On April 26, Motley Fool Hidden Gems recommendation MDC Holdings
- Net income swung to a $94.4 million loss, compared to $95.4 million net income in the prior year period. The loss was due to asset impairment and project cost write-offs of $145.4 million.
- MDC cut its speculative home inventory count to 422.
- Impairments were related to land held in California, Nevada, and Florida, with California accounting for 60% of charges.
- The company continues to keep its balance sheet strong, and ended the quarter with a combined $1.87 billion in cash and borrowing capacity.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$745,124 |
$1,145,425 |
(34.9%) |
|
Net Profit |
($94,398) |
$95,421 |
N/A |
|
EPS |
($2.07) |
$2.08 |
N/A |
|
Diluted Shares |
45,501 |
45,970 |
(1.0%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
18.90% |
28.71% |
(9.81) |
|
Operating Margin |
(19.28%) |
13.31% |
(32.59) |
|
Net Margin |
(12.67%) |
8.33% |
(21.00) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$633,227 |
$171,220 |
269.8% |
|
Accounts Rec. |
$69,255 |
$80,016 |
(13.4%) |
|
Inventory |
$3,112,941 |
$3,160,669 |
(1.5%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$132,905 |
$282,072 |
(52.9%) |
|
Long-Term Debt |
$1,097,485 |
$1,221,931 |
(10.2%) |
The balance sheet reflects the company's health.
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool has a disclosure policy.
