M.D.C. Holdings Announces 2017 Second Quarter Results

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August 1, 2017 6:00 AM EDT

DENVER, Aug. 1, 2017 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended June 30, 2017.

2017 Second Quarter Highlights and Comparisons to 2016 Second Quarter

  • Net income up 26% to $33.9 million, or $0.64 per diluted share, from $26.9 million or $0.52 per diluted share*
  • Home sale revenues up 13% to $647.6 million from $571.2 million
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved 40 basis points from 11.3% to 10.9%
  • Dollar value of net new orders of $710.6 million versus $722.5 million
    • Monthly sales absorption pace of  3.41 improved 2%
  • Ending backlog dollar value up 4% to $1.68 billion from $1.61 billion
  • Approved 3,342 lots for purchase in 44 communities
  • Last twelve months return on equity improved 340 basis points to 9.3%

*Per share amount for 2016 second quarter has 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 pleased to announce our 2017 second quarter results, highlighted by a 26% year-over-year increase in our net income. For the second consecutive quarter, we realized a year-over-year improvement in our backlog conversion rate, which helped to drive a double-digit increase in home sale revenues and improved operating leverage. The improved backlog conversion rate was achieved based on stabilizing build-to-order construction cycle times, which decreased sequentially for the first time in almost two years."

Mr. Mizel continued, "Income for both our homebuilding and financial services operations increased for the 2017 second quarter, driving a seventh consecutive quarter of improvement to our last twelve months return on equity, which expanded by 340 basis points year-over-year. We achieved this improvement without losing focus on the balance sheet, which features a unique combination of low leverage, carefully managed exposure to homebuilding assets, and liquidity of nearly $1.0 billion."

Mr. Mizel concluded, "With our returns rising, we have focused increasingly on sourcing new communities to drive future growth for our core homebuilding business.  In the second quarter alone, we approved more than 3,300 lots for acquisition, far exceeding the activity for any other quarter in the past three years. Our acquisition activities have maintained a focus on affordability, given the success of our more affordable SeasonsTM product line, which is now selling in four states and accounted for just over 10% of total net new orders in the quarter. Overall, our outlook for the homebuilding industry remains positive, supported by a solid macroeconomic environment and favorable dynamics in the balance between housing supply and demand."

Homebuilding

Home sale revenues for the 2017 second quarter increased 13% to $647.6 million, primarily driven by an 11% increase in deliveries, which was mostly the result of an 8% year-over-year increase in our homes in beginning backlog coupled with a 100 basis point improvement in our backlog conversion rate.

For the 2017 second quarter, our gross margin from home sales percentage was 16.8%, a 40 basis point improvement from 16.4% in the prior year period. Our 2016 second quarter included $1.6 million, or 30 basis points, of inventory impairments while our 2017 second quarter included no such inventory impairments.

Selling, general and administrative expenses for the 2017 second quarter were $70.7 million, up $6.3 million from $64.4 million for the same period in 2016 primarily due to increased compensation-related expenses driven by higher average headcount. Our SG&A rate improved by 40 basis points to 10.9% for the 2017 second quarter from 11.3% in the 2016 second quarter. This decrease in our SG&A rate was primarily the result of an increased ability to leverage our fixed overhead as a result of our increase in home sale revenues.

The dollar value of net new orders for the 2017 second quarter decreased 2% year-over-year to $710.6 million, as a 4% decline in our average active community count was partly offset by a 2% increase in our monthly sales absorption pace.

Our backlog value at the end of the 2017 second quarter was up 4% year-over-year to $1.68 billion. The improvement was due to both a 2% increase in the number of units in backlog and a 2% increase in the average selling price. The increase in the number of units in backlog was driven by strong sales activity during the past twelve months. Price increases implemented in the past twelve months drove the increase in average selling price, but the price increases were slightly offset by the lower selling price of our more affordable homes.

Financial Services

Income before taxes for our financial services operations for the 2017 second quarter was $11.7 million, a $2.7 million increase from $9.1 million in the 2016 second quarter. This improvement was due to increased profitability in our mortgage operations segment as a result of (1) year-over-year increases in the dollar value of loans locked, originated, and sold, and (2) higher gains on loans locked and originated. In addition, we realized higher income before taxes from our other financial services subsidiaries as a result of the increase in new home deliveries.

Income Taxes

For the three months ended June 30, 2017 and 2016, we had effective income tax rates of 34.7% and 33.5%, respectively. The year-over-year increase in our effective tax rate was primarily the result of our estimate of the full year effective tax rate for 2016 including an estimate for energy credits whereas our estimate for the 2017 full year includes no such energy credit as the credit has not been approved by the U.S. Congress.

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.

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-Q for the quarter ended June 30, 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.

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

(Dollars in thousands, except per share amounts)

(Unaudited)

Homebuilding:

Home sale revenues

$

647,620

$

571,195

$

1,211,099

$

965,615

Land sale revenues

1,351

316

1,598

2,640

Total home and land sale revenues

648,971

571,511

1,212,697

968,255

Home cost of sales

(539,077)

(475,836)

(1,008,019)

(805,862)

Land cost of sales

(1,202)

(216)

(1,413)

(1,879)

Inventory impairments

-

(1,600)

(4,850)

(1,600)

Total cost of sales

(540,279)

(477,652)

(1,014,282)

(809,341)

Gross margin

108,692

93,859

198,415

158,914

Selling, general and administrative expenses

(70,709)

(64,440)

(137,007)

(120,717)

Interest and other income

2,847

2,553

5,174

3,489

Other expense

(666)

(278)

(1,017)

(905)

Other-than-temporary impairment of marketable securities

(1)

(288)

(51)

(719)

Homebuilding pretax income

40,163

31,406

65,514

40,062

Financial Services:

Revenues

19,073

15,823

37,052

26,840

Expenses

(8,500)

(7,543)

(16,398)

(13,784)

Interest and other income

1,238

772

2,217

1,613

Other-than-temporary impairment of marketable securities

(80)

-

(131)

-

Financial services pretax income

11,731

9,052

22,740

14,669

Income before income taxes

51,894

40,458

88,254

54,731

Provision for income taxes

(18,023)

(13,545)

(32,134)

(18,255)

Net income

$

33,871

$

26,913

$

56,120

$

36,476

Other comprehensive income related to available for sale securities, net of tax

1,944

895

3,930

2,843

Comprehensive income

$

35,815

$

27,808

$

60,050

$

39,319

Earnings per share:

Basic

$

0.65

$

0.52

$

1.09

$

0.71

Diluted

$

0.64

$

0.52

$

1.07

$

0.71

Weighted average common shares outstanding

Basic

51,514,309

51,293,917

51,428,079

51,281,643

Diluted

52,444,123

51,304,829

52,065,968

51,291,359

Dividends declared per share

$

0.25

$

0.24

$

0.50

$

0.48

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

June 30,

December 31,

2017

2016

ASSETS

(Dollars in thousands, except

per share amounts)

Homebuilding:

(Unaudited)

Cash and cash equivalents

$

314,814

$

259,087

Marketable securities

65,268

59,770

Restricted cash

5,027

3,778

Trade and other receivables

37,747

42,492

Inventories:

Housing completed or under construction

909,911

874,199

Land and land under development

846,825

884,615

Total inventories

1,756,736

1,758,814

Property and equipment, net

27,194

28,041

Deferred tax asset, net

62,446

74,888

Metropolitan district bond securities (related party)

31,864

30,162

Prepaid and other assets

67,009

60,463

Total homebuilding assets

2,368,105

2,317,495

Financial Services:

Cash and cash equivalents

23,162

23,822

Marketable securities

38,666

36,436

Mortgage loans held-for-sale, net

95,283

138,774

Other assets

11,195

12,062

Total financial services assets

168,306

211,094

      Total Assets

$

2,536,411

$

2,528,589

LIABILITIES AND EQUITY

Homebuilding:

Accounts payable

$

48,327

$

42,088

Accrued liabilities

148,199

144,566

Revolving credit facility

15,000

15,000

Senior notes, net

842,232

841,646

Total homebuilding liabilities

1,053,758

1,043,300

Financial Services:

Accounts payable and accrued liabilities

49,873

50,734

Mortgage repurchase facility

69,127

114,485

Total financial services liabilities

119,000

165,219

      Total Liabilities

1,172,758

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; 51,862,230 and 51,485,090 issued and outstanding at June 30, 2017 and December 31, 2016, respectively

519

515

Additional paid-in-capital

992,870

983,532

Retained earnings

344,263

313,952

Accumulated other comprehensive income

26,001

22,071

Total Stockholders' Equity

1,363,653

1,320,070

Total Liabilities and Stockholders' Equity

$

2,536,411

$

2,528,589

 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

(Dollars in thousands)

(Unaudited)

Operating Activities:

Net income

$

33,871

$

26,913

$

56,120

$

36,476

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Stock-based compensation expense

1,443

3,176

2,038

6,163

Depreciation and amortization

1,376

1,294

2,704

2,367

Inventory impairments

-

1,600

4,850

1,600

Other-than-temporary impairment of marketable securities

81

288

182

719

Gain on sale of marketable securities

(1,197)

(1,177)

(1,758)

(262)

Deferred income tax expense

6,813

6,085

10,033

7,873

Net changes in assets and liabilities:

      Restricted cash

(798)

(597)

(1,249)

(196)

      Trade and other receivables

(1,907)

(10,984)

5,419

(26,235)

      Mortgage loans held-for-sale

2,090

(36,506)

43,491

(3,029)

      Housing completed or under construction

(18,841)

(71,448)

(39,707)

(186,805)

      Land and land under development

8,491

54,390

37,521

122,701

      Prepaid expenses and other assets

(5,195)

(3,886)

(7,602)

(2,975)

      Accounts payable and accrued liabilities

774

23,751

8,845

19,517

Net cash provided by (used in) operating activities

27,001

(7,101)

120,887

(22,086)

Investing Activities:

Purchases of marketable securities

(6,682)

(9,944)

(12,043)

(15,426)

Sales of marketable securities

6,467

30,165

11,450

50,765

Purchases of property and equipment

(242)

(1,173)

(1,364)

(3,117)

Net cash provided by (used in) investing activities

(457)

19,048

(1,957)

32,222

Financing Activities:

Advances (payments) on mortgage repurchase facility, net

(1,415)

33,076

(45,358)

4,686

Dividend payments

(12,912)

(12,252)

(25,809)

(24,504)

Proceeds from exercise of stock options

5,697

-

7,304

-

Net cash used in financing activities

(8,630)

20,824

(63,863)

(19,818)

Net increase (decrease) in cash and cash equivalents

17,914

32,771

55,067

(9,682)

Cash and cash equivalents:

      Beginning of period

320,062

138,535

282,909

180,988

      End of period

$

337,976

$

171,306

$

337,976

$

171,306

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

 Three Months Ended June 30, 

2017

2016

 % Change

 Homes

 DollarValue

 Average

Price

 Homes

 DollarValue

 Average Price

 Homes

 DollarValue

 Average Price

(Dollars in thousands)

Arizona

212

$

68,943

$

325.2

201

$

60,976

$

303.4

5%

13%

7%

California

210

131,746

627.4

192

117,985

614.5

9%

12%

2%

Nevada

215

75,687

352.0

148

51,834

350.2

45%

46%

1%

Washington

91

47,382

520.7

85

39,236

461.6

7%

21%

13%

West

728

323,758

444.7

626

270,031

431.4

16%

20%

3%

Colorado

414

203,141

490.7

353

172,100

487.5

17%

18%

1%

Utah

48

19,864

413.8

51

17,935

351.7

(6)%

11%

18%

Mountain

462

223,005

482.7

404

190,035

470.4

14%

17%

3%

Maryland

64

27,760

433.8

83

41,639

501.7

(23)%

(33)%

(14)%

Virginia

53

32,365

610.7

75

38,623

515.0

(29)%

(16)%

19%

Florida

105

40,732

387.9

84

30,867

367.5

25%

32%

6%

East

222

100,857

454.3

242

111,129

459.2

(8)%

(9)%

(1)%

Total

1,412

$

647,620

$

458.7

1,272

$

571,195

$

449.1

11%

13%

2%

 Six Months Ended June 30, 

2017

2016

 % Change

 Homes

 DollarValue

 Average Price

 Homes

 DollarValue

 Average Price

 Homes

 DollarValue

 Average Price

(Dollars in thousands)

Arizona

400

$

124,619

$

311.5

361

$

106,038

$

293.7

11%

18%

6%

California

439

268,229

611.0

317

193,515

610.5

38%

39%

0%

Nevada

402

141,820

352.8

255

90,260

354.0

58%

57%

(0)%

Washington

192

98,170

511.3

159

71,593

450.3

21%

37%

14%

West

1,433

632,838

441.6

1,092

461,406

422.5

31%

37%

5%

Colorado

750

363,328

484.4

602

293,675

487.8

25%

24%

(1)%

Utah

81

32,568

402.1

90

32,510

361.2

(10)%

0%

11%

Mountain

831

395,896

476.4

692

326,185

471.4

20%

21%

1%

Maryland

99

44,363

448.1

117

57,445

491.0

(15)%

(23)%

(9)%

Virginia

103

58,894

571.8

115

58,777

511.1

(10)%

0%

12%

Florida

202

79,108

391.6

163

61,802

379.2

24%

28%

3%

East

404

182,365

451.4

395

178,024

450.7

2%

2%

0%

Total

2,668

$

1,211,099

$

453.9

2,179

$

965,615

$

443.1

22%

25%

2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

 Three Months Ended June 30, 

2017

2016

% Change

Homes

DollarValue

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

230

$

75,049

$

326.3

2.89

236

$

70,699

$

299.6

2.62

(3)%

6%

9%

10%

California

234

143,208

612.0

4.59

308

177,934

577.7

5.33

(24)%

(20)%

6%

(14)%

Nevada

267

92,407

346.1

4.45

230

80,263

349.0

3.48

16%

15%

(1)%

28%

Washington

127

68,876

542.3

4.34

118

55,934

474.0

3.42

8%

23%

14%

27%

West

858

379,540

442.4

3.90

892

384,830

431.4

3.59

(4)%

(1)%

3%

9%

Colorado

458

215,472

470.5

3.59

413

192,543

466.2

4.02

11%

12%

1%

(11)%

Utah

67

29,046

433.5

3.19

77

28,057

364.4

3.21

(13)%

4%

19%

(1)%

Mountain

525

244,518

465.7

3.54

490

220,600

450.2

3.87

7%

11%

3%

(9)%

Maryland

32

14,819

463.1

1.19

69

31,918

462.6

1.67

(54)%

(54)%

0%

(29)%

Virginia

63

32,790

520.5

4.20

73

36,892

505.4

2.95

(14)%

(11)%

3%

42%

Florida

120

38,940

324.5

2.05

122

48,236

395.4

2.32

(2)%

(19)%

(18)%

(12)%

East

215

86,549

402.6

2.14

264

117,046

443.4

2.23

(19)%

(26)%

(9)%

(4)%

Total

1,598

$

710,607

$

444.7

3.41

1,646

$

722,476

$

438.9

3.34

(3)%

(2)%

1%

2%

 Six Months Ended June 30, 

2017

2016

% Change

Homes

DollarValue

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

446

$

143,119

$

320.9

2.86

459

$

139,785

$

304.5

2.49

(3)%

2%

5%

15%

California

477

298,621

626.0

4.31

537

321,162

598.1

4.54

(11)%

(7)%

5%

(5)%

Nevada

562

192,898

343.2

4.65

459

160,074

348.7

3.57

22%

21%

(2)%

30%

Washington

266

144,368

542.7

4.14

242

116,073

479.6

3.17

10%

24%

13%

31%

West

1,751

779,006

444.9

3.88

1,697

737,094

434.4

3.34

3%

6%

2%

16%

Colorado

959

456,162

475.7

3.93

906

428,747

473.2

4.11

6%

6%

1%

(4)%

Utah

123

52,616

427.8

2.52

143

52,629

368.0

3.03

(14)%

(0)%

16%

(17)%

Mountain

1,082

508,778

470.2

3.69

1,049

481,376

458.9

3.92

3%

6%

2%

(6)%

Maryland

83

37,189

448.1

1.49

158

74,068

468.8

2.09

(47)%

(50)%

(4)%

(29)%

Virginia

127

67,229

529.4

3.61

158

81,036

512.9

3.07

(20)%

(17)%

3%

18%

Florida

251

91,117

363.0

2.20

230

96,279

418.6

2.42

9%

(5)%

(13)%

(9)%

East

461

195,535

424.2

2.25

546

251,383

460.4

2.46

(16)%

(22)%

(8)%

(9)%

Total

3,294

$

1,483,319

$

450.3

3.47

3,292

$

1,469,853

$

446.5

3.30

0%

1%

1%

5%

* 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

Average Active Subdivisions

Active Subdivisions

Three Months Ended

Six Months Ended

June 30,

%

June 30,

%

June 30,

%

2017

2016

Change

2017

2016

Change

2017

2016

Change

Arizona

26

30

(13)%

27

30

(10)%

26

31

(16)%

California

17

20

(15)%

17

19

(11)%

18

20

(10)%

Nevada

18

22

(18)%

20

22

(9)%

20

21

(5)%

Washington

9

10

(10)%

10

12

(17)%

11

13

(15)%

West

70

82

(15)%

74

83

(11)%

75

85

(12)%

Colorado

44

28

57%

43

34

26%

41

37

11%

Utah

6

8

(25)%

7

8

(13)%

8

8

0%

Mountain

50

36

39%

50

42

19%

49

45

9%

Maryland

9

13

(31)%

9

14

(36)%

9

13

(31)%

Virginia

5

9

(44)%

5

8

(38)%

6

9

(33)%

Florida

19

19

0%

20

18

11%

19

16

19%

East

33

41

(20)%

34

40

(15)%

34

38

(11)%

Total

153

159

(4)%

158

165

(4)%

158

168

(6)%

 

Backlog

At June 30,

2017

2016

% Change

Homes

DollarValue

Average Price

Homes

DollarValue

Average Price

Homes

DollarValue

Average Price

(Dollars in thousands)

Arizona

368

$

125,097

$

339.9

419

$

129,591

$

309.3

(12)%

(3)%

10%

California

519

347,822

670.2

562

360,450

641.4

(8)%

(4)%

4%

Nevada

467

160,349

343.4

399

138,604

347.4

17%

16%

(1)%

Washington

311

169,045

543.6

262

127,968

488.4

19%

32%

11%

West

1,665

802,313

481.9

1,642

756,613

460.8

1%

6%

5%

Colorado

1,173

571,956

487.6

1,126

546,356

485.2

4%

5%

0%

Utah

146

62,225

426.2

161

59,133

367.3

(9)%

5%

16%

Mountain

1,319

634,181

480.8

1,287

605,489

470.5

2%

5%

2%

Maryland

76

38,329

504.3

131

61,623

470.4

(42)%

(38)%

7%

Virginia

135

70,384

521.4

144

76,278

529.7

(6)%

(8)%

(2)%

Florida

315

132,628

421.0

241

107,679

446.8

31%

23%

(6)%

East

526

241,341

458.8

516

245,580

475.9

2%

(2)%

(4)%

Total

3,510

$

1,677,835

$

478.0

3,445

$

1,607,682

$

466.7

2%

4%

2%

 

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

June 30,

%

2017

2016

Change

Unsold:

Completed

77

100

(23)%

Under construction

153

263

(42)%

Total unsold started homes

230

363

(37)%

Sold homes under construction or completed

2,547

2,535

0%

Model homes under construction or completed

316

289

9%

Total homes completed or under construction

3,093

3,187

(3)%

 

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

June 30, 2017

June 30, 2016

Lots Owned

Lots Optioned

Total

Lots Owned

Lots Optioned

Total

Total % Change

Arizona

1,794

553

2,347

1,565

259

1,824

29%

California

1,491

502

1,993

1,834

79

1,913

4%

Nevada

1,709

907

2,616

2,087

67

2,154

21%

Washington

671

49

720

816

35

851

(15)%

West

5,665

2,011

7,676

6,302

440

6,742

14%

Colorado

4,684

1,934

6,618

3,937

1,423

5,360

23%

Utah

302

123

425

424

-

424

0%

Mountain

4,986

2,057

7,043

4,361

1,423

5,784

22%

Maryland

142

69

211

297

168

465

(55)%

Virginia

283

37

320

498

107

605

(47)%

Florida

928

916

1,844

1,038

512

1,550

19%

East

1,353

1,022

2,375

1,833

787

2,620

(9)%

Total

12,004

5,090

17,094

12,496

2,650

15,146

13%

 

M.D.C. HOLDINGS, INC.

Other Financial Data

Selling, General and Administrative Expense

Three Months Ended June 30,

Six Months Ended June 30,

2017

2016

Change

2017

2016

Change

(Dollars in thousands)

General and administrative expenses

$

32,292

$

31,414

$

878

$

64,661

$

62,880

$

1,781

General and administrative expense as a percentage of home sale revenues

5.0%

5.5%

(50) bps

5.3%

6.5%

(120) bps

Marketing expenses

$

16,976

$

14,433

$

2,543

$

32,100

$

26,466

$

5,634

Marketing expenses as a percentage of home sale revenues

2.6%

2.5%

10 bps

2.7%

2.7%

0 bps

Commissions expenses

$

21,441

$

18,593

$

2,848

$

40,246

$

31,371

$

8,875

Commissions expenses as a percentage of home sale revenues

3.3%

3.3%

0 bps

3.3%

3.2%

10 bps

Total selling, general and administrative expenses

$

70,709

$

64,440

$

6,269

$

137,007

$

120,717

$

16,290

Total selling, general and administrative expenses as a percentage of home sale revenues

10.9%

11.3%

(40) bps

11.3%

12.5%

(120) bps

 

Capitalized Interest

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2016

2017

2016

(Dollars in thousands)

Homebuilding interest incurred

$

13,194

$

13,106

$

26,382

$

26,324

Less:  Interest capitalized

(13,194)

(13,106)

(26,382)

(26,324)

Homebuilding interest expensed

$

-

$

-

$

-

$

-

Interest capitalized, beginning of period

$

66,076

$

79,783

$

68,085

$

77,541

Plus: Interest capitalized during period

13,194

13,106

26,382

26,324

Less: Previously capitalized interest included in home and land cost of sales

(17,179)

(15,739)

(32,376)

(26,715)

Interest capitalized, end of period

$

62,091

$

77,150

$

62,091

$

77,150

 

View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-second-quarter-results-300497075.html

SOURCE M.D.C. Holdings, Inc.


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