EXHIBIT 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended | Three Months to | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
2004 | 2003 | 2004 | 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||||||||||||
Earnings | $ | 432,326 | $ | 268,474 | $ | 180,542 | $ | 115,894 | $ | 389,940 | $ | 301,072 | $ | 286,228 | $ | 232,034 | $ | 183,508 | ||||||||||||||||||
Fixed Charges | $ | 30,563 | $ | 35,512 | $ | 10,904 | $ | 8,007 | $ | 43,977 | $ | 27,453 | $ | 28,782 | $ | 30,844 | $ | 26,129 | ||||||||||||||||||
Earnings to Fixed Charges | 14.15 | 7.56 | 16.56 | 14.47 | 8.87 | 10.97 | 9.94 | 7.52 | 7.02 | |||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 404,974 | 238,133 | 170,869 | 107,362 | 348,223 | 274,044 | 255,387 | 203,201 | 148,453 | |||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||
Fixed Charges | 30,563 | 26,524 | 10,904 | 8,007 | 43,977 | 27,453 | 28,782 | 30,844 | 26,129 | |||||||||||||||||||||||||||
Less capitalized interest | (23,481 | ) | (14,415 | ) | (8,406 | ) | (6,099 | ) | (26,779 | ) | (21,116 | ) | (22,498 | ) | (24,367 | ) | (21,261 | ) | ||||||||||||||||||
Add amortization of previously capitalized interest | 20,270 | 18,232 | 7,175 | 6,624 | 24,519 | 20,691 | 24,557 | 22,356 | 30,187 | |||||||||||||||||||||||||||
Total Earnings | 432,326 | 268,474 | 180,542 | 115,894 | 389,940 | 301,072 | 286,228 | 232,034 | 183,508 | |||||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Mortgage lending interest expense | 1,324 | 1,557 | 521 | 576 | 1,967 | 1,822 | 2,666 | 3,115 | 1,906 | |||||||||||||||||||||||||||
Interest component of rent expense | 3,839 | 2,610 | 1,517 | 882 | 3,897 | 2,812 | 2,253 | 2,177 | 1,615 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 1,919 | 10,831 | 460 | 450 | 11,334 | 1,703 | 1,365 | 1,185 | 1,347 | |||||||||||||||||||||||||||
Capitalized interest | 23,481 | 20,514 | 8,406 | 6,099 | 26,779 | 21,116 | 22,498 | 24,367 | 21,261 | |||||||||||||||||||||||||||
Total Fixed Charges | 30,563 | 35,512 | 10,904 | 8,007 | 43,977 | 27,453 | 28,782 | 30,844 | 26,129 | |||||||||||||||||||||||||||
(1) | Quarter Ended June 30, 2003 includes $9,315,000 of expenses related to debt redemption. |