M.D.C. Holdings Announces Third Quarter 2021 Results And Quarterly Dividend Increase
Donnerstag, 28.10.2021 06:00 von PR Newswire
PR Newswire
DENVER, Oct. 28, 2021
DENVER, Oct. 28, 2021 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC), one of the nation's leading homebuilders, announced results for the quarter ended September 30, 2021.
"MDC posted strong results in the third quarter of 2021, as the homebuilding industry continued to thrive," said Larry Mizel, MDC's Executive Chairman. "Home sale revenues grew 26% year-over-year thanks to double digit percentage increases to both deliveries and average selling price. Home sales gross margin rose 300 basis points year-over-year to 23.5%, as price increases more than offset cost inflation in the quarter. Net income came in at $146 million, or $1.99 per diluted share, representing growth of 48% and 44%, respectively, over the third quarter of 2020."
Mr. Mizel continued, "We continued to see healthy demand for our homes in the third quarter, as evidenced by our order pace of 4.1 homes per community per month. This was the second highest third quarter order pace for our company in the last 15 years and resulted in an 18% increase in the number of homes in backlog year-over-year. Average selling prices in backlog also trended higher as compared to last year, which should bode well for future margins."
Mr. Mizel concluded, "MDC is in a great position to close out 2021 with momentum thanks to our sizable backlog, great product profile and excellent capital position. We have laid the foundation for a significant increase in community count next year, with 37% more lots under control at the end of the third quarter than we had at the end of the third quarter of 2020. As a result, we believe the future is bright for MDC."
"On the heels of our expansion into Boise and Nashville, I am pleased to announce that MDC will soon be selling homes in Austin, Texas and Albuquerque, New Mexico," said David Mandarich, MDC's President and Chief Executive Officer. "We feel that these two markets have a great runway for new home construction growth, thanks to a consistent increase in good paying jobs, favorable affordability and an excellent overall quality of life. We believe Austin and Albuquerque will fit nicely into our current geographic footprint and expect these markets to respond well to our more affordably priced, well designed new home offerings."
Dividend Increase
The Company also announced that its board of directors has declared a quarterly cash dividend of fifty cents ($0.50) per share on the Company's common stock. This represents a 25% increase over the Company's previous quarterly dividend. The dividend will be paid on Wednesday, November 24, 2021 to shareholders of record on Wednesday, November 10, 2021.
Mr. Mizel said, "Given MDC's strong financial position and increased levels of profitability during the fiscal year, our board has decided to increase our quarterly dividend. Our industry leading dividend remains a priority as we look to return capital to our shareholders and deliver consistent shareholder returns over time."
2021 Third Quarter Highlights and Comparisons to 2020 Third Quarter
• | Home sale revenues increased 26% to $1.26 billion from $1.00 billion | |
° | Unit deliveries up 13% to 2,419 | |
° | Average selling price of deliveries up 12% to $519,900 | |
• | Homebuilding pretax income increased 62% to $165.2 million from $101.7 million | |
° | Gross margin from home sales increased 300 basis points to 23.5% from 20.5% | |
° | Selling, general and administrative expenses as a percentage of home sale revenues ("SG&A rate") improved by 80 basis points to 9.6% | |
° | Loss on debt retirement of $12.2 million in current quarter | |
• | Net income of $146.0 million, or $1.99 per diluted share, up 48% from $98.9 million or $1.38 per diluted share* | |
° | Effective tax rate of 24.3% vs. 21.5% | |
• | Dollar value of net new orders decreased 21% to $1.30 billion from $1.65 billion | |
° | Monthly sales absorption rate of 4.1 vs. 6.1 in prior period quarter | |
° | Second highest third quarter monthly sales absorption rate in the last 15 years | |
° | Average selling price of net orders up 16% | |
• | Dollar value of ending backlog up 38% to $4.24 billion from $3.08 billion | |
° | Unit backlog increased 18% to 7,658 | |
° | Average selling price of homes in backlog up 17% | |
* Per share amount for the 2020 third quarter has been adjusted for the 8% stock dividend declared and paid in the 2021 first quarter.
2021 Outlook and Other Selected Information1
• | Projected home deliveries for the 2021 fourth quarter between 2,700 and 3,000 | |
° | Average selling price for 2021 fourth quarter unit deliveries between $530,000 and $540,000 | |
° | Gross margin from home sales for the 2021 fourth quarter between 23.5% and 24.0% (excluding impairments and warranty adjustments) | |
• | Lots controlled of 36,666 at September 30, 2021, up 37% year-over-year | |
• | Quarterly cash dividend of fifty cents ($0.50) per share declared on October 25, 2021, up 25% from the prior quarter and 35% from the prior year (after adjusting for 8% stock dividend in March 2021) | |
° | 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 220,000 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 and Albuquerque. 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.
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-Q for the quarter ended September 30, 2021, 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 | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(Dollars in thousands, except per share amounts) | |||||||||||||||
Homebuilding: | |||||||||||||||
Home sale revenues | $ | 1,257,701 | $ | 1,000,549 | $ | 3,667,332 | $ | 2,584,392 | |||||||
Home cost of sales | (962,078) | (795,172) | (2,827,147) | (2,061,608) | |||||||||||
Gross profit | 295,623 | 205,377 | 840,185 | 522,784 | |||||||||||
Selling, general and administrative expenses | (120,116) | (103,632) | (363,970) | (285,269) | |||||||||||
Loss on debt retirement | (12,150) | — | (12,150) | — | |||||||||||
Interest and other income | 3,149 | 756 | 4,984 | 3,365 | |||||||||||
Other expense | (1,354) | (851) | (2,881) | (4,640) | |||||||||||
Homebuilding pretax income | 165,152 | 101,650 | 466,168 | 236,240 | |||||||||||
Financial Services: | |||||||||||||||
Revenues | 43,104 | 36,803 | 121,445 | 91,653 | |||||||||||
Expenses | (16,377) | (13,294) | (47,922) | (36,401) | |||||||||||
Other income (expense), net | 813 | 859 | 2,855 | (5,274) | |||||||||||
Financial services pretax income | 27,540 | 24,368 | 76,378 | 49,978 | |||||||||||
Income before income taxes | 192,692 | 126,018 | 542,546 | 286,218 | |||||||||||
Provision for income taxes | (46,738) | (27,080) | (131,550) | (66,124) | |||||||||||
Net income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 | |||||||
Comprehensive income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 2.07 | $ | 1.42 | $ | 5.83 | $ | 3.21 | |||||||
Diluted | $ | 1.99 | $ | 1.38 | $ | 5.62 | $ | 3.12 | |||||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 70,301,085 | 68,977,965 | 70,130,853 | 68,179,403 | |||||||||||
Diluted | 72,800,011 | 71,090,903 | 72,770,432 | 70,167,443 | |||||||||||
Dividends declared per share | $ | 0.40 | $ | 0.31 | $ | 1.17 | $ | 0.92 | |||||||
M.D.C. HOLDINGS, INC. Consolidated Balance Sheets (Unaudited) | |||||||
September 30, | December 31, | ||||||
(Dollars in thousands, except per share amounts) | |||||||
ASSETS | |||||||
Homebuilding: | |||||||
Cash and cash equivalents | $ | 761,715 | $ | 411,362 | |||
Restricted cash | 12,047 | 15,343 | |||||
Trade and other receivables | 125,556 | 72,466 | |||||
Inventories: | |||||||
Housing completed or under construction | 1,948,211 | 1,486,587 | |||||
Land and land under development | 1,464,603 | 1,345,643 | |||||
Total inventories | 3,412,814 | 2,832,230 | |||||
Property and equipment, net | 61,590 | 61,880 | |||||
Deferred tax asset, net | 16,301 | 11,454 | |||||
Prepaids and other assets | 105,860 | 101,685 | |||||
Total homebuilding assets | 4,495,883 | 3,506,420 | |||||
Financial Services: | |||||||
Cash and cash equivalents | 93,884 | 77,267 | |||||
Mortgage loans held-for-sale, net | 248,921 | 232,556 | |||||
Other assets | 35,716 | 48,677 | |||||
Total financial services assets | 378,521 | 358,500 | |||||
Total Assets | $ | 4,874,404 | $ | 3,864,920 | |||
LIABILITIES AND EQUITY | |||||||
Homebuilding: | |||||||
Accounts payable | $ | 154,376 | $ | 98,862 | |||
Accrued and other liabilities | 334,712 | 300,735 | |||||
Revolving credit facility | 10,000 | 10,000 | |||||
Senior notes, net | 1,607,658 | 1,037,391 | |||||
Total homebuilding liabilities | 2,106,746 | 1,446,988 | |||||
Financial Services: | |||||||
Accounts payable and accrued liabilities | 93,880 | 95,630 | |||||
Mortgage repurchase facility | 215,794 | 202,390 | |||||
Total financial services liabilities | 309,674 | 298,020 | |||||
Total Liabilities | 2,416,420 | 1,745,008 | |||||
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; 70,679,612 and 64,851,126 issued and | 707 | 649 | |||||
Additional paid-in-capital | 1,697,435 | 1,407,597 | |||||
Retained earnings | 759,842 | 711,666 | |||||
Total Stockholders' Equity | 2,457,984 | 2,119,912 | |||||
Total Liabilities and Stockholders' Equity | $ | 4,874,404 | $ | 3,864,920 | |||
M.D.C. HOLDINGS, INC. Consolidated Statement of Cash Flows (Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Operating Activities: | |||||||||||||||
Net income | $ | 145,954 | $ | 98,938 | $ | 410,996 | $ | 220,094 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Stock-based compensation expense | 7,965 | 8,608 | 26,832 | 18,536 | |||||||||||
Depreciation and amortization | 7,752 | 7,354 | 23,930 | 18,881 | |||||||||||
Net loss on marketable equity securities | — | — | — | 8,285 | |||||||||||
Gain on sale of other assets | (2,014) | — | (2,014) | — | |||||||||||
Loss on debt retirement | 12,150 | — | 12,150 | — | |||||||||||
Deferred income tax expense | (1,508) | 6,531 | (4,847) | 8,493 | |||||||||||
Net changes in assets and liabilities: | |||||||||||||||
Trade and other receivables | 1,576 | 5,933 | (55,529) | (17,512) | |||||||||||
Mortgage loans held-for-sale, net | (62,835) | 13,061 | (16,365) | 36,515 | |||||||||||
Housing completed or under construction | (75,407) | (153,440) | (461,105) | (387,269) | |||||||||||
Land and land under development | (155,141) | 13,792 | (118,762) | 108,710 | |||||||||||
Prepaids and other assets | 5,224 | (21,523) | 9,919 | (20,314) | |||||||||||
Accounts payable and accrued liabilities | 17,678 | (5,516) | 88,273 | 35,023 | |||||||||||
Net cash provided by (used in) operating activities | (98,606) | (26,262) | (86,522) | 29,442 | |||||||||||
Investing Activities: | |||||||||||||||
Purchases of marketable securities | — | — | — | (10,804) | |||||||||||
Sales of marketable securities | — | — | — | 59,266 | |||||||||||
Proceeds from sale of other assets | 2,014 | — | 2,014 | — | |||||||||||
Purchases of property and equipment | (9,581) | (7,917) | (23,028) | (20,885) | |||||||||||
Net cash provided by (used in) investing activities | (7,567) | (7,917) | (21,014) | 27,577 | |||||||||||
Financing Activities: | |||||||||||||||
Payments on mortgage repurchase facility, net | 51,113 | (11,233) | 13,404 | (18,755) | |||||||||||
Payments on homebuilding line of credit, net | — | — | — | (5,000) | |||||||||||
Repayment of senior notes | (136,394) | — | (136,394) | (250,000) | |||||||||||
Proceeds from issuance of senior notes | 346,937 | — | 694,662 | 298,050 | |||||||||||
Dividend payments | (28,276) | (21,374) | (83,189) | (63,056) | |||||||||||
Payments of deferred financing costs | (901) | — | (1,720) | — | |||||||||||
Issuance of shares under stock-based compensation programs, net | (19) | 28,642 | (15,553) | 29,974 | |||||||||||
Net cash provided by (used in) financing activities | 232,460 | (3,965) | 471,210 | (8,787) | |||||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 126,287 | (38,144) | 363,674 | 48,232 | |||||||||||
Cash, cash equivalents and restricted cash: | |||||||||||||||
Beginning of period | 741,359 | 560,588 | 503,972 | 474,212 | |||||||||||
End of period | $ | 867,646 | $ | 522,444 | $ | 867,646 | $ | 522,444 | |||||||
M.D.C. HOLDINGS, INC. Consolidated Statement of Cash Flows (Continued) (Unaudited) | |||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||||||||||
Homebuilding: | |||||||||||||||
Cash and cash equivalents | $ | 761,715 | $ | 432,277 | $ | 761,715 | $ | 432,277 | |||||||
Restricted cash | 12,047 | 19,732 | 12,047 | 19,732 | |||||||||||
Financial Services: | - | ||||||||||||||
Cash and cash equivalents | 93,884 | 70,435 | 93,884 | 70,435 | |||||||||||
Total cash, cash equivalents and restricted cash | $ | 867,646 | $ | 522,444 | $ | 867,646 | $ | 522,444 | |||||||
New Home Deliveries | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||||||||||||
Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
West | 1,376 | $ | 729,777 | $ | 530.4 | 1,135 | $ | 552,319 | $ | 486.6 | 21 | % | 32 | % | 9 | % | ||||||||||||||
Mountain | 666 | 379,041 | 569.1 | 677 | 347,095 | 512.7 | (2) | % | 9 | % | 11 | % | ||||||||||||||||||
East | 377 | 148,883 | 394.9 | 335 | 101,135 | 301.9 | 13 | % | 47 | % | 31 | % | ||||||||||||||||||
Total | 2,419 | $ | 1,257,701 | $ | 519.9 | 2,147 | $ | 1,000,549 | $ | 466.0 | 13 | % | 26 | % | 12 | % | ||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||||||||||||
Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average Price | Homes | Home Sale Revenues | Average | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
West | 4,324 | $ | 2,194,071 | $ | 507.4 | 3,023 | $ | 1,447,934 | $ | 479.0 | 43 | % | 52 | % | 6 | % | ||||||||||||||
Mountain | 1,989 | 1,104,391 | 555.2 | 1,720 | 886,619 | 515.5 | 16 | % | 25 | % | 8 | % | ||||||||||||||||||
East | 1,006 | 368,870 | 366.7 | 851 | 249,839 | 293.6 | 18 | % | 48 | % | 25 | % | ||||||||||||||||||
Total | 7,319 | $ | 3,667,332 | $ | 501.1 | 5,594 | $ | 2,584,392 | $ | 462.0 | 31 | % | 42 | % | 8 | % | ||||||||||||||
Net New Orders | |||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||||
Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average | Monthly Absorption | Homes | Dollar | Average | Monthly Absorption Rate | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
West | 1,437 | $ | 783,072 | $ | 544.9 | 4.91 | 1,955 | $ | 932,111 | $ | 476.8 | 6.58 | (26) | % | (16) | % | 14 | % | (25) | % | |||||||||||||||||
Mountain | 505 | 323,018 | 639.6 | 2.99 | 1,051 | 542,375 | 516.1 | 5.70 | (52) | % | (40) | % | 24 | % | (48) | % | |||||||||||||||||||||
East | 457 | 199,985 | 437.6 | 3.67 | 509 | 176,896 | 347.5 | 5.39 | (10) | % | 13 | % | 26 | % | (32) | % | |||||||||||||||||||||
Total | 2,399 | $ | 1,306,075 | $ | 544.4 | 4.10 | 3,515 | $ | 1,651,382 | $ | 469.8 | 6.10 | (32) | % | (21) | % | 16 | % | (33) | % | |||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||||
Homes | Dollar Value | Average Price | Monthly Absorption Rate * | Homes | Dollar Value | Average | Monthly Absorption Rate * | Homes | Dollar | Average | Monthly Absorption Rate | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
West | 4,814 | $ | 2,613,279 | $ | 542.8 | 5.42 | 4,646 | $ | 2,265,557 | $ | 487.6 | 5.47 | 4 | % | 15 | % | 11 | % | (1) | % | |||||||||||||||||
Mountain | 2,222 | 1,375,442 | 619.0 | 4.35 | 2,502 | 1,309,176 | 523.3 | 4.39 | (11) | % | 5 | % | 18 | % | (1) | % | |||||||||||||||||||||
East | 1,286 | 558,716 | 434.5 | 3.91 | 1,156 | 393,913 | 340.8 | 4.23 | 11 | % | 42 | % | 27 | % | (8) | % | |||||||||||||||||||||
Total | 8,322 | $ | 4,547,437 | $ | 546.4 | 4.82 | 8,304 | $ | 3,968,646 | $ | 477.9 | 4.91 | — | % | 15 | % | 14 | % | (2) | % | |||||||||||||||||
*Calculated as total net new orders 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, | % | |||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||
West | 104 | 102 | 2 | % | 98 | 99 | (1) | % | 99 | 94 | 5 | % | ||||||||||||||||||
Mountain | 56 | 61 | (8) | % | 56 | 62 | (10) | % | 57 | 63 | (10) | % | ||||||||||||||||||
East | 43 | 31 | 39 | % | 42 | 32 | 31 | % | 37 | 30 | 23 | % | ||||||||||||||||||
Total | 203 | 194 | 5 | % | 196 | 193 | 2 | % | 193 | 187 | 3 | % | ||||||||||||||||||
Backlog | ||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||
2021 | 2020 | % Change | ||||||||||||||||||||||||||||
Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | Homes | Dollar Value | Average Price | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||
West | 4,200 | $ | 2,295,570 | $ | 546.6 | 3,646 | $ | 1,743,547 | $ | 478.2 | 15 | % | 32 | % | 14 | % | ||||||||||||||
Mountain | 2,251 | $ | 1,408,945 | $ | 625.9 | 1,993 | $ | 1,033,264 | $ | 518.4 | 13 | % | 36 | % | 21 | % | ||||||||||||||
East | 1,207 | $ | 537,983 | $ | 445.7 | 872 | $ | 298,965 | $ | 342.9 | 38 | % | 80 | % | 30 | % | ||||||||||||||
Total | 7,658 | $ | 4,242,498 | $ | 554.0 | 6,511 | $ | 3,075,776 | $ | 472.4 | 18 | % | 38 | % | 17 | % | ||||||||||||||
Homes Completed or Under Construction (WIP lots) | ||||||||
September 30, | % | |||||||
2021 | 2020 | Change | ||||||
Unsold: | ||||||||
Completed | 21 | 74 | (72) | % | ||||
Under construction | 345 | 129 | 167 | % | ||||
Total unsold started homes | 366 | 203 | 80 | % | ||||
Sold homes under construction or completed | 6,468 | 4,540 | 42 | % | ||||
Model homes under construction or completed | 490 | 505 | (3) | % | ||||
Total homes completed or under construction | 7,324 | 5,248 | 40 | % | ||||
Lots Owned and Optioned (including homes completed or under construction) | ||||||||||||||||||||
September 30, 2021 | September 30, 2020 | |||||||||||||||||||
Lots Owned | Lots Optioned | Total | Lots Owned | Lots Optioned | Total | Total % Change | ||||||||||||||
West | 14,209 | 5,811 | 20,020 | 10,140 | 3,280 | 13,420 | 49 | % | ||||||||||||
Mountain | 6,258 | 4,236 | 10,494 | 6,217 | 2,708 | 8,925 | 18 | % | ||||||||||||
East | 3,824 | 2,328 | 6,152 | 2,716 | 1,769 | 4,485 | 37 | % | ||||||||||||
Total | 24,291 | 12,375 | 36,666 | 19,073 | 7,757 | 26,830 | 37 | % | ||||||||||||
Selling, General and Administrative Expenses | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
General and administrative expenses | $ | 59,935 | $ | 45,980 | $ | 13,955 | $ | 179,056 | $ | 131,488 | $ | 47,568 | |||||||||||
General and administrative expenses as a percentage | 4.8 | % | 4.6 | % | 20 bps | 4.9 | % | 5.1 | % | -20 bps | |||||||||||||
Marketing expenses | $ | 25,660 | $ | 24,725 | $ | 935 | $ | 78,195 | $ | 68,828 | $ | 9,367 | |||||||||||
Marketing expenses as a percentage of home sale | 2.0 | % | 2.5 | % | -50 bps | 2.1 | % | 2.7 | % | -60 bps | |||||||||||||
Commissions expenses | $ | 34,521 | $ | 32,927 | $ | 1,594 | $ | 106,719 | $ | 84,953 | $ | 21,766 | |||||||||||
Commissions expenses as a percentage of home sale | 2.7 | % | 3.3 | % | -60 bps | 2.9 | % | 3.3 | % | -40 bps | |||||||||||||
Total selling, general and administrative expenses | $ | 120,116 | $ | 103,632 | $ | 16,484 | $ | 363,970 | $ | 285,269 | $ | 78,701 | |||||||||||
Total selling, general and administrative expenses as | 9.6 | % | 10.4 | % | -80 bps | 9.9 | % | 11.0 | % | -110 bps | |||||||||||||
Capitalization of Interest | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Homebuilding interest incurred | $ | 19,108 | $ | 14,799 | $ | 53,849 | $ | 46,427 | |||||||
Less: Interest capitalized | (19,108) | (14,799) | (53,849) | (46,427) | |||||||||||
Homebuilding interest expensed | $ | — | $ | — | $ | — | $ | — | |||||||
Interest capitalized, beginning of period | $ | 54,351 | $ | 56,929 | $ | 52,777 | $ | 55,310 | |||||||
Plus: Interest capitalized during period | 19,108 | 14,799 | 53,849 | 46,427 | |||||||||||
Less: Previously capitalized interest included in home cost of sales | (16,024) | (16,511) | (49,191) | (46,520) | |||||||||||
Interest capitalized, end of period | $ | 57,435 | $ | 55,217 | $ | 57,435 | $ | 55,217 | |||||||
SOURCE M.D.C. Holdings, Inc.