Record full year home sale revenues of $5.59 billion; Over $900 million of cash flow from operating activities; Cash and cash equivalents and marketable securities of $1.28 billion
DENVER, Jan. 31, 2023 /PRNewswire/ — M.D.C. Holdings, Inc. (NYSE: MDC), one of the nation’s leading homebuilders, announced results for the quarter and full year ended December 31, 2022.
“MDC generated net income of $562 million for fiscal year 2022, or $7.67 per diluted share, representing one of the most profitable years in our company’s history,” said MDC’s Executive Chairman, Larry A. Mizel. “Home sale revenues increased 9% year-over-year helping us generate over $900 million of cash flow from operating activities. We ended the year with a debt to capital ratio of 32.6% and total cash and cash equivalents and marketable securities of $1.28 billion.”
Mr. Mizel continued, “While 2022 was a banner year for our company from a financial perspective, it was a challenging one for new home sales, as the combination of rising mortgage rates and overall economic uncertainty led to a sharp decline in order activity in the second half of the year. We began experiencing slower gross order and increased cancellation activity in the second and third quarters, and this carried into the fourth quarter. We did experience a rebound in order activity in December thanks to a more aggressive approach to pricing and incentives, an encouraging sign that price elasticity exists in our markets.”
Mr. Mizel concluded, “As we head into the spring 2023 selling season, we have modified our strategy to focus more on quick move-in inventory as we believe that the majority of today’s buyers want a shorter time between sale and close. In addition, we are requiring higher deposit amounts on build-to-order homes. We feel that these initiatives are the right approach for today’s new home environment and should lead to better net sales results relative to the second half of 2022.”
“Consistent with our operating strategy, we have been diligent in managing our land position to align with current market conditions.” said David Mandarich, MDC’s President and Chief Executive Officer. “By acting decisively, we generated considerable cash flow in 2022. This has positioned us well to capitalize on land acquisition opportunities that we believe will emerge during this industry downturn, likely with better pricing and terms than were previously available. As we work to bring these opportunities to fruition, we are also working closely with our trades and suppliers to reduce our build costs in this softer demand environment. By staying vigilant on our costs and land position, we have put ourselves in a position to weather the current slowdown and take advantage of an eventual recovery.”
2022 Fourth Quarter Highlights and Comparisons to 2021 Fourth Quarter
- Home sale revenues increased 4% to $1.49 billion from $1.44 billion
- Average selling price of deliveries up 8% to $582,000
- Unit deliveries down 4% to 2,554
- Homebuilding pretax income decreased 51% to $94.5 million from $193.5 million
- Gross margin from home sales decreased 850 basis points to 15.0% from 23.5%
- Inventory impairments of $92.8 million in Q4 2022 vs $1.6 million in Q4 2021
- Selling, general and administrative expenses as a percentage of home sale revenues (“SG&A rate”) improved by 20 basis points to 8.9%
- Net income of $79.8 million, or $1.08 per diluted share, down 51% from $162.7 million or $2.21 per diluted share
- Effective tax rate of 29.5% vs. 22.2%
- Unit gross orders decreased 55% to 1,502 from 3,308
- Cancellations as a percentage of beginning backlog increased to 24.6% from 8.7%
- Gross order average selling price down approximately 1% to $551,000
2022 Full Year Highlights and Comparisons to 2021 Full Year
- Home sale revenues increased 9% to $5.59 billion from $5.10 billion
- Unit deliveries down 3% to 9,710
- Homebuilding pretax income increased 5% to $691.5 million from $659.7 million
- Gross margin from home sales of 22.4% vs. 23.1%
- Inventory impairments of $121.9 million vs $1.6 million
- SG&A rate improved to 9.6% vs. 9.7%
- Net income of $562.1 million, or $7.67 per diluted share, down 2% from $573.7 million or $7.83 per diluted share
- Effective tax rate of 26.0% vs. 23.7%
- Cash flow from operating activities of $905.6 million compared to cash used in operating activities of $208.0 million
- Dollar value of net new orders decreased 50% to $3.01 billion from $6.04 billion
2023 Outlook and Other Selected Information1
- Active subdivisions at December 31, 2022 up 20% year-over-year to 225
- Projected home deliveries for the 2023 first quarter between 1,500 and 1,600
- Projected average selling price for 2023 first quarter unit deliveries between $550,000 and $560,000
- Projected gross margin from home sales for the 2023 first quarter of approximately 18% to 19% (assuming no impairments or warranty adjustments)
- Quarterly cash dividend of fifty cents ($0.50) per share declared on January 23, 2023
- Consistent record of stable or increasing dividends for more than 25 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 built and financed the American Dream for more than 230,000 homebuyers since 1977. 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 operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside–San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, Seattle, Portland, Boise, Nashville, Austin, Albuquerque and Huntsville. MDC’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.
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, including the impact of the COVID-19 pandemic, changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including restrictions on business activities resulting from the COVID-19 pandemic, 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-K for the year ended December 31, 2022, 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. |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(Dollars in thousands, except per share amounts) |
|||||||
|
Homebuilding: |
|||||||
|
Home sale revenues |
$ 1,487,279 |
$ 1,435,124 |
$ 5,586,264 |
$ 5,102,456 |
|||
|
Home cost of sales |
(1,170,989) |
(1,096,946) |
(4,214,379) |
(3,924,093) |
|||
|
Inventory impairments |
(92,800) |
(1,600) |
(121,875) |
(1,600) |
|||
|
Total cost of sales |
(1,263,789) |
(1,098,546) |
(4,336,254) |
(3,925,693) |
|||
|
Gross profit |
223,490 |
336,578 |
1,250,010 |
1,176,763 |
|||
|
Selling, general and administrative expenses |
(131,797) |
(130,023) |
(536,395) |
(493,993) |
|||
|
Loss on debt retirement |
— |
(11,421) |
— |
(23,571) |
|||
|
Interest and other income |
7,046 |
981 |
10,843 |
5,965 |
|||
|
Other expense |
(4,258) |
(2,595) |
(32,991) |
(5,476) |
|||
|
Homebuilding pretax income |
94,481 |
193,520 |
691,467 |
659,688 |
|||
|
Financial Services: |
|||||||
|
Revenues |
32,262 |
30,767 |
131,723 |
152,212 |
|||
|
Expenses |
(16,887) |
(16,555) |
(71,327) |
(64,477) |
|||
|
Other income (expense), net |
3,364 |
1,416 |
7,991 |
4,271 |
|||
|
Financial services pretax income |
18,739 |
15,628 |
68,387 |
92,006 |
|||
|
Income before income taxes |
113,220 |
209,148 |
759,854 |
751,694 |
|||
|
Provision for income taxes |
(33,444) |
(46,487) |
(197,715) |
(178,037) |
|||
|
Net income |
$ 79,776 |
$ 162,661 |
$ 562,139 |
$ 573,657 |
|||
|
Comprehensive income |
$ 79,776 |
$ 162,661 |
$ 562,139 |
$ 573,657 |
|||
|
Earnings per share: |
|||||||
|
Basic |
$ 1.11 |
$ 2.30 |
$ 7.87 |
$ 8.13 |
|||
|
Diluted |
$ 1.08 |
$ 2.21 |
$ 7.67 |
$ 7.83 |
|||
|
Weighted average common shares outstanding: |
|||||||
|
Basic |
71,646,237 |
70,303,149 |
71,035,558 |
70,174,281 |
|||
|
Diluted |
73,179,135 |
73,110,624 |
72,943,844 |
72,854,601 |
|||
|
Dividends declared per share |
$ 0.50 |
$ 0.50 |
$ 2.00 |
$ 1.67 |
|||
|
M.D.C. HOLDINGS, INC. |
|||
|
December 31, |
December 31, |
||
|
(Dollars in thousands, except per share amounts) |
|||
|
ASSETS |
|||
|
Homebuilding: |
|||
|
Cash and cash equivalents |
$ 696,075 |
$ 485,839 |
|
|
Restricted cash |
3,143 |
12,799 |
|
|
Marketable securities |
443,712 |
— |
|
|
Trade and other receivables |
116,364 |
98,580 |
|
|
Inventories: |
|||
|
Housing completed or under construction |
1,722,061 |
1,917,616 |
|
|
Land and land under development |
1,793,718 |
1,843,235 |
|
|
Total inventories |
3,515,779 |
3,760,851 |
|
|
Property and equipment, net |
63,730 |
60,561 |
|
|
Deferred tax assets, net |
49,252 |
17,942 |
|
|
Prepaids and other assets |
70,007 |
106,562 |
|
|
Total homebuilding assets |
4,958,062 |
4,543,134 |
|
|
Financial Services: |
|||
|
Cash and cash equivalents |
17,877 |
104,821 |
|
|
Marketable securities |
117,388 |
— |
|
|
Mortgage loans held-for-sale, net |
229,513 |
282,529 |
|
|
Other assets |
40,432 |
33,044 |
|
|
Total financial services assets |
405,210 |
420,394 |
|
|
Total Assets |
$ 5,363,272 |
$ 4,963,528 |
|
|
LIABILITIES AND EQUITY |
|||
|
Homebuilding: |
|||
|
Accounts payable |
$ 109,218 |
$ 149,488 |
|
|
Accrued and other liabilities |
383,406 |
370,910 |
|
|
Revolving credit facility |
10,000 |
10,000 |
|
|
Senior notes, net |
1,482,576 |
1,481,781 |
|
|
Total homebuilding liabilities |
1,985,200 |
2,012,179 |
|
|
Financial Services: |
|||
|
Accounts payable and accrued liabilities |
110,536 |
97,903 |
|
|
Mortgage repurchase facility |
175,752 |
256,300 |
|
|
Total financial services liabilities |
286,288 |
354,203 |
|
|
Total Liabilities |
2,271,488 |
2,366,382 |
|
|
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; 72,585,596 and 70,668,093 issued and |
726 |
707 |
|
|
Additional paid-in-capital |
1,784,173 |
1,709,276 |
|
|
Retained earnings |
1,306,885 |
887,163 |
|
|
Total Stockholders’ Equity |
3,091,784 |
2,597,146 |
|
|
Total Liabilities and Stockholders’ Equity |
$ 5,363,272 |
$ 4,963,528 |
|
|
M.D.C. HOLDINGS, INC. |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(Dollars in thousands) |
|||||||
|
Operating Activities: |
|||||||
|
Net income |
$ 79,776 |
$ 162,661 |
$ 562,139 |
$ 573,657 |
|||
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|||||||
|
Stock-based compensation expense |
10,637 |
12,823 |
60,985 |
39,655 |
|||
|
Depreciation and amortization |
7,088 |
7,736 |
27,751 |
31,666 |
|||
|
Inventory impairments |
92,800 |
1,600 |
121,875 |
1,600 |
|||
|
Project abandonment costs |
4,371 |
2,510 |
33,129 |
5,417 |
|||
|
Gain on sale of other assets |
— |
— |
— |
(2,014) |
|||
|
Amortization of discount of marketable debt securities |
(3,208) |
— |
(4,290) |
— |
|||
|
Loss on retirement of debt |
— |
11,421 |
— |
23,571 |
|||
|
Deferred income tax expense |
(27,130) |
(1,641) |
(31,310) |
(6,488) |
|||
|
Net changes in assets and liabilities: |
|||||||
|
Trade and other receivables |
(2,463) |
30,195 |
(21,784) |
(25,334) |
|||
|
Mortgage loans held-for-sale, net |
(38,680) |
(33,608) |
53,016 |
(49,973) |
|||
|
Housing completed or under construction |
505,348 |
29,179 |
186,265 |
(431,926) |
|||
|
Land and land under development |
(75,662) |
(381,112) |
(95,402) |
(502,781) |
|||
|
Prepaids and other assets |
39,786 |
(1,374) |
31,736 |
8,545 |
|||
|
Accounts payable and accrued liabilities |
(30,970) |
38,142 |
(18,464) |
126,415 |
|||
|
Net cash provided by (used in) operating activities |
561,693 |
(121,468) |
905,646 |
(207,990) |
|||
|
Investing Activities: |
|||||||
|
Purchases of marketable securities |
(365,684) |
— |
(656,810) |
— |
|||
|
Maturities of marketable securities |
100,000 |
— |
100,000 |
— |
|||
|
Proceeds from sale of other assets |
— |
— |
— |
2,014 |
|||
|
Purchases of property and equipment |
(7,646) |
(6,665) |
(29,075) |
(29,693) |
|||
|
Net cash provided by (used in) investing activities |
(273,330) |
(6,665) |
(585,885) |
(27,679) |
|||
|
Financing Activities: |
|||||||
|
Advances on mortgage repurchase facility, net |
(20,462) |
40,506 |
(80,548) |
53,910 |
|||
|
Payments of senior notes |
— |
(140,557) |
— |
(276,951) |
|||
|
Proceeds from issuance of senior notes |
— |
— |
— |
694,662 |
|||
|
Dividend payments |
(35,632) |
(35,340) |
(142,417) |
(118,529) |
|||
|
Payments of deferred debt issuance costs |
— |
— |
— |
(1,720) |
|||
|
Issuance of shares under stock-based compensation programs, net |
28,385 |
(663) |
16,840 |
(16,216) |
|||
|
Net cash provided by (used in) financing activities |
(27,709) |
(136,054) |
(206,125) |
335,156 |
|||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
260,654 |
(264,187) |
113,636 |
99,487 |
|||
|
Cash, cash equivalents and restricted cash: |
|||||||
|
Beginning of period |
456,441 |
867,646 |
603,459 |
503,972 |
|||
|
End of period |
$ 717,095 |
$ 603,459 |
$ 717,095 |
$ 603,459 |
|||
|
Reconciliation of cash, cash equivalents and restricted cash: |
|||||||
|
Homebuilding: |
|||||||
|
Cash and cash equivalents |
$ 696,075 |
$ 485,839 |
$ 696,075 |
$ 485,839 |
|||
|
Restricted cash |
3,143 |
12,799 |
3,143 |
12,799 |
|||
|
Financial Services: |
|||||||
|
Cash and cash equivalents |
17,877 |
104,821 |
17,877 |
104,821 |
|||
|
Total cash, cash equivalents and restricted cash |
$ 717,095 |
$ 603,459 |
$ 717,095 |
$ 603,459 |
|||
|
New Home Deliveries |
|||||||||||||||||
|
Three Months Ended December 31, |
|||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||
|
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
|||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
West |
1,308 |
$ 756,109 |
$ 578.1 |
1,408 |
$ 770,695 |
$ 547.4 |
(7) % |
(2) % |
6 % |
||||||||
|
Mountain |
756 |
492,850 |
651.9 |
781 |
462,807 |
592.6 |
(3) % |
6 % |
10 % |
||||||||
|
East |
490 |
238,320 |
486.4 |
474 |
201,622 |
425.4 |
3 % |
18 % |
14 % |
||||||||
|
Total |
2,554 |
$ 1,487,279 |
$ 582.3 |
2,663 |
$ 1,435,124 |
$ 538.9 |
(4) % |
4 % |
8 % |
||||||||
|
Year Ended December 31, |
|||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||
|
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
Homes |
Home Sale Revenues |
Average Price |
|||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
West |
5,234 |
$ 3,024,056 |
$ 577.8 |
5,732 |
$ 2,964,766 |
$ 517.2 |
(9) % |
2 % |
12 % |
||||||||
|
Mountain |
2,616 |
1,689,376 |
645.8 |
2,770 |
1,567,198 |
565.8 |
(6) % |
8 % |
14 % |
||||||||
|
East |
1,860 |
872,832 |
469.3 |
1,480 |
570,492 |
385.5 |
26 % |
53 % |
22 % |
||||||||
|
Total |
9,710 |
$ 5,586,264 |
$ 575.3 |
9,982 |
$ 5,102,456 |
$ 511.2 |
(3) % |
9 % |
13 % |
||||||||
|
Net New Orders |
|||||||||||||||||||||||
|
Three Months Ended December 31, |
|||||||||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||||||||
|
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate |
||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||
|
West |
155 |
$ 67,710 |
$ 436.8 |
0.39 |
1,424 |
$ 776,984 |
$ 545.6 |
4.70 |
(89) % |
(91) % |
(20) % |
(92) % |
|||||||||||
|
Mountain |
(37) |
(25,924) |
700.6 |
(0.24) |
704 |
431,931 |
613.5 |
4.27 |
(105) % |
(106) % |
14 % |
(106) % |
|||||||||||
|
East |
72 |
32,649 |
453.5 |
0.64 |
517 |
225,834 |
436.8 |
4.31 |
(86) % |
(86) % |
4 % |
(85) % |
|||||||||||
|
Total |
190 |
$ 74,435 |
$ 391.8 |
0.29 |
2,645 |
$ 1,434,749 |
$ 542.4 |
4.50 |
(93) % |
(95) % |
(28) % |
(94) % |
|||||||||||
|
Year Ended December31, |
|||||||||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||||||||
|
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate * |
Homes |
Dollar Value |
Average Price |
Monthly Absorption Rate |
||||||||||||
|
(Dollars in thousands) |
|||||||||||||||||||||||
|
West |
2,909 |
$ 1,735,202 |
$ 596.5 |
2.01 |
6,238 |
$ 3,417,437 |
$ 547.8 |
5.25 |
(53) % |
(49) % |
9 % |
(62) % |
|||||||||||
|
Mountain |
1,157 |
788,734 |
681.7 |
1.85 |
2,926 |
1,831,755 |
626.0 |
4.33 |
(60) % |
(57) % |
9 % |
(57) % |
|||||||||||
|
East |
978 |
489,946 |
501.0 |
2.25 |
1,803 |
789,810 |
438.1 |
4.05 |
(46) % |
(38) % |
14 % |
(44) % |
|||||||||||
|
Total |
5,044 |
$ 3,013,882 |
$ 597.5 |
2.02 |
10,967 |
$ 6,039,002 |
$ 550.7 |
4.75 |
(54) % |
(50) % |
9 % |
(57) % |
|||||||||||
|
*Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period |
|||||||||||||||||||||||
|
Active Subdivisions |
|||||||||||||||||
|
Average Active Subdivisions |
|||||||||||||||||
|
Active Subdivisions |
Three Months Ended |
Year Ended |
|||||||||||||||
|
December 31, |
% |
December 31, |
% |
December 31, |
% |
||||||||||||
|
2022 |
2021 |
Change |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
|||||||||
|
West |
134 |
96 |
40 % |
133 |
101 |
32 % |
120 |
99 |
21 % |
||||||||
|
Mountain |
53 |
54 |
(2) % |
51 |
55 |
(7) % |
52 |
56 |
(7) % |
||||||||
|
East |
38 |
37 |
3 % |
37 |
40 |
(7) % |
36 |
37 |
(3) % |
||||||||
|
Total |
225 |
187 |
20 % |
222 |
196 |
13 % |
208 |
192 |
8 % |
||||||||
|
Backlog |
|||||||||||||||||
|
December 31, |
|||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||
|
Homes |
Dollar Value |
Average Price |
Homes |
Dollar Value |
Average Price |
Homes |
Dollar Value |
Average Price |
|||||||||
|
(Dollars in thousands) |
|||||||||||||||||
|
West |
1,891 |
$ 1,049,805 |
$ 555.2 |
4,216 |
$ 2,328,949 |
$ 552.4 |
(55) % |
(55) % |
— % |
||||||||
|
Mountain |
715 |
515,460 |
720.9 |
2,174 |
1,402,052 |
644.9 |
(67) % |
(63) % |
12 % |
||||||||
|
East |
368 |
187,629 |
509.9 |
1,250 |
567,695 |
454.2 |
(71) % |
(67) % |
12 % |
||||||||
|
Total |
2,974 |
$ 1,752,894 |
$ 589.4 |
7,640 |
$ 4,298,696 |
$ 562.7 |
(61) % |
(59) % |
5 % |
||||||||
|
Homes Completed or Under Construction (WIP lots) |
|||||
|
December 31, |
% |
||||
|
2022 |
2021 |
Change |
|||
|
Unsold: |
|||||
|
Completed |
396 |
25 |
1,484 % |
||
|
Under construction |
1,063 |
312 |
241 % |
||
|
Total unsold started homes |
1,459 |
337 |
333 % |
||
|
Sold homes under construction or completed |
2,756 |
6,379 |
(57) % |
||
|
Model homes under construction or completed |
555 |
479 |
16 % |
||
|
Total homes completed or under construction |
4,770 |
7,195 |
(34) % |
||
|
Lots Owned and Optioned (including homes completed or under construction) |
|||||||||||||
|
December 31, 2022 |
December 31, 2021 |
||||||||||||
|
Lots Owned |
Lots Optioned |
Total |
Lots Owned |
Lots Optioned |
Total |
Total % Change |
|||||||
|
West |
12,667 |
687 |
13,354 |
15,968 |
4,534 |
20,502 |
(35) % |
||||||
|
Mountain |
5,398 |
1,561 |
6,959 |
6,660 |
4,171 |
10,831 |
(36) % |
||||||
|
East |
3,534 |
1,455 |
4,989 |
4,304 |
2,443 |
6,747 |
(26) % |
||||||
|
Total |
21,599 |
3,703 |
25,302 |
26,932 |
11,148 |
38,080 |
(34) % |
||||||
|
Selling, General and Administrative Expenses |
|||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
|
2022 |
2021 |
Change |
2022 |
2021 |
Change |
||||||
|
(Dollars in thousands) |
|||||||||||
|
General and administrative expenses |
$ 66,614 |
$ 66,986 |
$ (372) |
$ 292,349 |
$ 246,042 |
$ 46,307 |
|||||
|
General and administrative expenses as a percentage of home sale revenues |
4.5 % |
4.7 % |
-20 bps |
5.2 % |
4.8 % |
40 bps |
|||||
|
Marketing expenses |
$ 25,308 |
$ 26,240 |
$ (932) |
$ 103,330 |
$ 104,435 |
$ (1,105) |
|||||
|
Marketing expenses as a percentage of home sale revenues |
1.7 % |
1.8 % |
-10 bps |
1.8 % |
2.0 % |
-20 bps |
|||||
|
Commissions expenses |
$ 39,875 |
$ 36,797 |
$ 3,078 |
$ 140,716 |
$ 143,516 |
$ (2,800) |
|||||
|
Commissions expenses as a percentage of home sale revenues |
2.7 % |
2.6 % |
10 bps |
2.5 % |
2.8 % |
-30 bps |
|||||
|
Total selling, general and administrative expenses |
$ 131,797 |
$ 130,023 |
$ 1,774 |
$ 536,395 |
$ 493,993 |
$ 42,402 |
|||||
|
Total selling, general and administrative expenses as a percentage of home sale revenues |
8.9 % |
9.1 % |
-20 bps |
9.6 % |
9.7 % |
-10 bps |
|||||
|
Capitalized Interest |
|||||||
|
Three Months Ended |
Year Ended |
||||||
|
2022 |
2021 |
2022 |
2021 |
||||
|
(Dollars in thousands) |
|||||||
|
Homebuilding interest incurred |
$ 17,419 |
$ 18,651 |
$ 69,450 |
$ 72,500 |
|||
|
Less: Interest capitalized |
(17,419) |
(18,651) |
(69,450) |
(72,500) |
|||
|
Homebuilding interest expensed |
$ — |
$ — |
$ — |
$ — |
|||
|
Interest capitalized, beginning of period |
$ 63,583 |
$ 57,435 |
$ 58,054 |
$ 52,777 |
|||
|
Plus: Interest capitalized during period |
17,419 |
18,651 |
69,450 |
72,500 |
|||
|
Less: Previously capitalized interest included in home and land cost of sales |
(21,081) |
(18,032) |
(67,583) |
(67,223) |
|||
|
Interest capitalized, end of period |
$ 59,921 |
$ 58,054 |
$ 59,921 |
$ 58,054 |
|||
View original content to download multimedia:https://www.prnewswire.com/news-releases/mdc-holdings-announces-2022-fourth-quarter-and-full-year-results-301734045.html
SOURCE M.D.C. Holdings, Inc.
