M.D.C. Holdings

2017 Performance Final Grade: 69.05/100
2016 Final Grade: 69.1/100
C+/B-

30.48/40

Change YoY
Net debt-to-capital 21.9% -560bps
Pretax home building income
(in millions)
$185.9 61.2%
Total SG&A/Total revenue 12.5% --
Total SG&A
(in millions)
$322 14.4%
Return on invested capital 6.2% 160bps
Return on equity 10.4% 240bps
Total shareholder return 41% --
EPS $2.54 36.6%

12.38/20

Change YoY
Community count 151 -13
Share of lots optioned to total controlled 32.7% 67.4%

10.48/20

Change YoY
Home building gross margins 16.6% 50bps
Sales per month to break even
(per community)
2.03 --
Revenue per employee
(in millions)
$1.7 -2.1%
Change YoY
Closings 5,541 9.6%
Sales velocity
(per community per month)
3.2 12.7%
Unit backlog 3,159 9.5%


Total revenue (in millions):$2,577
HB revenue (in millions): $2,498
Debt per share: $0.02
Equity per basic share: $0.03
HB pretax margin: 7.4%
Backlog value (in millions): $1,602.0
Inventory (in millions):$1,829.7
Lot supply (in years): 3.5

Larry A. Mizel, M.D.C.’s (NYSE: MDC) chairman and CEO, summed up the year: “Our strong performance in the 2017 full year is evidenced not only by double-digit percentage increases for home sale revenues and net income, but also by the steps we took to strengthen our financial position, enhance shareholder value, and prepare for future growth.” Mizel believes the “robust demand” is partly the result of the firm’s focus on affordable product.