DENVER, Sept. 14, 2020 /PRNewswire/ -- In anticipation of
upcoming meetings with investors, M.D.C. Holdings, Inc. (NYSE:
MDC), one of the nation's leading homebuilders, announced
preliminary information regarding the Company's August 2020 quarter-to-date net new home order
activity.
For the first two months of the 2020 third quarter, net new home
orders increased 75% year-over-year to 2,477, compared with 1,418
for the same period in 2019. The increase was driven by a 73%
improvement in the monthly sales absorption rate to 6.48 and a 1%
increase in the average number of active subdivisions to 191.
Larry A. Mizel, MDC's Chairman
and Chief Executive Officer, stated, "The sharp increase in demand
for new homes has extended into the third quarter, and we are
increasingly optimistic that the elevated level of activity is part
of a larger trend for our industry. With historically low interest
rates and COVID-19 concerns as a backdrop, consumers are showing a
strong preference for suburban living, part of a demographic shift
that we believe was taking place before the pandemic began. As we
approach the close of the third quarter, we are well positioned to
reach 8,000 home deliveries for the 2020 full year. Furthermore, we
believe we have the lot supply and the right product type to drive
significant growth in 2021, provided that market fundamentals
remain favorable."
Monthly Net Orders
|
One Month Ended July
31,
|
|
2020
|
|
2019
|
|
% Change
|
West
|
688
|
|
407
|
|
69%
|
Mountain
|
332
|
|
177
|
|
88%
|
East
|
187
|
|
97
|
|
93%
|
Total
|
1,207
|
|
681
|
|
77%
|
|
|
|
|
|
|
|
One Month Ended
August 31,
|
|
2020
|
|
2019
|
|
% Change
|
West
|
726
|
|
414
|
|
75%
|
Mountain
|
381
|
|
207
|
|
84%
|
East
|
163
|
|
116
|
|
41%
|
Total
|
1,270
|
|
737
|
|
72%
|
Quarter-to-Date Net Orders
|
Two Months Ended
August 31,
|
|
2020
|
|
2019
|
|
% Change
|
West
|
1,414
|
|
821
|
|
72%
|
Mountain
|
713
|
|
384
|
|
86%
|
East
|
350
|
|
213
|
|
64%
|
Total
|
2,477
|
|
1,418
|
|
75%
|
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 210,000
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 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 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 most recent annual report on Form 10-K and our subsequent
quarterly reports on Form 10-Q filed with the Securities and
Exchange Commission. 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.
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SOURCE M.D.C. Holdings, Inc.