Exhibit 99.1
NEWS BULLETIN
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M.D.C. HOLDINGS, INC. | RICHMOND AMERICAN HOMES HOMEAMERICAN MORTGAGE |
FOR IMMEDIATE RELEASE
TUESDAY, OCTOBER 24, 2006
TUESDAY, OCTOBER 24, 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 THIRD QUARTER EARNINGS;
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG
• | Diluted earnings per share of $1.06 vs. $2.62 in 2005 | ||
• | Net income of $48.7 million, compared with $121.0 million in 2005 | ||
• | Pre-tax inventory impairments and project cost write-offs of $29.4 million | ||
• | Total revenues of $1.08 billion; $1.17 billion in 2005 | ||
• | Closed 2,955 homes at an average selling price of $358,200 | ||
• | Financial services and other profits of $13.0 million vs. $9.6 million in 2005 | ||
• | Net orders for 2,120 homes valued at $678.1 million | ||
• | Quarter-end backlog of 5,661 homes valued at $2.10 billion | ||
• | Unrestricted cash and available borrowing capacity of $1.36 billion | ||
• | Cash flow from operations of $70.9 million in 2006 third quarter |
DENVER, Tuesday, October 24, 2006 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the quarter ended September 30, 2006 of $48.7 million, or $1.06 per diluted share, compared with net income of $121.0 million, or $2.62 per diluted share, for the same period in 2005. Total revenue for the third quarter reached $1.08 billion, compared with revenue of $1.17 billion for the same period in 2005. Operating results for the 2006 third quarter were impacted adversely by non-cash, pre-tax charges for inventory impairments and project cost write-offs of $19.9 million and $9.5 million, respectively.
Net income for the nine months ended September 30, 2006 was $220.6 million, or $4.80 per diluted share, compared with net income of $308.2 million, or $6.70 per diluted share, for the same period in 2005. Total revenues for the nine months ended September 30, 2006 reached $3.46 billion, compared with $3.15 billion for the first nine months of 2005.
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M.D.C. HOLDINGS, INC.
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Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “The challenges experienced by the homebuilding industry during the first half of 2006 remained prevalent during the third quarter, as the operating environment in most markets became increasingly competitive in the face of continued expansion of unsold new and existing home inventories. In meeting these challenges, we have remained committed to the operating and financial disciplines that contributed to the achievement of our ‘investment grade’ financial position, with a focus on strengthening our balance sheet, generating cash flow and preserving capital for future opportunities to grow when our markets begin to return to more normal conditions.”
Mizel continued, “We have continued to reduce the number of our lots controlled to maintain a level more consistent with our two-year supply objective. For more than a year, we have pursued modifications to pricing and terms of proposed and existing land acquisition contracts to comply with our more stringent underwriting guidelines, and we have continued to terminate contracts that do not meet these heightened standards. These actions have enabled us to reduce our lots under control by more than 25% since the beginning of the year, with less than 3% of our stockholders’ equity at risk for our 11,000 optioned lots. In addition, our investment in land declined by almost $100 million in the third quarter alone, which contributed to our generating more than $70 million in cash flow from operations during this period. As a result, we ended the quarter with $1.36 billion in available cash and borrowing capacity, up 25% from last September.”
Homebuilding Results
Homebuilding income before taxes for the quarter and nine months ended September 30, 2006 was $82.3 million and $385.8 million, respectively, compared with $211.3 million and $559.1 million for the same periods in 2005. The income decreases in the 2006 periods were driven by reduced home closings and significant declines in home gross margins from the all-time high levels achieved during the same periods in 2005, partially offset by the impact of increased average selling prices. In addition, homebuilding income before taxes for both the quarter and nine months ended September 30, 2006 was impacted adversely by non-cash, pre-tax inventory impairment charges of $19.9 million and $20.8 million, respectively, while no impairments were realized for the comparable periods in 2005. The Company closed 2,955 homes and produced home gross margins of 22.7% in the 2006 third quarter, compared with 3,686 home closings and home gross margins of 28.8% for the comparable period in 2005. For the nine months ended September 30, 2006, the Company closed 9,529 homes and produced home gross margins of 24.4%, compared with 10,356 home closings and home gross margins of 28.6% for the nine months ended September 30, 2005. Average selling prices reached $358,200 and $354,000, respectively, for the quarter and nine months ended September 30, 2006, up $46,800 and $55,200 from the same periods in 2005.
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M.D.C. HOLDINGS, INC.
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Homebuilding commissions, marketing, general and administrative (“SG&A”) expenses were $137.0 million, or 12.9% of home sales revenue, for the 2006 third quarter, compared with $118.9 million, or 10.4% of home sales revenue, for the 2005 third quarter. For the nine months ended September 30, 2006, homebuilding SG&A expenses were $418.3 million, or 12.4% of home sales revenue, compared with $329.8 million, or 10.7% of home sales revenue, for the same period in 2005. The SG&A expenses for the three and nine months ended September 30, 2006 included project cost write-offs of $9.5 million and $23.0 million, respectively, compared with $2.5 million and $5.2 million of such costs for the same periods in 2005.
Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “We experienced reduced home gross margins in each of our markets except Utah and Delaware Valley, with the most significant decreases occurring in Nevada and California, as has been the case in the previous 2006 quarters, as well as in Virginia, due to increased competition and extreme inventory pressures in that market. The $19.9 million in inventory impairment charges we recognized during the third quarter, which are not included in our home gross margins, primarily relate to five projects in California where we experienced a much slower than anticipated home order pace and significantly increased sales incentive requirements.”
Reece continued, “Similar to our 2006 second quarter, we deferred $18.5 million in profits related to certain homes closed in the third quarter 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. However, we more than offset this deferral by recognizing $30.7 million in profits that had been deferred in the second quarter, resulting in a net increase to homebuilding profits for the 2006 third quarter of $12.2 million. This net increase in profits raised third quarter home gross margins by 90 basis points and average selling prices by $4,100.”
Reece concluded, “Our SG&A expenses increased year-over-year in the 2006 third 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. Also, write-offs of project costs, which include option deposits and other costs related to lots that we have chosen not to acquire, increased by $7.0 million from the 2005 third quarter. Nevertheless, we experienced a sequential decline in our general and administrative expenses from the 2006 second quarter of almost $10.0 million, primarily reflecting reduced employee-related costs resulting from our efforts to right-size our homebuilding operations in view of current market conditions.”
Improved Financial Services and Other Results
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M.D.C. HOLDINGS, INC.
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Income before taxes from the Company’s financial services and other segment for the quarter and nine months ended September 30, 2006 increased to $13.0 million and $35.2 million, respectively, compared with $9.6 million and $18.9 million, respectively, during the same periods in the previous year. The profit improvements primarily resulted from higher gains on sales of mortgage loans, compared with the same periods in 2005. Increased dollar volumes of mortgage loan originations and mortgage loans sold during the 2006 periods drove the higher gains. The Company achieved these increased volumes by improving its mortgage capture rate, largely as a result of expanding the mortgage loan products that it could originate directly for its customers, and increasing its average loan amounts in connection with the Company’s higher average selling prices.
Home Orders and Backlog
MDC received orders, net of cancellations, for 2,120 homes with an estimated sales value of $678.1 million during the 2006 third quarter, compared with net orders for 3,551 homes with an estimated sales value of $1.22 billion during the same period in 2005. For the nine months ended September 30, 2006, the Company received net orders for 8,658 homes with an estimated sales value of $2.95 billion, compared with 12,929 net orders with an estimated sales value of $4.40 billion for the nine months ended September 30, 2005. The Company ended the third quarter of 2006 with a backlog of 5,661 homes, compared with a backlog of 9,078 homes at September 30, 2005. The estimated sales value of backlog at the end of the 2006 third quarter was $2.10 billion, compared with $3.29 billion at September 30, 2005.
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 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, 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,
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M.D.C. HOLDINGS, INC.
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among other things, (1) general economic and business conditions, including changes in 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/A for the year ended December 31, 2005, and Form 10-Q/A for the quarter ended June 30, 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.
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M.D.C. HOLDINGS, INC.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months | Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
REVENUE | ||||||||||||||||
Home sales revenue | $ | 1,058,408 | $ | 1,147,757 | $ | 3,372,799 | $ | 3,094,141 | ||||||||
Land sales revenue | 3,336 | 1,269 | 18,812 | 2,565 | ||||||||||||
Other revenue | 21,149 | 18,786 | 66,912 | 51,362 | ||||||||||||
Total Revenue | 1,082,893 | 1,167,812 | 3,458,523 | 3,148,068 | ||||||||||||
COSTS AND EXPENSES | ||||||||||||||||
Home cost of sales | 818,015 | 817,330 | 2,550,018 | 2,208,882 | ||||||||||||
Land cost of sales | 3,210 | 706 | 18,124 | 1,496 | ||||||||||||
Inventory impairments | 19,915 | — | 20,775 | — | ||||||||||||
Marketing expenses | 31,296 | 26,106 | 91,899 | 73,432 | ||||||||||||
Commission expenses | 36,390 | 30,736 | 106,627 | 85,262 | ||||||||||||
General and administrative expenses | 97,558 | 99,557 | 318,053 | 285,550 | ||||||||||||
Related party expenses | 88 | 51 | 1,891 | 214 | ||||||||||||
Total Costs and Expenses | 1,006,472 | 974,486 | 3,107,387 | 2,654,836 | ||||||||||||
Income before income taxes | 76,421 | 193,326 | 351,136 | 493,232 | ||||||||||||
Provisions for income taxes | (27,715 | ) | (72,336 | ) | (130,518 | ) | (184,988 | ) | ||||||||
NET INCOME | $ | 48,706 | $ | 120,990 | $ | 220,618 | $ | 308,244 | ||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic | $ | 1.08 | $ | 2.73 | $ | 4.91 | $ | 7.03 | ||||||||
Diluted | $ | 1.06 | $ | 2.62 | $ | 4.80 | $ | 6.70 | ||||||||
WEIGHTED-AVERAGE SHARES | ||||||||||||||||
Basic | 44,972 | 44,379 | 44,911 | 43,849 | ||||||||||||
Diluted | 45,868 | 46,258 | 45,932 | 46,006 | ||||||||||||
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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)
September 30, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 132,844 | $ | 214,531 | ||||
Restricted cash | 5,082 | 6,742 | ||||||
Home sales receivables | 75,120 | 134,270 | ||||||
Mortgage loans held in inventory | 203,375 | 237,376 | ||||||
Inventories, net | ||||||||
Housing completed or under construction | 1,578,696 | 1,320,106 | ||||||
Land and land under development | 1,662,034 | 1,677,948 | ||||||
Property and equipment, net | 45,560 | 49,119 | ||||||
Deferred income taxes | 77,259 | 54,319 | ||||||
Prepaid expenses and other assets, net | 176,073 | 165,439 | ||||||
Total Assets | $ | 3,956,043 | $ | 3,859,850 | ||||
LIABILITIES | ||||||||
Accounts payable | $ | 200,703 | $ | 201,747 | ||||
Accrued liabilities | 424,436 | 442,409 | ||||||
Income taxes payable | 14,821 | 102,656 | ||||||
Related party liabilities | — | 8,100 | ||||||
Homebuilding line of credit | — | — | ||||||
Mortgage line of credit | 152,369 | 156,532 | ||||||
Senior notes, net | 996,583 | 996,297 | ||||||
Total Liabilities | 1,788,912 | 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; 44,995,000 and 44,981,000 issued and outstanding, respectively, at September 30, 2006 and 44,642,000 and 44,630,000 issued and outstanding, respectively, at December 31, 2005 | 450 | 447 | ||||||
Additional paid-in capital | 750,013 | 722,291 | ||||||
Retained earnings | 1,419,886 | 1,232,971 | ||||||
Unearned restricted stock | (1,937 | ) | (2,478 | ) | ||||
Accumulated other comprehensive loss | (622 | ) | (622 | ) | ||||
Less treasury stock, at cost; 14,000 and 12,000 shares, respectively, at September 30, 2006 and December 31, 2005 | (659 | ) | (500 | ) | ||||
Total Stockholders’ Equity | 2,167,131 | 1,952,109 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 3,956,043 | $ | 3,859,850 | ||||
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M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)
Information on Segments
(Dollars in thousands)
(Unaudited)
Three Months | Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
REVENUE | ||||||||||||||||
West | $ | 653,932 | $ | 631,171 | $ | 2,061,708 | $ | 1,734,412 | ||||||||
Mountain | 168,193 | 228,024 | 519,107 | 603,756 | ||||||||||||
East | 137,050 | 185,504 | 444,765 | 470,220 | ||||||||||||
Other Homebuilding | 105,553 | 105,558 | 374,299 | 293,266 | ||||||||||||
Total Homebuilding | 1,064,728 | 1,150,257 | 3,399,879 | 3,101,654 | ||||||||||||
Financial Services and Other | 18,105 | 17,318 | 57,969 | 44,955 | ||||||||||||
Corporate | 60 | 237 | 675 | 1,459 | ||||||||||||
Consolidated | $ | 1,082,893 | $ | 1,167,812 | $ | 3,458,523 | $ | 3,148,068 | ||||||||
INCOME BEFORE TAXES | ||||||||||||||||
West | $ | 53,762 | $ | 135,954 | $ | 274,642 | $ | 385,522 | ||||||||
Mountain | 9,320 | 19,161 | 25,183 | 49,496 | ||||||||||||
East | 23,911 | 54,467 | 85,691 | 123,009 | ||||||||||||
Other Homebuilding | (4,660 | ) | 1,732 | 237 | 1,099 | |||||||||||
Total Homebuilding | 82,333 | 211,314 | 385,753 | 559,126 | ||||||||||||
Financial Services and Other | 12,989 | 9,600 | 35,161 | 18,897 | ||||||||||||
Corporate | (18,901 | ) | (27,588 | ) | (69,778 | ) | (84,791 | ) | ||||||||
Consolidated | $ | 76,421 | $ | 193,326 | $ | 351,136 | $ | 493,232 | ||||||||
September 30, | December 31, | |||||||
2006 | 2005 | |||||||
TOTAL ASSETS | ||||||||
West | $ | 2,185,038 | $ | 2,113,384 | ||||
Mountain | 552,551 | 466,362 | ||||||
East | 395,879 | 368,848 | ||||||
Other Homebuilding | 323,079 | 359,151 | ||||||
Total Homebuilding | 3,456,547 | 3,307,745 | ||||||
Financial Services and Other | 261,610 | 253,365 | ||||||
Corporate | 237,886 | 298,740 | ||||||
Consolidated | $ | 3,956,043 | $ | 3,859,850 | ||||
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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months | Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
SELECTED OPERATING DATA | ||||||||||||||||
General and Administrative Expenses | ||||||||||||||||
Homebuilding Operations | 69,317 | 62,017 | 219,820 | 171,133 | ||||||||||||
Financial Services and Other Operations | 9,295 | 9,765 | 29,598 | 28,381 | ||||||||||||
Corporate | 18,946 | 27,775 | 68,635 | 86,036 | ||||||||||||
Total | 97,558 | 99,557 | 318,053 | 285,550 | ||||||||||||
SG&A as a Percent of Home Sales Revenues | ||||||||||||||||
Homebuilding Operations | 12.9 | % | 10.4 | % | 12.4 | % | 10.7 | % | ||||||||
Corporate | 1.8 | % | 2.4 | % | 2.1 | % | 2.7 | % | ||||||||
Total Homebuilding and Corporate | 14.7 | % | 12.8 | % | 14.5 | % | 13.4 | % | ||||||||
Depreciation and Amortization | $ | 13,028 | $ | 12,932 | $ | 41,537 | $ | 34,518 | ||||||||
Home Gross Margins1 | 22.7 | % | 28.8 | % | 24.4 | % | 28.6 | % | ||||||||
Cash Provided by (Used in) Operating Activities | $ | 70,928 | $ | (228,992 | ) | $ | (41,343 | ) | $ | (557,036 | ) | |||||
Cash Used in Investing Activities | $ | (2,893 | ) | $ | (6,394 | ) | $ | (7,224 | ) | $ | (18,118 | ) | ||||
Cash Provided by (Used in) Financing Activities | $ | (26,675 | ) | $ | 293,799 | $ | (33,120 | ) | $ | 293,965 | ||||||
Ending Unrestricted Cash and Available Borrowing Capacity | $ | 1,356,532 | $ | 1,084,347 | N/A | N/A | ||||||||||
After-Tax Return on Average Capital2 | 13.1 | % | 18.7 | % | N/A | N/A | ||||||||||
After-Tax Return on Average Assets2 | 10.8 | % | 15.4 | % | N/A | N/A | ||||||||||
After-Tax Return on Average Equity2 | 20.8 | % | 29.8 | % | N/A | N/A | ||||||||||
Interest in Home Cost of Sales as a Percent of Home Sales Revenue | 1.2 | % | 0.6 | % | 1.1 | % | 0.7 | % | ||||||||
Corporate and Homebuilding Interest Capitalized | ||||||||||||||||
Interest Capitalized in Inventories at Beginning of Period | $ | 48,569 | $ | 30,293 | $ | 41,999 | $ | 24,220 | ||||||||
Interest Capitalized During the Period | 14,150 | 14,615 | 43,993 | 36,540 | ||||||||||||
Interest in Home and Land Cost of Sales for the Period | 12,574 | 7,030 | 35,847 | 22,882 | ||||||||||||
Interest Capitalized in Inventories at End of Period | $ | 50,145 | $ | 37,878 | $ | 50,145 | $ | 37,878 | ||||||||
Interest Capitalized as a Percent of Inventories | 1.5 | % | 1.3 | % | N/A | N/A |
1 | Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing and inventory impairments) as a percent of home sales revenue. | |
2 | Based on last twelve months data. |
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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
September 30, | December 31, | September 30, | ||||||||||
2006 | 2005 | 2005 | ||||||||||
LOTS OWNED AND CONTROLLED | ||||||||||||
Lots Owned | 20,613 | 23,445 | 21,660 | |||||||||
Lots Under Option | 10,952 | 18,819 | 22,327 | |||||||||
Homes Completed or Under Construction | 6,594 | 6,891 | 9,217 | |||||||||
LOTS OWNED BY MARKET | ||||||||||||
(excluding homes completed or under construction) | ||||||||||||
Arizona | 6,958 | 7,385 | 7,229 | |||||||||
California | 3,051 | 3,367 | 2,632 | |||||||||
Colorado | 3,325 | 3,639 | 3,560 | |||||||||
Delaware Valley | 283 | 471 | 367 | |||||||||
Florida | 1,220 | 1,201 | 970 | |||||||||
Illinois | 300 | 430 | 474 | |||||||||
Maryland | 505 | 679 | 734 | |||||||||
Nevada | 3,096 | 4,055 | 3,482 | |||||||||
Texas | 69 | 471 | 569 | |||||||||
Utah | 1,132 | 964 | 881 | |||||||||
Virginia | 674 | 783 | 762 | |||||||||
Total Company | 20,613 | 23,445 | 21,660 | |||||||||
LOTS UNDER OPTION BY MARKET | ||||||||||||
Arizona | 1,283 | 3,650 | 3,830 | |||||||||
California | 1,053 | 2,005 | 3,139 | |||||||||
Colorado | 1,304 | 2,198 | 3,187 | |||||||||
Delaware Valley | 874 | 1,283 | 1,111 | |||||||||
Florida | 1,999 | 3,202 | 3,411 | |||||||||
Illinois | 47 | 186 | 186 | |||||||||
Maryland | 1,034 | 1,173 | 1,156 | |||||||||
Nevada | 627 | 1,400 | 1,639 | |||||||||
Texas | — | 80 | 951 | |||||||||
Utah | 272 | 418 | 568 | |||||||||
Virginia | 2,459 | 3,224 | 3,149 | |||||||||
Total Company | 10,952 | 18,819 | 22,327 | |||||||||
Non-refundable Option Deposits | ||||||||||||
Cash | $ | 34,034 | $ | 48,157 | $ | 50,050 | ||||||
Letters of Credit | 16,069 | 23,142 | 25,728 | |||||||||
Total Non-refundable Option Deposits | $ | 50,103 | $ | 71,299 | $ | 75,778 | ||||||
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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Three Months | Nine Months | |||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||
2006 | 2005 | 2006 | 2005 | |||||||||||||
HOMES CLOSED (UNITS) | ||||||||||||||||
Arizona | 716 | 895 | 2,337 | 2,550 | ||||||||||||
California | 383 | 475 | 1,252 | 1,238 | ||||||||||||
Colorado | 334 | 599 | 1,154 | 1,615 | ||||||||||||
Delaware Valley | 50 | 17 | 122 | 18 | ||||||||||||
Florida | 195 | 252 | 702 | 832 | ||||||||||||
Illinois | 46 | 19 | 119 | 40 | ||||||||||||
Maryland | 104 | 106 | 290 | 260 | ||||||||||||
Nevada | 696 | 616 | 2,109 | 1,851 | ||||||||||||
Texas | 75 | 214 | 366 | 616 | ||||||||||||
Utah | 206 | 239 | 580 | 640 | ||||||||||||
Virginia | 150 | 254 | 498 | 696 | ||||||||||||
Total Company | 2,955 | 3,686 | 9,529 | 10,356 | ||||||||||||
AVERAGE SELLING PRICE PER HOME CLOSED | ||||||||||||||||
Arizona | $ | 311.8 | $ | 221.2 | $ | 303.6 | $ | 215.0 | ||||||||
California | 520.7 | 510.5 | 542.8 | 509.2 | ||||||||||||
Colorado | 301.4 | 287.7 | 302.2 | 285.7 | ||||||||||||
Delaware Valley | 394.3 | 362.2 | 396.5 | 361.3 | ||||||||||||
Florida | 275.6 | 226.2 | 290.1 | 205.3 | ||||||||||||
Illinois | 365.6 | 411.7 | 367.7 | 426.5 | ||||||||||||
Maryland | 576.1 | 513.5 | 573.8 | 458.6 | ||||||||||||
Nevada | 317.8 | 307.6 | 320.6 | 298.1 | ||||||||||||
Texas | 164.0 | 162.7 | 167.1 | 159.1 | ||||||||||||
Utah | 321.5 | 226.9 | 293.0 | 219.0 | ||||||||||||
Virginia | 486.2 | 515.9 | 555.2 | 503.4 | ||||||||||||
Company Average | $ | 358.2 | $ | 311.4 | $ | 354.0 | $ | 298.8 | ||||||||
ORDERS FOR HOMES, NET (UNITS) | ||||||||||||||||
Arizona | 680 | 798 | 2,278 | 3,040 | ||||||||||||
California | 273 | 504 | 1,209 | 1,737 | ||||||||||||
Colorado | 196 | 469 | 938 | 1,727 | ||||||||||||
Delaware Valley | 36 | 56 | 110 | 156 | ||||||||||||
Florida | 81 | 238 | 530 | 917 | ||||||||||||
Illinois | 20 | 53 | 82 | 113 | ||||||||||||
Maryland | 70 | 89 | 320 | 365 | ||||||||||||
Nevada | 436 | 829 | 1,734 | 2,788 | ||||||||||||
Texas | 1 | 162 | 158 | 672 | ||||||||||||
Utah | 251 | 257 | 916 | 741 | ||||||||||||
Virginia | 76 | 96 | 383 | 673 | ||||||||||||
Total Company | 2,120 | 3,551 | 8,658 | 12,929 | ||||||||||||
Estimated Value of Orders for Homes, net | $ | 678,110 | $ | 1,223,834 | $ | 2,952,362 | $ | 4,402,203 | ||||||||
Estimated Average Selling Price of Orders for Homes, net | $ | 319.9 | $ | 344.6 | $ | 341.0 | $ | 340.5 | ||||||||
Order Cancellation Rate3 | 48.5 | % | 25.7 | % | 40.1 | % | 21.5 | % | ||||||||
3 | Gross number of cancellations received divided by gross number of orders received. |
-more-
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)
September 30, | December 31, | September 30, | ||||||||||
2006 | 2005 | 2005 | ||||||||||
BACKLOG (UNITS) | ||||||||||||
Arizona | 2,040 | 2,099 | 2,633 | |||||||||
California | 722 | 765 | 1,306 | |||||||||
Colorado | 361 | 577 | 804 | |||||||||
Delaware Valley | 169 | 181 | 161 | |||||||||
Florida | 427 | 599 | 723 | |||||||||
Illinois | 43 | 80 | 91 | |||||||||
Maryland | 281 | 251 | 330 | |||||||||
Nevada | 648 | 1,023 | 1,683 | |||||||||
Texas | 30 | 238 | 312 | |||||||||
Utah | 674 | 338 | 390 | |||||||||
Virginia | 266 | 381 | 645 | |||||||||
Total Company | 5,661 | 6,532 | 9,078 | |||||||||
Backlog Estimated Sales Value | $ | 2,100,000 | $ | 2,440,000 | $ | 3,290,000 | ||||||
Estimated Average Selling Price of Homes in Backlog | $ | 371.0 | $ | 373.5 | $ | 362.4 | ||||||
ACTIVE SUBDIVISIONS | ||||||||||||
Arizona | 65 | 54 | 46 | |||||||||
California | 46 | 34 | 28 | |||||||||
Colorado | 45 | 57 | 56 | |||||||||
Delaware Valley | 7 | 7 | 6 | |||||||||
Florida | 29 | 19 | 19 | |||||||||
Illinois | 7 | 8 | 8 | |||||||||
Maryland | 17 | 11 | 10 | |||||||||
Nevada | 37 | 43 | 47 | |||||||||
Texas | 2 | 21 | 24 | |||||||||
Utah | 21 | 18 | 16 | |||||||||
Virginia | 19 | 20 | 20 | |||||||||
Total Company | 295 | 292 | 280 | |||||||||
Average for Quarter Ended | 296 | 287 | 281 | |||||||||