MDC down $281 million in Q4

The Rocky

Friday, February 8, 2008

Denver home builder MDC Holdings, racked by the national housing crunch, reported a fourth-quarter net loss of $281.1 million, or $6.14 per diluted share, compared with a net loss for the fourth quarter of 2006 of $6.4 million, or 14 cents per diluted share.

Revenue dropped 42 percent, to $784.8 million, from fourth- quarter 2006.

The loss included massive charges, write-offs and losses linked to the home-building slowdown. The company took $175.2 million in pre-tax charges to write down the value of some of its land inventory ($126 million) and homes under construction ($49 million).

It also wrote off $7.8 million related to options to buy land that MDC will not pursue; posted $13.8 million in net pre-tax losses on land sales; and wrote down the value of its deferred tax assets by $160.0 million.

For the 2007 fiscal year, the net loss was $636.9 million, or $13.94 per diluted share. Net income for the 2006 full year was $214.3 billion.

Larry Mizel, MDC's chairman and CEO, pointed to the company's 2007 operating cash flow of more than $590 million and fourth-quarter cash flow of almost $260 million, noting that the company now has more than $1 billion in cash on hand.

* Denver-based real estate company ProLogis reported net income of $113.3 million, or 44 cents per share, compared with $331.1 million, or $1.33 per share, in 2006's fourth quarter. Revenue was up 29 percent to $799.9 million.

For 2007, net income was $1.05 billion, or $3.94 per share, compared with $849.0 million, or $3.32 per share, in 2006. Revenue was up 154 percent to $6.2 billion on the strength of a $3.7 billion increase in sales of developed and acquired properties.

The company also said Walter C. Rakowich plans to retire as president and chief operating officer effective Jan. 2, 2009.