Exhibit 99.1
News Release
M.D.C. HOLDINGS ANNOUNCES 2021 FOURTH QUARTER AND FULL YEAR RESULTS
Strong fourth quarter results help drive record full year home sale revenues
and net income
DENVER, COLORADO, Tuesday, February 1, 2022. 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, 2021.
“MDC delivered another quarter of strong operating results in the fourth quarter of 2021, posting double digit year-over-year increases to both home sale revenues and earnings per share,” said MDC's Executive Chairman, Larry A. Mizel. “The fourth quarter also capped an outstanding year for MDC, as we eclipsed the $5 billion mark for home sale revenues and increased our fully diluted earnings per share by over 50% as compared to the previous year. With a record $4.3 billion backlog to end the year and an improving margin profile, we believe we are in a great position to improve on these results in 2022.”
Mr. Mizel continued, “The housing industry continues to see healthy demand and pricing power in many markets across the country, driven by strong local economies, rising incomes and favorable demographics. Equally important has been the ongoing lack of existing home supply which has fueled the need for new home construction. We believe these market dynamics will persist for the foreseeable future, creating a favorable fundamental backdrop for our industry and particularly for MDC.”
Mr. Mizel concluded, “We made further improvements to our capital structure in the fourth quarter by retiring the remaining $126 million of our 5.500% senior notes due in 2024. Our leverage ratios remain below the industry average, and our credit ratings are among the best in the industry. This financial strength provides us with a cost of capital advantage over many of our peers and allows us to pay the industry-leading annualized dividend of $2.00 per share. It also allows us to better manage our business through a homebuilding cycle, which has been a long-standing hallmark of MDC’s strategy.”
“Order activity stayed above normal seasonal levels during the quarter as our monthly absorption rate came in at 4.5 sales per community,” said David Mandarich, MDC’s President and Chief Executive Officer. “The solid demand trends were evident across our geographic footprint, with each of our homebuilding regions posting an absorption rate above third quarter levels. These order results are a testament to the health of the housing market as well as to our dual strategy of adhering to a build-to-order operating model and focusing on the more affordable segments of the market. We believe these demand drivers will continue into the new year, positioning our company for growth in 2022.”
1
2021 Fourth Quarter Highlights and Comparisons to 2020 Fourth Quarter
•Home sale revenues increased 22% to $1.44 billion from $1.18 billion
◦Unit deliveries up 4% to 2,663
◦Average selling price of deliveries up 17% to $539,000
•Homebuilding pretax income increased 36% to $193.5 million from $142.3 million
◦Gross margin from home sales increased 150 basis points to 23.5% from 22.0%
◦Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 90 basis points to 9.1%
◦Loss on debt retirement of $11.4 million in the current quarter.
•Net income of $162.7 million, or $2.21 per diluted share, up 10% from $147.5 million or $2.03 per diluted share
◦Effective tax rate of 22.2% vs. 13.9%
•Dollar value of net new orders increased 9% to $1.43 billion from $1.32 billion
◦Monthly sales absorption rate of 4.5 vs. 4.7 in prior period quarter
◦Average selling price of net orders up 12%
2021 Full Year Highlights and Comparisons to 2020 Full Year
•Home sale revenues increased 36% to $5.10 billion from $3.77 billion
◦Unit deliveries up 22% to 9,982
•Homebuilding pretax income increased 74% to $659.7 million from $378.5 million
◦Gross margin from home sales of 23.1% vs. 20.8%
◦SG&A rate improved to 9.7% vs. 10.7%
◦Loss on debt retirement of $23.6 million in the current year
•Financial services pretax income increased 16% to $92.0 million from $79.0 million
•Net income of $573.7 million, or $7.83 per diluted share, up 56% from $367.6 million or $5.17 per diluted share
◦Effective tax rate of 23.7% vs. 19.7%
•Dollar value of net new orders increased 11% to $6.04 billion from $5.46 billion
2022 Outlook and Other Selected Information1
•Backlog dollar value at December 31, 2021 up 32% year-over-year to $4.30 billion
◦Backlog units up 15% to 7,640
•Lots controlled of 38,080 at December 31, 2021, up 29% year-over-year
•Projected home deliveries for the 2022 first quarter between 2,000 and 2,300
◦Projected average selling price for 2022 first quarter unit deliveries between $550,000 and $560,000
◦Projected gross margin from home sales for the 2022 first quarter of approximately 25% (assuming no impairments or warranty adjustments)
•Projected full year 2022 home deliveries between 10,500 and 11,000 assuming no improvements in our average sale-to-close cycle time from those experienced during the fourth quarter of 2021
•Quarterly cash dividend of fifty cents ($0.50) per share declared on January 24, 2022, up 35% from the prior year (after adjusting for 8% stock dividend in March 2021)
◦Consistent record of stable or increasing dividends for more than 25 years
1 See "Forward-Looking Statements" below.
2
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 220,000 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, Portland, Boise, Nashville, Austin and Albuquerque. MDC's subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. 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-K for the year ended December 31, 2021, 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.
Contact: Robert N. Martin
Senior Vice President and Chief Financial Officer
1-866-424-3395
IR@mdch.com
3
M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||
| Home sale revenues | $ | 1,435,124 | $ | 1,180,987 | $ | 5,102,456 | $ | 3,765,379 | |||||||||||||||
| Home cost of sales | (1,096,946) | (921,060) | (3,924,093) | (2,982,668) | |||||||||||||||||||
| Inventory impairments | (1,600) | — | (1,600) | — | |||||||||||||||||||
| Total cost of sales | (1,098,546) | (921,060) | (3,925,693) | (2,982,668) | |||||||||||||||||||
| Gross profit | 336,578 | 259,927 | 1,176,763 | 782,711 | |||||||||||||||||||
| Selling, general and administrative expenses | (130,023) | (117,949) | (493,993) | (403,218) | |||||||||||||||||||
| Loss on debt retirement | (11,421) | — | (23,571) | — | |||||||||||||||||||
| Interest and other income | 981 | 868 | 5,965 | 4,233 | |||||||||||||||||||
| Other expense | (2,595) | (569) | (5,476) | (5,209) | |||||||||||||||||||
| Homebuilding pretax income | 193,520 | 142,277 | 659,688 | 378,517 | |||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||
| Revenues | 30,767 | 44,179 | 152,212 | 135,832 | |||||||||||||||||||
| Expenses | (16,555) | (16,064) | (64,477) | (52,465) | |||||||||||||||||||
| Other income (expense), net | 1,416 | 902 | 4,271 | (4,372) | |||||||||||||||||||
| Financial services pretax income | 15,628 | 29,017 | 92,006 | 78,995 | |||||||||||||||||||
| Income before income taxes | 209,148 | 171,294 | 751,694 | 457,512 | |||||||||||||||||||
| Provision for income taxes | (46,487) | (23,806) | (178,037) | (89,930) | |||||||||||||||||||
| Net income | $ | 162,661 | $ | 147,488 | $ | 573,657 | $ | 367,582 | |||||||||||||||
| Comprehensive income | $ | 162,661 | $ | 147,488 | $ | 573,657 | $ | 367,582 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 2.30 | $ | 2.11 | $ | 8.13 | $ | 5.33 | |||||||||||||||
| Diluted | $ | 2.21 | $ | 2.03 | $ | 7.83 | $ | 5.17 | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 70,303,149 | 69,581,552 | 70,174,281 | 68,531,856 | |||||||||||||||||||
| Diluted | 73,110,624 | 72,170,707 | 72,854,601 | 70,676,581 | |||||||||||||||||||
| Dividends declared per share | $ | 0.50 | $ | 0.37 | $ | 1.67 | $ | 1.29 | |||||||||||||||
4
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
| December 31, 2021 | December 31, 2020 | ||||||||||
| (Dollars in thousands, except per share amounts) | |||||||||||
| ASSETS | |||||||||||
| Homebuilding: | |||||||||||
| Cash and cash equivalents | $ | 485,839 | $ | 411,362 | |||||||
| Restricted cash | 12,799 | 15,343 | |||||||||
| Trade and other receivables | 98,580 | 72,466 | |||||||||
| Inventories: | |||||||||||
| Housing completed or under construction | 1,917,616 | 1,486,587 | |||||||||
| Land and land under development | 1,843,235 | 1,345,643 | |||||||||
| Total inventories | 3,760,851 | 2,832,230 | |||||||||
| Property and equipment, net | 60,561 | 61,880 | |||||||||
| Deferred tax asset, net | 17,942 | 11,454 | |||||||||
| Prepaids and other assets | 106,562 | 101,685 | |||||||||
| Total homebuilding assets | 4,543,134 | 3,506,420 | |||||||||
| Financial Services: | |||||||||||
| Cash and cash equivalents | 104,821 | 77,267 | |||||||||
| Mortgage loans held-for-sale, net | 282,529 | 232,556 | |||||||||
| Other assets | 33,044 | 48,677 | |||||||||
| Total financial services assets | 420,394 | 358,500 | |||||||||
| Total Assets | $ | 4,963,528 | $ | 3,864,920 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Homebuilding: | |||||||||||
| Accounts payable | $ | 149,488 | $ | 98,862 | |||||||
| Accrued and other liabilities | 370,910 | 300,735 | |||||||||
| Revolving credit facility | 10,000 | 10,000 | |||||||||
| Senior notes, net | 1,481,781 | 1,037,391 | |||||||||
| Total homebuilding liabilities | 2,012,179 | 1,446,988 | |||||||||
| Financial Services: | |||||||||||
| Accounts payable and accrued liabilities | 97,903 | 95,630 | |||||||||
| Mortgage repurchase facility | 256,300 | 202,390 | |||||||||
| Total financial services liabilities | 354,203 | 298,020 | |||||||||
| Total Liabilities | 2,366,382 | 1,745,008 | |||||||||
| 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; 70,668,093 and 64,851,126 issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 707 | 649 | |||||||||
| Additional paid-in-capital | 1,709,276 | 1,407,597 | |||||||||
| Retained earnings | 887,163 | 711,666 | |||||||||
| Total Stockholders' Equity | 2,597,146 | 2,119,912 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 4,963,528 | $ | 3,864,920 | |||||||
5
M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
(Unaudited)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Operating Activities: | |||||||||||||||||||||||
| Net income | $ | 162,661 | $ | 147,488 | $ | 573,657 | $ | 367,582 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
| Stock-based compensation expense | 12,823 | 11,526 | 39,655 | 30,062 | |||||||||||||||||||
| Depreciation and amortization | 7,736 | 8,285 | 31,666 | 27,166 | |||||||||||||||||||
| Inventory impairments | 1,600 | — | 1,600 | — | |||||||||||||||||||
| Net (gain) loss on marketable equity securities | — | — | — | 8,285 | |||||||||||||||||||
| Gain on sale of other assets | — | — | (2,014) | — | |||||||||||||||||||
| Loss on retirement of debt | 11,421 | — | 23,571 | — | |||||||||||||||||||
| Deferred income tax expense | (1,641) | 2,195 | (6,488) | 10,688 | |||||||||||||||||||
| Net changes in assets and liabilities: | |||||||||||||||||||||||
| Trade and other receivables | 30,195 | 4,697 | (25,334) | (12,815) | |||||||||||||||||||
| Mortgage loans held-for-sale, net | (33,608) | (72,050) | (49,973) | (35,535) | |||||||||||||||||||
| Housing completed or under construction | 29,179 | (62,613) | (431,926) | (449,882) | |||||||||||||||||||
| Land and land under development | (378,602) | (123,742) | (497,364) | (15,032) | |||||||||||||||||||
| Prepaids and other assets | (1,374) | (24,618) | 8,545 | (44,932) | |||||||||||||||||||
| Accounts payable and accrued liabilities | 38,142 | 56,295 | 126,415 | 91,318 | |||||||||||||||||||
| Net cash used in operating activities | (121,468) | (52,537) | (207,990) | (23,095) | |||||||||||||||||||
| Investing Activities: | |||||||||||||||||||||||
| Purchases of marketable securities | — | — | — | (10,804) | |||||||||||||||||||
| Sales of marketable securities | — | — | — | 59,266 | |||||||||||||||||||
| Proceeds from sale of other assets | — | — | 2,014 | — | |||||||||||||||||||
| Purchases of property and equipment | (6,665) | (5,892) | (29,693) | (26,777) | |||||||||||||||||||
| Net cash provided by (used in) investing activities | (6,665) | (5,892) | (27,679) | 21,685 | |||||||||||||||||||
| Financing Activities: | |||||||||||||||||||||||
| Advances on mortgage repurchase facility, net | 40,506 | 71,529 | 53,910 | 52,774 | |||||||||||||||||||
| Payments on homebuilding line of credit, net | — | — | — | (5,000) | |||||||||||||||||||
| Payments of senior notes | (140,557) | — | (276,951) | (250,000) | |||||||||||||||||||
| Proceeds from issuance of senior notes | — | — | 694,662 | 298,050 | |||||||||||||||||||
| Dividend payments | (35,340) | (25,952) | (118,529) | (89,008) | |||||||||||||||||||
| Payments of deferred debt issuance costs | — | (4,471) | (1,720) | (4,471) | |||||||||||||||||||
| Issuance of shares under stock-based compensation programs, net | (663) | (1,149) | (16,216) | 28,825 | |||||||||||||||||||
| Net cash provided by (used in) financing activities | (136,054) | 39,957 | 335,156 | 31,170 | |||||||||||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (264,187) | (18,472) | 99,487 | 29,760 | |||||||||||||||||||
| Cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Beginning of period | 867,646 | 522,444 | 503,972 | 474,212 | |||||||||||||||||||
| End of period | $ | 603,459 | $ | 503,972 | $ | 603,459 | $ | 503,972 | |||||||||||||||
| Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||||||||||
| Homebuilding: | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 485,839 | $ | 411,362 | $ | 485,839 | $ | 411,362 | |||||||||||||||
| Restricted cash | 12,799 | 15,343 | 12,799 | 15,343 | |||||||||||||||||||
| Financial Services: | |||||||||||||||||||||||
| Cash and cash equivalents | 104,821 | 77,267 | 104,821 | 77,267 | |||||||||||||||||||
| Total cash, cash equivalents and restricted cash | $ | 603,459 | $ | 503,972 | $ | 603,459 | $ | 503,972 | |||||||||||||||
6
New Home Deliveries
| Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 1,408 | $ | 770,695 | $ | 547.4 | 1,389 | $ | 658,307 | $ | 473.9 | 1 | % | 17 | % | 16 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 781 | 462,807 | 592.6 | 810 | 407,160 | 502.7 | (4) | % | 14 | % | 18 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 474 | 201,622 | 425.4 | 365 | 115,520 | 316.5 | 30 | % | 75 | % | 34 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 2,663 | $ | 1,435,124 | $ | 538.9 | 2,564 | $ | 1,180,987 | $ | 460.6 | 4 | % | 22 | % | 17 | % | |||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 5,732 | $ | 2,964,766 | $ | 517.2 | 4,412 | $ | 2,106,241 | $ | 477.4 | 30 | % | 41 | % | 8 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 2,770 | 1,567,198 | 565.8 | 2,530 | 1,293,779 | 511.4 | 9 | % | 21 | % | 11 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 1,480 | 570,492 | 385.5 | 1,216 | 365,359 | 300.5 | 22 | % | 56 | % | 28 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 9,982 | $ | 5,102,456 | $ | 511.2 | 8,158 | $ | 3,765,379 | $ | 461.6 | 22 | % | 36 | % | 11 | % | |||||||||||||||||||||||||||||||||||||
Net New Orders
| Three Months Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % 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 | 1,424 | $ | 776,984 | $ | 545.6 | 4.70 | 1,453 | $ | 712,792 | $ | 490.6 | 4.75 | (2) | % | 9 | % | 11 | % | (1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mountain | 704 | 431,931 | 613.5 | 4.27 | 835 | 448,908 | 537.6 | 4.66 | (16) | % | (4) | % | 14 | % | (8) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| East | 517 | 225,834 | 436.8 | 4.31 | 420 | 153,650 | 365.8 | 4.41 | 23 | % | 47 | % | 19 | % | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 2,645 | $ | 1,434,749 | $ | 542.4 | 4.50 | 2,708 | $ | 1,315,350 | $ | 485.7 | 4.66 | (2) | % | 9 | % | 12 | % | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Year Ended December31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % 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 | 6,238 | $ | 3,417,437 | $ | 547.8 | 5.25 | 6,099 | $ | 3,078,584 | $ | 504.8 | 5.29 | 2 | % | 11 | % | 9 | % | (1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Mountain | 2,926 | 1,831,755 | 626.0 | 4.33 | 3,337 | 1,818,833 | 545.1 | 4.46 | (12) | % | 1 | % | 15 | % | (3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| East | 1,803 | 789,810 | 438.1 | 4.05 | 1,576 | 562,419 | 356.9 | 4.27 | 14 | % | 40 | % | 23 | % | (5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | 10,967 | $ | 6,039,002 | $ | 550.7 | 4.75 | 11,012 | $ | 5,459,836 | $ | 495.8 | 4.85 | — | % | 11 | % | 11 | % | (2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
*Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period
7
Active Subdivisions
| Average Active Subdivisions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Active Subdivisions | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, | % | December 31, | % | December 31, | % | ||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||
| West | 96 | 103 | (7) | % | 101 | 102 | (1) | % | 99 | 96 | 3 | % | |||||||||||||||||||||||||||||||||||||||||
| Mountain | 54 | 60 | (10) | % | 55 | 60 | (8) | % | 56 | 62 | (10) | % | |||||||||||||||||||||||||||||||||||||||||
| East | 37 | 31 | 19 | % | 40 | 32 | 26 | % | 37 | 31 | 19 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 187 | 194 | (4) | % | 196 | 194 | 1 | % | 192 | 189 | 2 | % | |||||||||||||||||||||||||||||||||||||||||
Backlog
| December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | |||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| West | 4,216 | $ | 2,328,949 | $ | 552.4 | 3,710 | $ | 1,831,205 | $ | 493.6 | 14 | % | 27 | % | 12 | % | |||||||||||||||||||||||||||||||||||||
| Mountain | 2,174 | 1,402,052 | 644.9 | 2,018 | 1,090,557 | 540.4 | 8 | % | 29 | % | 19 | % | |||||||||||||||||||||||||||||||||||||||||
| East | 1,250 | 567,695 | 454.2 | 927 | 341,439 | 368.3 | 35 | % | 66 | % | 23 | % | |||||||||||||||||||||||||||||||||||||||||
| Total | 7,640 | $ | 4,298,696 | $ | 562.7 | 6,655 | $ | 3,263,201 | $ | 490.3 | 15 | % | 32 | % | 15 | % | |||||||||||||||||||||||||||||||||||||
Homes Completed or Under Construction (WIP lots)
| December 31, | % | ||||||||||||||||
| 2021 | 2020 | Change | |||||||||||||||
| Unsold: | |||||||||||||||||
| Completed | 25 | 48 | (48) | % | |||||||||||||
| Under construction | 312 | 131 | 138 | % | |||||||||||||
| Total unsold started homes | 337 | 179 | 88 | % | |||||||||||||
| Sold homes under construction or completed | 6,379 | 4,797 | 33 | % | |||||||||||||
| Model homes under construction or completed | 479 | 498 | (4) | % | |||||||||||||
| Total homes completed or under construction | 7,195 | 5,474 | 31 | % | |||||||||||||
Lots Owned and Optioned (including homes completed or under construction)
| December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
| Lots Owned | Lots Optioned | Total | Lots Owned | Lots Optioned | Total | Total % Change | |||||||||||||||||||||||||||||||||||
| West | 15,968 | 4,534 | 20,502 | 12,335 | 3,460 | 15,795 | 30 | % | |||||||||||||||||||||||||||||||||
| Mountain | 6,660 | 4,171 | 10,831 | 6,279 | 2,591 | 8,870 | 22 | % | |||||||||||||||||||||||||||||||||
| East | 4,304 | 2,443 | 6,747 | 2,868 | 1,936 | 4,804 | 40 | % | |||||||||||||||||||||||||||||||||
| Total | 26,932 | 11,148 | 38,080 | 21,482 | 7,987 | 29,469 | 29 | % | |||||||||||||||||||||||||||||||||
8
Selling, General and Administrative Expenses
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| General and administrative expenses | $ | 66,986 | $ | 53,232 | $ | 13,754 | $ | 246,042 | $ | 184,720 | $ | 61,322 | |||||||||||||||||||||||
General and administrative expenses as a percentage of home sale revenues | 4.7 | % | 4.5 | % | 20 bps | 4.8 | % | 4.9 | % | -10 bps | |||||||||||||||||||||||||
| Marketing expenses | $ | 26,240 | $ | 26,275 | $ | (35) | $ | 104,435 | $ | 95,103 | $ | 9,332 | |||||||||||||||||||||||
Marketing expenses as a percentage of home sale revenues | 1.8 | % | 2.2 | % | -40 bps | 2.0 | % | 2.5 | % | -50 bps | |||||||||||||||||||||||||
| Commissions expenses | $ | 36,797 | $ | 38,442 | $ | (1,645) | $ | 143,516 | $ | 123,395 | $ | 20,121 | |||||||||||||||||||||||
Commissions expenses as a percentage of home sale revenues | 2.6 | % | 3.3 | % | -70 bps | 2.8 | % | 3.3 | % | -50 bps | |||||||||||||||||||||||||
| Total selling, general and administrative expenses | $ | 130,023 | $ | 117,949 | $ | 12,074 | $ | 493,993 | $ | 403,218 | $ | 90,775 | |||||||||||||||||||||||
Total selling, general and administrative expenses as a percentage of home sale revenues | 9.1 | % | 10.0 | % | -90 bps | 9.7 | % | 10.7 | % | -100 bps | |||||||||||||||||||||||||
Capitalized Interest
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||
| Homebuilding interest incurred | $ | 18,651 | $ | 14,849 | $ | 72,500 | $ | 61,276 | |||||||||||||||
| Less: Interest capitalized | (18,651) | (14,849) | (72,500) | (61,276) | |||||||||||||||||||
| Homebuilding interest expensed | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Interest capitalized, beginning of period | $ | 57,435 | $ | 55,217 | $ | 52,777 | $ | 55,310 | |||||||||||||||
| Plus: Interest capitalized during period | 18,651 | 14,849 | 72,500 | 61,276 | |||||||||||||||||||
| Less: Previously capitalized interest included in home cost of sales | (18,032) | (17,289) | (67,223) | (63,809) | |||||||||||||||||||
| Interest capitalized, end of period | $ | 58,054 | $ | 52,777 | $ | 58,054 | $ | 52,777 | |||||||||||||||
9