Exhibit 99.1
NEWS BULLETIN
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M.D.C. HOLDINGS, INC. | RICHMOND AMERICAN HOMES | |
HOMEAMERICAN MORTGAGE |
FOR IMMEDIATE RELEASE
THURSDAY, APRIL 26, 2007
THURSDAY, APRIL 26, 2007
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 FIRST QUARTER 2007 RESULTS
• | Net loss of $94.4 million; diluted loss per share of $2.07 | ||
• | Pre-tax loss of $143.7 million; includes asset impairments and project cost write-offs of $145.4 million | ||
• | Cash flow from operations of $149.3 million; $633.2 million over the last three quarters | ||
• | Quarter-end cash of $631 million; no borrowings on homebuilding line of credit | ||
• | Ending cash and available borrowing capacity of $1.87 billion | ||
• | Only 422 finished speculative homes in inventory at quarter-end | ||
• | Total revenue of $745 million; $1.15 billion in 2006 | ||
• | Closed 2,001 homes at an average selling price of $355,700 | ||
• | Net orders for 2,558 homes valued at $902.0 million | ||
• | Quarter-end backlog of 4,195 homes valued at $1.50 billion |
DENVER, Thursday, April 26, 2007 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended March 31, 2007 of $94.4 million, or $2.07 per diluted share, which included pre-tax charges of $141.4 million for asset impairments and $4.0 million for write-offs of deposits and pre-acquisition costs associated with land option contracts the Company does not intend to pursue. Net income for the first quarter of 2006 was $95.4 million, or $2.08 per diluted share. Total revenue for the first quarter was $745 million, compared with revenue of $1.15 billion for the same period in 2006.
Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “The weakened demand for new homes experienced in 2006 continued throughout the first quarter of 2007, with most of our markets reporting lower orders for new homes compared to a year earlier. Many prospective homebuyers hesitated in making purchase decisions because of uncertainties in the stability of home prices. Competition for new home orders continued at a high level, caused in
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M.D.C. HOLDINGS, INC.
part by expanding new and existing home inventories. In addition, new issues emerged in the mortgage industry that caused a tightening of sub-prime and Alt-A lending standards, which negatively impacted net home orders in March. The existence of these factors in most of our markets required us and our peers to increase the use of incentives to sell homes, which contributed significantly to our first quarter net loss.”
Mizel continued, “While awaiting signs of stabilization for our industry, we have continued to take actions that strengthen our balance sheet, improve our financial position and further prepare us to respond to opportunities that may emerge in this difficult homebuilding environment. In addition to reducing our supply of controlled lots by more than 10% since the beginning of the year, we generated almost $150 million in operating cash flow during the first quarter, contributing to a 47% year-over-year increase in our cash and available borrowing capacity to almost $1.9 billion. We ended the quarter with over $630 million in cash on hand and no borrowings under our homebuilding line of credit, and our debt-to-capital ratio declined year-over-year and continued to rank among the industry’s lowest.”
Homebuilding Results
Homebuilding loss before taxes for the quarter ended March 31, 2007 was $138.9 million, compared with income before taxes of $170.9 million for the same period in 2006. This pre-tax difference was driven in large part by the asset impairment charges discussed above, as well as significant declines in home closings and home gross margins from the first quarter levels achieved during the same period in 2006. These income decreases were offset partially by the impact of reduced homebuilding commissions, marketing, general and administrative expense (“SG&A”) in the 2007 first quarter. The Company closed 2,001 homes and produced home gross margins of 15.8% in the 2007 first quarter, compared with 3,198 home closings and home gross margins of 27.1% for the comparable period in 2006. Average selling prices reached $355,700 for the quarter, up $6,400 from the same period in 2006, while SG&A decreased to $113.3 million from $133.6 million for the prior year first quarter.
Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “Because the spring selling season did not materialize as anticipated, we continued to provide incentives and lower prices in many of our markets to encourage homebuyer demand, in many cases in response to actions taken by our competitors. As a result, we have reduced our performance expectations with respect to certain subdivisions, leading to $115 million of impairments to land inventory and $26 million of impairments to work in process inventory in the first quarter. Nearly all of the impairments occurred in California, Nevada and Florida, with California alone accounting for over 60% of the total charge. In total, more than 3,200 lots in 52 subdivisions were impaired. The quarter-end book value of these subdivisions after the impairments was $381 million, including $203 million of land and $178 million of work in process.”
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M.D.C. HOLDINGS, INC.
Reece concluded, “Our general and administrative expenses declined year-over-year in the 2007 first quarter by 19%, reflecting reduced employee-related costs resulting from our continued efforts to right-size our homebuilding operations in view of current market conditions. While commissions declined approximately in line with the decreases in home sales revenue, advertising expenses were almost the same as the 2006 first quarter, as we maintained an intense marketing program designed to improve homebuyer traffic in response to the continuing competitive home selling environment in most of our markets.”
Financial Services and Other Results
Income before taxes from the Company’s Financial Services and Other segment for the quarter ended March 31, 2007 was $7.5 million, compared with $11.2 million for the same period in the previous year. The decrease primarily resulted from lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in line with builder home closings.
Home Orders and Backlog
MDC received orders, net of cancellations, for 2,558 homes with an estimated sales value of $902 million during the 2007 first quarter, compared with net orders for 3,800 homes with an estimated sales value of $1.36 billion during the same period in 2006. Net home orders declined year-over-year in all of the Company’s markets except the Delaware Valley, with the largest unit decreases occurring in the West and Mountain homebuilding segments. During the 2007 first quarter, the Company’s order cancellation rate rose to approximately 35%, compared with the 31% rate experienced during the same period in 2006. The Company ended the first quarter of 2007 with a backlog of 4,195 homes, compared with a backlog of 7,134 homes at March 31, 2006. The estimated sales value of backlog at the end of the 2007 first quarter was $1.50 billion, compared with $2.70 billion at March 31, 2006.
MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2006 revenue. 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.
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M.D.C. HOLDINGS, INC.
Forward-Looking Statements
Certain statements in this release, including 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 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 cancellation rates, net home orders, home gross margins, and land and home values; (2) changes in interest rates and mortgage lending programs; (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 Annual Report on Form 10-K for the year ended December 31, 2006, which was 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 Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
REVENUE | ||||||||
Home sales revenue | $ | 711,800 | $ | 1,117,155 | ||||
Land sales revenue | 6,034 | 1,837 | ||||||
Other revenue | 27,290 | 26,433 | ||||||
Total Revenue | 745,124 | 1,145,425 | ||||||
COSTS AND EXPENSES | ||||||||
Home cost of sales | 599,199 | 814,849 | ||||||
Land cost of sales | 5,107 | 1,774 | ||||||
Asset impairments | 141,422 | 600 | ||||||
Marketing expenses | 29,079 | 29,035 | ||||||
Commission expenses | 23,250 | 32,843 | ||||||
General and administrative expenses | 90,657 | 111,266 | ||||||
Related party expenses | 91 | 2,577 | ||||||
Total Costs and Expenses | 888,805 | 992,944 | ||||||
(Loss) income before income taxes | (143,681 | ) | 152,481 | |||||
Benefit (provision) for income taxes | 49,283 | (57,060 | ) | |||||
NET (LOSS) INCOME | $ | (94,398 | ) | $ | 95,421 | |||
(LOSS) EARNINGS PER SHARE | ||||||||
Basic | $ | (2.07 | ) | $ | 2.13 | |||
Diluted | $ | (2.07 | ) | $ | 2.08 | |||
WEIGHTED-AVERAGE SHARES | ||||||||
Basic | 45,501 | 44,820 | ||||||
Diluted | 45,501 | 45,970 | ||||||
DIVIDENDS DECLARED PER SHARE | $ | 0.25 | $ | 0.25 | ||||
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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)
March 31, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 630,681 | $ | 507,947 | ||||
Restricted cash | 2,546 | 2,641 | ||||||
Home sales receivables | 69,255 | 143,936 | ||||||
Mortgage loans held in inventory, net | 150,356 | 212,903 | ||||||
Inventories | ||||||||
Housing completed or under construction | 1,171,137 | 1,178,671 | ||||||
Land and land under development | 1,341,804 | 1,575,158 | ||||||
Property and equipment, net | 41,503 | 44,606 | ||||||
Deferred income taxes | 174,590 | 124,880 | ||||||
Prepaid expenses and other assets, net | 107,593 | 119,133 | ||||||
Total Assets | $ | 3,689,465 | $ | 3,909,875 | ||||
LIABILITIES | ||||||||
Accounts payable | $ | 132,905 | $ | 171,005 | ||||
Accrued liabilities | 367,362 | 418,953 | ||||||
Income taxes payable | 11,602 | 28,485 | ||||||
Related party liabilities | 701 | 2,401 | ||||||
Homebuilding line of credit | — | — | ||||||
Mortgage line of credit | 100,703 | 130,467 | ||||||
Senior notes, net | 996,782 | 996,682 | ||||||
Total Liabilities | 1,610,055 | 1,747,993 | ||||||
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; 45,708,000 and 45,694,000 issued and outstanding, respectively, at March 31, 2007 and 45,179,000 and 45,165,000 issued and outstanding, respectively, at December 31, 2006 | 457 | 452 | ||||||
Additional paid-in capital | 783,873 | 760,831 | ||||||
Retained earnings | 1,296,742 | 1,402,261 | ||||||
Accumulated other comprehensive loss | (1,003 | ) | (1,003 | ) | ||||
Less treasury stock, at cost; 14,000 shares at March 31, 2007 and December 31, 2006 | (659 | ) | (659 | ) | ||||
Total Stockholders’ Equity | 2,079,410 | 2,161,882 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 3,689,465 | $ | 3,909,875 | ||||
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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 Ended | ||||||||
March 31, | ||||||||
2007 | 2006 | |||||||
REVENUE | ||||||||
West | $ | 454,654 | $ | 687,246 | ||||
Mountain | 145,191 | 163,190 | ||||||
East | 61,355 | 147,181 | ||||||
Other Homebuilding | 64,860 | 125,887 | ||||||
Total Homebuilding | 726,060 | 1,123,504 | ||||||
Financial Services and Other | 19,570 | 23,642 | ||||||
Corporate | 5,433 | 432 | ||||||
Intercompany Adjustments | (5,939 | ) | (2,153 | ) | ||||
Consolidated | $ | 745,124 | $ | 1,145,425 | ||||
(LOSS) INCOME BEFORE INCOME TAXES | ||||||||
West | $ | (125,391 | ) | $ | 122,063 | |||
Mountain | 10,971 | 8,635 | ||||||
East | (4,386 | ) | 35,318 | |||||
Other Homebuilding | (20,131 | ) | 4,882 | |||||
Total Homebuilding | (138,937 | ) | 170,898 | |||||
Financial Services and Other | 7,517 | 11,184 | ||||||
Corporate | (12,261 | ) | (29,601 | ) | ||||
Consolidated | $ | (143,681 | ) | $ | 152,481 | |||
ASSET IMPAIRMENTS | ||||||||
West | $ | 121,902 | $ | — | ||||
Mountain | 654 | — | ||||||
East | 2,567 | — | ||||||
Other Homebuilding | 16,297 | 600 | ||||||
Total Homebuilding | $ | 141,420 | $ | 600 | ||||
Realized Benefit of Prior-Period Asset Impairment | $ | 9,213 | $ | — | ||||
March 31, | December 31, | |||||||
2007 | 2006 | |||||||
TOTAL ASSETS | ||||||||
West | $ | 1,604,053 | $ | 1,869,442 | ||||
Mountain | 525,298 | 535,554 | ||||||
East | 320,779 | 333,902 | ||||||
Other Homebuilding | 232,328 | 266,326 | ||||||
Total Homebuilding | 2,682,458 | 3,005,224 | ||||||
Financial Services and Other | 177,810 | 246,734 | ||||||
Corporate | 829,197 | 657,917 | ||||||
Consolidated | $ | 3,689,465 | $ | 3,909,875 | ||||
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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 Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
2007 | 2006 | Amount | % | |||||||||||||
SELECTED FINANCIAL DATA | ||||||||||||||||
General and Administrative Expenses | ||||||||||||||||
Homebuilding Operations | $ | 60,999 | $ | 71,681 | $ | (10,682 | ) | -15 | % | |||||||
Financial Services and Other Operations | $ | 12,058 | $ | 12,129 | $ | (71 | ) | -1 | % | |||||||
Corporate | $ | 17,600 | $ | 27,456 | $ | (9,856 | ) | -36 | % | |||||||
SG&A as a Percent of Home Sales Revenue | ||||||||||||||||
Homebuilding Operations | 15.9 | % | 12.0 | % | 3.9 | % | ||||||||||
Corporate | 2.5 | % | 2.6 | % | -0.1 | % | ||||||||||
Depreciation and Amortization | $ | 11,820 | $ | 13,628 | $ | (1,808 | ) | -13 | % | |||||||
Home Gross Margins (1) | 15.8 | % | 27.1 | % | -11.3 | % | ||||||||||
Cash Provided by (Used in) Operating Activities | $ | 149,323 | $ | (108,443 | ) | $ | 257,766 | |||||||||
Cash Used in Investing Activities | $ | (710 | ) | $ | (1,638 | ) | $ | 928 | ||||||||
Cash (Used in) Provided by Financing Activities | $ | (25,879 | ) | $ | 61,289 | $ | (87,168 | ) | ||||||||
Ending Unrestricted Cash and Available Borrowing Capacity | $ | 1,868,783 | $ | 1,267,845 | $ | 600,938 | 47 | % | ||||||||
Corporate and Homebuilding Interest | ||||||||||||||||
Interest Capitalized During the Period | $ | 14,441 | $ | 14,841 | $ | (400 | ) | -3 | % | |||||||
Interest in Home and Land Cost of Sales for the Period | $ | 13,285 | $ | 9,618 | $ | 3,667 | 38 | % | ||||||||
Interest in Home Cost of Sales as a Percent of Home Sales Revenue | 1.9 | % | 0.9 | % | 1.0 | % | ||||||||||
Interest Capitalized in Inventories at End of Period | $ | 51,811 | $ | 47,222 | $ | 4,589 | 10 | % | ||||||||
HOMEAMERICAN OPERATING ACTIVITIES | ||||||||||||||||
Principal Amount of Mortgage Loans Originated | $ | 351,033 | $ | 526,231 | $ | (175,198 | ) | -33 | % | |||||||
Principal Amount of Mortgage Loans Brokered | $ | 118,342 | $ | 157,243 | $ | (38,901 | ) | -25 | % | |||||||
Capture Rate | 58 | % | 56 | % | 2 | % | ||||||||||
Including Brokered Loans | 77 | % | 72 | % | 5 | % | ||||||||||
Mortgage Products (% of Loans Originated) | ||||||||||||||||
Fixed Rate | 69 | % | 49 | % | 20 | % | ||||||||||
Adjustable Rate — Interest Only | 27 | % | 44 | % | -17 | % | ||||||||||
Adjustable Rate — Other | 4 | % | 7 | % | -3 | % | ||||||||||
Prime Loans (2) | 59 | % | 59 | % | 0 | % | ||||||||||
Alt-A Loans (3) | 35 | % | 34 | % | 1 | % | ||||||||||
Government Loans | 5 | % | 5 | % | 0 | % | ||||||||||
Sub-Prime Loans (4) | 1 | % | 2 | % | -1 | % |
(1) | Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing and asset impairments) as a percent of home sales revenue. | |
(2) | Prime loans are defined as loans with FICO scores greater than 620 and that comply in all ways with the documentation standards of the government sponsored enterprise guidelines. | |
(3) | Alt-A loans are defined as loans that would otherwise qualify as prime loans except that they do not comply in all ways with the government sponsored enterprise guidelines. | |
(4) | Sub-prime loans are loans that have FICO scores of less than or equal to 620. |
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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
March 31, | December 31, | March 31, | ||||||||||
2007 | 2006 | 2006 | ||||||||||
HOMES COMPLETED OR UNDER CONSTRUCTION | ||||||||||||
Unsold Homes Under Construction — Final | 422 | 476 | 261 | |||||||||
Unsold Homes Under Construction — Frame | 480 | 573 | 531 | |||||||||
Unsold Homes Under Construction — Foundation | 310 | 400 | 346 | |||||||||
Total Unsold Homes Under Construction | 1,212 | 1,449 | 1,138 | |||||||||
Sold Homes Under Construction | 2,677 | 2,430 | 4,934 | |||||||||
Model Homes | 792 | 757 | 709 | |||||||||
Homes Completed or Under Construction | 4,681 | 4,636 | 6,781 | |||||||||
LOTS OWNED(excluding homes completed or under construction) | ||||||||||||
Arizona | 5,701 | 6,368 | 7,686 | |||||||||
California | 2,508 | 2,802 | 3,622 | |||||||||
Nevada | 2,416 | 2,747 | 4,139 | |||||||||
West | 10,625 | 11,917 | 15,447 | |||||||||
Colorado | 3,274 | 3,479 | 3,508 | |||||||||
Utah | 987 | 1,185 | 1,295 | |||||||||
Mountain | 4,261 | 4,664 | 4,803 | |||||||||
Maryland | 492 | 528 | 624 | |||||||||
Virginia | 600 | 643 | 784 | |||||||||
East | 1,092 | 1,171 | 1,408 | |||||||||
Delaware Valley | 261 | 265 | 402 | |||||||||
Florida | 1,033 | 1,093 | 1,458 | |||||||||
Illinois | 268 | 287 | 380 | |||||||||
Texas | — | 13 | 365 | |||||||||
Other Homebuilding | 1,562 | 1,658 | 2,605 | |||||||||
Total | 17,540 | 19,410 | 24,263 | |||||||||
LOTS UNDER OPTION | ||||||||||||
Arizona | 575 | 744 | 3,592 | |||||||||
California | 157 | 387 | 1,921 | |||||||||
Nevada | 117 | 250 | 665 | |||||||||
West | 849 | 1,381 | 6,178 | |||||||||
Colorado | 931 | 801 | 2,064 | |||||||||
Utah | 91 | 91 | 454 | |||||||||
Mountain | 1,022 | 892 | 2,518 | |||||||||
Maryland | 992 | 960 | 1,148 | |||||||||
Virginia | 2,148 | 2,381 | 3,231 | |||||||||
East | 3,140 | 3,341 | 4,379 | |||||||||
Delaware Valley | 644 | 683 | 1,277 | |||||||||
Florida | 1,436 | 1,800 | 2,686 | |||||||||
Illinois | — | — | 186 | |||||||||
Texas | — | — | 80 | |||||||||
Other Homebuilding | 2,080 | 2,483 | 4,229 | |||||||||
Total | 7,091 | 8,097 | 17,304 | |||||||||
Non-refundable Option Deposits | ||||||||||||
Cash | $ | 15,649 | $ | 20,228 | $ | 44,108 | ||||||
Letters of Credit | 14,422 | 14,224 | 19,240 | |||||||||
Total Non-refundable Option Deposits | $ | 30,071 | $ | 34,452 | $ | 63,348 | ||||||
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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 Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
2007 | 2006 | Amount | % | |||||||||||||
HOMES CLOSED (UNITS) | ||||||||||||||||
Arizona | 652 | 778 | (126 | ) | -16 | % | ||||||||||
California | 328 | 464 | (136 | ) | -29 | % | ||||||||||
Nevada | 313 | 675 | (362 | ) | -54 | % | ||||||||||
West | 1,293 | 1,917 | (624 | ) | -33 | % | ||||||||||
Colorado | 164 | 399 | (235 | ) | -59 | % | ||||||||||
Utah | 228 | 173 | 55 | 32 | % | |||||||||||
Mountain | 392 | 572 | (180 | ) | -31 | % | ||||||||||
Maryland | 49 | 74 | (25 | ) | -34 | % | ||||||||||
Virginia | 68 | 177 | (109 | ) | -62 | % | ||||||||||
East | 117 | 251 | (134 | ) | -53 | % | ||||||||||
Delaware Valley | 46 | 31 | 15 | 48 | % | |||||||||||
Florida | 128 | 252 | (124 | ) | -49 | % | ||||||||||
Illinois | 14 | 36 | (22 | ) | -61 | % | ||||||||||
Texas | 11 | 139 | (128 | ) | -92 | % | ||||||||||
Other Homebuilding | 199 | 458 | (259 | ) | -57 | % | ||||||||||
Total | 2,001 | 3,198 | (1,197 | ) | -37 | % | ||||||||||
AVERAGE SELLING PRICE PER HOME CLOSED | ||||||||||||||||
Arizona | $ | 262.5 | $ | 285.2 | $ | (22.7 | ) | -8 | % | |||||||
California | 540.0 | 533.3 | 6.7 | 1 | % | |||||||||||
Colorado | 352.5 | 296.5 | 56.0 | 19 | % | |||||||||||
Delaware Valley | 489.6 | 412.0 | 77.6 | 19 | % | |||||||||||
Florida | 280.9 | 297.7 | (16.8 | ) | -6 | % | ||||||||||
Illinois | 311.3 | 363.3 | (52.0 | ) | -14 | % | ||||||||||
Maryland | 530.8 | 570.3 | (39.5 | ) | -7 | % | ||||||||||
Nevada | 305.3 | 323.1 | (17.8 | ) | -6 | % | ||||||||||
Texas | 135.5 | 169.0 | (33.5 | ) | -20 | % | ||||||||||
Utah | 350.0 | 260.7 | 89.3 | 34 | % | |||||||||||
Virginia | 492.0 | 596.2 | (104.2 | ) | -17 | % | ||||||||||
Company Average | $ | 355.7 | $ | 349.3 | $ | 6.4 | 2 | % |
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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 Ended | ||||||||||||||||
March 31, | Change | |||||||||||||||
2007 | 2006 | Amount | % | |||||||||||||
ORDERS FOR HOMES, NET (UNITS) | ||||||||||||||||
Arizona | 754 | 919 | (165 | ) | -18 | % | ||||||||||
California | 415 | 544 | (129 | ) | -24 | % | ||||||||||
Nevada | 380 | 779 | (399 | ) | -51 | % | ||||||||||
West | 1,549 | 2,242 | (693 | ) | -31 | % | ||||||||||
Colorado | 300 | 451 | (151 | ) | -33 | % | ||||||||||
Utah | 210 | 339 | (129 | ) | -38 | % | ||||||||||
Mountain | 510 | 790 | (280 | ) | -35 | % | ||||||||||
Maryland | 99 | 152 | (53 | ) | -35 | % | ||||||||||
Virginia | 112 | 194 | (82 | ) | -42 | % | ||||||||||
East | 211 | 346 | (135 | ) | -39 | % | ||||||||||
Delaware Valley | 62 | 39 | 23 | 59 | % | |||||||||||
Florida | 179 | 272 | (93 | ) | -34 | % | ||||||||||
Illinois | 41 | 44 | (3 | ) | -7 | % | ||||||||||
Texas | 6 | 67 | (61 | ) | -91 | % | ||||||||||
Other Homebuilding | 288 | 422 | (134 | ) | -32 | % | ||||||||||
Total | 2,558 | 3,800 | (1,242 | ) | -33 | % | ||||||||||
Estimated Value of Orders for Homes, net | $ | 902,000 | $ | 1,360,000 | $ | (458,000 | ) | -34 | % | |||||||
Estimated Average Selling Price of Orders for Homes, net | $ | 352.6 | $ | 357.9 | $ | (5.3 | ) | -1 | % | |||||||
Approximate Order Cancellation Rate (5) | 35 | % | 31 | % | 4 | % | ||||||||||
(5) Gross number of cancellations received divided by gross number of orders received. |
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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
March 31, | December 31, | March 31, | ||||||||||
2007 | 2006 | 2006 | ||||||||||
BACKLOG (UNITS) | ||||||||||||
Arizona | 1,606 | 1,504 | 2,240 | |||||||||
California | 514 | 427 | 845 | |||||||||
Nevada | 382 | 315 | 1,127 | |||||||||
West | 2,502 | 2,246 | 4,212 | |||||||||
Colorado | 389 | 253 | 629 | |||||||||
Utah | 447 | 465 | 504 | |||||||||
Mountain | 836 | 718 | 1,133 | |||||||||
Maryland | 237 | 187 | 329 | |||||||||
Virginia | 180 | 136 | 398 | |||||||||
East | 417 | 323 | 727 | |||||||||
Delaware Valley | 135 | 119 | 189 | |||||||||
Florida | 248 | 197 | 619 | |||||||||
Illinois | 50 | 23 | 88 | |||||||||
Texas | 7 | 12 | 166 | |||||||||
Other Homebuilding | 440 | 351 | 1,062 | |||||||||
Total | 4,195 | 3,638 | 7,134 | |||||||||
Backlog Estimated Sales Value | $ | 1,500,000 | $ | 1,300,000 | $ | 2,700,000 | ||||||
Estimated Average Selling Price of Homes in Backlog | $ | 357.6 | $ | 357.3 | $ | 378.5 | ||||||
ACTIVE SUBDIVISIONS | ||||||||||||
Arizona | 70 | 67 | 58 | |||||||||
California | 47 | 45 | 42 | |||||||||
Nevada | 45 | 41 | 41 | |||||||||
West | 162 | 153 | 141 | |||||||||
Colorado | 49 | 47 | 50 | |||||||||
Utah | 26 | 22 | 21 | |||||||||
Mountain | 75 | 69 | 71 | |||||||||
Maryland | 18 | 19 | 15 | |||||||||
Virginia | 22 | 19 | 25 | |||||||||
East | 40 | 38 | 40 | |||||||||
Delaware Valley | 4 | 8 | 8 | |||||||||
Florida | 28 | 30 | 26 | |||||||||
Illinois | 6 | 6 | 7 | |||||||||
Texas | — | 2 | 18 | |||||||||
Other Homebuilding | 38 | 46 | 59 | |||||||||
Total | 315 | 306 | 311 | |||||||||
Average for Quarter Ended | 311 | 299 | 299 | |||||||||
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M.D.C. HOLDINGS, INC.
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)
March 31, | December 31, | March 31, | ||||||||||
2007 | 2006 | 2006 | ||||||||||
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH | ||||||||||||
Total Debt | $ | 1,097,485 | $ | 1,127,149 | �� | $ | 1,221,931 | |||||
Less Mortgage Line of Credit | (100,703 | ) | (130,467 | ) | (125,540 | ) | ||||||
Total Corporate and Homebuilding Debt | 996,782 | 996,682 | 1,096,391 | |||||||||
Less Cash (Including Restricted Cash) | (633,227 | ) | (510,588 | ) | (173,388 | ) | ||||||
Total Corporate and Homebuilding Debt, Net of Cash | 363,555 | 486,094 | 923,003 | |||||||||
Stockholders’ Equity | 2,079,410 | 2,161,882 | 2,055,208 | |||||||||
Total Corporate and Homebuilding Capital, Net of Cash | $ | 2,442,965 | $ | 2,647,976 | $ | 2,978,211 | ||||||
Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash | 0.15 | 0.18 | 0.31 |
NOTE: From time to time, MDC discloses selected non-GAAP financial measures. While non-GAAP financial measures are not a substitute for the comparable GAAP measures, we believe that certain non-GAAP information is useful to investors and management in comparing current results to historical periods and to competitor results, and that it provides additional information on the performance of MDC’s businesses. The above is a presentation of and reconciliation of selected non-GAAP measures with the most directly comparable GAAP financial measure.
“Ratio of corporate and homebuilding debt to capital, net of cash” is a non-GAAP financial measure. MDC’s management and investors use this ratio to help assess the risk associated with debt in the Company’s capital structure. It excludes debt incurred under MDC’s mortgage line of credit from both the numerator and denominator, as this debt is directly collateralized by mortgage loans held in inventory, which are typical liquidated within 45 days from origination, thereby substantially reducing the risk associated with this type of debt. The ratio’s numerator and denominator are also reduced by MDC’s cash position, as this balance could be used to reduce MDC’s exposure to debt outstanding.
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