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| 8-K - 8-K - M.D.C. HOLDINGS, INC. | mdc-20210202.htm |
Exhibit 99.1
News Release
M.D.C. HOLDINGS ANNOUNCES 2020 FOURTH QUARTER AND FULL YEAR RESULTS
Significant expansion of gross margin from home sales helped drive a 59% year-over-year increase in net income for the quarter, while record fourth quarter home orders drove backlog to an all-time year end high of $3.26 billion.
DENVER, COLORADO, Tuesday, February 2, 2021. M.D.C Holdings, Inc. (NYSE: MDC), one of the nation’s leading homebuilders, announced results for the quarter and full year ended December 31, 2020.
Larry A. Mizel, MDC’s Executive Chairman, stated, “MDC delivered another quarter of significant order growth and strong profitability in the fourth quarter of 2020. The dollar value of our net orders for the quarter increased 92% year-over-year on a 67% improvement in sales pace, as we continued to see broad-based strength in demand from both a geographic and a product standpoint. Net income rose 59% to $147.5 million, based on the significant growth of both our homebuilding and our financial services operations.”
Mr. Mizel continued, “The new home industry continues to benefit from a number of tailwinds, including limited existing home inventory, low mortgage rates, pent-up demand resulting from millennials aging into their prime home-buying years and an increased emphasis on single family home ownership brought about by the pandemic. The outlook for each of these drivers appears to be favorable to start 2021, giving us optimism for our industry and our Company. Given this positive outlook, we have taken steps to fortify our financial position, including the expansion of our homebuilding line of credit to $1.2 billion and the recent issuance of $350 million of senior notes at a record low rate of 2.5%. With a positive industry backdrop, a sizable backlog and a strong balance sheet, MDC is well positioned to build on our success from 2020.”
David D. Mandarich, MDC’s President and Chief Executive Officer, stated, “2020 was an outstanding year for our company as we successfully navigated the challenges brought about by the pandemic and delivered strong returns for our shareholders. Our focus on more-affordable product and our build-to-order operating model proved to be ideally suited for these turbulent times and allowed us to post significant improvements to nearly every relevant operating metric for the year. As we head into 2021, we remain excited about the opportunities available to our Company, including our recent entry into the Boise market. With a proven business model, a seasoned leadership team and an established track record of success, MDC remains well positioned to take advantage of the favorable housing demand we see today.”
1
2020 Fourth Quarter Highlights and Comparisons to 2019 Fourth Quarter
•Home sale revenues increased 10% to $1.18 billion from $1.07 billion
◦Unit deliveries up 7% to 2,564
◦Average selling price of deliveries up 2% to $461,000
•Gross margin from home sales increased 350 basis points to 22.0% from 18.5%
•Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") of 10.0% vs. 9.8%
•Homebuilding pretax income increased 52% to $142.3 million from $93.4 million
•Financial services pretax income increased 54% to $29.0 million from $18.8 million
•Net income of $147.5 million, or $2.19 per diluted share, up 59% from $92.6 million or $1.42 per diluted share
◦Effective tax rate of 13.9% vs. 17.5%
•Dollar value of net new orders increased 92% to $1.32 billion from $684.9 million
◦Unit net orders increased 72% to 2,708
◦Average selling price of net orders up 12%
2020 Full Year Highlights and Comparisons to 2019 Full Year
•Home sale revenues increased 17% to $3.77 billion from $3.21 billion
◦Unit deliveries up 17% to 8,158
•Net income of $367.6 million, or $5.58 per diluted share, up 54% from $238.3 million or $3.72 per diluted share
•Gross margin from home sales of 20.8% vs. 18.8%
•SG&A rate of 10.7% vs. 11.3%
•Homebuilding pretax income increased 55% to $378.5 million from $244.8 million
◦Effective tax rate of 19.7% vs. 21.9%
•Financial services pretax income increased 31% to $79.0 million from $60.2 million
•Dollar value of net new orders increased 56% to $5.46 billion from $3.50 billion
◦Unit net orders increased 40% to 11,012
◦Monthly sales absorption pace increased 36% to 4.85
2021 Outlook and Other Selected Information1
•Backlog dollar value at December 31, 2020 up 87% year-over-year to $3.26 billion
•Home deliveries for the 2021 first quarter between 2,200 and 2,400
◦Average selling price for 2021 first quarter unit deliveries between $470,000 and $480,000
◦Gross margin from home sales for the 2021 first quarter of approximately 21.5% (assuming no impairments or warranty adjustments)
•Full year 2021 home deliveries between 10,000 and 11,000
•Active subdivision count at December 31, 2020 of 194, up 5% year-over-year
◦Targeting an increase of at least 10% year-over-year in ending active subdivision count for 2021
•Lots controlled of 29,469 at December 31, 2020, up 8% year-over-year
•Homebuilding line of credit increased to $1.20 billion in December 2020
•Issued $350 million of 10-year senior notes at 2.500% in January 2021
•Quarterly cash dividend of forty cents ($0.40) per share declared on January 25, 2021, up 21% from the prior year
•8% stock dividend declared on January 25, 2021
1 See "Forward-Looking Statements" below.
2
About MDC
M.D.C. Holdings, Inc. was founded in 1972. MDC's homebuilding subsidiaries, which operate under the name Richmond American Homes, have built and financed the American Dream for more than 210,000 homebuyers since 1977. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, Seattle, Portland and Boise. 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. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol "MDC." For more information, visit www.mdcholdings.com.
Forward-Looking Statements
Certain statements in this release, including any statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of MDC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, including the impact of the COVID-19 pandemic, changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including restrictions on business activities resulting from the COVID-19 pandemic, cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of MDC’s investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican Mortgage Corporation’s sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by MDC in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns and natural disasters; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including orders addressing the COVID-19 pandemic, the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) changes in energy prices; and (17) other factors over which MDC has little or no control. Additional information about the risks and uncertainties applicable to MDC's business is contained in MDC's Form 10-K for the year ended December 31, 2020, which is scheduled to be filed with the Securities and Exchange Commission today. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. MDC undertakes no duty to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or webcasts should be consulted.
Contact: Robert N. Martin
Senior Vice President and Chief Financial Officer
1-866-424-3395
IR@mdch.com
3
M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||
| Home sale revenues | $ | 1,180,987 | $ | 1,074,852 | $ | 3,765,379 | $ | 3,205,248 | |||||||||||||||
| Home cost of sales | (921,060) | (876,156) | (2,982,668) | (2,600,196) | |||||||||||||||||||
| Inventory impairments | — | (325) | — | (935) | |||||||||||||||||||
| Total cost of sales | (921,060) | (876,481) | (2,982,668) | (2,601,131) | |||||||||||||||||||
| Gross profit | 259,927 | 198,371 | 782,711 | 604,117 | |||||||||||||||||||
| Selling, general and administrative expenses | (117,949) | (105,101) | (403,218) | (362,790) | |||||||||||||||||||
| Interest and other income | 868 | 1,579 | 4,233 | 9,070 | |||||||||||||||||||
| Other expense | (569) | (1,447) | (5,209) | (5,635) | |||||||||||||||||||
| Homebuilding pretax income | 142,277 | 93,402 | 378,517 | 244,762 | |||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||
| Revenues | 44,179 | 29,616 | 135,832 | 88,005 | |||||||||||||||||||
| Expenses | (16,064) | (16,118) | (52,465) | (45,001) | |||||||||||||||||||
| Other income (expense), net | 902 | 5,346 | (4,372) | 17,223 | |||||||||||||||||||
| Financial services pretax income | 29,017 | 18,844 | 78,995 | 60,227 | |||||||||||||||||||
| Income before income taxes | 171,294 | 112,246 | 457,512 | 304,989 | |||||||||||||||||||
| Provision for income taxes | (23,806) | (19,657) | (89,930) | (66,677) | |||||||||||||||||||
| Net income | $ | 147,488 | $ | 92,589 | $ | 367,582 | $ | 238,312 | |||||||||||||||
| Comprehensive income | $ | 147,488 | $ | 92,589 | $ | 367,582 | $ | 238,312 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 2.27 | $ | 1.48 | $ | 5.76 | $ | 3.84 | |||||||||||||||
| Diluted | $ | 2.19 | $ | 1.42 | $ | 5.58 | $ | 3.72 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 64,427,363 | 62,192,849 | 63,455,422 | 61,616,988 | |||||||||||||||||||
| Diluted | 66,824,729 | 64,609,357 | 65,441,279 | 63,702,666 | |||||||||||||||||||
| Dividends declared per share | $ | 0.40 | $ | 0.30 | $ | 1.39 | $ | 1.18 | |||||||||||||||
4
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
| December 31, 2020 | December 31, 2019 | ||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| ASSETS | |||||||||||
| Homebuilding: | |||||||||||
| Cash and cash equivalents | $ | 411,362 | $ | 424,186 | |||||||
| Restricted cash | 15,343 | 14,279 | |||||||||
| Trade and other receivables | 72,466 | 65,829 | |||||||||
| Inventories: | |||||||||||
| Housing completed or under construction | 1,486,587 | 1,036,191 | |||||||||
| Land and land under development | 1,345,643 | 1,330,384 | |||||||||
| Total inventories | 2,832,230 | 2,366,575 | |||||||||
| Property and equipment, net | 61,880 | 60,414 | |||||||||
| Deferred tax asset, net | 11,454 | 21,768 | |||||||||
| Prepaids and other assets | 101,685 | 78,358 | |||||||||
| Total homebuilding assets | 3,506,420 | 3,031,409 | |||||||||
| Financial Services: | |||||||||||
| Cash and cash equivalents | 77,267 | 35,747 | |||||||||
| Marketable securities | — | 56,747 | |||||||||
| Mortgage loans held-for-sale, net | 232,556 | 197,021 | |||||||||
| Other assets | 48,677 | 17,432 | |||||||||
| Total financial services assets | 358,500 | 306,947 | |||||||||
| Total Assets | $ | 3,864,920 | $ | 3,338,356 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Homebuilding: | |||||||||||
| Accounts payable | $ | 98,862 | $ | 87,364 | |||||||
| Accrued and other liabilities | 300,735 | 245,940 | |||||||||
| Revolving credit facility | 10,000 | 15,000 | |||||||||
| Senior notes, net | 1,037,391 | 989,422 | |||||||||
| Total homebuilding liabilities | 1,446,988 | 1,337,726 | |||||||||
| Financial Services: | |||||||||||
| Accounts payable and accrued liabilities | 95,630 | 68,529 | |||||||||
| Mortgage repurchase facility | 202,390 | 149,616 | |||||||||
| Total financial services liabilities | 298,020 | 218,145 | |||||||||
| Total Liabilities | 1,745,008 | 1,555,871 | |||||||||
| Stockholders' Equity | |||||||||||
| Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding | — | — | |||||||||
| Common stock, $0.01 par value; 250,000,000 shares authorized; 64,851,126 and 62,574,961 issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 649 | 626 | |||||||||
| Additional paid-in-capital | 1,407,597 | 1,348,733 | |||||||||
| Retained earnings | 711,666 | 433,126 | |||||||||
| Total Stockholders' Equity | 2,119,912 | 1,782,485 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 3,864,920 | $ | 3,338,356 | |||||||
5
M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Operating Activities: | |||||||||||||||||||||||
| Net income | $ | 147,488 | $ | 92,589 | $ | 367,582 | $ | 238,312 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Stock-based compensation expense | 11,526 | 7,838 | 30,062 | 26,016 | |||||||||||||||||||
| Depreciation and amortization | 8,285 | 7,576 | 27,166 | 23,054 | |||||||||||||||||||
| Inventory impairments | — | 325 | — | 935 | |||||||||||||||||||
| Net (gain) loss on marketable equity securities | — | (3,863) | 8,285 | (11,797) | |||||||||||||||||||
| Deferred income tax expense | 2,195 | 4,182 | 10,688 | 13,670 | |||||||||||||||||||
| Net changes in assets and liabilities: | |||||||||||||||||||||||
| Trade and other receivables | 4,697 | (8,315) | (12,815) | (12,997) | |||||||||||||||||||
| Mortgage loans held-for-sale, net | (72,050) | (80,001) | (35,535) | (47,810) | |||||||||||||||||||
| Housing completed or under construction | (62,613) | 168,265 | (449,882) | (83,484) | |||||||||||||||||||
| Land and land under development | (123,742) | (139,116) | (15,032) | (149,577) | |||||||||||||||||||
| Prepaids and other assets | (24,618) | (805) | (44,932) | (4,694) | |||||||||||||||||||
| Accounts payable and accrued liabilities | 56,295 | 42,276 | 91,318 | 66,205 | |||||||||||||||||||
| Net cash provided by (used in) operating activities | (52,537) | 90,951 | (23,095) | 57,833 | |||||||||||||||||||
| Investing Activities: | |||||||||||||||||||||||
| Purchases of marketable securities | — | (1,368) | (10,804) | (11,708) | |||||||||||||||||||
| Sales of marketable securities | — | 1,360 | 59,266 | 7,637 | |||||||||||||||||||
| Purchases of property and equipment | (5,892) | (4,586) | (26,777) | (24,714) | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (5,892) | (4,594) | 21,685 | (28,785) | |||||||||||||||||||
| Financing Activities: | |||||||||||||||||||||||
| Advances on mortgage repurchase facility, net | 71,529 | 59,145 | 52,774 | 32,801 | |||||||||||||||||||
| Payments on homebuilding line of credit, net | — | — | (5,000) | — | |||||||||||||||||||
| Payments of senior notes | — | — | (250,000) | — | |||||||||||||||||||
| Proceeds from issuance of senior notes | — | — | 298,050 | — | |||||||||||||||||||
| Dividend payments | (25,952) | (18,780) | (89,008) | (73,117) | |||||||||||||||||||
| Payments of deferred debt issuance costs | (4,471) | — | (4,471) | — | |||||||||||||||||||
| Issuance of shares under stock-based compensation programs, net | (1,149) | (963) | 28,825 | 15,341 | |||||||||||||||||||
| Net cash provided by (used in) financing activities | 39,957 | 39,402 | 31,170 | (24,975) | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (18,472) | 125,759 | 29,760 | 4,073 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Beginning of period | 522,444 | 348,453 | 474,212 | 470,139 | |||||||||||||||||||
| End of period | $ | 503,972 | $ | 474,212 | $ | 503,972 | $ | 474,212 | |||||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 411,362 | $ | 424,186 | $ | 411,362 | $ | 424,186 | |||||||||||||||
| Restricted cash | 15,343 | 14,279 | 15,343 | 14,279 | |||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||
| Cash and cash equivalents | 77,267 | 35,747 | 77,267 | 35,747 | |||||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 503,972 | $ | 474,212 | $ | 503,972 | $ | 474,212 | |||||||||||||||
6
New Home Deliveries
| Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 1,389 | $ | 658,307 | $ | 473.9 | 1,299 | $ | 606,558 | $ | 466.9 | 7 | % | 9 | % | 1 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 810 | 407,160 | 502.7 | 762 | 371,098 | 487.0 | 6 | % | 10 | % | 3 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 365 | 115,520 | 316.5 | 328 | 97,196 | 296.3 | 11 | % | 19 | % | 7 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 2,564 | $ | 1,180,987 | $ | 460.6 | 2,389 | $ | 1,074,852 | $ | 449.9 | 7 | % | 10 | % | 2 | % | |||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 4,412 | $ | 2,106,241 | $ | 477.4 | 3,763 | $ | 1,771,061 | $ | 470.7 | 17 | % | 19 | % | 1 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 2,530 | 1,293,779 | 511.4 | 2,242 | 1,131,568 | 504.7 | 13 | % | 14 | % | 1 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 1,216 | 365,359 | 300.5 | 969 | 302,619 | 312.3 | 25 | % | 21 | % | (4) | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 8,158 | $ | 3,765,379 | $ | 461.6 | 6,974 | $ | 3,205,248 | $ | 459.6 | 17 | % | 17 | % | 0 | % | |||||||||||||||||||||||||||||||||||||
Net New Orders
| Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average Price | Monthly Absorption Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 1,453 | $ | 712,792 | $ | 490.6 | 4.75 | 884 | $ | 400,147 | $ | 452.7 | 3.19 | 64 | % | 78 | % | 8 | % | 49 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mountain | 835 | 448,908 | 537.6 | 4.66 | 436 | 212,772 | 488.0 | 2.21 | 92 | % | 111 | % | 10 | % | 111 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| East | 420 | 153,650 | 365.8 | 4.41 | 254 | 71,950 | 283.3 | 2.80 | 65 | % | 114 | % | 29 | % | 57 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 2,708 | $ | 1,315,350 | $ | 485.7 | 4.66 | 1,574 | $ | 684,869 | $ | 435.1 | 2.79 | 72 | % | 92 | % | 12 | % | 67 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average Price | Monthly Absorption Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 6,099 | $ | 3,078,584 | $ | 504.8 | 5.29 | 4,263 | $ | 1,963,489 | $ | 460.6 | 3.91 | 43 | % | 57 | % | 10 | % | 35 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mountain | 3,337 | 1,818,833 | 545.1 | 4.46 | 2,410 | 1,189,193 | 493.4 | 3.04 | 38 | % | 53 | % | 10 | % | 47 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| East | 1,576 | 562,419 | 356.9 | 4.27 | 1,166 | 342,469 | 293.7 | 3.68 | 35 | % | 64 | % | 22 | % | 16 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 11,012 | $ | 5,459,836 | $ | 495.8 | 4.85 | 7,839 | $ | 3,495,151 | $ | 445.9 | 3.56 | 40 | % | 56 | % | 11 | % | 36 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
*Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period
7
Active Subdivisions
| Average Active Subdivisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Active Subdivisions | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, | % | December 31, | % | December 31, | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||
| West | 103 | 89 | 16 | % | 102 | 92 | 11 | % | 96 | 90 | 7 | % | |||||||||||||||||||||||||||||||||||||||||
| Mountain | 60 | 65 | (8) | % | 60 | 66 | (9) | % | 62 | 66 | (6) | % | |||||||||||||||||||||||||||||||||||||||||
| East | 31 | 31 | — | % | 32 | 30 | 6 | % | 31 | 27 | 15 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 194 | 185 | 5 | % | 194 | 188 | 3 | % | 189 | 183 | 3 | % | |||||||||||||||||||||||||||||||||||||||||
Backlog
| December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 2019 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 3,710 | $ | 1,831,205 | $ | 493.6 | 2,023 | $ | 960,057 | $ | 474.6 | 83 | % | 91 | % | 4 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 2,018 | 1,090,557 | 540.4 | 1,211 | 624,672 | 515.8 | 67 | % | 75 | % | 5 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 927 | 341,439 | 368.3 | 567 | 160,618 | 283.3 | 63 | % | 113 | % | 30 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 6,655 | $ | 3,263,201 | $ | 490.3 | 3,801 | $ | 1,745,347 | $ | 459.2 | 75 | % | 87 | % | 7 | % | |||||||||||||||||||||||||||||||||||||
Homes Completed or Under Construction (WIP lots)
| December 31, | % | ||||||||||||||||
| 2020 | 2019 | Change | |||||||||||||||
| Unsold: | |||||||||||||||||
| Completed | 48 | 122 | (61) | % | |||||||||||||
| Under construction | 131 | 255 | (49) | % | |||||||||||||
| Total unsold started homes | 179 | 377 | (53) | % | |||||||||||||
| Sold homes under construction or completed | 4,797 | 2,779 | 73 | % | |||||||||||||
| Model homes under construction or completed | 498 | 473 | 5 | % | |||||||||||||
| Total homes completed or under construction | 5,474 | 3,629 | 51 | % | |||||||||||||
Lots Owned and Optioned (including homes completed or under construction)
| December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
| Lots Owned | Lots Optioned | Total | Lots Owned | Lots Optioned | Total | Total % Change | |||||||||||||||||||||||||||||||||||
| West | 12,335 | 3,460 | 15,795 | 9,538 | 2,805 | 12,343 | 28 | % | |||||||||||||||||||||||||||||||||
| Mountain | 6,279 | 2,591 | 8,870 | 6,654 | 3,879 | 10,533 | (16) | % | |||||||||||||||||||||||||||||||||
| East | 2,868 | 1,936 | 4,804 | 2,313 | 2,197 | 4,510 | 7 | % | |||||||||||||||||||||||||||||||||
| Total | 21,482 | 7,987 | 29,469 | 18,505 | 8,881 | 27,386 | 8 | % | |||||||||||||||||||||||||||||||||
8
Selling, General and Administrative Expenses
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2020 | 2019 | Change | 2020 | 2019 | Change | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| General and administrative expenses | $ | 53,232 | $ | 46,178 | $ | 7,054 | $ | 184,720 | $ | 175,027 | $ | 9,693 | |||||||||||||||||||||||
General and administrative expenses as a percentage of home sale revenues | 4.5 | % | 4.3 | % | 20 bps | 4.9 | % | 5.5 | % | -60 bps | |||||||||||||||||||||||||
| Marketing expenses | $ | 26,275 | $ | 23,349 | $ | 2,926 | $ | 95,103 | $ | 81,615 | $ | 13,488 | |||||||||||||||||||||||
Marketing expenses as a percentage of home sale revenues | 2.2 | % | 2.2 | % | 0 bps | 2.5 | % | 2.5 | % | 0 bps | |||||||||||||||||||||||||
| Commissions expenses | $ | 38,442 | $ | 35,574 | $ | 2,868 | $ | 123,395 | $ | 106,148 | $ | 17,247 | |||||||||||||||||||||||
Commissions expenses as a percentage of home sale revenues | 3.3 | % | 3.3 | % | 0 bps | 3.3 | % | 3.3 | % | 0 bps | |||||||||||||||||||||||||
| Total selling, general and administrative expenses | $ | 117,949 | $ | 105,101 | $ | 12,848 | $ | 403,218 | $ | 362,790 | $ | 40,428 | |||||||||||||||||||||||
Total selling, general and administrative expenses as a percentage of home sale revenues | 10.0 | % | 9.8 | % | 20 bps | 10.7 | % | 11.3 | % | -60 bps | |||||||||||||||||||||||||
Capitalized Interest
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Homebuilding interest incurred | $ | 14,849 | $ | 15,745 | $ | 61,276 | $ | 63,635 | |||||||||||||||
| Less: Interest capitalized | (14,849) | (15,745) | (61,276) | (63,635) | |||||||||||||||||||
| Homebuilding interest expensed | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Interest capitalized, beginning of period | $ | 55,217 | $ | 59,621 | $ | 55,310 | $ | 54,845 | |||||||||||||||
| Plus: Interest capitalized during period | 14,849 | 15,745 | 61,276 | 63,635 | |||||||||||||||||||
| Less: Previously capitalized interest included in home cost of sales | (17,289) | (20,056) | (63,809) | (63,170) | |||||||||||||||||||
| Interest capitalized, end of period | $ | 52,777 | $ | 55,310 | $ | 52,777 | $ | 55,310 | |||||||||||||||
9