MDC(US:MDC)2021-02-02 19:27Financial Performance - Homebuilding revenues for 2020 were $3,765.4 million, a 17.5% increase from $3,205.2 million in 2019[106]. - Net income for 2020 was $367.6 million, or $5.58 per diluted share, representing a 54% increase compared to $238.3 million, or $3.72 per diluted share, in 2019[116]. - Total revenues for 2020 reached $3,901.2 million, up from $3,293.3 million in 2019, marking a 18.5% increase[106]. - Financial services pretax income increased by 31% to $79.0 million in 2020, up from $60.2 million in 2019[116]. - Total pretax income for the company was $457,512 in 2020, up 50.0% from $304,989 in 2019[297]. - Basic earnings per share (EPS) for 2020 was $5.76, a 50.0% increase from $3.84 in 2019[299]. - Diluted EPS for 2020 was $5.58, up 49.86% from $3.72 in 2019[299]. - Total financial services revenues increased to $135,832 in 2020, up 54.2% from $88,005 in 2019[296]. Homebuilding Operations - The dollar value of net new home orders increased by 56% year-over-year, driven by a 40% increase in the number of net new orders and an 11% increase in the average selling price[117]. - Homebuilding pretax income increased by 55% to $378.5 million in 2020, up from $244.8 million in 2019[116]. - New home deliveries rose to 8,158 homes in 2020, a 17% increase from 6,974 homes in 2019, with the average selling price remaining stable[124]. - The average selling price of homes increased to $495.8 thousand in 2020, up 11% from $445.9 thousand in 2019, driven by price increases and a shift towards more expensive markets[138]. - Homes sold under construction or completed increased by 73% year-over-year to 4,797 homes, attributed to the rise in backlog[148]. - The backlog at December 31, 2020, included 6,655 homes valued at $3.26 billion, reflecting increases of 75% in homes and 87% in dollar value from the previous year[147]. - The average selling price of homes in backlog at the end of 2020 was $490, compared to $459 in 2019[114]. Market and Inventory - Total homebuilding assets increased by 16% from $3.03 billion in 2019 to $3.51 billion in 2020, primarily due to higher inventory balances from land acquisitions[122]. - The estimated backlog sales value at the end of 2020 was $3.26 billion, an 87% increase from $1.75 billion at the end of 2019[114]. - The company had 29,469 lots owned and optioned as of December 31, 2020, an 8% increase from 27,386 lots in 2019, supporting future growth[149]. - Total unsold started homes decreased by 53% year-over-year to 179 homes, indicating strong demand for new homes[148]. Expenses and Cash Flow - General and administrative expenses increased to $184.7 million in 2020, up $9.7 million from 2019, primarily due to higher salaries and compensation-related expenses[135]. - Total selling, general and administrative expenses amounted to $403.2 million, representing 10.7% of home sale revenues, a decrease of 60 basis points from 2019[135]. - Cash used to increase housing completed or under construction was $449.9 million in 2020, significantly higher than $83.5 million in 2019[169]. - Net cash used in operating activities was $23.1 million in 2020, compared to net cash provided of $57.8 million in 2019[169]. - The company paid dividends totaling $89,008,000 in 2020, compared to $73,117,000 in 2019, representing a 21.7% increase[234]. Financial Position - The company ended 2020 with total liquidity of $1.70 billion, following the expansion of its credit facility[115]. - As of December 31, 2020, the remaining borrowing capacity under the Revolving Credit Facility was $1.16 billion[162]. - Total assets increased to $3,864,920 thousand in 2020, up from $3,338,356 thousand in 2019, marking a growth of 15.7%[226]. - Total liabilities increased to $1,745,008 thousand in 2020, up from $1,555,871 thousand in 2019, representing a growth of 12.2%[226]. - The company recorded an income tax provision of $89.9 million in 2020, with an effective income tax rate of 19.7%[153]. Risk Management and Compliance - The company evaluates homebuilding inventories for impairment quarterly, considering factors such as operating margin, estimated future cash flows, and market conditions[180]. - Warranty accruals are recorded for each closed home based on historical payment experience, with potential changes impacting the warranty accrual balances significantly[189]. - The company monitors the adequacy of accruals for home construction and land development costs on a house-by-house basis[197]. - The company is exposed to market risks related to fluctuations in interest rates on mortgage loans held-for-sale and interest rate lock commitments[204].