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
|
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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.