M.D.C. Holdings Announces 2012 Fourth Quarter Results

            M.D.C. Holdings Announces 2012 Fourth Quarter Results

PR Newswire

DENVER, Jan. 31, 2013

DENVER, Jan. 31, 2013 /PRNewswire/ --M.D.C. Holdings, Inc. (NYSE: MDC)
announced results for the quarter ended December 31, 2012.

2012 Fourth Quarter Highlights and Comparisons to 2011 Fourth Quarter

  oNet income of $29.7 million, or $0.59 per diluted share vs. net loss of
    $18.8 million, or $0.40 per diluted share

       o2011 fourth quarter included $20.2 million charge related to debt
         extinguishment

  oNet new orders of 869 homes, up 66%
  oBacklog of 1,645 homes, up 58%; backlog dollar value up 76% to $579.0
    million
  oHome sale revenues of $389.1 million, up 69%
  oHomes closed of 1,221 homes, up 54%
  oGross margin from home sales of 16.7% vs. 14.9%

       oImprovement of 120 basis points vs. 15.5% in 2012 third quarter
       oExcluding impairments of $1.1 million, gross margin from home sales
         was up 150 basis points from the 2012 third quarter to 17.0%*

  oSG&A expenses as a percentage of home sale revenues of 12.6% vs. 15.6%, a
    300 basis point improvement
  oHomebuilding operations pretax income of $22.2 million vs. loss of $18.5
    million
  oFinancial services segment pretax profit of $7.7 million vs. loss of $1.3
    million
  oAcquired 2,335 lots in 67 communities, including 42 new communities

2012 Full Year Highlights and Comparisons to 2011 Full Year

  oNet income of $62.7 million, or $1.28 per diluted share vs. net loss of
    $98.4 million, or $2.12 per diluted share

       o2011 included $38.8 million charge related to debt extinguishment

  oNet new orders of 4,342 homes, up 50%
  oHome sale revenues of $1.15 billion, up 43%
  oHomes closed of 3,740 homes, up 35%
  oGross margin from home sales of 15.4% vs. 13.1%
  oSG&A expenses as a percentage of home sale revenues of 14.5% vs. 22.2%, a
    770 basis point improvement

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "I am
pleased to announce a fourth quarter profit of $0.59 per share, our fourth
consecutive quarterly operating profit, with net income improving by almost
$50 million over the prior year. For the full year, our net income improved by
more than $160 million. Our favorable results were attributable to
significantly improved operating profits from both our homebuilding and
financial services segments, which benefited from improving market conditions
and our operational improvements, leading to increased volume and margins for
both businesses."

Mr. Mizel continued, "During the fourth quarter, we continued to see signs of
improving demand. While historically our sales pace has declined from the
third to the fourth quarter, in 2012 it was almost unchanged, leading to a
year-over-year improvement in our fourth quarter net home orders of 66%. The
strengthening sales pace has allowed us to raise prices and reduce incentives,
leading to significant improvements in our gross profit margin on both a
sequential and year-over-year basis. We believe that our focus on the balance
between price and sales pace will continue to be critical to our success in
2013, as we expect to see pressure on land and building costs based on
improving demand. In addition, we believe our unit backlog, which ended the
quarter up 58% from a year ago, will help drive the revenue increases we need
to improve our operating leverage in future periods."

Mizel concluded, "Given the expanding volume for our business, land
acquisition remains a key Company focus. During the fourth quarter, we
purchased more than 2,300 lots, exceeding our combined acquisition activity
for the previous four quarters. These land purchases drove a 10% increase in
our lot supply from the end of the third quarter and should help us to grow
our community count in the first half of 2013. After increasing our investment
in homebuilding assets in the fourth quarter, we recently raised $250 million
in the form of 30-year senior unsecured notes, in support of the long-term
growth and continued financial strength and liquidity of our Company."

Homebuilding

Home sale revenues for the 2012 fourth quarter increased 69% to $389.1 million
compared to $230.7 million for the prior year period. The increase in
revenues resulted primarily from a 54% increase in homes closed to 1,221 homes
as compared to 792 in the prior year. The Company's average selling price for
homes closed was $318,700, up 9% year-over-year compared to $291,300 for the
prior year period, primarily due to increased prices and lower incentives in
many of our markets, coupled with a mix shift in closings to more desirable
communities within individual markets.

Gross margin from home sales for the 2012 fourth quarter increased to 16.7%
from 14.9% for the year-earlier period. On a sequential basis, our 2012 fourth
quarter gross margin from home sales was up 120 basis points as compared to
15.5% for the 2012 third quarter and up 150 basis points to 17.0% excluding
$1.1 million of inventory impairments*. Both increases were attributable to
the Company's increased pricing and decreased incentives in most markets for
much of 2012. Additionally, the year-over-year and sequential increases for
homes started without a buyer under contract were particularly strong, as the
available resale inventory in many of our markets remained at low levels.

Our 2012 fourth quarter SG&A expenses were $49.2 million, compared to $35.9
million for the 2011 fourth quarter. The increase in SG&A was attributable to
a $7.5 million increase in general and administrative expenses, as the 2011
fourth quarter benefited from sizeable reductions to our bonus and legal
accruals, which did not recur in the 2012 fourth quarter. Additionally, the
Company's commissions expense increased by $4.9 million, attributable to our
increase in home sale revenues. Despite the increased SG&A expenses, the
Company's operating leverage improved because of strong top-line growth, with
SG&A expenses as a percentage of home sales revenues decreasing 300 basis
points to 12.6% for the 2012 fourth quarter versus 15.6% for the same period
in 2011.

Net new orders for the 2012 fourth quarter increased 66% to 869 homes,
compared to 523 homes during the same period in 2011. The Company's monthly
sales absorption rate for the 2012 fourth quarter rose 98% to 1.86 per
community, compared to 0.94 per community for the 2011 fourth quarter. The
Company's cancellation rate for the 2012 fourth quarter was 24% versus 45% in
the prior year fourth quarter and 27% in the 2012 third quarter.

The Company ended the 2012 fourth quarter with 1,645 homes in backlog, with an
estimated sales value of $579.0 million, compared with a backlog of 1,043
homes with an estimated sales value of $329.9 million at December 31, 2011.

Financial Services

Income before taxes from our financial services operations for the 2012 fourth
quarter was $7.7 million, compared to a loss of $1.3 million for the 2011
fourth quarter. The increase in pretax income primarily reflected a $7.7
million increase in our mortgage segment's pretax results from a loss of $0.4
million in the 2011 fourth quarter to income of $7.3 million for the 2012
fourth quarter. The improvement in our mortgage profitability was driven
primarily by year-over-year increases in the gains on sales of mortgage loans
and the corresponding servicing rights, and higher origination income. These
increases were due largely to favorable mortgage market conditions, increases
in the volume of loans locked and originated, and a decrease in the level of
special financing programs that we offered our homebuyers. Additionally,
mortgage operations benefited from a $4.0 million decrease in the expense
recognized for mortgage loan losses.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American
dream for more than 170,000 homebuyers. 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 Francisco Bay
Area, Washington D.C., Baltimore, Philadelphia, Jacksonville and Seattle. 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 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) changes in the market value of
the Company's investments in marketable securities; (5) uncertainty in the
mortgage lending industry, including repurchase requirements associated with
HomeAmerican'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 the Company 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; (12) slow growth initiatives; (13) building
moratoria; (14) governmental regulation, including the interpretation of tax,
labor and environmental laws; (15) terrorist acts and other acts of war; and
(16)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 year ended
December 31, 2012, 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 webcasts
should be consulted.

*Please see "Reconciliation of Non-GAAP Financial Measures" at the end of this
release.



M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
                           Three Months              Year Ended
                           Ended December 31,        December 31,
                           2012         2011         2012         2011
                           (Dollars in thousands, except per share amounts)
Homebuilding:              (Unaudited)
 Home sale revenues        $  389,141  $  230,732  $ 1,150,998  $  805,164
 Land sale revenues        1,724        8,360        5,144        11,859
      Total home sale and  390,865      239,092      1,156,142    817,023
      land revenues
 Home cost of sales        (323,179)    (196,140)    (973,120)    (686,661)
 Land cost of sales        (1,613)      (8,314)      (4,823)      (10,796)
 Inventory impairments     (1,105)      (283)        (1,105)      (12,965)
      Total cost of sales  (325,897)    (204,737)    (979,048)    (710,422)
          Gross margin     64,968       34,355       177,094      106,601
 Selling, general and      (49,160)     (35,934)     (167,295)    (179,105)
 administrative expenses
 Interest income           6,747        6,631        23,398       26,068
 Interest expense          -            (1,200)      (808)        (20,842)
 Other income (expense)    (364)        (22,365)     228          (43,350)
          Homebuilding
          pretax income    22,191       (18,513)     32,617       (110,628)
          (loss)
Financial Services:
 Revenues                  14,908       8,111        46,881       26,086
 Expenses                  (8,186)      (10,244)     (21,645)     (26,306)
 Interest and other        938          870          3,262        3,376
 income
          Financial
          services pretax  7,660        (1,263)      28,498       3,156
          income (loss)
Income (loss) before       29,851       (19,776)     61,115       (107,472)
income taxes
Benefit (provision) for    (181)        955          1,584        9,082
income taxes
Net income (loss)          $          $           $          $ 
                           29,670       (18,821)     62,699      (98,390)
Other comprehensive
income (loss):
 Unrealized gain related
 to available-for-sale     1,133        6,781        12,078       (12,124)
 securities
Comprehensive income       $          $           $          $ (110,514)
(loss)                     30,803       (12,040)     74,777
Earnings (loss) per
share:
 Basic                     $        $         $        $   
                           0.60         (0.40)       1.29        (2.12)
 Diluted                   $        $         $        $   
                           0.59         (0.40)       1.28        (2.12)
Weighted Average Common
Shares Outstanding:
 Basic                     48,140,725   47,011,311   47,660,629   46,796,334
 Diluted                   48,865,996   47,011,311   48,064,839   46,796,334
Dividends declared per     $        $        $        $    
share                      1.25         0.25         2.00        1.00



M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
                                             December 31,
                                             2012              2011
                                             (Dollars in thousands, except per
                                             share amounts)
ASSETS                                       (Unaudited)
Homebuilding:
Cash and cash equivalents                    $    129,535   $    316,418
Marketable securities                        519,465           485,434
Restricted cash                              1,859             667
Trade and other receivables                  28,163            21,593
Inventories:
Housing completed or under construction      512,949           300,714
Land and land under development              489,572           505,338
 Total inventories                       1,002,521         806,052
Property and equipment, net                  33,125            36,277
Deferred tax asset, net of valuation
allowance of $248,306 and $281,178 at        -                 -
December 31, 2012 and 2011, respectively
Prepaid expenses and other assets            44,777            50,423
Total homebuilding assets                    1,759,445         1,716,864
Financial Services:
Cash and cash equivalents                    30,560            26,943
Marketable securities                        32,473            34,509
Mortgage loans held-for-sale, net            119,953           78,335
Prepaid expenses and other assets            3,010             2,074
Total financial services assets              185,996           141,861
 Total Assets                           $  1,945,441    $  1,858,725
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable                            $     73,055  $    
                                                               25,645
Accrued liabilities                          118,456           119,188
Senior notes, net                            744,842           744,108
Total homebuilding liabilities               936,353           888,941
Financial Services:
Accounts payable and accrued liabilities     51,864            52,446
Mortgage repurchase facility                 76,327            48,702
Total financial services liabilities         128,191           101,148
 Total Liabilities                      1,064,544         990,089
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;48,698,757 issued and
outstanding at December 31, 2012 and         487               480
48,017,108 and 47,957,196 issued and
outstanding, respectively, at December 31,
2011
Additional paid-in-capital                   896,861           863,128
Retained earnings (accumulated deficit)      (21,289)          12,927
Accumulated other comprehensive income       4,838             (7,240)
(loss)
Treasury stock, at cost; no shares at
December 31, 2012 and 59,912at December     -                 (659)
31, 2011
Total Stockholders' Equity                   880,897           868,636
Total Liabilities and Stockholders' Equity   $  1,945,441    $  1,858,725



M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
                          Three Months             Year Ended
                          Ended December 31,       December 31,
                          2012         2011          2012         2011
                          (Dollars in thousands)
                          (Unaudited)
Operating Activities:
Net income (loss)         $  29,670  $  (18,821)  $  62,699  $  (98,390)
Adjustments to reconcile
net income (loss) to net
cash provided by (used
in) operating activities:
 Loss on
extinguishment of senior  -            20,236        -            38,795
notes
Stock-based compensation  3,597        3,340         16,225       15,432
expense
Depreciation and          1,058        1,658         4,766        6,371
amortization
Inventory impairments and
write-offs of land option 1,429        2,126         1,843        20,009
deposits
Amortization of (premium)
discount on marketable    317          (333)         596          1,271
debt securities
 Net changes in assets
and liabilities:
 Restricted cash     225          15            (1,192)      (247)
 Trade and other     7,462        (4,036)       (6,223)      12,078
receivables
 Mortgage loans      (33,305)     (36,034)      (41,618)     (13,221)
held-for-sale
 Housing completed   (9,160)      32,616        (212,154)    86,477
or under construction
 Land and land under (97,092)     11,773        15,314       (93,381)
development
 Prepaid expenses    4,203        12,901        3,650        10,119
and other assets
 Accounts payable    23,410       (1,289)       47,473       (9,012)
 Accrued liabilities 9,822        (23,693)      (198)        (56,585)
Net cash provided by
(used in) operating       (58,364)     459           (108,819)    (80,284)
activities
Investing Activities:
Purchase of marketable    (81,534)     (42,344)      (478,701)    (330,968)
securities
Maturity of marketable    2,250        38,980        108,250      492,051
securities
Sale of marketable        64,882       26,606        349,938      275,038
securities
Purchase of property and  (310)        (140)         (1,268)      (31,857)
equipment and other
Net cash provided by
(used in) investing       (14,712)     23,102        (21,781)     404,264
activities
Financing Activities:
Extinguishment of senior -            (282,821)     -            (537,724)
notes
Payments on mortgage      (58,873)     (34,918)      (196,402)    (91,372)
repurchase facility
Advances on mortgage      88,312       72,912        224,027      114,640
repurchase facility
Dividend payments         (60,869)     (11,872)      (96,915)     (47,432)
Proceeds from exercise of 804          8,998         16,624       9,044
stock options
Net cash provided by
(used in) financing       (30,626)     (247,701)     (52,666)     (552,844)
activities
Net increase (decrease)
in cash and cash          (103,702)    (224,140)     (183,266)    (228,864)
equivalents
Cash and cash
equivalents:
 Beginning of period 263,797      567,501       343,361      572,225
 End of period       $ 160,095   $ 343,361    $ 160,095   $ 343,361





M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
New Home Deliveries:
            Three Months Ended December 31,
            2012                          2011                         % Change
            Homes  Dollar    Average  Homes  Dollar   Average  Homes  Dollar  Average
                     Value     Price             Value    Price             Value   Price
            (Dollars in thousands)
Arizona    185      $       $ 223.6  122      $        $ 188.1  52%      80%      19%
                     41,358                       22,950
California 224      76,722     342.5     104      30,934    297.4     115%     148%     15%
Nevada     165      37,990     230.2     108      19,683    182.3     53%      93%      26%
Washington  81       25,014     308.8     46       11,798    256.5     76%      112%     20%
West       655      181,084    276.5     380      85,365    224.6     72%      112%     23%
Colorado   268      96,493     360.0     211      71,679    339.7     27%      35%      6%
Utah       75       22,132     295.1     47       12,576    267.6     60%      76%      10%
Mountain   343      118,625    345.8     258      84,255    326.6     33%      41%      6%
Maryland   77       31,523     409.4     54       24,806    459.4     43%      27%      -11%
Virginia   84       42,672     508.0     60       26,683    444.7     40%      60%      14%
Florida    62       15,237     245.8     36       8,499     236.1     72%      79%      4%
Illinois   -        -          -         4        1,124     281.0     N/M      N/M      N/M
East        223      89,432     401.0     154      61,112    396.8     45%      46%      1%
Total      1,221    $        $ 318.7  792      $         $ 291.3  54%      69%      9%
                     389,141                      230,732
            Year Ended December 31,
            2012                          2011                         % Change
            Homes  Dollar    Average  Homes  Dollar   Average  Homes  Dollar  Average
                     Value     Price             Value    Price             Value   Price
            (Dollars in thousands)
Arizona    603      $        $ 217.7  423      $        $ 189.4  43%      64%      15%
                     131,278                      80,133
California 543      184,490    339.8     272      83,488    306.9     100%     121%     11%
Nevada     604      125,725    208.2     331      61,833    186.8     82%      103%     11%
Washington  247      73,074     295.8     146      38,710    265.1     69%      89%      12%
West       1,997    514,567    257.7     1,172    264,164   225.4     70%      95%      14%
Colorado   807      289,416    358.6     748      251,935   336.8     8%       15%      6%
Utah       226      64,006     283.2     225      61,761    274.5     0%       4%       3%
Mountain   1,033    353,422    342.1     973      313,696   322.4     6%       13%      6%
Maryland   233      99,476     426.9     207      90,312    436.3     13%      10%      -2%
Virginia   280      135,067    482.4     211      90,844    430.5     33%      49%      12%
Florida    195      47,915     245.7     190      43,450    228.7     3%       10%      7%
Illinois   2        551        275.5     9        2,698     299.8     N/M      N/M      N/M
East        710      283,009    398.6     617      227,304   368.4     15%      25%      8%
Total      3,740    $         $ 307.8  2,762    $         $ 291.5  35%      43%      6%
                     1,150,998                     805,164



M.D.C. HOLDINGS, INC. 
Homebuilding Operational Data
Net New Orders:
            Three Months Ended December 31,
            2012                          2011                        % Change
            Homes  Dollar    Average  Homes  Dollar  Average  Homes  Dollar  Average
                     Value     Price             Value   Price             Value   Price
            (Dollars in thousands)
Arizona    56       $       $ 222.1  77       $      $ 171.6  -27%     -6%      29%
                     12,436                       13,216
California 143      49,641     347.1     64       19,419   303.4     123%     156%     14%
Nevada     130      31,271     240.5     62       10,755   173.5     110%     191%     39%
Washington  56       18,285     326.5     56       15,113   269.9     0%       21%      21%
West       385      111,633    290.0     259      58,503   225.9     49%      91%      28%
Colorado   247      87,289     353.4     148      50,111   338.6     67%      74%      4%
Utah       36       10,589     294.1     10       2,606    260.6     260%     306%     13%
Mountain   283      97,878     345.9     158      52,717   333.7     79%      86%      4%
Maryland   68       26,812     394.3     26       11,653   448.2     162%     130%     -12%
Virginia   86       43,004     500.0     39       20,434   523.9     121%     110%     -5%
Florida    47       12,991     276.4     38       9,253    243.5     24%      40%      14%
Illinois   -        -          -         3        802      267.3     N/M      N/M      N/M
East        201      82,807     412.0     106      42,142   397.6     90%      96%      4%
Total      869      $        $ 336.4  523      $       $ 293.2  66%      91%      15%
                     292,318                      153,362
            Year Ended December 31,
            2012                          2011                        % Change
            Homes  Dollar    Average  Homes  Dollar  Average  Homes  Dollar  Average
                     Value     Price             Value   Price             Value   Price
            (Dollars in thousands)
Arizona    625      $        $ 219.5  467      $      $ 186.8  34%      57%      17%
                     137,159                      87,223
California 654      225,174    344.3     311      92,760   298.3     110%     143%     15%
Nevada     652      146,094    224.1     411      75,011   182.5     59%      95%      23%
Washington  272      82,325     302.7     124      32,577   262.7     119%     153%     15%
West       2,203    590,752    268.2     1,313    287,571  219.0     68%      105%     22%
Colorado   1,044    364,056    348.7     708      240,671  339.9     47%      51%      3%
Utah       239      71,080     297.4     224      61,760   275.7     7%       15%      8%
Mountain   1,283    435,136    339.2     932      302,431  324.5     38%      44%      5%
Maryland   303      129,891    428.7     194      87,279   449.9     56%      49%      -5%
Virginia   362      179,744    496.5     244      109,103  447.1     48%      65%      11%
Florida    189      46,493     246.0     196      45,592   232.6     -4%      2%       6%
Illinois   2        550        275.0     8        2,279    284.9     N/M      N/M      N/M
East        856      356,678    416.7     642      244,253  380.5     33%      46%      10%
Total      4,342    $         $ 318.4  2,887    $       $ 289.0  50%      66%      10%
                     1,382,566                     834,255



M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
Active Subdivisions:
                          December 31,
                          2012     2011   % Change
Arizona                  12       25     -52%
California               13       17     -24%
Nevada                   12       20     -40%
Washington                10       9      11%
West                     47       71     -34%
Colorado                 42       47     -11%
Utah                     14       21     -33%
Mountain                 56       68     -18%
Maryland                 18       16     13%
Virginia                 12       15     -20%
Florida                  15       17     -12%
East                      45       48     -6%
Total                    148      187    -21%
Average for quarter ended 156      185    -16%
Average for year ended    173      171    1%



Backlog:
            December 31,
            2012                        2011                         % Change
            Homes  Dollar  Average  Homes  Dollar   Average  Homes  Dollar  Average
                     Value   Price             Value    Price             Value   Price
            (Dollars in thousands)
Arizona    150      $      $        128      $       $        17%      30%      11%
                     35,064   233.8             26,875   210.0
California 229      78,400   342.4     118      37,341    316.4     94%      110%     8%
Nevada     204      50,533   247.7     156      29,969    192.1     31%      69%      29%
Washington  79       26,761   338.7     54       14,958    277.0     46%      79%      22%
West       662      190,758  288.2     456      109,143   239.3     45%      75%      20%
Colorado   470      174,280  370.8     233      84,519    362.7     102%     106%     2%
Utah       81       25,058   309.4     68       19,253    283.1     19%      30%      9%
Mountain   551      199,338  361.8     301      103,772   344.8     83%      92%      5%
Maryland   183      79,162   432.6     113      48,987    433.5     62%      62%      0%
Virginia   185      92,303   498.9     103      49,953    485.0     80%      85%      3%
Florida    64       17,452   272.7     70       18,020    257.4     -9%      -3%      6%
East        432      188,917  437.3     286      116,960   409.0     51%      62%      7%
Total      1,645    $       $        1,043    $        $        58%      76%      11%
                     579,013  352.0             329,875  316.3



M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
Homes Completed or Under Construction (WIP lots):
                                                  December 31,
                                                  2012   2011   % Change
Unsold
Completed                                         221    146    51%
Under construction - frame                        421    249    69%
Under construction - foundation                  183    79     132%
Total unsold started homes                       825    474    74%
Sold homes under construction or completed        1,147  638    80%
Model homes                                      221    226    -2%
Total homes completed or under construction       2,193  1,338  64%

Lots Owned and Optioned (including homes completed or under construction):
            December 31, 2012                 December 31, 2011
            Lots       Lots Optioned  Total   Lots       Lots Optioned  Total
            Owned                             Owned
Arizona    1,763      80             1,843   955        92             1,047
California 1,080      -              1,080   1,384      -              1,384
Nevada     1,226      40             1,266   1,191      33             1,224
Washington  472        162            634     385        147            532
West        4,541      282            4,823   3,915      272            4,187
Colorado   3,335      508            3,843   3,220      321            3,541
Utah       532        13             545     607        17             624
Mountain    3,867      521            4,388   3,827      338            4,165
Maryland   577        315            892     564        598            1,162
Virginia   553        263            816     678        173            851
Florida    365        159            524     330        340            670
Illinois   -          -              -       125        -              125
East        1,495      737            2,232   1,697      1,111          2,808
Total      9,903      1,540          11,443  9,439      1,721          11,160

M.D.C. HOLDINGS, INC. 
Reconciliation of Non-GAAP Financial Measures
Gross margin from home sales before impairments is a non-GAAP financial
measure. We believe this information is meaningful as it isolates the impact
that inventory impairments has on our Gross Margin from Home Sales and permits
investors to make better comparisons with our competitors, who also break out
and adjust gross margins in a similar fashion. 

            Three Months Ended                Year Ended
            December  Gross  December  Gross  December  Gross  December  Gross
            31, 2012  Margin  31, 2011  Margin  31, 2012  Margin  31, 2011  Margin
                      %                %                %                %
            (Dollars in thousands)
Gross       $              $              $              $   
Margin              16.6%           14.4%            15.3%            13.0%
            64,968            34,355            177,094           106,601
 Less:
Land Sales  (1,724)           (8,360)           (5,144)           (11,859)
Revenue
 Add: Land
Cost of     1,613             8,314             4,823             10,796
Sales
Gross       $              $              $              $   
Margin from         16.7%           14.9%            15.4%            13.1%
Home Sales  64,857            34,309            176,773           105,538
 Add:
Inventory   1,105             283               1,105             12,965
Impairments
Gross
Margin from $              $              $              $   
Home Sales          17.0%           15.0%            15.5%            14.7%
before      65,962            34,592            177,878           118,503
Impairments



SOURCE M.D.C. Holdings, Inc.

Website: http://www.mdcholdings.com
Contact: Robert N. Martin, Vice President of Finance, +1-720-977-3431,
bob.martin@mdch.com
 
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