EXHIBIT 12.1
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Six Months to June 30, | Year Ended December 31, | ||||||||||||||||||||||||
2003 | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||||||
Earnings | $ | 154,488 | $ | 299,250 | $ | 283,562 | $ | 228,919 | $ | 181,602 | $ | 118,989 | |||||||||||||
Fixed Charges | $ | 26,524 | $ | 25,631 | $ | 26,116 | $ | 27,729 | $ | 24,223 | $ | 48,378 | |||||||||||||
Earnings to Fixed Charges | 5.82 | 11.68 | 10.86 | 8.26 | 7.50 | 2.46 | |||||||||||||||||||
Ratio Before Reclassification of Costs Associated with the Early Extinguishment of Debt (1) | 11.68 | 10.86 | 8.26 | 7.50 | 5.07 | ||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 130,771 | 274,044 | 255,387 | 203,201 | 148,453 | 58,952 | |||||||||||||||||||
Add: | |||||||||||||||||||||||||
Fixed Charges | 26,524 | 25,631 | 26,116 | 27,729 | 24,223 | 48,378 | |||||||||||||||||||
Less capitalized interest | (14,415 | ) | (21,116 | ) | (22,498 | ) | (24,367 | ) | (21,261 | ) | (22,525 | ) | |||||||||||||
Add amortization of previously capitalized interest | 11,608 | 20,691 | 24,557 | 22,356 | 30,187 | 34,184 | |||||||||||||||||||
Total Earnings | 154,488 | 299,250 | 283,562 | 228,919 | 181,602 | 118,989 | |||||||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Interest component of rent expense | 1,728 | 2,812 | 2,253 | 2,177 | 1,615 | 0 | |||||||||||||||||||
Amortization and expensing of debt expenses (1) | 10,381 | 1,703 | 1,365 | 1,185 | 1,347 | 25,853 | |||||||||||||||||||
Capitalized interest | 14,415 | 21,116 | 22,498 | 24,367 | 21,261 | 22,525 | |||||||||||||||||||
Total Fixed Charges | 26,524 | 25,631 | 26,116 | 27,729 | 24,223 | 48,378 | |||||||||||||||||||
(1) | The Company adopted the provisions of SFAS No. 145, with respect to the rescission of SFAS No. 4, in the first quarter of 2003. As a result, $24.9 million of costs in 1998 associated with the early extinguishment of debt, previously classified as an extraordinary item are currently classified as expenses related to debt redemption and are deducted in calculating pre-tax income. In the second quarter of 2003, the Company incurred $9.3 million in expenses related to debt redemption. The effect of the new classification has been reflected in the computation of the 1998 and 2003 ratios. |