M.D.C. HOLDINGS, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8-K - M.D.C. HOLDINGS, INC.	mdc20170131_8k.htm

Exhibit 99.1

M.D.C. HOLDINGS, INC.

News Release

M.D.C. HOLDINGS ANNOUNCES 2016 FOURTH QUARTER AND FULL YEAR RESULTS

DENVER, COLORADO, Wednesday, February 1, 2017. M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the fourth quarter and full year ended December 31, 2016.

2016 Fourth Quarter Highlights and Comparisons to 2015 Fourth Quarter

●

Net income up 79% to $40.4 million, or $0.78 per diluted share*, from $22.6 million or $0.44 per diluted share*

●

Home sale revenues up 29% to $715.8 million from $554.4 million

●

Selling, general and administrative expenses as a percentage of home sale revenues (“SG&A rate”) improved 200 basis points from 11.5% to 9.5%

●

Dollar value of net new orders up 5% to $473.4 million from $450.5 million

●

Ending backlog dollar value up 31% to $1.38 billion from $1.05 billion

●

Industry-leading dividend payment of $0.25 per share declared in January 2017

5% stock dividend paid in December 2016

2016 Full Year Highlights and Comparisons to 2015 Full Year

●

Net income up 57% to $103.2 million, or $2.00 per diluted share* vs. $65.8 million, or $1.28 per diluted share*

●

Home sale revenues of $2.26 billion, up 22%

●

SG&A rate improved 110 basis points to 11.1%

●

Dollar value of net new orders up 12% to $2.56 billion from $2.29 billion

*All per share amounts have been adjusted for the 5% stock dividend declared and paid in the 2016 fourth quarter.

Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “We are very pleased with our 2016 fourth quarter results, highlighted by a 79% increase in our net income. Our solid backlog to start the quarter enabled us to increase our home sale revenues by 29% year-over-year, driving a 200 basis point improvement in our SG&A rate. These strong fourth quarter results pushed our full year return on equity to 8.1% for 2016, a 280 basis points improvement over the prior year.”

Mr. Mizel continued, “We are proud that our success in 2016 was achieved without losing focus on our balance sheet, which features a unique combination of low leverage, carefully managed exposure to homebuilding assets, and liquidity exceeding $900 million. The combination of strong balance sheet metrics and accelerating returns gave us the confidence to continue to reward shareholders during 2016 through our industry-leading dividend program, not only with the payment of our long-standing cash dividend, but also with a special 5% stock dividend in the fourth quarter.”

M.D.C. HOLDINGS, INC.

Mr. Mizel concluded, “Early in 2016, we announced the roll-out of a more affordable collection of home plans. This new product has been well-received by potential homebuyers, which helps to reinforce our belief that the first-time homebuyer can drive growth in new home sales nationwide for the industry in the coming year. Based on our positive experience thus far, expanding the offering of our more affordable home plans will continue to be a strategic focus of the Company in 2017. With the dollar value of our backlog up 31% year-over-year and encouraging macroeconomic drivers such as increasing personal income levels, high employment levels and increasing consumer confidence, we are optimistic as we enter the 2017 spring selling season. However, this optimism is somewhat tempered by an increased risk for a rise in interest rates, which already increased significantly during the final quarter of 2016, and uncertainty surrounding potential changes in government policy following the 2016 Presidential Election.”

Homebuilding

Home sale revenues for the 2016 fourth quarter increased 29% to $715.8 million, primarily driven by a 24% increase in deliveries, which was mostly the result of a 33% year-over-year increase in our homes in beginning backlog.

For the 2016 fourth quarter, our gross margin from home sales was 16.1%, unchanged from the same period a year ago. The 2016 fourth quarter included $2.4 million in adjustments to increase our warranty accrual and $3.9 of inventory impairments while the 2015 fourth quarter included $0.4 million in adjustments to increase our warranty accrual and $5.3 of inventory impairments.

Selling, general and administrative (“SG&A”) expenses for the 2016 fourth quarter were $67.9 million, up $4.3 million from $63.6 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenues (“SG&A rate”) improved by 200 basis points to 9.5% for the 2016 fourth quarter from 11.5% in the 2015 fourth quarter. This decrease in our SG&A rate was primarily the result of our increase in home sale revenues.

The dollar value of net new orders for the 2016 fourth quarter increased 5% year-over-year to $473.4 million. The improvement was the result of a 5% increase in the average selling price of net new orders due primarily to a shift in mix to higher priced communities.

Our backlog value at the end of the 2016 fourth quarter was up 31% year-over-year to $1.38 billion. The improvement was due mostly to a 24% increase in the number of units in backlog, which was primarily the result of (1) an increase in net new order activity over the last twelve months for most of our markets, (2) a higher percentage of our backlog coming from build-to-order sales, which are generally in backlog for a longer period of time and, (3) limited subcontractor availability, which has extended our cycle times in most of our larger markets.

Financial Services

Income before taxes for our financial services operations for the 2016 fourth quarter was $11.4 million, a $2.3 million increase from $9.1 million in the 2015 fourth quarter. This improvement was primarily due to our mortgage operations segment, which had (1) year-over-year increases in the dollar value of loans locked, originated, and sold, and (2) higher gains on loans locked and sold.

M.D.C. HOLDINGS, INC.

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 190,000 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, Northern Colorado, 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, South Florida and Seattle. MDC'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. MDC’s stock is traded on the New York Stock Exchange under the symbol "MDC" For more information, visit www.mdcholdings.com.

M.D.C. HOLDINGS, INC.

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 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 changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including 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 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-K for the year ended December 31, 2016, 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.

Contact: Kevin McCarty

Vice President of Finance and Corporate Controller

1-866-424-3395 / (720) 977-3395

IR@mdch.com

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended						Year Ended
	December 31,						December 31,
	2016			2015			2016			2015
	(Dollars in thousands, except per share amounts)
	(Unaudited)						(Unaudited)
Homebuilding:
Home sale revenues	$	715,816		$	554,432		$	2,257,153		$	1,847,889
Land sale revenues		770			10,521			5,700			12,337
Total home and land sale revenues		716,586			564,953			2,262,853			1,860,226
Home cost of sales		(597,018	)		(459,787	)		(1,884,391	)		(1,539,396	)
Land cost of sales		(669	)		(10,667	)		(4,866	)		(12,611	)
Inventory impairments		(3,873	)		(5,292	)		(10,173	)		(9,993	)
Total cost of sales		(601,560	)		(475,746	)		(1,899,430	)		(1,562,000	)
Gross margin		115,026			89,207			363,423			298,226
Selling, general and administrative expenses		(67,919	)		(63,560	)		(250,540	)		(226,317	)
Interest and other income		1,654			1,297			7,012			6,709
Other expense		(984	)		(1,669	)		(3,447	)		(4,208	)
Other-than-temporary impairment of marketable securities		(136	)		(1,793	)		(1,070	)		(3,969	)
Homebuilding pretax income		47,641			23,482			115,378			70,441

Financial Services:
Revenues		19,743			13,958			63,991			48,810
Expenses		(9,181	)		(5,742	)		(30,920	)		(21,572	)
Interest and other income		1,057			860			3,705			3,745
Other-than-temporary impairment of marketable securities		(262	)		-			(373	)		-
Financial services pretax income		11,357			9,076			36,403			30,983

Income before income taxes		58,998			32,558			151,781			101,424
Provision for income taxes		(18,622	)		(9,963	)		(48,570	)		(35,633	)
Net income	$	40,376		$	22,595		$	103,211		$	65,791

Other comprehensive income (loss) related to available for sale securities, net of tax		2,485			4,538			6,356			5,260
Comprehensive income	$	42,861		$	27,133		$	109,567		$	71,051

Earnings per share
Basic	$	0.78		$	0.44		$	2.01		$	1.28
Diluted	$	0.78		$	0.44		$	2.00		$	1.28

Weighted average common shares outstanding
Basic		51,294,826			51,227,950			51,286,942			51,202,616
Diluted		51,476,735			51,399,721			51,447,147			51,415,580

Dividends declared per share	$	0.24		$	0.24		$	0.95		$	0.95

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

	December 31,		December 31,
	2016		2015
	(Dollars in thousands, except
	per share amounts)
ASSETS
Homebuilding:
Cash and cash equivalents	$	259,087	$	144,342
Marketable securities		59,770		92,387
Restricted cash		3,778		3,750
Trade and other receivables		42,492		23,314
Inventories:
Housing completed or under construction		874,199		747,036
Land and land under development		884,615		1,016,926
Total inventories		1,758,814		1,763,962
Property and equipment, net		28,041		28,226
Deferred tax assets, net		74,888		99,107
Metropolitan district bond securities (related party)		30,162		25,911
Prepaid and other assets		60,463		65,394
Total homebuilding assets		2,317,495		2,246,393
Financial Services:
Cash and cash equivalents		23,822		36,646
Marketable securities		36,436		11,307
Mortgage loans held-for-sale, net		138,774		115,670
Other assets		12,062		5,883
Total financial services assets		211,094		169,506
Total Assets	$	2,528,589	$	2,415,899
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	42,088	$	40,472
Accrued liabilities		144,566		122,886
Revolving credit facility		15,000		15,000
Senior notes, net		841,646		840,524
Total homebuilding liabilities		1,043,300		1,018,882
Financial Services:
Accounts payable and accrued liabilities		50,734		52,114
Mortgage repurchase facility		114,485		88,611
Total financial services liabilities		165,219		140,725
Total Liabilities		1,208,519		1,159,607
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; 51,485,090 and 48,888,424 issued and outstanding at December 31, 2016 and December 31, 2015, respectively		515		489
Additional paid-in-capital		983,532		915,746
Retained earnings		313,952		324,342
Accumulated other comprehensive income		22,071		15,715
Total Stockholders' Equity		1,320,070		1,256,292
Total Liabilities and Stockholders' Equity	$	2,528,589	$	2,415,899

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

	Three Months Ended						Year Ended
	December 31,						December 31,
	2016			2015			2016			2015
	(Dollars in thousands)
	(Unaudited)						(Unaudited)
Operating Activities:
Net income	$	40,376		$	22,595		$	103,211		$	65,791
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense		841			3,477			7,477			10,066
Depreciation and amortization		1,430			985			5,132			4,069
Inventory impairments		3,873			5,292			10,173			9,993
Other-than-temporary impairment of marketable securities		398			1,793			1,443			3,969
Net realized loss (gain) on sale of marketable securities		(163	)		785			(1,074	)		911
Amortization of discount / premiums on marketable debt securities		-			-			-			100
Deferred income tax expense		4,788			8,551			16,145			33,333
Net changes in assets and liabilities:
Restricted cash		843			1,050			(28	)		(934	)
Trade and other receivables		1,255			5,822			(20,424	)		5,247
Mortgage loans held-for-sale		(20,785	)		(47,037	)		(23,104	)		(27,278	)
Housing completed or under construction		101,214			74,290			(128,525	)		(15,551	)
Land and land under development		(16,509	)		(63,583	)		124,622			(89,388	)
Prepaid expenses and other assets		3,537			424			(1,036	)		(7,648	)
Accounts payable and accrued liabilities		3,722			12,257			21,905			7,535
Net cash provided by operating activities		124,820			26,701			115,917			215

Investing Activities:
Purchases of marketable securities		(19,778	)		(6,936	)		(48,050	)		(53,822	)
Maturities of marketable securities		-			-			-			1,510
Sales of marketable securities		4,863			6,255			61,736			101,165
Purchases of property and equipment		(603	)		(661	)		(4,468	)		(1,491	)
Net cash provided by (used in) investing activities		(15,518	)		(1,342	)		9,218			47,362

Financing Activities:
Advances on mortgage repurchase facility, net		22,474			44,856			25,874			27,789
Dividend payments		(12,325	)		(12,222	)		(49,088	)		(48,868	)
Proceeds from exercise of stock options		-			-			-			665
Net cash provided by (used in) financing activities		10,149			32,634			(23,214	)		(20,414	)

Net increase in cash and cash equivalents		119,451			57,993			101,921			27,163
Cash and cash equivalents:
Beginning of year		163,458			122,995			180,988			153,825
End of year	$	282,909		$	180,988		$	282,909		$	180,988

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

	Three Months Ended December 31,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		207	$	62,159	$	300.3		210	$	60,129	$	286.3		(1	)%		3	%		5	%
California		295		176,818		599.4		220		127,196		578.2		34	%		39	%		4	%
Nevada		251		88,580		352.9		171		67,691		395.9		47	%		31	%		(11	)%
Washington		111		54,963		495.2		80		35,983		449.8		39	%		53	%		10	%
West		864		382,520		442.7		681		290,999		427.3		27	%		31	%		4	%
Colorado		424		207,774		490.0		349		160,794		460.7		21	%		29	%		6	%
Utah		74		27,441		370.8		54		19,194		355.4		37	%		43	%		4	%
Mountain		498		235,215		472.3		403		179,988		446.6		24	%		31	%		6	%
Maryland		65		29,337		451.3		47		24,168		514.2		38	%		21	%		(12	)%
Virginia		69		36,822		533.7		46		22,838		496.5		50	%		61	%		7	%
Florida		86		31,922		371.2		98		36,439		371.8		(12	)%		(12	)%		(0	)%
East		220		98,081		445.8		191		83,445		436.9		15	%		18	%		2	%
Total		1,582	$	715,816	$	452.5		1,275	$	554,432	$	434.8		24	%		29	%		4	%

	Year Ended December 31,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		789	$	232,511	$	294.7		753	$	220,140	$	292.4		5	%		6	%		1	%
California		807		495,934		614.5		706		370,603		524.9		14	%		34	%		17	%
Nevada		683		238,441		349.1		575		215,479		374.7		19	%		11	%		(7	)%
Washington		345		161,628		468.5		270		109,038		403.8		28	%		48	%		16	%
West		2,624		1,128,514		430.1		2,304		915,260		397.2		14	%		23	%		8	%
Colorado		1,369		671,308		490.4		1,192		553,573		464.4		15	%		21	%		6	%
Utah		219		80,679		368.4		149		52,794		354.3		47	%		53	%		4	%
Mountain		1,588		751,987		473.5		1,341		606,367		452.2		18	%		24	%		5	%
Maryland		243		114,079		469.5		215		103,148		479.8		13	%		11	%		(2	)%
Virginia		262		135,394		516.8		216		105,593		488.9		21	%		28	%		6	%
Florida		337		127,179		377.4		314		117,521		374.3		7	%		8	%		1	%
East		842		376,652		447.3		745		326,262		437.9		13	%		15	%		2	%
Total		5,054	$	2,257,153	$	446.6		4,390	$	1,847,889	$	420.9		15	%		22	%		6	%

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

	Three Months Ended December 31,
	2016								2015								% 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)
Arizona		106	$	31,937	$	301.3		1.23		154	$	43,448	$	282.1		1.64		(31	)%		(26	)%		7	%		(25	)%
California		149		99,903		670.5		2.42		160		101,300		633.1		2.81		(7	)%		(1	)%		6	%		(14	)%
Nevada		161		57,324		356.0		2.50		128		41,560		324.7		2.44		26	%		38	%		10	%		2	%
Washington		78		40,210		515.5		1.86		80		38,612		482.7		1.98		(3	)%		4	%		7	%		(6	)%
West		494		229,374		464.3		1.94		522		224,920		430.9		2.14		(5	)%		2	%		8	%		(9	)%
Colorado		284		138,194		486.6		2.89		262		122,119		466.1		2.28		8	%		13	%		4	%		27	%
Utah		37		15,841		428.1		1.37		40		14,343		358.6		1.72		(8	)%		10	%		19	%		(20	)%
Mountain		321		154,035		479.9		2.56		302		136,462		451.9		2.19		6	%		13	%		6	%		17	%
Maryland		37		17,509		473.2		1.17		56		26,253		468.8		1.74		(34	)%		(33	)%		1	%		(33	)%
Virginia		62		32,753		528.3		2.76		64		33,159		518.1		2.25		(3	)%		(1	)%		2	%		23	%
Florida		104		39,705		381.8		1.98		76		29,694		390.7		1.72		37	%		34	%		(2	)%		15	%
East		203		89,967		443.2		1.91		196		89,106		454.6		1.87		4	%		1	%		(3	)%		2	%
Total		1,018	$	473,376	$	465.0		2.09		1,020	$	450,488	$	441.7		2.10		(0	)%		5	%		5	%		(0	)%

	Year Ended December 31,
	2016								2015								% 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)
Arizona		790	$	243,358	$	308.0		2.21		843	$	241,192	$	286.1		2.07		(6	)%		1	%		8	%		7	%
California		946		582,460		615.7		3.88		856		506,445		591.6		3.55		11	%		15	%		4	%		9	%
Nevada		795		282,198		355.0		3.09		615		227,560		370.0		3.62		29	%		24	%		(4	)%		(15	)%
Washington		403		199,011		493.8		2.57		394		173,071		439.3		2.50		2	%		15	%		12	%		3	%
West		2,934		1,307,027		445.5		2.89		2,708		1,148,268		424.0		2.77		8	%		14	%		5	%		4	%
Colorado		1,511		730,924		483.7		3.69		1,435		687,695		479.2		2.97		5	%		6	%		1	%		24	%
Utah		215		84,455		392.8		2.18		217		79,203		365.0		2.58		(1	)%		7	%		8	%		(16	)%
Mountain		1,726		815,379		472.4		3.39		1,652		766,898		464.2		2.91		4	%		6	%		2	%		16	%
Maryland		245		116,813		476.8		1.73		237		116,010		489.5		2.02		3	%		1	%		(3	)%		(14	)%
Virginia		272		143,680		528.2		2.75		227		114,713		505.3		2.12		20	%		25	%		5	%		30	%
Florida		429		176,862		412.3		2.14		379		143,594		378.9		2.18		13	%		23	%		9	%		(2	)%
East		946		437,355		462.3		2.15		843		374,317		444.0		2.12		12	%		17	%		4	%		1	%
Total		5,606	$	2,559,761	$	456.6		2.85		5,203	$	2,289,483	$	440.0		2.68		8	%		12	%		4	%		6	%

* Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Active Subdivisions

								Average Active Subdivisions
	Active Subdivisions							Three Months Ended							Year Ended
	December 31,				%			December 31,				%			December 31,				%
	2016		2015		Change			2016		2015		Change			2016		2015		Change
Arizona		28		32		(13	)%		29		31		(6	)%		30		34		(12	)%
California		20		20		0	%		21		19		11	%		20		20		0	%
Nevada		21		20		5	%		21		17		24	%		21		14		50	%
Washington		14		14		0	%		14		14		0	%		13		13		0	%
West		83		86		(3	)%		85		81		5	%		84		81		4	%
Colorado		38		40		(5	)%		33		38		(13	)%		34		40		(15	)%
Utah		9		7		29	%		9		8		13	%		8		7		14	%
Mountain		47		47		0	%		42		46		(9	)%		42		47		(11	)%
Maryland		10		11		(9	)%		10		11		(9	)%		12		10		20	%
Virginia		7		9		(22	)%		8		9		(11	)%		8		9		(11	)%
Florida		17		14		21	%		18		15		20	%		17		14		21	%
East		34		34		0	%		36		35		3	%		37		33		12	%
Total		164		167		(2	)%		163		162		1	%		163		161		1	%

Backlog

	At December 31,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		322	$	104,899	$	325.8		321	$	89,464	$	278.7		0	%		17	%		17	%
California		481		314,305		653.4		342		220,755		645.5		41	%		42	%		1	%
Nevada		307		108,720		354.1		195		67,901		348.2		57	%		60	%		2	%
Washington		237		120,305		507.6		179		80,134		447.7		32	%		50	%		13	%
West		1,347		648,229		481.2		1,037		458,254		441.9		30	%		41	%		9	%
Colorado		964		466,565		484.0		822		390,635		475.2		17	%		19	%		2	%
Utah		104		41,689		400.9		108		38,549		356.9		(4	)%		8	%		12	%
Mountain		1,068		508,254		475.9		930		429,184		461.5		15	%		18	%		3	%
Maryland		92		45,160		490.9		90		43,317		481.3		2	%		4	%		2	%
Virginia		111		60,701		546.9		101		52,622		521.0		10	%		15	%		5	%
Florida		266		119,305		448.5		174		70,837		407.1		53	%		68	%		10	%
East		469		225,166		480.1		365		166,776		456.9		28	%		35	%		5	%
Total		2,884	$	1,381,649	$	479.1		2,332	$	1,054,214	$	452.1		24	%		31	%		6	%

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

	December 31,
	2016		2015		% Change
Unsold:
Completed		115		189		(39	)%
Under construction		279		334		(16	)%
Total unsold started homes		394		523		(25	)%
Sold homes under construction or completed		2,186		1,697		29	%
Model homes under construction or completed		302		281		7	%
Total homes completed or under construction		2,882		2,501		15	%

Lots Owned and Optioned (including homes completed or under construction)

	December 31, 2016						December 31, 2015
	Lots Owned		Lots Optioned		Total		Lots Owned		Lots Optioned		Total		Total % Change
Arizona		1,521		287		1,808		1,735		201		1,936		(7	)%
California		1,702		298		2,000		1,759		352		2,111		(5	)%
Nevada		1,934		65		1,999		2,240		100		2,340		(15	)%
Washington		862		-		862		832		107		939		(8	)%
West		6,019		650		6,669		6,566		760		7,326		(9	)%
Colorado		3,982		1,683		5,665		4,086		832		4,918		15	%
Utah		306		30		336		442		-		442		(24	)%
Mountain		4,288		1,713		6,001		4,528		832		5,360		12	%
Maryland		221		62		283		368		219		587		(52	)%
Virginia		367		19		386		562		158		720		(46	)%
Florida		910		421		1,331		1,078		230		1,308		2	%
East		1,498		502		2,000		2,008		607		2,615		(24	)%
Total		11,805		2,865		14,670		13,102		2,199		15,301		(4	)%

M.D.C. HOLDINGS, INC.

Other Financial Data

Selling, General and Administrative Expense

	Three Months Ended December 31,									Year Ended December 31,
	2016			2015			Change			2016			2015			Change
	(Dollars in thousands)
General and administrative expenses	$	27,438		$	30,150		$	(2,712	)	$	118,076		$	112,134		$	5,942
General and administrative expenses as a percentage of home sale revenues		3.8	%		5.4	%		(160) bps			5.2	%		6.1	%		(90) bps

Marketing expenses	$	17,050		$	14,551		$	2,499		$	58,778		$	52,417		$	6,361
Marketing expenses as a percentage of home sale revenues		2.4	%		2.6	%		(20) bps			2.6	%		2.8	%		(20) bps

Commissions expenses	$	23,431		$	18,859		$	4,572		$	73,686		$	61,766		$	11,920
Commissions expenses as a percentage of home sale revenues		3.3	%		3.4	%		(10) bps			3.3	%		3.3	%		0 bps

Total selling, general and administrative expenses	$	67,919		$	63,560		$	4,359		$	250,540		$	226,317		$	24,223
Total selling, general and administrative expenses as a percentage of home sale revenues (SG&A Rate)		9.5	%		11.5	%		(200) bps			11.1	%		12.2	%		(110) bps

Capitalized Interest

	Three Months Ended						Year Ended
	December 31,						December 31,
	2016			2015			2016			2015
	(Dollars in thousands)
Homebuilding interest incurred	$	13,170		$	13,240		$	52,681		$	53,061
Less: Interest capitalized		(13,170	)		(13,240	)		(52,681	)		(53,061	)
Homebuilding interest expensed	$	-		$	-		$	-		$	-

Interest capitalized, beginning of period	$	74,415		$	79,244		$	77,541		$	79,231
Plus: Interest capitalized during period		13,170			13,240			52,681			53,061
Less: Previously capitalized interest included in home and land cost of sales		(19,500	)		(14,943	)		(62,137	)		(54,751	)
Interest capitalized, end of period	$	68,085		$	77,541		$	68,085		$	77,541

Attached files

Stock widget

Investing forum

M.D.C. HOLDINGS, INC. Reports