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M.D.C. HOLDINGS REPORTS RESULTS FOR THE FOURTH QUARTER AND ALL OF 1991

 M.D.C. HOLDINGS REPORTS RESULTS FOR THE
 FOURTH QUARTER AND ALL OF 1991
 DENVER, Feb. 28 /PRNewswire/ -- M.D.C. Holdings Inc. (NYSE and PSE: MDC), national home builder and mortgage banking company, today reported its first quarterly profit from operations since the second quarter of 1990. Operating income totalled $37,000 during the three months ended Dec. 31, 1991 as compared to an operating loss of $2.3 million during the like period in 1990.
 Spencer I. Browne, president and chief operating officer of MDC, said, "Orders for new homes during the fourth quarter of 1991 totalled 395 units, a 46 percent increase over the same period in 1990. The company closed 495 homes during the fourth quarter of 1991, a 3 percent increase over the 482 homes closed in the fourth quarter of 1990. In addition, homes under contract (backlog) at Dec. 31, 1991 increased by 39 percent to 537 units having an approximate sales value of $97.4 million. This momentum also has carried into 1992 as January new home orders totalled 295 units, a 127 percent increase over the prior year."
 Net income for the fourth quarter of 1991 was $.6 million, or 3 cents per share, as compared to $.4 million, or 2 cents per share, for the fourth quarter of 1990. The results for the fourth quarter of 1991 included a $.5 million extraordinary after-tax gain from the company's repurchase of $1.0 million principal amount of its senior subordinated and subordinated notes. The results for the fourth quarter of 1990 included a $2.7 million extraordinary after-tax gain from the company's repurchase of $5.8 million principal amount of its notes as well as certain other debt extinguishments.
 "The improvement in the company's performance in the fourth quarter of 1991 as compared to the same period in 1990 principally was the result of (i) higher management fee income due to increased REIT income earned by Asset Investors Corp., a New York Stock Exchange- listed real estate investment trust which is managed by a subsidiary of the company; (ii) increases in earnings from collateralized mortgage obligation (CMO) issuances due to a decline in short-term interest rates; (iii) the company's efforts in reducing selling, general and administrative expenses; and (iv) lower interest expense as a result of the repurchase and restructuring of the company's notes," Browne noted.
 MDC's net income for all of 1991 was $1.9 million, or 9 cents per share, including a $14.8 million extraordinary after-tax gain from the company's repurchase of $21.85 million of its notes as well as certain other debt extinguishments, as compared to $6.8 million, or 36 cents per share, including $18.8 million of extraordinary after-tax gains from the company's repurchase of $53.2 million principal amount of its notes as well as certain other debt extinguishments, during 1990. Revenues for 1991 were $433.3 million as compared to $519.1 million in 1990. During 1991, MDC closed 1,782 homes as compared to 2,031 closings during 1990. However, orders for new homes increased by 21 percent to 1,933 units as compared to 1,601 unit orders in 1990.
 MDC had an operating loss (before extraordinary gains) of $12.9 million during 1991 as compared to an operating loss of $12.0 million during 1990. These operating losses primarily resulted from asset valuation reserves of $11.5 million and $12 million, respectively, recorded during 1991 and 1990, principally to reduce the carrying value of the company's inventories.
 Browne said, "MDC's operations during 1991 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 and Phoenix home building markets as well as softness in the Virginia, Maryland and California markets."
 The company's net income per share for the fourth quarter and year 1991 was based on 21.3 million and 21.0 million, respectively, weighted average shares outstanding as compared to 19.1 million weighted average shares outstanding for both the comparable 1990 periods.
 M.D.C. HOLDINGS INC.
 Summary of Financial Results
 (Unaudited)
 Year Ended
 Dec. 31,
 1991 1990
 Revenues $433,320,000 $519,069,000
 Income (Loss)
 Before extraordinary gains $(12,903,000) $(11,954,000)
 Extraordinary gains 14,809,000 18,799,000
 Net Income $1,906,000 $6,845,000
 Earnings (Loss) per Share
 Before extraordinary gains $(.62) $(.63)
 Extraordinary gains .71 .99
 Net Income $.09 $.36
 Weighted Average Shares
 Outstanding 20,985,000 19,065,000
 Three Months Ended
 Dec. 31,
 1991 1990
 Revenues $116,034,000 $115,496,000
 Income (Loss)
 Before extraordinary gains $37,000 $(2,304,000)
 Extraordinary gains 547,000 2,675,000
 Net Income $584,000 $371,000
 Earnings (Loss) per Share
 Before extraordinary gains --- $(.12)
 Extraordinary gains .03 .14
 Net Income $.03 $.02
 Weighted Average Shares
 Outstanding 21,344,000 19,065,000
 The results of operations for the three months ended Dec. 31, 1990 and the years ended Dec. 31, 1991 and 1990 reflect extraordinary gains from MDC's repurchase of its senior subordinated and subordinated notes and from certain other debt extinguishments.
 -0- 2/28/92
 /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 -- 3623 02/28/92 09:57 EST
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Date:Feb 28, 1992
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