- Net orders for 977 homes vs. 959 in Q2 2008 - Cancellation rate of 20% vs. 43% in Q2 2008 - Closed 665 homes at an average selling price of $279,000 - 941 units in backlog with an estimated sales value of $295.0 million - Total revenue of $195.3 million vs. $403.4 million in 2008 - Net loss narrowed to $29.6 million; includes $17.6 million increase in deferred tax valuation allowance - Diluted loss per share of $0.64 vs. $2.18 in 2008 - Asset impairments of $1.2 million vs. $88.3 million in 2008 - Quarter-end cash and investments of $1.63 billion DENVER, July 31 /PRNewswire-FirstCall/ -- M.D.C. Holdings, Inc. (NYSE: MDC) today reported results for its second quarter ended June 30, 2009. The Company announced a net loss for the quarter of $29.6 million, or $0.64 per diluted share, which included a pre-tax charge of $1.2 million for asset impairments. The 2009 second quarter net loss also included a $17.6 million increase in our deferred tax valuation allowance, of which $9.7 million related to a 2006 alternative minimum tax liability associated with our 2008 net operating loss carry back. The net loss for the 2008 second quarter was $100.7 million, or $2.18 per diluted share, which included a pre-tax charge of $88.3 million for asset impairments and an increase in our deferred tax valuation allowance of $43.4 million. Total revenue for the second quarter of 2009 was $195.3 million, compared with revenue of $403.4 million for the same period in 2008. Larry A. Mizel, MDC's chairman and chief executive officer, stated, "Overall economic conditions in the second quarter remained extremely difficult, as evidenced by a national unemployment rate that now stands at its highest level in more than 25 years. However, we did experience a year-over-year increase in quarterly net home orders for the first time since 2005, and our impairments dropped to a nominal level. In addition, building and sales activity for the industry overall improved from historic lows recorded earlier this year." Mizel continued, "We are pleased to report that we made significant progress during the second quarter on strategic initiatives designed to strengthen our operating platform. The smaller, more affordable homes that we introduced earlier this year in many of our markets have been well-received by our buyers, with a sales absorption pace exceeding the Company's average. These homes are designed both to meet the current needs of our customers and to allow for a more efficient construction process, and we intend to expand their availability to a larger percentage of our active communities in the future." "We believe that the strategic production of unsold homes can be very effective if managed properly, and therefore we have built a limited supply of unsold inventory. We generally require construction on the unsold homes to stop at the drywall stage so that the buyers have the opportunity to personalize the homes with upgrades from one of our Home Galleries or design centers. We believe that this strategy will help us to turn our inventories more quickly while we maintain margins similar to those received for a build-to-order home. Because of this strategy, the number of unsold homes available for personalization increased slightly during the quarter. During the same period, we reduced our inventory of finished, unsold homes by more than 70%." Mizel concluded, "With our cash and investments balance of more than $1.6 billion at the end of the quarter, no borrowings outstanding on our homebuilding line of credit and no senior debt maturities until 2012, we are well positioned with the option to take advantage of market opportunities that may arise. We continue to actively pursue and evaluate potential investments, subjecting each to our rigorous and disciplined investment process and approving only those that we believe will maximize long-term value for our shareholders." Operational Highlights Net orders for the second quarter ended June 30, 2009 totaled 977 homes with an estimated sales value of $289.0 million, compared with net orders for 959 homes with an estimated sales value of $279.0 million during the same period in 2008. The slight net order improvement was driven by significant increases in our Mountain and East segments, offset by a substantial decline in our West segment. During the second quarter of 2009, the Company's cancellation rate dropped to 20% compared with 43% during the same period in 2008, primarily due to a significantly lower beginning backlog in the second quarter of 2009 as compared with the second quarter of 2008. In addition, cancellation rates were lower due to a decrease in mortgage-related issues and a decline in the number of prospective home buyers with a contingency to sell an existing home. Homebuilding revenue for the 2009 second quarter fell to $192.0 million, compared with $400.9 million in the second quarter of 2008. The decline in revenue was primarily the result of a year-over-year decline in home closings and average selling price of 49% and 6%, respectively. All of our markets experienced year-over-year decreases in home closings and all but California experienced year-over-year declines in average selling price. Home gross margins during the second quarter of 2009 increased to 18.0% from 11.7% in the second quarter of 2008, primarily due to significant prior period impairments, which lowered the lot cost basis on homes that closed during the quarter. In addition, second quarter home gross margins were positively impacted by a reduction in the warranty reserve, due to a decrease in warranty payments actually incurred. These positive results were partially offset by the decline in the average selling prices of homes closed and by a shift in mix to a higher percentage of low-margin model and finished spec home closings during the second quarter of 2009. Homebuilding SG&A decreased to $30.8 million for the quarter ended June 30, 2009, compared with $56.7 million for the same period in the prior year. The decrease in SG&A resulted from various cost saving initiatives associated with right-sizing our operations in response to the reduced level of home closings, including a 44% reduction in homebuilding headcount over the past year. Also contributing to this decrease was a reduction in marketing expenses, primarily due to a significant reduction in both the amortization of deferred marketing costs and sales office and model home expenses, as well as a decline in commission expenses resulting from fewer home closings and lower average selling prices. During the second quarter of 2009, we recognized $1.2 million of asset impairments, a decrease of 99% from the $88.3 million recognized in the 2008 second quarter. Overall, the year-over-year decrease in asset impairments can be attributed to the reduction in the total number of lots owned and the impact of recording significant impairments over the last eleven quarters, thereby reducing our exposure to further impairments. Six Month Results Net loss for the six months ended June 30, 2009 was $70.4 million, or $1.52 per diluted share, which included a pre-tax charge of $15.8 million for asset impairments. The net loss for the six months ended June 30, 2009 also included a $33.0 million increase in our deferred tax valuation allowance, of which $9.7 million related to a 2006 alternative minimum tax liability associated with our 2008 net operating loss carry back. The net loss for the first six months of 2008 was $173.5 million, or $3.77 per diluted share, which included a pre-tax charge of $143.1 million for asset impairments and an increase of $54.0 million to our deferred tax asset valuation allowance. About MDC Since 1972, MDC has built and financed the American dream for over 160,000 families. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. As one of the largest homebuilders in the United States, the Company has homebuilding divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. The Company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, 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 http://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) the relative stability of debt and equity markets; (5) competition; (6) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (7) the availability and cost of performance bonds and insurance covering risks associated with our business; (8) shortages and the cost of labor; (9) weather related slowdowns; (10) slow growth initiatives; (11) building moratoria; (12) governmental regulation, including the interpretation of tax, labor and environmental laws; (13) changes in consumer confidence and preferences; (14) terrorist acts and other acts of war; and (15) 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-Q for the quarter June 30, 2009, 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 presentations should be consulted. M.D.C. HOLDINGS, INC. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Six Months Ended June 30, Ended June 30, --------------- --------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue Home sales revenue $185,554 $382,093 $352,536 $737,885 Land sales revenue 1,954 12,281 4,572 40,849 Other revenue 7,758 9,048 14,090 20,466 ----- ----- ------ ------ Total Revenue 195,266 403,422 371,198 799,200 ------- ------- ------- ------- Costs and Expenses Home cost of sales 152,118 337,543 293,443 652,580 Land cost of sales 1,500 6,835 2,841 34,784 Asset impairments, net 1,243 88,278 15,812 143,110 Marketing expenses 7,930 20,350 16,762 39,553 Commission expenses 6,953 14,659 13,311 28,092 General and administrative expenses 37,800 43,922 76,181 95,110 Other operating expenses 292 1,846 557 3,570 Related party expenses 4 5 9 10 --- --- --- --- Total Operating Costs and Expenses 207,840 513,438 418,916 996,809 ------- ------- ------- ------- Loss from Operations (12,574) (110,016) (47,718) (197,609) ------- -------- ------- -------- Other income (expense) Interest income 2,968 8,547 7,039 19,023 Interest expense (9,838) (80) (19,578) (210) Other income 381 9 121 30 --- --- --- --- Loss Before Taxes (19,063) (101,540) (60,136) (178,766) ------- -------- ------- -------- Provision for benefit from income taxes, net (10,519) 814 (10,299) 5,220 ------- --- ------- ----- NET LOSS $(29,582) $(100,726) $(70,435) $(173,546) ======== ========= ======== ========= LOSS PER SHARE Basic $(0.64) $(2.18) $(1.52) $(3.77) ====== ====== ====== ====== Diluted $(0.64) $(2.18) $(1.52) $(3.77) ====== ====== ====== ====== WEIGHTED-AVERAGE SHARES OUTSTANDING Basic 46,548 46,110 46,474 46,033 ====== ====== ====== ====== Diluted 46,548 46,110 46,474 46,033 ====== ====== ====== ====== DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $0.50 $0.50 ===== ===== ===== ===== M.D.C. HOLDINGS, INC. Consolidated Balance Sheets (Dollars in thousands, except per share amounts) (Unaudited) June 30, December 31, 2009 2008 ---- ---- Assets Cash and cash equivalents $1,559,825 $1,304,728 Marketable securities 71,926 54,864 Unsettled trades, net 2,133 57,687 Restricted cash 619 670 Receivables Home sales receivables 13,073 17,104 Income taxes receivable - 170,753 Other receivables 13,108 16,697 Mortgage loans held-for-sale, net 51,029 68,604 Inventories, net Housing completed or under construction 297,092 415,500 Land and land under development 195,778 221,822 Property and equipment, net 37,146 38,343 Deferred tax asset, net of valuation allowance - - Related party assets 28,627 28,627 Prepaid expenses and other assets, net 78,338 79,539 ------ ------ Total Assets $2,348,694 $2,474,938 ========== ========== Liabilities Accounts payable $28,582 $28,793 Accrued liabilities 301,228 332,825 Income taxes payable, net 2,764 - Mortgage repurchase facility 24,175 34,873 Senior notes, net 997,756 997,527 ------- ------- Total Liabilities 1,354,505 1,394,018 --------- --------- Commitments and Contingencies - - 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; 47,017,000 and 46,964,000 issued and outstanding, respectively, at June 30, 2009 and 46,715,000 and 46,666,000 issued and outstanding, respectively, at December 31, 2008 470 467 Additional paid-in-capital 795,345 788,207 Retained earnings 199,033 292,905 Treasury stock, at cost; 53,000 and 49,000 shares at June 30, 2009 and December 31, 2008, respectively (659) (659) ---- ---- Total Stockholders' Equity 994,189 1,080,920 ------- --------- Total Liabilities and Stockholders' Equity $2,348,694 $2,474,938 ========== ========== M.D.C. HOLDINGS, INC. Information on Segments (Dollars in thousands) (Unaudited) Three Months Six Months Ended June 30, Ended June 30, ---------------- --------------- 2009 2008 2009 2008 ---- ---- ---- ---- REVENUE Homebuilding West $81,758 $220,937 $156,440 $444,316 Mountain 57,658 87,405 101,775 157,887 East 39,479 63,501 79,971 130,846 Other Homebuilding 13,117 29,040 26,800 56,089 ------ ------ ------ ------ Total Homebuilding 192,012 400,883 364,986 789,138 Financial Services and Other 7,006 6,664 12,569 16,844 Corporate - 193 50 377 Inter-company adjustments (3,752) (4,318) (6,407) (7,159) ------ ------ ------ ------ Consolidated $195,266 $403,422 $371,198 $799,200 ======== ======== ======== ======== (LOSS) INCOME BEFORE INCOME TAXES Homebuilding West $10,075 $(33,591) $(228) $(94,982) Mountain (2,308) (39,027) (7,119) (50,635) East (4,626) (12,700) (6,997) (15,079) Other Homebuilding (677) (9,156) (1,508) (11,052) ---- ------ ------ ------- Total Homebuilding 2,464 (94,474) (15,852) (171,748) Financial Services and Other 2,615 557 4,236 4,705 Corporate (24,142) (7,623) (48,520) (11,723) ------- ------ ------- ------- Consolidated $(19,063) $(101,540) $(60,136) $(178,766) ======== ========= ======== ========= INVENTORY IMPAIRMENTS West $(557) $39,519 $12,510 $86,663 Mountain - 30,100 254 34,054 East 1,725 9,008 2,475 10,541 Other Homebuilding - 6,595 284 7,630 --- ----- --- ----- Consolidated $1,168 $85,222 $15,523 $138,888 ====== ======= ======= ======== June 30, December 31, 2009 2008 ---- ---- TOTAL ASSETS Homebuilding West $189,672 $255,652 Mountain 253,566 288,221 East 114,105 151,367 Other Homebuilding 24,393 38,179 ------ ------ Total Homebuilding 581,736 733,419 Financial Services and Other 123,142 139,569 Corporate 1,689,773 1,647,907 --------- --------- Inter-company adjustments (45,957) (45,957) ------- ------- Consolidated $2,348,694 $2,474,938 ========== ========== M.D.C. HOLDINGS, INC. Selected Financial Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- SELECTED FINANCIAL DATA General and Administrative Expenses Homebuilding $15,906 $21,703 $(5,797) -27% Financial Services and Other 4,845 7,045 $(2,200) -31% Corporate (1) 17,053 15,179 $1,874 12% ------ ------ ------ Total $37,804 $43,927 $(6,123) -14% ======= ======= ======= SG&A as a % of Home Sales Revenue Homebuilding Segments 16.6% 14.8% 1.8% Corporate Segment (1) 9.2% 4.0% 5.2% Depreciation and Amortization (2) $2,831 $9,346 $(6,515) -70% Home Gross Margins (3) 18.0% 11.7% 6.3% Interest in Home Cost of Sales as a % of Home Sales Revenue -4.7% -4.4% -0.3% Cash Provided by (Used in) Operating Activities $12,325 $91,570 $(79,245) -87% Investing Activities $(48,747) $(73) $(48,674) N/A Financing Activities $11,616 $11,471 $145 1% Corporate and Homebuilding Interest Interest capitalized, beginning of period $36,050 $52,167 $(16,117) -31% Interest capitalized, net of interest expense $4,700 $14,464 $(9,764) -68% Previously capitalized interest included in home cost of sales $(8,661) $(16,957) $8,296 -49% Interest capitalized, end of period $32,089 $49,674 $(17,585) -35% Six Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- SELECTED FINANCIAL DATA General and Administrative Expenses Homebuilding $31,685 $52,405 $(20,720) -40% Financial Services and Other 9,343 14,068 $(4,725) -34% Corporate (1) 35,162 28,647 $6,515 23% ------ ------ ------ Total $76,190 $95,120 $(18,930) -20% ======= ======= ======== SG&A as a % of Home Sales Revenue Homebuilding Segments 17.5% 16.3% 1.2% Corporate Segment (1) 10.0% 3.9% 6.1% Depreciation and Amortization (2) $6,724 $17,958 $(11,234) -63% Home Gross Margins (3) 16.8% 11.6% 5.2% Interest in Home Cost of Sales as a % of Home Sales Revenue -4.7% -4.4% -0.3% Cash Provided by (Used in) Operating Activities $251,818 $322,303 $(70,485) -22% Investing Activities $33,943 $(116) $34,059 N/A Financing Activities $(30,664) $(30,133) $(531) 2% Corporate and Homebuilding Interest Interest capitalized, beginning of period $39,239 $53,487 $(14,248) -27% Interest capitalized, net of interest expense $9,544 $28,917 $(19,373) -67% Previously capitalized interest included in home cost of sales $(16,694) $(32,730) $16,036 -49% Interest capitalized, end of period $32,089 $49,674 $(17,585) -35% (1) Includes related party expenses. (2) Includes depreciation and amortization of long-lived assets and amortization of deferred marketing costs. (3) Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue. During the three months ended June 30, 2009 and June 30, 2008, we closed homes on lots for which we had previously recorded $47.4 million and $63.6 million, respectively, of asset impairments. During the six months ended June 30, 2009 and June 30, 2008, we closed homes on lots for which we had previously recorded $90.6 million and $113.6 million, respectively, of asset impairments. M.D.C. HOLDINGS, INC. Selected Financial Data (Dollars in thousands) (Unaudited) Three Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage loans originated $142,191 $213,042 $(70,851) -33% Principal amount of mortgage loans brokered $6,030 $46,599 $(40,569) -87% Capture Rate 82% 66% 16% Including brokered loans 85% 79% 6% Mortgage products (% of mortgage loans originated) Fixed rate 100% 98% 2% Adjustable rate - interest only 0% 1% -1% Adjustable rate - other 0% 1% -1% Prime loans (4) 27% 45% -18% Government loans (5) 73% 55% 18% Six Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage loans originated $268,698 $377,785 $(109,087) -29% Principal amount of mortgage loans brokered $18,995 $106,170 $(87,175) -82% Capture Rate 80% 62% 18% Including brokered loans 85% 77% 8% Mortgage products (% of mortgage loans originated) Fixed rate 100% 97% 3% Adjustable rate - interest only 0% 1% -1% Adjustable rate - other 0% 2% -2% Prime loans (4) 34% 53% -19% Government loans (5) 66% 47% 19% (4) Prime loans generally are defined as loans with Fair, Isaac and Company ("FICO") scores greater than 620 and that comply with the documentation standards of the government sponsored enterprise guidelines. (5) Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs. M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (unaudited) June 30, December 31, June 30, 2009 2008 2008 ---- ---- ---- HOMES COMPLETED OR UNDER CONSTRUCTION Unsold Home Under Construction - Final 82 451 298 Unsold Home Under Construction - Frame 248 329 490 Unsold Home Under Construction - Foundation 122 41 167 --- -- --- Total Unsold Homes Under Construction 452 821 955 Sold Homes Under Construction 664 409 1,230 Model Homes 246 387 533 --- --- --- Homes Completed or Under Construction 1,362 1,617 2,718 ===== ===== ===== LOTS OWNED (excluding homes completed or under construction) Arizona 1,247 1,458 2,089 California 618 839 911 Nevada 936 1,111 1,045 --- ----- ----- West 2,801 3,408 4,045 ----- ----- ----- Colorado 2,541 2,597 2,749 Utah 568 642 771 --- --- --- Mountain 3,109 3,239 3,520 ----- ----- ----- Delaware Valley 101 115 133 Maryland 169 176 236 Virginia 210 241 297 --- --- --- East 480 532 666 --- --- --- Florida 213 257 507 Illinois 141 141 156 --- --- --- Other Homebuilding 354 398 663 --- --- --- Total 6,744 7,577 8,894 ===== ===== ===== M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (unaudited) June 30, December 31, June 30, 2009 2008 2008 ---- ---- ---- LOTS CONTROLLED UNDER OPTION Arizona 416 472 417 California 145 149 153 Nevada 95 95 - --- --- --- West 656 716 570 --- --- --- Colorado 157 184 241 Utah 12 - - --- --- --- Mountain 169 184 241 --- --- --- Delaware Valley - 40 135 Maryland 409 355 321 Virginia 251 592 1,054 --- --- ----- East 660 987 1,510 --- --- ----- Florida 486 471 461 Illinois - - - --- --- - Other Homebuilding 486 471 461 --- --- --- Total 1,971 2,358 2,782 ===== ===== ===== NON-REFUNDABLE OPTION DEPOSITS Cash $5,295 $5,145 $5,429 Letters of Credit 3,383 4,358 4,459 ----- ----- ----- Total Non-Refundable Option Deposits $8,678 $9,503 $9,888 ====== ====== ======= M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (unaudited) Three Months Ended June 30, Change ----------- ---------- 2009 2008 Amount % ---- ---- ------ --- HOMES CLOSED (UNITS) Arizona 181 380 (199) -52% California 52 163 (111) -68% Nevada 114 249 (135) -54% --- --- ---- West 347 792 (445) -56% --- --- ---- Colorado 113 171 (58) -34% Utah 56 78 (22) -28% --- --- --- Mountain 169 249 (80) -32% --- --- --- Delaware Valley 11 20 (9) -45% Maryland 39 46 (7) -15% Virginia 45 74 (29) -39% --- --- --- East 95 140 (45) -32% --- --- --- Florida 44 89 (45) -51% Illinois 10 22 (12) -55% --- --- --- Other Homebuilding 54 111 (57) -51% --- --- --- Total 665 1,292 (627) -49% === ===== ==== AVERAGE SELLING PRICES PER HOME CLOSED Arizona $197.9 $220.5 $(22.6) -10% California 414.0 389.1 24.9 6% Colorado 341.7 346.5 (4.8) -1% Delaware Valley 393.6 400.3 (6.7) -2% Florida 227.1 248.1 (21.0) -8% Illinois 312.1 314.5 (2.4) -1% Maryland 381.7 439.8 (58.1) -13% Nevada 210.3 248.0 (37.7) -15% Utah 301.5 336.1 (34.6) -10% Virginia 451.3 465.6 (14.3) -3% Company Average $279.0 $295.7 $(16.7) -6% Six Months Ended June 30, Change ----------- ---------- 2009 2008 Amount % ---- ---- ------ --- HOMES CLOSED (UNITS) Arizona 353 731 (378) -52% California 111 317 (206) -65% Nevada 188 429 (241) -56% --- --- ---- West 652 1,477 (825) -56% --- ----- ---- Colorado 204 288 (84) -29% Utah 96 160 (64) -40% --- --- --- Mountain 300 448 (148) -33% --- --- ---- Delaware Valley 30 51 (21) -41% Maryland 65 95 (30) -32% Virginia 86 139 (53) -38% --- --- --- East 181 285 (104) -36% --- --- ---- Florida 93 184 (91) -49% Illinois 19 34 (15) -44% --- --- --- Other Homebuilding 112 218 (106) -49% --- --- ---- Total 1,245 2,428 (1,183) -49% ===== ===== ====== AVERAGE SELLING PRICES PER HOME CLOSED Arizona $195.3 $226.1 $(30.8) -14% California 405.6 416.1 (10.5) -3% Colorado 346.4 349.7 (3.3) -1% Delaware Valley 413.4 415.8 (2.4) -1% Florida 223.0 240.5 (17.5) -7% Illinois 316.0 344.9 (28.9) -8% Maryland 405.2 469.3 (64.1) -14% Nevada 207.4 247.7 (40.3) -16% Utah 300.3 338.1 (37.8) -11% Virginia 478.5 459.9 18.6 4% Company Average $283.2 $303.9 $(20.7) -7% M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (unaudited) Three Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- ORDERS FOR HOMES, NET (UNITS) Arizona 214 294 (80) -27% California 112 148 (36) -24% Nevada 153 195 (42) -22% --- --- --- West 479 637 (158) -25% --- --- ---- Colorado 206 117 89 76% Utah 86 44 42 95% --- --- --- Mountain 292 161 131 81% --- --- --- Delaware Valley 19 14 5 36% Maryland 54 40 14 35% Virginia 61 42 19 45% --- --- --- East 134 96 38 40% --- --- --- Florida 64 67 (3) -4% Illinois 8 (2) 10 -500% --- --- --- Other Homebuilding 72 65 7 11% --- --- --- Total 977 959 18 2% === === === Estimated Value of Orders for Homes, net $289,000 $279,000 $10,000 4% Estimated Average Selling Price of Orders for Homes, net $295.8 $290.9 $4.9 2% Cancellation Rate (6) 20% 43% -23% Six Months Ended June 30, Change -------------- ---------- 2009 2008 Amount % ---- ---- ------ --- ORDERS FOR HOMES, NET (UNITS) Arizona 372 576 (204) -35% California 187 307 (120) -39% Nevada 248 376 (128) -34% --- --- ---- West 807 1,259 (452) -36% --- ----- ---- Colorado 340 280 60 21% Utah 127 88 39 44% --- --- --- Mountain 467 368 99 27% --- --- --- Delaware Valley 33 36 (3) -8% Maryland 91 87 4 5% Virginia 117 112 5 4% --- --- --- East 241 235 6 3% --- --- --- Florida 122 182 (60) -33% Illinois 16 13 3 23% --- --- --- Other Homebuilding 138 195 (57) -29% --- --- --- Total 1,653 2,057 (404) -20% ===== ===== ==== Estimated Value of Orders for Homes, net $480,000 $603,000 $(123,000) -20% Estimated Average Selling Price of Orders for Homes, net $290.4 $293.1 $(2.8) -1% Cancellation Rate (6) 22% 43% -21% (6) We define "Cancellation Rate" as the approximate number of cancelled home order contracts during a reporting period as a percent of total home orders received during such reporting period. M.D.C. HOLDINGS, INC. Homebuilding Operational Data (Dollars in thousands) (unaudited) June 30, December 31, June 30, 2009 2008 2008 ---- ---- ---- BACKLOG (UNITS) Arizona 177 158 437 California 125 49 193 Nevada 113 53 254 --- -- --- West 415 260 884 --- --- --- Colorado 208 72 205 Utah 73 42 106 -- -- --- Mountain 281 114 311 --- --- --- Delaware Valley 30 27 42 Maryland 84 58 118 Virginia 67 36 73 -- -- -- East 181 121 233 --- --- --- Florida 64 35 123 Illinois - 3 25 -- -- --- Other Homebuilding 64 38 148 -- -- --- Total 941 533 1,576 === === ===== Backlog Estimated Sales Value $295,000 $173,000 $522,000 ======== ======== ======== Estimated Average Selling Price of Homes in Backlog $313.5 $324.6 $331.2 ====== ====== ====== ACTIVE SUBDIVISIONS Arizona 27 44 57 California 10 18 21 Nevada 19 24 29 --- --- --- West 56 86 107 --- --- --- Colorado 43 49 48 Utah 18 22 23 --- --- --- Mountain 61 71 71 --- --- --- Delaware Valley 1 3 2 Maryland 9 11 14 Virginia 7 12 17 --- --- --- East 17 26 33 --- --- --- Florida 8 7 12 Illinois - 1 4 --- --- --- Other Homebuilding 8 8 16 --- --- --- Total 142 191 227 === === === Average for quarter ended 160 202 244 === === === DATASOURCE: M.D.C. Holdings, Inc. CONTACT: Robert N. Martin, Investor Relations of M.D.C. Holdings, Inc., +1-720-977-3431, Web Site: http://www.mdcholdings.com/

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