Industry News

Builder MDC Holdings reports Q4 net loss of $281 million

Company had 65% order cancellation rate during quarter

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MDC Holdings, the builder that operates the Richmond American Homes brand, reported a $636.9 million net loss, or $13.94 per share, for the full year in 2007, and a net loss of $281.1 million, or $6.14 per share, for the fourth quarter. Several other major public builders have also reported quarterly losses in the past week, with Standard Pacific Corp. announcing a $767.3 million net loss for the full year in 2007 and a $449.9 million fourth-quarter net loss; D.R. Horton announcing a $128.8 million net loss; and Toll Brothers announcing a 22 percent year-over-year drop in revenues. MDC reported an order cancellation rate of 65 percent in the fourth quarter, and a cancellation rate of 48 percent for the full year in 2007. That compares with a cancellation rate of 57 percent in fourth-quarter 2006 and 43 percent for the full year in 2006. The company had pre-tax charges of $726.6 million for asset impairments and $23.4 million for write-offs of deposits and pre-acquisition co...