By the Numbers: M.D.C. Holdings, Fourth Quarter 2011

Behind the Numbers:

Write-downs for asset impairments and charges for paying off debt helped wipe out M.D.C.’s chance to end the fourth quarter in the black. “Excluding debt extinguishment and land-related charges, we achieved profitability, thereby providing strong evidence of the meaningful progress we have made in implementing company initiatives over the past few quarters,” CEO Larry A. Mizel said. M.D.C. changed its strategies in the second quarter of last year, moving away from starting homes that haven’t been sold yet and stopping them after the drywall stage so potential buyers could personalize the homes. Now the company starts homes when they’ve been ordered by a buyer. The change improved margins by 200 basis points, the company said. Because M.D.C. paid off $500 million of its debt, it will pay $30 million less in interest a year, also helping future profits, Mizel said.

M.D.C. Holdings' fourth quarter and fiscal year ended December 31.