DENVER, July 27,
2023 /PRNewswire/ -- M.D.C Holdings, Inc. (NYSE:
MDC), one of the nation's leading homebuilders, announced results
for the quarter ended June 30,
2023.
"MDC delivered another quarter of strong results in the second
quarter of 2023, generating net income of $93 million, or $1.24 per diluted share, on home sale revenues of
$1.1 billion," said MDC's Executive
Chairman, Larry Mizel. "Net new
orders increased on both a sequential and year-over-year basis in
the quarter, thanks in large part to a sales pace of 3.1 homes per
community per month. We feel that these results reflect both the
health of the new home industry and the strength of our
operations."
"The new home market continues to benefit from a lack of
existing home supply, which has created a real opportunity for
homebuilders to take market share and has helped to stabilize
pricing," said David Mandarich,
MDC's President and Chief Executive Officer. "We believe this
dynamic can continue as long as rates stay at these higher levels,
and existing homeowners opt to stay in their current homes. MDC is
well positioned to take advantage of these conditions thanks to our
focus on affordability and our strong presence in some of the best
housing markets in the country."
"Given this favorable industry outlook, we have become more
active in the land market, approving the purchase of over 1,300
lots in the second quarter," said Mr. Mizel. "These lots will help
us in achieving our growth objectives and improving our size and
scale in our markets. With over $1.8
billion in cash and marketable securities at the end of the
quarter, we have ample liquidity to both expand our homebuilding
operations and continue to fund our industry-leading quarterly
dividend, which we just increased to $0.55 per share based on the strength of our
results."
Mr. Mizel concluded, "For the first time in over two years, MDC
achieved a sequential improvement in the average construction build
time for those homes that closed in the quarter. Supply chain
conditions and material availability have improved considerably
since the pandemic, as we are now projecting a construction build
time of under 180 days on homes that we are starting today. The
improvement in building conditions, coupled with our increased
emphasis on spec inventory, should result in better inventory turns
and improved capital efficiency for our company."
2023 Second Quarter Highlights and Comparisons to 2022 Second
Quarter
•
|
Home sale revenues of
$1.10 billion compared to $1.45 billion
|
|
|
◦
|
Unit deliveries of
2,009 vs. 2,536
|
|
|
◦
|
Average selling price
of deliveries of $549,000 vs. $572,000
|
|
•
|
Homebuilding pretax
income of $92.1 million compared to $240.3 million
|
|
|
◦
|
Gross margin from home
sales of 16.4% vs. 26.8%
|
|
|
◦
|
Inventory impairments
of $13.5 million in the second quarter of 2023
|
|
|
◦
|
Selling, general and
administrative expenses as a percentage of home sale revenues
("SG&A rate") of 9.7% vs. 9.2%
|
|
|
◦
|
Project abandonment
expense of $0.1 million vs $15.5 million
|
|
•
|
Financial services
pretax income of $21.0 million compared to $18.7 million
|
|
•
|
Net income of $93.5
million, or $1.24 per diluted share, compared to $189.5 million, or
$2.59 per diluted share
|
|
|
◦
|
Effective tax rate of
17.3% vs 26.8%
|
|
•
|
Dollar value of net new
orders increased 37% to $1.21 billion from $882.1
million
|
|
|
◦
|
Unit gross orders
increased 21% to 2,717 from 2,237
|
|
|
◦
|
Cancellations as a
percentage of gross orders of 20.2% vs. 37.2%
|
|
|
◦
|
Average selling price
of gross orders decreased 10% to $552,000 from $617,000
|
|
•
|
Cash flow from
operating activities of $225.8 million compared to $53.0
million
|
|
2023 Outlook and Other Selected Information1
•
|
Projected home
deliveries for the 2023 third quarter between 1,850 and
2,000
|
|
|
◦
|
Projected average
selling price for 2023 third quarter unit deliveries of
approximately $555,000
|
|
|
◦
|
Projected gross margin
from home sales for the 2023 third quarter between 18.0% and
19.0% (assuming no impairments or warranty
adjustments)
|
|
•
|
Projected home
deliveries for the 2023 full year of at least 8,000
|
|
•
|
Active subdivision
count at June 30, 2023 of 232, up 12% year-over-year
|
|
•
|
Lots controlled of
22,309 at June 30, 2023, down 33% year-over-year
|
|
•
|
Quarterly cash dividend
of fifty-five cents ($0.55) per share declared on July 24,
2023
|
|
|
◦
|
Consistent record of
stable or increasing dividends for nearly 30 years
|
|
|
|
|
|
1
|
See "Forward-Looking Statements"
below.
|
|
About MDC
M.D.C. Holdings, Inc. was founded in
1972. MDC's homebuilding subsidiaries, which operate under the name
Richmond American Homes, have helped more than 240,000 homebuyers
achieve the American Dream since 1977. One of the largest
homebuilders in the nation, MDC is committed to quality and value
that is reflected in each home its subsidiaries build. The Richmond
American companies have operations in Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New
Mexico, Oregon,
Pennsylvania, Tennessee, Texas, Utah,
Virginia and Washington. Mortgage lending, insurance and
title services are offered by the following MDC subsidiaries,
respectively: HomeAmerican Mortgage Corporation, American Home
Insurance Agency, Inc. and American Home Title and Escrow Company.
M.D.C. Holdings, Inc. stock is traded on the New York Stock
Exchange under the symbol "MDC." For more information, visit
www.mdcholdings.com.
Forward-Looking Statements
Certain statements in this release, including any statements
regarding our business, financial condition, results of operation,
cash flows, strategies and prospects, constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of MDC to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among other things, (1) general
economic conditions, changes in consumer confidence, inflation or
deflation and employment levels; (2) changes in business conditions
experienced by MDC, including cancellation rates, net home orders,
home gross margins, land and home values and subdivision counts;
(3) changes in interest rates, mortgage lending programs and the
availability of credit; (4) changes in the market value of MDC's
investments in marketable securities; (5) uncertainty in the
mortgage lending industry, including repurchase requirements
associated with HomeAmerican Mortgage Corporation's sale of
mortgage loans (6) the relative stability of debt and equity
markets; (7) competition; (8) the availability and cost of land and
other raw materials used by MDC in its homebuilding operations; (9)
the availability and cost of performance bonds and insurance
covering risks associated with our business; (10) shortages and the
cost of labor; (11) weather related slowdowns and natural
disasters; (12) slow growth initiatives; (13) building moratoria;
(14) governmental regulation, including orders addressing the
COVID-19 pandemic, the interpretation of tax, labor and
environmental laws; (15) terrorist acts and other acts of war; (16)
changes in energy prices; and (17) other factors over which MDC has
little or no control. Additional information about the
risks and uncertainties applicable to MDC's business is contained
in MDC's Form 10-Q for the quarter ended June 30, 2023, which
is scheduled to be filed with the Securities and Exchange
Commission today. All forward-looking statements made in
this press release are made as of the date hereof, and the risk
that actual results will differ materially from expectations
expressed in this press release will increase with the passage of
time. MDC undertakes no duty to update publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise. However, any further disclosures made on related
subjects in our subsequent filings, releases or webcasts should be
consulted.
M.D.C. HOLDINGS,
INC. Consolidated Statements of Operations and
Comprehensive Income (Unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands,
except per share amounts)
|
Homebuilding:
|
|
|
|
|
|
|
|
Home sale
revenues
|
$ 1,103,470
|
|
$ 1,450,823
|
|
$ 2,123,486
|
|
$ 2,691,343
|
Home cost of
sales
|
(908,991)
|
|
(1,062,016)
|
|
(1,749,738)
|
|
(1,983,394)
|
Inventory
impairments
|
(13,500)
|
|
—
|
|
(21,300)
|
|
(660)
|
Total cost of
sales
|
(922,491)
|
|
(1,062,016)
|
|
(1,771,038)
|
|
(1,984,054)
|
Gross
profit
|
180,979
|
|
388,807
|
|
352,448
|
|
707,289
|
Selling, general and
administrative expenses
|
(106,733)
|
|
(133,849)
|
|
(201,721)
|
|
(263,163)
|
Interest and other
income
|
17,939
|
|
822
|
|
31,398
|
|
1,577
|
Other
expense
|
(127)
|
|
(15,509)
|
|
932
|
|
(16,933)
|
Homebuilding pretax
income
|
92,058
|
|
240,271
|
|
183,057
|
|
428,770
|
|
|
|
|
|
|
|
|
Financial
Services:
|
|
|
|
|
|
|
|
Revenues
|
32,619
|
|
36,229
|
|
62,105
|
|
65,360
|
Expenses
|
(15,487)
|
|
(18,801)
|
|
(30,737)
|
|
(35,736)
|
Other income,
net
|
3,860
|
|
1,264
|
|
7,594
|
|
2,451
|
Financial services
pretax income
|
20,992
|
|
18,692
|
|
38,962
|
|
32,075
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
113,050
|
|
258,963
|
|
222,019
|
|
460,845
|
Provision for income
taxes
|
(19,557)
|
|
(69,421)
|
|
(47,826)
|
|
(122,882)
|
Net income
|
$
93,493
|
|
$
189,542
|
|
$
174,193
|
|
$
337,963
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss) net of tax:
|
|
|
|
|
|
|
|
Unrealized gain (loss)
related to available-for-sale debt securities
|
(233)
|
|
—
|
|
90
|
|
—
|
Other comprehensive
income (loss)
|
(233)
|
|
—
|
|
90
|
|
—
|
Comprehensive
income
|
$
93,260
|
|
$
189,542
|
|
$
174,283
|
|
$
337,963
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.28
|
|
$
2.66
|
|
$
2.38
|
|
$
4.75
|
Diluted
|
$
1.24
|
|
$
2.59
|
|
$
2.33
|
|
$
4.61
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
72,934,920
|
|
70,841,476
|
|
72,793,951
|
|
70,804,019
|
Diluted
|
74,956,026
|
|
72,881,012
|
|
74,500,489
|
|
72,945,748
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.50
|
|
$
0.50
|
|
$
1.00
|
|
$
1.00
|
M.D.C. HOLDINGS,
INC. Consolidated Balance
Sheets (Unaudited)
|
|
June 30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
(Dollars in thousands,
except
per share
amounts)
|
ASSETS
|
|
|
|
Homebuilding:
|
|
|
|
Cash and cash
equivalents
|
$ 1,011,748
|
|
$
696,075
|
Restricted
cash
|
3,503
|
|
3,143
|
Marketable
securities
|
597,152
|
|
443,712
|
Trade and other
receivables
|
67,497
|
|
116,364
|
Inventories:
|
|
|
|
Housing completed or
under construction
|
1,733,515
|
|
1,722,061
|
Land and land under
development
|
1,411,753
|
|
1,793,718
|
Total
inventories
|
3,145,268
|
|
3,515,779
|
Property and
equipment, net
|
63,014
|
|
63,730
|
Deferred tax asset,
net
|
46,607
|
|
49,252
|
Prepaids and other
assets
|
68,073
|
|
70,007
|
Total homebuilding
assets
|
5,002,862
|
|
4,958,062
|
Financial
Services:
|
|
|
|
Cash and cash
equivalents
|
140,615
|
|
17,877
|
Marketable
securities
|
79,413
|
|
117,388
|
Mortgage loans
held-for-sale, net
|
158,746
|
|
229,513
|
Other
assets
|
31,895
|
|
40,432
|
Total financial
services assets
|
410,669
|
|
405,210
|
Total
Assets
|
$ 5,413,531
|
|
$ 5,363,272
|
LIABILITIES AND
EQUITY
|
|
|
|
Homebuilding:
|
|
|
|
Accounts
payable
|
$
133,190
|
|
$
109,218
|
Accrued and other
liabilities
|
341,773
|
|
383,406
|
Revolving credit
facility
|
10,000
|
|
10,000
|
Senior notes,
net
|
1,482,985
|
|
1,482,576
|
Total homebuilding
liabilities
|
1,967,948
|
|
1,985,200
|
Financial
Services:
|
|
|
|
Accounts payable and
accrued liabilities
|
101,329
|
|
110,536
|
Mortgage repurchase
facility
|
123,151
|
|
175,752
|
Total financial
services liabilities
|
224,480
|
|
286,288
|
Total
Liabilities
|
2,192,428
|
|
2,271,488
|
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; 74,544,221 and 72,585,596
issued and
outstanding at June 30, 2023 and December 31, 2022,
respectively
|
745
|
|
726
|
Additional
paid-in-capital
|
1,812,299
|
|
1,784,173
|
Retained
earnings
|
1,407,969
|
|
1,306,885
|
Accumulated other
comprehensive income
|
90
|
|
—
|
Total Stockholders'
Equity
|
3,221,103
|
|
3,091,784
|
Total Liabilities and
Stockholders' Equity
|
$ 5,413,531
|
|
$ 5,363,272
|
M.D.C. HOLDINGS,
INC. Consolidated Statement of Cash
Flows (Unaudited)
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Operating
Activities:
|
|
|
|
|
|
|
|
Net income
|
$
93,493
|
|
$ 189,542
|
|
$ 174,193
|
|
$ 337,963
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
4,787
|
|
9,911
|
|
10,285
|
|
24,793
|
Depreciation and
amortization
|
5,953
|
|
7,251
|
|
11,453
|
|
13,903
|
Inventory
impairments
|
13,500
|
|
—
|
|
21,300
|
|
660
|
Project abandonment
costs
|
130
|
|
15,515
|
|
(918)
|
|
16,949
|
Amortization of
discount of marketable debt securities
|
(10,384)
|
|
—
|
|
(18,856)
|
|
—
|
Deferred income tax
benefit (expense)
|
(1)
|
|
365
|
|
2,616
|
|
1,207
|
Net changes in assets
and liabilities:
|
|
|
|
|
|
|
|
Trade and other
receivables
|
1,353
|
|
(5,655)
|
|
57,221
|
|
(22,332)
|
Mortgage loans
held-for-sale, net
|
7,506
|
|
(2,156)
|
|
70,767
|
|
92,459
|
Housing completed or
under construction
|
(149,176)
|
|
(191,114)
|
|
(13,595)
|
|
(468,301)
|
Land and land under
development
|
248,259
|
|
2,030
|
|
364,133
|
|
109,351
|
Prepaids and other
assets
|
(2,207)
|
|
14,704
|
|
1,263
|
|
(5,775)
|
Accounts payable and
accrued and other liabilities
|
12,552
|
|
12,612
|
|
(27,933)
|
|
70,183
|
Net cash provided by
operating activities
|
225,765
|
|
53,005
|
|
651,929
|
|
171,060
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
(231,116)
|
|
—
|
|
(665,490)
|
|
—
|
Maturities of
marketable securities
|
374,000
|
|
|
|
569,000
|
|
—
|
Purchases of property
and equipment
|
(5,164)
|
|
(6,814)
|
|
(10,550)
|
|
(13,698)
|
Net cash provided by
(used in) investing activities
|
137,720
|
|
(6,814)
|
|
(107,040)
|
|
(13,698)
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
Payments on mortgage
repurchase facility, net
|
(7,376)
|
|
(2,666)
|
|
(52,601)
|
|
(80,735)
|
Dividend
payments
|
(36,566)
|
|
(35,580)
|
|
(73,109)
|
|
(71,163)
|
Issuance of shares
under stock-based compensation programs, net
|
31,332
|
|
(58)
|
|
19,592
|
|
(12,686)
|
Net cash used in
financing activities
|
(12,610)
|
|
(38,304)
|
|
(106,118)
|
|
(164,584)
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
350,875
|
|
7,887
|
|
438,771
|
|
(7,222)
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
Beginning of
period
|
804,991
|
|
588,350
|
|
717,095
|
|
603,459
|
End of
period
|
$
1,155,866
|
|
$ 596,237
|
|
$
1,155,866
|
|
$ 596,237
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,011,748
|
|
$ 475,254
|
|
$
1,011,748
|
|
$ 475,254
|
Restricted
cash
|
3,503
|
|
5,994
|
|
3,503
|
|
5,994
|
Financial
Services:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
140,615
|
|
114,989
|
|
140,615
|
|
114,989
|
Total cash, cash
equivalents and restricted cash
|
$
1,155,866
|
|
$ 596,237
|
|
$
1,155,866
|
|
$ 596,237
|
New Home
Deliveries
|
|
Three Months Ended June
30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
1,162
|
|
$
616,559
|
|
$
530.6
|
|
1,371
|
|
$
788,279
|
|
$
575.0
|
|
(15) %
|
|
(22) %
|
|
(8) %
|
Mountain
|
539
|
|
346,070
|
|
642.1
|
|
665
|
|
437,001
|
|
657.1
|
|
(19) %
|
|
(21) %
|
|
(2) %
|
East
|
308
|
|
140,841
|
|
457.3
|
|
500
|
|
225,543
|
|
451.1
|
|
(38) %
|
|
(38) %
|
|
1 %
|
Total
|
2,009
|
|
$
1,103,470
|
|
$
549.3
|
|
2,536
|
|
$
1,450,823
|
|
$
572.1
|
|
(21) %
|
|
(24) %
|
|
(4) %
|
|
Six Months Ended June
30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home Sale
Revenues
|
|
Average
Price
|
|
Homes
|
|
Home
Sale
Revenues
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
2,226
|
|
$
1,194,492
|
|
$
536.6
|
|
2,614
|
|
$
1,495,590
|
|
$
572.1
|
|
(15) %
|
|
(20) %
|
|
(6) %
|
Mountain
|
1,026
|
|
647,225
|
|
630.8
|
|
1,213
|
|
772,129
|
|
636.5
|
|
(15) %
|
|
(16) %
|
|
(1) %
|
East
|
608
|
|
281,769
|
|
463.4
|
|
942
|
|
423,624
|
|
449.7
|
|
(35) %
|
|
(33) %
|
|
3 %
|
Total
|
3,860
|
|
$
2,123,486
|
|
$
550.1
|
|
4,769
|
|
$
2,691,343
|
|
$
564.3
|
|
(19) %
|
|
(21) %
|
|
(3) %
|
Net New
Orders
|
|
Three Months Ended June
30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
1
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate 1
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
1,341
|
|
$
761,926
|
|
$
568.2
|
|
3.20
|
|
857
|
|
$
543,584
|
|
$ 634.3
|
|
2.45
|
|
56 %
|
|
40 %
|
|
(10) %
|
|
31 %
|
Mountain
|
474
|
|
286,350
|
|
604.1
|
|
2.85
|
|
277
|
|
196,340
|
|
708.8
|
|
1.79
|
|
71 %
|
|
46 %
|
|
(15) %
|
|
59 %
|
East
|
352
|
|
158,164
|
|
449.3
|
|
3.17
|
|
270
|
|
142,221
|
|
526.7
|
|
2.63
|
|
30 %
|
|
11 %
|
|
(15) %
|
|
21 %
|
Total
|
2,167
|
|
$
1,206,440
|
|
$
556.7
|
|
3.10
|
|
1,404
|
|
$
882,145
|
|
$ 628.3
|
|
2.31
|
|
54 %
|
|
37 %
|
|
(11) %
|
|
34 %
|
|
Six Months Ended June
30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
1
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate 1
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
2,353
|
|
$
1,337,435
|
|
$
568.4
|
|
2.84
|
|
2,561
|
|
$ 1,574,372
|
|
$ 614.7
|
|
3.91
|
|
(8) %
|
|
(15) %
|
|
(8) %
|
|
(27) %
|
Mountain
|
884
|
|
528,139
|
|
597.4
|
|
2.66
|
|
1,197
|
|
799,482
|
|
667.9
|
|
3.76
|
|
(26) %
|
|
(34) %
|
|
(11) %
|
|
(29) %
|
East
|
697
|
|
313,257
|
|
449.4
|
|
3.12
|
|
797
|
|
399,780
|
|
501.6
|
|
3.73
|
|
(13) %
|
|
(22) %
|
|
(10) %
|
|
(17) %
|
Total
|
3,934
|
|
$
2,178,831
|
|
$
553.8
|
|
2.85
|
|
4,555
|
|
$ 2,773,634
|
|
$ 608.9
|
|
3.83
|
|
(14) %
|
|
(21) %
|
|
(9) %
|
|
(26) %
|
1
|
Calculated as total net
new orders (gross orders less cancellations) in period ÷ average
active communities during period ÷ number of months in
period.
|
Active
Subdivisions
|
|
|
|
|
|
|
|
Average Active
Subdivisions
|
|
Average Active
Subdivisions
|
|
Active
Subdivisions
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June 30,
|
|
%
|
|
June 30,
|
|
%
|
|
June 30,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
West
|
142
|
|
122
|
|
16 %
|
|
140
|
|
117
|
|
20 %
|
|
138
|
|
109
|
|
27 %
|
Mountain
|
56
|
|
51
|
|
10 %
|
|
56
|
|
52
|
|
8 %
|
|
55
|
|
53
|
|
4 %
|
East
|
34
|
|
34
|
|
— %
|
|
37
|
|
34
|
|
9 %
|
|
37
|
|
36
|
|
3 %
|
Total
|
232
|
|
207
|
|
12 %
|
|
233
|
|
203
|
|
15 %
|
|
230
|
|
198
|
|
16 %
|
Backlog
|
|
June 30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
West
|
2,018
|
|
$
1,163,697
|
|
$
576.7
|
|
4,163
|
|
$
2,438,184
|
|
$
585.7
|
|
(52) %
|
|
(52) %
|
|
(2) %
|
Mountain
|
573
|
|
385,027
|
|
671.9
|
|
2,158
|
|
1,450,194
|
|
672.0
|
|
(73) %
|
|
(73) %
|
|
— %
|
East
|
457
|
|
214,658
|
|
469.7
|
|
1,105
|
|
549,721
|
|
497.5
|
|
(59) %
|
|
(61) %
|
|
(6) %
|
Total
|
3,048
|
|
$
1,763,382
|
|
$
578.5
|
|
7,426
|
|
$
4,438,099
|
|
$
597.6
|
|
(59) %
|
|
(60) %
|
|
(3) %
|
Homes Completed or
Under Construction (WIP lots)
|
|
June 30,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
Unsold:
|
|
|
|
|
|
Completed
|
184
|
|
46
|
|
300 %
|
Under
construction
|
1,971
|
|
607
|
|
225 %
|
Total unsold started
homes
|
2,155
|
|
653
|
|
230 %
|
Sold homes under
construction or completed
|
2,691
|
|
7,007
|
|
(62) %
|
Model homes under
construction or completed
|
558
|
|
524
|
|
6 %
|
Total homes completed
or under construction
|
5,404
|
|
8,184
|
|
(34) %
|
Lots Owned and
Optioned (including homes completed or under
construction)
|
|
June 30,
2023
|
|
June 30,
2022
|
|
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Total
% Change
|
West
|
10,795
|
|
687
|
|
11,482
|
|
15,027
|
|
1,963
|
|
16,990
|
|
(32) %
|
Mountain
|
4,552
|
|
1,637
|
|
6,189
|
|
6,696
|
|
2,961
|
|
9,657
|
|
(36) %
|
East
|
3,197
|
|
1,441
|
|
4,638
|
|
4,111
|
|
2,372
|
|
6,483
|
|
(28) %
|
Total
|
18,544
|
|
3,765
|
|
22,309
|
|
25,834
|
|
7,296
|
|
33,130
|
|
(33) %
|
Selling, General and
Administrative Expenses
|
|
Three Months Ended June
30,
|
|
Six Months Ended June
30,
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
(Dollars in
thousands)
|
General and
administrative expenses
|
$
52,205
|
|
$
72,894
|
|
$ (20,689)
|
|
$
94,981
|
|
$
144,877
|
|
$ (49,896)
|
General and
administrative expenses as a percentage of
home sale revenues
|
4.7 %
|
|
5.0 %
|
|
-30 bps
|
|
4.5 %
|
|
5.4 %
|
|
-90 bps
|
Marketing
expenses
|
$
22,637
|
|
$
26,035
|
|
$
(3,398)
|
|
$
45,733
|
|
$
51,667
|
|
$
(5,934)
|
Marketing expenses
as a percentage of home sale
revenues
|
2.1 %
|
|
1.8 %
|
|
30 bps
|
|
2.2 %
|
|
1.9 %
|
|
30 bps
|
Commissions
expenses
|
$
31,891
|
|
$
34,920
|
|
$
(3,029)
|
|
$
61,007
|
|
$
66,619
|
|
$
(5,612)
|
Commissions
expenses as a percentage of home sale
revenues
|
2.9 %
|
|
2.4 %
|
|
50 bps
|
|
2.9 %
|
|
2.5 %
|
|
40 bps
|
Total selling, general
and administrative expenses
|
$
106,733
|
|
$
133,849
|
|
$ (27,116)
|
|
$
201,721
|
|
$
263,163
|
|
$ (61,442)
|
Total selling,
general and administrative expenses as a
percentage ofhome sale revenues
|
9.7 %
|
|
9.2 %
|
|
50 bps
|
|
9.5 %
|
|
9.8 %
|
|
-30 bps
|
Capitalized
Interest
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
Homebuilding interest
incurred
|
$
17,450
|
|
$
17,382
|
|
$
34,904
|
|
$
34,640
|
Less: Interest
capitalized
|
(17,450)
|
|
(17,382)
|
|
(34,904)
|
|
(34,640)
|
Homebuilding interest
expensed
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
Interest capitalized,
beginning of period
|
$
61,310
|
|
$
60,468
|
|
$
59,921
|
|
$
58,054
|
Plus: Interest
capitalized during period
|
17,450
|
|
17,382
|
|
34,904
|
|
34,640
|
Less: Previously
capitalized interest included in home cost of sales
|
(16,807)
|
|
(15,681)
|
|
(32,872)
|
|
(30,525)
|
Interest capitalized,
end of period
|
$
61,953
|
|
$
62,169
|
|
$
61,953
|
|
$
62,169
|
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SOURCE M.D.C. Holdings, Inc.