- Diluted loss per share narrowed to $0.69 vs. $2.55 in Q3 2008 -
Total revenue of $203.2 million vs. $362.7 million in Q3 2008 -
Quarter-end cash and investments of $1.60 billion - Net orders for
1,016 homes vs. 667 in Q3 2008 - 1,298 units in backlog with an
estimated sales value of $383.0 million DENVER, Oct. 30
/PRNewswire-FirstCall/ -- M.D.C. Holdings, Inc. (NYSE: MDC) today
reported results for its third quarter ended September 30, 2009.
The Company announced a net loss for the quarter of $32.0 million,
or $0.69 per diluted share, which included a pre-tax charge of $1.2
million for asset impairments. The 2009 third quarter net loss also
included an $11.8 million increase in our deferred tax valuation
allowance. The net loss for the 2008 third quarter was $118.0
million, or $2.55 per diluted share, which included a pre-tax
charge of $95.4 million for asset impairments and an increase in
our deferred tax valuation allowance of $61.1 million. Total
revenue for the third quarter of 2009 was $203.2 million, compared
with revenue of $362.7 million for the same period in 2008. Larry
A. Mizel, MDC's chairman and chief executive officer, stated,
"During the third quarter, an increasing national unemployment rate
overshadowed an improvement in overall homebuilding industry
conditions. Our outlook remains cautious because of the employment
situation and the overall uncertain state of the economy. However,
we are encouraged by a year-over-year increase in our own net home
orders for the second consecutive quarter." Mizel continued, "We
achieved the improvement in home orders in part due to our efforts
to adapt our homes to the changing needs of our customers. During
the third quarter, we continued to expand our offering of the
smaller, more affordable homes that we introduced earlier this
year. In addition, in an effort to improve affordability for our
homebuyers, we initiated a new sales program during the quarter,
which focused on providing low mortgage interest rates, and we
positioned inventory to allow buyers the opportunity to close on a
home prior to the impending expiration of the federal homebuyer tax
credit." "We strategically increased the number of unsold homes
available for personalization in our inventory by more than 40%
during the quarter, while we decreased our finished homes by more
than 75%. This should help to improve our profitability, as the
margins we realize on unsold homes available for personalization
significantly exceed those on finished inventory. Generally, we
stop construction on unsold units at the drywall stage. Once
construction is restarted, these homes can close within 45 days, in
direct competition with finished homes on the market. However, by
holding the units at drywall, we offer our buyers the opportunity
to personalize the home at one of our Home Galleries." Mizel
concluded, "After several years of relatively limited land
acquisition activity, during the third quarter, we secured control
of almost 1,300 lots through direct acquisitions or option
contracts. With more than $1.6 billion in cash and investments
available at the end of the quarter, we are well-positioned to
continue making opportunistic investments as we build our land
pipeline to support future home closings." Homebuilding Highlights
Net orders for the third quarter ended September 30, 2009 totaled
1,016 homes with an estimated sales value of $271.9 million,
compared with net orders for 667 homes with an estimated sales
value of $182.1 million during the same period in 2008. The
improvement was driven by significant increases across all of the
homebuilding segments. During the third quarter of 2009, the
Company's cancellation rate dropped to 23% compared with 46% during
the same period in 2008, primarily due to a decrease in
mortgage-related issues and a decline in the number of prospective
homebuyers with a contingency to sell an existing home.
Homebuilding revenue for the 2009 third quarter fell to $200.0
million, compared with $358.1 million in the third quarter of 2008.
The decline in revenue was primarily the result of a year-over-year
decline in home closings and average selling price of 41% and 6%,
respectively. All of our markets experienced year-over-year
decreases in closings with the exception of Colorado, which
experienced a 3% increase. Nearly all of our markets experienced
year-over-year decreases in average selling price. However,
Virginia and Delaware Valley experienced a year-over-year increase
in average selling price due to a change in the size and style of
homes that closed during the third quarter of 2009 compared to the
same period in 2008. Home gross margins during the third quarter of
2009 increased to 18.9% from 15.3% in the third quarter of 2008,
primarily due to a $10.8 million reduction in the warranty reserve,
compared with only a $3.2 million reduction in the third quarter of
2008. The third quarter 2009 warranty reserve reduction resulted
from a decrease in warranty payments actually incurred and reaching
a settlement on certain construction defect claims in Nevada. In
addition, margins improved as a result of a decrease in the lot
cost per home closed, primarily a result of prior impairments.
Homebuilding SG&A decreased to $31.0 million for the quarter
ended September 30, 2009, compared with $57.7 million for the same
period in the prior year. The decrease in SG&A resulted from
various cost saving initiatives associated with right-sizing our
operations in response to the reduced level of home closings,
including a 35% reduction in homebuilding headcount over the past
year. Also contributing to this decrease was a reduction in
marketing expenses, primarily due to a significant reduction in
sales office and model home expenses, as well as a decline in
commission expenses resulting from fewer home closings and lower
average selling prices. During the third quarter of 2009, we
recognized $1.2 million of asset impairments, a decrease of 99%
from the $95.4 million recognized in the 2008 third quarter.
Overall, the year-over-year decrease in asset impairments can be
attributed to the impact of recording significant impairments over
the last twelve quarters, thereby reducing our exposure to further
impairments. Financial Services and Other Highlights Loss before
taxes from the Company's Financial Services and Other segment for
the quarter ended September 30, 2009 was $4.3 million compared with
income of $3.4 million for the same period in 2008. The decrease
primarily resulted from a $5.2 million increase in general and
administrative expense for the segment, due to a $7.3 million
increase in our reserves for mortgage loan losses, compared with an
increase in the reserve of only $0.8 million in the third quarter
of 2008. In addition, we experienced a $1.5 million decrease in
gains on sales of mortgage loans and broker origination fees, as we
originated and sold fewer mortgage loans in connection with closing
fewer homes during the quarter. Corporate Highlights Loss before
taxes from the Company's Corporate segment for the quarter ended
September 30, 2009 was $27.4 million, compared with a loss of $21.3
million for the same period in 2008. The higher loss primarily
resulted from a $5.7 million decrease in interest income, as lower
interest rates offset a higher average cash balance for the
quarter. Additionally, Corporate general and administrative expense
increased by $2.7 million, primarily due to a $2.6 million increase
in finance costs associated with the reduction of the commitment
amount under our homebuilding line of credit. Nine Month Results
Net loss for the nine months ended September 30, 2009 was $102.5
million, or $2.20 per diluted share, which included pre-tax charges
of $17.0 million for asset impairments. The net loss for the nine
months ended September 30, 2009 also included a $44.8 million
increase in our deferred tax valuation allowance, of which $9.7
million related to a 2006 alternative minimum tax liability
associated with our 2008 net operating loss carry back. The net
loss for the first nine months of 2008 was $291.5 million, or $6.32
per diluted share, which included a pre-tax charge of $238.5
million for asset impairments and an increase of $115.1 million to
our deferred tax asset valuation allowance. About MDC Since 1972,
MDC's subsidiary companies have built and financed the American
dream for more than 160,000 families. 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 divisions across
the country, including Denver, Colorado Springs, Salt Lake City,
Las Vegas, Phoenix, Tucson, California, Northern Virginia,
Maryland, Philadelphia/Delaware Valley and Jacksonville. The
Company's subsidiaries also provide mortgage financing, insurance
and title services, primarily for Richmond American homebuyers,
through HomeAmerican Mortgage Corporation, American Home Insurance
Agency, Inc. and American Home Title and Escrow Company,
respectively. M.D.C. Holdings, Inc. is traded on the New York Stock
Exchange under the symbol "MDC." For more information, visit
http://www.mdcholdings.com/. 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 conditions, including changes in consumer confidence,
inflation or deflation and employment levels; (2) changes in
business conditions experienced by the Company, including
cancellation rates, net home orders, home gross margins, and land
and home values; (3) changes in interest rates, mortgage lending
programs and the availability of credit; (4) the relative stability
of debt and equity markets; (5) competition; (6) the availability
and cost of land and other raw materials used by the Company in its
homebuilding operations; (7) the availability and cost of
performance bonds and insurance covering risks associated with our
business; (8) shortages and the cost of labor; (9) weather related
slowdowns; (10) slow growth initiatives; (11) building moratoria;
(12) governmental regulation, including the interpretation of tax,
labor and environmental laws; (13) changes in consumer confidence
and preferences; (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 Form 10-Q
for the quarter September 30, 2009, 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. The Company 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 presentations should be consulted. M.D.C.
HOLDINGS, INC. Consolidated Statements of Operations (In thousands,
except per share amounts) (Unaudited) Three Months Nine Months
Ended September 30, Ended September 30, -------------------
------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue
Home sales revenue $186,816 $336,744 $539,352 $1,074,629 Land sales
revenue 9,414 15,850 13,986 56,699 Other revenue 6,996 10,107
21,086 30,573 ----- ------ ------ ------ Total Revenue 203,226
362,701 574,424 1,161,901 ------- ------- ------- --------- Costs
and Expenses Home cost of sales 151,596 285,367 445,039 937,947
Land cost of sales 9,433 14,775 12,274 49,559 Asset impairments,
net 1,197 95,388 17,009 238,498 Marketing expenses 9,631 18,797
26,393 58,350 Commission expenses 6,808 12,297 20,119 40,389
General and administrative expenses 45,800 50,010 121,981 145,120
Other operating expenses 3,594 1,586 4,151 5,156 Related party
expenses 5 3 14 13 -- -- -- -- Total Operating Costs and Expenses
228,064 478,223 646,980 1,475,032 ------- ------- ------- ---------
Loss from Operations (24,838) (115,522) (72,556) (313,131) -------
-------- ------- -------- Other income (expense) Interest income
2,724 9,315 9,763 28,338 Interest expense (9,760) (10,775) (29,338)
(10,985) Other income 56 8 177 38 -- -- --- -- Loss Before Taxes
(31,818) (116,974) (91,954) (295,740) ------- -------- -------
-------- (Provision for) benefit from income taxes, net (230) (997)
(10,529) 4,223 ---- ---- ------- ----- NET LOSS $(32,048)
$(117,971) $(102,483) $(291,517) ======== ========= =========
========= LOSS PER SHARE Basic $(0.69) $(2.55) $(2.20) $(6.32)
====== ====== ====== ====== Diluted $(0.69) $(2.55) $(2.20) $(6.32)
====== ====== ====== ====== WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic 46,597 46,219 46,515 46,094 ====== ====== ====== ======
Diluted 46,597 46,219 46,515 46,094 ====== ====== ====== ======
DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $0.75 $0.75 ===== =====
===== ===== M.D.C. HOLDINGS, INC. Consolidated Balance Sheets
(Dollars in thousands, except per share amounts) (Unaudited)
September 30, December 31, 2009 2008 ---- ---- Assets Cash and cash
equivalents $1,448,875 $1,304,728 Marketable securities 151,260
54,864 Unsettled trades, net 2,133 57,687 Restricted cash 933 670
Receivables Home sales receivables 14,283 17,104 Income taxes
receivable 3,119 170,753 Other receivables 9,981 16,697 Mortgage
loans held-for- sale, net 42,704 68,604 Inventories, net Housing
completed or under construction 325,257 415,500 Land and land under
development 177,888 221,822 Property and equipment, net 37,721
38,343 Deferred tax asset, net of valuation allowance - - Related
party assets 28,839 28,627 Prepaid expenses and other assets, net
77,524 79,539 ------ ------ Total Assets $2,320,517 $2,474,938
========== ========== Liabilities Accounts payable $45,910 $28,793
Accrued liabilities 309,457 332,825 Mortgage repurchase facility
13,010 34,873 Senior notes, net 997,872 997,527 ------- -------
Total Liabilities 1,366,249 1,394,018 --------- ---------
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; 47,025,000 and 46,972,000 issued and
outstanding, respectively, at September 30, 2009 and 46,715,000 and
46,666,000 issued and outstanding, respectively, at December 31,
2008 470 467 Additional paid-in-capital 799,215 788,207 Retained
earnings 155,242 292,905 Treasury stock, at cost; 53,000 and 49,000
shares at September 30, 2009 and December 31, 2008, respectively
(659) (659) ---- ---- Total Stockholders' Equity 954,268 1,080,920
------- --------- Total Liabilities and Stockholders' Equity
$2,320,517 $2,474,938 ========== ========== M.D.C. HOLDINGS, INC.
Information on Segments (Dollars in thousands) (Unaudited) Three
Months Nine Months Ended September 30, Ended September 30,
------------------- ------------------- 2009 2008 2009 2008 ----
---- ---- ---- REVENUE Homebuilding West $94,079 $194,750 $250,519
$639,066 Mountain 61,945 72,565 163,720 230,452 East 33,033 61,950
113,004 192,796 Other Homebuilding 10,909 28,829 37,709 84,918
------ ------ ------ ------ Total Homebuilding 199,966 358,094
564,952 1,147,232 Financial Services and Other 6,578 8,497 19,147
25,341 Corporate - 173 50 550 Inter-company adjustments (3,318)
(4,063) (9,725) (11,222) ------ ------ ------ ------- Consolidated
$203,226 $362,701 $574,424 $1,161,901 ======== ======== ========
========== (LOSS) INCOME BEFORE INCOME TAXES Homebuilding West
$6,037 $(47,741) $5,809 $(142,723) Mountain (1,681) (30,085)
(8,800) (80,720) East (1,707) (17,444) (8,704) (32,523) Other
Homebuilding (2,724) (3,798) (4,232) (14,850) ------ ------ ------
------- Total Homebuilding (75) (99,068) (15,927) (270,816)
Financial Services and Other (4,344) 3,414 (108) 8,119 Corporate
(27,399) (21,320) (75,919) (33,043) ------- ------- ------- -------
Consolidated $(31,818) $(116,974) $(91,954) $(295,740) ========
========= ======== ========= INVENTORY IMPAIRMENTS West $283
$49,258 $12,793 $135,921 Mountain 191 25,195 445 59,249 East -
13,126 2,475 23,667 Other Homebuilding 629 3,241 913 10,871 ---
----- --- ------ Consolidated $1,103 $90,820 $16,626 $229,708
====== ======= ======= ======== September 30, December 31, 2009
2008 ---- ---- TOTAL ASSETS Homebuilding West $204,146 $255,652
Mountain 245,639 288,221 East 115,466 151,367 Other Homebuilding
24,569 38,179 ------ ------ Total Homebuilding 589,820 733,419
Financial Services and Other 116,629 139,569 Corporate 1,660,025
1,647,907 Inter-company adjustments (45,957) (45,957) -------
------- Consolidated $2,320,517 $2,474,938 ========== ==========
M.D.C. HOLDINGS, INC. Selected Financial Data (Dollars in
thousands) (Unaudited) Three Months Ended September 30, Change
------------------- ---------------- 2009 2008 Amount % ---- ----
---------- ---- SELECTED FINANCIAL DATA General and Administrative
Expenses Homebuilding $14,579 $26,654 $(12,075) -45% Financial
Services and Other 11,303 6,131 $5,172 84% Corporate (1) 19,923
17,228 $2,695 16% ------ ------ ------ Total $45,805 $50,013
$(4,208) -8% ======= ======= ======= SG&A as a % of Home Sales
Revenue Homebuilding Segments 16.6% 17.1% -0.5% Corporate Segment
(1) 10.7% 5.1% 5.6% Depreciation and Amortization (2) $3,404 $8,902
$(5,498) -62% Home Gross Margins (3) 18.9% 15.3% 3.6% Interest in
Home Cost of Sales as a % of Home Sales Revenue -3.8% -2.9% -0.9%
Cash Provided by (Used in) Operating Activities $(7,312) $106,046
$(113,358) -107% Investing Activities $(80,881) $(210,199) $129,318
-62% Financing Activities $(22,757) $(31,796) $9,039 -28% Corporate
and Homebuilding Interest Interest capitalized, beginning of period
$32,089 $49,674 $(17,585) -35% Interest capitalized, net of
interest expense $4,810 $3,749 $1,061 28% Previously capitalized
interest included in home cost of sales $(7,142) $(9,689) $2,547
-26% Interest capitalized, end of period $29,757 $43,734 $(13,977)
-32% Nine Months Ended September 30, Change -------------------
---------------- 2009 2008 Amount % ------ ----- ---------- -----
SELECTED FINANCIAL DATA General and Administrative Expenses
Homebuilding $46,264 $79,059 $(32,795) -41% Financial Services and
Other 20,646 20,199 $447 2% Corporate (1) 55,085 45,875 $9,210 20%
------ ------ ------ Total $121,995 $145,133 $(23,138) -16%
======== ======== ======== SG&A as a % of Home Sales Revenue
Homebuilding Segments 17.2% 16.5% 0.7% Corporate Segment (1) 10.2%
4.3% 5.9% Depreciation and Amortization (2) $10,128 $26,860
$(16,732) -62% Home Gross Margins (3) 17.5% 12.7% 4.8% Interest in
Home Cost of Sales as a % of Home Sales Revenue -4.4% -3.9% -0.5%
Cash Provided by (Used in) Operating Activities $244,506 $428,349
$(183,843) -43% Investing Activities $(46,938) $(210,315) $163,377
-78% Financing Activities $(53,421) $(61,929) $8,508 -14% Corporate
and Homebuilding Interest Interest capitalized, beginning of period
$39,239 $53,487 $(14,248) -27% Interest capitalized, net of
interest expense $14,354 $32,666 $(18,312) -56% Previously
capitalized interest included in home cost of sales $(23,836)
$(42,419) $18,583 -44% Interest capitalized, end of period $29,757
$43,734 $(13,977) -32% (1) Includes related party expenses. (2)
Includes depreciation and amortization of long-lived assets and
amortization of deferred marketing costs. (3) Home sales revenue
less home cost of sales (excluding commissions, amortization of
deferred marketing, project cost write offs and asset impairments)
as a percent of home sales revenue. During the three months ended
September 30, 2009 and September 30, 2008, we closed homes on lots
for which we had previously recorded $45.8 million and $68.5
million, respectively, of asset impairments. During the nine months
ended September 30, 2009 and September 30, 2008, we closed homes on
lots for which we had previously recorded $136.4 million and $182.1
million, respectively, of asset impairments. M.D.C. HOLDINGS, INC.
Selected Financial Data (Dollars in thousands) (Unaudited) Three
Months Ended September 30, Change -------------------
------------------ 2009 2008 Amount % ---- ---- ---------- -----
HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage
loans originated $137,990 $198,780 $(60,790) -31% Principal amount
of mortgage loans brokered $6,136 $34,977 $(28,841) -82% Capture
Rate 84% 71% 13% Including brokered loans 87% 82% 5% Mortgage
products (% of mortgage loans originated) Fixed rate 100% 97% 3%
Adjustable rate - interest only 0% 0% 0% Adjustable rate - other 0%
3% -3% Prime loans (4) 28% 46% -18% Government loans (5) 72% 54%
18% Nine Months Ended September 30, Change -------------------
------------------ 2009 2008 Amount % ---- ---- ---------- -----
HOMEAMERICAN OPERATING ACTIVITIES Principal amount of mortgage
loans originated $406,688 $576,565 $(169,877) -29% Principal amount
of mortgage loans brokered $25,131 $141,147 $(116,016) -82% Capture
Rate 84% 65% 19% Including brokered loans 89% 78% 11% Mortgage
products (% of mortgage loans originated) Fixed rate 100% 97% 3%
Adjustable rate - interest only 0% 1% -1% Adjustable rate - other
0% 2% -2% Prime loans (4) 32% 51% -19% Government loans (5) 68% 49%
19% (4) Prime loans generally are defined as loans with Fair, Isaac
and Company ("FICO") scores greater than 620 and that comply with
the documentation standards of the government sponsored enterprise
guidelines. (5) Government loans are loans either insured by the
Federal Housing Administration or guaranteed by the Department of
Veteran Affairs. M.D.C. HOLDINGS, INC. Homebuilding Operational
Data (Dollars in thousands) (unaudited) September 30, December 31,
September 30, 2009 2008 2008 ---- ---- ---- HOMES COMPLETED OR
UNDER CONSTRUCTION Unsold Home Under Construction - Final 19 451
364 Unsold Home Under Construction - Frame 298 329 495 Unsold Home
Under Construction - Foundation 226 41 123 --- -- --- Total Unsold
Homes Under Construction 543 821 982 Sold Homes Under Construction
1,073 409 852 Model Homes 215 387 428 --- --- --- Homes Completed
or Under Construction 1,831 1,617 2,262 ===== ===== ===== LOTS
OWNED (excluding homes completed or under construction) Arizona
1,303 1,458 1,612 California 721 839 873 Nevada 706 1,111 934 ---
----- --- West 2,730 3,408 3,419 ----- ----- ----- Colorado 2,345
2,597 2,638 Utah 469 642 731 --- --- --- Mountain 2,814 3,239 3,369
----- ----- ----- Delaware Valley 91 115 117 Maryland 131 176 192
Virginia 161 241 256 --- --- --- East 383 532 565 --- --- ---
Florida 196 257 254 Illinois 141 141 155 --- --- --- Other
Homebuilding 337 398 409 --- --- --- Total 6,264 7,577 7,762 =====
===== ===== M.D.C. HOLDINGS, INC. Homebuilding Operational Data
(Dollars in thousands) (unaudited) September 30, December 31,
September 30, 2009 2008 2008 ---- ---- ---- LOTS CONTROLLED UNDER
OPTION Arizona 413 472 431 California 46 149 149 Nevada 87 95 101
-- -- --- West 546 716 681 --- --- --- Colorado 532 184 183 Utah
143 - - --- --- --- Mountain 675 184 183 --- --- --- Delaware
Valley - 40 82 Maryland 528 355 349 Virginia 278 592 1,050 --- ---
----- East 806 987 1,481 --- --- ----- Florida 299 471 407 Illinois
- - - --- --- --- Other Homebuilding 299 471 407 --- --- --- Total
2,326 2,358 2,752 ===== ===== ===== NON-REFUNDABLE OPTION DEPOSITS
Cash $5,430 $5,145 $5,004 Letters of Credit 2,702 4,358 $4,913
----- ----- ------ Total Non-Refundable Option Deposits $8,132
$9,503 $9,917 ====== ====== ====== M.D.C. HOLDINGS, INC.
Homebuilding Operational Data (Dollars in thousands) (Unaudited)
Three Nine Months Months Ended Ended September 30, Change September
30, Change ----------- ------------ ------------- ------------ 2009
2008 Amount % 2009 2008 Amount % ---- ---- ------- ---- ---- ----
------- ---- HOMES CLOSED (UNITS) Arizona 152 307 (155) -50% 505
1,038 (533) -51% California 80 155 (75) -48% 191 472 (281) -60%
Nevada 106 210 (104) -50% 294 639 (345) -54% --- --- ---- --- ---
---- West 338 672 (334) -50% 990 2,149 (1,159) -54% --- --- ----
--- ----- ------ Colorado 159 155 4 3% 363 443 (80) -18% Utah 40 54
(14) -26% 136 214 (78) -36% -- -- --- --- --- --- Mountain 199 209
(10) -5% 499 657 (158) -24% --- --- --- --- --- ---- Delaware
Valley 12 24 (12) -50% 42 75 (33) -44% Maryland 25 55 (30) -55% 90
150 (60) -40% Virginia 34 60 (26) -43% 120 199 (79) -40% -- -- ---
--- --- --- East 71 139 (68) -49% 252 424 (172) -41% -- --- --- ---
--- ---- Florida 48 70 (22) -31% 141 254 (113) -44% Illinois 3 26
(23) -88% 22 60 (38) -63% -- -- --- -- -- --- Other Homebuilding 51
96 (45) -47% 163 314 (151) -48% -- -- --- --- --- ---- Total 659
1,116 (457) -41% 1,904 3,544 (1,640) -46% === ===== ==== =====
===== ====== AVERAGE SELLING PRICES PER HOME CLOSED Arizona $193.6
$206.2 $(12.6) -6% $194.8 $220.2 $(25.4) -12% California 417.0
435.5 (18.5) -4% 410.3 422.4 (12.1) -3% Colorado 317.3 346.4 (29.1)
-8% 333.7 348.6 (14.9) -4% Delaware Valley 429.5 395.5 34.0 9%
418.0 409.3 8.7 2% Florida 208.2 240.1 (31.9) -13% 217.9 240.4
(22.5) -9% Illinois 294.0 351.7 (57.7) -16% 313.0 347.8 (34.8) -10%
Maryland 405.7 442.0 (36.3) -8% 405.4 459.3 (53.9) -12% Nevada
204.6 243.3 (38.7) -16% 206.4 246.2 (39.8) -16% Utah 283.1 331.4
(48.3) -15% 295.2 336.4 (41.2) -12% Virginia 521.1 458.5 62.6 14%
490.6 459.5 31.1 7% Company Average $283.5 $301.7 $(18.2) -6%
$283.3 $303.2 $(19.9) -7% M.D.C. HOLDINGS, INC. Homebuilding
Operational Data (Dollars in thousands) (Unaudited) Three Months
Ended September 30, Change ------------------- --------------------
2009 2008 Amount % ---- ---- ---------- ------ ORDERS FOR HOMES,
NET (UNITS) Arizona 227 216 11 5% California 75 87 (12) -14% Nevada
214 111 103 93% --- --- --- West 516 414 102 25% --- --- ---
Colorado 197 105 92 88% Utah 102 17 85 500% --- -- -- Mountain 299
122 177 145% --- --- --- Delaware Valley 13 20 (7) -35% Maryland 53
25 28 112% Virginia 61 40 21 53% -- -- -- East 127 85 42 49% --- --
-- Florida 71 33 38 115% Illinois 3 13 (10) -77% -- -- --- Other
Homebuilding 74 46 28 61% -- -- -- Total 1,016 667 349 52% =====
=== === Estimated Value of Orders for Homes, net $272,000 $182,000
$90,000 49% Estimated Average Selling Price of Orders for Homes,
net $267.7 $272.9 $(5.2) -2% Cancellation Rate(6) 23% 46% -23% Nine
Months Ended September 30, Change --------------------
------------------- 2009 2008 Amount % ---- ---- ---------- -----
ORDERS FOR HOMES, NET (UNITS) Arizona 599 792 (193) -24% California
262 394 (132) -34% Nevada 462 487 (25) -5% --- --- --- West 1,323
1,673 (350) -21% ----- ----- ---- Colorado 537 385 152 39% Utah 229
105 124 118% --- --- --- Mountain 766 490 276 56% --- --- ---
Delaware Valley 46 56 (10) -18% Maryland 144 112 32 29% Virginia
178 152 26 17% --- --- -- East 368 320 48 15% --- --- -- Florida
193 215 (22) -10% Illinois 19 26 (7) -27% -- -- -- Other
Homebuilding 212 241 (29) -12% --- --- --- Total 2,669 2,724 (55)
-2% ===== ===== === Estimated Value of Orders for Homes, net
$752,000 $785,000 $(33,000) -4% Estimated Average Selling Price of
Orders for Homes, net $281.8 $288.2 $(6.4) -2% Cancellation Rate(6)
22% 43% -21% (6) We define "Cancellation Rate" as the approximate
number of cancelled home order contracts during a reporting period
as a percent of total home orders received during such reporting
period. M.D.C. HOLDINGS, INC. Homebuilding Operational Data
(Dollars in thousands) (Unaudited) September 30, December 31,
September 30, 2009 2008 2008 ---- ---- ---- BACKLOG (UNITS) Arizona
252 158 346 California 120 49 125 Nevada 221 53 155 --- -- --- West
593 260 626 --- --- --- Colorado 246 72 155 Utah 135 42 69 --- --
-- Mountain 381 114 224 --- --- --- Delaware Valley 31 27 38
Maryland 112 58 88 Virginia 94 36 53 -- -- -- East 237 121 179 ---
--- --- Florida 87 35 86 Illinois - 3 12 -- -- -- Other
Homebuilding 87 38 98 -- -- -- Total 1,298 533 1,127 ===== ===
===== Backlog Estimated Sales Value $383,000 $173,000 $364,000
======== ======== ======== Estimated Average Selling Price of Homes
in Backlog $295.1 $324.6 $323.0 ====== ====== ====== ACTIVE
SUBDIVISIONS Arizona 30 44 52 California 5 18 17 Nevada 20 24 25 --
-- -- West 55 86 94 -- -- -- Colorado 41 49 49 Utah 17 22 24 -- --
-- Mountain 58 71 73 -- -- -- Delaware Valley 1 3 2 Maryland 8 11
12 Virginia 7 12 16 -- -- -- East 16 26 30 -- -- -- Florida 8 7 12
Illinois - 1 2 -- -- -- Other Homebuilding 8 8 14 -- -- -- Total
137 191 211 === === === Average for quarter ended 140 202 219 ===
=== === DATASOURCE: M.D.C. Holdings, Inc. CONTACT: Robert N.
Martin, Investor Relations of M.D.C. Holdings, Inc.,
+1-720-977-3431, Web Site: http://www.mdcholdings.com/
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