M.D.C. Holdings Announces 2019 Fourth Quarter And Full Year Results

Datum : 30/01/2020 @ 12h00
Quelle : PR Newswire (US)
Name : M D C Holdings Inc (MDC)
Kurs : 36.65  1.14 (3.21%) @ 22h01
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M.D.C. Holdings Announces 2019 Fourth Quarter And Full Year Results

M D C (NYSE:MDC)
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DENVER, Jan. 30, 2020 /PRNewswire/ -- 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, 2019.

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "MDC finished the year on a strong note, generating fully diluted earnings per share of $1.42 in the fourth quarter, a 61% increase as compared to last year.  We also achieved year-over-year improvements in our homebuilding gross margin and SG&A leverage, resulting in homebuilding operating margin expansion of 150 basis points.  The sales environment continues to be favorable, as evidenced by the 49% growth in unit orders for the quarter.  These demand trends have carried into the new year, giving our business strong momentum as we head into the spring selling season."

Mr. Mizel continued, "For the full year 2019, we posted year-over-year improvements to both revenue and profitability, which resulted in fully diluted earnings per share of $3.72.  This marks our fifth consecutive year of net income growth, and we are well positioned to continue that trend in 2020 thanks to a 29% increase in homes in backlog to start the year.  We also ended the year in a strong financial position with a year-over-year decrease in our debt to capital ratio and a maturity schedule that was further enhanced earlier this month by the issuance of $300 million of 3.850% senior notes due 2030."

Mr. Mizel concluded, "As we enter 2020, we will continue to focus on the more affordable segments of the market due to the ongoing lack of supply and broad-based demand we have witnessed.  We believe this favorable supply-demand environment will remain in place for some time given the demographic shifts occurring in this country. These factors, coupled with our solid market positioning and growing backlog, provided us with the confidence to increase our cash dividend by 10% just a few days ago."

2019 Fourth Quarter Highlights and Comparisons to 2018 Fourth Quarter


  • Home sale revenues up 25% to $1,074.9 million from $858.5 million
    • Unit deliveries up 31% to 2,389
    • Average selling price of deliveries down 4% to $450,000
  • Net income of $92.6 million, or $1.42 per diluted share, up 69% from $54.7 million or $0.88 per diluted share1
    • Effective tax rate of 17.5% vs. 21.0%
  • Gross margin from home sales up 40 basis points to 18.5% from 18.1%
    • Inventory impairments of $0.3 million vs. $10.0 million
  • Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 110 basis points to 9.8% from 10.9%
  • Dollar value of net new orders up 51% to $684.9 million from $453.3 million
    • Unit net orders increased 49% to 1,574
    • Monthly sales absorption pace increased 28% to 2.8
    • Average selling price of net orders up 2% to $435,000

2019 Full Year Highlights and Comparisons to 2018 Full Year


  • Home sale revenues up 7% to $3.21 billion from $2.98 billion
    • Unit deliveries up 13% to 6,974
  • Net income of $238.3 million, or $3.72 per diluted share, up 13% from $210.8 million or $3.39 per diluted share1
    • Third highest net income in Company history
  • Gross margin from home sales of 18.8% vs. 18.3%
    • Inventory impairments of $0.9 million vs. $21.9 million
  • SG&A rate of 11.3% vs. 11.1%
  • Dollar value of net new orders up 26% to $3.50 billion from $2.77 billion
    • Unit net orders increased 31% to 7,839
    • Monthly sales absorption pace increased 13% to 3.6

1 Per share amount for the 2018 fourth quarter and full year have been adjusted for the 8% stock dividend declared and paid in the 2019 first quarter.



2020 Outlook – Selected Information2


  • Backlog dollar value at December 31, 2019 up 22% year-over-year to $1.75 billion
  • Home deliveries for the 2020 first quarter between 1,550 and 1,650
    • Average selling price for 2020 first quarter unit deliveries between $450,000 and $460,000
    • Gross margin from home sales for the 2020 first quarter between 18.8% and 19.2% (excluding impairments and warranty adjustments)
  • Active subdivision count at December 31, 2019 of 185, up 11% year-over-year
  • Lots controlled of 27,386 at December 31, 2019, up 18% year-over-year
  • Declared 10% increase in quarterly dividend to $0.33 ($1.32 annualized) in January 2020

2 See "Forward-Looking Statements" below.

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 205,000 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 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, 2019, 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

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2019


2018


2019


2018


(Dollars in thousands, except per share amounts)

Homebuilding:







Home sale revenues

$

1,074,852


$

858,488


$

3,205,248


$

2,981,811

Home cost of sales


(876,156)



(692,856)



(2,600,196)



(2,415,139)

Inventory impairments


(325)



(10,002)



(935)



(21,850)

Total cost of sales


(876,481)



(702,858)



(2,601,131)



(2,436,989)

Gross margin


198,371



155,630



604,117



544,822

Selling, general and administrative expenses


(105,101)



(93,366)



(362,790)



(329,801)

Interest and other income


1,579



2,132



9,070



7,718

Other expense


(1,447)



(2,683)



(5,635)



(5,245)

Homebuilding pretax income


93,402



61,713



244,762



217,494













Financial Services:












Revenues


29,616



23,387



88,005



83,405

Expenses


(16,118)



(10,350)



(45,001)



(38,200)

Other income (expense), net


5,346



(5,464)



17,223



1,155

Financial services pretax income


18,844



7,573



60,227



46,360













Income before income taxes


112,246



69,285



304,989



263,854

Provision for income taxes


(19,657)



(14,562)



(66,677)



(53,074)

Net income

$

92,589


$

54,723


$

238,312


$

210,780













Comprehensive income

$

92,589


$

54,723


$

238,312


$

210,780













Earnings per share












Basic

$

1.48


$

0.90


$

3.84


$

3.46

Diluted

$

1.42


$

0.88


$

3.72


$

3.39













Weighted average common shares outstanding












Basic


62,192,849



60,764,617



61,616,988



60,571,123

Diluted


64,609,357



61,712,544



63,702,666



61,830,761













Dividends declared per share

$

0.30


$

0.28


$

1.18


$

1.11

 

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Unaudited)



December 31,


December 31,


2019


2018

ASSETS

(Dollars in thousands, except


per share amounts)

Homebuilding:





Cash and cash equivalents

$

424,186


$

414,724

Restricted cash


14,279



6,363

Trade and other receivables


65,829



52,982

Inventories:






Housing completed or under construction


1,036,191



952,436

Land and land under development


1,330,384



1,180,558

Total inventories


2,366,575



2,132,994

Property and equipment, net


60,414



58,167

Deferred tax assets, net


21,768



37,178

Prepaid and other assets


78,358



45,794

Total homebuilding assets


3,031,409



2,748,202

Financial Services:






Cash and cash equivalents


35,747



49,052

Marketable securities


56,747



40,879

Mortgage loans held-for-sale, net


197,021



149,211

Other assets


17,432



13,733

Total financial services assets


306,947



252,875

      Total Assets

$

3,338,356


$

3,001,077

LIABILITIES AND EQUITY






Homebuilding:






Accounts payable

$

87,364


$

50,505

Accrued and other liabilities


245,940



196,247

Revolving credit facility


15,000



15,000

Senior notes, net


989,422



987,967

Total homebuilding liabilities


1,337,726



1,249,719

Financial Services:






Accounts payable and accrued liabilities


68,529



58,543

Mortgage repurchase facility


149,616



116,815

Total financial services liabilities


218,145



175,358

      Total Liabilities


1,555,871



1,425,077

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; 62,574,961 and 56,615,352 issued and outstanding at December 31, 2019 and December 31, 2018, respectively







626



566

Additional paid-in-capital


1,348,733



1,168,442

Retained earnings


433,126



406,992

Total Stockholders' Equity


1,782,485



1,576,000

Total Liabilities and Stockholders' Equity

$

3,338,356


$

3,001,077







 

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

(Unaudited)



Three Months Ended


Year Ended


December 31,


December 31,


2019


2018


2019


2018


(Dollars in thousands)

Operating Activities:












Net income

$

92,589


$

54,725


$

238,312


$

210,780

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























Stock-based compensation expense


7,838



5,517



26,016



14,017

Depreciation and amortization


7,576



5,920



23,054



21,326

Inventory impairments


325



10,002



935



21,850

Net loss on marketable equity securities


(3,863)



6,873



(11,797)



3,745

Amortization of discount / premiums on marketable debt securities


-



-



-



(366)

Deferred income tax expense (benefit)


4,182



(363)



13,670



3,729

Net changes in assets and liabilities:












      Trade and other receivables


(8,315)



2,411



(12,997)



(4,638)

      Mortgage loans held-for-sale


(80,001)



(34,375)



(47,810)



(11,097)

      Housing completed or under construction


168,265



119,575



(83,484)



(12,082)

      Land and land under development


(139,116)



(154,287)



(149,577)



(304,250)

      Prepaid expenses and other assets


(805)



12,083



(4,694)



(245)

      Accounts payable and accrued liabilities


42,276



23,259



66,205



49,325

Net cash provided by (used in) operating activities


90,951



51,340



57,833



(7,906)













Investing Activities:












Purchases of marketable securities


(1,368)



(1,667)



(11,708)



(18,850)

Maturities of marketable securities


-



-



-



50,000

Sales of marketable securities


1,360



2,920



7,637



16,230

Purchases of property and equipment


(4,586)



(7,267)



(24,714)



(27,166)

Net cash provided by (used in) investing activities


(4,594)



(6,014)



(28,785)



20,214













Financing Activities:












Advances on mortgage repurchase facility, net


59,145



26,031



32,801



4,475

Dividend payments


(18,780)



(16,985)



(73,117)



(67,718)

Payments of deferred financing costs


-



(3,026)



-



(3,026)

Issuance of shares under stock-based compensation programs, net


(963)



1



15,341



9,860

Net cash provided by (used in) financing activities


39,402



6,021



(24,975)



(56,409)













Net increase (decrease) in cash, cash equivalents and restricted cash


125,759



51,347



4,073



(44,101)

Cash, cash equivalents and restricted cash:












Beginning of period


348,453



418,792



470,139



514,240

End of period

$

424,212


$

470,139


$

474,212


$

470,139













Reconciliation of cash, cash equivalents and restricted cash:












Homebuilding:












Cash and cash equivalents

$

424,186


$

414,724


$

424,186


$

414,724

Restricted cash


14,279



6,363



14,279



6,363

Financial Services:












Cash and cash equivalents


35,747



49,052



35,747



49,052

Total cash, cash equivalents and restricted cash

$

474,212


$

470,139


$

474,212


$

470,139













 

New Home Deliveries




 Three Months Ended December 31, 



2019


2018


 % Change



 Homes


 Dollar

Value


 Average
Price


 Homes


 Dollar

Value


 Average
Price


 Homes


 Dollar Value


 Average
Price



(Dollars in thousands)


West

1,299


$

606,558


$

466.9


958


$

446,826


$

466.4


36%


36%


0%


Mountain

762



371,098



487.0


645



330,315



512.1


18%


12%


(5)%


East

328



97,196



296.3


224



81,348



363.2


46%


19%


(18)%


Total

2,389


$

1,074,852


$

449.9


1,827


$

858,489


$

469.9


31%


25%


(4)%






 Year Ended December 31, 



2019


2018


 % Change



 Homes


 Dollar

Value


 Average
Price


 Homes


 Dollar

Value


 Average
Price


 Homes


 Dollar

Value


 Average
Price



(Dollars in thousands)


West

3,763


$

1,771,061


$

470.7


3,244


$

1,567,141


$

483.1


16%


13%


(3)%


Mountain

2,242



1,131,568



504.7


2,118



1,080,475



510.1


6%


5%


(1)%


East

969



302,619



312.3


835



334,195



400.2


16%


(9)%


(22)%


Total

6,974


$

3,205,248


$

459.6


6,197


$

2,981,811


$

481.2


13%


7%


(4)%

 

Net New Orders



 Three Months Ended December 31, 


2019


2018


% 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

884


$

400,147


$

452.7


3.19


573


$

250,647


$

437.4


2.51


54%


60%


3%


27%

Mountain

436



212,772



488.0


2.21


315



149,583



474.9


1.60


38%


42%


3%


38%

East

254



71,950



283.3


2.80


171



53,028



310.1


2.78


49%


36%


(9)%


1%

Total

1,574


$

684,869


$

435.1


2.79


1,059


$

453,258


$

428.0


2.18


49%


51%


2%


28%






 Year Ended December 31, 


2019


2018


% 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

4,263


$

1,963,489


$

460.6


3.91


3,316


$

1,535,438


$

463.0


3.71


29%


28%


(1)%


5%

Mountain

2,410



1,189,193



493.4


3.04


1,908



972,826



509.9


2.63


26%


22%


(3)%


15%

East

1,166



342,469



293.7


3.68


750



262,518



350.0


2.78


55%


30%


(16)%


32%

Total

7,839


$

3,495,151


$

445.9


3.56


5,974


$

2,770,782


$

463.8


3.16


31%


26%


(4)%


13%

 

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

 

Active Subdivisions










Average Active Subdivisions



Active Subdivisions


Three Months Ended


Year Ended



December 31,


%


December 31,


%


December 31,


%



2019


2018


Change


2019


2018


Change


2019


2018


Change


West

89


79


13%


92


76


21%


90


75


20%


Mountain

65


67


(3)%


66


65


2%


66


60


10%


East

31


20


55%


30


21


43%


27


22


23%


Total

185


166


11%


188


162


16%


183


157


17%

 

Backlog




At December 31,



2019


2018


% Change



Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price


Homes


Dollar

Value


Average Price



(Dollars in thousands)


West

2,023


$

960,057


$

474.6


1,523


$

756,335


$

496.6


33%


27%


(4)%


Mountain

1,211



624,672



515.8


1,043



550,329



527.6


16%


14%


(2)%


East

567



160,618



283.3


370



119,303



322.4


53%


35%


(12)%


Total

3,801


$

1,745,347


$

459.2


2,936


$

1,425,967


$

485.7


29%


22%


(5)%

 

Homes Completed or Under Construction (WIP lots)




December 31,





2019


2018


% Change


Unsold:







Completed

122


179


(32)%


Under construction

255


263


(3)%


Total unsold started homes

377


442


(15)%


Sold homes under construction or completed

2,779


2,219


25%


Model homes under construction or completed

473


407


16%


Total homes completed or under construction

3,629


3,068


18%

 

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




December 31, 2019


December 31, 2018





Lots Owned


Lots Optioned


Total


Lots Owned


Lots Optioned


Total


Total % Change


West

9,538


2,805


12,343


8,093


3,004


11,097


11%


Mountain

6,654


3,879


10,533


6,305


2,477


8,782


20%


East

2,313


2,197


4,510


1,899


1,409


3,308


36%


Total

18,505


8,881


27,386


16,297


6,890


23,187


18%

 

Selling, General and Administrative Expenses




Three Months Ended December 31,


Year Ended December 31,



2019


2018


Change


2019


2018


Change



(Dollars in thousands)


General and administrative expenses

$

46,178


$

45,317


$

861


$

175,027


$

161,679


$

13,348


General and administrative expenses



















as a percentage of home sale revenues


4.3%



5.3%



(100) bps



5.5%



5.4%



10 bps





















Marketing expenses

$

23,349


$

19,234


$

4,115


$

81,615


$

70,122


$

11,493


Marketing expenses as a percentage of



















home sale revenues


2.2%



2.2%



0 bps



2.5%



2.4%



10 bps





















Commissions expenses

$

35,574


$

28,815


$

6,759


$

106,148


$

98,000


$

8,148


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

$

105,101


$

93,366


$

11,735


$

362,790


$

329,801


$

32,989


Total selling, general and administrative



















expenses as a percentage of home



















sale revenues (SG&A Rate)


9.8%



10.9%



(110) bps



11.3%



11.1%



20 bps

 

Capitalized Interest




Year Ended December 31,



2019


2018


2017



(Dollars in thousands)


Homebuilding interest incurred

$

63,635


$

62,631


$

55,170


Less:  Interest capitalized


(63,635)



(62,631)



(55,170)


Homebuilding interest expensed

$

-


$

-


$

-












Interest capitalized, beginning of period

$

54,845


$

57,541


$

68,085


Plus: Interest capitalized during period


63,635



62,631



55,170


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


(63,170)



(65,327)



(65,714)


Interest capitalized, end of period

$

55,310


$

54,845


$

57,541

 

Cision View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2019-fourth-quarter-and-full-year-results-300995816.html

SOURCE M.D.C. Holdings, Inc.

Copyright 2020 PR Newswire

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Der Markt LS (Lang&Schwarz) wird als Realtime Indikation kostenlos angezeigt und bietet Ihnen außerbörsliche Realtime Aktienkurse in der Zeit von Mo-Fr 08:00 bis 23:00, Samstags 10:00 bis 13:00 und Sonntags an.
NYSE und AMEX Kurse sind um mindestens 20 Minuten zeitverzögert.
Alle weiteren Kurse sind um mindestens 15 Minuten zeitverzögert, sofern nicht anders angegeben.
P: V:de D:20200606 02:50:56