M.D.C. Holdings, Inc. (MDC) has reported a 78.37 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $26.36 million, or $0.54 a share in the quarter, compared with $14.78 million, or $0.30 a share for the same period last year.
Revenue during the quarter grew 27.09 percent to $595.42 million from $468.49 million in the previous year period.
Cost of revenue rose 28.18 percent or $107.41 million during the quarter to $488.53 million. Gross margin for the quarter contracted 70 basis points over the previous year period to 17.95 percent.
Total expenses were $558.39 million for the quarter, up 25.76 percent or $114.36 million from year-ago period. Operating margin for the quarter expanded 100 basis points over the previous year period to 6.22 percent.
Operating income for the quarter was $37.03 million, compared with $24.46 million in the previous year period.
Larry A. Mizel, MDC's chairman and chief executive officer, stated, "We are very pleased with our 2016 third quarter results, as our net income increased by 78% year-over-year. Even though our cycle times continued to increase during the quarter based on limited subcontractor availability in many markets, we still increased our home sale revenues by 27% over the prior year, resulting in better leverage of our overhead costs and higher return on equity than a year ago."
Operating cash flow remains negative
MDC HOLDINGS has spent $8.90 million cash to meet operating activities during the nine month period as against cash outgo of $26.49 million in the last year period.
Cash flow from investing activities was $24.74 million for the nine month period, down 49.21 percent or $23.97 million, when compared with the last year period.
The company has spent $33.36 million cash to carry out financing activities during the nine month period as against cash outgo of $53.05 million in the last year period.
Cash and cash equivalents stood at $163.46 million as on Sep. 30, 2016, up 32.90 percent or $40.46 million from $123 million on Sep. 30, 2015.
Real estate inventory stood at $1,847.10 million as on Sep. 30, 2016. Net receivables were at $43.08 million as on Sep. 30, 2016, up 50.70 percent or $14.49 million from year-ago.
Investments stood at $226.34 million as on Sep. 30, 2016, up 81.81 percent or $101.85 million from year-ago.
Total assets grew 5.25 percent or $123.40 million to $2,474.27 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,181.65 million as on Sep. 30, 2016, up 6.62 percent or $73.39 million from year-ago.
Return on assets moved up 44 basis points to 1.07 percent in the quarter. At the same time, return on equity moved up 85 basis points to 2.04 percent in the quarter.
Shareholders equity stood at $1,292.62 million as on Sep. 30, 2016, up 4.02 percent or $50.01 million from year-ago. As a result, debt to equity ratio was almost stable at 0.73 percent in the quarter, when compared with the last year period.
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