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

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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

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