Exhibit 99.1

M.D.C. HOLDINGS, INC.

NEWS BULLETIN

M.D.C. HOLDINGS, INC.

FOR IMMEDIATE RELEASE

THURSDAY, NOVEMBER 3, 2011

 

 

 

Contact:

Robert N. Martin

Vice President of Finance

(720) 977-3431

bob.martin@mdch.com

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

Operating and Strategic Highlights

 

•

Net loss of $31.7 million or $0.68 per share, including an $18.6 million charge related to the extinguishment of debt and $7.0 million of asset impairments and project abandonment charges

 

•

$500 million of senior note reductions completed or announced; annualized interest incurred reduced by nearly $30 million

 

•

Decreased general and administrative headcount by 33% year-over-year; approximately $20 million in estimated annual savings

 

•

Net orders decreased 25% year-over-year to 595 homes

 

•

Active subdivisions up 28% year-over-year to 182

DENVER, Thursday, November 3, 2011 - M.D.C. Holdings, Inc. (NYSE: MDC) today reported a net loss for the 2011 third quarter of $31.7 million, or $0.68 per share, including an $18.6 million charge related to the extinguishment of debt and $7.0 million of asset impairments and project abandonment charges. In the 2010 third quarter, our net loss was $10.2 million, or $0.22 per share, including $3.7 million of impairments. Revenue for the 2011 third quarter decreased 6% to $211.4 million, compared with $225.7 million a year ago.

Management Comments

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Given increased uncertainty surrounding employment levels and consumer confidence, our goal is to return to profitability without relying on an improvement in homebuilding market conditions. Prior to the third quarter, we focused primarily on increasing our community count, giving us the opportunity to improve our market share and increase revenue. 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, and therefore we are now focusing on other strategies to drive profitability.”

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M.D.C. HOLDINGS, INC.

 

Mizel continued, “As we look at the communities we already own, we are closely analyzing our sales process. We previously announced a change to our approach on the sale of speculative homes, and remain committed to starting very few of these homes going forward in most markets. During the third quarter, this strategy benefited our home gross margins. However, we believe it also slowed our home order absorption pace and our backlog conversion rate.”

“We are also modifying our approach to sales promotions. Over the past eighteen months, we have relied on large promotions as a critical component of our sales strategy. While these promotions were successful in producing a high level of urgency for our sales personnel and customers, we have also have experienced increased volatility in sales absorptions and cancellation rates, which complicates the management of our day-to-day operations. Therefore, we will rely less on these large promotions in the future.”

“Finally, we are working to streamline the way we sell upgrades to our homes. We will still offer our customers the opportunity to personalize their homes at our Home Galleries across the country, but we will do so in a manner that allows us to operate this aspect of our business with reduced complexity and lower overhead. All of the changes to our sales process are now being managed under new leadership. The goal of these initiatives is not only to increase absorptions and home gross margins, but also to simplify our business model, allowing us to operate more effectively with lower overhead.”

Mizel concluded, “Our efforts to reduce overhead expenses continued in the third quarter, as we reduced our headcount by eliminating more than 100 positions. As a result, our general and administrative headcount decreased by 33% year-over-year, removing approximately $20 million of overhead expense in the process. Beyond these reductions, we have identified roughly $5 million in estimated annual cost savings that should take effect no later than the first quarter of 2012. In addition, we have announced that we will retire $500 million of debt by the end of 2011, which will better align our capital structure with our current capital needs. As a result, the annualized amount of interest we incur will decrease by $30 million.”

Third Quarter Highlights

Home closings in the 2011 third quarter were 707 units, with an average selling price of $289,800, compared with 722 units, with an average selling price of $299,900, in the third quarter of 2010. Our ratio of closings to beginning backlog decreased to 50% for the 2011 third quarter, compared with 65% in the 2010 third quarter. The decrease is attributable to a year-over-year decrease in the percentage of backlog under construction at the beginning of the quarter.

Home gross margin in the 2011 third quarter was 16.8% as compared with 20.9% in the 2010 third quarter. The 2011 third quarter benefited from the settlement of a construction defect claim and the impact of recording adjustments to land budgets.

 

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M.D.C. HOLDINGS, INC.

 

Marketing costs were $10.0 million in the 2011 third quarter, compared with $11.2 million in the 2010 third quarter, primarily due to a decrease in product advertising costs. Commission costs were $7.5 million as compared with $8.1 million in the same quarter last year, inline with the decrease in revenue we experienced.

General and administrative expenses decreased to $35.6 million for the 2011 third quarter, compared with $39.3 million for the same period in the prior year. The primary driver behind the decrease was a $7.3 million decline in salary related costs due to a year-over-year decrease in headcount, partially offset by a $3.0 million increase in our estimated mortgage loan loss reserve.

During the 2011 third quarter, asset impairments totaled $4.7 million, compared with $3.7 million in the same quarter last year. The largest impairment related to an asset located in Chicago, where we are no longer selling homes. We also incurred $2.3 million of expense related to write-offs of land option deposits and pre-acquisition costs associated with lot option contracts that we elected not to exercise during the 2011 third quarter.

Net orders for the 2011 third quarter decreased to 595 homes with an estimated sales value of $175 million, compared with net orders for 796 homes with an estimated sales value of $231 million during the same period in 2010. The decrease in home orders was driven primarily by an increase in the number of cancellations received during the quarter, with many of the cancellations originating from a nationwide sales promotion that occurred late in the second quarter. In addition, gross orders during the 2010 third quarter were positively influenced by the Company’s use of sizeable incentives to drive a higher sales velocity for older speculative homes.

We ended the 2011 third quarter with 1,312 homes under contract with an estimated sales value of $405 million, compared with a backlog of 1,188 homes with an estimated sales value of $368 million at September 30, 2010. Our estimated home gross margin in backlog at the end of the third quarter increased from the estimated home gross margin in backlog to start the quarter.

 

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M.D.C. HOLDINGS, INC.

 

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 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 September 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 September 30,								Nine Months Ended September 30,
		2011				2010				2011				2010
Revenue
Home sales revenue		$	204,886			$	216,501			$	574,432			$	668,720
Land sales revenue			730				904				3,499				6,618
Other revenue			5,744				8,276				18,861				23,751
Total revenue			211,360				225,681				596,792				699,089
Costs and expenses
Home cost of sales			170,443				171,199				490,521				535,651
Land cost of sales			724				818				2,482				5,983
Asset impairments			4,692				3,718				14,090				3,718
Marketing expenses			10,002				11,191				29,732				29,726
Commission expenses			7,476				8,078				20,699				24,818
General and administrative expenses			35,580				39,269				108,569				124,060
Other operating expenses			2,414				817				3,343				1,846
Total operating costs and expenses			231,331				235,090				669,436				725,802
Loss from operations			(19,971	)			(9,409	)			(72,644	)			(26,713	)
Other income (expense)
Interest income			6,745				7,544				21,943				19,513
Interest expense			(3,695	)			(9,000	)			(19,819	)			(28,810	)
Extinguishment of senior notes and other			(17,268	)			271				(17,176	)			475
Loss before income taxes			(34,189	)			(10,594	)			(87,696	)			(35,535	)
Benefit from income taxes, net			2,479				355				8,127				739
Net loss		$	(31,710	)		$	(10,239	)		$	(79,569	)		$	(34,796	)
Loss per share
Basic		$	(0.68	)		$	(0.22	)		$	(1.72	)		$	(0.75	)
Diluted		$	(0.68	)		$	(0.22	)		$	(1.72	)		$	(0.75	)
Dividends declared per share		$	0.25			$	0.25			$	0.75			$	0.75

 

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M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Dollars in thousands)

(Unaudited)

 

		September 30, 2011				December 31, 2010
Assets
Cash and cash equivalents		$	567,501			$	572,225
Marketable securities			535,494				968,729
Receivables			19,414				20,010
Mortgage loans held-for-sale, net			42,301				65,114
Inventories, net
Housing completed or under construction			333,350				372,422
Land and land under development			517,337				415,237
Deferred tax asset, net of valuation allowance of $274,380 and $231,379 at September 30, 2011 and December 31, 2010, respectively			—				—
Other Assets			99,572				134,032
Total Assets		$	2,114,969			$	2,547,769
Liabilities
Accounts payable		$	27,295			$	35,018
Accrued liabilities and other			190,100				260,819
Mortgage repurchase facility			10,708				25,434
Senior notes, net			1,006,656				1,242,815
Total Liabilities			1,234,759				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 September 30, 2011 and 47,198,000 and 47,142,000 issued and outstanding, respectively, at December 31, 2010			475				472
Additional paid-in-capital			850,795				820,237
Retained earnings			43,620				158,749
Accumulated other comprehensive (loss) income			(14,021	)			4,884
Treasury stock, at cost; 56,000 shares at September 30, 2011 and December 31, 2010			(659	)			(659	)
Total Stockholders’ Equity			880,210				983,683
Total Liabilities and Stockholders’ Equity		$	2,114,969			$	2,547,769

 

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M.D.C. HOLDINGS, INC.

Information on Segments

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2011				2010				2011				2010
Revenue
Homebuilding
West		$	71,292			$	66,233			$	183,176			$	246,563
Mountain			82,637				89,111				232,463				245,905
East			36,610				58,304				130,778				162,466
Other Homebuilding			16,678				7,344				37,486				33,137
Total Homebuilding			207,217				220,992				583,903				688,071
Financial Services and Other			5,540				7,932				17,974				22,696
Corporate			—				—				—				—
Intercompany adjustments			(1,397	)			(3,243	)			(5,085	)			(11,678	)
Consolidated		$	211,360			$	225,681			$	596,792			$	699,089
Income/(Loss) Before Income Taxes
Homebuilding
West		$	(2,584	)		$	4,900			$	(18,981	)		$	13,611
Mountain			2,988				520				552				6,652
East			(2,518	)			2,021				(6,819	)			1,957
Other Homebuilding			(1,514	)			(1,673	)			(3,206	)			(1,897	)
Total Homebuilding			(3,628	)			5,768				(28,454	)			20,323
Financial Services and Other			(450	)			4,326				4,419				10,261
Corporate			(30,111	)			(20,688	)			(63,661	)			(66,119	)
Consolidated		$	(34,189	)		$	(10,594	)		$	(87,696	)		$	(35,535	)
		September 30, 2011				December 31, 2010
Total Assets
Homebuilding
West		$	365,759			$	300,652
Mountain			289,828				311,833
East			224,497				188,693
Other Homebuilding			30,331				40,554
Total Homebuilding			910,415				841,732
Financial Services and Other			115,176				135,286
Corporate			1,093,523				1,573,408
Intercompany adjustments			(4,145	)			(2,657	)
Consolidated		$	2,114,969			$	2,547,769

 

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M.D.C. HOLDINGS, INC.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended September 30,								Change								Nine Months Ended September 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Selected Financial Data
General and Administrative Expenses
Homebuilding		$	13,766			$	16,111			$	(2,345	)			-15	%		$	44,547			$	54,326			$	(9,779	)			-18	%
Financial Services and Other			6,701				4,521				2,180				48	%			15,832				14,267				1,565				11	%
Corporate			15,113				18,637				(3,524	)			-19	%			48,190				55,467				(7,277	)			-13	%
Total		$	35,580			$	39,269			$	(3,689	)			-9	%		$	108,569			$	124,060			$	(15,491	)			-12	%
SG&A as a % of Home Sales Revenue
Homebuilding Segments			15.2	%			16.3	%			-1.1	%							16.5	%			16.3	%			0.2	%
Corporate Segment			7.4	%			8.6	%			-1.2	%							8.4	%			8.3	%			0.1	%
Depreciation and Amortization (1)		$	4,031			$	3,705			$	326				9	%		$	12,098			$	11,806			$	292				2	%
Home Gross Margins (2)			16.8	%			20.9	%			-4.1	%							14.6	%			19.9	%			-5.3	%
Interest in Home Cost of Sales as a % of Home Sales Revenue			2.5	%			2.6	%			-0.1	%							2.6	%			2.5	%			0.1	%
Cash Provided by (Used in)
Operating activities		$	(11,486	)		$	41,343			$	(52,829	)						$	(80,743	)		$	(137,591	)		$	56,848
Investing activities		$	88,203			$	21,021			$	67,182							$	381,162			$	(597,126	)		$	978,288
Financing activities		$	(265,051	)		$	(65,935	)		$	(199,116	)						$	(305,143	)		$	189,026			$	(494,169	)
Total Interest Capitalized
Interest capitalized, beginning of period		$	49,058			$	32,420			$	16,638				51	%		$	38,446			$	28,339			$	10,107				36	%
Interest capitalized, net of interest expense			10,833				9,370				1,463				16	%			31,102				24,855				6,247				25	%
Previously capitalized interest included in home cost of sales			(5,140	)			(5,581	)			441				-8	%			(14,797	)			(16,985	)			2,188				-13	%
Interest capitalized, end of period		$	54,751			$	36,209			$	18,542				51	%		$	54,751			$	36,209			$	18,542				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 September 30,								Change								Nine Months Ended September 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Principal amount of mortgage loans originated		$	129,005			$	158,337			$	(29,332	)			-19	%		$	390,660			$	507,120			$	(116,460	)			-23	%
Principal amount of mortgage loans brokered		$	1,622			$	370			$	1,252				338	%		$	4,518			$	5,883			$	(1,365	)			-23	%
Capture Rate			66	%			79	%			-13	%							72	%			81	%			-9	%
Including brokered loans			67	%			79	%			-12	%							73	%			82	%			-9	%
Mortgage products (% of mortgage loans originated)
Fixed rate			96	%			97	%			-1	%							96	%			96	%			0	%
Adjustable rate - other			4	%			3	%			1	%							4	%			4	%			0	%
Prime loans (3)			38	%			32	%			6	%							33	%			27	%			6	%
Government loans (4)			62	%			68	%			-6	%							67	%			73	%			-6	%

 

(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)

 

		September 30, 2011				December 31, 2010				September 30, 2010
Homes Completed or Under Construction
Unsold Home Under Construction—Final			85				119				56
Unsold Home Under Construction—Frame			314				722				725
Unsold Home Under Construction—Foundation			85				103				104
Total Unsold Homes Under Construction			484				944				885
Sold Homes Under Construction			871				609				955
Model Homes			220				242				246
Homes Completed or Under Construction			1,575				1,795				2,086
Lots Owned (excluding homes completed or under construction)
Arizona			981				1,257				1,290
California			1,306				1,201				1,095
Nevada			1,091				991				632
Washington			312				—				—
West			3,690				3,449				3,017
Colorado			3,103				2,919				2,762
Utah			545				594				494
Mountain			3,648				3,513				3,256
Maryland			446				319				207
Virginia			566				414				380
East			1,012				733				587
Florida			233				210				204
Illinois			123				130				130
Other Homebuilding			356				340				334
Total			8,706				8,035				7,194

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		September 30, 2011				December 31, 2010				September 30, 2010
Lots Controlled Under Option
Arizona			96				408				453
California			—				222				45
Nevada			75				838				1,018
Washington			182				—				—
West			353				1,468				1,516
Colorado			464				688				616
Utah			273				393				581
Mountain			737				1,081				1,197
Maryland			730				745				906
Virginia			192				132				220
East			922				877				1,126
Florida			373				733				906
Illinois			—				—				—
Other Homebuilding			373				733				906
Total			2,385				4,159				4,745
At Risk Option Deposits
Cash		$	8,932			$	9,019			$	9,314
Letters of Credit			5,139				4,467				3,086
Total At Risk Option Deposits		$	14,071			$	13,486			$	12,400

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Unaudited)

 

		Three Months Ended September 30,								Change								Nine Months Ended September 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Closed Homes (Units)
Arizona			126				111				15				14	%			301				461				(160	)			-35	%
California			58				62				(4	)			-6	%			168				176				(8	)			-5	%
Nevada			77				108				(31	)			-29	%			223				427				(204	)			-48	%
Washington			49				—				49				N/M				100				—				100				N/M
West			310				281				29				10	%			792				1,064				(272	)			-26	%
Colorado			189				208				(19	)			-9	%			537				546				(9	)			-2	%
Utah			58				78				(20	)			-26	%			178				277				(99	)			-36	%
Mountain			247				286				(39	)			-14	%			715				823				(108	)			-13	%
Maryland			47				68				(21	)			-31	%			153				185				(32	)			-17	%
Virginia			36				58				(22	)			-38	%			151				166				(15	)			-9	%
East			83				126				(43	)			-34	%			304				351				(47	)			-13	%
Florida			63				29				34				117	%			154				142				12				8	%
Illinois			4				—				4				0	%			5				—				5				0	%
Other Homebuilding			67				29				38				131	%			159				142				17				12	%
Total			707				722				(15	)			-2	%			1,970				2,380				(410	)			-17	%

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended September 30,								Change								Nine Months Ended September 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Average Selling Price of Closed Homes
Arizona		$	202.2			$	200.7			$	1.5				1	%		$	192.0			$	196.1			$	(4.1	)			-2	%
California			310.6				375.2				(64.6	)			-17	%			316.1				396.0				(79.9	)			-20	%
Colorado			347.7				322.6				25.1				8	%			339.0				309.8				29.2				9	%
Florida			232.7				253.2				(20.5	)			-8	%			228.1				230.6				(2.5	)			-1	%
Illinois			320.2				N/A				N/M				N/M				314.7				N/A				N/M				N/M
Maryland			448.2				443.3				4.9				1	%			430.2				447.3				(17.1	)			-4	%
Nevada			189.5				190.2				(0.7	)			0	%			191.7				188.4				3.3				2	%
Utah			289.9				268.9				21.0				8	%			278.9				272.8				6.1				2	%
Virginia			430.5				484.5				(54.0	)			-11	%			428.6				479.5				(50.9	)			-11	%
Washington			268.5				N/A				N/M				N/M				269.4				N/A				N/M				N/M
Average		$	289.8			$	299.9			$	(10.1	)			-3	%		$	291.6			$	281.0			$	10.6				4	%

 

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M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

 

		Three Months Ended September 30,								Change								Nine Months Ended September 30,								Change
		2011				2010				Amount				%				2011				2010				Amount				%
Orders For Homes, net (units)
Arizona			104				119				(15	)			-13	%			390				471				(81	)			-17	%
California			53				101				(48	)			-48	%			247				236				11				5	%
Nevada			107				106				1				1	%			349				471				(122	)			-26	%
Washington			42				—				42				N/M				68				—				68				N/M
West			306				326				(20	)			-6	%			1,054				1,178				(124	)			-11	%
Colorado			147				220				(73	)			-33	%			560				722				(162	)			-22	%
Utah			38				73				(35	)			-48	%			214				308				(94	)			-31	%
Mountain			185				293				(108	)			-37	%			774				1,030				(256	)			-25	%
Maryland			48				67				(19	)			-28	%			168				176				(8	)			-5	%
Virginia			42				60				(18	)			-30	%			205				202				3				1	%
East			90				127				(37	)			-29	%			373				378				(5	)			-1	%
Florida			16				50				(34	)			-68	%			158				156				2				1	%
Illinois			(2	)			—				(2	)			N/M				5				—				5				N/M
Other Homebuilding			14				50				(36	)			-72	%			163				156				7				4	%
Total			595				796				(201	)			-25	%			2,364				2,742				(378	)			-14	%
Estimated Value of Orders for Homes, net		$	175,000			$	231,000			$	(56,000	)			-24	%		$	682,000			$	770,000			$	(88,000	)			-11	%
Estimated Average Selling Price of Orders for Homes, net		$	294.1			$	290.2			$	3.9				1	%		$	288.5			$	280.8			$	7.7				3	%
Cancellation Rate (5)			44	%			30	%			14	%							35	%			26	%			9	%

 

(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)

 

		September 30, 2011				December 31, 2010				September 30, 2010
Backlog (units)
Arizona			173				84				113
California			158				79				136
Nevada			202				76				132
Washington			44				—				—
West			577				239				381
Colorado			296				273				383
Utah			105				69				125
Mountain			401				342				508
Maryland			141				126				117
Virginia			124				70				109
East			265				196				226
Florida			68				64				73
Illinois			1				1				—
Other Homebuilding			69				65				73
Total			1,312				842				1,188
Backlog Estimated Sales Value		$	405,000			$	269,000			$	368,000
Estimated Average Selling Price of Homes in Backlog		$	308.7			$	319.5			$	309.8
		September 30, 2011				December 31, 2010				September 30, 2010
Active Subdivisions
Arizona			26				26				28
California			16				13				10
Nevada			20				18				19
Washington			10				—				—
West			72				57				57
Colorado			47				39				39
Utah			21				19				19
Mountain			68				58				58
Maryland			14				14				9
Virginia			13				8				7
East			27				22				16
Florida			15				11				11
Illinois			—				—				—
Other Homebuilding			15				11				11
Total			182				148				142

 

15