Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q (Address of principal executive offices) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-8951 M.D.C. HOLDINGS, INC. (Exact name of Registrant as specifi ...

Financial Data and Key Metrics Changes - The company generated net income of $80.7 million, or $1.08 per diluted share, representing a 46% decrease from the first quarter of 2022 [9] - Gross margin from home sales decreased by 890 basis points year-over-year to 16.8% [12] - Total dollar SG&A expense for the first quarter decreased by $34.3 million from the previous year, driven by decreased general and administrative expenses [13] - The average selling price of homes delivered decreased by 1% to $551,000, below the midpoint of previously provided guidance [11] Business Line Data and Key Metrics Changes - The company delivered 1,851 homes during the quarter, a 17% decrease year-over-year, but exceeded previously estimated guidance [35][122] - The dollar value of net orders decreased by 48% year-over-year to $957.3 million, driven by a 44% decrease in net unit orders [38] - The company started 1,666 homes during the quarter, up 170% sequentially from the fourth quarter [41] Market Data and Key Metrics Changes - The company ended the quarter with over $1.6 billion in cash and short-term investments, total liquidity of $2.8 billion, and no senior note maturities until January 2030 [16] - Existing home inventory remains constrained, with only 980,000 homes for sale nationally, representing a 2.6 months supply [99] Company Strategy and Development Direction - The company plans to maintain a higher level of speculative inventory to appeal to quick move-in buyers, while still believing a build-to-order model is prudent long-term [32] - The company is optimistic about lower incentive levels on spec inventory moving forward, as design teams are enhancing these homes with popular options and upgrades [36] - The strategic decision to build more spec inventory is already paying dividends, with over one-third of first-quarter deliveries sold and closed during the quarter [136] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong balance sheet and positive fundamentals in the homebuilding industry [6] - The company noted a rebound in order activity across homebuilding operations, with all three segments performing well [7] - Management acknowledged heightened risks of underperformance due to increased economic volatility but remains confident in the company's ability to adapt [12][29] Other Important Information - The company has seen a significant improvement in market conditions in the first quarter of 2023 compared to the fourth quarter of 2022, with stabilized mortgage rates and improved buyer confidence [93] - The company has a strong financial position, with stockholders' equity over $3.1 billion and a book value per share of $42.83 [111] Q&A Session Summary Question: What is the outlook for the interest income and its sustainability? - Management indicated that interest income jumped to $13.5 million, implying an 8% annualized yield, and discussed the sustainability of these investments [51] Question: How do you see the level of speculative orders moving forward? - Management noted that two-thirds of orders were started as specs, indicating a preference for quick move-in homes, and this trend is expected to continue [69] Question: Can you elaborate on the gross margin and its future stabilization? - Management acknowledged that gross margin came in below expectations but expressed hope for stabilization and potential improvement as construction costs decrease [145][159] Question: What is the company's strategy regarding land acquisition and pricing? - Management reported seeing softness in land prices and terms, indicating a favorable environment for land acquisition moving forward [55][78]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-8951 M.D.C. HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Delaware 84-0622967 ( ...

Financial Performance - Home sale revenues for 2022 reached $5.59 billion, a 9% increase from $5.10 billion in 2021[107] - Net income for 2022 was $562.1 million, or $7.67 per diluted share, representing a 2% decrease compared to $573.7 million, or $7.83 per diluted share, in 2021[113] - Homebuilding pretax income increased by $31.8 million, or 5%, to $691.5 million in 2022, driven by a 9% increase in home sale revenues[115] - The effective tax rate increased to 26.0% in 2022 from 23.7% in the prior year, impacting net income[113] - Total financial services revenues fell by 13% to $131.7 million in 2022, down from $152.2 million in 2021[145] - Basic Earnings Per Common Share for 2022 was $7.87, a decrease of 3.2% from $8.13 in 2021[291] - Diluted Earnings Per Common Share for 2022 was $7.67, down from $7.83 in 2021, reflecting a slight decline[291] - Net income attributable to common stockholders for 2022 was $559,396, compared to $570,680 in 2021, indicating a decrease of 2.3%[291] Cash Flow and Liquidity - The company ended 2022 with total cash and cash equivalents of $1.28 billion and total liquidity of $2.43 billion[111] - The company generated cash flow from operating activities of $905.6 million in 2022, a significant improvement from a cash outflow of $207.99 million in 2021[107] - For the year ended December 31, 2022, net cash provided by operating activities was $905.6 million, a significant increase from net cash used of $208.0 million in the prior year[172] - Cash used to increase land and land under development decreased to $95.4 million in 2022 from $502.8 million in 2021, driven by the acquisition of 4,377 lots compared to 15,435 lots in the prior year[172] - Net cash used in investing activities was $585.9 million for the year ended December 31, 2022, compared to $27.7 million in the prior year, primarily due to $656.8 million used for the purchase of marketable securities[173] - Net cash used in financing activities was $206.1 million in 2022, a decrease from net cash provided of $335.2 million in the prior year, largely due to the absence of proceeds from the issuance of senior notes[174] Inventory and Deliveries - For the year ended December 31, 2022, total new home deliveries decreased to 9,710 homes, down 3% from 9,982 homes in 2021[119] - The total number of unsold homes completed increased by 1,484% to 396 homes, while homes under construction rose by 241% to 1,063 homes[143] - The total inventories as of December 31, 2022, were approximately $3.516 billion, down from $3.761 billion in 2021, reflecting a decrease of 6.5%[221] - Total inventory impairments for the year ended December 31, 2022, amounted to $121.9 million, significantly higher than $1.6 million in 2021[128] - The average selling price of homes delivered increased to $575.3 thousand in 2022, a 12% increase from $511.2 thousand in 2021[119] Operational Challenges - The company experienced a cancellation rate above historical averages in the second half of 2022, prompting adjustments in pricing and incentives[109] - The cancellation rate increased to 25% in Q4 2022, up from 9% in Q4 2021, indicating a significant rise in cancellations as a percentage of homes in beginning backlog[141] - The company experienced extended construction cycle times due to permitting delays, supply chain disruptions, and labor shortages, impacting new home deliveries[121] Expenses and Costs - General and administrative expenses increased to $292.3 million in 2022, a rise of 18.8% from $246.0 million in 2021[130] - Marketing expenses slightly decreased to $103.3 million in 2022, down from $104.4 million in 2021[131] - Commissions expenses decreased to $140.7 million in 2022, compared to $143.5 million in 2021, reflecting changes in commission structure[131] - Inventory impairments totaled $121.9 million in 2022, contributing to a decrease in gross margin from home sales[115] - Gross margin from home sales decreased by 70 basis points year-over-year, from 23.1% in 2021 to 22.4% in 2022, primarily due to $121.9 million in inventory impairments[126] Assets and Liabilities - The company’s total assets increased to $5.363 billion in 2022, up from $4.964 billion in 2021, marking a growth of 8.0%[226] - The company’s total liabilities decreased to $2.271 billion in 2022 from $2.366 billion in 2021, a reduction of 4.0%[226] - The company had outstanding senior notes totaling $1.5 billion as of December 31, 2022, with future interest payments totaling $1.3 billion[154] Dividends and Shareholder Returns - The company paid dividends of $2.00 per share in 2022, an increase from $1.67 per share in 2021[169] - The company made dividend payments of $142,417 in 2022, compared to $118,529 in 2021, reflecting a 20.1% increase[234] - The company did not repurchase any shares of its common stock under the repurchase program during the year ended December 31, 2022[170] Mortgage and Financing - The average FICO score improved by 1% to 744 in 2022, compared to 740 in 2021[148] - The average combined loan-to-value (LTV) ratio was 81% in 2022, a decrease of 3% from 84% in 2021[148] - Total loan originations decreased by 6% to $5,876 million in 2022 from $6,247 million in 2021, while principal increased by 5% to $2,746,903 million[148] - The company has a total capacity of $300 million under the Mortgage Repurchase Facility as of December 31, 2022[165] - The company utilizes forward sales of mortgage-backed securities to hedge against interest rate fluctuations, with changes in fair value recorded in revenues[267]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-8951 M.D.C. HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Delaware 84-06229 ...

Financial Performance - For the three months ended June 30, 2022, the company reported net income of $189.5 million, or $2.59 per diluted share, a 23% increase from $154.4 million, or $2.11 per diluted share, in the prior year[108]. - Home sale revenues for the three months ended June 30, 2022, were $1,450.8 million, a 6% increase compared to $1,367.8 million in the same period of the previous year[103]. - The gross margin from home sales increased by 370 basis points to 26.8% for the three months ended June 30, 2022, compared to 23.1% in the prior year[103]. - Homebuilding pretax income for the three months ended June 30, 2022, was $240.3 million, an increase of 28% from $187.5 million in the same period last year[114]. - Financial services pretax income for the three months ended June 30, 2022, was $18.7 million, a 4% increase from $18.0 million in the prior year[103]. - The effective income tax rate increased to 26.8% for the three months ended June 30, 2022, compared to 24.9% in the same period of 2021, resulting in an income tax expense of $69.4 million[150]. Sales and Orders - The dollar value of net new home orders decreased by 40% year-over-year, driven by a 48% decrease in the number of net new orders, partially offset by a 16% increase in the average selling price[109]. - The number of net new orders decreased by 48% to 1,404 homes for the three months ended June 30, 2022, compared to 2,714 homes in the same period of 2021[132]. - The cancellation rate increased due to a rise in mortgage interest rates during the first half of 2022, impacting net new orders[131]. - For the three months ended June 30, 2022, the cancellation rate increased to 10% from 6% year-over-year, attributed to rising mortgage interest rates impacting homebuyers[140]. - As of June 30, 2022, the backlog consisted of 7,426 homes valued at $4.44 billion, reflecting a 3% decrease in the number of homes but an 8% increase in dollar value compared to the previous year[141]. Assets and Liquidity - Total cash and cash equivalents at the end of the quarter were $590.2 million, with total liquidity of $1.74 billion and no senior note maturities until 2030[106]. - Total homebuilding assets increased by 7% from December 31, 2021, to June 30, 2022, reaching $4,879.3 million[117]. - The company controlled 33,130 lots at the end of the quarter, representing a 4% decrease from the prior year[106]. - The company maintains a liquidity position with an effective shelf registration statement allowing for the issuance of up to $5.0 billion in securities, with the full amount remaining available[156]. - As of June 30, 2022, the company had outstanding senior notes totaling an aggregate principal amount of $1.5 billion, with future interest payments of $1.3 billion[158]. Operational Challenges - The company experienced production challenges due to supply chain disruptions and labor market tightness, impacting cycle times year-over-year[105]. - The total unsold started homes increased to 653, a 180% rise from 233 in the prior year, primarily due to the increased cancellation rate[142]. - The total owned and optioned lots decreased by 4% year-over-year to 33,130, reflecting a strategic slowdown in land acquisition due to market uncertainty[143]. Financial Services - Financial services revenues for the three months ended June 30, 2022, increased by 9% to $36.2 million, while the pretax income for financial services decreased by 24% to $10.7 million[145]. - Total mortgage loan originations decreased by 3% to 1,517 loans for the three months ended June 30, 2022, with principal amounting to $703.3 million, a 9% increase from the previous year[149]. - The capture rate as a percentage of all homes delivered was 60% for the three months ended June 30, 2022, up from 57% year-over-year[149]. - HomeAmerican's mortgage loans in process with interest rate lock commitments not yet closed totaled an aggregate principal balance of $871.8 million as of June 30, 2022, with $556.6 million not yet committed to a mortgage purchaser[184]. - The company had mortgage loans held-for-sale with an aggregate principal balance of $190.3 million at June 30, 2022, of which $55.1 million had not yet been committed to a mortgage purchaser[184]. Expenses - General and administrative expenses rose by $10.9 million to $72.9 million for the three months ended June 30, 2022, representing 5.0% of home sale revenues[128]. - The total selling, general and administrative expenses increased by $4.99 million to $133.8 million for the three months ended June 30, 2022[128]. - Cash used to increase housing completed or under construction was $468.3 million for the six months ended June 30, 2022, compared to $385.7 million in the prior year[176]. Financing Activities - The company incurred net cash used in financing activities of $164.6 million for the six months ended June 30, 2022, compared to net cash provided of $238.8 million in the prior year[178]. - The Revolving Credit Facility was amended to increase the aggregate commitment from $1.0 billion to $1.2 billion, with a potential increase to $1.7 billion upon request[165]. - As of June 30, 2022, the availability under the Revolving Credit Facility was approximately $1.14 billion[169]. - The company had deposits of $43.6 million in cash and $11.6 million in letters of credit securing option contracts to purchase 7,296 lots for an estimated total purchase price of $743.1 million[159]. Interest Rate Impact - Changes in interest rates do not affect the fair value of fixed-rate debt instruments, but they do impact earnings and cash flows for variable-rate debt[187]. - The company does not have an obligation to prepay its senior notes prior to maturity, mitigating interest rate risk impact on financial position[187].

Part I. Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) For Q1 2022, M.D.C. Holdings, Inc. reported total assets of **$5.06 billion**, net income of **$148.4 million** (up 34%), and positive operating cash flow of **$118.1 million** | Financial Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total Assets | $5,059,114 | $4,963,528 | | Total Liabilities | $2,348,032 | $2,366,382 | | Total Stockholders' Equity | $2,711,082 | $2,597,146 | | Income Statement Highlights (Three Months Ended March 31) | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Home Sale Revenues | $1,240,520 | $1,041,858 | | Net Income | $148,421 | $110,690 | | Diluted EPS | $2.02 | $1.51 | | Cash Flow Highlights (Three Months Ended March 31) | 2022 (in thousands) | 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $118,055 | $(57,957) | | Net cash (used in) investing activities | $(6,884) | $(5,749) | | Net cash provided by (used in) financing activities | $(126,280) | $336,342 | - Subsequent to quarter-end, the company agreed to acquire homebuilding assets of The Jones Company of Tennessee, L.L.C. for approximately **$117.3 million** in cash to scale Nashville operations[99](index=99&type=chunk)[100](index=100&type=chunk) [Segment Reporting](index=8&type=section&id=3.%20Segment%20Reporting) The company's Q1 2022 homebuilding revenues increased 19% to **$1.24 billion**, with pretax income up 66% to **$188.5 million**, while financial services pretax income declined 57% to **$13.4 million** | Homebuilding Revenues by Segment | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | West | $707,311 | $616,611 | | Mountain | $335,128 | $324,717 | | East | $198,081 | $100,530 | | **Total** | **$1,240,520** | **$1,041,858** | | Pretax Income by Segment | Q1 2022 (in thousands) | Q1 2021 (in thousands) | | :--- | :--- | :--- | | Total Homebuilding | $188,499 | $113,507 | | Total Financial Services | $13,383 | $30,805 | | **Total Pretax Income** | **$201,882** | **$144,312** | [Inventories](index=12&type=section&id=6.%20Inventories) Total inventories increased to **$3.93 billion** as of March 31, 2022, primarily driven by a rise in housing completed or under construction, with a minor impairment recorded in the West segment | Inventory Breakdown | March 31, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | Housing completed or under construction | $2,194,303 | $1,917,616 | | Land and land under development | $1,734,515 | $1,843,235 | | **Total Inventories** | **$3,928,818** | **$3,760,851** | - An inventory impairment of **$660,000** was recognized in the West segment for one subdivision during Q1 2022, with no impairments in Q1 2021[49](index=49&type=chunk)[50](index=50&type=chunk) [Commitments and Contingencies](index=20&type=section&id=16.%20Commitments%20and%20Contingencies) As of March 31, 2022, the company had **$383.8 million** in surety bonds, **$205.1 million** in letters of credit, and option contracts for **11,205 lots** with **$58.3 million** in at-risk deposits - The company has option contracts to purchase **11,205 lots**, secured by **$45.0 million** in cash deposits and **$13.3 million** in letters of credit[81](index=81&type=chunk) - Outstanding surety bonds and letters of credit totaled **$383.8 million** and **$205.1 million**, respectively, to support various operational obligations[78](index=78&type=chunk) [Lines of Credit](index=21&type=section&id=18.%20Lines%20of%20Credit) The company maintains a **$1.2 billion** unsecured Revolving Credit Facility with **$1.14 billion** available, and its financial services subsidiary uses a Mortgage Repurchase Facility with a **$178.2 million** obligation - The Revolving Credit Facility has a total commitment of **$1.2 billion**, with **$10.0 million** drawn and **$51.7 million** in letters of credit outstanding, leaving **$1.14 billion** available at March 31, 2022[86](index=86&type=chunk)[90](index=90&type=chunk) - The Mortgage Repurchase Facility had a repurchase obligation of **$178.2 million** at March 31, 2022, down from **$256.3 million** at year-end 2021[92](index=92&type=chunk) [Management's Discussion and Analysis (MD&A)](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a resilient housing market in Q1 2022, with a focus on price increases leading to a **25.7%** gross margin, **$148.4 million** net income, and **$1.73 billion** in liquidity - The company's Q1 strategy focused on raising sales prices to offset cost increases and manage construction capacity, resulting in a **25.7%** gross margin, up **380 basis points** year-over-year[103](index=103&type=chunk) - Net income for Q1 2022 increased **34%** to **$148.4 million**, driven by a **66%** increase in homebuilding pretax income, partially offset by a **57%** decrease in financial services pretax income[107](index=107&type=chunk) - The dollar value of net new home orders increased **12%** year-over-year, driven by a **14%** increase in average selling price, while the number of net new orders decreased by **2%**[108](index=108&type=chunk) - The company ended the quarter with total liquidity of **$1.73 billion** and a debt-to-capital ratio of **35.5%**[105](index=105&type=chunk) [Homebuilding Operations Analysis](index=27&type=section&id=MD%26A%20Homebuilding%20Operations) Homebuilding pretax income surged **66%** to **$188.5 million** on **19%** higher revenues of **$1.24 billion**, driven by increased average selling prices and an expanded gross margin of **25.7%** | Home Deliveries & Revenue (Q1 2022 vs Q1 2021) | Homes Delivered | % Change | Home Sale Revenues ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total** | **2,233** | **3%** | **$1,240.5M** | **19%** | | Net New Orders (Q1 2022 vs Q1 2021) | Homes | % Change | Dollar Value ($M) | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total** | **3,151** | **(2)%** | **$1,836.8M** | **12%** | | Backlog (as of March 31) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Homes | 8,558 | 7,686 | 11% | | Dollar Value | $4,947.8M | $3,927.3M | 26% | - Gross margin from home sales increased **380 basis points** to **25.7%** in Q1 2022 from **21.9%** in Q1 2021, driven by price increases across nearly all communities[122](index=122&type=chunk) [Financial Services Operations Analysis](index=32&type=section&id=MD%26A%20Financial%20Services%20Operations) Financial services pretax income significantly decreased by **57%** to **$13.4 million** in Q1 2022, primarily due to mortgage operations' profitability returning to historical levels and a lower mortgage capture rate - Financial services pretax income decreased by **$17.4 million** (**57%**) year-over-year, mainly because mortgage operations profitability returned to more historical levels after a record Q1 2021[140](index=140&type=chunk) | Mortgage Operations Data (Q1) | 2022 | 2021 | | :--- | :--- | :--- | | Total Originations (Principal) | $605.8M | $616.0M | | Capture Rate (% of all homes delivered) | 59% | 72% | [Liquidity and Capital Resources](index=34&type=section&id=MD%26A%20Liquidity%20and%20Capital%20Resources) The company maintains a strong capital position with **$1.5 billion** in senior notes outstanding, **11,205** optioned lots, and **$118.1 million** in positive operating cash flow, ensuring adequate resources for future needs - At March 31, 2022, the company had outstanding senior notes with an aggregate principal of **$1.5 billion**, with no maturities within 12 months[151](index=151&type=chunk) - The company had deposits securing option contracts to purchase **11,205 lots** for a total estimated price of **$1.02 billion**[152](index=152&type=chunk) - Net cash from operating activities was **$118.1 million**, a significant turnaround from a **$58.0 million** use of cash in Q1 2021, primarily driven by net income and changes in working capital[169](index=169&type=chunk) [Market Risk Disclosures](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, primarily in mortgage operations, which it hedges using derivatives like interest rate lock commitments (**$521.1 million**) and forward sales of mortgage-backed securities (**$378.5 million**) - The company's primary market risk is interest rate fluctuations, which impact its mortgage loans held-for-sale, interest rate lock commitments, and variable-rate debt[177](index=177&type=chunk) - To manage risk, HomeAmerican had **$521.1 million** in interest rate lock commitments and hedged its positions with **$378.5 million** in forward sales of securities at quarter-end[177](index=177&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the reporting period[182](index=182&type=chunk) - There were no material changes to internal control over financial reporting during the first quarter of 2022[182](index=182&type=chunk) Part II. Other Information [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) Management believes ongoing legal actions arising from ordinary business operations will not materially affect the company's financial condition, results, or cash flows - In management's opinion, legal actions arising from the ordinary course of business are not expected to have a material adverse effect on the company's financials[184](index=184&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K were reported - No material changes from the risk factors included in the Company's 2021 Annual Report on Form 10-K were reported[185](index=185&type=chunk) [Share Repurchases and Use of Proceeds](index=40&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares under its program in Q1 2022, but withheld **32,926** shares for employee tax obligations related to restricted stock vesting - The company is authorized to repurchase up to **4,000,000** shares of its common stock but made no repurchases under this program during Q1 2022[186](index=186&type=chunk) - **32,926** shares were withheld in February 2022 to satisfy employee tax obligations upon the vesting of restricted stock[186](index=186&type=chunk)

Financial Performance - Home sale revenues for 2021 reached $5.10 billion, a 36% increase from $3.77 billion in 2020[110] - Gross profit for 2021 was $1.18 billion, with a gross margin of 23.1%, up from 20.8% in 2020[110] - The company reported a net income of $573.7 million for 2021, a 56% increase compared to $367.6 million in 2020[116] - Homebuilding pretax income for 2021 was $659.7 million, a 74% increase from $378.5 million in 2020, driven by improved pricing and operating leverage[118] - Total pretax income reached $751,694 thousand in 2021, a 64.2% increase from $457,512 thousand in 2020[293] - Basic earnings per share for 2021 was $8.13, compared to $5.33 in 2020, marking a 52.5% increase[228] - Basic earnings per share (EPS) for 2021 was $8.13, up 52.9% from $5.33 in 2020, while diluted EPS was $7.83, an increase of 51.5% from $5.17 in 2020[296] Sales and Deliveries - For the year ended December 31, 2021, total new home deliveries increased to 9,982 homes, up 22% from 8,158 homes in 2020[122] - The average selling price of homes delivered rose to $511.2 thousand, reflecting an 11% increase from $461.6 thousand in 2020[122] - The average selling price of new home orders increased by 11% year-over-year, contributing to an 11% increase in the dollar value of net new home orders[117] - The West segment delivered 5,732 homes with an average selling price of $517.2 thousand, a 30% increase in homes delivered and an 8% increase in average price from 2020[122] - The Mountain segment saw a 9% increase in homes delivered to 2,770, with an average selling price of $565.8 thousand, up 11% from the previous year[122] - The East segment delivered 1,480 homes, with a 22% increase in homes delivered and a 28% increase in average selling price to $385.5 thousand[122] Backlog and Inventory - The backlog at December 31, 2021, was 7,640 homes valued at $4.30 billion, representing a 15% increase in units and a 32% increase in dollar value from the previous year[114] - Total owned and optioned lots increased by 29% to 38,080 lots as of December 31, 2021, supporting future growth[148] - Homes completed or under construction rose by 31% year-over-year, with sold homes under construction increasing by 33%[147] - Total inventories reached $3,760,851 thousand, up 32.7% from $2,832,230 thousand in 2020[226] Financial Services - Financial services pretax income reached a record $92.0 million in 2021, a 16% increase from $79.0 million in 2020[110] - Financial services revenues grew by $16.4 million, or 12%, driven by a $10.5 million increase in the other financial services segment[149] - Total financial services revenues rose to $152,212 thousand in 2021, compared to $135,832 thousand in 2020, marking a 12.5% increase[293] - Mortgage loan originations increased by 10% to 6,247 loans, with principal amount rising by 23% to $2.62 billion[153] Expenses and Liabilities - Total selling, general and administrative expenses increased to $493.993 million, a rise of 22.5% from $403.218 million in 2020[133] - The company recorded an income tax provision of $178.0 million for 2021, resulting in an effective tax rate of 23.7%[154] - Total liabilities increased to $2,366,382 thousand, a rise of 35.6% from $1,745,008 thousand in 2020[226] - The company reported a loss on retirement of debt of $23,571,000 in 2021, with no such loss reported in 2020[234] Cash Flow and Liquidity - The company ended the year with total liquidity of $1.75 billion, lowering the debt to capital ratio to 36.5%[115] - Net cash used in operating activities was $208.0 million, compared to $23.1 million in the prior year, driven by increased housing inventory and land purchases[178] - Cash used to increase land and land under development was $497.4 million for the year ended December 31, 2021, significantly up from $15.0 million in the prior year, reflecting the acquisition of 15,435 lots[178] - Net cash provided by financing activities was $335.2 million for the year ended December 31, 2021, primarily due to proceeds from the issuance of senior notes totaling $694.7 million[180] Market Conditions and Risks - The average sale-to-close cycle time increased to approximately 36 weeks, up five weeks year-over-year due to supply chain disruptions and labor shortages[122] - The cancellation rate decreased from 19% in 2020 to 17% in 2021, with notable reductions in the East and Mountain regions[143] - The company assesses inventory impairment by comparing estimated future cash flows to carrying value, with significant reliance on Level 3 inputs such as future home sale revenues and construction costs[185] Stockholder Information - Dividends paid increased from $1.29 per share in 2020 to $1.67 per share in 2021, alongside an 8% stock dividend distribution[175] - The company’s dividend payments for 2021 were $118,529,000, compared to $89,008,000 in 2020, representing a 33.2% increase[234] Debt and Financing - The company accelerated the retirement of $250 million in senior notes with a 5.500% interest rate, originally due in January 2024, during the year ended December 31, 2021[162] - The Revolving Credit Facility was amended to increase the aggregate commitment from $1.0 billion to $1.2 billion, with a potential increase to $1.7 billion upon request[166] - As of December 31, 2021, the company had $10.0 million in borrowings and $40.1 million in letters of credit outstanding under the Revolving Credit Facility, leaving a remaining borrowing capacity of $1.15 billion[170]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-8951 Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated fil ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delaware 84-0622967 (State or other jurisdiction of incorporation or organization) (I.R.S. employer identification no.) 4350 South Monaco Street, Suite 500 80237 Denver, Colorado (Zip code) (Address of principal executive offices) (303) 773-1100 (Registrant's telep ...