DENVER, Oct. 29, 2020 /PRNewswire/ -- M.D.C
Holdings, Inc. (NYSE: MDC), one of the nation's leading
homebuilders, announced results for the quarter ended September 30, 2020.
Larry A. Mizel, MDC's newly
appointed Executive Chairman, stated, "MDC posted another quarter
of significant top and bottom line growth in the third quarter of
2020. Home sales revenue grew 33% year-over-year, while net income
rose at nearly three times that rate thanks to the operational
leverage we were able to achieve in the quarter. Both our home sale
gross margin and our SG&A leverage improved during the quarter,
a testament to our ability to drive revenue growth while keeping
costs in check."
Mr. Mizel continued, "We experienced extremely strong order
activity in the third quarter, with net new orders up 73%
year-over-year on an absorption pace of 6.1 homes per community per
month. The demand has been broad-based both from a geographic and
buyer segment standpoint, allowing us to implement price increases
at a majority of our communities during the quarter. We believe
this demand is being driven by a number of factors, including low
interest rates, scarce resale inventory and an accelerating
demographic shift towards homebuying."
Mr. Mizel concluded, "MDC remains well positioned to take
advantage of the shifts we are seeing in our industry thanks to our
focus on the more affordable segments of the market, our geographic
footprint and our build-to-order operating model. The favorable
industry fundamentals we are experiencing coupled with our market
positioning and strategic focus has our Company primed for growth.
With a backlog sales value at the end of the quarter nearly 50%
higher than a year ago, we expect to end 2020 on a strong note and
carry that momentum into 2021."
Dividend Increase
The Company also announced that its board of directors has
declared a quarterly cash dividend of forty
cents ($0.40) per share on the
Company's common stock. The dividend will be paid on Tuesday, November 24th, 2020 to shareholders of
record on Tuesday, November 10th,
2020.
Mr. Mizel said, "The dividend increase this quarter reflects our
continued confidence in the time-tested operating strategy that we
execute at the Company. The dividend has been a key element in our
long-standing efforts to generate strong risk-adjusted returns for
our shareholders."
Management Promotions and Changes
Additionally, the Company disclosed a number of promotions and
changes with the Company's senior management team.
Mr. Mizel will continue his leadership role with MDC as the
newly appointed Executive Chairman. As Executive Chairman,
Mr. Mizel will continue to be actively involved in all aspects of
the Company's operations and continue to set the strategic
direction for MDC. Mr. Mizel founded the Company in 1972 and
has served as a Director and Chairman since that time.
David D. Mandarich has been
appointed as the new President and Chief Executive Officer of
MDC. Mr. Mandarich has been associated with the Company since
1977 and has served as President and Chief Operating Officer of the
Company since 1999. He has also served as a member of the Company's
Board of Directors for 35 years.
Rebecca Givens has been appointed
as Senior Vice President and General Counsel of MDC, following the
retirement of Michael Touff, who
served in the role for more than 25 years. Ms. Givens joins the
Company with over 30 years of experience in the Legal field, most
recently as Senior Vice President & General Counsel for
Spectrum Retirement Communities.
Staci Woolsey has been appointed
as Chief Accounting Officer of MDC. In this role, Staci will
have oversight over corporate and divisional accounting, financial
reporting, planning and analysis, audit and office
administration. Ms. Woolsey joined the Company in
November 2018 as Vice President and
Corporate Controller and is an accomplished finance executive with
more than twenty years of global accounting, finance and leadership
experience.
David Viger has been promoted to
serve as Chief Operating Officer for Richmond American Homes. In
this new role, Mr. Viger will have direct management responsibility
for most of MDC's Richmond American subsidiaries. Mr. Viger joined
the Company in 2004 and, prior to his promotion to Regional
President in 2015, served as Division President for several
different markets across the country.
Anthony Berris has been promoted
to President of Financial Services, continuing in his role as
President of HomeAmerican Mortgage Corporation ("HMC") but also
adding increased oversight responsibility over our other four
financial services entities. Anthony joined HMC in 2006 and
was promoted to President of HMC in 2012.
Dawn Huth has been promoted to
Senior Vice President of National Finance for Richmond American
Homes, overseeing the division finance function for our
homebuilding operations. She joined the Company in 2009 in an
Audit Management role, and in 2014 she was promoted to Vice
President of Division Finance.
"The promotion of key leaders in our organization is a critical
step in the evolution of our Company," said Mr. Mizel. "As a part
of our expanding leadership team, I am confident that they will
help continue MDC's long-standing excellence in generating strong
risk-adjusted returns for its shareholders."
Mr. Mizel concluded, "On behalf of the Board of Directors and
executive management team, I want to express my sincere gratitude
to Michael Touff, who is retiring
after 26 years of service to our Company. Michael's leadership and
counsel will be missed and we wish him all the best in his
retirement."
2020 Third Quarter
Highlights and Comparisons to 2019 Third Quarter
|
|
• Home sale revenues increased 33% to $1.0 billion from
$750.3 million
|
|
• Unit
deliveries up 25% to 2,147
|
|
• Average selling price of deliveries up 6% to
$466,000
|
• Homebuilding
pretax income increased 109% to $101.7 million from
$48.7 million
|
|
• Gross margin from home sales increased 170 basis
points to 20.5% from 18.8%
|
|
• Selling, general and administrative expenses as a
percentage of home sale revenues ("SG&A rate") improved by 200
basis points to 10.4%
|
• Financial services pretax income increased 73% to
$24.4 million vs. $14.1 million
|
• Net income of $98.9 million, or $1.49 per diluted
share, up 96% from $50.6 million or $0.79 per diluted
share
|
|
• Effective tax rate of 21.5% vs. 19.5%
|
•
Dollar value of net new orders increased
89% to $1.65 billion from $871.7 million
|
|
•
Unit net orders increased 73% to
3,515
|
|
• Average selling price of net orders up 10%
|
• Dollar value of ending backlog
up 47% to $3.08 billion from $2.10 billion
|
|
• Unit backlog increased 41% to 6,511
|
|
•
Average selling price of homes in backlog
up 4%
|
|
|
2020/2021 Outlook and
Other Selected Information1
|
|
|
• Home deliveries for the 2020 fourth quarter between
2,400 and 2,600
|
|
• Average selling price for 2020 fourth quarter unit
deliveries exceeding $460,000
|
|
• Gross margin
from home sales for the 2020 fourth quarter approaching 21%
(excluding impairments and warranty adjustments)
|
• Preliminary target of at least 10,000 home deliveries
for 2021
|
• Lots controlled of 26,830 at September 30, 2020, up
8% year-over-year
|
•
Quarterly cash dividend of forty cents
($0.40) per share declared on October 26, 2020, up 21% from the
prior quarter and 33% from the prior year
|
|
1 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 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 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 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-Q for the quarter ended September 30, 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.
M.D.C. HOLDINGS,
INC.
|
Consolidated
Statements of Operations and Comprehensive Income
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share amounts)
|
Homebuilding:
|
|
|
|
|
|
|
|
Home sale
revenues
|
$
|
1,000,549
|
|
|
$
|
750,274
|
|
|
$
|
2,584,392
|
|
|
$
|
2,130,396
|
|
Home cost of
sales
|
(795,172)
|
|
|
(609,316)
|
|
|
(2,061,608)
|
|
|
(1,724,040)
|
|
Inventory
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
(610)
|
|
Total cost of
sales
|
(795,172)
|
|
|
(609,316)
|
|
|
(2,061,608)
|
|
|
(1,724,650)
|
|
Gross
profit
|
205,377
|
|
|
140,958
|
|
|
522,784
|
|
|
405,746
|
|
Selling, general and
administrative expenses
|
(103,632)
|
|
|
(92,716)
|
|
|
(285,269)
|
|
|
(257,689)
|
|
Interest and other
income
|
756
|
|
|
2,336
|
|
|
3,365
|
|
|
7,491
|
|
Other
expense
|
(851)
|
|
|
(1,887)
|
|
|
(4,640)
|
|
|
(4,188)
|
|
Homebuilding pretax
income
|
101,650
|
|
|
48,691
|
|
|
236,240
|
|
|
151,360
|
|
|
|
|
|
|
|
|
|
Financial
Services:
|
|
|
|
|
|
|
|
Revenues
|
36,803
|
|
|
22,388
|
|
|
91,653
|
|
|
58,389
|
|
Expenses
|
(13,294)
|
|
|
(10,352)
|
|
|
(36,401)
|
|
|
(28,883)
|
|
Other income
(expense), net
|
859
|
|
|
2,079
|
|
|
(5,274)
|
|
|
11,877
|
|
Financial services
pretax income
|
24,368
|
|
|
14,115
|
|
|
49,978
|
|
|
41,383
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
126,018
|
|
|
62,806
|
|
|
286,218
|
|
|
192,743
|
|
Provision for income
taxes
|
(27,080)
|
|
|
(12,226)
|
|
|
(66,124)
|
|
|
(47,020)
|
|
Net income
|
$
|
98,938
|
|
|
$
|
50,580
|
|
|
$
|
220,094
|
|
|
$
|
145,723
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
$
|
98,938
|
|
|
$
|
50,580
|
|
|
$
|
220,094
|
|
|
$
|
145,723
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
1.54
|
|
|
$
|
0.81
|
|
|
$
|
3.46
|
|
|
$
|
2.36
|
|
Diluted
|
$
|
1.49
|
|
|
$
|
0.79
|
|
|
$
|
3.37
|
|
|
$
|
2.29
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
63,868,486
|
|
|
61,978,195
|
|
|
63,129,077
|
|
|
61,422,925
|
|
Diluted
|
65,824,910
|
|
|
63,968,215
|
|
|
64,969,855
|
|
|
63,360,535
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.33
|
|
|
$
|
0.30
|
|
|
$
|
0.99
|
|
|
$
|
0.90
|
|
M.D.C. HOLDINGS,
INC.
|
Consolidated
Balance Sheets
|
(Unaudited)
|
|
|
September 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
(Dollars in
thousands, except
per share amounts)
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$
|
432,277
|
|
|
$
|
424,186
|
|
Restricted
cash
|
19,732
|
|
|
14,279
|
|
Trade and other
receivables
|
90,609
|
|
|
65,829
|
|
Inventories:
|
|
|
|
Housing completed or
under construction
|
1,423,855
|
|
|
1,036,191
|
|
Land and land under
development
|
1,221,854
|
|
|
1,330,384
|
|
Total
inventories
|
2,645,709
|
|
|
2,366,575
|
|
Property and
equipment, net
|
64,024
|
|
|
60,414
|
|
Deferred tax asset,
net
|
13,297
|
|
|
21,768
|
|
Prepaid and other
assets
|
78,421
|
|
|
78,358
|
|
Total homebuilding
assets
|
3,344,069
|
|
|
3,031,409
|
|
Financial
Services:
|
|
|
|
Cash and cash
equivalents
|
70,435
|
|
|
35,747
|
|
Marketable
securities
|
—
|
|
|
56,747
|
|
Mortgage loans
held-for-sale, net
|
160,506
|
|
|
197,021
|
|
Other
assets
|
37,764
|
|
|
17,432
|
|
Total financial
services assets
|
268,705
|
|
|
306,947
|
|
Total
Assets
|
$
|
3,612,774
|
|
|
$
|
3,338,356
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
|
103,260
|
|
|
$
|
87,364
|
|
Accrued and other
liabilities
|
259,261
|
|
|
245,940
|
|
Revolving credit
facility
|
10,000
|
|
|
15,000
|
|
Senior notes,
net
|
1,037,225
|
|
|
989,422
|
|
Total homebuilding
liabilities
|
1,409,746
|
|
|
1,337,726
|
|
Financial
Services:
|
|
|
|
Accounts payable and
accrued liabilities
|
84,168
|
|
|
68,529
|
|
Mortgage repurchase
facility
|
130,861
|
|
|
149,616
|
|
Total financial
services liabilities
|
215,029
|
|
|
218,145
|
|
Total
Liabilities
|
1,624,775
|
|
|
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; 64,865,577 and 62,574,961
issued and outstanding at September 30, 2020 and
December 31, 2019, respectively
|
649
|
|
|
626
|
|
Additional
paid-in-capital
|
1,397,220
|
|
|
1,348,733
|
|
Retained
earnings
|
590,130
|
|
|
433,126
|
|
Total Stockholders'
Equity
|
1,987,999
|
|
|
1,782,485
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
3,612,774
|
|
|
$
|
3,338,356
|
|
M.D.C. HOLDINGS,
INC.
|
Consolidated
Statement of Cash Flows
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
98,938
|
|
|
$
|
50,580
|
|
|
$
|
220,094
|
|
|
$
|
145,723
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
8,608
|
|
|
9,795
|
|
|
18,536
|
|
|
18,178
|
|
Depreciation and
amortization
|
7,354
|
|
|
5,537
|
|
|
18,881
|
|
|
15,478
|
|
Inventory
impairments
|
—
|
|
|
—
|
|
|
—
|
|
|
610
|
|
Net (gain) loss on
marketable equity securities
|
—
|
|
|
(767)
|
|
|
8,285
|
|
|
(7,934)
|
|
Deferred income tax
expense
|
6,531
|
|
|
1,729
|
|
|
8,493
|
|
|
9,488
|
|
Net changes in assets
and liabilities:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
5,933
|
|
|
(4,646)
|
|
|
(17,512)
|
|
|
(4,682)
|
|
Mortgage loans
held-for-sale, net
|
13,061
|
|
|
(7,683)
|
|
|
36,515
|
|
|
32,191
|
|
Housing completed or
under construction
|
(153,440)
|
|
|
(133,221)
|
|
|
(387,269)
|
|
|
(251,749)
|
|
Land and land under
development
|
13,792
|
|
|
(34,899)
|
|
|
108,710
|
|
|
(10,461)
|
|
Prepaid and other
assets
|
(21,523)
|
|
|
317
|
|
|
(20,314)
|
|
|
(3,889)
|
|
Accounts payable and
accrued liabilities
|
(5,516)
|
|
|
24,475
|
|
|
35,023
|
|
|
23,929
|
|
Net cash provided by
(used in) operating activities
|
(26,262)
|
|
|
(88,783)
|
|
|
29,442
|
|
|
(33,118)
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
—
|
|
|
(5,224)
|
|
|
(10,804)
|
|
|
(10,340)
|
|
Sales of marketable
securities
|
—
|
|
|
1,220
|
|
|
59,266
|
|
|
6,277
|
|
Purchases of property
and equipment
|
(7,917)
|
|
|
(6,268)
|
|
|
(20,885)
|
|
|
(20,128)
|
|
Net cash provided by
(used in) investing activities
|
(7,917)
|
|
|
(10,272)
|
|
|
27,577
|
|
|
(24,191)
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Payments on mortgage
repurchase facility, net
|
(11,233)
|
|
|
7,432
|
|
|
(18,755)
|
|
|
(26,344)
|
|
Payments on
homebuilding line of credit, net
|
—
|
|
|
—
|
|
|
(5,000)
|
|
|
—
|
|
Repayment of senior
notes
|
—
|
|
|
—
|
|
|
(250,000)
|
|
|
—
|
|
Proceeds from issuance
of senior notes
|
—
|
|
|
—
|
|
|
298,050
|
|
|
—
|
|
Dividend
payments
|
(21,374)
|
|
|
(18,701)
|
|
|
(63,056)
|
|
|
(54,337)
|
|
Issuance of shares
under stock-based compensation programs, net
|
28,642
|
|
|
16,304
|
|
|
29,974
|
|
|
16,304
|
|
Net cash (used in) financing
activities
|
(3,965)
|
|
|
(12,293)
|
|
|
(8,787)
|
|
|
(64,377)
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
(38,144)
|
|
|
(111,348)
|
|
|
48,232
|
|
|
(121,686)
|
|
Cash, cash
equivalents and restricted cash:
|
|
|
|
|
|
|
|
Beginning of
period
|
560,588
|
|
|
459,801
|
|
|
474,212
|
|
|
470,139
|
|
End of
period
|
$
|
522,444
|
|
|
$
|
348,453
|
|
|
$
|
522,444
|
|
|
$
|
348,453
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
432,277
|
|
|
$
|
285,338
|
|
|
$
|
432,277
|
|
|
$
|
285,338
|
|
Restricted
cash
|
19,732
|
|
|
16,325
|
|
|
19,732
|
|
|
16,325
|
|
Financial
Services:
|
|
|
-
|
|
|
|
|
Cash and cash
equivalents
|
70,435
|
|
|
46,790
|
|
|
70,435
|
|
|
46,790
|
|
Total cash, cash
equivalents and restricted cash
|
$
|
522,444
|
|
|
$
|
348,453
|
|
|
$
|
522,444
|
|
|
$
|
348,453
|
|
New Home
Deliveries
|
|
|
Three Months Ended
September 30,
|
|
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
|
1,135
|
|
|
$
|
552,319
|
|
|
$
|
486.6
|
|
|
927
|
|
|
$
|
410,414
|
|
|
$
|
442.7
|
|
|
22
|
%
|
|
35
|
%
|
|
10
|
%
|
Mountain
|
677
|
|
|
347,095
|
|
|
512.7
|
|
|
537
|
|
|
263,802
|
|
|
491.2
|
|
|
26
|
%
|
|
32
|
%
|
|
4
|
%
|
East
|
335
|
|
|
101,135
|
|
|
301.9
|
|
|
249
|
|
|
76,058
|
|
|
305.5
|
|
|
35
|
%
|
|
33
|
%
|
|
(1)
|
%
|
Total
|
2,147
|
|
|
$
|
1,000,549
|
|
|
$
|
466.0
|
|
|
1,713
|
|
|
$
|
750,274
|
|
|
$
|
438.0
|
|
|
25
|
%
|
|
33
|
%
|
|
6
|
%
|
|
|
|
Nine Months Ended
September 30,
|
|
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
|
3,023
|
|
|
$
|
1,447,934
|
|
|
$
|
479.0
|
|
|
2,464
|
|
|
$
|
1,164,502
|
|
|
$
|
472.6
|
|
|
23
|
%
|
|
24
|
%
|
|
1
|
%
|
Mountain
|
1,720
|
|
|
886,619
|
|
|
515.5
|
|
|
1,480
|
|
|
760,470
|
|
|
513.8
|
|
|
16
|
%
|
|
17
|
%
|
|
0
|
%
|
East
|
851
|
|
|
249,839
|
|
|
293.6
|
|
|
641
|
|
|
205,424
|
|
|
320.5
|
|
|
33
|
%
|
|
22
|
%
|
|
(8)
|
%
|
Total
|
5,594
|
|
|
$
|
2,584,392
|
|
|
$
|
462.0
|
|
|
4,585
|
|
|
$
|
2,130,396
|
|
|
$
|
464.6
|
|
|
22
|
%
|
|
21
|
%
|
|
(1)
|
%
|
Net New
Orders
|
|
|
Three Months Ended
September 30,
|
|
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
|
1,955
|
|
|
$
|
932,111
|
|
|
$
|
476.8
|
|
|
6.58
|
|
1,168
|
|
|
$
|
516,000
|
|
|
$
|
441.8
|
|
|
4.09
|
|
67
|
%
|
|
81
|
%
|
|
8
|
%
|
|
61
|
%
|
Mountain
|
1,051
|
|
|
542,375
|
|
|
516.1
|
|
|
5.70
|
|
565
|
|
|
271,800
|
|
|
481.1
|
|
|
2.86
|
|
86
|
%
|
|
100
|
%
|
|
7
|
%
|
|
99
|
%
|
East
|
509
|
|
|
176,896
|
|
|
347.5
|
|
|
5.39
|
|
303
|
|
|
83,896
|
|
|
276.9
|
|
|
3.58
|
|
68
|
%
|
|
111
|
%
|
|
26
|
%
|
|
50
|
%
|
Total
|
3,515
|
|
|
$
|
1,651,382
|
|
|
$
|
469.8
|
|
|
6.10
|
|
2,036
|
|
|
$
|
871,696
|
|
|
$
|
428.1
|
|
|
3.59
|
|
73
|
%
|
|
89
|
%
|
|
10
|
%
|
|
70
|
%
|
|
|
Nine Months Ended
September 30,
|
|
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
|
4,646
|
|
|
$
|
2,265,557
|
|
|
$
|
487.6
|
|
|
5.47
|
|
3,379
|
|
|
$
|
1,543,584
|
|
|
$
|
456.8
|
|
|
4.14
|
|
37
|
%
|
|
47
|
%
|
|
7
|
%
|
|
32
|
%
|
Mountain
|
2,502
|
|
|
1,309,176
|
|
|
523.3
|
|
|
4.39
|
|
1,974
|
|
|
960,109
|
|
|
486.4
|
|
|
3.30
|
|
27
|
%
|
|
36
|
%
|
|
8
|
%
|
|
33
|
%
|
East
|
1,156
|
|
|
393,913
|
|
|
340.8
|
|
|
4.23
|
|
912
|
|
|
268,578
|
|
|
294.5
|
|
|
4.02
|
|
27
|
%
|
|
47
|
%
|
|
16
|
%
|
|
5
|
%
|
Total
|
8,304
|
|
|
$
|
3,968,646
|
|
|
$
|
477.9
|
|
|
4.91
|
|
6,265
|
|
|
$
|
2,772,271
|
|
|
$
|
442.5
|
|
|
3.82
|
|
33
|
%
|
|
43
|
%
|
|
8
|
%
|
|
28
|
%
|
|
*Calculated as
total net new orders in period ÷ average active communities during
period ÷ number of months in period
|
Active
Subdivisions
|
|
|
|
|
|
|
|
|
Average Active
Subdivisions
|
|
Average Active
Subdivisions
|
|
Active
Subdivisions
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
%
|
|
September
30,
|
|
%
|
|
September
30,
|
|
%
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
West
|
102
|
|
|
93
|
|
|
10
|
%
|
|
99
|
|
|
96
|
|
|
3
|
%
|
|
94
|
|
|
92
|
|
|
2
|
%
|
Mountain
|
61
|
|
|
67
|
|
|
(9)
|
%
|
|
62
|
|
|
66
|
|
|
(6)
|
%
|
|
63
|
|
|
66
|
|
|
(5)
|
%
|
East
|
31
|
|
|
30
|
|
|
3
|
%
|
|
32
|
|
|
29
|
|
|
10
|
%
|
|
30
|
|
|
25
|
|
|
20
|
%
|
Total
|
194
|
|
|
190
|
|
|
2
|
%
|
|
193
|
|
|
191
|
|
|
1
|
%
|
|
187
|
|
|
183
|
|
|
2
|
%
|
Backlog
|
|
|
September
30,
|
|
2020
|
|
2019
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
3,646
|
|
|
$
|
1,743,547
|
|
|
$
|
478.2
|
|
|
2,438
|
|
|
$
|
1,146,912
|
|
|
$
|
470.4
|
|
|
50
|
%
|
|
52
|
%
|
|
2
|
%
|
Mountain
|
1,993
|
|
|
$
|
1,033,264
|
|
|
518.4
|
|
|
1,537
|
|
|
$
|
768,317
|
|
|
499.9
|
|
|
30
|
%
|
|
34
|
%
|
|
4
|
%
|
East
|
872
|
|
|
$
|
298,965
|
|
|
342.9
|
|
|
641
|
|
|
$
|
183,856
|
|
|
286.8
|
|
|
36
|
%
|
|
63
|
%
|
|
20
|
%
|
Total
|
6,511
|
|
|
$
|
3,075,776
|
|
|
$
|
472.4
|
|
|
4,616
|
|
|
$
|
2,099,085
|
|
|
$
|
454.7
|
|
|
41
|
%
|
|
47
|
%
|
|
4
|
%
|
Homes Completed or
Under Construction (WIP lots)
|
|
|
September
30,
|
|
%
|
|
2020
|
|
2019
|
|
Change
|
Unsold:
|
|
|
|
|
|
Completed
|
74
|
|
|
82
|
|
|
(10)
|
%
|
Under
construction
|
129
|
|
|
255
|
|
|
(49)
|
%
|
Total unsold started
homes
|
203
|
|
|
337
|
|
|
(40)
|
%
|
Sold homes under
construction or completed
|
4,540
|
|
|
3,433
|
|
|
32
|
%
|
Model homes under
construction or completed
|
505
|
|
|
455
|
|
|
11
|
%
|
Total homes completed
or under construction
|
5,248
|
|
|
4,225
|
|
|
24
|
%
|
Lots Owned and
Optioned (including homes completed or under
construction)
|
|
|
September 30,
2020
|
|
September 30,
2019
|
|
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Total
% Change
|
West
|
10,140
|
|
|
3,280
|
|
|
13,420
|
|
|
9,128
|
|
|
2,203
|
|
|
11,331
|
|
|
18
|
%
|
Mountain
|
6,217
|
|
|
2,708
|
|
|
8,925
|
|
|
6,456
|
|
|
3,139
|
|
|
9,595
|
|
|
(7)
|
%
|
East
|
2,716
|
|
|
1,769
|
|
|
4,485
|
|
|
2,014
|
|
|
2,003
|
|
|
4,017
|
|
|
12
|
%
|
Total
|
19,073
|
|
|
7,757
|
|
|
26,830
|
|
|
17,598
|
|
|
7,345
|
|
|
24,943
|
|
|
8
|
%
|
Selling, General
and Administrative Expenses
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
Change
|
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
General and
administrative expenses
|
$
|
45,980
|
|
|
$
|
46,951
|
|
|
$
|
(971)
|
|
|
$
|
131,488
|
|
|
$
|
128,849
|
|
|
$
|
2,639
|
|
General and
administrative expenses as a percentage of home sale
revenues
|
4.6
|
%
|
|
6.3
|
%
|
|
-170 bps
|
|
|
5.1
|
%
|
|
6.0
|
%
|
|
-90 bps
|
|
Marketing
expenses
|
$
|
24,725
|
|
|
$
|
20,457
|
|
|
$
|
4,268
|
|
|
$
|
68,828
|
|
|
$
|
58,266
|
|
|
$
|
10,562
|
|
Marketing expenses
as a percentage of home sale revenues
|
2.5
|
%
|
|
2.7
|
%
|
|
-20 bps
|
|
|
2.7
|
%
|
|
2.7
|
%
|
|
0 bps
|
|
Commissions
expenses
|
$
|
32,927
|
|
|
$
|
25,308
|
|
|
$
|
7,619
|
|
|
$
|
84,953
|
|
|
$
|
70,574
|
|
|
$
|
14,379
|
|
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
|
$
|
103,632
|
|
|
$
|
92,716
|
|
|
$
|
10,916
|
|
|
$
|
285,269
|
|
|
$
|
257,689
|
|
|
$
|
27,580
|
|
Total selling,
general and administrative expenses as a percentage of
home sale revenues
|
10.4
|
%
|
|
12.4
|
%
|
|
-200 bps
|
|
|
11.0
|
%
|
|
12.1
|
%
|
|
-110 bps
|
|
Capitalized
Interest
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Homebuilding interest
incurred
|
$
|
14,799
|
|
|
$
|
15,879
|
|
|
$
|
46,427
|
|
|
$
|
47,890
|
|
Less: Interest
capitalized
|
(14,799)
|
|
|
(15,879)
|
|
|
(46,427)
|
|
|
(47,890)
|
|
Homebuilding interest
expensed
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
Interest capitalized,
beginning of period
|
$
|
56,929
|
|
|
$
|
58,193
|
|
|
$
|
55,310
|
|
|
$
|
54,845
|
|
Plus: Interest
capitalized during period
|
14,799
|
|
|
15,879
|
|
|
46,427
|
|
|
47,890
|
|
Less: Previously
capitalized interest included in home cost of sales
|
(16,511)
|
|
|
(14,451)
|
|
|
(46,520)
|
|
|
(43,114)
|
|
Interest capitalized,
end of period
|
$
|
55,217
|
|
|
$
|
59,621
|
|
|
$
|
55,217
|
|
|
$
|
59,621
|
|
View original
content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-third-quarter-2020-results-dividend-increase-and-management-promotions-301162502.html
SOURCE M.D.C. Holdings, Inc.