0000773141false00007731412024-01-302024-01-300000773141us-gaap:CommonStockMember2024-01-302024-01-300000773141mdc:SeniorNotesSixPercentDueJanuary2043Member2024-01-302024-01-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K
_________________________________

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): January 30, 2024

M.D.C. Holdings, Inc.
(Exact name of registrant as specified in its charter)
Delaware1-895184-0622967
(State or other
jurisdiction of
incorporation)		(Commission file number)(I.R.S. employer
identification no.)

4350 South Monaco Street, Suite 500, Denver, Colorado 80237
(Address of principal executive offices) (Zip code)

Registrant’s telephone number, including area code: (303) 773-1100

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $.01 par valueMDCNew York Stock Exchange
6% Senior Notes due January 2043MDC 43New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 2.02.     RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On January 30, 2024, M.D.C. Holdings, Inc. issued a press release reporting its results of operations for the fourth quarter and full year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report.

The information in Item 2.02 of this Current Report, including the press release, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.


ITEM 9.01.    FINANCIAL STATEMENTS AND EXHIBITS

(d)     Exhibits

Exhibit NumberDescription
99.1
104Cover Page Interactive Data file (formatted in Inline XBRL)


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
_________________________________
M.D.C. HOLDINGS, INC.
Dated: January 30, 2024By:/s/ Joseph H. Fretz
Joseph H. Fretz
Vice President, Secretary and Corporate Counsel

2
Exhibit 99.1
News Release

M.D.C. HOLDINGS ANNOUNCES 2023 FOURTH QUARTER AND FULL YEAR RESULTS


DENVER, COLORADO, Tuesday, January 30, 2024. M.D.C. Holdings, Inc. (NYSE: MDC), announced results for the quarter and full year ended December 31, 2023. As previously announced on January 18, 2024, MDC has entered into a definitive agreement to be acquired by a wholly-owned subsidiary of Sekisui House in an all-cash transaction (the "Merger"). Consummation of the Merger is subject to shareholder approval, regulatory approval and completion of other customary closing conditions.

About MDC
M.D.C. Holdings, Inc. was founded in 1972. MDC's homebuilding subsidiaries, which operate under the name Richmond American Homes, have helped more than 240,000 homebuyers achieve the American Dream since 1977. One of the largest homebuilders in the nation, MDC is committed to quality and value that is reflected in each home its subsidiaries build. The Richmond American companies have operations in Alabama, Arizona, California, Colorado, Florida, Idaho, Maryland, Nevada, New Mexico, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia and Washington. Mortgage lending, insurance and title services are offered by the following MDC subsidiaries, respectively: HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company. M.D.C. Holdings, Inc. stock is traded on the New York Stock Exchange under the symbol “MDC.” For more information, visit www.mdcholdings.com.
1



Forward-Looking Statements

Any statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of MDC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by MDC, including cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of MDC’s investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican Mortgage Corporation’s sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by MDC in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns and natural disasters; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including orders addressing the COVID-19 pandemic, the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) changes in energy prices; and (17) other factors over which MDC has little or no control. Additional information about the risks and uncertainties applicable to MDC's business is contained in MDC's Form 10-K for the year ended December 31, 2023, which is scheduled to be filed with the Securities and Exchange Commission today. All forward-looking statements are made as of their date, and the risk that actual results will differ materially from expectations expressed will increase with the passage of time. MDC undertakes no duty to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or webcasts should be consulted.

Contact:    Derek R. Kimmerle
    Vice President and Chief Accounting Officer
    1-866-424-3395
IR@mdch.com
2


M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)

Three Months Ended
December 31,		Year Ended
December 31,
2023202220232022
(Dollars in thousands, except per share amounts)
Homebuilding:
Home sale revenues$1,309,760 $1,487,279 $4,520,296 $5,586,264 
Home cost of sales(1,062,125)(1,170,989)(3,684,487)(4,214,379)
Inventory impairments(2,200)(92,800)(29,700)(121,875)
Total cost of sales(1,064,325)(1,263,789)(3,714,187)(4,336,254)
Gross profit245,435 223,490 806,109 1,250,010 
Selling, general and administrative expenses(126,862)(131,797)(429,894)(536,395)
Interest and other income21,755 7,046 73,567 10,843 
Other income (expense), net(637)(4,258)350 (32,991)
Homebuilding pretax income139,691 94,481 450,132 691,467 
Financial Services:
Revenues36,696 32,262 122,570 131,723 
Expenses(16,712)(16,887)(62,942)(71,327)
Other income (expense), net4,603 3,364 16,345 7,991 
Financial services pretax income24,587 18,739 75,973 68,387 
Income before income taxes164,278 113,220 526,105 759,854 
Provision for income taxes(44,771)(33,444)(125,100)(197,715)
Net income$119,507 $79,776 $401,005 $562,139 
Other comprehensive income net of tax:
Unrealized gain related to available-for-sale debt securities$(40)$— $51 $— 
Other comprehensive income(40)— 51 — 
Comprehensive income$119,467 $79,776 $401,056 $562,139 
Earnings per share:
Basic$1.60 $1.11 $5.42 $7.87 
Diluted$1.56 $1.08 $5.29 $7.67 
Weighted average common shares outstanding:
Basic74,216,586 71,646,237 73,505,508 71,035,558 
Diluted76,126,163 73,179,135 75,357,965 72,943,844 
Dividends declared per share$0.55 $0.50 $2.10 $2.00 

3


M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Unaudited)
December 31,
2023		December 31,
2022
(Dollars in thousands, except
per share amounts)
ASSETS
Homebuilding:
Cash and cash equivalents$1,475,964 $696,075 
Restricted cash4,094 3,143 
Marketable securities— 443,712 
Trade and other receivables119,004 116,364 
Inventories:
Housing completed or under construction1,881,268 1,722,061 
Land and land under development1,419,778 1,793,718 
Total inventories3,301,046 3,515,779 
Property and equipment, net82,218 63,730 
Deferred tax assets, net38,830 49,252 
Prepaids and other assets76,036 70,007 
Total homebuilding assets5,097,192 4,958,062 
Financial Services:
Cash and cash equivalents162,839 17,877 
Marketable securities78,250 117,388 
Mortgage loans held-for-sale, net258,212 229,513 
Other assets34,592 40,432 
Total financial services assets533,893 405,210 
Total Assets$5,631,085 $5,363,272 
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable$114,852 $109,218 
Accrued and other liabilities326,478 383,406 
Revolving credit facility10,000 10,000 
Senior notes, net1,483,404 1,482,576 
Total homebuilding liabilities1,934,734 1,985,200 
Financial Services:
Accounts payable and accrued liabilities113,485 110,536 
Mortgage repurchase facility204,981 175,752 
Total financial services liabilities318,466 286,288 
Total Liabilities2,253,200 2,271,488 
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding— — 
Common stock, $0.01 par value; 250,000,000 shares authorized; 74,661,479 and 72,585,596 issued and outstanding at December 31, 2023 and December 31, 2022, respectively747 726 
Additional paid-in-capital1,824,434 1,784,173 
Retained earnings1,552,653 1,306,885 
Accumulated other comprehensive income51 — 
Total Stockholders' Equity3,377,885 3,091,784 
Total Liabilities and Stockholders' Equity$5,631,085 $5,363,272 
4


M.D.C. HOLDINGS, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended
December 31,		Year Ended
December 31,
2023202220232022
(Dollars in thousands)
Operating Activities:
Net income$119,507 $79,776 $401,005 $562,139 
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Stock-based compensation expense9,110 10,637 23,468 60,985 
Depreciation and amortization7,683 7,088 25,553 27,751 
Inventory impairments2,200 92,800 29,700 121,875 
Project abandonment costs918 4,371 (45)33,129 
Amortization of discount of marketable debt securities(4,809)(3,208)(29,673)(4,290)
Deferred income tax expense7,800 (27,130)10,408 (31,310)
Net changes in assets and liabilities:
Trade and other receivables(22,993)(2,463)21,986 (21,784)
Mortgage loans held-for-sale, net(93,958)(38,680)(28,699)53,016 
Housing completed or under construction39,035 505,348 (163,877)186,265 
Land and land under development(106,658)(75,662)349,783 (95,402)
Prepaids and other assets(789)39,786 (3,886)31,736 
Accounts payable and accrued liabilities(18,565)(30,970)(74,093)(18,464)
Net cash provided by (used in) operating activities(61,519)561,693 561,630 905,646 
Investing Activities:
Purchases of marketable securities(77,979)(365,684)(1,166,412)(656,810)
Maturities of marketable securities430,000 100,000 1,679,000 100,000 
Purchases of property and equipment(28,265)(7,646)(43,145)(29,075)
Net cash provided by (used in) investing activities323,756 (273,330)469,443 (585,885)
Financing Activities:
Advances on mortgage repurchase facility, net59,511 (20,462)29,229 (80,548)
Dividend payments(41,065)(35,632)(155,237)(142,417)
Payments of deferred debt issuance costs(36)— (36)— 
Issuance of shares under stock-based compensation programs, net(39)28,385 20,773 16,840 
Net cash provided by (used in) financing activities18,371 (27,709)(105,271)(206,125)
Net increase in cash, cash equivalents and restricted cash280,608 260,654 925,802 113,636 
Cash, cash equivalents and restricted cash:
Beginning of period1,362,289 456,441 717,095 603,459 
End of period$1,642,897 $717,095 $1,642,897 $717,095 
Reconciliation of cash, cash equivalents and restricted cash:
Homebuilding:
Cash and cash equivalents$1,475,964 $696,075 $1,475,964 $696,075 
Restricted cash4,094 3,143 4,094 3,143 
Financial Services:
Cash and cash equivalents162,839 17,877 162,839 17,877 
Total cash, cash equivalents and restricted cash$1,642,897 $717,095 $1,642,897 $717,095 
5



New Home Deliveries
Three Months Ended December 31,
20232022% Change
HomesHome Sale
Revenues		Average
Price		HomesHome Sale
Revenues		Average
Price		HomesHome
Sale
Revenues		Average Price
(Dollars in thousands)
West1,397 $778,410 $557.2 1,308 $756,109 $578.1 7 %3 %(4)%
Mountain561 336,220 599.3 756 492,850 651.9 (26)%(32)%(8)%
East442 195,130 441.5 490 238,320 486.4 (10)%(18)%(9)%
Total2,400 $1,309,760 $545.7 2,554 $1,487,279 $582.3 (6)%(12)%(6)%

Year Ended December 31,
20232022% Change
HomesHome Sale
Revenues		Average
Price		HomesHome Sale
Revenues		Average
Price		HomesHome
Sale
Revenues		Average Price
(Dollars in thousands)
West4,821 $2,624,373 $544.4 5,234 $3,024,056 $577.8 (8)%(13)%(6)%
Mountain2,028 1,267,586 625.0 2,616 1,689,376 645.8 (22)%(25)%(3)%
East1,379 628,337 455.6 1,860 872,832 469.3 (26)%(28)%(3)%
Total8,228 $4,520,296 $549.4 9,710 $5,586,264 $575.3 (15)%(19)%(5)%

Net New Orders
Three Months Ended December 31,
20232022% Change
HomesDollar
Value
Average
Price 1
Monthly
Absorption
Rate 2
HomesDollar Value
Average Price 1
Monthly
Absorption Rate 2
HomesDollar ValueAverage PriceMonthly
Absorption
Rate
(Dollars in thousands)
West827 $457,532 $553.2 1.96155 $67,710 $436.8 0.39434 %576 %27 %406 %
Mountain372 219,867 591.0 2.29(37)(25,924)700.6 (0.24)N/AN/AN/AN/A
East316 138,770 439.1 2.7972 32,649 453.5 0.64339 %325 %(3)%333 %
Total1,515 $816,169 $538.7 2.17190 $74,435 $391.8 0.29697 %996 %38 %660 %
1 Gross order average selling price for the three months ended December 31, 2023 decreased approximately 2% year-over-year to $543,000.

Year Ended December 31,
20232022% Change
HomesDollar
Value		Average
Price
Monthly
Absorption
Rate 2
HomesDollar ValueAverage Price
Monthly
Absorption
Rate 2
HomesDollar ValueAverage PriceMonthly
Absorption
Rate
(Dollars in thousands)
West4,202 $2,399,987 $571.2 2.512,909 $1,735,202 $596.5 2.0144 %38 %(4)%25 %
Mountain1,657 1,004,360 606.1 2.501,157 788,734 681.7 1.8543 %27 %(11)%35 %
East1,285 578,427 450.1 2.85978 489,946 501.0 2.2531 %18 %(10)%27 %
Total7,144 $3,982,774 $557.5 2.575,044 $3,013,882 $597.5 2.0242 %32 %(7)%27 %
2 Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period
6


Active Subdivisions

Average Active Subdivisions
Active SubdivisionsThree Months EndedYear Ended
December 31,%December 31,%December 31,%
20232022Change20232022Change20232022Change
West138 134 3 %141 133 5 %140 120 17 %
Mountain53 53 — %54 51 6 %55 52 6 %
East35 38 (8)%38 37 1 %38 36 6 %
Total226 225 — %233 222 5 %233 208 12 %

Backlog

December 31,
20232022% Change
HomesDollar
Value		Average
Price		HomesDollar
Value		Average
Price		HomesDollar
Value		Average
Price
(Dollars in thousands)
West1,272 $789,317 $620.5 1,891 $1,049,805 $555.2 (33)%(25)%12 %
Mountain344 237,154 689.4 715 515,460 720.9 (52)%(54)%(4)%
East274 130,524 476.4 368 187,629 509.9 (26)%(30)%(7)%
Total1,890 $1,156,995 $612.2 2,974 $1,752,894 $589.4 (36)%(34)%4 %

Homes Completed or Under Construction (WIP lots)

 December 31,%
 20232022Change
Unsold:
Completed339 396 (14)%
Under construction2,709 1,063 155 %
Total unsold started homes3,048 1,459 109 %
Sold homes under construction or completed1,812 2,756 (34)%
Model homes under construction or completed542 555 (2)%
Total homes completed or under construction5,402 4,770 13 %

Lots Owned and Optioned (including homes completed or under construction)

 December 31, 2023December 31, 2022 
 Lots
Owned		Lots
Optioned		TotalLots
Owned		Lots
Optioned		TotalTotal
% Change
West9,957 1,186 11,143 12,667 687 13,354 (17)%
Mountain5,038 1,088 6,126 5,398 1,561 6,959 (12)%
East3,004 2,142 5,146 3,534 1,455 4,989 3 %
Total17,999 4,416 22,415 21,599 3,703 25,302 (11)%
7


Selling, General and Administrative Expenses

Three Months Ended December 31,Year Ended December 31,
20232022Change20232022Change
(Dollars in thousands)
General and administrative expenses$62,665 $66,614 $(3,949)$203,878 $292,349 $(88,471)
General and administrative expenses as a percentage of home sale revenues
4.8 %4.5 %30 bps4.5 %5.2 %-70 bps
Marketing expenses$26,199 $25,308 $891 $96,807 $103,330 $(6,523)
Marketing expenses as a percentage of home sale revenues
2.0 %1.7 %30 bps2.1 %1.8 %30 bps
Commissions expenses$37,998 $39,875 $(1,877)$129,209 $140,716 $(11,507)
Commissions expenses as a percentage of home sale revenues
2.9 %2.7 %20 bps2.9 %2.5 %40 bps
Total selling, general and administrative expenses$126,862 $131,797 $(4,935)$429,894 $536,395 $(106,501)
Total selling, general and administrative expenses as a percentage of home sale revenues
9.7 %8.9 %80 bps9.5 %9.6 %-10 bps

Capitalized Interest

Three Months Ended
December 31,		Year Ended
December 31,
2023202220232022
(Dollars in thousands)
Homebuilding interest incurred$17,515 $17,419 $69,901 $69,450 
Less: Interest capitalized(17,515)(17,419)(69,901)(69,450)
Homebuilding interest expensed$— $— $— $— 
Interest capitalized, beginning of period$65,428 $63,583 $59,921 $58,054 
Plus: Interest capitalized during period17,515 17,419 69,901 69,450 
Less: Previously capitalized interest included in home and land cost of sales(18,284)(21,081)(65,163)(67,583)
Interest capitalized, end of period$64,659 $59,921 $64,659 $59,921 
8

v3.24.0.1
Cover
Jan. 30, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Jan. 30, 2024
Entity Registrant Name M.D.C. Holdings, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 1-8951
Entity Tax Identification Number 84-0622967
Entity Address, Address Line One 4350 South Monaco Street
Entity Address, Address Line Two Suite 500
Entity Address, City or Town Denver
Entity Address, State or Province CO
Entity Address, Postal Zip Code 80237
City Area Code 303
Local Phone Number 773-1100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000773141
Amendment Flag false
Common Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $.01 par value
Trading Symbol MDC
Security Exchange Name NYSE
Senior Notes, 6%, Due January 2043 [Member]  
Document Information [Line Items]  
Title of 12(b) Security 6% Senior Notes due January 2043
Trading Symbol MDC 43
Security Exchange Name NYSE
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