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DENVER, Feb 10, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended December 31, 2008 of $89.0 million, or $1.92 per diluted share, which included pre-tax charges of $59.7 million for asset impairments and a $19.2 million increase in our deferred tax asset valuation allowance. The net loss for the 2007 fourth quarter was $281.1 million, or $6.14 per diluted share, including pre-tax charges of $175.2 million for asset impairments, $7.8 million for write-offs of deposits and pre-acquisition costs and a deferred tax valuation allowance of $160.0 million.
Net loss for the year ended December 31, 2008 was $380.5 million, or $8.24 per diluted share, which included pre-tax charges of $298.2 million for asset impairments and a $134.3 million increase in our deferred tax asset valuation allowance. The net loss for the 2007 full year was $636.9 million, or $13.94 per diluted share, which included pre-tax charges of $726.6 million for asset impairments, write-offs of deposits and pre-acquisition costs of $23.4 million and a deferred tax valuation allowance of $160.0 million.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "During 2008, we faced extraordinary conditions in the homebuilding industry and the overall economy. Increasing unemployment levels, deteriorating consumer confidence, rising foreclosures and faltering conditions in the mortgage and banking industries all contributed to continued deterioration in the housing market."
Mizel continued, "Even though the downturn in housing negatively impacted our operating results for 2008, we have strengthened our balance sheet during the year and bolstered our position as a one of the strongest companies in our industry. Through our efforts to reduce our inventory balances and adjust our organizational structure, we generated $480 million in operating cash flow during the year, including more than $50 million in the fourth quarter. On the strength of that operating cash flow, our cash and investments balance rose by more than 40% to $1.4 billion at year end and now exceeds our total debt balance by nearly $400 million. Furthermore, we expect to receive a tax refund of $165 million during the first quarter of 2009."
Mizel concluded, "We look forward to 2009 as a time of continued focus on our Company-wide initiatives to streamline our processes and systems and improve the home buying experience for our customers. In addition, we will continue to explore opportunities to redeploy our capital, with an open mind to different ways in which we might take advantage of current market conditions. We believe successes that are achieved in these areas can ultimately have a positive impact on our bottom line."
Homebuilding Results
Homebuilding loss before taxes for the quarter and full year ended December 31, 2008 improved to $67.9 million and $338.7 million, respectively, compared with losses of $195.9 million and $764.2 million for the same periods in 2007. The losses in 2008 were lower in large part due to declines in asset impairments combined with decreased marketing, commissions and general and administrative expenses ("S,G&A") and were partially offset by the impact of closing fewer homes and lower average selling prices compared with the same periods in 2007. Also, in the 2008 fourth quarter we experienced a lower amount of losses from land sales compared with the fourth quarter of 2007, and in the 2008 full year we recognized a gain on land sales compared with a loss in the prior year.
Homebuilding revenue for the 2008 fourth quarter fell to $291.3 million, compared with $762.7 million in the 2007 fourth quarter, primarily due to a 57% year-over-year decline in home closings combined with an 8% decrease in the average selling price of homes closed. All of our markets experienced year-over-year decreases in home closings in the fourth quarter, while only Colorado experienced an increase in average selling price. The slight increase in our Colorado market primarily was related to changes in the size and style of the homes that were closed and was not due to market appreciation. Homebuilding revenue for the 2008 full year fell to $1.44 billion, compared with $2.85 billion for the 2007 full year, primarily due to a 45% decrease in home closings and a 10% decrease in the average selling price of homes closed.
During the fourth quarter of 2008, we recognized $59.7 million of asset impairments, which included $57.0 million of inventory impairment charges that impacted 2,177 lots in 132 subdivisions. This fourth quarter inventory impairment charge is down 67% from the 2007 fourth quarter, primarily resulting from reduced impairments in our Phoenix, Nevada and California markets. Over the last nine quarters we have taken significant impairments in these markets, thereby significantly reducing our inventory balance and reducing our exposure to further impairments. Partially offsetting the decline in impairments in these markets were higher impairments in Colorado and Utah during the three months ended December 31, 2008. Asset impairments for the 2008 full year were $298.2 million, compared with $726.6 million in 2007.
Homebuilding S,G&A decreased to $44.9 million and $227.8 million, respectively, for the quarter and full year ended December 31, 2008, compared with $95.4 million and $425.5 million for the same periods in the prior year, as we continued to adjust our organizational structure and business practices in response to the decreased levels of closings. This decrease in S,G&A for both periods resulted from various cost saving initiatives associated with right-sizing our operations, including consolidating our homebuilding divisions and reducing our employee headcount, which allowed us to consolidate office space in many of our markets. Also contributing to this decrease from the prior year were lower commission expenses resulting from closing fewer homes and lower marketing expenses due to reduced advertising costs, a lower active subdivision count and significantly fewer model homes in operation.
The Company recorded 350 net home orders with an estimated sales value of $99.0 million during the 2008 fourth quarter, compared with net orders for 748 homes with an estimated sales value of $187.0 million during the same period in 2007. The drop in net orders was partially due to a 30% year-over-year decline in average active subdivisions, as we continued to limit our investment in new subdivisions, combined with a decrease in the average number of orders received per subdivision. Each market experienced a year-over-year decrease in net orders during the 2008 fourth quarter, with the exception of Maryland and Virginia. For the year ended December 31, 2008, the Company received net orders for 3,074 homes with a sales value of $885.0 million, compared with 6,504 homes with a sales value of $2.11 billion for the 2007 full year.
During the fourth quarter of 2008, the Company's cancellation rate was 52% compared with 65% during the same period in 2007. The cancellation rate for the year ended December 31, 2008 was 45% compared with 48% in 2007. All of our markets experienced a year-over-year decline in backlog, and we ended 2008 with 533 homes under contract with an estimated sales value of $173.0 million, compared with a backlog of 1,947 homes with an estimated sales value of $650.0 million at December 31, 2007.
Financial Services and Other
Income before taxes from the Company's Financial Services and Other segment for the quarter ended December 31, 2008 was $3.6 million compared with $6.3 million for the same period in 2007. The decrease in the 2008 fourth quarter primarily resulted from a combined decrease in gains on sales of mortgage loans and broker origination fees. This decline partially was offset by reductions in general and administrative expenses for our mortgage operations. Income before taxes from the Company's Financial Services and Other segment for the 2008 full year was $11.7 million compared with $23.1 million in 2007.
Balance Sheet and Cash Flow Highlights
For the quarter and year ended December 31, 2008, the Company generated $51.2 million and $479.5 million, respectively, of operating cash flow and ended the year with $1.42 billion in cash and investments. Our ability to generate cash during the quarter and year can be partially attributed to decreases in total lots owned, including WIP lots, of 8% and 39%, respectively, for the quarter and year ended December 31, 2008. As a result, our total inventory balance was only $637.3 million at year end compared with $1.46 billion at the end of 2007. For the lots we controlled under option contracts at December 31, 2008, we only had $10.5 million at risk.
Christopher M. Anderson, MDC's senior vice president and chief financial officer, said, "Given that our cash and investments exceed total debt and our next debt maturity does not occur until 2012, we believe we are positioned with adequate resources to pursue opportunistic land investments in the future. While we didn't find many potential land transactions that met our underwriting criteria during the year, we were able to take advantage of isolated opportunities during the fourth quarter of 2008. During 2009 we will continue to maintain an active dialogue with potential land sellers and other parties in anticipation of a greater volume of opportunities that we believe may materialize in the future."
About MDC
Since 1972, MDC has built and financed the American dream for more than 150,000 families. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. As one of the largest homebuilders in the United States, the Company has 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 also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, 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 Annual Report on Form 10-K for the year ended December 31, 2008, 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 Year Ended
December 31, December 31,
2008 2007 2008 2007
REVENUE
Home sales revenue $283,519 $715,244 $1,358,148 $2,765,981
Land sales revenue 3,351 37,979 60,050 50,130
Other revenue 9,338 18,892 39,910 69,548
Total Revenue 296,208 772,115 1,458,108 2,885,659
COSTS AND EXPENSES
Home cost of sales 246,918 631,262 1,184,865 2,380,427
Land cost of sales 4,288 51,789 53,847 59,529
Asset impairments 59,657 175,199 298,155 726,621
Marketing expenses 13,532 29,944 71,882 117,088
Commission expenses 9,906 26,421 50,295 97,951
General and administrative
expenses 48,413 59,486 198,689 306,715
Related party expenses 5 1,096 18 1,382
Total Operating Costs and
Expenses 382,719 975,197 1,857,751 3,689,713
LOSS FROM OPERATIONS (86,511) (203,082) (399,643) (804,054)
Other income (expense)
Interest income, net 117 10,384 17,470 37,322
Gain (loss) on sale of other
assets (1) 2,257 38 10,268
LOSS BEFORE TAXES (86,395) (190,441) (382,135) (756,464)
(Provision for) benefit from
income taxes, net (2,633) (90,651) 1,590 119,524
NET LOSS $(89,028) $(281,092) $(380,545) $(636,940)
LOSS PER SHARE
Basic $(1.92) $(6.14) $(8.24) $(13.94)
Diluted $(1.92) $(6.14) $(8.24) $(13.94)
WEIGHTED-AVERAGE SHARES
OUTSTANDING
Basic 46,352 45,772 46,159 45,687
Diluted 46,352 45,772 46,159 45,687
DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $1.00 $1.00
M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)
December 31,
2008 2007
ASSETS
Cash and cash equivalents $1,304,728 $1,004,763
Short-term investments 54,864 -
Unsettled trades 57,687 -
Restricted cash 670 1,898
Receivables
Home sales receivables 17,104 33,647
Income taxes receivable 170,753 93,515
Other receivables 16,697 16,796
Mortgage loans held-for-sale, net 68,604 100,144
Inventories, net
Housing completed or under construction 415,500 902,221
Land and land under development 221,822 554,336
Property and equipment, net 38,343 44,368
Deferred tax asset, net of valuation
allowance - 160,565
Related party assets 28,627 28,627
Prepaid expenses and other assets, net 79,539 71,884
Total Assets $2,474,938 $3,012,764
LIABILITIES
Accounts payable $28,793 $71,932
Accrued liabilities 332,825 395,880
Related party liabilities - 1,701
Mortgage repurchase facility 34,873 -
Mortgage line of credit - 70,147
Senior notes, net 997,527 997,091
Total Liabilities 1,394,018 1,536,751
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;
46,715,000 and 46,666,000 issued
and outstanding, respectively,
at December 31, 2008 and
46,084,000 and 46,053,000 issued and
outstanding, respectively,
at December 31, 2007 467 461
Additional paid-in-capital 788,207 757,039
Retained earnings 292,905 719,841
Accumulated other comprehensive loss - (669)
Treasury stock, at cost; 49,000 and
31,000 shares at December 31, 2008
and December 31, 2007, respectively (659) (659)
Total Stockholders' Equity 1,080,920 1,476,013
Total Liabilities and Stockholders'
Equity $2,474,938 $3,012,764
M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
REVENUE
Homebuilding
West $146,384 $448,710 $785,451 $1,725,589
Mountain 67,938 131,453 298,441 549,662
East 46,114 113,129 207,931 318,494
Other Homebuilding 30,847 69,421 146,745 253,595
Total Homebuilding 291,283 762,713 1,438,568 2,847,340
Financial Services and Other 7,947 11,848 33,681 55,543
Corporate 540 2,656 643 2,761
Inter-company adjustments (3,562) (5,102) (14,784) (19,985)
Consolidated $296,208 $772,115 $1,458,108 $2,885,659
(LOSS) INCOME BEFORE INCOME
TAXES
Homebuilding
West $(14,380) $(159,227) $(157,103) $(621,774)
Mountain (31,531) (14,613) (112,251) (11,395)
East (8,519) (11,580) (36,021) (38,748)
Other Homebuilding (13,429) (10,475) (33,300) (92,251)
Total Homebuilding (67,859) (195,895) (338,675) (764,168)
Financial Services and Other 3,559 6,286 11,678 23,062
Corporate (22,095) (832) (55,138) (15,358)
Consolidated $(86,395) $(190,441) $(382,135) $(756,464)
INVENTORY IMPAIRMENTS
West $16,048 $136,370 $151,969 $581,494
Mountain 24,021 13,399 83,270 30,106
East 4,857 17,386 27,155 42,055
Other Homebuilding 12,102 7,576 24,342 72,498
Consolidated $57,028 $174,731 $286,736 $726,153
December 31,
2008 2007
TOTAL ASSETS
Homebuilding
West $255,652 $747,835
Mountain 288,221 474,203
East 132,700 250,658
Other Homebuilding 56,846 125,003
Total Homebuilding 733,419 1,597,699
Financial Services and Other 139,569 174,617
Corporate 1,647,907 1,285,705
Inter-company adjustments (45,957) (45,257)
Consolidated $2,474,938 $3,012,764
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months Ended
December 31, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding $21,437 $39,036 $(17,599) -45%
Financial Services and Other 5,591 9,385 (3,794) -40%
Corporate (1) 21,390 12,161 9,229 76%
Total $48,418 $60,582 $(12,164) -20%
SG&A as a % of Home Sales Revenue
Homebuilding Segments 15.8% 13.3% 2.5%
Corporate Segment (1) 7.5% 1.7% 5.8%
Depreciation and Amortization (2) $5,850 $13,348 $(7,498) -56%
Home Gross Margins (3) 12.9% 11.7% 1.2%
Interest in Home Cost of Sales as
a % of Home Sales Revenue 4.1% 2.1% 2.0%
Cash Provided by (Used in)
Operating Activities $51,162 $257,015 $(205,853) -80%
Investing Activities $96,876 $6,915 $89,961 N/A
Financing Activities $(4,178) $11,354 $(15,532) -137%
Corporate and Homebuilding Interest
Interest capitalized, net of
interest expense $7,186 $14,471 $(7,285) -50%
Previously capitalized interest
included in home cost of sales $(11,681) $(14,988) $3,307 -22%
Interest capitalized in homebuilding
inventory, end of year $39,239 $53,487 $(14,248) -27%
Year Ended
December 31, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding $105,652 $210,455 $(104,803) -50%
Financial Services and Other 25,790 40,445 (14,655) -36%
Corporate (1) 67,265 57,197 10,068 18%
Total $198,707 $308,097 $(109,390) -36%
SG&A as a % of Home Sales Revenue
Homebuilding Segments 16.8% 15.4% 1.4%
Corporate Segment (1) 5.0% 2.1% 2.9%
Depreciation and Amortization (2) $32,710 $47,342 $(14,632) -31%
Home Gross Margins (3) 12.8% 13.9% -1.2%
Interest in Home Cost of Sales as
a % of Home Sales Revenue 4.0% 2.0% 2.0%
Cash Provided by (Used in)
Operating Activities $479,511 $592,583 $(113,072) -19%
Investing Activities $(113,439) $(1,447) $(111,992)N/A
Financing Activities $(66,107) $(94,320) $28,213 -30%
Corporate and Homebuilding Interest
Interest capitalized, net of
interest expense $39,852 $57,791 $(17,939) -31%
Previously capitalized interest
included in home cost of sales $(54,100) $(54,959) $859 -2%
Interest capitalized in homebuilding
inventory, end of year $39,239 $53,487 $(14,248) -27%
(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 and
twelve months ended December 31, 2008, we closed homes on lots for
which we had previously recorded $67.4 million and $249.5 million,
respectively, of asset impairments. During the three and twelve
months ended December 31, 2007, we closed homes on lots for which we
had previously recorded $65.1 million and $121.6 million,
respectively, of asset impairments.
M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)
Three Months Ended
December 31, 2008 Change
2008 2007 Amount %
HOMEAMERICAN OPERATING
ACTIVITIES
Principal amount of mortgage
loans originated $172,745 $303,179 $(130,434) -43%
Principal amount of mortgage
loans brokered $29,751 $146,993 $(117,242) -80%
Capture Rate 71% 54% 17%
Including brokered loans 81% 75% 6%
Mortgage products (% of
mortgage loans originated)
Fixed rate 100% 94% 6%
Adjustable rate - interest
only 0% 4% -4%
Adjustable rate - other 0% 2% -2%
Prime loans (4) 40% 79% -39%
Alt A loans (5) 0% 0% 0%
Government loans (6) 60% 21% 39%
Sub-prime loans (7) 0% 0% 0%
Year Ended
December 31, 2008 Change
2008 2007 Amount %
HOMEAMERICAN OPERATING
ACTIVITIES
Principal amount of mortgage
loans originated $749,310 $1,233,948 $(484,638) -39%
Principal amount of mortgage
loans brokered $170,898 $511,806 $(340,908) -67%
Capture Rate 66% 55% 11%
Including brokered loans 78% 74% 4%
Mortgage products (% of
mortgage loans originated)
Fixed rate 97% 82% 15%
Adjustable rate - interest
only 1% 16% -15%
Adjustable rate - other 2% 2% 0%
Prime loans (4) 48% 78% -30%
Alt A loans (5) 0% 10% -10%
Government loans (6) 52% 12% 40%
Sub-prime loans (7) 0% 0% 0%
(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) Alt-A loans are defined as loans that would otherwise qualify as prime
loans except that they do not comply with the documentation standards
of the government sponsored enterprise guidelines.
(6) Government loans are loans either insured by the Federal Housing
Administration or guaranteed by the Department of Veteran Affairs.
(7) Sub-prime loans generally are defined as loans that have FICO scores
of less than or equal to 620.
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
December 31, December 31,
HOMES COMPLETED OR UNDER CONSTRUCTION 2008 2007
Unsold Home Under Construction - Final 451 515
Unsold Home Under Construction - Frame 329 656
Unsold Home Under Construction - Foundation 41 229
Total Unsold Homes Under Construction 821 1,400
Sold Homes Under Construction 409 1,350
Model Homes 387 730
Homes Completed or Under Construction 1,617 3,480
LOTS OWNED (excluding homes completed
or under construction)
Arizona 1,458 2,969
California 839 1,491
Nevada 1,111 1,549
West 3,408 6,009
Colorado 2,597 2,992
Utah 642 863
Mountain 3,239 3,855
Maryland 176 302
Virginia 241 369
East 417 671
Delaware Valley 115 151
Florida 257 638
Illinois 141 191
Other Homebuilding 513 980
Total 7,577 11,515
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)
December 31, December 31,
LOTS CONTROLLED UNDER OPTION 2008 2007
Arizona 472 512
California 149 157
Nevada 95 4
West 716 673
Colorado 184 262
Utah - -
Mountain 184 262
Maryland 355 558
Virginia 592 1,311
East 947 1,869
Delaware Valley 40 327
Florida 471 484
Illinois - -
Other Homebuilding 511 811
Total 2,358 3,615
Total Lots Owned and Controlled 9,935 15,130
NON-REFUNDABLE OPTION DEPOSITS
Cash $5,145 $6,292
Letters of Credit 4,358 6,547
Total Non-Refundable Option Deposits $9,503 $12,839
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Months Ended
December 31, Change
2008 2007 Amount %
HOMES CLOSED
(UNITS)
Arizona 275 804 (529) -66%
California 118 305 (187) -61%
Nevada 152 262 (110) -42%
West 545 1,371 (826) -60%
Colorado 133 235 (102) -43%
Utah 54 145 (91) -63%
Mountain 187 380 (193) -51%
Maryland 42 107 (65) -61%
Virginia 58 128 (70) -55%
East 100 235 (135) -57%
Delaware Valley 16 62 (46) -74%
Florida 82 115 (33) -29%
Illinois 14 37 (23) -62%
Texas - - - N/A
Other
Homebuilding 112 214 (102) -48%
Total 944 2,200 (1,256) -57%
Year Ended
December 31, Change
2008 2007 Amount %
HOMES CLOSED
(UNITS)
Arizona 1,313 2,801 (1,488) -53%
California 590 1,136 (546) -48%
Nevada 791 1,290 (499) -39%
West 2,694 5,227 (2,533) -48%
Colorado 576 818 (242) -30%
Utah 268 713 (445) -62%
Mountain 844 1,531 (687) -45%
Maryland 192 288 (96) -33%
Virginia 257 344 (87) -25%
East 449 632 (183) -29%
Delaware Valley 91 178 (87) -49%
Florida 336 496 (160) -32%
Illinois 74 105 (31) -30%
Texas - 26 (26) N/A
Other
Homebuilding 501 805 (304) -38%
Total 4,488 8,195 (3,707) -45%
AVERAGE SELLING PRICES PER
CLOSED HOME
Three Months Ended
December 31, Change
2008 2007 Amount %
West
Arizona $201.1 $230.1 $(29.0) -13%
California 455.3 494.1 (38.8) -8%
Nevada 237.5 275.5 (38.0) -14%
Mountain
Colorado 363.7 348.3 15.4 4%
Utah 319.4 338.6 (19.2) -6%
East
Maryland 489.9 504.8 (14.9) -3%
Virginia 436.3 461.7 (25.4) -6%
Other Homebuilding
Delaware Valley 392.9 441.4 (48.5) -11%
Florida 232.7 249.4 (16.7) -7%
Illinois 348.0 355.2 (7.2) -2%
Texas N/A N/A N/A N/A
Company
Average $300.3 $325.1 $(25.0) -8%
AVERAGE SELLING
PRICES PER
CLOSED HOME
Year Ended
December 31, Change
2008 2007 Amount %
West
Arizona $216.2 $247.4 $(31.2) -13%
California 429.0 516.5 (87.5) -17%
Nevada 244.6 296.2 (51.6) -17%
Mountain
Colorado 352.1 346.3 5.8 2%
Utah 333.0 355.5 (22.5) -6%
East
Maryland 466.0 515.2 (49.2) -10%
Virginia 454.3 480.4 (26.1) -5%
Other Homebuilding
Delaware Valley 406.4 448.8 (42.4) -9%
Florida 238.5 261.5 (23.0) -9%
Illinois 347.9 372.4 (24.5) -7%
Texas N/A 129.6 N/A N/A
Company
Average $302.6 $337.5 $(34.9) -10%
M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)
Three Months
Ended December 31, Change
2008 2007 Amount %
ORDERS FOR HOMES,
NET (UNITS)
Arizona 87 139 (52) -37%
California 42 63 (21) -33%
Nevada 50 298 (248) -83%
West 179 500 (321) -64%
Colorado 50 101 (51) -50%
Utah 27 36 (9) -25%
Mountain 77 137 (60) -44%
Maryland 12 - 12 N/A
Virginia 41 33 8 24%
East 53 33 20 61%
Delaware Valley 5 12 (7) -58%
Florida 31 47 (16) -34%
Illinois 5 19 (14) -74%
Texas - - - N/A
Other
Homebuilding 41 78 (37) -47%
Total 350 748 (398) -53%
Estimated Value of
Orders for Homes,
net $99,000 $187,000 (88,000) -47%
Estimated Average
Selling Price of
Orders for Homes,
net $282.9 $250.0 32.9 13%
Cancellation Rate(8) 52% 65% -13%
Year Ended
December 31, 2008 Change
2008 2007 Amount %
ORDERS FOR HOMES,
NET (UNITS)
Arizona 879 1,889 (1,010) -53%
California 436 912 (476) -52%
Nevada 537 1,282 (745) -58%
West 1,852 4,083 (2,231) -55%
Colorado 435 778 (343) -44%
Utah 132 426 (294) -69%
Mountain 567 1,204 (637) -53%
Maryland 124 227 (103) -45%
Virginia 193 308 (115) -37%
East 317 535 (218) -41%
Delaware Valley 61 116 (55) -47%
Florida 246 424 (178) -42%
Illinois 31 128 (97) -76%
Texas - 14 (14) -100%
Other
Homebuilding 338 682 (344) -50%
Total 3,074 6,504 (3,430) -53%
Estimated Value of
Orders for Homes,
net $885,000 $2,107,000 (1,222,000) -58%
Estimated Average
Selling Price of
Orders for Homes,
net $287.9 $324.0 (36.1) -11%
Cancellation Rate(8) 45% 48% -3%
(8) 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)
December 31, December 31,
2008 2007
BACKLOG (UNITS)
Arizona 158 592
California 49 203
Nevada 53 307
West 260 1,102
Colorado 72 213
Utah 42 178
Mountain 114 391
Maryland 58 126
Virginia 36 100
East 94 226
Delaware Valley 27 57
Florida 35 125
Illinois 3 46
Other Homebuilding 65 228
Total 533 1,947
Backlog Estimated Sales Value $173,000 $650,000
Estimated Average Selling Price
of Homes in Backlog $324.6 $333.8
ACTIVE SUBDIVISIONS
Arizona 44 66
California 18 41
Nevada 24 39
West 86 146
Colorado 49 47
Utah 22 23
Mountain 71 70
Maryland 11 15
Virginia 12 18
East 23 33
Delaware Valley 3 4
Florida 7 20
Illinois 1 5
Other Homebuilding 11 29
Total 191 278
SOURCE M.D.C. Holdings, Inc.
http://www.mdcholdings.com/
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