MDC Holdings Q2 Profit Tops Estimate - Quick Facts

(RTTNews) - MDC Holdings Inc. (MDC) posted a surge in second-quarter net income to $224.9 million, or $4.56 per share from $10.6 million, or $0.22 per share in the same quarter. The latest-quarter result included a $187.6 million, or $3.80 per share, tax benefit related to the reversal of a substantial portion of the deferred tax asset valuation allowance.

Excluding the impact of the reversal of the deferred tax asset valuation allowance, net income for the latest-quarter was $37.3 million, or $0.76 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.54 per share for the quarter. Analysts' estimates typically exclude special items.

Home sale revenues for the 2013 second quarter increased 56% to $400.3 million compared to $256.5 million for the prior year period. The increase in revenues resulted from a 37% increase in homes delivered to 1,183 homes as compared to 861 in the prior year and a 14% increase in the Company's average selling price to $338,400. The increase in average selling price was largely due to price appreciation and lower incentives in many of our markets.

Net new orders for the 2013 second quarter decreased 4% to 1,351 homes, compared to 1,402 homes during the same period in 2012, largely due to a 21% decrease in the Company's active average community count. However, the Company's monthly sales absorption rate for the 2013 second quarter rose 23% to 3.2 per community, compared to 2.6 per community for the 2012 second quarter and 3.0 for the 2013 first quarter. The Company's cancellation rate for the 2013 second quarter was 19% versus 20% in the prior year second quarter and 18% in the 2013 first quarter.

Total home sale and land revenues for the quarter grew to $402.13 million from $258.35 million in the prior year. Ten analysts had consensus revenue estimate of $393.95 million for the quarter.