M.D.C. Holdings Announces 2017 Fourth Quarter And Full Year Results
DENVER, Feb. 1, 2018 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter and full year ended December 31, 2017.
Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "Our strong performance in the 2017 full year is evidenced not only by double-digit percentage increases for home sale revenues and net income, but also by the steps we took to strengthen our financial position, enhance shareholder value, and prepare for future growth."
Mr. Mizel continued, "During the year, we added $150 million to our senior notes due January 2043, bringing the total amount outstanding to $500 million. In doing so, we pushed our average senior note maturity to almost 15 years, a strong advantage as interest rates start to rise. In addition, we expanded the capacity under our unsecured line of credit from $550 million to $700 million and extended its maturity to December 2022. We ended the year with liquidity of $1.25 billion, an increase of nearly 40% over the prior year, which provides us with additional resources to fund our future growth. Already, our plans for expansion are well underway, as shown by the nearly 10,400 lots we approved during 2017 for purchase, which was more than double our total in 2016."
Mr. Mizel concluded, "We ended the year on a strong note, with fourth quarter net home orders surging 23% year-over-year. We believe the robust demand is not only the result of solid economic fundamentals, but also our focus on affordable product. At the center of our emphasis on affordability is our Seasons(TM) collection, which accounted for 15% of our fourth quarter net orders. Because of our strong sales performance, our yearend backlog value is 16% higher than a year ago, setting the stage for growth in 2018. Given our positive outlook and strong financial position, we enhanced our industry-leading dividend program with an 8% stock dividend in the fourth quarter and a 20% increase in our cash dividend declared at the start of the 2018 first quarter, reflecting our confidence in the prospects for growth against the backdrop of solid industry conditions."
Net income for the 2017 fourth quarter was $24.6 million, or $0.43 per diluted share, versus $40.4 million, or $0.72 per diluted share* for the 2016 fourth quarter. Net income for the 2017 full year was $141.8 million, or $2.48 per diluted share, versus $103.2 million, or $1.85 per diluted share*, for the 2016 full year. Net income and diluted earnings per share for the fourth quarter and year ended December 31, 2017 were impacted by the following tax-related items:
-- The enactment of the Tax Cuts and Jobs Act in December 2017, which
required a remeasurement of the Company's deferred tax assets, resulted
in a charge of $10.0 million for both the 2017 fourth quarter and full
year.
-- The Company's January 1, 2017 adoption of Accounting Standard Update
2016-09, which resulted in the Company recognizing an income tax charge
of $2.8 million related to tax deficiencies from stock option
expirations for both the 2017 fourth quarter and full year.
-- The Company realized income tax benefits of $3.5 million for the 2017
fourth quarter and $7.2 million for the 2017 full year from the release
of a portion of its deferred tax asset valuation allowance relating to
the sale and valuation of certain assets.
Additional 2017 Fourth Quarter Highlights and Comparisons to 2016 Fourth Quarter
-- Home sale revenues of $702.6 million versus $715.8 million
-- Home deliveries of 1,556 versus 1,582
-- Approximately 35 home deliveries delayed to later periods due to
Weyerhaeuser joist issue (net of Weyerhaeuser closings originally
scheduled for the third quarter that closed in the fourth quarter)
-- Gross margin from home sales percentage up 120 basis points to 17.3%
from 16.1%
-- Impairments of $0.6 million vs. $3.9 million
-- Selling, general and administrative expenses as a percentage of home
sale revenues ("SG&A rate") of 11.6% versus 9.5%
-- Includes $5.4 million of infrequent charges to general and
administrative expenses for accrual adjustments and tax planning
strategies
-- Financial services segment income of $11.5 million versus $11.4 million
-- Dollar value of net new orders of $574.3 million, up 23% from $465.9
million
-- Absorption rate increased by 31%
-- Lot purchase approvals up 64% to 2,566 lots in 38 communities
Additional 2017 Full Year Highlights and Comparisons to 2016 Full Year
-- Home sale revenues up 11% to $2.50 billion from $2.26 billion
-- Home deliveries of 5,541 increased from 5,054
-- Approximately 120 home deliveries delayed to 2018 due to
Weyerhaeuser joist issue
-- Gross margin from home sales percentage up 50 basis points from 16.1% to
16.6%
-- Selling, general and administrative expenses as a percentage of home
sale revenues ("SG&A rate") of 11.5% versus 11.1%
-- Realized gains from the sale of investments of $54.0 million versus $1.1
million
-- Financial services segment income of $43.8 million versus $36.4 million
-- Dollar value of net new orders of $2.70 billion, up 6%
-- Lot purchase approvals up more than 100% to 10,382 lots in 144
communities
-- Pretax return on equity improved 510 basis points to 16.9%
2018 Outlook - Selected Information
-- Backlog dollar value at 12/31/2017 up 16% year-over-year to $1.60
billion
-- Gross margin from home sales percentage in backlog at 12/31/2017
exceeds 2017 fourth quarter closing gross profit margin of 17.3%
-- Backlog conversion ratio (home deliveries divided by beginning
backlog) for Q1 2018 estimated to be in the 38% to 40% range
-- Active subdivision count at 12/31/2017 of 151, down 8% year-over-year
-- Targeting a 10% year-over-year increase in active subdivision count
from 151 at 12/31/2017 to at least 166 at 12/31/2018
-- Lots controlled of 19,312 at 12/31/2017, up 32% year-over-year
-- Quarterly dividend of $0.30 ($1.20 annualized) declared in January 2018,
up 20% sequentially
-- Preliminary estimate for full year 2018 effective tax rate of 25% to
27%, excluding impact of any potential discrete items
*All per share amounts have been adjusted for the 8% stock dividend declared and paid in the 2017 fourth quarter.
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 195,000 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, South Florida, 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, 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 Year Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(Dollars in thousands, except per share amounts)
Homebuilding: (Unaudited) (Unaudited)
Home sale revenues $702,649 $715,816 $2,498,695 $2,257,153
Land sale revenues 1,609 770 4,547 5,700
Total home and land sale revenues 704,258 716,586 2,503,242 2,262,853
------- ------- --------- ---------
Home cost of sales (580,667) (597,018) (2,073,833) (1,884,391)
Land cost of sales (1,768) (669) (4,440) (4,866)
Inventory impairments (620) (3,873) (10,010) (10,173)
Total cost of sales (583,055) (601,560) (2,088,283) (1,899,430)
-------- -------- ---------- ----------
Gross margin 121,203 115,026 414,959 363,423
------- ------- ------- -------
Selling, general and administrative expenses (81,379) (67,919) (287,488) (250,540)
Interest and other income 1,614 1,586 7,714 6,033
Net realized gains from the sales of marketable securities - 68 17,775 979
Realized gain from the sale of metropolitan district bond
securities (related party)
- - 35,847 -
Other expense (1,182) (984) (2,817) (3,447)
Other-than-temporary impairment of marketable securities - (136) (51) (1,070)
Homebuilding pretax income 40,256 47,641 185,939 115,378
------ ------ ------- -------
Financial Services:
Revenues 19,856 19,743 74,372 63,991
Expenses (9,287) (9,181) (34,534) (30,920)
Interest and other income 1,048 1,057 4,190 3,705
Other-than-temporary impairment of marketable securities (75) (262) (235) (373)
Financial services pretax income 11,542 11,357 43,793 36,403
------ ------ ------ ------
Income before income taxes 51,798 58,998 229,732 151,781
Provision for income taxes (27,246) (18,622) (87,897) (48,570)
Net income $24,552 $40,376 $141,835 $103,211
======= ======= ======== ========
Other comprehensive income (loss) related to available for
sale securities, net of tax
1,166 2,485 (18,079) 6,356
Comprehensive income $25,718 $42,861 $123,756 $109,567
======= ======= ======== ========
Earnings per share
Basic $0.44 $0.73 $2.54 $1.86
Diluted $0.43 $0.72 $2.48 $1.85
Weighted average common shares outstanding
Basic 55,802,550 55,398,412 55,663,908 55,389,898
Diluted 57,235,959 55,594,874 56,901,461 55,562,920
Dividends declared per share $0.23 $0.22 $0.93 $0.88
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
December 31, December 31,
2017 2016
---- ----
(Dollars in thousands, except
per share amounts)
ASSETS
Homebuilding:
Cash and cash equivalents $472,957 $259,087
Marketable securities 49,634 59,770
Restricted cash 8,812 3,778
Trade and other receivables 53,362 42,492
Inventories:
Housing completed or under construction 936,685 874,199
Land and land under development 893,051 884,615
------- -------
Total inventories 1,829,736 1,758,814
Property and equipment, net 26,439 28,041
Deferred tax assets, net 41,480 74,888
Metropolitan district bond securities (related party) - 30,162
Prepaid and other assets 75,666 60,463
------ ------
Total homebuilding assets 2,558,086 2,317,495
Financial Services:
Cash and cash equivalents 32,471 23,822
Marketable securities 42,004 36,436
Mortgage loans held-for-sale, net 138,114 138,774
Other assets 9,617 12,062
Total financial services assets 222,206 211,094
------- -------
Total Assets $2,780,292 $2,528,589
========== ==========
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable $39,655 $42,088
Accrued liabilities 166,312 144,566
Revolving credit facility 15,000 15,000
Senior notes, net 986,597 841,646
------- -------
Total homebuilding liabilities 1,207,564 1,043,300
Financial Services:
Accounts payable and accrued liabilities 53,101 50,734
Mortgage repurchase facility 112,340 114,485
------- -------
Total financial services liabilities 165,441 165,219
Total Liabilities 1,373,005 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;
56,123,228 and 51,485,090 issued and outstanding at December
31, 2017 and December 31, 2016, respectively
561 515
Additional paid-in-capital 1,144,570 983,532
Retained earnings 258,164 313,952
Accumulated other comprehensive income 3,992 22,071
Total Stockholders' Equity 1,407,287 1,320,070
--------- ---------
Total Liabilities and Stockholders' Equity $2,780,292 $2,528,589
========== ==========
M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(Dollars in thousands)
(Unaudited) (Unaudited)
Operating Activities:
Net income $24,552 $40,376 $141,835 $103,211
Adjustments to reconcile net income to net cash provided by (used
in) operating activities:
Stock-based compensation expense 2,757 841 5,857 7,477
Depreciation and amortization 1,116 1,430 5,321 5,132
Inventory impairments 620 3,873 10,010 10,173
Other-than-temporary impairment of marketable securities 75 398 286 1,443
Net realized loss (gain) on sale of marketable securities - (163) (18,122) (1,074)
Gain on sale of metropolitan district bond securities (related
party) - - (35,847) -
Deferred income tax expense 21,992 4,788 44,787 16,145
Net changes in assets and liabilities:
Restricted cash (89) 843 (5,034) (28)
Trade and other receivables (13,882) 1,255 (13,763) (20,424)
Mortgage loans held-for-sale (48,310) (20,785) 660 (23,104)
Housing completed or under construction 32,449 101,214 (69,548) (128,525)
Land and land under development (30,055) (16,509) (10,169) 124,622
Prepaid expenses and other assets (1,892) 3,537 (13,121) (1,036)
Accounts payable and accrued liabilities 6,975 3,722 22,320 21,905
Net cash provided by (used in) operating activities (3,692) 124,820 65,472 115,917
------ ------- ------ -------
Investing Activities:
Purchases of marketable securities (49,635) (19,778) (67,239) (48,050)
Sales of marketable securities - 4,863 83,315 61,736
Proceeds from sale of metropolitan district bond securities
(related party) - - 44,253 -
Purchases of property and equipment (622) (603) (2,539) (4,468)
Net cash provided by (used in) investing activities (50,257) (15,518) 57,790 9,218
------- ------- ------ -----
Financing Activities:
Advances (payments) on mortgage repurchase facility, net 47,237 22,474 (2,145) 25,874
Proceeds from issuance of senior notes 146,463 - 146,463 -
Dividend payments (13,104) (12,325) (51,897) (49,088)
Payments of deferred financing costs (35) - (2,665) -
Proceeds from exercise of stock options 998 - 9,501 -
Net cash provided by (used in) financing activities 181,559 10,149 99,257 (23,214)
------- ------ ------ -------
Net increase in cash and cash equivalents 127,610 119,451 222,519 101,921
Cash and cash equivalents:
Beginning of period 377,818 163,458 282,909 180,988
End of period $505,428 $282,909 $505,428 $282,909
======== ======== ======== ========
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
New Home Deliveries
Three Months Ended December 31,
-------------------------------
2017 2016 % Change
---- ---- --------
Homes Dollar Average Homes Dollar Average Homes Dollar Average
Value Price Value Price Value Price
----- ----- ----- ----- ----- -----
(Dollars in thousands)
Arizona 235 $76,785 $326.7 207 $62,159 $300.3 14% 24% 9%
California 227 136,485 601.3 295 176,818 599.4 (23)% (23)% 0%
Nevada 228 79,608 349.2 251 88,580 352.9 (9)% (10)% (1)%
Washington 120 63,550 529.6 111 54,963 495.2 8% 16% 7%
---
West 810 356,428 440.0 864 382,520 442.7 (6)% (7)% (1)%
---
Colorado 407 199,530 490.2 424 207,774 490.0 (4)% (4)% 0%
Utah 94 40,494 430.8 74 27,441 370.8 27% 48% 16%
---
Mountain 501 240,024 479.1 498 235,215 472.3 1% 2% 1%
---
Maryland 50 23,983 479.7 65 29,337 451.3 (23)% (18)% 6%
Virginia 66 33,258 503.9 69 36,822 533.7 (4)% (10)% (6)%
Florida 129 48,956 379.5 86 31,922 371.2 50% 53% 2%
East 245 106,197 433.5 220 98,081 445.8 11% 8% (3)%
---
Total 1,556 $702,649 $451.6 1,582 $715,816 $452.5 (2)% (2)% (0)%
=====
Year Ended December 31,
-----------------------
2017 2016 % Change
---- ---- --------
Homes Dollar Average Homes Dollar Average Homes Dollar Average
Value Price Value Price Value Price
----- ----- ----- ----- ----- -----
(Dollars in thousands)
Arizona 821 $260,043 $316.7 789 $232,511 $294.7 4% 12% 7%
California 889 540,459 607.9 807 495,934 614.5 10% 9% (1)%
Nevada 870 302,911 348.2 683 238,441 349.1 27% 27% (0)%
Washington 410 212,656 518.7 345 161,628 468.5 19% 32% 11%
West 2,990 1,316,069 440.2 2,624 1,128,514 430.1 14% 17% 2%
----
Colorado 1,471 709,741 482.5 1,369 671,308 490.4 7% 6% (2)%
Utah 220 91,903 417.7 219 80,679 368.4 0% 14% 13%
Mountain 1,691 801,644 474.1 1,588 751,987 473.5 6% 7% 0%
-----
Maryland 190 89,853 472.9 243 114,079 469.5 (22)% (21)% 1%
Virginia 237 125,690 530.3 262 135,394 516.8 (10)% (7)% 3%
Florida 433 165,439 382.1 337 127,179 377.4 28% 30% 1%
East 860 380,982 443.0 842 376,652 447.3 2% 1% (1)%
---
Total 5,541 $2,498,695 $450.9 5,054 $2,257,153 $446.6 10% 11% 1%
=====
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
Net New Orders
Three Months Ended December 31,
-------------------------------
2017 2016 % Change
---- ---- --------
Homes Dollar Average Monthly Homes Dollar Average Monthly Homes Dollar Average Monthly
Price Value Price Value Price
Value Absorption Absorption Absorption
Rate * Rate * Rate *
(Dollars in thousands)
Arizona 187 $59,958 $320.6 2.35 106 $31,380 $296.0 1.23 76% 91% 8% 91%
California 230 141,477 615.1 3.52 149 98,158 658.8 2.42 54% 44% (7)% 45%
Nevada 171 64,138 375.1 2.92 161 56,618 351.7 2.50 6% 13% 7% 17%
Washington 63 34,165 542.3 3.11 78 39,911 511.7 1.86 (19)% (14)% 6% 67%
West 651 299,738 460.4 2.91 494 226,067 457.6 1.94 32% 33% 1% 50%
--- ------- ----- ---- --- ------- ----- ----
Colorado 381 189,238 496.7 2.63 284 136,139 479.4 2.89 34% 39% 4% (9)%
Utah 32 15,468 483.4 1.52 37 15,524 419.6 1.37 (14)% (0)% 15% 11%
Mountain 413 204,706 495.7 2.49 321 151,663 472.5 2.56 29% 35% 5% (3)%
--- ------- ----- ---- --- ------- ----- ----
Maryland 28 12,178 434.9 2.20 37 16,971 458.7 1.17 (24)% (28)% (5)% 88%
Virginia 47 23,366 497.1 3.30 62 32,347 521.7 2.76 (24)% (28)% (5)% 20%
Florida 113 34,273 303.3 2.69 104 38,888 373.9 1.98 9% (12)% (19)% 36%
East 188 69,817 371.4 2.72 203 88,206 434.5 1.91 (7)% (21)% (15)% 42%
--- ------ ----- ---- --- ------ ----- ----
Total 1,252 $574,261 $458.7 2.73 1,018 $465,936 $457.7 2.09 23% 23% 0% 31%
===== ======== ====== ==== ===== ======== ====== ====
Year Ended December 31,
-----------------------
2017 2016 % Change
---- ---- --------
Homes Dollar Average Monthly Homes Dollar Average Monthly Homes Dollar Average Monthly
Price Value Price Value Price
Value Absorption Absorption Absorption
Rate * Rate * Rate *
(Dollars in thousands)
Arizona 825 $273,047 $331.0 2.66 790 $241,584 $305.8 2.21 4% 13% 8% 20%
California 957 611,067 638.5 4.05 946 577,840 610.8 3.88 1% 6% 5% 4%
Nevada 917 331,827 361.9 3.85 795 278,369 350.1 3.09 15% 19% 3% 25%
Washington 395 219,533 555.8 3.66 403 198,442 492.4 2.57 (2)% 11% 13% 42%
West 3,094 1,435,474 464.0 3.47 2,934 1,296,235 441.8 2.89 5% 11% 5% 20%
----- --------- ----- ---- ----- --------- ----- ----
Colorado 1,673 826,488 494.0 3.20 1,511 727,192 481.3 3.69 11% 14% 3% (13)%
Utah 203 93,387 460.0 2.20 215 83,343 387.6 2.18 (6)% 12% 19% 1%
Mountain 1,876 919,875 490.3 3.05 1,726 810,535 469.6 3.39 9% 13% 4% (10)%
----- ------- ----- ---- ----- ------- ----- ----
Maryland 150 66,994 446.6 1.73 245 114,250 466.3 1.73 (39)% (41)% (4)% 0%
Virginia 218 112,647 516.7 3.47 272 142,073 522.3 2.75 (20)% (21)% (1)% 26%
Florida 478 163,507 342.1 2.30 429 173,266 403.9 2.14 11% (6)% (15)% 7%
East 846 343,148 405.6 2.37 946 429,589 454.1 2.15 (11)% (20)% (11)% 10%
--- ------- ----- ---- --- ------- ----- ----
Total 5,816 $2,698,497 $464.0 3.12 5,606 $2,536,359 $452.4 2.85 4% 6% 3% 9%
===== ========== ====== ==== ===== ========== ====== ====
* 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
---------------------------
Active Subdivisions Three Months Ended Year Ended
------------------- ------------------ ----------
December 31, % December 31, % December 31, %
------------ ------------ ------------
2017 2016 Change 2017 2016 Change 2017 2016 Change
---- ---- ------ ---- ---- ------ ---- ---- ------
Arizona 26 28 (7)% 27 29 (7)% 26 30 (13)%
California 22 20 10% 22 21 5% 20 20 0%
Nevada 19 21 (10)% 19 21 (10)% 20 21 (5)%
Washington 6 14 (57)% 7 14 (50)% 9 13 (31)%
---
West 73 83 (12)% 75 85 (12)% 75 84 (11)%
---
Colorado 49 38 29% 48 33 45% 44 34 29%
Utah 7 9 (22)% 7 9 (22)% 8 8 0%
---
Mountain 56 47 19% 55 42 31% 52 42 24%
---
Maryland 3 10 (70)% 3 10 (70)% 7 12 (42)%
Virginia 5 7 (29)% 5 8 (38)% 5 8 (38)%
Florida 14 17 (18)% 14 18 (22)% 17 17 0%
East 22 34 (35)% 22 36 (39)% 29 37 (22)%
---
Total 151 164 (8)% 152 163 (7)% 156 163 (4)%
===
Backlog
At December 31,
---------------
2017 2016 % Change
---- ---- --------
Homes Dollar Average Homes Dollar Average Homes Dollar Average
Price Price Price
Value Value Value
----- ----- -----
(Dollars in thousands)
Arizona 326 $119,601 $366.9 322 $104,899 $325.8 1% 14% 13%
California 549 387,339 705.5 481 314,305 653.4 14% 23% 8%
Nevada 354 138,174 390.3 307 108,720 354.1 15% 27% 10%
Washington 222 129,068 581.4 237 120,305 507.6 (6)% 7% 15%
West 1,451 774,182 533.6 1,347 648,229 481.2 8% 19% 11%
----- ------- ----- ----- ------- -----
Colorado 1,166 594,384 509.8 964 466,565 484.0 21% 27% 5%
Utah 87 43,611 501.3 104 41,689 400.9 (16)% 5% 25%
Mountain 1,253 637,995 509.2 1,068 508,254 475.9 17% 26% 7%
----- ------- ----- ----- ------- -----
Maryland 52 22,647 435.5 92 45,160 490.9 (43)% (50)% (11)%
Virginia 92 48,972 532.3 111 60,701 546.9 (17)% (19)% (3)%
Florida 311 118,696 381.7 266 119,305 448.5 17% (1)% (15)%
East 455 190,315 418.3 469 225,166 480.1 (3)% (15)% (13)%
--- ------- ----- --- ------- -----
Total 3,159 $1,602,492 $507.3 2,884 $1,381,649 $479.1 10% 16% 6%
===== ========== ====== ===== ========== ======
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
Homes Completed or Under Construction (WIP lots)
December 31,
------------
2017 2016 % Change
---- ---- --------
Unsold:
Completed 95 115 (17)%
Under construction 215 279 (23)%
Total unsold started homes 310 394 (21)%
---
Sold homes under construction or completed 2,345 2,186 7%
Model homes under construction or completed 338 302 12%
Total homes completed or under construction 2,993 2,882 4%
=====
Lots Owned and Optioned (including homes completed or under construction)
December 31, 2017 December 31, 2016
----------------- -----------------
Lots Lots Total Lots Lots Total Total %
Owned Optioned Owned Optioned Change
----- -------- ----- -------- ------
Arizona 2,003 700 2,703 1,521 287 1,808 50%
California 1,785 678 2,463 1,702 298 2,000 23%
Nevada 2,284 561 2,845 1,934 65 1,999 42%
Washington 535 162 697 862 - 862 (19)%
West 6,607 2,101 8,708 6,019 650 6,669 31%
----- ----- ----- ----- --- -----
Colorado 4,496 2,736 7,232 3,982 1,683 5,665 28%
Utah 409 194 603 306 30 336 79%
Mountain 4,905 2,930 7,835 4,288 1,713 6,001 31%
----- ----- ----- ----- ----- -----
Maryland 88 79 167 221 62 283 (41)%
Virginia 220 45 265 367 19 386 (31)%
Florida 1,178 1,159 2,337 910 421 1,331 76%
East 1,486 1,283 2,769 1,498 502 2,000 38%
----- ----- ----- ----- --- -----
Total 12,998 6,314 19,312 11,805 2,865 14,670 32%
====== ===== ====== ====== ===== ======
M.D.C. HOLDINGS, INC.
Other Financial Data
Selling, General and Administrative Expenses
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2017 2016 Change 2017 2016 Change
---- ---- ------ ---- ---- ------
(Dollars in thousands)
General and administrative expenses $39,843 $27,438 $12,405 $137,674 $118,076 $19,598
General and administrative expenses
as a percentage of home sale
revenues
5.7% 3.8% 190 bps 5.5% 5.2% 30 bps
Marketing expenses $17,843 $17,050 $793 $66,388 $58,778 $7,610
Marketing expenses as a percentage
of home sale revenues
2.5% 2.4% 10 bps 2.7% 2.6% 10 bps
Commissions expenses $23,693 $23,431 $262 $83,426 $73,686 $9,740
Commissions expenses as a percentage
of home sale revenues
3.4% 3.3% 10 bps 3.3% 3.3% 0 bps
Total selling, general and
administrative expenses
$81,379 $67,919 $13,460 $287,488 $250,540 $36,948
Total selling, general and
administrative expenses as a
percentage of home sale revenues
(SG&A Rate)
11.6% 9.5% 210 bps 11.5% 11.1% 40 bps
==== === ======= ==== ==== ======
Capitalized Interest
Three Months Ended Year Ended
December 31, December 31,
------------ ------------
2017 2016 2017 2016
---- ---- ---- ----
(Dollars in thousands)
Homebuilding interest incurred $15,576 $13,170 $55,170 $52,681
Less: Interest capitalized (15,576) (13,170) (55,170) (52,681)
------- ------- -------
Homebuilding interest expensed $ - $ - $ - $ -
=== === === === === === === ===
Interest capitalized, beginning of
period $60,216 $74,415 $68,085 $77,541
Plus: Interest capitalized during
period 15,576 13,170 55,170 52,681
Less: Previously capitalized interest
included in home and land cost of
sales (18,251) (19,500) (65,714) (62,137)
------- ------- ------- -------
Interest capitalized, end of period $57,541 $68,085 $57,541 $68,085
======= ======= ======= =======
View original content:http://www.prnewswire.com/news-releases/mdc-holdings-announces-2017-fourth-quarter-and-full-year-results-300591712.html
SOURCE M.D.C. Holdings, Inc.
