M.D.C. Holdings, Inc. (NYSE: MDC), parent of Richmond American Homes, was out Monday with selected preliminary results for the 2019 second quarter in anticipation of investor presentations that are due to take place before the company reports results for the quarter later this month. The results are preliminary and unaudited.
The results reported included:
- Net new home orders increased 32% to 2,273 from 1,721
- Monthly sales absorption pace increased 12% to 4.1; highest second quarter absorption pace since 2005
- Ending active subdivisions increased 14% to 187 from 164
- New home deliveries of 1,514 compared with 1,512 a year ago
- Backlog conversion of 43%; high-end of range previously provided (41% to 43%)
- Average sales price of approximately $484,000
- Homes in backlog increased 7% to 4,293 from 3,998
- Largest number of homes in backlog since 2006
- Gross margins expected to exceed 19% (excluding impairments)
Larry A. Mizel, MDC's chairman and CEO, stated, "We are encouraged by the positive momentum generated by the year-over-year improvement in both our community count and our absorption rate. These improvements resulted in a 32% year-over-year increase in our 2019 second quarter net new home orders, which was our largest quarterly percentage increase since 2012. Importantly, the growth in our new home orders has been complemented by strong gross margins, which are expected to exceed 19% in the second quarter. Given the success of our spring selling season, we believe that we are well positioned for the remainder of 2019."
MDC will release its 2019 second quarter earnings before the market opens on Wednesday, July 31, 2019.