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.	mdc20180130_8k.htm

Exhibit 99.1

News Release

M.D.C. HOLDINGS ANNOUNCES 2017 FOURTH QUARTER AND FULL YEAR RESULTS

DENVER, COLORADO, Thursday, February 1, 2018. M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter and full year ended December 31, 2017.

Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “Our strong performance in the 2017 full year is evidenced not only by double-digit percentage increases for home sale revenues and net income, but also by the steps we took to strengthen our financial position, enhance shareholder value, and prepare for future growth.”

Mr. Mizel continued, “During the year, we added $150 million to our senior notes due January 2043, bringing the total amount outstanding to $500 million. In doing so, we pushed our average senior note maturity to almost 15 years, a strong advantage as interest rates start to rise. In addition, we expanded the capacity under our unsecured line of credit from $550 million to $700 million and extended its maturity to December 2022. We ended the year with liquidity of $1.25 billion, an increase of nearly 40% over the prior year, which provides us with additional resources to fund our future growth. Already, our plans for expansion are well underway, as shown by the nearly 10,400 lots we approved during 2017 for purchase, which was more than double our total in 2016.”

Mr. Mizel concluded, “We ended the year on a strong note, with fourth quarter net home orders surging 23% year-over-year. We believe the robust demand is not only the result of solid economic fundamentals, but also our focus on affordable product. At the center of our emphasis on affordability is our Seasons^TM collection, which accounted for 15% of our fourth quarter net orders. Because of our strong sales performance, our yearend backlog value is 16% higher than a year ago, setting the stage for growth in 2018. Given our positive outlook and strong financial position, we enhanced our industry-leading dividend program with an 8% stock dividend in the fourth quarter and a 20% increase in our cash dividend declared at the start of the 2018 first quarter, reflecting our confidence in the prospects for growth against the backdrop of solid industry conditions.”

Net income for the 2017 fourth quarter was $24.6 million, or $0.43 per diluted share, versus $40.4 million, or $0.72 per diluted share* for the 2016 fourth quarter. Net income for the 2017 full year was $141.8 million, or $2.48 per diluted share, versus $103.2 million, or $1.85 per diluted share*, for the 2016 full year. Net income and diluted earnings per share for the fourth quarter and year ended December 31, 2017 were impacted by the following tax-related items:

●

The enactment of the Tax Cuts and Jobs Act in December 2017, which required a remeasurement of the Company's deferred tax assets, resulted in a charge of $10.0 million for both the 2017 fourth quarter and full year.

●

The Company's January 1, 2017 adoption of Accounting Standard Update 2016-09, which resulted in the Company recognizing an income tax charge of $2.8 million related to tax deficiencies from stock option expirations for both the 2017 fourth quarter and full year.

●

The Company realized income tax benefits of $3.5 million for the 2017 fourth quarter and $7.2 million for the 2017 full year from the release of a portion of its deferred tax asset valuation allowance relating to the sale and valuation of certain assets.

Additional 2017 Fourth Quarter Highlights and Comparisons to 2016 Fourth Quarter

●

Home sale revenues of $702.6 million versus $715.8 million

Home deliveries of 1,556 versus 1,582

Approximately 35 home deliveries delayed to later periods due to Weyerhaeuser joist issue (net of Weyerhaeuser closings originally scheduled for the third quarter that closed in the fourth quarter)

●

Gross margin from home sales percentage up 120 basis points to 17.3% from 16.1%

Impairments of $0.6 million vs. $3.9 million

●

Selling, general and administrative expenses as a percentage of home sale revenues (“SG&A rate”) of 11.6% versus 9.5%

Includes $5.4 million of infrequent charges to general and administrative expenses for accrual adjustments and tax planning strategies

●

Financial services segment income of $11.5 million versus $11.4 million

●

Dollar value of net new orders of $574.3 million, up 23% from $465.9 million

Absorption rate increased by 31%

●

Lot purchase approvals up 64% to 2,566 lots in 38 communities

Additional 2017 Full Year Highlights and Comparisons to 2016 Full Year

●

Home sale revenues up 11% to $2.50 billion from $2.26 billion

Home deliveries of 5,541 increased from 5,054

Approximately 120 home deliveries delayed to 2018 due to Weyerhaeuser joist issue

●

Gross margin from home sales percentage up 50 basis points from 16.1% to 16.6%

●

Selling, general and administrative expenses as a percentage of home sale revenues (“SG&A rate”) of 11.5% versus 11.1%

●

Realized gains from the sale of investments of $54.0 million versus $1.1 million

●

Financial services segment income of $43.8 million versus $36.4 million

●

Dollar value of net new orders of $2.70 billion, up 6%

	●	Lot purchase approvals up more than 100% to 10,382 lots in 144 communities
	●	Pretax return on equity improved 510 basis points to 16.9%

2018 Outlook – Selected Information

●

Backlog dollar value at 12/31/2017 up 16% year-over-year to $1.60 billion

Gross margin from home sales percentage in backlog at 12/31/2017 exceeds 2017 fourth quarter closing gross profit margin of 17.3%

Backlog conversion ratio (home deliveries divided by beginning backlog) for Q1 2018 estimated to be in the 38% to 40% range

●

Active subdivision count at 12/31/2017 of 151, down 8% year-over-year

Targeting a 10% year-over-year increase in active subdivision count from 151 at 12/31/2017 to at least 166 at 12/31/2018

	●	Lots controlled of 19,312 at 12/31/2017, up 32% year-over-year
	●	Quarterly dividend of $0.30 ($1.20 annualized) declared in January 2018, up 20% sequentially
	●	Preliminary estimate for full year 2018 effective tax rate of 25% to 27%, excluding impact of any potential discrete items

*All per share amounts have been adjusted for the 8% stock dividend declared and paid in the 2017 fourth quarter.

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 195,000 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, South Florida, 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 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, 2017, 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,
	2017			2016			2017			2016
	(Dollars in thousands, except per share amounts)
	(Unaudited)						(Unaudited)
Homebuilding:
Home sale revenues	$	702,649		$	715,816		$	2,498,695		$	2,257,153
Land sale revenues		1,609			770			4,547			5,700
Total home and land sale revenues		704,258			716,586			2,503,242			2,262,853
Home cost of sales		(580,667	)		(597,018	)		(2,073,833	)		(1,884,391	)
Land cost of sales		(1,768	)		(669	)		(4,440	)		(4,866	)
Inventory impairments		(620	)		(3,873	)		(10,010	)		(10,173	)
Total cost of sales		(583,055	)		(601,560	)		(2,088,283	)		(1,899,430	)
Gross margin		121,203			115,026			414,959			363,423
Selling, general and administrative expenses		(81,379	)		(67,919	)		(287,488	)		(250,540	)
Interest and other income		1,614			1,586			7,714			6,033
Net realized gains from the sales of marketable securities		-			68			17,775			979
Realized gain from the sale of metropolitan district bond securities (related party)		-			-			35,847			-
Other expense		(1,182	)		(984	)		(2,817	)		(3,447	)
Other-than-temporary impairment of marketable securities		-			(136	)		(51	)		(1,070	)
Homebuilding pretax income		40,256			47,641			185,939			115,378

Financial Services:
Revenues		19,856			19,743			74,372			63,991
Expenses		(9,287	)		(9,181	)		(34,534	)		(30,920	)
Interest and other income		1,048			1,057			4,190			3,705
Other-than-temporary impairment of marketable securities		(75	)		(262	)		(235	)		(373	)
Financial services pretax income		11,542			11,357			43,793			36,403

Income before income taxes		51,798			58,998			229,732			151,781
Provision for income taxes		(27,246	)		(18,622	)		(87,897	)		(48,570	)
Net income	$	24,552		$	40,376		$	141,835		$	103,211

Other comprehensive income (loss) related to available for sale securities, net of tax		1,166			2,485			(18,079	)		6,356
Comprehensive income	$	25,718		$	42,861		$	123,756		$	109,567

Earnings per share
Basic	$	0.44		$	0.73		$	2.54		$	1.86
Diluted	$	0.43		$	0.72		$	2.48		$	1.85

Weighted average common shares outstanding
Basic		55,802,550			55,398,412			55,663,908			55,389,898
Diluted		57,235,959			55,594,874			56,901,461			55,562,920

Dividends declared per share	$	0.23		$	0.22		$	0.93		$	0.88

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

	December 31,		December 31,
	2017		2016
	(Dollars in thousands, except
	per share amounts)
ASSETS
Homebuilding:
Cash and cash equivalents	$	472,957	$	259,087
Marketable securities		49,634		59,770
Restricted cash		8,812		3,778
Trade and other receivables		53,362		42,492
Inventories:
Housing completed or under construction		936,685		874,199
Land and land under development		893,051		884,615
Total inventories		1,829,736		1,758,814
Property and equipment, net		26,439		28,041
Deferred tax assets, net		41,480		74,888
Metropolitan district bond securities (related party)		-		30,162
Prepaid and other assets		75,666		60,463
Total homebuilding assets		2,558,086		2,317,495
Financial Services:
Cash and cash equivalents		32,471		23,822
Marketable securities		42,004		36,436
Mortgage loans held-for-sale, net		138,114		138,774
Other assets		9,617		12,062
Total financial services assets		222,206		211,094
Total Assets	$	2,780,292	$	2,528,589
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	39,655	$	42,088
Accrued liabilities		166,312		144,566
Revolving credit facility		15,000		15,000
Senior notes, net		986,597		841,646
Total homebuilding liabilities		1,207,564		1,043,300
Financial Services:
Accounts payable and accrued liabilities		53,101		50,734
Mortgage repurchase facility		112,340		114,485
Total financial services liabilities		165,441		165,219
Total Liabilities		1,373,005		1,208,519
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; 56,123,228 and 51,485,090 issued and outstanding at December 31, 2017 and December 31, 2016, respectively		561		515
Additional paid-in-capital		1,144,570		983,532
Retained earnings		258,164		313,952
Accumulated other comprehensive income		3,992		22,071
Total Stockholders' Equity		1,407,287		1,320,070
Total Liabilities and Stockholders' Equity	$	2,780,292	$	2,528,589

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

	Three Months Ended						Year Ended
	December 31,						December 31,
	2017			2016			2017			2016
	(Dollars in thousands)
	(Unaudited)						(Unaudited)
Operating Activities:
Net income	$	24,552		$	40,376		$	141,835		$	103,211
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense		2,757			841			5,857			7,477
Depreciation and amortization		1,116			1,430			5,321			5,132
Inventory impairments		620			3,873			10,010			10,173
Other-than-temporary impairment of marketable securities		75			398			286			1,443
Net realized loss (gain) on sale of marketable securities		-			(163	)		(18,122	)		(1,074	)
Gain on sale of metropolitan district bond securities (related party)		-			-			(35,847	)		-
Deferred income tax expense		21,992			4,788			44,787			16,145
Net changes in assets and liabilities:
Restricted cash		(89	)		843			(5,034	)		(28	)
Trade and other receivables		(13,882	)		1,255			(13,763	)		(20,424	)
Mortgage loans held-for-sale		(48,310	)		(20,785	)		660			(23,104	)
Housing completed or under construction		32,449			101,214			(69,548	)		(128,525	)
Land and land under development		(30,055	)		(16,509	)		(10,169	)		124,622
Prepaid expenses and other assets		(1,892	)		3,537			(13,121	)		(1,036	)
Accounts payable and accrued liabilities		6,975			3,722			22,320			21,905
Net cash provided by (used in) operating activities		(3,692	)		124,820			65,472			115,917

Investing Activities:
Purchases of marketable securities		(49,635	)		(19,778	)		(67,239	)		(48,050	)
Sales of marketable securities		-			4,863			83,315			61,736
Proceeds from sale of metropolitan district bond securities (related party)		-			-			44,253			-
Purchases of property and equipment		(622	)		(603	)		(2,539	)		(4,468	)
Net cash provided by (used in) investing activities		(50,257	)		(15,518	)		57,790			9,218

Financing Activities:
Advances (payments) on mortgage repurchase facility, net		47,237			22,474			(2,145	)		25,874
Proceeds from issuance of senior notes		146,463			-			146,463			-
Dividend payments		(13,104	)		(12,325	)		(51,897	)		(49,088	)
Payments of deferred financing costs		(35	)		-			(2,665	)		-
Proceeds from exercise of stock options		998			-			9,501			-
Net cash provided by (used in) financing activities		181,559			10,149			99,257			(23,214	)

Net increase in cash and cash equivalents		127,610			119,451			222,519			101,921
Cash and cash equivalents:
Beginning of period		377,818			163,458			282,909			180,988
End of period	$	505,428		$	282,909		$	505,428		$	282,909

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

	Three Months Ended December 31,
	2017						2016						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		235	$	76,785	$	326.7		207	$	62,159	$	300.3		14	%		24	%		9	%
California		227		136,485		601.3		295		176,818		599.4		(23)	%		(23)	%		0	%
Nevada		228		79,608		349.2		251		88,580		352.9		(9)	%		(10)	%		(1)	%
Washington		120		63,550		529.6		111		54,963		495.2		8	%		16	%		7	%
West		810		356,428		440.0		864		382,520		442.7		(6)	%		(7)	%		(1)	%
Colorado		407		199,530		490.2		424		207,774		490.0		(4)	%		(4)	%		0	%
Utah		94		40,494		430.8		74		27,441		370.8		27	%		48	%		16	%
Mountain		501		240,024		479.1		498		235,215		472.3		1	%		2	%		1	%
Maryland		50		23,983		479.7		65		29,337		451.3		(23)	%		(18)	%		6	%
Virginia		66		33,258		503.9		69		36,822		533.7		(4)	%		(10)	%		(6)	%
Florida		129		48,956		379.5		86		31,922		371.2		50	%		53	%		2	%
East		245		106,197		433.5		220		98,081		445.8		11	%		8	%		(3)	%
Total		1,556	$	702,649	$	451.6		1,582	$	715,816	$	452.5		(2)	%		(2)	%		(0)	%

	Year Ended December 31,
	2017						2016						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		821	$	260,043	$	316.7		789	$	232,511	$	294.7		4	%		12	%		7	%
California		889		540,459		607.9		807		495,934		614.5		10	%		9	%		(1)	%
Nevada		870		302,911		348.2		683		238,441		349.1		27	%		27	%		(0)	%
Washington		410		212,656		518.7		345		161,628		468.5		19	%		32	%		11	%
West		2,990		1,316,069		440.2		2,624		1,128,514		430.1		14	%		17	%		2	%
Colorado		1,471		709,741		482.5		1,369		671,308		490.4		7	%		6	%		(2)	%
Utah		220		91,903		417.7		219		80,679		368.4		0	%		14	%		13	%
Mountain		1,691		801,644		474.1		1,588		751,987		473.5		6	%		7	%		0	%
Maryland		190		89,853		472.9		243		114,079		469.5		(22)	%		(21)	%		1	%
Virginia		237		125,690		530.3		262		135,394		516.8		(10)	%		(7)	%		3	%
Florida		433		165,439		382.1		337		127,179		377.4		28	%		30	%		1	%
East		860		380,982		443.0		842		376,652		447.3		2	%		1	%		(1)	%
Total		5,541	$	2,498,695	$	450.9		5,054	$	2,257,153	$	446.6		10	%		11	%		1	%

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

	Three Months Ended December 31,
	2017								2016								% 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		187	$	59,958	$	320.6		2.35		106	$	31,380	$	296.0		1.23		76	%		91	%		8	%		91	%
California		230		141,477		615.1		3.52		149		98,158		658.8		2.42		54	%		44	%		(7)	%		45	%
Nevada		171		64,138		375.1		2.92		161		56,618		351.7		2.50		6	%		13	%		7	%		17	%
Washington		63		34,165		542.3		3.11		78		39,911		511.7		1.86		(19)	%		(14)	%		6	%		67	%
West		651		299,738		460.4		2.91		494		226,067		457.6		1.94		32	%		33	%		1	%		50	%
Colorado		381		189,238		496.7		2.63		284		136,139		479.4		2.89		34	%		39	%		4	%		(9)	%
Utah		32		15,468		483.4		1.52		37		15,524		419.6		1.37		(14)	%		(0)	%		15	%		11	%
Mountain		413		204,706		495.7		2.49		321		151,663		472.5		2.56		29	%		35	%		5	%		(3)	%
Maryland		28		12,178		434.9		2.20		37		16,971		458.7		1.17		(24)	%		(28)	%		(5)	%		88	%
Virginia		47		23,366		497.1		3.30		62		32,347		521.7		2.76		(24)	%		(28)	%		(5)	%		20	%
Florida		113		34,273		303.3		2.69		104		38,888		373.9		1.98		9	%		(12)	%		(19)	%		36	%
East		188		69,817		371.4		2.72		203		88,206		434.5		1.91		(7)	%		(21)	%		(15)	%		42	%
Total		1,252	$	574,261	$	458.7		2.73		1,018	$	465,936	$	457.7		2.09		23	%		23	%		0	%		31	%

	Year Ended December 31,
	2017								2016								% 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		825	$	273,047	$	331.0		2.66		790	$	241,584	$	305.8		2.21		4	%		13	%		8	%		20	%
California		957		611,067		638.5		4.05		946		577,840		610.8		3.88		1	%		6	%		5	%		4	%
Nevada		917		331,827		361.9		3.85		795		278,369		350.1		3.09		15	%		19	%		3	%		25	%
Washington		395		219,533		555.8		3.66		403		198,442		492.4		2.57		(2)	%		11	%		13	%		42	%
West		3,094		1,435,474		464.0		3.47		2,934		1,296,235		441.8		2.89		5	%		11	%		5	%		20	%
Colorado		1,673		826,488		494.0		3.20		1,511		727,192		481.3		3.69		11	%		14	%		3	%		(13)	%
Utah		203		93,387		460.0		2.20		215		83,343		387.6		2.18		(6	)%		12	%		19	%		1	%
Mountain		1,876		919,875		490.3		3.05		1,726		810,535		469.6		3.39		9	%		13	%		4	%		(10)	%
Maryland		150		66,994		446.6		1.73		245		114,250		466.3		1.73		(39)	%		(41)	%		(4)	%		0	%
Virginia		218		112,647		516.7		3.47		272		142,073		522.3		2.75		(20)	%		(21)	%		(1)	%		26	%
Florida		478		163,507		342.1		2.30		429		173,266		403.9		2.14		11	%		(6)	%		(15)	%		7	%
East		846		343,148		405.6		2.37		946		429,589		454.1		2.15		(11)	%		(20)	%		(11)	%		10	%
Total		5,816	$	2,698,497	$	464.0		3.12		5,606	$	2,536,359	$	452.4		2.85		4	%		6	%		3	%		9	%

* 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,				%
	2017		2016		Change			2017		2016		Change			2017		2016		Change
Arizona		26		28		(7)	%		27		29		(7)	%		26		30		(13)	%
California		22		20		10	%		22		21		5	%		20		20		0	%
Nevada		19		21		(10)	%		19		21		(10)	%		20		21		(5)	%
Washington		6		14		(57)	%		7		14		(50)	%		9		13		(31)	%
West		73		83		(12)	%		75		85		(12)	%		75		84		(11)	%
Colorado		49		38		29	%		48		33		45	%		44		34		29	%
Utah		7		9		(22)	%		7		9		(22)	%		8		8		0	%
Mountain		56		47		19	%		55		42		31	%		52		42		24	%
Maryland		3		10		(70)	%		3		10		(70)	%		7		12		(42)	%
Virginia		5		7		(29)	%		5		8		(38	)%		5		8		(38)	%
Florida		14		17		(18)	%		14		18		(22)	%		17		17		0	%
East		22		34		(35)	%		22		36		(39)	%		29		37		(22)	%
Total		151		164		(8)	%		152		163		(7)	%		156		163		(4)	%

Backlog

	At December 31,
	2017						2016						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		326	$	119,601	$	366.9		322	$	104,899	$	325.8		1	%		14	%		13	%
California		549		387,339		705.5		481		314,305		653.4		14	%		23	%		8	%
Nevada		354		138,174		390.3		307		108,720		354.1		15	%		27	%		10	%
Washington		222		129,068		581.4		237		120,305		507.6		(6)	%		7	%		15	%
West		1,451		774,182		533.6		1,347		648,229		481.2		8	%		19	%		11	%
Colorado		1,166		594,384		509.8		964		466,565		484.0		21	%		27	%		5	%
Utah		87		43,611		501.3		104		41,689		400.9		(16)	%		5	%		25	%
Mountain		1,253		637,995		509.2		1,068		508,254		475.9		17	%		26	%		7	%
Maryland		52		22,647		435.5		92		45,160		490.9		(43)	%		(50)	%		(11)	%
Virginia		92		48,972		532.3		111		60,701		546.9		(17)	%		(19)	%		(3)	%
Florida		311		118,696		381.7		266		119,305		448.5		17	%		(1)	%		(15)	%
East		455		190,315		418.3		469		225,166		480.1		(3)	%		(15)	%		(13)	%
Total		3,159	$	1,602,492	$	507.3		2,884	$	1,381,649	$	479.1		10	%		16	%		6	%

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

	December 31,
	2017		2016		% Change
Unsold:
Completed		95		115		(17)	%
Under construction		215		279		(23)	%
Total unsold started homes		310		394		(21)	%
Sold homes under construction or completed		2,345		2,186		7	%
Model homes under construction or completed		338		302		12	%
Total homes completed or under construction		2,993		2,882		4	%

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

	December 31, 2017						December 31, 2016
	Lots Owned		Lots Optioned		Total		Lots Owned		Lots Optioned		Total		Total % Change
Arizona		2,003		700		2,703		1,521		287		1,808		50	%
California		1,785		678		2,463		1,702		298		2,000		23	%
Nevada		2,284		561		2,845		1,934		65		1,999		42	%
Washington		535		162		697		862		-		862		(19)	%
West		6,607		2,101		8,708		6,019		650		6,669		31	%
Colorado		4,496		2,736		7,232		3,982		1,683		5,665		28	%
Utah		409		194		603		306		30		336		79	%
Mountain		4,905		2,930		7,835		4,288		1,713		6,001		31	%
Maryland		88		79		167		221		62		283		(41)	%
Virginia		220		45		265		367		19		386		(31)	%
Florida		1,178		1,159		2,337		910		421		1,331		76	%
East		1,486		1,283		2,769		1,498		502		2,000		38	%
Total		12,998		6,314		19,312		11,805		2,865		14,670		32	%

M.D.C. HOLDINGS, INC.

Other Financial Data

Selling, General and Administrative Expenses

	Three Months Ended December 31,								Year Ended December 31,
	2017			2016			Change		2017			2016			Change
	(Dollars in thousands)
General and administrative expenses	$	39,843		$	27,438		$	12,405	$	137,674		$	118,076		$	19,598
General and administrative expenses as a percentage of home sale revenues		5.7	%		3.8	%	190 bps			5.5	%		5.2	%	30 bps

Marketing expenses	$	17,843		$	17,050		$	793	$	66,388		$	58,778		$	7,610
Marketing expenses as a percentage of home sale revenues		2.5	%		2.4	%	10 bps			2.7	%		2.6	%	10 bps

Commissions expenses	$	23,693		$	23,431		$	262	$	83,426		$	73,686		$	9,740
Commissions expenses as a percentage of home sale revenues		3.4	%		3.3	%	10 bps			3.3	%		3.3	%	0 bps

Total selling, general and administrative expenses	$	81,379		$	67,919		$	13,460	$	287,488		$	250,540		$	36,948
Total selling, general and administrative expenses as a percentage of home sale revenues (SG&A Rate)		11.6	%		9.5	%	210 bps			11.5	%		11.1	%	40 bps

Capitalized Interest

	Three Months Ended						Year Ended
	December 31,						December 31,
	2017			2016			2017			2016
	(Dollars in thousands)
Homebuilding interest incurred	$	15,576		$	13,170		$	55,170		$	52,681
Less: Interest capitalized		(15,576	)		(13,170	)		(55,170	)		(52,681	)
Homebuilding interest expensed	$	-		$	-		$	-		$	-

Interest capitalized, beginning of period	$	60,216		$	74,415		$	68,085		$	77,541
Plus: Interest capitalized during period		15,576			13,170			55,170			52,681
Less: Previously capitalized interest included in home and land cost of sales		(18,251	)		(19,500	)		(65,714	)		(62,137	)
Interest capitalized, end of period	$	57,541		$	68,085		$	57,541		$	68,085

Attached files

Stock widget

Investing forum

M.D.C. HOLDINGS, INC. Reports