M.D.C. Holdings Announces 2012 Fourth Quarter Results

Jan 31, 2013, 06:00 ET from M.D.C. Holdings, Inc.

DENVER, Jan. 31, 2013 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended December 31, 2012.

2012 Fourth Quarter Highlights and Comparisons to 2011 Fourth Quarter

  • Net income of $29.7 million, or $0.59 per diluted share vs. net loss of $18.8 million, or $0.40 per diluted share
    • 2011 fourth quarter included $20.2 million charge related to debt extinguishment
  • Net new orders of 869 homes, up 66%
  • Backlog of 1,645 homes, up 58%; backlog dollar value up 76% to $579.0 million
  • Home sale revenues of $389.1 million, up 69%
  • Homes closed of 1,221 homes, up 54%
  • Gross margin from home sales of 16.7% vs. 14.9%
    • Improvement of 120 basis points vs. 15.5% in 2012 third quarter
    • Excluding impairments of $1.1 million, gross margin from home sales was up 150 basis points from the 2012 third quarter to 17.0%*
  • SG&A expenses as a percentage of home sale revenues of 12.6% vs. 15.6%, a 300 basis point improvement
  • Homebuilding operations pretax income of $22.2 million vs. loss of $18.5 million
  • Financial services segment pretax profit of $7.7 million vs. loss of $1.3 million
  • Acquired 2,335 lots in 67 communities, including 42 new communities

2012 Full Year Highlights and Comparisons to 2011 Full Year

  • Net income of $62.7 million, or $1.28 per diluted share vs. net loss of $98.4 million, or $2.12 per diluted share
    • 2011 included $38.8 million charge related to debt extinguishment
  • Net new orders of 4,342 homes, up 50%
  • Home sale revenues of $1.15 billion, up 43%
  • Homes closed of 3,740 homes, up 35%
  • Gross margin from home sales of 15.4% vs. 13.1%
  • SG&A expenses as a percentage of home sale revenues of 14.5% vs. 22.2%, a 770 basis point improvement

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "I am pleased to announce a fourth quarter profit of $0.59 per share, our fourth consecutive quarterly operating profit, with net income improving by almost $50 million over the prior year. For the full year, our net income improved by more than $160 million. Our favorable results were attributable to significantly improved operating profits from both our homebuilding and financial services segments, which benefited from improving market conditions and our operational improvements, leading to increased volume and margins for both businesses."

Mr. Mizel continued, "During the fourth quarter, we continued to see signs of improving demand. While historically our sales pace has declined from the third to the fourth quarter, in 2012 it was almost unchanged, leading to a year-over-year improvement in our fourth quarter net home orders of 66%. The strengthening sales pace has allowed us to raise prices and reduce incentives, leading to significant improvements in our gross profit margin on both a sequential and year-over-year basis. We believe that our focus on the balance between price and sales pace will continue to be critical to our success in 2013, as we expect to see pressure on land and building costs based on improving demand. In addition, we believe our unit backlog, which ended the quarter up 58% from a year ago, will help drive the revenue increases we need to improve our operating leverage in future periods."

Mizel concluded, "Given the expanding volume for our business, land acquisition remains a key Company focus. During the fourth quarter, we purchased more than 2,300 lots, exceeding our combined acquisition activity for the previous four quarters. These land purchases drove a 10% increase in our lot supply from the end of the third quarter and should help us to grow our community count in the first half of 2013. After increasing our investment in homebuilding assets in the fourth quarter, we recently raised $250 million in the form of 30-year senior unsecured notes, in support of the long-term growth and continued financial strength and liquidity of our Company."

Homebuilding

Home sale revenues for the 2012 fourth quarter increased 69% to $389.1 million compared to $230.7 million for the prior year period.  The increase in revenues resulted primarily from a 54% increase in homes closed to 1,221 homes as compared to 792 in the prior year. The Company's average selling price for homes closed was $318,700, up 9% year-over-year compared to $291,300 for the prior year period, primarily due to increased prices and lower incentives in many of our markets, coupled with a mix shift in closings to more desirable communities within individual markets.

Gross margin from home sales for the 2012 fourth quarter increased to 16.7% from 14.9% for the year-earlier period. On a sequential basis, our 2012 fourth quarter gross margin from home sales was up 120 basis points as compared to 15.5% for the 2012 third quarter and up 150 basis points to 17.0% excluding $1.1 million of inventory impairments*. Both increases were attributable to the Company's increased pricing and decreased incentives in most markets for much of 2012. Additionally, the year-over-year and sequential increases for homes started without a buyer under contract were particularly strong, as the available resale inventory in many of our markets remained at low levels.

Our 2012 fourth quarter SG&A expenses were $49.2 million, compared to $35.9 million for the 2011 fourth quarter. The increase in SG&A was attributable to a $7.5 million increase in general and administrative expenses, as the 2011 fourth quarter benefited from sizeable reductions to our bonus and legal accruals, which did not recur in the 2012 fourth quarter. Additionally, the Company's commissions expense increased by $4.9 million, attributable to our increase in home sale revenues. Despite the increased SG&A expenses, the Company's operating leverage improved because of strong top-line growth, with SG&A expenses as a percentage of home sales revenues decreasing 300 basis points to 12.6% for the 2012 fourth quarter versus 15.6% for the same period in 2011.

Net new orders for the 2012 fourth quarter increased 66% to 869 homes, compared to 523 homes during the same period in 2011.  The Company's monthly sales absorption rate for the 2012 fourth quarter rose 98% to 1.86 per community, compared to 0.94 per community for the 2011 fourth quarter.  The Company's cancellation rate for the 2012 fourth quarter was 24% versus 45% in the prior year fourth quarter and 27% in the 2012 third quarter.

The Company ended the 2012 fourth quarter with 1,645 homes in backlog, with an estimated sales value of $579.0 million, compared with a backlog of 1,043 homes with an estimated sales value of $329.9 million at December 31, 2011.

Financial Services

Income before taxes from our financial services operations for the 2012 fourth quarter was $7.7 million, compared to a loss of $1.3 million for the 2011 fourth quarter.  The increase in pretax income primarily reflected a $7.7 million increase in our mortgage segment's pretax results from a loss of $0.4 million in the 2011 fourth quarter to income of $7.3 million for the 2012 fourth quarter.  The improvement in our mortgage profitability was driven primarily by year-over-year increases in the gains on sales of mortgage loans and the corresponding servicing rights, and higher origination income. These increases were due largely to favorable mortgage market conditions, increases in the volume of loans locked and originated, and a decrease in the level of special financing programs that we offered our homebuyers. Additionally, mortgage operations benefited from a $4.0 million decrease in the expense recognized for mortgage loan losses.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 170,000 homebuyers. 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 Francisco Bay Area, Washington D.C., Baltimore, Philadelphia, Jacksonville and Seattle. 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 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 the Company 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 the Company, including cancellation rates, net home orders, home gross margins, and land and home values; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of the Company's investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican'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 the Company 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; (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; and (16) other factors over which the Company has little or no control.  Additional information about the risks and uncertainties applicable to the Company's business is contained in the Company's Form 10-K for the year ended December 31, 2012, 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.  The Company 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.

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

 

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

Three Months

Year Ended

Ended December 31,

December 31,

2012

2011

2012

2011

(Dollars in thousands, except per share amounts)

Homebuilding:

(Unaudited)

Home sale revenues

$   389,141

$   230,732

$ 1,150,998

$   805,164

Land sale revenues

1,724

8,360

5,144

11,859

Total home sale and land revenues

390,865

239,092

1,156,142

817,023

Home cost of sales

(323,179)

(196,140)

(973,120)

(686,661)

Land cost of sales

(1,613)

(8,314)

(4,823)

(10,796)

Inventory impairments

(1,105)

(283)

(1,105)

(12,965)

Total cost of sales

(325,897)

(204,737)

(979,048)

(710,422)

Gross margin

64,968

34,355

177,094

106,601

Selling, general and administrative expenses

(49,160)

(35,934)

(167,295)

(179,105)

Interest income

6,747

6,631

23,398

26,068

Interest expense

-

(1,200)

(808)

(20,842)

Other income (expense)

(364)

(22,365)

228

(43,350)

Homebuilding pretax income (loss)

22,191

(18,513)

32,617

(110,628)

Financial Services:

Revenues

14,908

8,111

46,881

26,086

Expenses

(8,186)

(10,244)

(21,645)

(26,306)

Interest and other income

938

870

3,262

3,376

Financial services pretax income (loss)

7,660

(1,263)

28,498

3,156

Income (loss) before income taxes

29,851

(19,776)

61,115

(107,472)

Benefit (provision) for income taxes

(181)

955

1,584

9,082

Net income (loss)

$     29,670

$   (18,821)

$      62,699

$   (98,390)

Other comprehensive income (loss):

Unrealized gain related to available-for-sale securities

1,133

6,781

12,078

(12,124)

Comprehensive income (loss)

$     30,803

$   (12,040)

$      74,777

$ (110,514)

Earnings (loss) per share:

Basic

$         0.60

$       (0.40)

$          1.29

$       (2.12)

Diluted

$         0.59

$       (0.40)

$          1.28

$       (2.12)

Weighted Average Common Shares Outstanding:

Basic

48,140,725

47,011,311

47,660,629

46,796,334

Diluted

48,865,996

47,011,311

48,064,839

46,796,334

Dividends declared per share

$         1.25

$         0.25

$          2.00

$         1.00

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

December 31, 

2012

2011

(Dollars in thousands, except per share amounts)

ASSETS

(Unaudited)

Homebuilding:

Cash and cash equivalents

$       129,535

$       316,418

Marketable securities

519,465

485,434

Restricted cash

1,859

667

Trade and other receivables

28,163

21,593

Inventories:

Housing completed or under construction

512,949

300,714

Land and land under development

489,572

505,338

     Total inventories

1,002,521

806,052

Property and equipment, net

33,125

36,277

Deferred tax asset, net of valuation allowance of $248,306 and $281,178 at December 31, 2012 and 2011, respectively

-

-

Prepaid expenses and other assets

44,777

50,423

Total homebuilding assets

1,759,445

1,716,864

Financial Services:

Cash and cash equivalents

30,560

26,943

Marketable securities

32,473

34,509

Mortgage loans held-for-sale, net

119,953

78,335

Prepaid expenses and other assets

3,010

2,074

Total financial services assets

185,996

141,861

      Total Assets

$    1,945,441

$    1,858,725

LIABILITIES AND EQUITY

Homebuilding:

Accounts payable 

$         73,055

$         25,645

Accrued liabilities

118,456

119,188

Senior notes, net

744,842

744,108

Total homebuilding liabilities

936,353

888,941

Financial Services:

Accounts payable and accrued liabilities

51,864

52,446

Mortgage repurchase facility

76,327

48,702

Total financial services liabilities

128,191

101,148

      Total Liabilities

1,064,544

990,089

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; 48,698,757 issued and outstanding at December 31, 2012 and 48,017,108 and 47,957,196 issued and outstanding, respectively, at December 31, 2011

487

480

Additional paid-in-capital

896,861

863,128

Retained earnings (accumulated deficit)

(21,289)

12,927

Accumulated other comprehensive income (loss)

4,838

(7,240)

Treasury stock, at cost; no shares at December 31, 2012 and 59,912 at December 31, 2011

-

(659)

Total Stockholders' Equity

880,897

868,636

Total Liabilities and Stockholders' Equity

$    1,945,441

$    1,858,725

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

 Three Months 

 Year Ended 

 Ended December 31, 

 December 31, 

2012

2011

2012

2011

(Dollars in thousands)

(Unaudited)

Operating Activities:

Net income (loss)

$    29,670

$   (18,821)

$    62,699

$   (98,390)

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

    Loss on extinguishment of senior notes

-

20,236

-

38,795

Stock-based compensation expense

3,597

3,340

16,225

15,432

Depreciation and amortization 

1,058

1,658

4,766

6,371

Inventory impairments and write-offs of land option deposits

1,429

2,126

1,843

20,009

Amortization of (premium) discount on marketable debt securities

317

(333)

596

1,271

    Net changes in assets and liabilities:

      Restricted cash

225

15

(1,192)

(247)

      Trade and other receivables

7,462

(4,036)

(6,223)

12,078

      Mortgage loans held-for-sale

(33,305)

(36,034)

(41,618)

(13,221)

      Housing completed or under construction

(9,160)

32,616

(212,154)

86,477

      Land and land under development

(97,092)

11,773

15,314

(93,381)

      Prepaid expenses and other assets

4,203

12,901

3,650

10,119

      Accounts payable

23,410

(1,289)

47,473

(9,012)

      Accrued liabilities

9,822

(23,693)

(198)

(56,585)

Net cash provided by (used in) operating activities

(58,364)

459

(108,819)

(80,284)

Investing Activities:

Purchase of marketable securities

(81,534)

(42,344)

(478,701)

(330,968)

Maturity of marketable securities

2,250

38,980

108,250

492,051

Sale of marketable securities

64,882

26,606

349,938

275,038

Purchase of property and equipment and other

(310)

(140)

(1,268)

(31,857)

Net cash provided by (used in) investing activities

(14,712)

23,102

(21,781)

404,264

Financing Activities:

 Extinguishment of senior notes

-

(282,821)

-

(537,724)

Payments on mortgage repurchase facility

(58,873)

(34,918)

(196,402)

(91,372)

Advances on mortgage repurchase facility

88,312

72,912

224,027

114,640

Dividend payments

(60,869)

(11,872)

(96,915)

(47,432)

Proceeds from exercise of stock options

804

8,998

16,624

9,044

Net cash provided by (used in) financing activities

(30,626)

(247,701)

(52,666)

(552,844)

Net increase (decrease) in cash and cash equivalents

(103,702)

(224,140)

(183,266)

(228,864)

Cash and cash equivalents:

      Beginning of period

263,797

567,501

343,361

572,225

      End of period

$  160,095

$  343,361

$  160,095

$  343,361

 

 

M.D.C. HOLDINGS, INC. Homebuilding Operational Data

New Home Deliveries:

 Three Months Ended December 31, 

2012

2011

 % Change 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

(Dollars in thousands)

Arizona 

185

$        41,358

$  223.6

122

$    22,950

$  188.1

52%

80%

19%

California 

224

76,722

342.5

104

30,934

297.4

115%

148%

15%

Nevada 

165

37,990

230.2

108

19,683

182.3

53%

93%

26%

Washington

81

25,014

308.8

46

11,798

256.5

76%

112%

20%

West 

655

181,084

276.5

380

85,365

224.6

72%

112%

23%

Colorado 

268

96,493

360.0

211

71,679

339.7

27%

35%

6%

Utah 

75

22,132

295.1

47

12,576

267.6

60%

76%

10%

Mountain 

343

118,625

345.8

258

84,255

326.6

33%

41%

6%

Maryland 

77

31,523

409.4

54

24,806

459.4

43%

27%

-11%

Virginia 

84

42,672

508.0

60

26,683

444.7

40%

60%

14%

Florida 

62

15,237

245.8

36

8,499

236.1

72%

79%

4%

Illinois 

-

-

-

4

1,124

281.0

N/M

N/M

N/M

East

223

89,432

401.0

154

61,112

396.8

45%

46%

1%

Total 

1,221

$      389,141

$  318.7

792

$  230,732

$  291.3

54%

69%

9%

 Year Ended December 31, 

2012

2011

 % Change 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

(Dollars in thousands)

Arizona 

603

$      131,278

$  217.7

423

$    80,133

$  189.4

43%

64%

15%

California 

543

184,490

339.8

272

83,488

306.9

100%

121%

11%

Nevada 

604

125,725

208.2

331

61,833

186.8

82%

103%

11%

Washington

247

73,074

295.8

146

38,710

265.1

69%

89%

12%

West 

1,997

514,567

257.7

1,172

264,164

225.4

70%

95%

14%

Colorado 

807

289,416

358.6

748

251,935

336.8

8%

15%

6%

Utah 

226

64,006

283.2

225

61,761

274.5

0%

4%

3%

Mountain 

1,033

353,422

342.1

973

313,696

322.4

6%

13%

6%

Maryland 

233

99,476

426.9

207

90,312

436.3

13%

10%

-2%

Virginia 

280

135,067

482.4

211

90,844

430.5

33%

49%

12%

Florida 

195

47,915

245.7

190

43,450

228.7

3%

10%

7%

Illinois 

2

551

275.5

9

2,698

299.8

N/M

N/M

N/M

East

710

283,009

398.6

617

227,304

368.4

15%

25%

8%

Total 

3,740

$   1,150,998

$  307.8

2,762

$  805,164

$  291.5

35%

43%

6%

 

M.D.C. HOLDINGS, INC.  

Homebuilding Operational Data  

Net New Orders:

 Three Months Ended December 31, 

2012

2011

 % Change 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

(Dollars in thousands)

Arizona 

56

$        12,436

$  222.1

77

$     13,216

$  171.6

-27%

-6%

29%

California 

143

49,641

347.1

64

19,419

303.4

123%

156%

14%

Nevada 

130

31,271

240.5

62

10,755

173.5

110%

191%

39%

Washington

56

18,285

326.5

56

15,113

269.9

0%

21%

21%

West 

385

111,633

290.0

259

58,503

225.9

49%

91%

28%

Colorado 

247

87,289

353.4

148

50,111

338.6

67%

74%

4%

Utah 

36

10,589

294.1

10

2,606

260.6

260%

306%

13%

Mountain 

283

97,878

345.9

158

52,717

333.7

79%

86%

4%

Maryland 

68

26,812

394.3

26

11,653

448.2

162%

130%

-12%

Virginia 

86

43,004

500.0

39

20,434

523.9

121%

110%

-5%

Florida 

47

12,991

276.4

38

9,253

243.5

24%

40%

14%

Illinois 

-

-

-

3

802

267.3

N/M

N/M

N/M

East

201

82,807

412.0

106

42,142

397.6

90%

96%

4%

Total 

869

$      292,318

$  336.4

523

$   153,362

$  293.2

66%

91%

15%

 Year Ended December 31, 

2012

2011

 % Change 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

(Dollars in thousands)

Arizona 

625

$      137,159

$  219.5

467

$     87,223

$  186.8

34%

57%

17%

California 

654

225,174

344.3

311

92,760

298.3

110%

143%

15%

Nevada 

652

146,094

224.1

411

75,011

182.5

59%

95%

23%

Washington

272

82,325

302.7

124

32,577

262.7

119%

153%

15%

West 

2,203

590,752

268.2

1,313

287,571

219.0

68%

105%

22%

Colorado 

1,044

364,056

348.7

708

240,671

339.9

47%

51%

3%

Utah 

239

71,080

297.4

224

61,760

275.7

7%

15%

8%

Mountain 

1,283

435,136

339.2

932

302,431

324.5

38%

44%

5%

Maryland 

303

129,891

428.7

194

87,279

449.9

56%

49%

-5%

Virginia 

362

179,744

496.5

244

109,103

447.1

48%

65%

11%

Florida 

189

46,493

246.0

196

45,592

232.6

-4%

2%

6%

Illinois 

2

550

275.0

8

2,279

284.9

N/M

N/M

N/M

East

856

356,678

416.7

642

244,253

380.5

33%

46%

10%

Total 

4,342

$   1,382,566

$  318.4

2,887

$   834,255

$  289.0

50%

66%

10%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Active Subdivisions:

 December 31, 

2012

2011

% Change

Arizona 

12

25

-52%

California 

13

17

-24%

Nevada 

12

20

-40%

Washington

10

9

11%

West 

47

71

-34%

Colorado 

42

47

-11%

Utah 

14

21

-33%

Mountain 

56

68

-18%

Maryland 

18

16

13%

Virginia 

12

15

-20%

Florida 

15

17

-12%

East

45

48

-6%

Total 

148

187

-21%

Average for quarter ended

156

185

-16%

Average for year ended

173

171

1%

 

Backlog:

December 31,

2012

2011

% Change

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 Homes 

 Dollar Value 

 Average Price 

 (Dollars in thousands) 

Arizona 

150

$     35,064

$    233.8

128

$      26,875

$    210.0

17%

30%

11%

California 

229

78,400

342.4

118

37,341

316.4

94%

110%

8%

Nevada 

204

50,533

247.7

156

29,969

192.1

31%

69%

29%

Washington

79

26,761

338.7

54

14,958

277.0

46%

79%

22%

West 

662

190,758

288.2

456

109,143

239.3

45%

75%

20%

Colorado 

470

174,280

370.8

233

84,519

362.7

102%

106%

2%

Utah 

81

25,058

309.4

68

19,253

283.1

19%

30%

9%

Mountain 

551

199,338

361.8

301

103,772

344.8

83%

92%

5%

Maryland 

183

79,162

432.6

113

48,987

433.5

62%

62%

0%

Virginia 

185

92,303

498.9

103

49,953

485.0

80%

85%

3%

Florida 

64

17,452

272.7

70

18,020

257.4

-9%

-3%

6%

East

432

188,917

437.3

286

116,960

409.0

51%

62%

7%

Total 

1,645

$   579,013

$    352.0

1,043

$    329,875

$    316.3

58%

76%

11%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots):

December 31,

2012

2011

 % Change 

Unsold

Completed

221

146

51%

Under construction - frame

421

249

69%

Under construction - foundation 

183

79

132%

Total unsold started homes 

825

474

74%

Sold homes under construction or completed

1,147

638

80%

Model homes 

221

226

-2%

Total homes completed or under construction

2,193

1,338

64%

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

December 31, 2012

December 31, 2011

Lots Owned

Lots Optioned

Total

Lots Owned

Lots Optioned

Total

Arizona 

1,763

80

1,843

955

92

1,047

California 

1,080

-

1,080

1,384

-

1,384

Nevada 

1,226

40

1,266

1,191

33

1,224

Washington

472

162

634

385

147

532

West

4,541

282

4,823

3,915

272

4,187

Colorado 

3,335

508

3,843

3,220

321

3,541

Utah 

532

13

545

607

17

624

Mountain

3,867

521

4,388

3,827

338

4,165

Maryland 

577

315

892

564

598

1,162

Virginia 

553

263

816

678

173

851

Florida 

365

159

524

330

340

670

Illinois 

-

-

-

125

-

125

East

1,495

737

2,232

1,697

1,111

2,808

Total 

9,903

1,540

11,443

9,439

1,721

11,160

M.D.C. HOLDINGS, INC.  

Reconciliation of Non-GAAP Financial Measures

Gross margin from home sales before impairments is a non-GAAP financial measure. We believe this information is meaningful as it isolates the impact that inventory impairments has 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 

 Year Ended 

December 31, 2012

 Gross Margin % 

December 31, 2011

 Gross Margin % 

December 31, 2012

 Gross Margin % 

December 31, 2011

 Gross Margin % 

(Dollars in thousands)

Gross Margin

$           64,968

16.6%

$           34,355

14.4%

$         177,094

15.3%

$         106,601

13.0%

  Less: Land Sales Revenue

(1,724)

(8,360)

(5,144)

(11,859)

  Add: Land Cost of Sales

1,613

8,314

4,823

10,796

Gross Margin from Home Sales

$           64,857

16.7%

$           34,309

14.9%

$         176,773

15.4%

$         105,538

13.1%

  Add: Inventory Impairments

1,105

283

1,105

12,965

Gross Margin from Home Sales before Impairments

$           65,962

17.0%

$           34,592

15.0%

$         177,878

15.5%

$         118,503

14.7%

 

SOURCE M.D.C. Holdings, Inc.



RELATED LINKS

http://www.mdcholdings.com