Exhibit 99.1

NEWS BULLETIN

M.D.C. HOLDINGS, INC.

FOR IMMEDIATE RELEASE

THURSDAY, AUGUST 4, 2011

 

 

 

Contact:

Robert N. Martin

Investor Relations

(720) 977-3431

bob.martin@mdch.com

M.D.C. HOLDINGS ANNOUNCES SECOND QUARTER 2011 RESULTS

 

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Net orders increased 5% year-over-year to 1,064 homes

 

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Quarter-end backlog increased 28% year-over-year to 1,424 homes

 

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Active subdivisions increased 31% to 176

 

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Net loss of $28.0 million or $0.60 per share, including asset impairments and project abandonment charges of $11.2 million

 

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General and administrative expense decreased 19% year-over-year to $36.2 million; eliminated more than 100 full-time positions during the second quarter

 

•

Tender offer for $237 million of senior notes closed in July 2011

DENVER, Thursday, August 4, 2011 - M.D.C. Holdings, Inc. (NYSE: MDC) today reported a net loss for the 2011 second quarter of $28.0 million, or $0.60 per share, compared with a net loss for the 2010 second quarter of $3.7 million, or $0.08 per share.

Revenue for the 2011 second quarter decreased 34% to $215.7 million, compared with $326.3 million a year ago. Prior year results benefited from increased demand related to the federal homebuyer tax credit, which expired during the 2010 second quarter.

Management Comments

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Over the past two years, we have focused a significant amount of time on land acquisition, which has yielded a 31% year-over-year increase in active subdivisions at the end of the second quarter, setting the stage for top-line growth in the second half of 2011. We accomplished the increase in active communities both through land purchases in our existing markets and by expanding into the Seattle market through the acquisition of assets from SDC Homes in April. However, as our economy continues to display considerable weakness, it is difficult to justify a significant number of additional land acquisitions in the near-term.”

 

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Mizel continued, “As we look at the communities we already own, we see a clear need to focus more closely on our gross profit margins. To start, we have changed our policy on the production of speculative homes, which have yielded margins significantly below those homes that are started with a buyer under contract. Going forward, in most of our markets, we will start very few speculative homes. As of the end of the second quarter, our supply of these homes had already decreased 44% year-over-year. With our new policy in place, we should see this number continue to decline, and the percentage of our closings attributable to homes sold with a buyer under contract should increase.”

Mizel concluded, “Given the headwinds our industry continues to face, we are also focused on reducing our expenses, as demonstrated by headcount reductions and other cost savings measures over the last year that have resulted in a 19% year-over-year decrease in general and administrative expenses. In the second quarter alone, we eliminated more than 100 positions, which should drive our general and administrative expense even lower in the coming quarters. In addition, we completed a tender offer in July on approximately $237 million of our senior notes to reduce our interest incurred. We will continue to focus on cost savings initiatives to the extent necessary to position ourselves for profitability.”

Second Quarter Highlights

Home closings in the 2011 second quarter were 709 units, with an average selling price of $290,800, compared with 1,135 units, with an average selling price of $274,300, in the second quarter of 2010.

Home gross margin in the 2011 second quarter was 13.1% as compared with 18.1% in the 2010 second quarter. This decrease reflects our focus on reducing older aged speculative inventory, and an increase in land costs as we have sought to lower our land risk by primarily purchasing finished lots in prime locations.

During the 2011 second quarter, asset impairments totaled $9.1 million, compared with no asset impairments in the same quarter last year. The impairments related primarily to six subdivisions located in California, Nevada and Utah.

General and administrative expenses decreased to $36.2 million for the 2011 second quarter, compared with $44.6 million for the same period in the prior year. The primary driver behind the decrease was a $5.0 million decline in salary related costs due to a year-over-year decrease in headcount.

Marketing costs were $9.9 million in the 2011 second quarter, compared with $11.5 million in the 2010 second quarter, primarily due to the year-over-year decrease in home closings, partially offset by an increase in our community count. Commission costs were $7.5 million as compared with $11.6 million in the same quarter last year, inline with the decrease in revenue we experienced.

 

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Net orders for the 2011 second quarter increased to 1,064 homes with an estimated sales value of $302 million, compared with net orders for 1,015 homes with an estimated sales value of $281 million during the same period in 2010.

We ended the 2011 second quarter with 1,424 homes under contract with an estimated sales value of $433 million, compared with a backlog of 1,114 homes with an estimated sales value of $351 million at June 30, 2010.

Our estimated home gross margin in backlog at the end of the second quarter did not change materially from the estimated home gross margin in backlog to start the quarter.

Overhead Management

During the 2011 second quarter, the Company and its subsidiaries eliminated more than 100 employees from its workforce. The Company expects to save approximately $9 million annually as a result of these reductions and incurred $1.2 million of related severance charges during the second quarter.

Tender Offer Results

On July 7, 2011, the Company completed a tender offer on approximately $237 million in aggregate principal amount of its senior notes, which will reduce our annual interest incurred by approximately $14 million, partially offset by a loss of interest income on the cash used to extinguish the debt. Also, as a result of the tender offer, the Company expects to record an $18.6 million charge associated with the extinguishment of debt during the third quarter.

Enterprise Resource Planning System Update

During the second quarter, we implemented our new enterprise resource planning system in one additional division. As of June 30, 2011, half of our divisions remained to be upgraded to the new system. This technology platform, when fully implemented, is expected to drive consistency in core processes across divisions, reduce operating costs and provide management with better accessibility to real-time operating data.

About MDC

Since 1972, MDC’s subsidiary companies have built and financed the American dream for more than 165,000 families. MDC’s commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding 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

 

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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) changes in consumer confidence and preferences; (16) terrorist acts and other acts of war; and (17) 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-Q for the quarter ended June 30, 2011, 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.

 

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M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
Revenue
Home sales revenue		$	206,163			$	311,276			$	369,546			$	452,219
Land sales revenue			2,565				5,699				2,769				5,714
Other revenue			6,957				9,355				13,117				15,475
Total Revenue			215,685				326,330				385,432				473,408
Costs and expenses
Home cost of sales			179,097				255,062				320,078				364,452
Land cost of sales			1,741				4,974				1,758				5,165
Asset impairments			9,119				—				9,398				—
Marketing expenses			9,897				11,475				19,730				18,535
Commission expenses			7,456				11,611				13,223				16,740
General and administrative expenses			36,237				44,588				72,989				84,791
Other operating (income) expenses			2,447				529				897				1,020
Related party expenses			28				—				32				9
Total operating costs and expenses			246,022				328,239				438,105				490,712
Loss from operations			(30,337	)			(1,909	)			(52,673	)			(17,304	)
Other income (expense)
Interest income			7,872				7,541				15,198				11,969
Interest expense			(7,394	)			(9,436	)			(16,124	)			(19,810	)
Other			56				105				92				204
Loss before income taxes			(29,803	)			(3,699	)			(53,507	)			(24,941	)
Benefit from income taxes, net			1,823				15				5,648				384
Net loss		$	(27,980	)		$	(3,684	)		$	(47,859	)		$	(24,557	)
Loss per share
Basic		$	(0.60	)		$	(0.08	)		$	(1.03	)		$	(0.53	)
Diluted		$	(0.60	)		$	(0.08	)		$	(1.03	)		$	(0.53	)
Dividends declared per share		$	0.25			$	0.25			$	0.50			$	0.50

 

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M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

		June 30, 2011				December 31, 2010
Assets
Cash and cash equivalents		$	755,835			$	572,225
Marketable securities			646,895				968,729
Restricted cash			604				420
Receivables
Home sales receivables			7,797				8,530
Income taxes receivable			—				2,048
Other receivables			8,661				9,432
Mortgage loans held-for-sale, net			39,200				65,114
Inventories, net
Housing completed or under construction			336,514				372,422
Land and land under development			524,234				415,237
Property and equipment, net			38,769				40,826
Deferred tax asset, net of valuation allowance of $252,209 and $231,379 at June 30, 2011 and December 31, 2010, respectively			—				—
Related party assets			7,393				7,393
Prepaid expenses and other assets, net			54,402				85,393
Total Assets		$	2,420,304			$	2,547,769
Liabilities
Accounts payable		$	29,108			$	35,018
Accrued liabilities			204,890				260,729
Income taxes payable			734				—
Related party liabilities			117				90
Mortgage repurchase facility			8,988				25,434
Senior notes, net			1,243,273				1,242,815
Total Liabilities			1,487,110				1,564,086
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding			—				—
Common stock, $0.01 par value; 250,000,000 shares authorized; 47,530,000 and 47,474,000 issued and outstanding, respectively, at June 30, 2011 and 47,198,000 and 47,142,000 issued and outstanding, respectively, at December 31, 2010			475				472
Additional paid-in-capital			839,964				820,237
Retained earnings			87,198				158,749
Accumulated other comprehensive income			6,216				4,884
Treasury stock, at cost; 56,000 shares at June 30, 2011 and December 31, 2010			(659	)			(659	)
Total Stockholders’ Equity			933,194				983,683
Total Liabilities and Stockholders’ Equity		$	2,420,304			$	2,547,769

 

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M.D.C. HOLDINGS, INC.

Information on Segments

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
Revenue
Homebuilding
West		$	69,401			$	123,193			$	111,884			$	180,330
Mountain			78,702				110,112				149,826				156,794
East			51,076				72,657				94,168				104,162
Other Homebuilding			10,949				16,757				20,808				25,793
Total Homebuilding			210,128				322,719				376,686				467,079
Financial Services and Other			6,731				9,143				12,434				14,764
Corporate			—				—				—				—
Intercompany adjustments			(1,174	)			(5,532	)			(3,688	)			(8,435	)
Consolidated		$	215,685			$	326,330			$	385,432			$	473,408
		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
(Loss)/Income Before Income Taxes
Homebuilding
West		$	(11,837	)		$	6,357			$	(16,397	)		$	8,711
Mountain			(1,204	)			4,962				(2,436	)			6,132
East			(2,345	)			1,455				(4,301	)			(64	)
Other Homebuilding			(916	)			295				(1,692	)			(224	)
Total Homebuilding			(16,302	)			13,069				(24,826	)			14,555
Financial Services and Other			3,089				4,089				4,869				5,935
Corporate			(16,590	)			(20,857	)			(33,550	)			(45,431	)
Consolidated		$	(29,803	)		$	(3,699	)		$	(53,507	)		$	(24,941	)
		June 30, 2011				December 31, 2010
Total Assets
Homebuilding
West		$	360,939			$	300,652
Mountain			308,805				311,833
East			214,246				188,693
Other Homebuilding			37,146				40,554
Total Homebuilding			921,136				841,732
Financial Services and Other			112,113				135,286
Corporate			1,390,811				1,573,408
Intercompany adjustments			(3,756	)			(2,657	)
Consolidated		$	2,420,304			$	2,547,769

 

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M.D.C. HOLDINGS, INC.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended June 30,								Change								Six Months Ended June 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Selected Fincial Data
General and Administrative Expenses
Homebuilding		$	15,822			$	20,489			$	(4,667	)			-23	%		$	30,781			$	38,215			$	(7,434	)			-19	%
Financial Services and Other			4,432				5,658				(1,226	)			-22	%			9,131				9,746				(615	)			-6	%
Corporate			15,983				18,441				(2,458	)			-13	%			33,077				36,830				(3,753	)			-10	%
Total		$	36,237			$	44,588			$	(8,351	)			-19	%		$	72,989			$	84,791			$	(11,802	)			-14	%
SG&A as a % of Home Sales Revenue
Homebuilding Segments			16.1	%			14.0	%			2.1	%							17.2	%			16.3	%			0.9	%
Corporate Segment			7.8	%			5.9	%			1.9	%							9.0	%			8.1	%			0.9	%
Depreciation and Amortization (1)		$	4,338			$	5,169			$	(831	)			-16	%		$	8,067			$	8,101			$	(34	)			0	%
Home Gross Margins (2)			13.1	%			18.1	%			-5.0	%							13.4	%			19.4	%			-6.0	%
Interest in Home Cost of Sales as a % of Home Sales Revenue			2.6	%			2.6	%			0.0	%							2.6	%			2.5	%			0.1	%
Cash Provided by (Used in)
Operating Activities		$	(11,556	)		$	(190,450	)		$	178,894							$	(69,257	)		$	(178,934	)		$	109,677
Investing Activities		$	187,918			$	(116,380	)		$	304,298							$	292,959			$	(618,147	)		$	911,106
Financing Activities		$	(9,570	)		$	48,823			$	(58,393	)						$	(40,092	)		$	254,961			$	(295,053	)
Total Interest Capitalized
Interest capitalized, beginning of period		$	43,762			$	31,773			$	11,989				38	%		$	38,446			$	28,339			$	10,107				36	%
Interest capitalized, net of interest expense			10,750				8,849				1,901				21	%			20,269				15,485				4,784				31	%
Previously capitalized interest included in home cost of sales			(5,454	)			(8,202	)			2,748				-34	%			(9,657	)			(11,404	)			1,747				-15	%
Interest capitalized, end of period		$	49,058			$	32,420			$	16,638				51	%		$	49,058			$	32,420			$	16,638				51	%

 

(1)	Includes depreciation and amortization of long-lived assets and amortization of deferred marketing costs.

(2)	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.

 

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M.D.C. HOLDINGS, INC.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended June 30,								Change
		2011				2010				Amount				%
Principal amount of mortgage loans originated		$	146,275			$	240,693			$	(94,418	)			-39	%
Principal amount of mortgage loans brokered		$	2,177			$	2,660			$	(483	)			-18	%
Capture Rate			75	%			83	%			-8	%
Including brokered loans			76	%			84	%			-8	%
Mortgage products (% of mortgage loans originated)
Fixed rate			96	%			97	%			-1	%
Adjustable rate - other			4	%			3	%			1	%
Prime loans (3)			27	%			26	%			1	%
Government loans (4)			73	%			74	%			-1	%
		Six Months Ended June 30,								Change
		2011				2010				Amount				%
Principal amount of mortgage loans originated		$	261,655			$	348,783			$	(87,128	)			-25	%
Principal amount of mortgage loans brokered		$	2,896			$	5,516			$	(2,620	)			-47	%
Capture Rate			75	%			82	%			-7	%
Including brokered loans			76	%			83	%			-7	%
Mortgage products (% of mortgage loans originated)
Fixed rate			96	%			96	%			0	%
Adjustable rate - other			4	%			4	%			0	%
Prime loans (3)			29	%			25	%			4	%
Government loans (4)			71	%			75	%			-4	%

 

(3)	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.

(4)	Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		June 30, 2011				December 31, 2010				June 30, 2010
Homes Completed or Under Construction
Unsold Home Under Construction - Final			42				119				47
Unsold Home Under Construction - Frame			353				722				720
Unsold Home Under Construction - Foundation			101				103				124
Total Unsold Homes Under Construction			496				944				891
Sold Homes Under Construction			843				609				865
Model Homes			231				242				226
Homes Completed or Under Construction			1,570				1,795				1,982
Lots Owned (excluding homes completed or under construction)
Arizona			1,064				1,257				1,165
California			1,376				1,201				1,130
Nevada			1,184				991				681
Washington			232				—				—
West			3,856				3,449				2,976
Colorado			3,240				2,919				2,893
Utah			579				594				569
Mountain			3,819				3,513				3,462
Maryland			380				319				199
Virginia			589				414				371
East			969				733				570
Florida			269				210				184
Illinois			123				130				134
Other Homebuilding			392				340				318
Total			9,036				8,035				7,326

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		June 30, 2011				December 31, 2010				June 30, 2010
Lots Controlled Under Option
Arizona			108				408				499
California			—				222				152
Nevada			398				838				570
Washington			42				—				—
West			548				1,468				1,221
Colorado			602				688				644
Utah			298				393				156
Mountain			900				1,081				800
Maryland			795				745				655
Virginia			234				132				272
East			1,029				877				927
Florida			480				733				658
Illinois			—				—				—
Other Homebuilding			480				733				658
Total			2,957				4,159				3,606
At Risk Option Deposits
Cash		$	10,534			$	9,019			$	7,933
Letters of Credit			6,716				4,467				2,727
Total At Risk Option Deposits		$	17,250			$	13,486			$	10,660

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Unaudited)

 

		Three Months Ended June 30,								Change								Six Months Ended June 30,								Change
Closed Homes (Units)		2011				2010				Amount				%				2011				2010				Amount				%
Arizona			98				242				(144	)			-60	%			175				350				(175	)			-50	%
California			62				68				(6	)			-9	%			110				114				(4	)			-4	%
Nevada			80				221				(141	)			-64	%			146				319				(173	)			-54	%
Washington			51				—				51				N/M				51				—				51				N/M
West			291				531				(240	)			-45	%			482				783				(301	)			-38	%
Colorado			182				230				(48	)			-21	%			348				338				10				3	%
Utah			66				147				(81	)			-55	%			120				199				(79	)			-40	%
Mountain			248				377				(129	)			-34	%			468				537				(69	)			-13	%
Maryland			49				87				(38	)			-44	%			106				117				(11	)			-9	%
Virginia			72				68				4				6	%			115				108				7				6	%
East			121				155				(34	)			-22	%			221				225				(4	)			-2	%
Florida			48				72				(24	)			-33	%			91				113				(22	)			-19	%
Illinois			1				—				1				0	%			1				—				1				0	%
Other Homebuilding			49				72				(23	)			-32	%			92				113				(21	)			-19	%
Total			709				1,135				(426	)			-38	%			1,263				1,658				(395	)			-24	%

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended June 30,								Change
Average Selling Price of Closed Homes		2011				2010				Amount				%
Arizona		$	188.1			$	190.7			$	(2.6	)			-1	%
California			320.4				444.7				(124.3	)			-28	%
Colorado			332.0				303.0				29.0				10	%
Florida			221.4				227.3				(5.9	)			-3	%
Illinois			293.0				N/A				N/M				N/M
Maryland			414.9				462.5				(47.6	)			-10	%
Nevada			185.8				187.2				(1.4	)			-1	%
Utah			272.5				274.7				(2.2	)			-1	%
Virginia			426.7				476.2				(49.5	)			-10	%
Washington			270.3				N/A				N/M				N/M
Average		$	290.8			$	274.3			$	16.5				6	%
		Six Months Ended June 30,								Change
		2011				2010				Amount				%
Arizona		$	184.6			$	194.7			$	(10.1	)			-5	%
California			319.0				407.3				(88.3	)			-22	%
Colorado			334.3				302.0				32.3				11	%
Florida			225.0				224.8				0.2				0	%
Illinois			293.0				N/A				N/M				N/M
Maryland			422.1				449.7				(27.6	)			-6	%
Nevada			192.9				187.8				5.1				3	%
Utah			273.6				274.4				(0.8	)			0	%
Virginia			427.9				476.8				(48.9	)			-10	%
Washington			270.3				N/A				N/M				N/M
Average		$	292.6			$	272.7			$	19.9				7	%

 

13

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended June 30,								Change								Six Months Ended June 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Orders For Homes, net (units)
Arizona			164				184				(20	)			-11	%			286				352				(66	)			-19	%
California			117				109				8				7	%			194				135				59				44	%
Nevada			154				195				(41	)			-21	%			242				365				(123	)			-34	%
Washington			26				—				26				N/M				26				—				26				N/M
West			461				488				(27	)			-6	%			748				852				(104	)			-12	%
Colorado			232				232				—				0	%			413				502				(89	)			-18	%
Utah			109				110				(1	)			-1	%			176				235				(59	)			-25	%
Mountain			341				342				(1	)			0	%			589				737				(148	)			-20	%
Maryland			74				62				12				19	%			120				109				11				10	%
Virginia			95				76				19				25	%			163				142				21				15	%
East			169				138				31				22	%			283				251				32				13	%
Florida			91				47				44				94	%			142				106				36				34	%
Illinois			2				—				2				N/M				7				—				7				N/M
Other Homebuilding			93				47				46				98	%			149				106				43				41	%
Total			1,064				1,015				49				5	%			1,769				1,946				(177	)			-9	%
Estimated Value of Orders for Homes, net		$	302,000			$	281,000			$	21,000				7	%		$	507,000			$	539,000			$	(32,000	)			-6	%
Estimated Average Selling Price of Orders for Homes, net		$	283.8			$	276.8			$	7.0				3	%		$	286.6			$	277.0			$	9.6				3	%
Cancellation Rate (5)			29	%			25	%			4	%							31	%			24	%			7	%

 

(5)	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.

 

14

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		June 30, 2011				December 31, 2010				June 30, 2010
Backlog (units)
Arizona			195				84				105
California			163				79				97
Nevada			172				76				134
Washington			51				—				—
West			581				239				336
Colorado			338				273				371
Utah			125				69				130
Mountain			463				342				501
Maryland			140				126				118
Virginia			118				70				107
East			258				196				225
Florida			115				64				52
Illinois			7				1				—
Other Homebuilding			122				65				52
Total			1,424				842				1,114
Backlog Estimated Sales Value		$	433,000			$	269,000			$	351,000
Estimated Average Selling Price of Homes in Backlog		$	304.1			$	319.5			$	315.1
		June 30, 2011				December 31, 2010				June 30, 2010
Active Subdivisions
Arizona			30				26				26
California			16				13				6
Nevada			17				18				15
Washington			9				—				—
West			72				57				47
Colorado			40				39				41
Utah			21				19				18
Mountain			61				58				59
Maryland			13				14				10
Virginia			12				8				9
East			25				22				19
Florida			17				11				9
Illinois			1				—				—
Other Homebuilding			18				11				9
Total			176				148				134

 

15