DENVER, July 28, 2020 /PRNewswire/ -- M.D.C
Holdings, Inc. (NYSE: MDC), one of the nation's leading
homebuilders, announced results for the quarter ended June 30, 2020.
Larry A. Mizel, MDC's Chairman
and Chief Executive Officer, stated, "MDC experienced a remarkable
turnaround in the second quarter of 2020, as order activity
rebounded sharply from the initial weeks of the pandemic. Unit net
orders for the quarter rose 5% year-over-year and increased 53% for
the month of June, with our sales efforts gaining momentum as the
quarter progressed. We also generated strong revenue growth and
margin expansion in the quarter, resulting in net income of
$84.4 million, or $1.31 per diluted share."
Mr. Mizel continued, "Our results this quarter reflect the
favorable industry dynamics in place today, including a low
interest rate environment, a lack of available supply and a highly
motivated buyer. They also reflect our continued shift in focus to
the more affordable segments of the market and the benefits of our
build-to-order strategy, which caters to the wants and needs of a
large segment of the buying population. We believe that providing
homebuyers with flexibility and choice at an affordable price is a
winning strategy for our company. Given the favorable market
conditions we are experiencing, we now believe that we may achieve
as many as 8,000 home deliveries for the 2020 full year, which
would be a 15% increase from the prior year."
Mr. Mizel concluded, "While there are still many uncertainties
regarding the pandemic's impact on our industry and the broader
economy, MDC is well positioned for the future given our seasoned
leadership team, our strategic focus and our balance sheet
strength. I want to thank all of our team members who have done
such an excellent job adapting to this new reality and who have
been vigilant in providing a safe environment for our employees,
suppliers and customers."
2020 Second Quarter
Highlights and Comparisons to 2019 Second Quarter
|
• Home sale
revenues increased 21% to $886.8 million from $732.8
million
|
|
• Unit
deliveries up 25% to 1,900
|
|
• Average
selling price of deliveries down 4% to $466,700
|
• Homebuilding
pretax income increased 38% to $84.9 million from $61.6
million
|
|
• Gross margin
from home sales increased 70 basis points to 20.2% from
19.5%
|
|
• Selling,
general and administrative expenses as a percentage of home sale
revenues ("SG&A rate") improved by 90 basis points to
10.4%
|
• Financial
services pretax income increased 110% to $26.7 million vs. $12.7
million
|
|
• Loan capture
rate increased 800 basis points to 69%
|
• Net income of
$84.4 million, or $1.31 per diluted share, up 55% from $54.6
million or $0.86 per diluted share
|
|
• Effective tax
rate of 24.4% vs. 26.6%
|
• Dollar value
of net new orders increased 8% to $1.04 billion from $967.9
million
|
|
• Unit net orders
increased 5% to 2,390
|
|
• Average selling
price of net orders up 3%
|
• Dollar value
of ending backlog up 23% to $2.37 billion from $1.93
billion
|
|
• Unit backlog
increased 20% to 5,143
|
|
• Average selling
price of homes in backlog up 3%
|
|
|
June 30, 2020
Financial Position Highlights
|
• Total
liquidity of $1.52 billion
|
|
• Total cash
and cash equivalents of $544.9 million
|
|
• $964.1
million of availability under homebuilding line of credit ($1.0
billion facility size; maturity of December 2023)
|
• No senior
note maturities until 2024
|
|
|
2020 Outlook and
Other Selected Information1
|
• Home
deliveries for the 2020 third quarter between 1,900 and
2,100
|
|
• Average
selling price for 2020 third quarter unit deliveries exceeding
$460,000
|
|
• Gross margin
from home sales for the 2020 third quarter of approximately 20%
(excluding impairments and warranty adjustments)
|
• Full year
2020 home deliveries between 7,700 and 8,000
|
• Active
subdivision count at June 30, 2020 of 192, up 3%
year-over-year
|
• Lots
controlled of 25,027 at June 30, 2020, up 6%
year-over-year
|
• Quarterly
cash dividend of thirty-three cents ($0.33) per share declared on
July 27, 2020, up 10% from prior year
|
|
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 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
Form 10-Q for the quarter ended June 30, 2020, 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
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
thousands, except per share amounts)
|
Homebuilding:
|
|
|
|
|
|
|
|
Home sale
revenues
|
$
|
886,758
|
|
|
$
|
732,844
|
|
|
$
|
1,583,843
|
|
|
$
|
1,380,122
|
|
Home cost of
sales
|
(707,789)
|
|
|
(590,172)
|
|
|
(1,266,436)
|
|
|
(1,114,724)
|
|
Inventory
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
(610)
|
|
Total cost of
sales
|
(707,789)
|
|
|
(590,172)
|
|
|
(1,266,436)
|
|
|
(1,115,334)
|
|
Gross
profit
|
178,969
|
|
|
142,672
|
|
|
317,407
|
|
|
264,788
|
|
Selling, general and
administrative expenses
|
(92,316)
|
|
|
(82,712)
|
|
|
(181,637)
|
|
|
(164,973)
|
|
Interest and other
income
|
720
|
|
|
2,764
|
|
|
2,609
|
|
|
5,155
|
|
Other
expense
|
(2,452)
|
|
|
(1,110)
|
|
|
(3,789)
|
|
|
(2,301)
|
|
Homebuilding pretax
income
|
84,921
|
|
|
61,614
|
|
|
134,590
|
|
|
102,669
|
|
|
|
|
|
|
|
|
|
Financial
Services:
|
|
|
|
|
|
|
|
Revenues
|
32,964
|
|
|
18,597
|
|
|
54,850
|
|
|
36,001
|
|
Expenses
|
(12,178)
|
|
|
(9,574)
|
|
|
(23,107)
|
|
|
(18,531)
|
|
Other income
(expense), net
|
5,931
|
|
|
3,694
|
|
|
(6,133)
|
|
|
9,798
|
|
Financial services
pretax income
|
26,717
|
|
|
12,717
|
|
|
25,610
|
|
|
27,268
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
111,638
|
|
|
74,331
|
|
|
160,200
|
|
|
129,937
|
|
Provision for income
taxes
|
(27,242)
|
|
|
(19,738)
|
|
|
(39,044)
|
|
|
(34,794)
|
|
Net income
|
$
|
84,396
|
|
|
$
|
54,593
|
|
|
$
|
121,156
|
|
|
$
|
95,143
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
84,396
|
|
|
$
|
54,593
|
|
|
$
|
121,156
|
|
|
$
|
95,143
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.33
|
|
|
$
|
0.88
|
|
|
$
|
1.92
|
|
|
$
|
1.55
|
|
Diluted
|
$
|
1.31
|
|
|
$
|
0.86
|
|
|
$
|
1.87
|
|
|
$
|
1.50
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
63,015,827
|
|
|
61,336,404
|
|
|
62,755,310
|
|
|
61,138,982
|
|
Diluted
|
64,080,940
|
|
|
63,323,267
|
|
|
64,538,835
|
|
|
63,023,149
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.66
|
|
|
$
|
0.60
|
|
M.D.C. HOLDINGS,
INC.
Consolidated
Balance Sheets
(Unaudited)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(Dollars in
thousands, except
per share amounts)
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
|
482,702
|
|
|
$
|
424,186
|
|
Restricted
cash
|
15,668
|
|
|
14,279
|
|
Trade and other
receivables
|
88,279
|
|
|
65,829
|
|
Inventories:
|
|
|
|
Housing completed or
under construction
|
1,270,300
|
|
|
1,036,191
|
|
Land and land under
development
|
1,235,598
|
|
|
1,330,384
|
|
Total
inventories
|
2,505,898
|
|
|
2,366,575
|
|
Property and
equipment, net
|
62,516
|
|
|
60,414
|
|
Deferred tax asset,
net
|
19,828
|
|
|
21,768
|
|
Prepaid and other
assets
|
69,484
|
|
|
78,358
|
|
Total homebuilding
assets
|
3,244,375
|
|
|
3,031,409
|
|
Financial
Services:
|
|
|
|
Cash and cash
equivalents
|
62,218
|
|
|
35,747
|
|
Marketable
securities
|
—
|
|
|
56,747
|
|
Mortgage loans
held-for-sale, net
|
173,567
|
|
|
197,021
|
|
Other
assets
|
25,775
|
|
|
17,432
|
|
Total financial
services assets
|
261,560
|
|
|
306,947
|
|
Total
Assets
|
$
|
3,505,935
|
|
|
$
|
3,338,356
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
|
95,018
|
|
|
$
|
87,364
|
|
Accrued and other
liabilities
|
278,543
|
|
|
245,940
|
|
Revolving credit
facility
|
10,000
|
|
|
15,000
|
|
Senior notes,
net
|
1,037,062
|
|
|
989,422
|
|
Total homebuilding
liabilities
|
1,420,623
|
|
|
1,337,726
|
|
Financial
Services:
|
|
|
|
Accounts payable and
accrued liabilities
|
70,033
|
|
|
68,529
|
|
Mortgage repurchase
facility
|
142,094
|
|
|
149,616
|
|
Total financial
services liabilities
|
212,127
|
|
|
218,145
|
|
Total
Liabilities
|
1,632,750
|
|
|
1,555,871
|
|
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; 63,384,866 and 62,574,961
issued and outstanding at June 30, 2020 and December 31,
2019, respectively
|
634
|
|
|
626
|
|
Additional
paid-in-capital
|
1,359,985
|
|
|
1,348,733
|
|
Retained
earnings
|
512,566
|
|
|
433,126
|
|
Total Stockholders'
Equity
|
1,873,185
|
|
|
1,782,485
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
3,505,935
|
|
|
$
|
3,338,356
|
|
M.D.C. HOLDINGS,
INC.
Consolidated
Statement of Cash Flows
(Unaudited)
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
84,396
|
|
|
$
|
54,593
|
|
|
$
|
121,156
|
|
|
$
|
95,143
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
5,488
|
|
|
4,132
|
|
|
9,928
|
|
|
8,383
|
|
Depreciation and
amortization
|
6,375
|
|
|
5,063
|
|
|
11,527
|
|
|
9,941
|
|
Inventory
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
610
|
|
Net (gain) loss on
marketable equity securities
|
(4,983)
|
|
|
(2,327)
|
|
|
8,285
|
|
|
(7,167)
|
|
Deferred income tax
expense
|
831
|
|
|
5,063
|
|
|
1,962
|
|
|
7,759
|
|
Net changes in assets
and liabilities:
|
|
|
-
|
|
|
|
|
Trade and other
receivables
|
(21,834)
|
|
|
13,735
|
|
|
(23,445)
|
|
|
(36)
|
|
Mortgage loans
held-for-sale, net
|
(39,646)
|
|
|
1,473
|
|
|
23,454
|
|
|
39,874
|
|
Housing completed or
under construction
|
(54,956)
|
|
|
(120,665)
|
|
|
(233,829)
|
|
|
(118,528)
|
|
Land and land under
development
|
65,867
|
|
|
42,934
|
|
|
94,918
|
|
|
24,438
|
|
Prepaid and other
assets
|
9,669
|
|
|
(5,291)
|
|
|
1,209
|
|
|
(4,206)
|
|
Accounts payable and
accrued liabilities
|
41,670
|
|
|
2,607
|
|
|
40,539
|
|
|
(546)
|
|
Net cash provided by
operating activities
|
92,877
|
|
|
1,317
|
|
|
55,704
|
|
|
55,665
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
(1,022)
|
|
|
(331)
|
|
|
(10,804)
|
|
|
(5,116)
|
|
Sales of marketable
securities
|
49,990
|
|
|
320
|
|
|
59,266
|
|
|
5,057
|
|
Purchases of property
and equipment
|
(6,456)
|
|
|
(7,474)
|
|
|
(12,968)
|
|
|
(13,860)
|
|
Net cash provided by
(used in) investing activities
|
42,512
|
|
|
(7,485)
|
|
|
35,494
|
|
|
(13,919)
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Payments on mortgage
repurchase facility, net
|
33,350
|
|
|
(1,817)
|
|
|
(7,522)
|
|
|
(33,776)
|
|
Payments on
homebuilding line of credit, net
|
(5,000)
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Repayment of senior
notes
|
—
|
|
|
—
|
|
|
(250,000)
|
|
|
—
|
|
Proceeds from issuance
of senior notes
|
—
|
|
|
—
|
|
|
298,050
|
|
|
—
|
|
Dividend
payments
|
(20,914)
|
|
|
(18,521)
|
|
|
(41,682)
|
|
|
(35,636)
|
|
Issuance of shares
under stock-based compensation programs, net
|
(6,862)
|
|
|
10,241
|
|
|
1,332
|
|
|
17,328
|
|
Net cash provided by
(used in) financing activities
|
574
|
|
|
(10,097)
|
|
|
(4,822)
|
|
|
(52,084)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
135,963
|
|
|
(16,265)
|
|
|
86,376
|
|
|
(10,338)
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
Beginning of
period
|
424,625
|
|
|
476,066
|
|
|
474,212
|
|
|
470,139
|
|
End of
period
|
$
|
560,588
|
|
|
$
|
459,801
|
|
|
$
|
560,588
|
|
|
$
|
459,801
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
482,702
|
|
|
$
|
390,061
|
|
|
$
|
482,702
|
|
|
$
|
390,061
|
|
Restricted
cash
|
15,668
|
|
|
12,911
|
|
|
15,668
|
|
|
12,911
|
|
Financial
Services:
|
|
|
-
|
|
|
|
|
Cash and cash
equivalents
|
62,218
|
|
|
56,829
|
|
|
62,218
|
|
|
56,829
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
560,588
|
|
|
$
|
459,801
|
|
|
$
|
560,588
|
|
|
$
|
459,801
|
|
New Home
Deliveries
|
|
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
(Dollars in
thousands)
|
West
|
1,017
|
|
|
$
|
490,117
|
|
|
$
|
481.9
|
|
|
785
|
|
|
$
|
384,530
|
|
|
$
|
489.8
|
|
|
30
|
%
|
|
27
|
%
|
|
(2)
|
%
|
Mountain
|
608
|
|
|
316,666
|
|
|
520.8
|
|
|
534
|
|
|
287,476
|
|
|
538.3
|
|
|
14
|
%
|
|
10
|
%
|
|
(3)
|
%
|
East
|
275
|
|
|
79,975
|
|
|
290.8
|
|
|
195
|
|
|
60,838
|
|
|
312.0
|
|
|
41
|
%
|
|
31
|
%
|
|
(7)
|
%
|
Total
|
1,900
|
|
|
$
|
886,758
|
|
|
$
|
466.7
|
|
|
1,514
|
|
|
$
|
732,844
|
|
|
$
|
484.0
|
|
|
25
|
%
|
|
21
|
%
|
|
(4)
|
%
|
|
|
Six Months Ended June
30,
|
|
2020
|
|
2019
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
(Dollars in
thousands)
|
West
|
1,888
|
|
|
$
|
895,615
|
|
|
$
|
474.4
|
|
|
1,537
|
|
|
$
|
754,088
|
|
|
$
|
490.6
|
|
|
23
|
%
|
|
19
|
%
|
|
(3)
|
%
|
Mountain
|
1,043
|
|
|
539,524
|
|
|
517.3
|
|
|
943
|
|
|
496,668
|
|
|
526.7
|
|
|
11
|
%
|
|
9
|
%
|
|
(2)
|
%
|
East
|
516
|
|
|
148,704
|
|
|
288.2
|
|
|
392
|
|
|
129,366
|
|
|
330.0
|
|
|
32
|
%
|
|
15
|
%
|
|
(13)
|
%
|
Total
|
3,447
|
|
|
$
|
1,583,843
|
|
|
$
|
459.5
|
|
|
2,872
|
|
|
$
|
1,380,122
|
|
|
$
|
480.5
|
|
|
20
|
%
|
|
15
|
%
|
|
(4)
|
%
|
Net New
Orders
|
|
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
|
% 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
|
1,309
|
|
|
$
|
574,996
|
|
|
$
|
439.3
|
|
|
4.62
|
|
1,246
|
|
|
$
|
550,742
|
|
|
$
|
442.0
|
|
|
4.46
|
|
5
|
%
|
|
4
|
%
|
|
(1)
|
%
|
|
4
|
%
|
Mountain
|
758
|
|
|
362,228
|
|
|
477.9
|
|
|
3.99
|
|
690
|
|
|
318,275
|
|
|
461.3
|
|
|
3.56
|
|
10
|
%
|
|
14
|
%
|
|
4
|
%
|
|
12
|
%
|
East
|
323
|
|
|
106,436
|
|
|
329.5
|
|
|
3.53
|
|
337
|
|
|
98,843
|
|
|
293.3
|
|
|
4.36
|
|
(4)
|
%
|
|
8
|
%
|
|
12
|
%
|
|
(19)
|
%
|
Total
|
2,390
|
|
|
$
|
1,043,660
|
|
|
$
|
436.7
|
|
|
4.23
|
|
2,273
|
|
|
$
|
967,860
|
|
|
$
|
425.8
|
|
|
4.13
|
|
5
|
%
|
|
8
|
%
|
|
3
|
%
|
|
2
|
%
|
|
|
Six Months Ended June
30,
|
|
2020
|
|
2019
|
|
% 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
|
2,691
|
|
|
$
|
1,262,330
|
|
|
$
|
469.1
|
|
|
4.88
|
|
2,211
|
|
|
$
|
1,003,236
|
|
|
$
|
453.7
|
|
|
4.15
|
|
22
|
%
|
|
26
|
%
|
|
3
|
%
|
|
18
|
%
|
Mountain
|
1,451
|
|
|
722,197
|
|
|
497.7
|
|
|
3.76
|
|
1,409
|
|
|
669,523
|
|
|
475.2
|
|
|
3.53
|
|
3
|
%
|
|
8
|
%
|
|
5
|
%
|
|
7
|
%
|
East
|
647
|
|
|
206,911
|
|
|
319.8
|
|
|
3.58
|
|
609
|
|
|
182,141
|
|
|
299.1
|
|
|
4.33
|
|
6
|
%
|
|
14
|
%
|
|
7
|
%
|
|
(17)
|
%
|
Total
|
4,789
|
|
|
$
|
2,191,438
|
|
|
$
|
457.6
|
|
|
4.28
|
|
4,229
|
|
|
$
|
1,854,900
|
|
|
$
|
438.6
|
|
|
3.94
|
|
13
|
%
|
|
18
|
%
|
|
4
|
%
|
|
9
|
%
|
|
*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
|
|
Six Months
Ended
|
|
June 30,
|
|
%
|
|
June 30,
|
|
%
|
|
June 30,
|
|
%
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
West
|
96
|
|
|
97
|
|
|
(1)
|
%
|
|
95
|
|
|
94
|
|
|
1
|
%
|
|
92
|
|
|
89
|
|
|
3
|
%
|
Mountain
|
63
|
|
|
65
|
|
|
(3)
|
%
|
|
63
|
|
|
65
|
|
|
(3)
|
%
|
|
64
|
|
|
66
|
|
|
(3)
|
%
|
East
|
33
|
|
|
25
|
|
|
32
|
%
|
|
31
|
|
|
26
|
|
|
19
|
%
|
|
30
|
|
|
23
|
|
|
30
|
%
|
Total
|
192
|
|
|
187
|
|
|
3
|
%
|
|
189
|
|
|
185
|
|
|
2
|
%
|
|
186
|
|
|
178
|
|
|
4
|
%
|
Backlog
|
|
|
June 30,
|
|
2020
|
|
2019
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
(Dollars in
thousands)
|
West
|
2,826
|
|
|
$
|
1,336,251
|
|
|
$
|
472.8
|
|
|
2,197
|
|
|
$
|
1,016,327
|
|
|
$
|
462.6
|
|
|
29
|
%
|
|
31
|
%
|
|
2
|
%
|
Mountain
|
1,619
|
|
|
$
|
816,559
|
|
|
$
|
504.4
|
|
|
1,509
|
|
|
$
|
739,921
|
|
|
$
|
490.3
|
|
|
7
|
%
|
|
10
|
%
|
|
3
|
%
|
East
|
698
|
|
|
$
|
220,362
|
|
|
$
|
315.7
|
|
|
587
|
|
|
$
|
173,436
|
|
|
$
|
295.5
|
|
|
19
|
%
|
|
27
|
%
|
|
7
|
%
|
Total
|
5,143
|
|
|
$
|
2,373,172
|
|
|
$
|
461.4
|
|
|
4,293
|
|
|
$
|
1,929,684
|
|
|
$
|
449.5
|
|
|
20
|
%
|
|
23
|
%
|
|
3
|
%
|
Homes Completed or
Under Construction (WIP lots)
|
|
June 30,
|
|
%
|
|
2020
|
|
2019
|
|
Change
|
Unsold:
|
|
|
|
|
|
Completed
|
109
|
|
|
96
|
|
|
14
|
%
|
Under
construction
|
191
|
|
|
236
|
|
|
(19)
|
%
|
Total unsold started
homes
|
300
|
|
|
332
|
|
|
(10)
|
%
|
Sold homes under
construction or completed
|
3,573
|
|
|
3,023
|
|
|
18
|
%
|
Model homes under
construction or completed
|
502
|
|
|
457
|
|
|
10
|
%
|
Total homes completed
or under construction
|
4,375
|
|
|
3,812
|
|
|
15
|
%
|
Lots Owned and
Optioned (including homes completed or under
construction)
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Total
% Change
|
West
|
9,364
|
|
|
2,619
|
|
|
11,983
|
|
|
8,611
|
|
|
2,446
|
|
|
11,057
|
|
|
8
|
%
|
Mountain
|
6,076
|
|
|
2,667
|
|
|
8,743
|
|
|
6,457
|
|
|
2,741
|
|
|
9,198
|
|
|
(5)
|
%
|
East
|
2,260
|
|
|
2,041
|
|
|
4,301
|
|
|
2,085
|
|
|
1,267
|
|
|
3,352
|
|
|
28
|
%
|
Total
|
17,700
|
|
|
7,327
|
|
|
25,027
|
|
|
17,153
|
|
|
6,454
|
|
|
23,607
|
|
|
6
|
%
|
Selling, General
and Administrative Expenses
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
|
(Dollars in
thousands)
|
General and
administrative expenses
|
$
|
40,419
|
|
|
$
|
39,326
|
|
|
$
|
1,093
|
|
|
$
|
85,508
|
|
|
$
|
81,898
|
|
|
$
|
3,610
|
|
General and
administrative expenses as a percentage of home sale
revenues
|
4.6
|
%
|
|
5.4
|
%
|
|
-80 bps
|
|
|
5.4
|
%
|
|
5.9
|
%
|
|
-50 bps
|
|
Marketing
expenses
|
$
|
22,657
|
|
|
$
|
19,513
|
|
|
$
|
3,144
|
|
|
$
|
44,103
|
|
|
$
|
37,809
|
|
|
$
|
6,294
|
|
Marketing expenses
as a percentage of home sale revenues
|
2.6
|
%
|
|
2.7
|
%
|
|
-10 bps
|
|
|
2.8
|
%
|
|
2.7
|
%
|
|
10 bps
|
|
Commissions
expenses
|
$
|
29,240
|
|
|
$
|
23,873
|
|
|
$
|
5,367
|
|
|
$
|
52,026
|
|
|
$
|
45,266
|
|
|
$
|
6,760
|
|
Commissions
expenses as a percentage of home sale
revenues
|
3.3
|
%
|
|
3.3
|
%
|
|
0 bps
|
|
|
3.3
|
%
|
|
3.3
|
%
|
|
0 bps
|
|
Total selling,
general and administrative expenses
|
$
|
92,316
|
|
|
$
|
82,712
|
|
|
$
|
9,604
|
|
|
$
|
181,637
|
|
|
$
|
164,973
|
|
|
$
|
16,664
|
|
Total selling,
general and administrative expenses as a percentage
of home sale revenues
|
10.4
|
%
|
|
11.3
|
%
|
|
-90 bps
|
|
|
11.5
|
%
|
|
12.0
|
%
|
|
-50 bps
|
|
Capitalized
Interest
|
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(Dollars in
thousands)
|
Homebuilding interest
incurred
|
$
|
15,094
|
|
|
$
|
15,980
|
|
|
$
|
31,628
|
|
|
$
|
32,011
|
|
Less: Interest
capitalized
|
(15,094)
|
|
|
(15,980)
|
|
|
(31,628)
|
|
|
(32,011)
|
|
Homebuilding interest
expensed
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Interest capitalized,
beginning of period
|
$
|
59,077
|
|
|
$
|
56,947
|
|
|
$
|
55,310
|
|
|
$
|
54,845
|
|
Plus: Interest
capitalized during period
|
15,094
|
|
|
15,980
|
|
|
31,628
|
|
|
32,011
|
|
Less: Previously
capitalized interest included in home cost of sales
|
(17,242)
|
|
|
(14,734)
|
|
|
(30,009)
|
|
|
(28,663)
|
|
Interest capitalized,
end of period
|
$
|
56,929
|
|
|
$
|
58,193
|
|
|
$
|
56,929
|
|
|
$
|
58,193
|
|
View original
content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-second-quarter-2020-results-301100728.html
SOURCE M.D.C. Holdings, Inc.