mdc earning down 60%/ canrate 48 %
looks like more and more builders highlight their cash and borrowingcapacity to stand this downturn. what a difference 6 month make.......
Diluted earnings per share of $1.06 vs. $2.62 in 2005 (minus 60%)
* Net income of $48.7 million, compared with $121.0 million in 2005
* Pre-tax inventory impairments and project cost write-offs of $29.4 million
* Total revenues of $1.08 billion; $1.17 billion in 2005
* Closed 2,955 homes at an average selling price of $358,200
* Financial services and other profits of $13.0 million vs. $9.6 million in 2005
* Net orders for 2,120 homes valued at $678.1 million vs 3.551 and valued $1.22b (-40% / value -44%)
* Quarter-end backlog of 5,661 homes valued at $2.10 billion vs 9.057 $3.29b (-37% $ -36% )
* Unrestricted cash and available borrowing capacity of $1.36 billion
* Cash flow from operations of $70.9 million in 2006 third quarter
enabled us to reduce our lots under control by more than 25% since the beginning of the year, with less than 3% of our stockholders' equity at risk for our 11,000 optioned lots. In addition, our investment in land declined by almost $100 million in the third quarter alone, which contributed to our generating more than $70 million in cash flow from operations during this period. As a result, we ended the quarter with $1.36 billion in available cash and borrowing capacity, up 25% from last September."
The Company closed 2,955 homes and produced home gross margins of 22.7% in the 2006 third quarter, compared with 3,686 home closings and home gross margins of 28.8% for the comparable period in 2005
The SG&A expenses for the three and nine months ended September 30, 2006 included project cost write-offs of $9.5 million and $23.0 million, respectively, compared with $2.5 million and $5.2 million of such costs for the same periods in 2005.
We experienced reduced home gross margins in each of our markets except Utah and Delaware Valley, with the most significant decreases occurring in Nevada and California, as has been the case in the previous 2006 quarters, as well as in Virginia, due to increased competition and extreme inventory pressures in that market. The $19.9 million in inventory impairment charges we recognized during the third quarter, which are not included in our home gross margins, primarily relate to five projects in California where we experienced a much slower than anticipated home order pace and significantly increased sales incentive requirements."
Similar to our 2006 second quarter, we deferred $18.5 million in profits related to certain homes closed in the third quarter for which the Company's mortgage subsidiary originated high loan-to-value loans for our homebuyers and still held the loans in inventory at the end of the quarter. However, we more than offset this deferral by recognizing $30.7 million in profits that had been deferred in the second quarter, resulting in a net increase to homebuilding profits for the 2006 third quarter of $12.2 million. This net increase in profits raised third quarter home gross margins by 90 basis points and average selling prices by $4,100."(?)