News

M.D.C. Holdings Announces Third Quarter 2021 Results And Quarterly Dividend Increase
Net income increased to $146 million driven by home sale revenues growth of 26% and continued gross margin expansion; Quarterly cash dividend increased 25% from the prior quarter to $0.50 per share

DENVER, Oct. 28, 2021 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC), one of the nation's leading homebuilders, announced results for the quarter ended September 30, 2021.

"MDC posted strong results in the third quarter of 2021, as the homebuilding industry continued to thrive," said Larry Mizel, MDC's Executive Chairman. "Home sale revenues grew 26% year-over-year thanks to double digit percentage increases to both deliveries and average selling price. Home sales gross margin rose 300 basis points year-over-year to 23.5%, as price increases more than offset cost inflation in the quarter. Net income came in at $146 million, or $1.99 per diluted share, representing growth of 48% and 44%, respectively, over the third quarter of 2020."

Mr. Mizel continued, "We continued to see healthy demand for our homes in the third quarter, as evidenced by our order pace of 4.1 homes per community per month. This was the second highest third quarter order pace for our company in the last 15 years and resulted in an 18% increase in the number of homes in backlog year-over-year. Average selling prices in backlog also trended higher as compared to last year, which should bode well for future margins."

Mr. Mizel concluded, "MDC is in a great position to close out 2021 with momentum thanks to our sizable backlog, great product profile and excellent capital position. We have laid the foundation for a significant increase in community count next year, with 37% more lots under control at the end of the third quarter than we had at the end of the third quarter of 2020. As a result, we believe the future is bright for MDC."

"On the heels of our expansion into Boise and Nashville, I am pleased to announce that MDC will soon be selling homes in Austin, Texas and Albuquerque, New Mexico," said David Mandarich, MDC's President and Chief Executive Officer. "We feel that these two markets have a great runway for new home construction growth, thanks to a consistent increase in good paying jobs, favorable affordability and an excellent overall quality of life. We believe Austin and Albuquerque will fit nicely into our current geographic footprint and expect these markets to respond well to our more affordably priced, well designed new home offerings."

Dividend Increase

The Company also announced that its board of directors has declared a quarterly cash dividend of fifty cents ($0.50) per share on the Company's common stock. This represents a 25% increase over the Company's previous quarterly dividend. The dividend will be paid on Wednesday, November 24, 2021 to shareholders of record on Wednesday, November 10, 2021.

Mr. Mizel said, "Given MDC's strong financial position and increased levels of profitability during the fiscal year, our board has decided to increase our quarterly dividend. Our industry leading dividend remains a priority as we look to return capital to our shareholders and deliver consistent shareholder returns over time."

2021 Third Quarter Highlights and Comparisons to 2020 Third Quarter

Home sale revenues increased 26% to $1.26 billion from $1.00 billion

 

°

Unit deliveries up 13% to 2,419

 

°

Average selling price of deliveries up 12% to $519,900

Homebuilding pretax income increased 62% to $165.2 million from $101.7 million

 

°

Gross margin from home sales increased 300 basis points to 23.5% from 20.5%

 

°

Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 80 basis points to 9.6%

 

°

Loss on debt retirement of $12.2 million in current quarter

Net income of $146.0 million, or $1.99 per diluted share, up 48% from $98.9 million or $1.38 per diluted share*

 

°

Effective tax rate of 24.3% vs. 21.5%

Dollar value of net new orders decreased 21% to $1.30 billion from $1.65 billion

 

°

Monthly sales absorption rate of 4.1 vs. 6.1 in prior period quarter

 

°

Second highest third quarter monthly sales absorption rate in the last 15 years

 

°

Average selling price of net orders up 16%

Dollar value of ending backlog up 38% to $4.24 billion from $3.08 billion

 

°

Unit backlog increased 18% to 7,658

 

°

Average selling price of homes in backlog up 17%

* Per share amount for the 2020 third quarter has been adjusted for the 8% stock dividend declared and paid in the 2021 first quarter.

2021 Outlook and Other Selected Information1

Projected home deliveries for the 2021 fourth quarter between 2,700 and 3,000

 

°

Average selling price for 2021 fourth quarter unit deliveries between $530,000 and $540,000

 

°

Gross margin from home sales for the 2021 fourth quarter between 23.5% and 24.0% (excluding impairments and warranty adjustments)

Lots controlled of 36,666 at September 30, 2021, up 37% year-over-year

Quarterly cash dividend of fifty cents ($0.50) per share declared on October 25, 2021, up 25% from the prior quarter and 35% from the prior year (after adjusting for 8% stock dividend in March 2021)

 

°

Consistent record of stable or increasing dividends for more than 25 years

1 See "Forward-Looking Statements" below.

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 220,000 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, Seattle, Portland, Boise, Nashville, Austin and Albuquerque. 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 the impact of the COVID-19 pandemic, changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including restrictions on business activities resulting from the COVID-19 pandemic, 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 orders addressing the COVID-19 pandemic, 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, 2021, 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
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

               
 

(Dollars in thousands, except per share amounts)

Homebuilding:

             

Home sale revenues

$

1,257,701

   

$

1,000,549

   

$

3,667,332

   

$

2,584,392

 

Home cost of sales

(962,078)

   

(795,172)

   

(2,827,147)

   

(2,061,608)

 

Gross profit

295,623

   

205,377

   

840,185

   

522,784

 

Selling, general and administrative expenses

(120,116)

   

(103,632)

   

(363,970)

   

(285,269)

 

Loss on debt retirement

(12,150)

   

   

(12,150)

   

 

Interest and other income

3,149

   

756

   

4,984

   

3,365

 

Other expense

(1,354)

   

(851)

   

(2,881)

   

(4,640)

 

Homebuilding pretax income

165,152

   

101,650

   

466,168

   

236,240

 
               

Financial Services:

             

Revenues

43,104

   

36,803

   

121,445

   

91,653

 

Expenses

(16,377)

   

(13,294)

   

(47,922)

   

(36,401)

 

Other income (expense), net

813

   

859

   

2,855

   

(5,274)

 

Financial services pretax income

27,540

   

24,368

   

76,378

   

49,978

 
               

Income before income taxes

192,692

   

126,018

   

542,546

   

286,218

 

Provision for income taxes

(46,738)

   

(27,080)

   

(131,550)

   

(66,124)

 

Net income

$

145,954

   

$

98,938

   

$

410,996

   

$

220,094

 
               

Comprehensive income

$

145,954

   

$

98,938

   

$

410,996

   

$

220,094

 
               

Earnings per share:

             

Basic

$

2.07

   

$

1.42

   

$

5.83

   

$

3.21

 

Diluted

$

1.99

   

$

1.38

   

$

5.62

   

$

3.12

 
               

Weighted average common shares outstanding:

             

Basic

70,301,085

   

68,977,965

   

70,130,853

   

68,179,403

 

Diluted

72,800,011

   

71,090,903

   

72,770,432

   

70,167,443

 
               

Dividends declared per share

$

0.40

   

$

0.31

   

$

1.17

   

$

0.92

 

 

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Unaudited) 

 
 

September 30,
2021

 

December 31,
2020

       
 

(Dollars in thousands, except

per share amounts)

ASSETS

     

Homebuilding:

     

Cash and cash equivalents

$

761,715

   

$

411,362

 

Restricted cash

12,047

   

15,343

 

Trade and other receivables

125,556

   

72,466

 

Inventories:

     

Housing completed or under construction

1,948,211

   

1,486,587

 

Land and land under development

1,464,603

   

1,345,643

 

Total inventories

3,412,814

   

2,832,230

 

Property and equipment, net

61,590

   

61,880

 

Deferred tax asset, net

16,301

   

11,454

 

Prepaids and other assets

105,860

   

101,685

 

Total homebuilding assets

4,495,883

   

3,506,420

 

Financial Services:

     

Cash and cash equivalents

93,884

   

77,267

 

Mortgage loans held-for-sale, net

248,921

   

232,556

 

Other assets

35,716

   

48,677

 

Total financial services assets

378,521

   

358,500

 

Total Assets

$

4,874,404

   

$

3,864,920

 

LIABILITIES AND EQUITY

     

Homebuilding:

     

Accounts payable

$

154,376

   

$

98,862

 

Accrued and other liabilities

334,712

   

300,735

 

Revolving credit facility

10,000

   

10,000

 

Senior notes, net

1,607,658

   

1,037,391

 

Total homebuilding liabilities

2,106,746

   

1,446,988

 

Financial Services:

     

Accounts payable and accrued liabilities

93,880

   

95,630

 

Mortgage repurchase facility

215,794

   

202,390

 

Total financial services liabilities

309,674

   

298,020

 

Total Liabilities

2,416,420

   

1,745,008

 

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; 70,679,612 and 64,851,126 issued and
   outstanding at September 30, 2021 and December 31, 2020, respectively

707

   

649

 

Additional paid-in-capital

1,697,435

   

1,407,597

 

Retained earnings

759,842

   

711,666

 

Total Stockholders' Equity

2,457,984

   

2,119,912

 

Total Liabilities and Stockholders' Equity

$

4,874,404

   

$

3,864,920

 

 

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

(Unaudited)

 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

               
 

(Dollars in thousands)

Operating Activities:

             

Net income

$

145,954

   

$

98,938

   

$

410,996

   

$

220,094

 

Adjustments to reconcile net income to net cash provided by operating activities:

             

Stock-based compensation expense

7,965

   

8,608

   

26,832

   

18,536

 

Depreciation and amortization

7,752

   

7,354

   

23,930

   

18,881

 

Net loss on marketable equity securities

   

   

   

8,285

 

Gain on sale of other assets

(2,014)

   

   

(2,014)

   

 

Loss on debt retirement

12,150

   

   

12,150

   

 

Deferred income tax expense

(1,508)

   

6,531

   

(4,847)

   

8,493

 

Net changes in assets and liabilities:

             

Trade and other receivables

1,576

   

5,933

   

(55,529)

   

(17,512)

 

Mortgage loans held-for-sale, net

(62,835)

   

13,061

   

(16,365)

   

36,515

 

Housing completed or under construction

(75,407)

   

(153,440)

   

(461,105)

   

(387,269)

 

Land and land under development

(155,141)

   

13,792

   

(118,762)

   

108,710

 

Prepaids and other assets

5,224

   

(21,523)

   

9,919

   

(20,314)

 

Accounts payable and accrued liabilities

17,678

   

(5,516)

   

88,273

   

35,023

 

Net cash provided by (used in) operating activities

(98,606)

   

(26,262)

   

(86,522)

   

29,442

 
               

Investing Activities:

             

Purchases of marketable securities

   

   

   

(10,804)

 

Sales of marketable securities

   

   

   

59,266

 

Proceeds from sale of other assets

2,014

   

   

2,014

   

 

Purchases of property and equipment

(9,581)

   

(7,917)

   

(23,028)

   

(20,885)

 

Net cash provided by (used in) investing activities

(7,567)

   

(7,917)

   

(21,014)

   

27,577

 
               

Financing Activities:

             

Payments on mortgage repurchase facility, net

51,113

   

(11,233)

   

13,404

   

(18,755)

 

Payments on homebuilding line of credit, net

   

   

   

(5,000)

 

Repayment of senior notes

(136,394)

   

   

(136,394)

   

(250,000)

 

Proceeds from issuance of senior notes

346,937

   

   

694,662

   

298,050

 

Dividend payments

(28,276)

   

(21,374)

   

(83,189)

   

(63,056)

 

Payments of deferred financing costs

(901)

   

   

(1,720)

   

 

Issuance of shares under stock-based compensation programs, net

(19)

   

28,642

   

(15,553)

   

29,974

 

Net cash provided by (used in) financing activities

232,460

   

(3,965)

   

471,210

   

(8,787)

 
               

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

126,287

   

(38,144)

   

363,674

   

48,232

 

Cash, cash equivalents and restricted cash:

             

Beginning of period

741,359

   

560,588

   

503,972

   

474,212

 

End of period

$

867,646

   

$

522,444

   

$

867,646

   

$

522,444

 

 

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows (Continued)

(Unaudited)

 

Reconciliation of cash, cash equivalents and restricted cash:

             

Homebuilding:

             

Cash and cash equivalents

$

761,715

   

$

432,277

   

$

761,715

   

$

432,277

 

Restricted cash

12,047

   

19,732

   

12,047

   

19,732

 

Financial Services:

   

-

       

Cash and cash equivalents

93,884

   

70,435

   

93,884

   

70,435

 

Total cash, cash equivalents and restricted cash

$

867,646

   

$

522,444

   

$

867,646

   

$

522,444

 

 

New Home Deliveries

 
 

Three Months Ended September 30,

 

2021

 

2020

 

% Change

 

Homes

 

Home Sale

Revenues

 

Average

Price

 

Homes

 

Home Sale

Revenues

 

Average

Price

 

Homes

 

Home

Sale

Revenues

 

Average
Price

                                   
 

(Dollars in thousands)

West

1,376

   

$

729,777

   

$

530.4

   

1,135

   

$

552,319

   

$

486.6

   

21

%

 

32

%

 

9

%

Mountain

666

   

379,041

   

569.1

   

677

   

347,095

   

512.7

   

(2)

%

 

9

%

 

11

%

East

377

   

148,883

   

394.9

   

335

   

101,135

   

301.9

   

13

%

 

47

%

 

31

%

Total

2,419

   

$

1,257,701

   

$

519.9

   

2,147

   

$

1,000,549

   

$

466.0

   

13

%

 

26

%

 

12

%

 
 
 

Nine Months Ended September 30,

 

2021

 

2020

 

% Change

 

Homes

 

Home Sale

Revenues

 

Average

Price

 

Homes

 

Home Sale

Revenues

 

Average

Price

 

Homes

 

Home

Sale

Revenues

 

Average
Price

                                   
 

(Dollars in thousands)

West

4,324

   

$

2,194,071

   

$

507.4

   

3,023

   

$

1,447,934

   

$

479.0

   

43

%

 

52

%

 

6

%

Mountain

1,989

   

1,104,391

   

555.2

   

1,720

   

886,619

   

515.5

   

16

%

 

25

%

 

8

%

East

1,006

   

368,870

   

366.7

   

851

   

249,839

   

293.6

   

18

%

 

48

%

 

25

%

Total

7,319

   

$

3,667,332

   

$

501.1

   

5,594

   

$

2,584,392

   

$

462.0

   

31

%

 

42

%

 

8

%

 

Net New Orders

 
 

Three Months Ended September 30,

 

2021

 

2020

 

% 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

1,437

   

$

783,072

   

$

544.9

   

4.91

 

1,955

   

$

932,111

   

$

476.8

   

6.58

 

(26)

%

 

(16)

%

 

14

%

 

(25)

%

Mountain

505

   

323,018

   

639.6

   

2.99

 

1,051

   

542,375

   

516.1

   

5.70

 

(52)

%

 

(40)

%

 

24

%

 

(48)

%

East

457

   

199,985

   

437.6

   

3.67

 

509

   

176,896

   

347.5

   

5.39

 

(10)

%

 

13

%

 

26

%

 

(32)

%

Total

2,399

   

$

1,306,075

   

$

544.4

   

4.10

 

3,515

   

$

1,651,382

   

$

469.8

   

6.10

 

(32)

%

 

(21)

%

 

16

%

 

(33)

%

 
 
 

Nine Months Ended September 30,

 

2021

 

2020

 

% 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

4,814

   

$

2,613,279

   

$

542.8

   

5.42

 

4,646

   

$

2,265,557

   

$

487.6

   

5.47

 

4

%

 

15

%

 

11

%

 

(1)

%

Mountain

2,222

   

1,375,442

   

619.0

   

4.35

 

2,502

   

1,309,176

   

523.3

   

4.39

 

(11)

%

 

5

%

 

18

%

 

(1)

%

East

1,286

   

558,716

   

434.5

   

3.91

 

1,156

   

393,913

   

340.8

   

4.23

 

11

%

 

42

%

 

27

%

 

(8)

%

Total

8,322

   

$

4,547,437

   

$

546.4

   

4.82

 

8,304

   

$

3,968,646

   

$

477.9

   

4.91

 

%

 

15

%

 

14

%

 

(2)

%

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

 

Active Subdivisions

 
             

Average Active Subdivisions

 

Average Active Subdivisions

 

Active Subdivisions

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

%

 

September 30,

 

%

 

September 30,

 

%

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

West

104

   

102

   

2

%

 

98

   

99

   

(1)

%

 

99

   

94

   

5

%

Mountain

56

   

61

   

(8)

%

 

56

   

62

   

(10)

%

 

57

   

63

   

(10)

%

East

43

   

31

   

39

%

 

42

   

32

   

31

%

 

37

   

30

   

23

%

Total

203

   

194

   

5

%

 

196

   

193

   

2

%

 

193

   

187

   

3

%

 
 

Backlog

 
 

September 30,

 

2021

 

2020

 

% Change

 

Homes

 

Dollar

Value

 

Average

Price

 

Homes

 

Dollar

Value

 

Average

Price

 

Homes

 

Dollar

Value

 

Average

Price

                                   
 

(Dollars in thousands)

West

4,200

   

$

2,295,570

   

$

546.6

   

3,646

   

$

1,743,547

   

$

478.2

   

15

%

 

32

%

 

14

%

Mountain

2,251

   

$

1,408,945

   

$

625.9

   

1,993

   

$

1,033,264

   

$

518.4

   

13

%

 

36

%

 

21

%

East

1,207

   

$

537,983

   

$

445.7

   

872

   

$

298,965

   

$

342.9

   

38

%

 

80

%

 

30

%

Total

7,658

   

$

4,242,498

   

$

554.0

   

6,511

   

$

3,075,776

   

$

472.4

   

18

%

 

38

%

 

17

%

 

Homes Completed or Under Construction (WIP lots)

 
 

September 30,

 

%

 

2021

 

2020

 

Change

Unsold:

         

Completed

21

   

74

   

(72)

%

Under construction

345

   

129

   

167

%

Total unsold started homes

366

   

203

   

80

%

Sold homes under construction or completed

6,468

   

4,540

   

42

%

Model homes under construction or completed

490

   

505

   

(3)

%

Total homes completed or under construction

7,324

   

5,248

   

40

%

 

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

 
 

September 30, 2021

 

September 30, 2020

   
 

Lots

Owned

 

Lots

Optioned

 

Total

 

Lots

Owned

 

Lots

Optioned

 

Total

 

Total

% Change

West

14,209

   

5,811

   

20,020

   

10,140

   

3,280

   

13,420

   

49

%

Mountain

6,258

   

4,236

   

10,494

   

6,217

   

2,708

   

8,925

   

18

%

East

3,824

   

2,328

   

6,152

   

2,716

   

1,769

   

4,485

   

37

%

Total

24,291

   

12,375

   

36,666

   

19,073

   

7,757

   

26,830

   

37

%

 

Selling, General and Administrative Expenses

 
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2021

 

2020

 

Change

 

2021

 

2020

 

Change

                       
 

(Dollars in thousands)

General and administrative expenses

$

59,935

   

$

45,980

   

$

13,955

   

$

179,056

   

$

131,488

   

$

47,568

 

General and administrative expenses as a percentage
of home sale revenues

4.8

%

 

4.6

%

 

20 bps

   

4.9

%

 

5.1

%

 

-20 bps

 

Marketing expenses

$

25,660

   

$

24,725

   

$

935

   

$

78,195

   

$

68,828

   

$

9,367

 

Marketing expenses as a percentage of home sale
revenues

2.0

%

 

2.5

%

 

-50 bps

   

2.1

%

 

2.7

%

 

-60 bps

 

Commissions expenses

$

34,521

   

$

32,927

   

$

1,594

   

$

106,719

   

$

84,953

   

$

21,766

 

Commissions expenses as a percentage of home sale
revenues

2.7

%

 

3.3

%

 

-60 bps

   

2.9

%

 

3.3

%

 

-40 bps

 

Total selling, general and administrative expenses

$

120,116

   

$

103,632

   

$

16,484

   

$

363,970

   

$

285,269

   

$

78,701

 

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

9.6

%

 

10.4

%

 

-80 bps

   

9.9

%

 

11.0

%

 

-110 bps

 

 

Capitalization of Interest

 
 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

               
 

(Dollars in thousands)

Homebuilding interest incurred

$

19,108

   

$

14,799

   

$

53,849

   

$

46,427

 

Less: Interest capitalized

(19,108)

   

(14,799)

   

(53,849)

   

(46,427)

 

Homebuilding interest expensed

$

   

$

   

$

   

$

 
               

Interest capitalized, beginning of period

$

54,351

   

$

56,929

   

$

52,777

   

$

55,310

 

Plus: Interest capitalized during period

19,108

   

14,799

   

53,849

   

46,427

 

Less: Previously capitalized interest included in home cost of sales

(16,024)

   

(16,511)

   

(49,191)

   

(46,520)

 

Interest capitalized, end of period

$

57,435

   

$

55,217

   

$

57,435

   

$

55,217

 

 

 

 

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