M.D.C. Holdings Q3 Profit Climbs On Higher Home Deliveries, Price - Quick Facts

(RTTNews) - Home builder M.D.C. Holdings, Inc. (MDC) on Tuesday reported that third-quarter net income surged 78 percent to $26.4 million or $0.54 per share from $14.8 million or $0.30 per share a year ago.

Total home and land sale revenues increased to $578.01 million from last year's $455.65 million.

Home sale revenues went up 27 percent to $575.7 million from $454.7 million last year. Average sales price grew 6 percent to $445,300, and homes delivered went up 20 percent to 1,293 units.

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.

The dollar value of net new orders for the 2016 third quarter increased 17 percent year-over-year to $570.3 million. The improvement was the result of a 17 percent increase in the number of homes sold.

The backlog value at the end of the 2016 third quarter was up 37 percent year-over-year to $1.61 billion, with a 33 percent increase in the number of units in backlog.

Larry Mizel, MDC's Chairman and Chief Executive Officer, stated, "Our order results included an increased contribution from our new, more affordable collection of home plans, which are still in the early stages of rollout. With a simpler design, these new plans should ultimately have a positive impact on our overall construction cycle times, which remain a key focus area for the Company as we close out the year."