,576)



(62,631)



(55,170)


Homebuilding interest expensed

$

-


$

-


$

-


$

-















Interest capitalized, beginning of period

$

57,232


$

60,216


$

57,541


$

68,085


Plus: Interest capitalized during period


15,726



15,576



62,631



55,170


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


(18,113)



(18,251)



(65,327)



(65,714)


Interest capitalized, end of period

$

54,845


$

57,541


$

54,845


$

57,541


 

Reconciliation of Non-GAAP Financial Measures


            Below is a reconciliation of gross margin from home sales to gross margin from home sales excluding inventory impairments, warranty adjustments and interest in cost of sales. The table below reconciles each of these non-GAAP financial measures to gross margin as calculated based on GAAP. We believe this information is relevant and meaningful as it provides our investors and analysts with the impact that interest, warranty and impairments have on our Gross Margin from Home Sales and permits investors to make better comparisons with our competitors, who also break out and adjust gross margins in a similar fashion.



 Three Months Ended


December 31, 2018


Gross Margin %


 December 31, 2017


Gross Margin %


(Dollars in thousands)

Gross Margin

$

155,630


18.1%


$

121,203


17.2%

Less: Land Sale Revenues


-





(1,609)



Add: Land Cost of Sales


-





1,768



Gross Margin from Home Sales


155,630


18.1%



121,362


17.3%

Add: Inventory Impairments


10,002





620



Gross Margin from Home Sales Excluding Inventory Impairments


165,632


19.3%



121,982


17.4%

Add: Warranty Adjustments


307





1,716



Gross Margin from Home Sales Excluding Inventory  Impairments and Warranty Adjustments











165,939


19.3%



123,698


17.6%

Add: Interest in Cost of Sales


18,113





18,251



Gross Margin from Home Sales Excluding Inventory  Impairments,










Warranty Adjustments and Interest in Cost of Sales

$

184,052


21.4%


$

141,949


20.2%






















Year Ended


 December 31, 2018


Gross Margin %


 December 31, 2017


Gross Margin %


(Dollars in thousands)

Gross Margin

$

544,822


18.3%


$

414,959


16.6%

Less: Land Sale Revenues


-





(4,547)



Add: Land Cost of Sales


-





4,440



Gross Margin from Home Sales


544,822


18.3%



414,852


16.6%

Add: Inventory Impairments


21,850





10,010



Gross Margin from Home Sales Excluding Inventory Impairments


566,672


19.0%



424,862


17.0%

Add: Warranty Adjustments


3,413





1,341



Gross Margin from Home Sales Excluding Inventory  Impairments and Warranty Adjustments











570,085


19.1%



426,203


17.1%

Add: Interest in Cost of Sales


65,327





65,714



Gross Margin from Home Sales Excluding Inventory  Impairments,










Warranty Adjustments and Interest in Cost of Sales

$

635,412


21.3%


$

491,917


19.7%

 

 

SOURCE M.D.C. Holdings, Inc.

For further information: Robert N. Martin, Senior Vice President and Chief Financial Officer, 1-866-424-3395, IR@mdch.com