Core Viewpoint - Richmond American Homes has launched the Seasons at Riverton community in Plumas Lake, California, offering a variety of ranch and two-story floor plans aimed at making homeownership more accessible for diverse buyers [1][3]. Group 1: Company Overview - M.D.C. Holdings, Inc. was founded in 1972 and operates as one of the largest homebuilders in the United States, with a commitment to quality and value in home construction [4]. - The company has assisted over 240,000 homebuyers in achieving homeownership since 1977, reflecting its significant presence in the housing market [4]. - Richmond American Homes operates in multiple states, including California, Texas, and Florida, and offers additional services such as mortgage lending and insurance through its subsidiaries [4]. Group 2: Product Offering - The Seasons at Riverton features seven floor plans from the Seasons™ Collection, including the Ammolite model, which is designed to maximize living space [2][3]. - Homes are priced from the $500,000s and can accommodate up to 6 bedrooms with a total area of approximately 3,040 square feet [3]. - The community includes options for 3-car and RV garages, and is strategically located near highways, schools, shops, and restaurants, enhancing its appeal to potential buyers [3].

Group 1 - The grand opening of Autumnwood at Harvest at Limoneira is scheduled for August 10, 2024, in Santa Paula, California, featuring four two-story floor plans designed for modern homebuyers [1][3] - The new community offers homes starting from the $700s, with options ranging from 3 to 6 bedrooms and sizes approximately between 1,670 to 1,960 square feet [4] - Autumnwood includes resort-style amenities such as a community clubhouse, pool, fitness center, trails, parks, and gardens, and is conveniently located near shopping, dining, schools, and cultural attractions [4] Group 2 - M.D.C. Holdings, Inc., founded in 1972, is one of the largest homebuilders in the nation, with its subsidiaries, Richmond American Homes, having assisted over 240,000 homebuyers since 1977 [5] - The company operates in multiple states, including California, Texas, and Florida, and offers mortgage lending, insurance, and title services through its subsidiaries [5]

Homebuilding Performance - Homebuilding revenues for Q2 2024 reached $1.41 billion, a 28% increase from $1.10 billion in Q2 2023[105]. - Gross profit for homebuilding was $255.3 million, with a gross margin of 18.1%, up from 16.4% in the prior year[105]. - Homebuilding pretax income decreased by 77% year-over-year to $20.8 million, primarily due to increased selling, general and administrative expenses[113]. - Homebuilding pretax income for the first half of 2024 was $129.3 million, a 29% decrease from $183.1 million in the same period last year[115]. - New home deliveries for the three months ended June 30, 2024, totaled 2,533 homes, generating home sale revenues of $1,411,446, an increase of 26% year-over-year[119]. - The average selling price of homes delivered in the West segment increased by 8% to $570.8 thousand, while the East segment saw a decrease of 6% to $430.6 thousand[120]. - Gross margin from home sales for the three months ended June 30, 2024, increased by 170 basis points year-over-year to 18.1%[121]. - The company experienced an increase in the number of homes under construction, contributing to higher new home deliveries and improved absorption rates[120]. - Total homes in backlog decreased by 44% to 1,700 homes with a total value of $1.01 billion, down from $1.76 billion a year ago[139]. - The total number of unsold started homes increased by 85% to 3,982 homes, while sold homes under construction or completed decreased by 37% to 1,697 homes[140]. - The monthly absorption rate for the total segment was 3.69 homes, with a 20% increase in net new orders compared to the previous year[131]. - The average active subdivisions for the total segment decreased by 15% to 198, indicating a shift in consumer preference[132]. - The average active subdivisions for the West segment decreased by 26% to 105, impacting net new orders[132]. Financial Performance - Net income for Q2 2024 was $25.1 million, a 73% decrease compared to $93.5 million in Q2 2023[110]. - The effective income tax rate increased to 42.1% in Q2 2024 from 17.3% in Q2 2023, impacting net income[110]. - Total liquidity at the end of Q2 2024 was $2.19 billion, with cash and cash equivalents of $1.10 billion[109]. - General and administrative expenses increased to $145.3 million for the three months ended June 30, 2024, compared to $52.2 million in the same period last year[126]. - The total selling, general, and administrative expenses as a percentage of home sale revenues increased to 15.4% for the three months ended June 30, 2024, from 9.7% in the prior year[126]. - For the six months ended June 30, 2024, net cash provided by operating activities was $50.4 million, a significant decrease from $651.9 million in the prior year period[170]. - The net income for the six months ended June 30, 2024, was $121.0 million, compared to $174.2 million in the same period of 2023[170]. - Cash used in financing activities increased to $668.1 million for the six months ended June 30, 2024, primarily due to a distribution to Parent of $611.4 million related to the Merger[172]. Financial Services - Financial services pretax income increased by 8% year-over-year to $22.6 million, driven by other financial services operations[110]. - Financial services revenues for the three months ended June 30, 2024, increased by 15% to $37.58 million compared to $32.62 million in the same period of 2023[143]. - Mortgage operations revenue rose by 2% to $23.15 million, while other financial services revenue surged by 46% to $14.43 million[143]. - Total financial services pretax income increased by 8% to $22.64 million, driven by strong performance in other financial services segments[143]. - Total originations for loans increased by 46% to 1,928 loans in the three months ended June 30, 2024, compared to 1,320 loans in the same period of 2023[145]. - The capture rate as a percentage of all homes delivered improved to 76%, up from 66% year-over-year[145]. - The average FICO score for loans increased to 744, compared to 739 in the same period of 2023[145]. Costs and Expenses - The company incurred $27.6 million in transaction costs related to the merger during Q2 2024[110]. - Marketing expenses for the three months ended June 30, 2024, rose to $29.1 million, driven by increased salary-related expenses due to headcount growth[127]. - Commissions expenses increased to $42.2 million for the three months ended June 30, 2024, reflecting higher home sale revenues[127]. - Total inventory impairments recognized for the three months ended June 30, 2024, amounted to $4.55 million, down from $13.5 million in the prior year[123]. Assets and Liquidity - Total homebuilding assets decreased by $614.1 million, or 12%, from December 31, 2023, to June 30, 2024, primarily due to a decrease in the Corporate Segment[116]. - The company had outstanding senior notes totaling $1.50 billion as of June 30, 2024, with future interest payments of $1.22 billion[153]. - Cash deposits amounted to $35.5 million, with letters of credit securing option contracts for 5,598 lots valued at $664.6 million[153]. - The Revolving Credit Facility was amended to increase the aggregate commitment from $1.0 billion to $1.2 billion, with a maturity extension to December 18, 2025[158]. - As of June 30, 2024, the availability under the Revolving Credit Facility was approximately $1.09 billion, with outstanding letters of credit of $31.1 million[163]. - The Mortgage Repurchase Facility's total capacity was $150 million as of June 30, 2024, with a termination date of August 12, 2024[165]. - HomeAmerican's mortgage loans held-for-sale had an aggregate principal balance of $302.4 million as of June 30, 2024[176]. - Forward sales of securities totaled $500.0 million as of June 30, 2024, used to hedge changes in fair value of interest rate lock commitments[176]. - The Revolving Credit Facility was amended to transition to an interest rate based on the Secured Overnight Financing Rate (SOFR) effective April 11, 2023[159]. - The company believes it was in compliance with the financial covenants of the Revolving Credit Facility as of June 30, 2024[162].

Core Viewpoint - M.D.C. Holdings, Inc. intends to delist its 6.000% Senior Notes due 2043 from the New York Stock Exchange and deregister all outstanding issuances of its senior notes from the Securities and Exchange Commission, with the last trading day expected to be June 13, 2024 [1]. Group 1 - M.D.C. Holdings, Inc. has notified the NYSE of its intention to delist its senior notes and deregister them from the SEC [1]. - The company does not plan to list or register the notes on another national securities exchange or for quotation on another medium [1]. - The actions taken by the company do not affect the terms of its outstanding senior notes [1]. Group 2 - M.D.C. Holdings, Inc. was founded in 1972 and is one of the largest homebuilders in the nation [2]. - The company's homebuilding subsidiaries, operating under the name Richmond American Homes, have assisted over 240,000 homebuyers since 1977 [2]. - The company offers mortgage lending, insurance, and title services through its subsidiaries [2].

Financial Performance - For the three months ended March 31, 2024, the company reported net income of $95.8 million, or $1.25 per diluted share, representing a 19% increase from $80.7 million, or $1.08 per diluted share, in the same period last year[115]. - Homebuilding pretax income increased by 19% year-over-year to $108.6 million, driven by a 30% increase in home sale revenues and a 70 basis point increase in gross margin from home sales[117]. - Gross home sale revenues for the first quarter of 2024 reached $1.325 billion, a 30% increase compared to $1.020 billion in the prior year quarter[120]. - The financial services segment's pretax income decreased by 2% year-over-year to $17.7 million, impacted by increased salary-related expenses[115]. - Financial services revenues grew by 6% to $31.4 million in Q1 2024, driven by a 7% increase in mortgage operations revenue[139]. Market Conditions - Net orders increased by 40% and gross sales increased by 15% in the first quarter of 2024 compared to the prior year quarter, indicating improved market conditions[110]. - The cancellation rate as a percentage of gross sales decreased to 15% in Q1 2024 from 30% in Q1 2023, indicating improved demand[135]. - The West segment saw a 44% increase in home sale revenues, contributing significantly to the overall growth in homebuilding income[118]. Inventory and Construction - The number of homes in backlog decreased by 32% to 1,965 homes with a total value of $1.19 billion as of March 31, 2024, down from $1.66 billion in 2023[136]. - Total unsold started homes increased by 126% to 3,465 as of March 31, 2024, compared to 1,532 in the same period last year[137]. - Homes completed or under construction increased by 29% to 5,903 as of March 31, 2024, compared to 4,585 in the previous year[137]. - Total inventory impairments decreased to $5.9 million in Q1 2024 from $7.8 million in Q1 2023, reflecting a reduction in impaired subdivisions from 3 to 1[125]. Expenses and Cash Flow - General and administrative expenses increased by 55% to $66.3 million in Q1 2024, representing 5.0% of home sale revenues, up from 4.2% in Q1 2023[127]. - Total selling, general and administrative expenses rose to $134.2 million in Q1 2024, accounting for 10.1% of home sale revenues, compared to 9.4% in Q1 2023[127]. - For the three months ended March 31, 2024, net cash provided by operating activities was $177.5 million, down from $426.2 million in the prior year period[171]. - Net cash used in investing activities was $3.0 million, significantly lower than $244.8 million in the prior year, primarily due to no purchases or maturities of marketable securities in 2024[172]. - Net cash used in financing activities decreased to $73.2 million from $93.5 million in the prior year, driven by reduced payments on the mortgage repurchase facility[173]. Debt and Liquidity - The company ended the quarter with total cash and cash equivalents and marketable securities of $1.82 billion, and total liquidity of $2.90 billion, with a debt-to-capital ratio of 30.5%[113]. - As of March 31, 2024, the company had outstanding senior notes totaling $1.50 billion, with future interest payments amounting to $1.22 billion[150]. - The company has a Revolving Credit Facility with a commitment of $1.2 billion, with availability of approximately $1.08 billion as of March 31, 2024[162]. - The Mortgage Repurchase Facility had a total capacity of $200 million, with $198.7 million of mortgage loans obligated for repurchase as of March 31, 2024[164]. Shareholder Returns - Cash dividends paid increased to $0.55 per share for the three months ended March 31, 2024, compared to $0.50 per share in the same period last year[168]. - The company was authorized to repurchase up to 4.0 million shares of common stock but did not repurchase any shares during the three months ended March 31, 2024[169]. Acquisition - On April 19, 2024, the company completed its acquisition by Sekisui House, becoming an indirect, wholly-owned subsidiary[114].

Seasons at Blackhawk is coming soonTUCSON, Ariz., April 18, 2024 /PRNewswire/ -- Richmond American Homes of Arizona, Inc., a subsidiary of M.D.C. Holdings, Inc. (NYSE: MDC), is excited to announce that Seasons at Blackhawk (RichmondAmerican.com/SeasonsAtBlackhawk) is opening soon in Tucson. Boasting a prime location just nine miles from downtown Tucson, this vibrant new neighborhood showcases ranch and two-story floor plans from the builder's popular Seasons™ Collection, designed to put homeownership within ...

 Tour the new Arlington model at Independence this SaturdayELIZABETH, Colo., April 15, 2024 /PRNewswire/ -- Richmond American Homes of Colorado, Inc., a subsidiary of M.D.C. Holdings, Inc. (NYSE: MDC), is excited to announce the debut of the impressive, ranch-style Arlington model home at Independence (RichmondAmerican.com/Independence) in Elizabeth. This dynamic neighborhood boasts an array of single- and two-story floor plans with the versatile layouts and designer details today's buyers are seeking.Grand ...

Homebuilding Performance - Homebuilding net orders increased by 42% in 2023 compared to the prior year, driven by improved consumer confidence and stabilized mortgage rates [147]. - Home sale revenues for 2023 were $4.52 billion, a 19% decrease from $5.59 billion in 2022, with a gross margin decline of 460 basis points to 17.8% [145][151]. - Homebuilding pretax income decreased by 35% to $450 million, primarily due to lower home sale revenues and gross margin declines [154]. - For the year ended December 31, 2023, total new home deliveries decreased by 15% to 8,228 homes compared to 9,710 homes in 2022 [1]. - The average selling price of homes delivered decreased by 5% to $549.4 thousand in 2023 from $575.3 thousand in 2022 [1]. - The average selling price of homes in the West segment decreased by 8% to $544.4 thousand in 2023, while the Mountain and East segments saw decreases of 22% and 26%, respectively [1]. - The company experienced a shift in closing mix towards more affordable products, impacting the average selling price negatively [160]. - For the year ended December 31, 2023, the total number of homes sold increased to 7,144, with a total dollar value of $3.98 billion, reflecting a 42% increase in net new orders compared to 5,044 homes sold in 2022 [174]. - The backlog at December 31, 2023, consisted of 1,890 homes valued at $1.16 billion, representing decreases of 36% in number and 34% in value from the previous year [179]. - The total unsold started homes increased to 3,048, a 109% rise from 1,459 in 2022, while sold homes under construction or completed decreased by 34% to 1,812 [180]. Financial Performance - The company reported a net income of $401 million, or $5.29 per diluted share, representing a 29% decrease from $562 million, or $7.67 per diluted share, in the previous year [151]. - Total cash and cash equivalents and marketable securities at year-end 2023 were $1.72 billion, with total liquidity of $2.77 billion and a debt-to-capital ratio of 30.7% [148]. - The financial services segment saw a pretax income increase of 11% to $76 million, attributed to reduced salary expenses and increased interest income [152]. - General and administrative expenses decreased by 30% to $203.9 million in 2023 from $292.3 million in 2022, attributed to lower stock-based compensation and reduced headcount [170]. - The company recorded an income tax provision of $125.1 million for 2023, with an effective tax rate of 23.8%, down from 26.0% in 2022 [2]. - The company paid dividends of $2.10 per share in 2023, an increase from $2.00 per share in 2022 [5]. - For the year ended December 31, 2023, net cash provided by operating activities was $561.6 million, a decrease from $905.6 million in the prior year, primarily driven by a decline in net income from $562.1 million to $401.0 million [209]. - The company recorded a net cash used in financing activities of $105,271 in 2023, an improvement from $206,125 in 2022 [268]. Inventory and Assets - Total homebuilding assets increased by 3% to $5.1 billion, with notable increases in the East segment due to more housing completed and under construction [156]. - The company’s total inventories as of December 31, 2023, were approximately $3.3 billion, down from $3.52 billion in 2022 [260]. - Total inventory impairments for the year ended December 31, 2023, were $29.7 million, significantly lower than $121.9 million in 2022 [168]. - The total carrying amount of senior notes as of December 31, 2023, was $1.48 billion, compared to $1.12 billion in 2022, indicating an increase of approximately 32.7% [339]. - As of December 31, 2023, the company reported total assets of approximately $5.63 billion, an increase from $5.36 billion in 2022 [260]. Market and Strategic Developments - A proposed merger is expected to close in the first half of 2024, pending stockholder and regulatory approvals [150]. - The company entered into a merger agreement on January 17, 2024, with SH Residential Holdings, LLC, indicating a strategic move for market expansion [272]. - The number of active subdivisions increased slightly to 226 in 2023, up from 225 in 2022, with a notable increase in the West segment [174]. - The company has not identified any variable interest entities (VIEs) for consolidation as of December 31, 2023 [288]. Mortgage and Financing Activities - Total loan originations decreased by 8% to 5,430 loans in 2023, with principal amounting to $2,448,426, down 11% from 2022 [1]. - The mix of mortgage loan origination shifted, with FHA loans increasing to 26%, a 13% rise, while conventional loans decreased to 55%, down 11% [1]. - The average interest rate for fixed-rate mortgage loans held for sale was 5.96% as of December 31, 2023 [242]. - HomeAmerican had $205.0 million in mortgage loans obligated for repurchase under the Mortgage Repurchase Facility as of December 31, 2023 [6]. - HomeAmerican's mortgage loans in process with interest rate lock commitments not yet closed totaled $229.2 million, with $227.9 million not yet committed to a mortgage purchaser [237].

Financial Data and Key Metrics Changes - The company reported net income of $107.3 million or $1.40 per diluted share, representing a 26% decrease from the third quarter of 2022 [32] - Pre-tax income from homebuilding operations was $127.4 million, a 24% decrease year-over-year, primarily due to lower home sale revenues and a 350 basis point decrease in gross margin from home sales [32][114] - The effective tax rate for the quarter was approximately 23%, slightly up from 22.3% in the prior year quarter [6] Business Line Data and Key Metrics Changes - The average selling price of homes delivered decreased by 6% year-over-year to $552,000, driven by increased incentives and a shift in the mix of closings [33] - The average sales price of net orders for the third quarter was $570,000, a 2% increase from the second quarter of 2023 [34] - The company delivered 1,968 homes during the quarter, aligning with the estimated range of 1,850 to 2,000 closings [89] Market Data and Key Metrics Changes - The company experienced a net absorption pace of 2.4 homes per community per month across all regions, indicating solid demand trends despite rising mortgage rates [2][4] - The gross order trends followed a typical seasonal pattern, with July being the best month, followed by a slowdown in August and a rebound in September [4] - The company ended the quarter with 22,353 lots controlled and had 6,448 lots in various stages of due diligence [8] Company Strategy and Development Direction - The company is focused on investing in homebuilding operations and growing its local market presence through ongoing land acquisition efforts [86] - The strategy includes maintaining a healthy level of spec home production to ensure sufficient inventory for the spring selling season [87] - The company aims to address affordability concerns through financing incentives, which have proven effective in attracting buyers [31][116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable industry outlook and the company's strong balance sheet, positioning it well for the remainder of 2023 and into 2024 [3][110] - The company anticipates that the current dynamics in the housing market will continue, with a focus on the more affordable segments expected to see the strongest demand [29] - Management noted that while rising interest rates may pose challenges, the ability to offer incentives remains a competitive advantage [116] Other Important Information - The company ended the quarter with nearly $1.8 billion in cash and short-term investments, with total liquidity exceeding $2.9 billion [8] - The gross margin from home sales for the quarter was 19.2%, down from 22.7% in the prior year quarter, but improved sequentially by 280 basis points [114] Q&A Session Summary Question: What are the October demand trends and regional performance? - Management indicated that October demand has been healthy and in line with normal seasonal patterns, with no specific location disproportionately impacted [60] Question: How does the company view the balance between margins and sales incentives? - Management emphasized the importance of maintaining a balance between sales velocity and margins, noting that they do not want to engage in aggressive discounting that could demoralize sales teams [45] Question: What is the current status of land acquisition and pricing? - The company reported a significant increase in land acquisition activity, with a focus on underwriting deals that can achieve high teen margins [128] Question: How does the company plan to address rising interest rates and their impact on sales? - Management acknowledged that rising interest rates may necessitate increased incentives, but they remain confident in their ability to manage through these challenges [141]

Financial Performance - Home sale revenues for Q3 2023 were $1,087.1 million, a 23% decrease from $1,407.6 million in Q3 2022[100] - Gross profit for Q3 2023 was $208.2 million, with a gross margin of 19.2%, down from 22.7% in Q3 2022, reflecting a 350 basis point decrease[100] - Net income for Q3 2023 was $107.3 million, or $1.40 per diluted share, a 26% decrease compared to $144.4 million, or $1.98 per diluted share, in Q3 2022[105] - The homebuilding pretax income for Q3 2023 was $127.4 million, a 24% decrease from $168.2 million in Q3 2022, primarily due to a 23% decline in home sale revenues[107] - For the nine months ended September 30, 2023, net income was $281.5 million, or $3.73 per diluted share, a 42% decrease from $482.4 million, or $6.59 per diluted share, in the same period of the prior year[106] Revenue and Sales Trends - For the three months ended September 30, 2023, total home sale revenues decreased by 18% to $1,087,050,000 compared to $1,407,642,000 in the same period of 2022[113] - The West segment reported a 9% decrease in home sale revenues to $651,472,000, while the Mountain and East segments saw decreases of 32% and 23%, respectively[113] - For the nine months ended September 30, 2023, total home sale revenues decreased by 19% to $3,210,536,000 from $4,098,985,000 in the prior year[113] - The average selling price of homes delivered decreased by 6% to $552,400 from $589,700 year-over-year[113] - The average selling price for homes in the West segment decreased to $539,100, while the Mountain and East segments reported average prices of $634,900 and $462,300, respectively[113] Orders and Backlog - The company experienced a 467% increase in net orders in Q3 2023 compared to the prior year quarter, driven by strong demand for quick move-in homes[101] - As of September 30, 2023, the company had 2,775 homes in backlog valued at $1.66 billion, representing a 48% decrease in both the number and dollar value of homes in backlog from September 30, 2022[136] - The cancellation rate as a percentage of gross sales decreased to 24% for the three months ended September 30, 2023, down from 81% in the same period of 2022, indicating improved demand[133] Construction and Inventory - The number of new homes delivered decreased by 18% to 1,968 homes for the three months ended September 30, 2023, compared to 2,387 homes in 2022[113] - The total number of unsold started homes increased to 2,681 as of September 30, 2023, a 148% increase compared to 1,082 in the same period of 2022[137] - The number of homes completed or under construction decreased by 13% to 5,818 as of September 30, 2023, compared to 6,708 in the same period of 2022[137] - The company experienced a 173% increase in homes under construction, rising to 2,445 as of September 30, 2023, compared to 895 in the same period of 2022[137] Financial Services - For the three months ended September 30, 2023, total financial services revenues decreased by 30% to $23.8 million compared to $34.1 million in the same period of 2022[139] - Mortgage operations pretax income for the three months ended September 30, 2023, decreased by 45% to $3.1 million from $5.7 million in Q3 2022[139] - Total originations of mortgage loans for the three months ended September 30, 2023, decreased by 15% to 1,225 loans compared to 1,447 loans in the same period of 2022[142] - For the nine months ended September 30, 2023, financial services pretax income increased by 3% to $51.4 million compared to $49.6 million in the prior year period[140] Cash and Liquidity - The company reported a total cash and cash equivalents and marketable securities of $1.78 billion, with total liquidity of $2.93 billion as of Q3 2023[104] - During the nine months ended September 30, 2023, net cash provided by operating activities was $623.1 million, compared to $344.0 million in the prior year period[170] - Net cash used in financing activities decreased to $123.6 million for the nine months ended September 30, 2023, from $178.4 million in the same period of 2022[172] - The company had forward sales of securities totaling $366.0 million as of September 30, 2023, compared to $323.0 million at December 31, 2022[178] Debt and Capital Structure - The company ended Q3 2023 with a debt-to-capital ratio of 31.2% and no senior note maturities until 2030[104] - The company had outstanding senior notes totaling $1.5 billion as of September 30, 2023, with no payments due within the next 12 months[152] - The company has an effective shelf registration statement allowing it to issue up to $5.0 billion in equity, debt, or hybrid securities, with the full amount remaining available[150] - The availability under the Revolving Credit Facility was approximately $1.14 billion as of September 30, 2023[163] Operational Efficiency - Total selling, general and administrative expenses for the three months ended September 30, 2023 decreased by $40,124,000 to $101,311,000 compared to $141,435,000 in 2022[125] - Inventory impairments recognized for the three months ended September 30, 2023 totaled $6,200,000, down from $28,415,000 in the same period of 2022[123] - Backlog conversion rates improved due to an increase in the number of homes sold and closed, aided by a decrease in construction cycle times year-over-year[113] - The average monthly absorption rate for the total segment was 2.39 for the three months ended September 30, 2023, compared to 0.46 in the same period of 2022, indicating a significant increase in sales activity[129]