Homebuilder M.D.C. Holdings narrows 3Q loss

DENVER - Homebuilder M.D.C. Holdings Inc. said Friday that it lost $118 million in the third quarter, narrower than the $155.4 million loss a year ago, as it took charges related to the value of inventory.

The company also does mortgage financing. It said it cut 10 percent of its work force in the quarter.

It lost $2.55 per share in the quarter that ended Sept. 30, compared with a loss of $3.40 per share a year ago.

Revenue fell 47 percent to $361.2 million.

Analysts polled by Thomson Reuters expected M.D.C. to lose $1.10 per share on revenue of $347.1 million. They typically exclude one-time costs.

Asset impairment charges amounted to $95.4 million in the most recent quarter, less than half the $249 million charge for asset impairment in the 2007 quarter.

The company said it closed on 1,116 homes with an average selling price of $301,700. Sales volume slid 43 percent from the 1,963 homes it closed in the prior-year period. However, the cancellation rate improved to 46 percent compared with 57 percent a year ago. Its backlog of homes shrunk to 1,127 homes from 3,399 a year ago.

To cut costs in the homebuilding business, the company said it would leave the Illinois market.

"We continue to build on or sell the lots we control in this market but currently have no plans to evaluate any new land investments," Chief Financial Officer Christopher Anderson said in a statement. During the quarter, homes closed in the state fell 37 percent to 26, and the average selling price declined 11 percent to $351,700.

Shares rose 33 cents to $31.55 in morning trading. They have traded in a 52-week range of $25 to $48.62.

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