DENVER, Oct. 26,
2023 /PRNewswire/ -- Thursday,
October 26, 2023. M.D.C Holdings, Inc. (NYSE: MDC), one
of the nation's leading homebuilders, announced results for the
quarter ended September 30, 2023.
"MDC delivered another quarter of strong profitability,
generating net income of $107.3
million, or $1.40 per diluted
share for the third quarter of 2023," said MDC's Executive
Chairman, Larry Mizel. "Home sale
revenues were $1.09 billion on new
home deliveries of 1,968 at an average sales price of $552,000. Gross margin from home sales improved
280 basis points from the second quarter of 2023 to 19.2%, while
SG&A as a percent of home sale revenues improved on both a
sequential and year-over-year basis to 9.3%. These results further
demonstrate our ability to deliver solid profitability in a high
interest rate environment."
"Net new orders improved considerably from the prior year
period, thanks to a significant reduction in cancellations and our
use of financing incentives that lessened the impact of higher
mortgage rates for our buyers," said David Mandarich MDC's
President and Chief Executive Officer. "Our sales pace for the
quarter was 2.4 homes per community per month and was fairly
consistent across our homebuilding footprint. We continue to see
motivated buyers in our markets, provided we can meet their
affordability needs."
"Despite the challenges that higher interest rates present, I
remain confident in our company's outlook," said Mr. Mizel. "The US
economy has shown great resilience in terms of GDP growth and job
creation, while home prices nationally have held firm. The new home
market continues to benefit from a lack of existing home supply,
and large public builders like MDC are poised to gain market share.
We plan on taking advantage of this opportunity in the coming
quarters and therefore have increased our land acquisition
efforts."
Mr. Mizel concluded, "Our average build time for homes that
closed in the quarter improved significantly as compared to the
second quarter. This improvement, coupled with our increased focus
on spec home production, has led to better inventory turns and cash
generation. Our cash and marketable securities balance at the end
of the quarter stood at $1.78
billion, giving us ample liquidity to reinvest in our
operations and pay our industry-leading dividend of $2.20 on an annualized basis. The progress we
made this quarter has us well positioned to end 2023 on a strong
note and carry the momentum into the new year."
2023 Third Quarter Highlights and Comparisons to 2022 Third
Quarter
- Home sale revenues of $1.09
billion compared to $1.41
billion
- Unit deliveries of 1,968 vs. 2,387
- Average selling price of deliveries of $552,000 vs. $590,000
- Homebuilding pretax income of $127.4
million compared to $168.2
million
- Gross margin from home sales of 19.2% vs. 22.7%
- Inventory impairments of $6.2
million vs $28.4 million
- Selling, general and administrative expenses as a percentage of
home sale revenues ("SG&A rate") of 9.3% vs. 10.0%
- Project abandonment expense of $11.8
million in the third quarter of 2022
- Financial services pretax income of $12.4 million compared to $17.6 million
- Net income of $107.3 million, or
$1.40 per diluted share, compared to
$144.4 million, or $1.98 per diluted share
- Effective tax rate of 23.2% vs 22.3%
- Dollar value of net new orders increased 532% to $965.5 million from $152.8
million
- Unit gross orders increased 42% to 2,227 from 1,569
- Cancellations as a percentage of gross orders of 23.9% vs.
80.9%
- Average selling price of gross orders decreased 4% to
$560,000 from $583,000
2023 Outlook and Other Selected Information1
- Projected home deliveries for the 2023 fourth quarter between
2,200 and 2,400
- Projected average selling price for 2023 fourth quarter unit
deliveries of between $545,000 and
$555,000
- Projected gross margin from home sales for the 2023 fourth
quarter between 18.0% and 19.5% (assuming no impairments or
warranty adjustments)
- Active subdivision count at September
30, 2023 of 235, up 7% year-over-year
- Lots controlled of 22,353 at September
30, 2023, down 24% year-over-year
- Quarterly cash dividend of fifty-five
cents ($0.55) per share
declared on October 23, 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 September 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands,
except per share amounts)
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Home sale
revenues
|
$ 1,087,050
|
|
$ 1,407,642
|
|
$ 3,210,536
|
|
$ 4,098,985
|
|
Home cost of
sales
|
(872,624)
|
|
(1,059,996)
|
|
(2,622,362)
|
|
(3,043,390)
|
|
Inventory
impairments
|
(6,200)
|
|
(28,415)
|
|
(27,500)
|
|
(29,075)
|
|
Total cost of
sales
|
(878,824)
|
|
(1,088,411)
|
|
(2,649,862)
|
|
(3,072,465)
|
|
Gross
profit
|
208,226
|
|
319,231
|
|
560,674
|
|
1,026,520
|
|
Selling, general and
administrative expenses
|
(101,311)
|
|
(141,435)
|
|
(303,032)
|
|
(404,598)
|
|
Interest and other
income
|
20,414
|
|
2,220
|
|
51,812
|
|
3,797
|
|
Other income
(expense)
|
55
|
|
(11,800)
|
|
987
|
|
(28,733)
|
|
Homebuilding pretax
income
|
127,384
|
|
168,216
|
|
310,441
|
|
596,986
|
|
|
|
|
|
|
|
|
|
Financial
Services:
|
|
|
|
|
|
|
|
|
Revenues
|
23,769
|
|
34,101
|
|
85,874
|
|
99,461
|
|
Expenses
|
(15,494)
|
|
(18,704)
|
|
(46,231)
|
|
(54,440)
|
|
Other income,
net
|
4,148
|
|
2,176
|
|
11,742
|
|
4,627
|
|
Financial services
pretax income
|
12,423
|
|
17,573
|
|
51,385
|
|
49,648
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
139,807
|
|
185,789
|
|
361,826
|
|
646,634
|
|
Provision for income
taxes
|
(32,502)
|
|
(41,389)
|
|
(80,328)
|
|
(164,271)
|
|
Net income
|
$
107,305
|
|
$
144,400
|
|
$
281,498
|
|
$
482,363
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income net of tax:
|
|
|
|
|
|
|
|
|
Unrealized gain
related to available-for-sale debt securities
|
1
|
|
—
|
|
91
|
|
—
|
|
Other comprehensive
income
|
1
|
|
—
|
|
91
|
|
—
|
|
Comprehensive
income
|
$
107,306
|
|
$
144,400
|
|
$
281,589
|
|
$
482,363
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
$
1.44
|
|
$
2.03
|
|
$
3.82
|
|
$
6.78
|
|
Diluted
|
$
1.40
|
|
$
1.98
|
|
$
3.73
|
|
$
6.59
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
74,198,016
|
|
70,880,405
|
|
73,265,878
|
|
70,829,761
|
|
Diluted
|
76,253,178
|
|
72,729,453
|
|
75,106,356
|
|
72,892,635
|
|
|
|
|
|
|
|
|
|
Dividends declared per
share
|
$
0.55
|
|
$
0.50
|
|
$
1.55
|
|
$
1.50
|
|
M.D.C. HOLDINGS,
INC.
|
|
Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
|
|
|
|
(Dollars in thousands,
except
per share
amounts)
|
|
ASSETS
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Cash and cash
equivalents
|
$ 1,207,532
|
|
$
696,075
|
|
Restricted
cash
|
4,300
|
|
3,143
|
|
Marketable
securities
|
346,351
|
|
443,712
|
|
Trade and other
receivables
|
81,305
|
|
116,364
|
|
Inventories:
|
|
|
|
|
Housing completed or
under construction
|
1,921,134
|
|
1,722,061
|
|
Land and land under
development
|
1,315,196
|
|
1,793,718
|
|
Total
inventories
|
3,236,330
|
|
3,515,779
|
|
Property and
equipment, net
|
62,403
|
|
63,730
|
|
Deferred tax asset,
net
|
46,615
|
|
49,252
|
|
Prepaids and other
assets
|
70,791
|
|
70,007
|
|
Total homebuilding
assets
|
5,055,627
|
|
4,958,062
|
|
Financial
Services:
|
|
|
|
|
Cash and cash
equivalents
|
150,457
|
|
17,877
|
|
Marketable
securities
|
79,166
|
|
117,388
|
|
Mortgage loans
held-for-sale, net
|
164,254
|
|
229,513
|
|
Other
assets
|
38,499
|
|
40,432
|
|
Total financial
services assets
|
432,376
|
|
405,210
|
|
Total
Assets
|
$ 5,488,003
|
|
$ 5,363,272
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Homebuilding:
|
|
|
|
|
Accounts
payable
|
$
135,265
|
|
$
109,218
|
|
Accrued and other
liabilities
|
312,882
|
|
383,406
|
|
Revolving credit
facility
|
10,000
|
|
10,000
|
|
Senior notes,
net
|
1,483,193
|
|
1,482,576
|
|
Total homebuilding
liabilities
|
1,941,340
|
|
1,985,200
|
|
Financial
Services:
|
|
|
|
|
Accounts payable and
accrued liabilities
|
108,650
|
|
110,536
|
|
Mortgage repurchase
facility
|
145,470
|
|
175,752
|
|
Total financial
services liabilities
|
254,120
|
|
286,288
|
|
Total
Liabilities
|
2,195,460
|
|
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; 74,662,468 and 72,585,596
issued and
outstanding at September 30, 2023 and December 31, 2022,
respectively
|
747
|
|
726
|
|
Additional
paid-in-capital
|
1,817,494
|
|
1,784,173
|
|
Retained
earnings
|
1,474,211
|
|
1,306,885
|
|
Accumulated other
comprehensive income
|
91
|
|
—
|
|
Total Stockholders'
Equity
|
3,292,543
|
|
3,091,784
|
|
Total Liabilities and
Stockholders' Equity
|
$ 5,488,003
|
|
$ 5,363,272
|
|
M.D.C. HOLDINGS,
INC.
|
|
Consolidated
Statement of Cash Flows
|
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
Net income
|
$ 107,305
|
|
$ 144,400
|
|
$ 281,498
|
|
$ 482,363
|
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
4,073
|
|
25,555
|
|
14,358
|
|
50,348
|
|
Depreciation and
amortization
|
6,417
|
|
6,760
|
|
17,870
|
|
20,663
|
|
Inventory
impairments
|
6,200
|
|
28,415
|
|
27,500
|
|
29,075
|
|
Project abandonment
costs
|
(45)
|
|
11,809
|
|
(963)
|
|
28,758
|
|
Amortization of
discount of marketable debt securities
|
(6,008)
|
|
(1,082)
|
|
(24,864)
|
|
(1,082)
|
|
Deferred income tax
benefit (expense)
|
(8)
|
|
(5,387)
|
|
2,608
|
|
(4,180)
|
|
Net changes in assets
and liabilities:
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
(12,242)
|
|
3,011
|
|
44,979
|
|
(19,321)
|
|
Mortgage loans
held-for-sale, net
|
(5,508)
|
|
(763)
|
|
65,259
|
|
91,696
|
|
Housing completed or
under construction
|
(189,317)
|
|
149,218
|
|
(202,912)
|
|
(319,083)
|
|
Land and land under
development
|
92,308
|
|
(117,282)
|
|
456,441
|
|
(19,740)
|
|
Prepaids and other
assets
|
(4,360)
|
|
(2,275)
|
|
(3,097)
|
|
(8,050)
|
|
Accounts payable and
accrued and other liabilities
|
(27,595)
|
|
(69,486)
|
|
(55,528)
|
|
12,506
|
|
Net cash provided by
(used in) operating activities
|
(28,780)
|
|
172,893
|
|
623,149
|
|
343,953
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
Purchases of
marketable securities
|
(422,943)
|
|
(291,126)
|
|
(1,088,433)
|
|
(291,126)
|
|
Maturities of
marketable securities
|
680,000
|
|
—
|
|
1,249,000
|
|
—
|
|
Purchases of property
and equipment
|
(4,330)
|
|
(7,731)
|
|
(14,880)
|
|
(21,429)
|
|
Net cash provided by
(used in) investing activities
|
252,727
|
|
(298,857)
|
|
145,687
|
|
(312,555)
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
Payments on mortgage
repurchase facility, net
|
22,319
|
|
20,649
|
|
(30,282)
|
|
(60,086)
|
|
Dividend
payments
|
(41,063)
|
|
(35,622)
|
|
(114,172)
|
|
(106,785)
|
|
Issuance of shares
under stock-based compensation programs, net
|
1,220
|
|
1,141
|
|
20,812
|
|
(11,545)
|
|
Net cash used in
financing activities
|
(17,524)
|
|
(13,832)
|
|
(123,642)
|
|
(178,416)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
206,423
|
|
(139,796)
|
|
645,194
|
|
(147,018)
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
|
Beginning of
period
|
1,155,866
|
|
596,237
|
|
717,095
|
|
603,459
|
|
End of
period
|
$
1,362,289
|
|
$ 456,441
|
|
$
1,362,289
|
|
$ 456,441
|
|
|
|
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash:
|
|
|
|
|
|
|
|
|
Homebuilding:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,207,532
|
|
$ 417,298
|
|
$
1,207,532
|
|
$ 417,298
|
|
Restricted
cash
|
4,300
|
|
4,657
|
|
4,300
|
|
4,657
|
|
Financial
Services:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
150,457
|
|
34,486
|
|
150,457
|
|
34,486
|
|
Total cash, cash
equivalents and restricted cash
|
$
1,362,289
|
|
$ 456,441
|
|
$
1,362,289
|
|
$ 456,441
|
|
New Home
Deliveries
|
|
|
Three Months Ended
September 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
|
1,198
|
|
$
651,472
|
|
$
543.8
|
|
1,312
|
|
$
772,356
|
|
$
588.7
|
|
(9) %
|
|
(16) %
|
|
(8) %
|
|
Mountain
|
441
|
|
284,142
|
|
644.3
|
|
647
|
|
424,397
|
|
655.9
|
|
(32) %
|
|
(33) %
|
|
(2) %
|
|
East
|
329
|
|
151,436
|
|
460.3
|
|
428
|
|
210,889
|
|
492.7
|
|
(23) %
|
|
(28) %
|
|
(7) %
|
|
Total
|
1,968
|
|
$
1,087,050
|
|
$
552.4
|
|
2,387
|
|
$
1,407,642
|
|
$
589.7
|
|
(18) %
|
|
(23) %
|
|
(6) %
|
|
Nine Months Ended
September 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
|
3,424
|
|
$
1,845,964
|
|
$
539.1
|
|
3,926
|
|
$
2,267,946
|
|
$
577.7
|
|
(13) %
|
|
(19) %
|
|
(7) %
|
|
Mountain
|
1,467
|
|
931,367
|
|
634.9
|
|
1,860
|
|
1,196,526
|
|
643.3
|
|
(21) %
|
|
(22) %
|
|
(1) %
|
|
East
|
937
|
|
433,205
|
|
462.3
|
|
1,370
|
|
634,513
|
|
463.1
|
|
(32) %
|
|
(32) %
|
|
— %
|
|
Total
|
5,828
|
|
$
3,210,536
|
|
$
550.9
|
|
7,156
|
|
$
4,098,985
|
|
$
572.8
|
|
(19) %
|
|
(22) %
|
|
(4) %
|
|
Net New
Orders
|
|
|
Three Months Ended
September 30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
1
|
|
Monthly
Absorption
Rate
2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price 1
|
|
Monthly
Absorption
Rate 2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
1,022
|
|
$
590,558
|
|
$
577.8
|
|
2.38
|
|
193
|
|
$ 93,481
|
|
$ 484.4
|
|
0.51
|
|
430 %
|
|
532 %
|
|
19 %
|
|
371 %
|
|
Mountain
|
401
|
|
250,285
|
|
624.2
|
|
2.39
|
|
(3)
|
|
2,838
|
|
N/A
|
|
(0.02)
|
|
N/A
|
|
N/A
|
|
N/A
|
|
N/A
|
|
East
|
272
|
|
124,655
|
|
458.3
|
|
2.45
|
|
109
|
|
56,514
|
|
518.5
|
|
1.01
|
|
150 %
|
|
121 %
|
|
(12) %
|
|
143 %
|
|
Total
|
1,695
|
|
$
965,498
|
|
$
569.6
|
|
2.39
|
|
299
|
|
$
152,833
|
|
$ 511.1
|
|
0.46
|
|
467 %
|
|
532 %
|
|
11 %
|
|
416 %
|
|
1
|
Gross order average
selling price for the three months ended September 30, 2023
decreased approximately 4% year-over-year to $560,000.
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate 2
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Monthly
Absorption
Rate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
3,375
|
|
$
1,939,875
|
|
$
574.8
|
|
2.68
|
|
2,754
|
|
$ 1,677,039
|
|
$ 608.9
|
|
2.66
|
|
23 %
|
|
16 %
|
|
(6) %
|
|
1 %
|
|
Mountain
|
1,285
|
|
781,530
|
|
608.2
|
|
2.55
|
|
1,194
|
|
811,860
|
|
679.9
|
|
2.52
|
|
8 %
|
|
(4) %
|
|
(11) %
|
|
1 %
|
|
East
|
969
|
|
439,187
|
|
453.2
|
|
2.91
|
|
906
|
|
457,919
|
|
505.4
|
|
2.80
|
|
7 %
|
|
(4) %
|
|
(10) %
|
|
4 %
|
|
Total
|
5,629
|
|
$
3,160,592
|
|
$
561.5
|
|
2.68
|
|
4,854
|
|
$ 2,946,818
|
|
$ 607.1
|
|
2.64
|
|
16 %
|
|
7 %
|
|
(8) %
|
|
2 %
|
|
2
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
%
|
|
September
30,
|
|
%
|
|
September
30,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
West
|
141
|
|
132
|
|
7 %
|
|
143
|
|
127
|
|
13 %
|
|
140
|
|
115
|
|
22 %
|
|
Mountain
|
55
|
|
51
|
|
8 %
|
|
56
|
|
52
|
|
8 %
|
|
56
|
|
53
|
|
6 %
|
|
East
|
39
|
|
37
|
|
5 %
|
|
37
|
|
36
|
|
3 %
|
|
37
|
|
36
|
|
3 %
|
|
Total
|
235
|
|
220
|
|
7 %
|
|
236
|
|
215
|
|
10 %
|
|
233
|
|
204
|
|
14 %
|
|
Backlog
|
|
|
September
30,
|
|
2023
|
|
2022
|
|
% Change
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
Homes
|
|
Dollar
Value
|
|
Average
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
West
|
1,842
|
|
$
1,113,867
|
|
$
604.7
|
|
3,044
|
|
$
1,762,858
|
|
$
579.1
|
|
(39) %
|
|
(37) %
|
|
4 %
|
|
Mountain
|
533
|
|
355,759
|
|
667.5
|
|
1,508
|
|
1,038,037
|
|
688.4
|
|
(65) %
|
|
(66) %
|
|
(3) %
|
|
East
|
400
|
|
188,972
|
|
472.4
|
|
786
|
|
396,406
|
|
504.3
|
|
(49) %
|
|
(52) %
|
|
(6) %
|
|
Total
|
2,775
|
|
$
1,658,598
|
|
$
597.7
|
|
5,338
|
|
$
3,197,301
|
|
$
599.0
|
|
(48) %
|
|
(48) %
|
|
— %
|
|
Homes Completed or
Under Construction (WIP lots)
|
|
|
September
30,
|
|
%
|
|
2023
|
|
2022
|
|
Change
|
|
Unsold:
|
|
|
|
|
|
|
Completed
|
236
|
|
187
|
|
26 %
|
|
Under
construction
|
2,445
|
|
895
|
|
173 %
|
|
Total unsold started
homes
|
2,681
|
|
1,082
|
|
148 %
|
|
Sold homes under
construction or completed
|
2,585
|
|
5,094
|
|
(49) %
|
|
Model homes under
construction or completed
|
552
|
|
532
|
|
4 %
|
|
Total homes completed
or under construction
|
5,818
|
|
6,708
|
|
(13) %
|
|
Lots Owned and
Optioned (including homes completed or under
construction)
|
|
|
September 30,
2023
|
|
September 30,
2022
|
|
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Lots
Owned
|
|
Lots
Optioned
|
|
Total
|
|
Total
% Change
|
|
West
|
10,128
|
|
1,092
|
|
11,220
|
|
13,893
|
|
914
|
|
14,807
|
|
(24) %
|
|
Mountain
|
4,420
|
|
1,793
|
|
6,213
|
|
6,151
|
|
2,458
|
|
8,609
|
|
(28) %
|
|
East
|
3,218
|
|
1,702
|
|
4,920
|
|
3,848
|
|
1,992
|
|
5,840
|
|
(16) %
|
|
Total
|
17,766
|
|
4,587
|
|
22,353
|
|
23,892
|
|
5,364
|
|
29,256
|
|
(24) %
|
|
Selling, General and
Administrative Expenses
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
|
(Dollars in
thousands)
|
|
General and
administrative expenses
|
$
46,232
|
|
$
80,858
|
|
$ (34,626)
|
|
$
141,213
|
|
$
225,735
|
|
$ (84,522)
|
|
General and
administrative expenses as a percentage of
home sale revenues
|
4.3 %
|
|
5.7 %
|
|
-140 bps
|
|
4.4 %
|
|
5.5 %
|
|
-110 bps
|
|
Marketing
expenses
|
$
24,875
|
|
$
26,355
|
|
$
(1,480)
|
|
$
70,608
|
|
$
78,022
|
|
$
(7,414)
|
|
Marketing expenses
as a percentage of home sale
revenues
|
2.3 %
|
|
1.9 %
|
|
40 bps
|
|
2.2 %
|
|
1.9 %
|
|
30 bps
|
|
Commissions
expenses
|
$
30,204
|
|
$
34,222
|
|
$
(4,018)
|
|
$
91,211
|
|
$
100,841
|
|
$
(9,630)
|
|
Commissions
expenses as a percentage of home sale
revenues
|
2.8 %
|
|
2.4 %
|
|
40 bps
|
|
2.8 %
|
|
2.5 %
|
|
30 bps
|
|
Total selling, general
and administrative expenses
|
$
101,311
|
|
$
141,435
|
|
$ (40,124)
|
|
$
303,032
|
|
$
404,598
|
|
$
(101,566)
|
|
Total selling,
general and administrative expenses as a
percentage of home sale revenues
|
9.3 %
|
|
10.0 %
|
|
-70 bps
|
|
9.4 %
|
|
9.9 %
|
|
-50 bps
|
|
Capitalized
Interest
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands)
|
|
Homebuilding interest
incurred
|
$
17,482
|
|
$
17,391
|
|
$
52,386
|
|
$
52,031
|
|
Less: Interest
capitalized
|
(17,482)
|
|
(17,391)
|
|
(52,386)
|
|
(52,031)
|
|
Homebuilding interest
expensed
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
Interest capitalized,
beginning of period
|
$
61,953
|
|
$
62,169
|
|
$
59,921
|
|
$
58,054
|
|
Plus: Interest
capitalized during period
|
17,482
|
|
17,391
|
|
52,386
|
|
52,031
|
|
Less: Previously
capitalized interest included in home cost of sales
|
(14,007)
|
|
(15,977)
|
|
(46,879)
|
|
(46,502)
|
|
Interest capitalized,
end of period
|
$
65,428
|
|
$
63,583
|
|
$
65,428
|
|
$
63,583
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/mdc-holdings-announces-third-quarter-2023-results-301968044.html
SOURCE M.D.C. Holdings, Inc.
