Exhibit 99.1
NEWS BULLETIN
![]() | ||
M.D.C. HOLDINGS, INC. | RICHMOND AMERICAN HOMES | |
HOMEAMERICAN MORTGAGE |
FOR IMMEDIATE RELEASE
THURSDAY, JULY 20, 2006
THURSDAY, JULY 20, 2006
Contacts: | Paris G. Reece III | Robert N. Martin | Alison Schuller | |||
Chief Financial Officer | Investor Relations | Corporate Communications | ||||
(303) 804-7706 | (720) 977-3431 | (720) 977-3554 | ||||
greece@mdch.com | bob.martin@mdch.com | alison.schuller@mdch.com |
M.D.C. HOLDINGS ANNOUNCES SECOND QUARTER EARNINGS;
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG
• | Diluted earnings per share of $1.66 vs. $2.25 in 2005 | ||
• | Net income of $76.5 million, compared with $102.6 million in 2005 | ||
• | 2006 second quarter total revenues of $1.23 billion; $1.05 billion in 2005 | ||
• | Closed 3,376 homes at an average selling price of $354,000 | ||
• | Financial services profits of $10.2 million vs. $4.1 million in 2005 | ||
• | Net orders for 2,738 homes valued at $914.0 million | ||
• | Quarter-end backlog of 6,496 homes valued at $2.44 billion | ||
• | Unrestricted cash and available borrowing capacity of $1.31 billion |
DENVER, Thursday, July 20, 2006 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the quarter ended June 30, 2006 of $76.5 million, or $1.66 per diluted share, compared with net income of $102.6 million, or $2.25 per diluted share, for the same period in 2005. Total revenue for the second quarter reached $1.23 billion, compared with revenue of $1.05 billion for the same period in 2005.
Net income for the six months ended June 30, 2006 was $171.9 million, or $3.74 per diluted share, compared with net income of $187.3 million, or $4.10 per diluted share, for the same period in 2005. Total revenues for the six months ended June 30, 2006 reached $2.38 billion, compared with $1.98 billion for the first six months of 2005.
Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “During the first six months of 2006, the generally robust demand characteristics of the last several years have given way to an increasingly competitive environment in many of the country’s key markets. Throughout this period, we focused on strengthening our ‘investment grade’ balance sheet and
- more -
![(RICHMOND AMERICAN HOMES LOGO)](https://capedge.com/proxy/8-K/0000950134-06-013486/d37962d3796201.gif)
M.D.C. HOLDINGS, INC.
Page 2
financial position, and preserving our capital. As a result, we maintained our leverage ratios at levels that rank among the best in our industry. And our cash and available borrowing capacity at quarter-end grew to more than $1.3 billion for the first time.”
Mizel continued, “Due in part to the tightening of our underwriting standards for new land acquisition opportunities, we reduced our investment in land in the second quarter. Our continuing efforts to right-size our portfolio of lots controlled in accordance with current market order absorption rates resulted in a 13% year-to-date reduction in the number of lots we own and control, bringing us closer to our two-year lot supply objective. In addition, as we do every quarter, we evaluated the carrying value of the land positions on our balance sheet and determined that no impairments were required.”
Mizel concluded, “While the length and severity of the current market adjustment is uncertain, we are hopeful that the fundamental drivers still present in most of our markets will in due course return the homebuilding industry to more healthy levels of demand. Irrespective of the timing of an industry turnaround, we remain committed to our conservative operating model and financial and operational disciplines. The resulting strength of our balance sheet, relatively short supply of lots and substantial cash and borrowing capacity, combined with our continuing efforts to reduce costs and expenses and improve our operating efficiencies, give us flexibility to take advantage of opportunities that may be presented in this challenging environment.”
Homebuilding Results
Homebuilding operating profits for the quarter and six months ended June 30, 2006 were $133.3 million and $307.0 million, respectively, compared with profits of $187.6 million and $350.1 million for the same periods in 2005. The Company closed 3,376 homes and produced home gross margins of 23.2% in the 2006 second quarter, compared with 3,512 home closings and home gross margins of 28.6% for the comparable period in 2005. For the six months ended June 30, 2006, the Company closed 6,574 homes and produced home gross margins of 25.2%, compared with 6,670 home closings and home gross margins of 28.5% for the six months ended June 30, 2005. Average selling prices reached $354,000 and $352,100, respectively, for the quarter and six months ended June 30, 2006, up $60,800 and $60,300 from the same periods in 2005.
Homebuilding selling, general and administrative expenses were $148.9 million, or 12.5% of home sales revenue, for the 2006 second quarter, compared with $110.9 million, or 10.8% of home sales revenue, for the 2005 second quarter. For the six months ended June 30, 2006, homebuilding selling, general and administrative expenses were $283.1 million, or 12.2% of home sales revenue, compared with $212.1 million, or 10.9% of home sales revenue, for the same period in 2005.
- more -
![(RICHMOND AMERICAN HOMES LOGO)](https://capedge.com/proxy/8-K/0000950134-06-013486/d37962d3796201.gif)
M.D.C. HOLDINGS, INC.
Page 3
Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “As was the case in the prior quarter, we experienced significant year-over-year home gross margin decreases in Nevada and California. Our second quarter home gross margin in Nevada continued a year-long decline from extraordinary levels to a margin much closer to our Company average. Reduced margins in California reflect the impact of increased competition and inventory pressures that have been among the greatest in the country.”
Reece continued, “A significant portion of the 2006 second quarter decline in home gross margins (120 basis points) and homebuilding profits ($19.4 million) resulted from the net impact of deferring profits related to certain homes closed for which the Company’s mortgage subsidiary originated high loan-to-value loans for our homebuyers and still held the loans in inventory at the end of the quarter. The Company will recognize the deferred profit at the time these mortgages are sold to a third-party purchaser, which occurs generally within 45 days of loan origination.”
Reece concluded, “Our selling costs increased in the 2006 second quarter primarily due to higher advertising expenses and commissions to outside brokers required in response to the more competitive home selling environment in most of our markets, as well as higher model home costs. General and administrative expenses also rose in the quarter, primarily as a result of a $7.9 million increase in write-offs of project costs, which included option deposits and other costs related to lots that we have chosen not to acquire. In addition, we experienced higher compensation and other employee benefit related costs and supervisory fees charged by our corporate office to our homebuilding segment.”
Improved Financial Services Results
Operating profits from the Company’s financial services business for the quarter and six months ended June 30, 2006 increased to $10.2 million and $18.5 million, respectively, compared with $4.1 million and $7.0 million, respectively, during the same periods in the previous year. The profit improvements primarily were due to higher gains on sales of mortgage loans, compared with the same periods in 2005. Increased volumes of mortgage loan originations and mortgage loans sold during the 2006 periods drove the higher gains. The Company achieved these increased originations by, among other things, expanding the offering of mortgage loan products that it could originate directly for its customers, thereby decreasing the need for less profitable loans brokered to outside lenders.
Home Orders and Backlog
MDC received orders, net of cancellations, for 2,738 homes with a sales value of $914.0 million during the 2006 second quarter, compared with net orders for 4,832 homes with a sales value of $1.70 billion during the same period in 2005. For the six months ended June 30, 2006, the Company received net orders for 6,538 homes with a sales value of $2.27 billion, compared
- more -
![(RICHMOND AMERICAN HOMES LOGO)](https://capedge.com/proxy/8-K/0000950134-06-013486/d37962d3796201.gif)
M.D.C. HOLDINGS, INC.
Page 4
with 9,378 net orders with a sales value of $3.18 billion for the six months ended June 30, 2005. The Company ended the second quarter of 2006 with a backlog of 6,496 homes, compared with a backlog of 9,213 homes at June 30, 2005. The estimated sales value of backlog at the end of the 2006 second quarter was $2.44 billion, compared with $3.14 billion in estimated sales value of backlog at June 30, 2005.
Reece stated, “Each of our markets, with the exception of Utah, experienced a year-over-year decline in net home orders, driven in part by a significant increase in our cancellation rate, which rose to 43% from 19% in the second quarter of 2005. Excluding Utah and Texas, all of our markets saw their cancellation rates rise by more than 1,000 basis points from last year’s second quarter, related largely to substantial expansions in the supply of new and previously owned homes available to be purchased in these markets. These increased sources of competition resulted in, among other things, an elevated number of order cancellations from prospective homebuyers who were unable to sell their existing homes in this more competitive sales environment. In addition to the cancellation impact, given the uncertainty in today’s residential real estate market, we believe that many buyers are waiting on the sidelines, choosing to delay home purchases until the market works through this period of transition. We have responded by increasing incentives at a measured pace, with the objective of improving our sales velocity under current market conditions without compromising our commitment to a quality product or our strong financial position.”
MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2005 revenues. The Company also provides mortgage financing, primarily for MDC’s homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC, a Fortune 500 Company, is a major regional homebuilder with a significant presence in some of the country’s best housing markets, including Colorado, Jacksonville, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Southern California and Tucson. MDC also has established operating divisions in Chicago, Dallas/Fort Worth, Houston, Philadelphia/Delaware Valley, and West Florida. For more information about our Company, please visit RichmondAmerican.com.
Forward-Looking Statements
Certain statements in this release, including statements regarding future home closings, revenue and earnings, 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 the Company 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 and business conditions, including changes in
- more -
![(RICHMOND AMERICAN HOMES LOGO)](https://capedge.com/proxy/8-K/0000950134-06-013486/d37962d3796201.gif)
M.D.C. HOLDINGS, INC.
Page 5
cancellation rates, net home orders, home gross margins, and land and home values; (2) interest rate changes; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of performance bonds and insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) other factors over which the Company has little or no control. Additional information about the risks and uncertainties applicable to the Company’s business is contained in the Company’s reports on Form 10-K for the year ended December 31, 2005, and Form 10-Q for the quarter ended March 31, 2006, which were filed with the Securities and Exchange Commission. 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. The Company undertakes no duty to publicly update 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 presentations should be consulted.
- more -
M.D.C. HOLDINGS, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
REVENUE | ||||||||||||||||
Homebuilding | $ | 1,213,037 | $ | 1,033,294 | $ | 2,337,891 | $ | 1,954,624 | ||||||||
Financial Services | 19,716 | 12,812 | 37,124 | 24,410 | ||||||||||||
Corporate | 183 | 234 | 615 | 1,222 | ||||||||||||
Total Revenue | 1,232,936 | 1,046,340 | 2,375,630 | 1,980,256 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Homebuilding | 1,079,763 | 845,669 | 2,030,848 | 1,604,489 | ||||||||||||
Financial Services | 9,480 | 8,685 | 18,575 | 17,436 | ||||||||||||
Corporate | 21,332 | 27,946 | 49,689 | 58,262 | ||||||||||||
Related Party Expenses | 127 | 63 | 1,803 | 163 | ||||||||||||
Total Costs and Expenses | 1,110,702 | 882,363 | 2,100,915 | 1,680,350 | ||||||||||||
Income before income taxes | 122,234 | 163,977 | 274,715 | 299,906 | ||||||||||||
Provision for income taxes | (45,743 | ) | (61,354 | ) | (102,803 | ) | (112,652 | ) | ||||||||
NET INCOME | $ | 76,491 | $ | 102,623 | $ | 171,912 | $ | 187,254 | ||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic | $ | 1.70 | $ | 2.35 | $ | 3.83 | $ | 4.30 | ||||||||
Diluted | $ | 1.66 | $ | 2.25 | $ | 3.74 | $ | 4.10 | ||||||||
WEIGHTED-AVERAGE SHARES OUTSTANDING | ||||||||||||||||
Basic | 44,939 | 43,718 | 44,880 | 43,584 | ||||||||||||
Diluted | 45,972 | 45,703 | 45,967 | 45,649 | ||||||||||||
DIVIDENDS DECLARED PER SHARE | $ | .25 | $ | .18 | $ | .50 | $ | .33 | ||||||||
- more -
M.D.C. HOLDINGS, INC.
Information on Business Segments
(In thousands)
(Unaudited)
Information on Business Segments
(In thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
HOMEBUILDING | ||||||||||||||||
Home sales | $ | 1,195,083 | $ | 1,029,553 | $ | 2,314,391 | $ | 1,946,384 | ||||||||
Land sales | 13,639 | — | 15,476 | 1,296 | ||||||||||||
Other revenue | 4,315 | 3,741 | 8,024 | 6,944 | ||||||||||||
Total Homebuilding Revenue | 1,213,037 | 1,033,294 | 2,337,891 | 1,954,624 | ||||||||||||
Home cost of sales | 917,414 | 734,772 | 1,732,003 | 1,391,552 | ||||||||||||
Land cost of sales | 13,400 | — | 15,774 | 790 | ||||||||||||
Marketing expenses | 31,568 | 25,008 | 60,603 | 47,326 | ||||||||||||
Commission expenses | 37,394 | 28,680 | 70,237 | 54,526 | ||||||||||||
General and administrative expenses | 79,987 | 57,209 | 152,231 | 110,295 | ||||||||||||
Total Homebuilding Expenses | 1,079,763 | 845,669 | 2,030,848 | 1,604,489 | ||||||||||||
HOMEBUILDING OPERATING PROFIT | 133,274 | 187,625 | 307,043 | 350,135 | ||||||||||||
FINANCIAL SERVICES | ||||||||||||||||
Net interest income | 1,123 | 728 | 1,979 | 1,255 | ||||||||||||
Broker fees | 2,343 | 2,665 | 4,423 | 4,833 | ||||||||||||
Gains on sales of mortgage loans, net | 15,439 | 8,748 | 28,466 | 16,646 | ||||||||||||
Other revenue | 811 | 671 | 2,256 | 1,676 | ||||||||||||
Total Financial Services Revenue | 19,716 | 12,812 | 37,124 | 24,410 | ||||||||||||
General and Administrative Expenses | 9,480 | 8,685 | 18,575 | 17,436 | ||||||||||||
FINANCIAL SERVICES OPERATING PROFIT | 10,236 | 4,127 | 18,549 | 6,974 | ||||||||||||
TOTAL OPERATING PROFIT | 143,510 | 191,752 | 325,592 | 357,109 | ||||||||||||
CORPORATE | ||||||||||||||||
Interest and other revenue | 183 | 234 | 615 | 1,222 | ||||||||||||
Related party expenses | (127 | ) | (63 | ) | (1,803 | ) | (163 | ) | ||||||||
General and administrative expenses | (21,332 | ) | (27,946 | ) | (49,689 | ) | (58,262 | ) | ||||||||
INCOME BEFORE INCOME TAXES | $ | 122,234 | $ | 163,977 | $ | 274,715 | $ | 299,906 | ||||||||
- more -
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Corporate | ||||||||
Cash and cash equivalents | $ | 70,665 | $ | 196,032 | ||||
Property and equipment, net | 29,238 | 30,660 | ||||||
Deferred income taxes | 71,131 | 54,319 | ||||||
Deferred debt issue costs, net | 6,596 | 6,937 | ||||||
Other assets, net | 11,675 | 10,792 | ||||||
189,305 | 298,740 | |||||||
Homebuilding | ||||||||
Cash and cash equivalents | 18,851 | 16,671 | ||||||
Restricted cash | 6,855 | 6,742 | ||||||
Home sales and other accounts receivable | 98,629 | 134,270 | ||||||
Inventories, net | ||||||||
Housing completed or under construction | 1,512,009 | 1,320,106 | ||||||
Land and land under development | 1,760,077 | 1,677,948 | ||||||
Prepaid expenses and other assets, net | 131,150 | 139,529 | ||||||
3,527,571 | 3,295,266 | |||||||
Financial Services | ||||||||
Cash and cash equivalents | 1,968 | 1,828 | ||||||
Mortgage loans held in inventory | 163,373 | 237,376 | ||||||
Other assets, net | 74,719 | 26,640 | ||||||
240,060 | 265,844 | |||||||
Total Assets | $ | 3,956,936 | $ | 3,859,850 | ||||
- more -
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
June 30, | December 31, | |||||||
2006 | 2005 | |||||||
LIABILITIES | ||||||||
Corporate | ||||||||
Accounts payable and accrued liabilities. | $ | 93,193 | $ | 117,767 | ||||
Income taxes payable | 30,933 | 102,656 | ||||||
Related party liabilities | — | 8,100 | ||||||
Senior notes, net | 996,486 | 996,297 | ||||||
1,120,612 | 1,224,820 | |||||||
Homebuilding | ||||||||
Accounts payable | 226,433 | 203,592 | ||||||
Accrued liabilities | 301,977 | 291,827 | ||||||
Line of credit | — | — | ||||||
528,410 | 495,419 | |||||||
Financial Services | ||||||||
Accounts payable and accrued liabilities. | 13,518 | 30,970 | ||||||
Line of credit | 168,163 | 156,532 | ||||||
181,681 | 187,502 | |||||||
Total Liabilities | 1,830,703 | 1,907,741 | ||||||
COMMITMENTS AND CONTINGENCIES | — | — | ||||||
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; 44,981,000 and 44,967,000 shares issued and outstanding, respectively, at June 30, 2006 and 44,642,000 and 44,630,000 shares issued and outstanding, respectively, at December 31, 2005 | 450 | 446 | ||||||
Additional paid-in capital | 746,637 | 722,292 | ||||||
Retained earnings | 1,382,427 | 1,232,971 | ||||||
Unearned restricted stock | (2,000 | ) | (2,478 | ) | ||||
Accumulated other comprehensive loss | (622 | ) | (622 | ) | ||||
Less treasury stock, at cost; 14,000 and 12,000 shares, respectively, at June 30, 2006 and December 31, 2005 | (659 | ) | (500 | ) | ||||
Total Stockholders’ Equity | 2,126,233 | 1,952,109 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 3,956,936 | $ | 3,859,850 | ||||
- more -
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Selected Financial Data
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
SELECTED OPERATING DATA | ||||||||||||||||
SG&A as a Percent of Home Sales Revenues | ||||||||||||||||
Homebuilding | 12.5 | % | 10.8 | % | 12.2 | % | 10.9 | % | ||||||||
Corporate | 1.8 | % | 2.7 | % | 2.3 | % | 3.0 | % | ||||||||
Total | 14.3 | % | 13.5 | % | 14.5 | % | 13.9 | % | ||||||||
Depreciation and Amortization | $ | 14,881 | $ | 11,592 | $ | 28,509 | $ | 21,586 | ||||||||
Home Gross Margins1 | 23.2 | % | 28.6 | % | 25.2 | % | 28.5 | % | ||||||||
Cash Used in Operating Activities | $ | (3,828 | ) | $ | (209,711 | ) | $ | (112,271 | ) | $ | (328,044 | ) | ||||
Cash Used in Investing Activities | $ | (2,693 | ) | $ | (7,061 | ) | $ | (4,331 | ) | $ | (11,724 | ) | ||||
Cash Provided by (Used in) Financing Activities | $ | (67,734 | ) | $ | 59,311 | $ | (6,445 | ) | $ | 166 | ||||||
Unrestricted Cash and Available Borrowing Capacity | $ | 1,311,515 | $ | 1,037,502 | N/A | N/A | ||||||||||
After-Tax Return on Total Revenue | 6.2 | % | 9.8 | % | 7.2 | % | 9.5 | % | ||||||||
After-Tax Return on Average Assets2 | 13.3 | % | 16.3 | % | N/A | N/A | ||||||||||
After-Tax Return on Average Equity2 | 25.8 | % | 31.2 | % | N/A | N/A | ||||||||||
Interest in Home Cost of Sales as a Percent of Home Sales Revenue | 1.1 | % | 0.8 | % | 1.0 | % | 0.8 | % | ||||||||
Corporate and Homebuilding Interest Capitalized | ||||||||||||||||
Interest Capitalized in Inventories at Beginning of Period. | $ | 47,222 | $ | 27,741 | $ | 41,999 | $ | 24,220 | ||||||||
Interest Incurred During the Period | 15,002 | 11,110 | 29,843 | 21,925 | ||||||||||||
Interest in Home and Land Cost of Sales for the Period. | 13,655 | 8,558 | 23,273 | 15,852 | ||||||||||||
Interest Capitalized in Inventories at End of Period | 48,569 | 30,293 | 48,569 | 30,293 | ||||||||||||
Interest Capitalized as a Percent of Inventories | 1.5 | % | 1.2 | % | N/A | N/A |
1 | Home sales revenue less home cost of sales (excluding commissions) as a percent of home sales revenue. | |
2 | Based on last twelve months data. |
- more -
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
June 30, | December 31, | June 30, | ||||||||||
2006 | 2005 | 2005 | ||||||||||
LOTS OWNED AND CONTROLLED | ||||||||||||
Lots Owned | 22,484 | 23,445 | 22,721 | |||||||||
Lots Under Option | 14,192 | 18,819 | 20,327 | |||||||||
Homes Completed or Under Construction (including models) | 6,874 | 6,891 | 7,891 | |||||||||
LOTS OWNED AND CONTROLLED BY MARKET | ||||||||||||
(excluding homes under construction) | ||||||||||||
Arizona | 9,983 | 11,035 | 11,763 | |||||||||
California | 4,901 | 5,372 | 4,216 | |||||||||
Colorado | 5,175 | 5,837 | 6,541 | |||||||||
Delaware Valley | 1,338 | 1,754 | 1,586 | |||||||||
Florida | 3,674 | 4,403 | 4,259 | |||||||||
Illinois | 451 | 616 | 771 | |||||||||
Maryland | 1,714 | 1,852 | 1,829 | |||||||||
Nevada | 4,187 | 5,455 | 5,143 | |||||||||
Utah | 1,712 | 1,382 | 1,270 | |||||||||
Virginia | 3,464 | 4,007 | 3,795 | |||||||||
Subtotal | 36,599 | 41,713 | 41,173 | |||||||||
Texas | 77 | 551 | 1,875 | |||||||||
Total Company | 36,676 | 42,264 | 43,048 | |||||||||
ACTIVE SUBDIVISIONS | ||||||||||||
Arizona | 61 | 54 | 44 | |||||||||
California | 45 | 34 | 31 | |||||||||
Colorado | 45 | 57 | 55 | |||||||||
Delaware Valley | 7 | 7 | 5 | |||||||||
Florida | 28 | 19 | 23 | |||||||||
Illinois | 7 | 8 | 5 | |||||||||
Maryland | 18 | 11 | 14 | |||||||||
Nevada | 35 | 43 | 45 | |||||||||
Utah | 20 | 18 | 17 | |||||||||
Virginia | 23 | 20 | 18 | |||||||||
Subtotal | 289 | 271 | 257 | |||||||||
Texas | 4 | 21 | 25 | |||||||||
Total Company | 293 | 292 | 282 | |||||||||
Average for Quarter Ended | 300 | 287 | 275 | |||||||||
- more -
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
AVERAGE SELLING PRICE PER HOME CLOSED | ||||||||||||||||
Arizona | $ | 313.6 | $ | 219.5 | $ | 300.0 | $ | 211.7 | ||||||||
California | 574.5 | 498.1 | 552.5 | 508.4 | ||||||||||||
Colorado | 308.3 | 286.2 | 302.6 | 284.6 | ||||||||||||
Delaware Valley | 387.5 | 347.3 | 398.0 | 347.3 | ||||||||||||
Florida | 293.5 | 206.4 | 295.6 | 196.3 | ||||||||||||
Illinois | 374.5 | 451.6 | 369.0 | 439.8 | ||||||||||||
Maryland | 573.9 | 418.2 | 572.5 | 420.8 | ||||||||||||
Nevada | 320.9 | 297.7 | 321.9 | 293.3 | ||||||||||||
Texas | 166.8 | 158.6 | 167.9 | 157.2 | ||||||||||||
Utah | 291.5 | 215.1 | 277.3 | 214.2 | ||||||||||||
Virginia | 573.3 | 507.4 | 584.9 | 496.3 | ||||||||||||
Company Average | $ | 354.0 | $ | 293.2 | $ | 352.1 | $ | 291.8 | ||||||||
Company Average Without Texas | $ | 362.8 | $ | 302.9 | $ | 360.6 | $ | 300.4 | ||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
ORDERS FOR HOMES, NET (UNITS) | ||||||||||||||||
Arizona | 679 | 1,090 | 1,598 | 2,242 | ||||||||||||
California | 392 | 702 | 936 | 1,233 | ||||||||||||
Colorado | 291 | 594 | 742 | 1,258 | ||||||||||||
Delaware Valley | 35 | 57 | 74 | 100 | ||||||||||||
Florida | 177 | 359 | 449 | 679 | ||||||||||||
Illinois | 18 | 31 | 62 | 60 | ||||||||||||
Maryland | 98 | 131 | 250 | 276 | ||||||||||||
Nevada | 519 | 1,209 | 1,298 | 1,959 | ||||||||||||
Utah | 326 | 236 | 665 | 484 | ||||||||||||
Virginia | 113 | 234 | 307 | 577 | ||||||||||||
Subtotal | 2,648 | 4,643 | 6,381 | 8,868 | ||||||||||||
Texas | 90 | 189 | 157 | 510 | ||||||||||||
Total | 2,738 | 4,832 | 6,538 | 9,378 | ||||||||||||
Estimated Value of Orders for Homes, net | $ | 914,010 | $ | 1,702,759 | $ | 2,274,252 | $ | 3,178,369 | ||||||||
Estimated Average Selling Price of Orders for Homes, net | $ | 333.8 | $ | 352.4 | $ | 347.9 | $ | 338.9 | ||||||||
Order Cancellation Rate5 | 43.2 | % | 19.3 | % | 36.7 | % | 19.8 | % | ||||||||
3 | Order Cancellation Rate is calculated as total cancelled home order contracts during a specified period of time as a percent of total home orders received during such time period. |
- more -
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
HOMES CLOSED (UNITS) | ||||||||||||||||
Arizona | 843 | 859 | 1,621 | 1,655 | ||||||||||||
California | 405 | 377 | 869 | 763 | ||||||||||||
Colorado | 421 | 568 | 820 | 1,016 | ||||||||||||
Delaware Valley | 41 | 1 | 72 | 1 | ||||||||||||
Florida | 255 | 285 | 507 | 580 | ||||||||||||
Illinois | 37 | 16 | 73 | 21 | ||||||||||||
Maryland | 112 | 80 | 186 | 154 | ||||||||||||
Nevada | 738 | 626 | 1,413 | 1,235 | ||||||||||||
Utah | 201 | 233 | 374 | 401 | ||||||||||||
Virginia | 171 | 230 | 348 | 442 | ||||||||||||
Subtotal | 3,224 | 3,275 | 6,283 | 6,268 | ||||||||||||
Texas | 152 | 237 | 291 | 402 | ||||||||||||
Total | 3,376 | 3,512 | 6,574 | 6,670 | ||||||||||||
June 30, | December 31, | June 30, | ||||||||||||||
2006 | 2005 | 2005 | ||||||||||||||
BACKLOG (UNITS) | ||||||||||||||||
Arizona | 2,076 | 2,099 | 2,730 | |||||||||||||
California | 832 | 765 | 1,277 | |||||||||||||
Colorado | 499 | 577 | 934 | |||||||||||||
Delaware Valley | 183 | 181 | 122 | |||||||||||||
Florida | 541 | 599 | 737 | |||||||||||||
Illinois | 69 | 80 | 57 | |||||||||||||
Maryland | 315 | 251 | 347 | |||||||||||||
Nevada | 908 | 1,023 | 1,470 | |||||||||||||
Utah | 629 | 338 | 372 | |||||||||||||
Virginia | 340 | 381 | 803 | |||||||||||||
Subtotal | 6,392 | 6,294 | 8,849 | |||||||||||||
Texas | 104 | 238 | 364 | |||||||||||||
Total | 6,496 | 6,532 | 9,213 | |||||||||||||
Backlog Est. Sales Value | $ | 2,440,000 | $ | 2,440,000 | $ | 3,140,000 | ||||||||||
Estimated Average Selling Price of Homes in Backlog | $ | 375.6 | $ | 373.5 | $ | 340.8 | ||||||||||
###