MDC Holdings 4Q loss narrows on smaller charges

MDC Holdings says 4Q loss shrinks on smaller charges, sees home building conditions improve

• On 8:06 am EDT, Friday October 30, 2009

DENVER (AP) -- The homebuilder MDC Holdings Inc. posted a narrower fourth-quarter loss on Friday, as asset impairment charges shrank and home building conditions showed signs of improvement.

The company said it saw a year-over-year increase in net home orders for the second consecutive quarter, though it outlook remained "cautious" amid high unemployment.

"During the third quarter, an increasing national unemployment rate overshadowed an improvement in overall homebuilding industry conditions," CEO Larry A. Mizel said in a statement.

The company said it lost $32 million, or 69 cents per share, in the quarter ended Sept. 30, compared with a loss of $118 million, or $2.55 per share, in the year-ago quarter.

The company said it recorded a $1.2 million asset impairment charge in the most recent quarter. Excluding the charge, the company would have lost 66 cents per share.

The year-ago loss included a $95.4 million asset impairment charge.

Revenue fell 44 percent to $203.2 million from $362.7 million a year ago. Analysts surveyed by Thomson Reuters expected a smaller loss of 37 cents per share on $228.3 million in revenue.

The company said it ended the quarter with 1,016 net home orders with an estimated sales value of $271.9 million. That's up from the third quarter last year, which it ended with 667 orders worth $182.1 million.

The company also said it reduced the number of unsold homes by more than 40 percent and finished homes by 75 percent.

Shares closed Thursday at $33.85.

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