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M.D.C. HOLDINGS REPORTS RESULTS FOR THE SECOND QUARTER AND FIRST SIX MONTHS OF 1992

 M.D.C. HOLDINGS REPORTS RESULTS FOR THE SECOND QUARTER AND
 FIRST SIX MONTHS OF 1992
 DENVER, Aug. 14 /PRNewswire/ -- M.D.C. Holdings Inc. (NYSE and PSE: MDC), national home builder, today announced that its operating income for the second quarter of l992 was $l.5 million as compared to an operating loss of $l.6 million during the like period in 1991. Operating income increased to $3.5 million for the six months ended June 30, l992 as compared to an operating loss of $7.9 million during the like period in l99l.
 Orders for new homes increased to 596 and l,50l, respectively, during the three and six months ended June 30, l992, as compared to 560 and l,l05 homes, respectively, during the like periods in l99l. Home closings increased by 32 percent to 629 homes in the second quarter of l992 from the 475 homes closed during the like period in l99l. For the six months ended June 30, l992, the company closed l,049 homes, a 29 percent increase over the 8l4 homes closed during the like period in l99l. In addition, homes under contract (backlog) at June 30, 1992 increased by 46 percent to 989 homes having an approximate sales value of $l73.5 million as compared to 677 homes having an approximate sales value of $119 million at June 30, l99l.
 The improvement in the company's operating performance was derived principally from the company's core home building operations which includes the company's mortgage origination and finance activities. Spencer I. Browne, president and chief operating officer of MDC, said, "Home building showed a small operating profit in the first half of 1992 as compared to a substantial loss in 1991. The improvement resulted from, among other things, a major increase in home closings and the sale of mortgage loan servicing generated from mortgage loans originated for MDC's home buyers and for others on a spot basis. A decline in our legal expenses also was a factor in the improvement in our performance."
 The company's portfolio of mortgage-related assets, primarily (i) Financial Asset Management Corp., an indirect, wholly owned subsidiary which manages the day-to-day operations of Asset Investors Corp., a New York Stock Exchange-listed real estate investment trust; and (ii) ownership interests in issuances of collateralized mortgage obligations ("CMOs"), also contributed to the company's positive operating results for the first six months of 1992, although the management of these assets resulted in an operating loss for the three months ended June 30, 1992. Browne noted, "Results from the management of the company's mortgage- related assets during the first six months of 1992 were impacted positively by a $5.4 million operating profit from the sale of $38.7 million principal amount of mortgage certificates which collateralized certain of the company's mortgage-backed bonds."
 The contribution to operating profit of the company's mortgage- related assets adversely was impacted in the three and six months ended June 30, 1992 by sharply lower management fee income from the management of Asset Investors and by losses from the company's ownership interests in CMO issuances. As a result of the significant increase in the level of mortgage collateral prepayments from prepayment levels in 1991 caused by the continuing decline in mortgage interest rates, income from this segment of MDC's business will be significantly lower for the year 1992 than for 1991 when these mortgage-related assets generated $13.8 million in pre-tax operating profit.
 MDC's operations during 1991 and 1992 also were affected adversely by, among other things, a weak national economy, low consumer confidence and the nationwide credit crunch. Operations also continued to be affected adversely by carrying costs associated with inactive inventories in its Denver home building market, as well as softness in the California market.
 Net income for the three and six months ended June 30, l992 was $l.5 million and $2.8 million, respectively, or 7 cents and l3 cents per share, respectively, as compared to $.l million and $l.0 million, respectively, or l cent and 5 cents per share, respectively, for the like periods in l99l. Net income for the six months ended June 30, 1992 was (i) positively affected by a one-time, $1.7 million increase to net income for the cumulative effect, to Jan. 1, 1992, of the company's adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes"; and (ii) adversely affected by a $2.4 million extraordinary after-tax loss resulting primarily from the extinguishment of the company's obligations with respect to certain mortgage-backed bonds. Net income for the three and six months ended June 30, l99l positively was impacted by $l.7 million and $8.9 million, respectively, in extraordinary after-tax gains from the company's repurchase of $5.4 million and $20.9 million, respectively, principal amount of its senior subordinated and subordinated notes.
 The company's earnings per share amounts for the three and six months ended June 30, 1992 were based on 2l.8 million weighted average shares outstanding as compared to 2l.3 million and 20.6 million, respectively, weighted average shares outstanding for the comparable periods in 1991.
 M.D.C. HOLDINGS INC.
 Summary of Financial Results
 (Unaudited)
 Six Months Ended June 30,
 1992 1991
 Revenues $233,234,000 $200,957,000
 Income (Loss)
 Before extraordinary gain
 (loss) and cumulative effect
 of accounting change $ 3,544,000 $ (7,928,000)
 Extraordinary gain (loss) (2,444,000) 8,932,000
 Cumulative effect of
 accounting change l,700,000 ---
 Net Income $ 2,800,000 $ l,004,000
 Earnings per Share
 Before extraordinary gain
 (loss) and cumulative effect
 of accounting change $ .l6 $ (.39)
 Extraordinary gain (loss) (.ll) .44
 Cumulative effect of
 accounting change .08 ---
 Net Income $ .l3 $ .05
 Weighted Average Shares
 Outstanding 2l,811,000 20,595,000
 Summary of Financial Results
 (Unaudited)
 Three Months Ended June 30,
 1992 1991
 Revenues $l30,60l,000 $112,334,000
 Income (Loss)
 Before extraordinary gain $ l,498,000 $ (l,570,000)
 Extraordinary gain --- l,682,000
 Net Income $ l,498,000 $ ll2,000
 Earnings (Loss) per Share
 Before extraordinary gain $ .07 $ (.07)
 Extraordinary gain --- .08
 Net Income $ .07 $ .0l
 Weighted Average Shares
 Outstanding 2l,8l0,000 2l,280,000
 The results of operations for the three and six months ended June 30, 1992 and the three and six months ended June 30, 1991 reflect extraordinary gains (losses) from the early extinguishment of debt, including extraordinary gains during the three and six months ended June 30, 1991 from MDC's repurchase of its senior subordinated and subordinated notes.
 -0- 8/14/92
 /CONTACT: William Kostka of William Kostka Associates, 303-623-8421, for M.D.C. Holdings/
 (MDC) CO: M.D.C. Holdings Inc. ST: Colorado IN: SU: ERN


BB -- DV001 -- 9911 08/14/92 09:37 EDT
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Date:Aug 14, 1992
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