MDC(US:MDC)2024-11-05 21:17Financial Performance - Home sale revenues for Q3 2024 reached $1.39 billion, a 28% increase from $1.09 billion in Q3 2023[123] - Net income for Q3 2024 was $133.5 million, a 24% increase compared to $107.3 million in Q3 2023[128] - Financial services pretax income increased by 125% year-over-year to $27.9 million in Q3 2024[128] - Gross profit for Q3 2024 was $246.8 million, with a gross margin of 17.8%, down from 19.2% in Q3 2023[123] - For the three months ended September 30, 2024, total financial services revenues increased to $43.4 million, up 82% from $23.8 million in the same period in 2023[162] - The company reported net income of $254.5 million for the nine months ended September 30, 2024, compared to $281.5 million in the same period of 2023[193] Home Sales and Deliveries - The total number of new homes delivered for the nine months ended September 30, 2024, was 7,467, generating home sale revenues of $4,123,303,000, a 28% increase from $3,210,536,000 in 2023[138] - For the three months ended September 30, 2024, total home sale revenues increased by 29% to $1,386,655,000 compared to $1,087,050,000 in the same period of 2023[137] - The total dollar value of net new orders for the three months ended September 30, 2024, was $1,024,501,000, a 12% increase from $965,498,000 in the same period of 2023[148] Costs and Expenses - Selling, general, and administrative expenses for the three months ended September 30, 2024, increased to $129,096,000 from $101,311,000 in 2023, reflecting a change of $27,785,000[145] - Commissions expenses for the three months ended September 30, 2024, increased to $42,740,000 from $30,204,000, reflecting a rise in home sale revenues[146] - Cash used in financing activities increased to $762.3 million for the nine months ended September 30, 2024, primarily due to a distribution to Parent of $611.4 million related to the Merger[195] Inventory and Backlog - Total homes backlog decreased by 62% to 1,065 homes with a total value of $628.5 million as of September 30, 2024[158] - Total unsold started homes increased by 45% to 3,899 as of September 30, 2024[159] - The company ended Q3 2024 with 21.3 unsold homes under construction per active community, indicating a strategic pivot to meet consumer demand[126] Market Trends - The average selling price of homes delivered in the West segment increased by 18% to $804,561, while the Mountain segment saw a 23% increase to $340,034[137] - The average price of homes in the East segment decreased by 10% due to a shift towards more affordable products[137] - Monthly absorption rates increased across all segments for the three and nine months ended September 30, 2024, compared to the prior year[138] Liquidity and Capital Resources - Total liquidity at the end of Q3 2024 was $2.18 billion, with a debt-to-capital ratio of 33.7%[127] - The company expects to meet its short and long-term capital requirements through its current liquidity and capital resources, including cash, marketable securities, and credit facilities[175] - As of September 30, 2024, the company had $1.09 billion available under the Revolving Credit Facility, with outstanding letters of credit totaling $36.3 million[185] Mortgage Operations - Mortgage operations revenue for the three months ended September 30, 2024, was $26.4 million, a 118% increase compared to $12.1 million in the prior year[162] - The capture rate as a percentage of all homes delivered increased to 77% for the three months ended September 30, 2024, compared to 62% in the same period last year[164] - Total originations for loans reached 1,949 for the three months ended September 30, 2024, a 59% increase from 1,225 in the same quarter of 2023[164] Tax and Debt - The company reported an effective income tax rate of 14.2% for the three months ended September 30, 2024, down from 23.2% in the same period of 2023[166] - As of September 30, 2024, the company had outstanding senior notes totaling $1.50 billion, with future interest payments amounting to $1.19 billion[172] Construction and Development - The company reported a 26% increase in homes under construction, totaling 3,075 as of September 30, 2024[159] - The number of active subdivisions decreased by 22% to 183 as of September 30, 2024[151] - The average active subdivisions for the nine months ended September 30, 2024, decreased by 12% to 206[151]