Industry News

MDC reports drop in home orders

Cancellation rate grows to 31% in first quarter

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Home builder MDC Holdings, which operates as Richmond American Homes, reported 3,800 net home orders in the first quarter, a 19.6 percent drop from 4,546 home orders in first-quarter 2005. The order cancellation rate increased from 20.2 percent in first-quarter 2005 to 31 percent in first-quarter 2006. The company's backlog increased from $2.44 billion in fourth-quarter 2005 to $2.7 billion (7,134 homes) in first-quarter 2006. And MDC reported 3,198 homes closed in first-quarter 2006, compared to 3,158 homes closed in first-quarter 2005. Net income grew from $84.6 million in first-quarter 2005 to $95.4 million in first-quarter 2006, a gain of 12.7 percent. The company's net income for the first quarter represents $2.08 earnings per share, compared with $1.86 per share for the same period in 2005. Total revenue for the first quarter reached $1.14 billion, up 22 percent from the same period in 2005. Larry A. Mizel, MDC's chairman and CEO, said in a statement that the market is definit...