EXHIBIT 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2006 | 2005 | 2006 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||
Earnings | $ | 403,833 | $ | 526,731 | $ | 94,307 | $ | 204,386 | $ | 858,443 | $ | 675,748 | $ | 389,940 | $ | 301,072 | $ | 286,228 | ||||||||||||||||||
Fixed Charges | $ | 60,843 | $ | 47,157 | $ | 19,462 | $ | 18,645 | $ | 67,459 | $ | 43,011 | $ | 43,977 | $ | 27,453 | $ | 28,782 | ||||||||||||||||||
Earnings to Fixed Charges | 6.64 | 11.17 | 4.85 | 10.96 | 12.73 | 15.71 | 8.87 | 10.97 | 9.94 | |||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 351,136 | 493,232 | 76,421 | 193,326 | 808,763 | 636,914 | 348,223 | 274,044 | 255,387 | |||||||||||||||||||||||||||
Add Fixed Charges | 60,843 | 47,157 | 19,462 | 18,645 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
Less capitalized interest | (43,993 | ) | (36,540 | ) | (14,150 | ) | (14,615 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | (22,498 | ) | ||||||||||||||||||
Add amortization of previously capitalized interest | 35,847 | 22,882 | 12,574 | 7,030 | 34,093 | 28,702 | 24,519 | 20,691 | 24,557 | |||||||||||||||||||||||||||
Total Earnings | 403,833 | 526,731 | 94,307 | 204,386 | 858,443 | 675,748 | 389,940 | 301,072 | 286,228 | |||||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Mortgage lending interest expense | 6,572 | 2,152 | 2,291 | 1,014 | 3,850 | 1,946 | 1,967 | 1,822 | 2,666 | |||||||||||||||||||||||||||
Interest component of rent expense | 7,148 | 5,175 | 2,304 | 1,824 | 7,369 | 5,462 | 3,897 | 2,812 | 2,253 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 3,130 | 3,290 | 717 | 1,192 | 4,368 | 2,724 | 11,334 | 1,703 | 1,365 | |||||||||||||||||||||||||||
Capitalized interest | 43,993 | 36,540 | 14,150 | 14,615 | 51,872 | 32,879 | 26,779 | 21,116 | 22,498 | |||||||||||||||||||||||||||
Total Fixed Charges | 60,843 | 47,157 | 19,462 | 18,645 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |