M.D.C. HOLDINGS, INC. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - M.D.C. HOLDINGS, INC.	mdc20160802_8k.htm

Exhibit 99.1

M.D.C. HOLDINGS, INC.

News Release

M.D.C. HOLDINGS ANNOUNCES 2016 SECOND QUARTER RESULTS

DENVER, COLORADO, Wednesday August 3, 2016. M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended June 30, 2016.

2016 Second Quarter Highlights and Comparisons to 2015 Second Quarter

●

Net income up 35% to $26.9 million, or $0.55 per share from $20.0 million or $0.41 per share

●

Home sale revenues up 24% to $571.2 million from $461.7 million

Average sales price up 10% to $449,100

Homes delivered up 13% to 1,272

●

Dollar value of net new orders up 15% to $723.0 million from $629.7 million

Net new orders up 11% to 1,646

●

Ending backlog dollar value up 42% to $1.61 billion from $1.13 billion

Ending backlog units up 35% to 3,445

Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “We are very pleased with the results of our 2016 second quarter, highlighted by a 35% increase in our net income. As a result of strong execution by our dedicated employees across the country, our home sale revenues improved by 24%, the fastest rate of year-over-year growth in nearly 3 years.”

Mr. Mizel concluded, “To end the spring selling season, we recorded our ninth consecutive quarter of year-over-year growth in net new orders and achieved our highest second quarter average monthly sales absorption pace in over a decade, enabling us to reach a quarter-end backlog that was considerably higher than a year ago. As we enter the second half of 2016, our focus will be on accelerating the delivery of homes from this robust backlog, with a goal of sustaining our significant year-over-year revenue growth for the remainder of the year. This focus will give us the opportunity for continuing gains in operating leverage and overall returns for our Company, even as we maintain a financial position that ranks among the industry’s strongest.”

M.D.C. HOLDINGS, INC.

Homebuilding

Home sale revenues for the 2016 second quarter increased 24% to $571.2 million, compared to $461.7 million for the prior year period. This improvement was driven by a 13% increase in deliveries, primarily due to a 39% year-over-year increase of our homes in beginning backlog, and a 10% increase in average selling price. The increase in average selling price was primarily the result of a mix shift to higher-priced submarkets and, to a lesser extent, price increases implemented in the prior year.

For the 2016 second quarter, our gross margin from home sales declined 20 basis points from the same period in 2015. The decline was primarily the result of $1.6 million of inventory impairments, but it was mostly offset by less interest included in cost of sales as a percentage of home sale revenues.

Selling, general and administrative (“SG&A”) expenses for the 2016 second quarter were $64.4 million, up $9.6 million from $54.8 million for the same period in 2015. Our SG&A expenses as a percentage of home sale revenues (“SG&A rate”) decreased by 60 basis points to 11.3% for the 2016 second quarter from 11.9% in the 2015 second quarter. This decrease in our SG&A rate was primarily the result of a 24% increase in home sale revenues.

The dollar value of net new orders for the 2016 second quarter increased 15% year-over-year to $723.0 million. The improvement was primarily the result of an 11% increase in the number of homes sold, which was driven by a 10% increase in our monthly sales absorption rate. We also had a slight increase in our average selling price, due to price increases implemented in various active communities over the past year and a shift in mix to higher priced communities.

Our backlog value at the end of the 2016 second quarter was up 42% year-over-year to $1.61 billion. The improvement was due mostly to a 35% increase in the number of units in backlog, primarily due to (1) an increase in net new order activity over the last twelve months, (2) a higher percent of our backlog coming from build-to-order sales, which are generally in backlog for a longer period of time and, (3) limited subcontractor availability, which has extended our cycle times.

Financial Services

Income before taxes for our financial services operations for the 2016 second quarter was $9.1 million, a $0.8 million increase from $8.3 million in the 2015 second quarter. The increase in pretax income was primarily the result of year-over-year increases in (1) the dollar value of loans locked, originated, and sold, and (2) higher gains on loans locked and sold.

M.D.C. HOLDINGS, INC.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 185,000 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 Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, South Florida 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.

M.D.C. HOLDINGS, INC.

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 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 changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including 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 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 June 30, 2016, 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.

Contact: Kevin McCarty

Vice President of Finance and Corporate Controller

1-866-424-3395 / (720) 977-3395

IR@mdch.com

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
	(Dollars in thousands, except per share amounts)
	(Unaudited)
Homebuilding:
Home sale revenues	$	571,195		$	461,708		$	965,615		$	838,717
Land sale revenues		316			-			2,640			910
Total home and land sale revenues		571,511			461,708			968,255			839,627
Home cost of sales		(475,836	)		(385,019	)		(805,862	)		(703,661	)
Land cost of sales		(216	)		-			(1,879	)		(1,125	)
Inventory impairments		(1,600	)		-			(1,600	)		(350	)
Total cost of sales		(477,652	)		(385,019	)		(809,341	)		(705,136	)
Gross margin		93,859			76,689			158,914			134,491
Selling, general and administrative expenses		(64,440	)		(54,781	)		(120,717	)		(105,313	)
Interest and other income		2,553			2,720			3,489			4,574
Other expense		(278	)		(1,055	)		(905	)		(2,189	)
Other-than-temporary impairment of marketable securities		(288	)		-			(719	)		-
Homebuilding pretax income		31,406			23,573			40,062			31,563

Financial Services:
Revenues		15,823			11,420			26,840			22,011
Expenses		(7,543	)		(4,207	)		(13,784	)		(10,366	)
Interest and other income		772			1,096			1,613			2,000
Financial services pretax income		9,052			8,309			14,669			13,645

Income before income taxes		40,458			31,882			54,731			45,208
Provision for income taxes		(13,545	)		(11,884	)		(18,255	)		(16,790	)
Net income	$	26,913		$	19,998		$	36,476		$	28,418

Other comprehensive income (loss) related to available for sale securities, net of tax		895			(360	)		2,843			948
Comprehensive income	$	27,808		$	19,638		$	39,319		$	29,366

Earnings per share:
Basic	$	0.55		$	0.41		$	0.74		$	0.58
Diluted	$	0.55		$	0.41		$	0.74		$	0.58

Weighted average common shares outstanding
Basic		48,851,350			48,768,021			48,839,660			48,741,476
Diluted		48,861,742			49,005,037			48,848,914			48,954,059

Dividends declared per share	$	0.25		$	0.25		$	0.50		$	0.50

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

	June 30,		December 31,
	2016		2015
	(Dollars in thousands, except
	per share amounts)
	(Unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents	$	132,006	$	144,342
Marketable securities		55,798		92,387
Restricted cash		3,946		3,750
Trade and other receivables		47,803		23,314
Inventories:
Housing completed or under construction		933,922		747,036
Land and land under development		893,096		1,016,926
Total inventories		1,827,018		1,763,962
Property and equipment, net		29,143		28,226
Deferred tax asset, net		89,242		99,107
Metropolitan district bond securities (related party)		28,604		25,911
Prepaid and other assets		65,254		65,394
Total homebuilding assets		2,278,814		2,246,393
Financial Services:
Cash and cash equivalents		39,300		36,646
Marketable securities		14,821		11,307
Mortgage loans held-for-sale, net		118,699		115,670
Other assets		9,766		5,883
Total financial services assets		182,586		169,506
Total Assets	$	2,461,400	$	2,415,899
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	48,294	$	40,472
Accrued liabilities		130,651		122,886
Revolving credit facility		15,000		15,000
Senior notes, net		841,076		840,524
Total homebuilding liabilities		1,035,021		1,018,882
Financial Services:
Accounts payable and accrued liabilities		56,060		52,114
Mortgage repurchase facility		93,297		88,611
Total financial services liabilities		149,357		140,725
Total Liabilities		1,184,378		1,159,607
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; 49,008,835 and 48,888,424 issued and outstanding at June 30, 2016 and December 31, 2015, respectively		490		489
Additional paid-in-capital		921,660		915,746
Retained earnings		336,314		324,342
Accumulated other comprehensive income		18,558		15,715
Total Stockholders' Equity		1,277,022		1,256,292
Total Liabilities and Stockholders' Equity	$	2,461,400	$	2,415,899

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
	(Dollars in thousands)
	(Unaudited)
Operating Activities:
Net income	$	26,913		$	19,998		$	36,476		$	28,418
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense		3,176			1,716			6,163			2,591
Depreciation and amortization		1,294			1,009			2,367			2,092
Inventory impairments		1,600			-			1,600			350
Other-than-temporary impairment of marketable securities		288			-			719			-
Gain on sale of marketable securities		(1,177	)		(473	)		(262	)		(462	)
Amortization of discount / premiums on marketable debt securities, net		-			41			-			100
Deferred income tax expense		6,085			11,554			7,873			16,267
Net changes in assets and liabilities:
Restricted cash		(597	)		(684	)		(196	)		(2,128	)
Trade and other receivables		(10,984	)		5,849			(26,235	)		(292	)
Mortgage loans held-for-sale		(36,506	)		(15,020	)		(3,029	)		8,664
Housing completed or under construction		(71,448	)		(45,756	)		(186,805	)		(41,474	)
Land and land under development		54,390			38,193			122,701			36,919
Prepaid expenses and other assets		(3,886	)		(3,607	)		(2,975	)		(3,118	)
Accounts payable and accrued liabilities		23,751			16,263			19,517			(3,418	)
Net cash provided by (used in) operating activities		(7,101	)		29,083			(22,086	)		44,509

Investing Activities:
Purchases of marketable securities		(9,944	)		(14,195	)		(15,426	)		(34,679	)
Maturities of marketable securities		-			-			-			1,510
Sales of marketable securities		30,165			37,203			50,765			50,179
Purchases of property and equipment		(1,173	)		(81	)		(3,117	)		(421	)
Net cash provided by investing activities		19,048			22,927			32,222			16,589

Financing Activities:
Advances (payments) on mortgage repurchase facility, net		33,076			9,963			4,686			(10,822	)
Dividend payments		(12,252	)		(12,212	)		(24,504	)		(24,425	)
Proceeds from exercise of stock options		-			612			-			612
Net cash provided by (used in) financing activities		20,824			(1,637	)		(19,818	)		(34,635	)

Net increase (decrease) in cash and cash equivalents		32,771			50,373			(9,682	)		26,463
Cash and cash equivalents:
Beginning of period		138,535			129,915			180,988			153,825
End of period	$	171,306		$	180,288		$	171,306		$	180,288

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

	Three Months Ended June 30,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		201	$	60,976	$	303.4		203	$	58,691	$	289.1		(1	)%		4	%		5	%
California		192		117,985		614.5		185		89,544		484.0		4	%		32	%		27	%
Nevada		148		51,834		350.2		134		46,616		347.9		10	%		11	%		1	%
Washington		85		39,236		461.6		59		22,850		387.3		44	%		72	%		19	%
West		626		270,031		431.4		581		217,701		374.7		8	%		24	%		15	%
Colorado		353		172,100		487.5		317		147,925		466.6		11	%		16	%		4	%
Utah		51		17,935		351.7		25		8,968		358.7		104	%		100	%		(2	)%
Mountain		404		190,035		470.4		342		156,893		458.8		18	%		21	%		3	%
Maryland		83		41,639		501.7		57		25,702		450.9		46	%		62	%		11	%
Virginia		75		38,623		515.0		60		28,326		472.1		25	%		36	%		9	%
Florida		84		30,867		367.5		86		33,086		384.7		(2	)%		(7	)%		(4	)%
East		242		111,129		459.2		203		87,114		429.1		19	%		28	%		7	%
Total		1,272	$	571,195	$	449.1		1,126	$	461,708	$	410.0		13	%		24	%		10	%


	Six Months Ended June 30,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		361	$	106,038	$	293.7		353	$	105,577	$	299.1		2	%		0	%		(2	)%
California		317		193,515		610.5		325		158,530		487.8		(2	)%		22	%		25	%
Nevada		255		90,260		354.0		245		87,530		357.3		4	%		3	%		(1	)%
Washington		159		71,593		450.3		115		42,881		372.9		38	%		67	%		21	%
West		1,092		461,406		422.5		1,038		394,518		380.1		5	%		17	%		11	%
Colorado		602		293,675		487.8		562		259,863		462.4		7	%		13	%		6	%
Utah		90		32,510		361.2		56		20,140		359.6		61	%		61	%		0	%
Mountain		692		326,185		471.4		618		280,003		453.1		12	%		16	%		4	%
Maryland		117		57,445		491.0		113		52,858		467.8		4	%		9	%		5	%
Virginia		115		58,777		511.1		119		57,446		482.7		(3	)%		2	%		6	%
Florida		163		61,802		379.2		147		53,892		366.6		11	%		15	%		3	%
East		395		178,024		450.7		379		164,196		433.2		4	%		8	%		4	%
Total		2,179	$	965,615	$	443.1		2,035	$	838,717	$	412.1		7	%		15	%		8	%

Net New Orders

	Three Months Ended June 30,
	2016								2015								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate *
	(Dollars in thousands)
Arizona		236	$	69,393	$	294.0		2.62		250	$	70,350	$	281.4		2.35		(6	)%		(1	)%		4	%		11	%
California		308		178,438		579.3		5.33		283		158,462		559.9		4.44		9	%		13	%		3	%		20	%
Nevada		230		81,610		354.8		3.48		150		56,254		375.0		4.55		53	%		45	%		(5	)%		(24	)%
Washington		118		56,463		478.5		3.42		109		45,769		419.9		2.79		8	%		23	%		14	%		23	%
West		892		385,904		432.6		3.59		792		330,835		417.7		3.27		13	%		17	%		4	%		10	%
Colorado		413		191,329		463.3		4.02		410		187,483		457.3		3.23		1	%		2	%		1	%		24	%
Utah		77		28,070		364.5		3.21		63		22,458		356.5		3.11		22	%		25	%		2	%		3	%
Mountain		490		219,399		447.8		3.87		473		209,941		443.8		3.22		4	%		5	%		1	%		20	%
Maryland		69		31,750		460.1		1.67		61		28,660		469.8		2.14		13	%		11	%		(2	)%		(22	)%
Virginia		73		37,362		511.8		2.95		43		22,318		519.0		1.74		70	%		67	%		(1	)%		70	%
Florida		122		48,565		398.1		2.32		112		37,938		338.7		2.45		9	%		28	%		18	%		(5	)%
East		264		117,677		445.7		2.23		216		88,916		411.6		2.18		22	%		32	%		8	%		2	%
Total		1,646	$	722,980	$	439.2		3.34		1,481	$	629,692	$	425.2		3.03		11	%		15	%		3	%		10	%

	Six Months Ended June 30,
	2016								2015								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate *
	(Dollars in thousands)
Arizona		459	$	138,015	$	300.7		2.49		475	$	132,673	$	279.3		2.22		(3	)%		4	%		8	%		12	%
California		537		322,374		600.3		4.54		512		280,992		548.8		4.15		5	%		15	%		9	%		9	%
Nevada		459		163,041		355.2		3.57		377		143,669		381.1		4.83		22	%		13	%		(7	)%		(26	)%
Washington		242		116,336		480.7		3.17		221		91,814		415.4		2.90		10	%		27	%		16	%		9	%
West		1,697		739,766		435.9		3.34		1,585		649,148		409.6		3.22		7	%		14	%		6	%		4	%
Colorado		906		427,248		471.6		4.11		900		418,453		464.9		3.56		1	%		2	%		1	%		15	%
Utah		143		52,783		369.1		3.03		129		46,747		362.4		3.27		11	%		13	%		2	%		(7	)%
Mountain		1,049		480,031		457.6		3.92		1,029		465,200		452.1		3.52		2	%		3	%		1	%		11	%
Maryland		158		74,810		473.5		2.09		128		62,276		486.5		2.33		23	%		20	%		(3	)%		(10	)%
Virginia		158		82,055		519.3		3.07		115		57,497		500.0		2.10		37	%		43	%		4	%		46	%
Florida		230		97,657		424.6		2.42		217		77,374		356.6		2.51		6	%		26	%		19	%		(4	)%
East		546		254,522		466.2		2.46		460		197,147		428.6		2.34		19	%		29	%		9	%		5	%
Total		3,292	$	1,474,319	$	447.8		3.30		3,074	$	1,311,495	$	426.6		3.13		7	%		12	%		5	%		5	%

* Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Active Subdivisions

								Average Active Subdivisions							Average Active Subdivisions
	Active Subdivisions							Three Months Ended							Six Months Ended
	June 30,				%			June 30,				%			June 30,				%
	2016		2015		Change			2016		2015		Change			2016		2015		Change
Arizona		30		35		(14	)%		30		36		(17	)%		31		36		(14	)%
California		20		20		0	%		19		21		(10	)%		20		21		(5	)%
Nevada		22		11		100	%		22		11		100	%		21		13		62	%
Washington		10		13		(23	)%		12		13		(8	)%		13		13		0	%
West		82		79		4	%		83		81		2	%		85		83		2	%
Colorado		28		39		(28	)%		34		42		(19	)%		37		42		(12	)%
Utah		8		7		14	%		8		7		14	%		8		7		14	%
Mountain		36		46		(22	)%		42		49		(14	)%		45		49		(8	)%
Maryland		13		9		44	%		14		10		40	%		13		9		44	%
Virginia		9		7		29	%		8		8		0	%		9		9		0	%
Florida		19		15		27	%		18		15		20	%		16		14		14	%
East		41		31		32	%		40		33		21	%		38		32		19	%
Total		159		156		2	%		165		163		1	%		168		164		2	%

Backlog

	June 30,
	2016						2015						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		419	$	129,591	$	309.3		353	$	102,062	$	289.1		19	%		27	%		7	%
California		562		360,450		641.4		379		217,806		574.7		48	%		65	%		12	%
Nevada		399		138,604		347.4		287		114,305		398.3		39	%		21	%		(13	)%
Washington		262		127,968		488.4		161		68,564		425.9		63	%		87	%		15	%
West		1,642		756,613		460.8		1,180		502,737		426.0		39	%		50	%		8	%
Colorado		1,126		546,356		485.2		917		428,450		467.2		23	%		28	%		4	%
Utah		161		59,133		367.3		113		39,681		351.2		42	%		49	%		5	%
Mountain		1,287		605,489		470.5		1,030		468,131		454.5		25	%		29	%		4	%
Maryland		131		61,623		470.4		83		42,326		510.0		58	%		46	%		(8	)%
Virginia		144		76,278		529.7		86		44,964		522.8		67	%		70	%		1	%
Florida		241		107,679		446.8		179		71,180		397.7		35	%		51	%		12	%
East		516		245,580		475.9		348		158,470		455.4		48	%		55	%		5	%
Total		3,445	$	1,607,682	$	466.7		2,558	$	1,129,338	$	441.5		35	%		42	%		6	%

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

	June 30,				%
	2016		2015		Change
Unsold:
Completed		100		229		(56	)%
Under construction		263		459		(43	)%
Total unsold started homes		363		688		(47	)%
Sold homes under construction or completed		2,535		1,787		42	%
Model homes		289		281		3	%
Total homes completed or under construction		3,187		2,756		16	%

Lots Owned and Optioned (including homes completed or under construction)

	June 30, 2016						June 30, 2015
	Lots Owned		Lots Optioned		Total		Lots Owned		Lots Optioned		Total		Total % Change
Arizona		1,565		259		1,824		1,972		40		2,012		(9	)%
California		1,834		79		1,913		1,625		55		1,680		14	%
Nevada		2,087		67		2,154		1,683		420		2,103		2	%
Washington		816		35		851		825		129		954		(11	)%
West		6,302		440		6,742		6,105		644		6,749		(0	)%
Colorado		3,937		1,423		5,360		3,878		821		4,699		14	%
Utah		424		-		424		535		-		535		(21	)%
Mountain		4,361		1,423		5,784		4,413		821		5,234		11	%
Maryland		297		168		465		385		325		710		(35	)%
Virginia		498		107		605		588		319		907		(33	)%
Florida		1,038		512		1,550		910		160		1,070		45	%
East		1,833		787		2,620		1,883		804		2,687		(2	)%
Total		12,496		2,650		15,146		12,401		2,269		14,670		3	%

M.D.C. HOLDINGS, INC.

Other Financial Data

Selling, General and Administrative Expense

	Three Months Ended June 30,								Six Months Ended June 30,
	2016			2015			Change		2016			2015			Change
	(Dollars in thousands)								(Dollars in thousands)
General and administrative expenses	$	31,414		$	26,377		$	5,037	$	62,880		$	52,290		$	10,590
General and administrative expenses as a percentage of home sale revenues		5.5	%		5.7	%		(20) bps		6.5	%		6.2	%		30 bps

Marketing expenses	$	14,433		$	13,191		$	1,242	$	26,466		$	25,318		$	1,148
Marketing expenses as a percentage of home sale revenues		2.5	%		2.9	%		(40) bps		2.7	%		3.0	%		(30) bps

Commissions expenses	$	18,593		$	15,213		$	3,380	$	31,371		$	27,705		$	3,666
Commissions expenses as a percentage of home sale revenues		3.3	%		3.3	%		0 bps		3.2	%		3.3	%		(10) bps
Total selling, general and administrative expenses	$	64,440		$	54,781		$	9,659	$	120,717		$	105,313		$	15,404
Total selling, general and administrative expenses as a percentage of home sale revenues		11.3	%		11.9	%		(60) bps		12.5	%		12.6	%		(10) bps

Capitalized Interest

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
	(Dollars in thousands)
Homebuilding interest incurred	$	13,106		$	13,305		$	26,324		$	26,556
Less: Interest capitalized		(13,106	)		(13,305	)		(26,324	)		(26,556	)
Homebuilding interest expensed	$	-		$	-		$	-		$	-

Interest capitalized, beginning of period	$	79,783		$	79,991		$	77,541		$	79,231
Plus: Interest capitalized during period		13,106			13,305			26,324			26,556
Less: Previously capitalized interest included in home and land cost of sales		(15,739	)		(14,439	)		(26,715	)		(26,930	)
Interest capitalized, end of period	$	77,150		$	78,857		$	77,150		$	78,857

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M.D.C. HOLDINGS, INC. Reports