Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - M.D.C. HOLDINGS, INC. | d476885d8k.htm |
Exhibit 99.1
M.D.C. HOLDINGS, INC.
News Release
M.D.C. HOLDINGS ANNOUNCES 2012 FOURTH QUARTER RESULTS
DENVER, COLORADO, Thursday, January 31, 2013. 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,
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M.D.C. HOLDINGS, INC.
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.
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M.D.C. HOLDINGS, INC.
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
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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.
| Contact: |
Robert N. Martin | |
| Vice President of Finance | ||
| (720) 977-3431 | ||
| bob.martin@mdch.com |
| * | Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this release. |
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M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Homebuilding: |
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| Home sale revenues |
$ | 389,141 | $ | 230,732 | $ | 1,150,998 | $ | 805,164 | ||||||||
| Land sale revenues |
1,724 | 8,360 | 5,144 | 11,859 | ||||||||||||
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| Total home sale and land revenues |
390,865 | 239,092 | 1,156,142 | 817,023 | ||||||||||||
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| 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 | ) | ||||||||
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| Total cost of sales |
(325,897 | ) | (204,737 | ) | (979,048 | ) | (710,422 | ) | ||||||||
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| Gross margin |
64,968 | 34,355 | 177,094 | 106,601 | ||||||||||||
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| Selling, general and administrative expenses |
(44,160 | ) | (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 | ) | |||||||||
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| Homebuilding pretax income (loss) |
22,191 | (18,513 | ) | 32,617 | (110,628 | ) | ||||||||||
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| Financial Services: |
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| 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 | ||||||||||||
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| Financial services pretax income (loss) |
7,660 | (1,263 | ) | 28,498 | 3,156 | |||||||||||
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| Income (loss) before income taxes |
29,851 | (19,776 | ) | 61,115 | (107,472 | ) | ||||||||||
| Benefit (provision) for income taxes |
(181 | ) | 955 | 1,584 | 9,082 | |||||||||||
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| Net income (loss) |
$ | 29,670 | $ | (18,821 | ) | $ | 62,699 | $ | (98,390 | ) | ||||||
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| Other comprehensive income (loss): |
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| Unrealized gain related to available-for-sale securities |
1,133 | 6,781 | 12,078 | (12,124 | ) | |||||||||||
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| Comprehensive income (loss) |
$ | 30,803 | $ | (12,040 | ) | $ | 74,777 | $ | (110,514 | ) | ||||||
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| Earnings (loss) per share: |
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| Basic |
$ | 0.60 | $ | (0.40 | ) | $ | 1.29 | $ | (2.12 | ) | ||||||
| Diluted |
$ | 0.59 | $ | (0.40 | ) | $ | 1.28 | $ | (2.12 | ) | ||||||
| Weighted Average Common Shares Outstanding: |
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| 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 | ||||||||
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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
| December 31, | ||||||||
| 2012 | 2011 | |||||||
| (Dollars in thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Homebuilding: |
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| 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: |
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| Housing completed or under construction |
512,949 | 300,714 | ||||||
| Land and land under development |
489,572 | 505,338 | ||||||
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| 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 | ||||||
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| Total homebuilding assets |
1,759,445 | 1,716,864 | ||||||
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| Financial Services: |
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| 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 | ||||||
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| Total financial services assets |
185,996 | 141,861 | ||||||
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| Total Assets |
$ | 1,945,441 | $ | 1,858,725 | ||||
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| LIABILITIES AND EQUITY | ||||||||
| Homebuilding: |
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| Accounts payable |
$ | 73,055 | $ | 25,645 | ||||
| Accrued liabilities |
118,456 | 119,188 | ||||||
| Senior notes, net |
744,842 | 744,108 | ||||||
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| Total homebuilding liabilities |
936,353 | 888,941 | ||||||
| Financial Services: |
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| Accounts payable and accrued liabilities |
51,864 | 52,446 | ||||||
| Mortgage repurchase facility |
76,327 | 48,702 | ||||||
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| Total financial services liabilities |
128,191 | 101,148 | ||||||
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| Total Liabilities |
1,064,544 | 990,089 | ||||||
| Stockholders’ Equity |
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| 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 defecit) |
(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 | ) | |||||
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| Total Stockholders’ Equity |
880,897 | 868,636 | ||||||
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| Total Liabilities and Stockholders’ Equity |
$ | 1,945,441 | $ | 1,858,725 | ||||
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6
M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
| Three Months Ended December 31, |
Year Ended December 31, |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (Dollars in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Operating Activities: |
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| 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: |
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| 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: |
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| 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 | ) | |||||||||
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| Net cash provided by (used in) operating activities |
(58,364 | ) | 459 | (108,819 | ) | (80,284 | ) | |||||||||
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| Investing Activities: |
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| 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 | ) | ||||||||
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| Net cash provided by (used in) investing activities |
(14,712 | ) | 23,102 | (21,781 | ) | 404,264 | ||||||||||
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| Financing Activities: |
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| 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 | ||||||||||||
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| Net cash provided by (used in) financing activities |
(30,626 | ) | (247,701 | ) | (52,666 | ) | (552,844 | ) | ||||||||
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| Net increase (decrease) in cash and cash equivalents |
(103,702 | ) | (224,140 | ) | (183,266 | ) | (228,864 | ) | ||||||||
| Cash and cash equivalents: |
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| Beginning of period |
263,797 | 567,501 | 343,361 | 572,225 | ||||||||||||
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| End of period |
$ | 160,095 | $ | 343,361 | $ | 160,095 | $ | 343,361 | ||||||||
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7
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 |
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| (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 | % | ||||||||||||||||||||||||
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| West |
655 | 181,084 | 276.5 | 380 | 85,365 | 224.6 | 72 | % | 112 | % | 23 | % | ||||||||||||||||||||||||
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| 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 | % | ||||||||||||||||||||||||
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| Mountain |
343 | 118,625 | 345.8 | 258 | 84,255 | 326.6 | 33 | % | 41 | % | 6 | % | ||||||||||||||||||||||||
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| 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 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
8
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 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
9
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 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
10
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 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
11
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 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
12