EX-99.1 2 d70952exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
(LOGO)
M.D.C. HOLDINGS, INC.
NEWS BULLETIN
     
    (LOGO)
     
M.D.C. HOLDINGS, INC.   RICHMOND AMERICAN HOMES
    HOMEAMERICAN MORTGAGE
FOR IMMEDIATE RELEASE
FRIDAY, FEBRUARY 5, 2010
Contact:   Robert N. Martin
Investor Relations
(720) 977-3431
bob.martin@mdch.com
M.D.C. HOLDINGS ANNOUNCES FOURTH QUARTER 2009 RESULTS
  •   Income per share of $2.68 vs. loss of $1.92 in Q4 2008
 
  •   Net orders increased 82% to 637 homes vs. 350 in Q4 2008
 
  •   Secured control of 2,745 lots in 52 communities
 
  •   Home gross margin increased 590 basis points to 18.8% vs. 12.9% in Q4 2008
 
  •   Closings increased 17% to 1,109 homes vs. 944 in Q4 2008
 
  •   Backlog increased 55% to 826 homes at 12/31/09 vs. 533 at 12/31/08
DENVER, Friday, February 5, 2010 — M.D.C. Holdings, Inc. (NYSE: MDC) today reported net income for the 2009 fourth quarter of $127.2 million, or $2.68 per diluted share, compared with a net loss for the 2008 fourth quarter of $89.0 million, or $1.92 per diluted share. Full year net income for 2009 was $24.7 million, or $0.52 per diluted share, compared with a net loss for 2008 of $380.5 million, or $8.25 per diluted share.
Both fourth quarter and full year 2009 net income reflected the impact of a $142.6 million benefit from income taxes that was recognized due to recently enacted tax legislation that allowed the Company to extend the carryback period of its 2009 net operating losses from two to five years.
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M.D.C. HOLDINGS, INC.
Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Although the homebuilding industry continued to face significant obstacles to recovery in the fourth quarter of 2009, we increased our home orders year-over-year for the third consecutive quarter. As a result, we ended 2009 with 826 homes in backlog, a 55% increase from a year ago.”
Mizel continued, “Throughout 2009, we put considerable effort into activities designed to help us achieve profitability in the future. In the fourth quarter, our offering of more affordable homes that we introduced earlier in the year accounted for more than 30% of our new home orders. Furthermore, we enhanced the mix of the product we have available for sale by decreasing our exposure to finished speculative homes by more than 90% in 2009 and by strategically increasing our supply of homes available for personalization by 35% during the same period.”
“Generally, we now stop construction on unsold units at the drywall stage. Once construction is restarted, these homes typically can close within 45 days, in direct competition with finished homes on the market. By holding the units at drywall, we offer our buyers the opportunity to personalize their homes at one of our Home Galleries. We believe that this policy will continue to benefit us going forward as we attempt to increase our market share in a highly competitive homebuilding environment in 2010.”
Mizel concluded, “During the fourth quarter, we increased our lot supply for the first time in 17 quarters as we secured control of more than 2,700 lots in 52 new communities. After investing a total of $100 million in land acquisitions across our markets during the quarter, we ended the year with $1.56 billion in cash and investments, up 10% from the end of 2008. Shortly after the end of the year, we issued $250 million of 10-year senior notes at a low interest rate, and we expect to receive a $143 million tax refund before the end of the 2010 first quarter. Given these enhancements to our liquidity, we are well-positioned to continue making investments in 2010 as we build our land pipeline to support future home closings.”
Net income for the 2009 fourth quarter included a pre-tax charge of $14.0 million for asset impairments, while the net loss for the 2008 fourth quarter included a pre-tax charge of $59.7 million for asset impairments and an increase in our deferred tax valuation allowance of $19.2 million. For the year ended December 31, 2009, net income included a pre-tax charge of $31.0 million for asset impairments, while net income for the year ended December 31, 2008 included a pre-tax charge of $298.2 million for asset impairments and an increase in our deferred tax valuation allowance of $134.3 million.
Total revenue for the fourth quarter of 2009 was $323.9 million, compared with revenue of $296.2 million for the same period in 2008. For 2009, total revenue was $898.3 million, compared with revenue of $1.46 billion in 2008.
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M.D.C. HOLDINGS, INC.
Homebuilding Highlights
Net orders for the fourth quarter ended December 31, 2009 totaled 637 homes with an estimated sales value of $183.0 million, compared with net orders for 350 homes with an estimated sales value of $100.0 million during the same period in 2008. The improvement was driven by significant increases across all of our homebuilding segments. During the fourth quarter of 2009, the Company’s cancellation rate dropped to 30% compared with 52% during the same period in 2008, primarily due to a decrease in homebuyer mortgage-related issues and a decline in the number of prospective homebuyers with a contingency to sell an existing home. Net orders for the year ended December 31, 2009 totaled 3,306 homes with an estimated sales value of $935.0 million, compared with net orders for 3,074 homes with an estimated sales value of $885.0 million during 2008. We ended 2009 with 826 homes under contract with an estimated sales value of $265.0 million, compared with a backlog of 533 homes with an estimated sales value of $173.0 million at December 31, 2008.
Homebuilding revenue for the 2009 fourth quarter increased to $320.0 million, compared with $291.3 million in the fourth quarter of 2008. The increase in revenue was partly the result of a $14.2 million year-over-year increase in home sales revenue, driven by a 17% increase in home closings and partially offset by an 11% year-over-year decrease in average selling price. In addition, land sales revenue for the 2009 fourth quarter increased by $13.4 million year-over-year due to a significant increase in the number of lots sold as well as an increase in the average price of the lots sold. Homebuilding revenue for the year ended December 31, 2009 was $885.0 million, compared with $1.44 billion for the same period in 2008.
Home gross margin during the fourth quarter of 2009 increased to 18.8% from 12.9% in the fourth quarter of 2008, despite the reduction in average selling price, primarily due to a reduction in construction costs and interest in cost of sales, relative to the average selling price of homes closed. For the full year, home gross margin rose from 12.8% in 2008 to 17.9% in 2009.
Homebuilding SG&A decreased to $40.9 million for the quarter ended December 31, 2009, compared with $43.3 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, including a 23% 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. For the full year, homebuilding SG&A declined to $133.7 million in 2009, compared with $221.1 million in 2008.
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M.D.C. HOLDINGS, INC.
Financial Services and Other Highlights
Income before taxes from the Company’s Financial Services and Other segment for the quarter ended December 31, 2009 was $6.1 million compared with income of $3.6 million for the same period in 2008. The increase was largely the result of a decrease in general and administrative expense for the segment, primarily due to a $3.3 million decrease in the amount booked for insurance reserves. For the full year, income before taxes for the Financial Services and Other segment fell to $6.0 million in 2009 from $11.7 million in 2008.
Corporate Highlights
Loss before taxes from the Company’s corporate segment for the quarter ended December 31, 2009 was $26.3 million, compared with a loss of $22.1 million for the same period in 2008. The higher loss primarily resulted from a $4.8 million decrease in interest income, as lower interest rates offset a higher average cash and investments balance for the quarter. Additionally, corporate interest expense increased by $1.8 million. The changes in interest income and interest expense were partially offset by a $1.7 million decrease in finance costs associated with the reduction of the commitment amount under our homebuilding line of credit. The Corporate segment loss before taxes for the year ended December 31, 2009 was $102.3 million, compared with a loss of $55.1 million for the year ended December 31, 2008.
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 www.mdcholdings.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 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-K for the fiscal year ending December 31, 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.
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M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
                                 
    Three Months     Year Ended  
    December 31,     December 31,  
    2009     2008     2009     2008  
REVENUE
                                
 
                                
Home sales revenue
   $ 297,702     $ 283,519     $ 837,054     $ 1,358,148  
Land sales revenue
     16,744       3,351       30,730       60,050  
Other revenue
     9,433       9,338       30,519       39,910  
 
                        
Total Revenue
     323,879       296,208       898,303       1,458,108  
 
                        
 
                                
COSTS AND EXPENSES
                                
 
                                
Home cost of sales
     241,815       246,918       686,854       1,184,865  
Land cost of sales
     12,764       4,288       25,038       53,847  
Asset impairments
     13,977       59,657       30,986       298,155  
Marketing expenses
     9,978       13,532       36,371       71,882  
Commission expenses
     10,883       9,906       31,002       50,295  
General and administrative expenses
     40,504       46,454       162,485       191,574  
Other operating expenses
     1,492       1,960       5,643       7,115  
Related party expenses
     1,004       5       1,018       18  
 
                        
Total Operating Costs and Expenses
     332,417       382,720       979,397       1,857,751  
 
                        
 
                                
LOSS FROM OPERATIONS
     (8,538 )     (86,512 )     (81,094 )     (399,643 )
 
                        
 
                                
Other income (expense)
                                
Interest income
     2,394       7,450       12,157       35,788  
Interest expense
     (9,244 )     (7,333 )     (38,582 )     (18,318 )
Gain on sale of other assets
     7       —       184       38  
 
                        
 
                                
LOSS BEFORE TAXES
     (15,381 )     (86,395 )     (107,335 )     (382,135 )
 
                                
Benefit from (provision for) income taxes, net
     142,543       (2,633 )     132,014       1,590  
 
                        
 
                                
NET INCOME (LOSS)
   $ 127,162     $ (89,028 )   $ 24,679     $ (380,545 )
 
                        
 
                                
EARNINGS (LOSS) PER SHARE
                                
 
                                
Basic
   $ 2.71     $ (1.92 )   $ 0.52     $ (8.25 )
 
                        
Diluted
   $ 2.68     $ (1.92 )   $ 0.52     $ (8.25 )
 
                        
 
                                
DIVIDENDS DECLARED PER SHARE
   $ 0.25     $ 0.25     $ 1.00     $ 1.00  
 
                        
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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
                 
    December 31,  
    2009     2008  
ASSETS
                
Cash and cash equivalents
   $ 1,234,252     $ 1,304,728  
Marketable Securities
     327,944       54,864  
Unsettled trades
     1,645       57,687  
Restricted cash
     476       670  
Receivables
                
Home sales receivables
     10,056       17,104  
Income taxes receivable
     145,144       170,753  
Other receivables
     5,844       16,697  
Mortgage loans held-for-sale, net
     62,315       68,604  
Inventories, net
                
Housing completed or under construction
     260,324       415,500  
Land and land under development
     262,860       241,571  
Property and equipment, net
     38,421       38,343  
Deferred tax asset, net of valuation allowance
     —       —  
Related party assets
     7,856       8,878  
Prepaid expenses and other assets, net
     72,171       79,539  
 
            
Total Assets
   $ 2,429,308     $ 2,474,938  
 
            
LIABILITIES
                
Accounts payable
   $ 36,087     $ 28,793  
Accrued liabilities
     291,969       332,825  
Related party liabilities
     1,000       —  
Mortgage repurchase facility
     29,115       34,873  
Senior notes, net
     997,991       997,527  
 
            
Total Liabilities
   $ 1,356,162     $ 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; 47,070,000 and 47,017,000 issued and outstanding, respectively, at December 31, 2009 and 46,715,000 and 46,666,000 issued and outstanding, respectively, at December 31, 2008
     471       467  
Additional paid-in-capital
     802,675       788,207  
Retained earnings
     270,659       292,905  
Accumulated other comprehensive loss
     —       —  
Treasury stock, at cost; 53,000 and 49,000 shares at December 31, 2009 and December 31, 2008, respectively
     (659 )     (659 )
 
            
Total Stockholders’ Equity
     1,073,146       1,080,920  
 
            
Total Liabilities and Stockholders’ Equity
   $ 2,429,308     $ 2,474,938  
 
            
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M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)
                                 
    Three Months Ended     Year Ended  
    December 31,     December 31,  
    2009     2008     2009     2008  
REVENUE
                                
Homebuilding
                                
West
   $ 156,638     $ 146,385     $ 407,157     $ 785,451  
Mountain
     83,617       67,989       247,337       298,441  
East
     63,382       52,449       176,386       245,245  
Other Homebuilding
     16,377       24,513       54,086       109,431  
 
                        
Total Homebuilding
     320,014       291,336       884,966       1,438,568  
Financial Services and Other
     9,171       8,340       28,318       33,681  
Corporate
     (40 )     93       10       643  
Inter-company adjustments
     (5,266 )     (3,562 )     (14,991 )     (14,784 )
 
                        
Consolidated
   $ 323,879     $ 296,207     $ 898,303     $ 1,458,108  
 
                        
 
                                
(LOSS) INCOME BEFORE INCOME TAXES
                                
Homebuilding
                                
West
   $ 13,335     $ (14,380 )   $ 19,144     $ (157,103 )
Mountain
     (6,886 )     (31,531 )     (15,686 )     (112,251 )
East
     (1,085 )     (18,073 )     (9,789 )     (50,596 )
Other Homebuilding
     (459 )     (3,875 )     (4,691 )     (18,725 )
 
                        
Total Homebuilding
     4,905       (67,859 )     (11,022 )     (338,675 )
Financial Services and Other
     6,061       3,559       5,953       11,678  
Corporate
     (26,347 )     (22,095 )     (102,266 )     (55,138 )
 
                        
Consolidated
   $ (15,381 )   $ (86,395 )   $ (107,335 )   $ (382,135 )
 
                        
 
                                
INVENTORY IMPAIRMENTS
                                
West
   $ 2,162     $ 16,048     $ 14,955     $ 151,969  
Mountain
     10,114       24,021       10,559       83,270  
East
     —       13,176       2,475       36,843  
Other Homebuilding
     234       3,783       1,147       14,654  
 
                        
Consolidated
   $ 12,510     $ 57,028     $ 29,136     $ 286,736  
 
                        
                 
    December 31,  
    2009     2008  
TOTAL ASSETS
                
Homebuilding
                
West
   $ 190,204     $ 255,652  
Mountain
     237,702       279,343  
East
     112,964       151,367  
Other Homebuilding
     26,778       38,179  
 
            
 
                
Total Homebuilding
     567,648       724,541  
Financial Services and Other
     133,957       139,569  
Corporate
     1,773,660       1,656,785  
Inter-company adjustments
     (45,957 )     (45,957 )
 
            
 
                
Consolidated
   $ 2,429,308     $ 2,474,938  
 
            
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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
                                                                 
    Three Months Ended                     Year Ended              
    December 31,     Change     December 31,     Change  
    2009     2008     Amount     %     2009     2008     Amount     %  
SELECTED FINANCIAL DATA
                                                                
General and Administrative Expenses
                                                                
Homebuilding
   $ 20,020     $ 19,852     $ 168       1 %   $ 66,284     $ 98,911     $ (32,627 )     -33 %
Financial Services and Other
     3,561       5,591       (2,030 )     -36 %     24,207       25,790       (1,583 )     -6 %
Corporate (1)
    17,927       21,016       (3,089 )     -15 %     73,012       66,891       6,121       9 %
 
                                                    
Total
   $ 41,508     $ 46,459     $ (4,951 )     -11 %   $ 163,503     $ 191,592     $ (28,089 )     -15 %
 
                                                    
 
                                                                
SG&A as a % of Home Sales Revenue
                                                                
Homebuilding Segments
     13.7 %     15.3 %     -1.6 %             16.0 %     16.3 %     -0.3 %        
Corporate Segment (1)
    6.0 %     7.4 %     -1.4 %             8.7 %     4.9 %     3.8 %        
 
                                                                
Depreciation and Amortization (2)
   $ 4,329     $ 5,850     $ (1,521 )     -26 %   $ 14,457     $ 32,710     $ (18,253 )     -56 %
 
                                                                
Home Gross Margins (3)
    18.8 %     12.9 %     5.9 %             17.9 %     12.8 %     5.1 %        
Interest in Home Cost of Sales as a % of Home Sales Revenue
     2.3 %     4.1 %     -1.8 %             3.7 %     4.0 %     -0.3 %        
 
                                                                
Cash Provided by (Used in)
                                                                
Operating Activities
   $ (42,052 )   $ 51,162     $ (93,214 )     -182 %   $ 202,454     $ 479,511     $ (277,057 )     -58 %
Investing Activities
   $ (178,054 )   $ 96,876     $ (274,930 )     -284 %   $ (224,992 )   $ (113,439 )   $ (111,553 )     -98 %
Financing Activities
   $ 5,483     $ (4,178 )   $ 9,661       231 %   $ (47,938 )   $ (66,107 )   $ 18,169       27 %
 
                                                                
Corporate and Homebuilding Interest
                                                                
 
                                                                
Interest capitalized, net of interest expense
   $ 5,456     $ 7,186     $ (1,730 )     -24 %   $ 19,810     $ 39,852     $ (20,042 )     -50 %
Previously capitalized interest included in home cost of sales
   $ (6,874 )   $ (11,681 )   $ 4,807       -41 %   $ (30,710 )   $ (54,100 )   $ 23,390       -43 %
Interest capitalized in homebuilding inventory, end of year
   $ 28,339     $ 39,239     $ (10,900 )     -28 %   $ 28,339     $ 39,239     $ (10,900 )     -28 %
 
(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 December 31, 2009 and December 31, 2008, we closed homes on lots for which we had previously recorded $74.9 million and $67.4 million, respectively, of asset impairments. During the twelve months ended December 31, 2009 and December 31, 2008, we closed homes on lots for which we had previously recorded $211.3 million and $249.5 million, respectively, of asset impairments.

9

 

M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
                                                                 
    Three Months Ended                   Year Ended    
    December 31,   Change   December 31,   Change
    2009   2008   Amount   %   2009   2008   Amount   %
HOMEAMERICAN OPERATING ACTIVITIES
                                                                
Principal amount of mortgage loans originated
   $ 226,483     $ 172,745     $ 53,738       31 %   $ 633,171     $ 749,310     $ (116,139 )     -15 %
Principal amount of mortgage loans brokered
   $ 8,021     $ 29,751     $ (21,730 )     -73 %   $ 33,152     $ 170,898     $ (137,746 )     -81 %
Capture Rate
     86 %     71 %     15 %             85 %     66 %     19 %        
Including brokered loans
     88 %     81 %     7 %             89 %     79 %     10 %        
Mortgage products (% of mortgage loans originated)
                                                                
Fixed rate
     99 %     100 %     -1 %             99 %     97 %     2 %        
Adjustable rate — interest only
     0 %     0 %     0 %             0 %     1 %     -1 %        
Adjustable rate — other
     1 %     0 %     1 %             1 %     2 %     -1 %        
 
                                                                
Prime loans (4)
     24 %     40 %     -16 %             29 %     48 %     -19 %        
Government loans (5)
     76 %     60 %     16 %             71 %     52 %     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.
-more-

10

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2009     2008  
HOMES COMPLETED OR UNDER CONSTRUCTION
                
Unsold Home Under Construction — Final
     41       451  
Unsold Home Under Construction — Frame
     389       329  
Unsold Home Under Construction — Foundation
     109       41  
 
            
Total Unsold Homes Under Construction
     539       821  
Sold Homes Under Construction
     570       409  
Model Homes
     212       387  
 
            
Homes Completed or Under Construction
     1,321       1,617  
 
            
 
                
LOTS OWNED (excluding homes completed or under construction)
                
 
Arizona
     1,075       1,458  
California
     581       839  
Nevada
     966       1,111  
 
            
West
     2,622       3,408  
 
            
 
                
Colorado
     2,514       2,597  
Utah
     545       642  
 
            
Mountain
     3,059       3,239  
 
            
 
                
Delaware Valley
     82       115  
Maryland
     100       176  
Virginia
     241       241  
 
            
East
     423       532  
 
            
 
                
Florida
     138       257  
Illinois
     141       141  
 
            
Other Homebuilding
     279       398  
 
            
 
                
Total
     6,383       7,577  
 
            
-more-

11

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2009     2008  
LOTS CONTROLLED UNDER OPTION
                
Arizona
     328       472  
California
     113       149  
Nevada
     222       95  
 
            
West
     663       716  
 
            
 
                
Colorado
     537       184  
Utah
     117       —  
 
            
Mountain
     654       184  
 
            
 
                
Delaware Valley
     —       40  
Maryland
     575       355  
Virginia
     192       592  
 
            
East
     767       987  
 
            
 
                
Florida
     500       471  
Illinois
     —       —  
 
            
Other Homebuilding
     500       471  
 
            
 
                
Total
     2,584       2,358  
 
            
 
                
Total Lots Owned and Controlled
     8,967       9,935  
 
            
 
                
NON-REFUNDABLE OPTION DEPOSITS
                
Cash
   $ 7,654     $ 5,145  
Letters of Credit
     2,134       4,358  
 
            
Total Non-Refundable Option Deposits
   $ 9,788     $ 9,503  
 
            
-more-

12

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
                                                                 
    Three Months Ended                     Year Ended        
    December 31,     Change     December 31,     Change  
    2009     2008     Amount     %     2009     2008     Amount     %  
HOMES CLOSED (UNITS)
                                                                
Arizona
     273       275       (2 )     -1 %     778       1,313       (535 )     -41 %
California
     102       118       (16 )     -14 %     293       590       (297 )     -50 %
Nevada
     227       152       75       49 %     521       791       (270 )     -34 %
 
                                                    
West
     602       545       57       10 %     1,592       2,694       (1,102 )     -41 %
 
                                                    
Colorado
     202       133       69       52 %     565       576       (11 )     -2 %
Utah
     94       54       40       74 %     230       268       (38 )     -14 %
 
                                                    
Mountain
     296       187       109       58 %     795       844       (49 )     -6 %
 
                                                    
Delaware Valley
     18       16       2       13 %     60       91       (31 )     -34 %
Maryland
     50       42       8       19 %     140       192       (52 )     -27 %
Virginia
     70       58       12       21 %     190       257       (67 )     -26 %
 
                                                    
East
     138       116       22       19 %     390       540       (150 )     -28 %
 
                                                    
Florida
     73       82       (9 )     -11 %     214       336       (122 )     -36 %
Illinois
     —       14       (14 )     -100 %     22       74       (52 )     -70 %
 
                                                    
Other Homebuilding
     73       96       (23 )     -24 %     236       410       (174 )     -42 %
 
                                                    
Total
     1,109       944       165       17 %     3,013       4,488       (1,475 )     -33 %
 
                                                    
 
                                                                
AVERAGE SELLING PRICES PER CLOSED HOME
                                                        
 
West
                                                                
Arizona
   $ 193.5     $ 201.1     $ (7.6 )     -4 %   $ 194.3     $ 216.2     $ (21.9 )     -10 %
California
     430.9       455.3       (24.4 )     -5 %     417.5       429.0       (11.5 )     -3 %
Nevada
     194.5       237.5       (43.0 )     -18 %     201.2       244.6       (43.4 )     -18 %
Mountain
                                                                
Colorado
     285.7       363.7       (78.0 )     -21 %     316.5       352.1       (35.6 )     -10 %
Utah
     275.4       319.4       (44.0 )     -14 %     287.1       333.0       (45.9 )     -14 %
East
                                                                
Delaware Valley
     411.6       392.9       18.7       5 %     416.1       406.4       9.7       2 %
Maryland
     460.5       489.9       (29.4 )     -6 %     425.0       466.0       (41.0 )     -9 %
Virginia
     469.3       436.3       33.0       8 %     482.8       454.3       28.5       6 %
Other Homebuilding
                                                                
Florida
     207.8       232.7       (24.9 )     -11 %     214.5       238.5       (24.0 )     -10 %
Illinois
     N/A       348.0       N/A       N/A       313.0       347.9       (34.9 )     -10 %
Company Average
   $ 268.4     $ 300.3     $ (32.0 )     -11 %   $ 277.8     $ 302.6     $ (24.8 )     -8 %
-more-

13

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
                                                                 
    Three Months                     Year Ended        
    Ended December 31,     Change     December 31,     Change  
    2009     2008     Amount     %     2009     2008     Amount     %  
ORDERS FOR HOMES, NET (UNITS)
                                                                
Arizona
     124       87       37       43 %     723       879       (156 )     -18 %
California
     58       42       16       38 %     320       436       (116 )     -27 %
Nevada
     94       50       44       88 %     556       537       19       4 %
 
                                                    
West
     276       179       97       54 %     1,599       1,852       (253 )     -14 %
 
                                                    
Colorado
     163       50       113       226 %     700       435       265       61 %
Utah
     53       27       26       96 %     282       132       150       114 %
 
                                                    
Mountain
     216       77       139       181 %     982       567       415       73 %
 
                                                    
Delaware Valley
     10       5       5       100 %     56       61       (5 )     -8 %
Maryland
     41       12       29       242 %     185       124       61       49 %
Virginia
     49       41       8       20 %     227       193       34       18 %
 
                                                    
East
     100       58       42       72 %     468       378       90       24 %
 
                                                    
Florida
     45       31       14       45 %     238       246       (8 )     -3 %
Illinois
     —       5       (5 )     -100 %     19       31       (12 )     -39 %
 
                                                    
Other Homebuilding
     45       36       9       25 %     257       277       (20 )     -7 %
 
                                                    
Total
     637       350       287       82 %     3,306       3,074       232       8 %
 
                                                    
Estimated Value of Orders for Homes, net
   $ 183,000     $ 100,000       83,000       83 %   $ 935,000     $ 885,000       50,000       6 %
Estimated Average Selling Price of Orders for Homes, net
   $ 287.3     $ 285.7       1.6       1 %   $ 282.8     $ 287.9       (5.1 )     -2 %
Cancellation Rate(6)
     30 %     52 %     -22 %             24 %     45 %     -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.
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14

 

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
                 
    December 31,     December 31,  
    2009     2008  
BACKLOG (UNITS)
                
Arizona
     103       158  
California
     76       49  
Nevada
     88       53  
 
            
West
     267       260  
 
            
Colorado
     207       72  
Utah
     94       42  
 
            
Mountain
     301       114  
 
            
Delaware Valley
     23       27  
Maryland
     103       58  
Virginia
     73       36  
 
            
East
     199       121  
 
            
Florida
     59       35  
Illinois
     —       3  
 
            
Other Homebuilding
     59       38  
 
            
Total
     826       533  
 
            
Backlog Estimated Sales Value
   $ 265,000     $ 173,000  
 
            
Estimated Average Selling Price of Homes in Backlog
   $ 320.8     $ 324.6  
 
            
 
                
ACTIVE SUBDIVISIONS
                
Arizona
     28       44  
California
     3       18  
Nevada
     18       24  
 
            
West
     49       86  
 
            
Colorado
     42       49  
Utah
     16       22  
 
            
Mountain
     58       71  
 
            
Delaware Valley
     1       3  
Maryland
     8       11  
Virginia
     7       12  
 
            
East
     16       26  
 
            
Florida
     10       7  
Illinois
     —       1  
 
            
Other Homebuilding
     10       8  
 
            
Total
     133       191  
 
            
-###-

15