Exhibit 12.1
M.D.C. HOLDINGS, INC.
RATIO OF (LOSS) EARNINGS TO FIXED CHARGES
| Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 |
Year Ended December 31, | ||||||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||
Earnings (Loss) | $ | 52,154 | $ | 86,004 | $ | 95,914 | $ | (62,329 | ) | $ | (5,268 | ) | $ | (28,481 | ) | $ | (299,317 | ) | ||||||||||
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Fixed Charges | $ | 15,898 | $ | 30,810 | $ | 45,200 | $ | 65,439 | $ | 75,440 | $ | 67,954 | $ | 68,570 | ||||||||||||||
(Loss) Earnings to Fixed Charges | $ | 3.28 | $ | 2.79 | $ | 2.12 | $ | – | $ | – | $ | – | $ | – | ||||||||||||||
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Earnings (Loss): | ||||||||||||||||||||||||||||
Income (Loss) before income taxes | $ | 38,012 | $ | 60,598 | $ | 61,115 | $ | (107,472 | ) | $ | (70,601 | ) | $ | (107,335 | ) | $ | (382,135 | ) | ||||||||||
Add: Fixed Charges | 15,898 | 30,810 | 45,200 | 65,439 | 75,440 | 67,954 | 68,570 | |||||||||||||||||||||
Less: Capitalized Interest | (14,436 | ) | (27,958 | ) | (41,507 | ) | (41,448 | ) | (33,919 | ) | (19,810 | ) | (39,852 | ) | ||||||||||||||
Add: Amortization of Previously Capitalized Interest | 12,680 | 22,554 | 31,106 | 21,152 | 23,812 | 30,710 | 54,100 | |||||||||||||||||||||
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Total (Loss) Earnings | $ | 52,154 | $ | 86,004 | $ | 95,914 | $ | (62,329 | ) | $ | (5,268 | ) | $ | (28,481 | ) | $ | (299,317 | ) | ||||||||||
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Fixed Charges: | ||||||||||||||||||||||||||||
Homebuilding and corporate interest expense(1) | $ | 909 | $ | 1,726 | $ | 808 | $ | 20,842 | $ | 38,157 | $ | 44,436 | $ | 24,027 | ||||||||||||||
Mortgage lending interest expense | 72 | 165 | 607 | 442 | 466 | 451 | 329 | |||||||||||||||||||||
Interest component of rent expense | 481 | 961 | 2,278 | 2,707 | 2,898 | 3,257 | 4,362 | |||||||||||||||||||||
Capitalized interest | 14,436 | 27,958 | 41,507 | 41,448 | 33,919 | 19,810 | 39,852 | |||||||||||||||||||||
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Total Fixed Charges | $ | 15,898 | $ | 30,810 | $ | 45,200 | $ | 65,439 | $ | 75,440 | $ | 67,954 | $ | 68,570 | ||||||||||||||
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| (1) | Includes the amortization and expensing of debt expenses that were not capitalized during period |
In computing the ratio of earnings to fixed charges, fixed charges consist of homebuilding and corporate interest expense which includes the amortization and expensing of debt expenses that were not capitalized during period, mortgage lending interest expense, interest component of rent expense, and capitalized interest. Earnings are computed by adding fixed charges (except capitalized interest) and amortization of previously capitalized interest during the period to (loss) earnings before income taxes. For the years ended December 31, 2011, 2010, 2009 and 2008, the Company generated losses which exceeded fixed charges of $127.8 million, $80.7 million, $96.4 million and $367.9 million, respectively.