Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Three Months to March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(dollars in thousands) | 2005 | 2004 | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||||||
Earnings | $ | 146,114 | $ | 108,372 | $ | 675,748 | $ | 389,940 | $ | 301,072 | $ | 286,228 | $ | 232,034 | ||||||||||||||
Fixed Charges | $ | 13,706 | $ | 9,558 | $ | 43,011 | $ | 43,977 | $ | 27,453 | $ | 28,782 | $ | 30,844 | ||||||||||||||
Earnings to Fixed Charges | 10.66 | 11.34 | 15.71 | 8.87 | 10.97 | 9.94 | 7.52 | |||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 135,929 | 99,818 | 636,914 | 348,223 | 274,044 | 255,387 | 203,201 | |||||||||||||||||||||
Add Fixed Charges | 13,706 | 9,558 | 43,011 | 43,977 | 27,453 | 28,782 | 30,844 | |||||||||||||||||||||
Less capitalized interest | (10,815 | ) | (7,366 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | (22,498 | ) | (24,367 | ) | ||||||||||||||
Add amortization of previously capitalized interest | 7,294 | 6,362 | 28,702 | 24,519 | 20,691 | 24,557 | 22,356 | |||||||||||||||||||||
Total Earnings | 146,114 | 108,372 | 675,748 | 389,940 | 301,072 | 286,228 | 232,034 | |||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Mortgage lending interest expense | 484 | 383 | 1,946 | 1,967 | 1,822 | 2,666 | 3,115 | |||||||||||||||||||||
Interest component of rent expense | 1,516 | 1,075 | 5,462 | 3,897 | 2,812 | 2,253 | 2,177 | |||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 891 | 734 | 2,724 | 11,334 | 1,703 | 1,365 | 1,185 | |||||||||||||||||||||
Capitalized interest | 10,815 | 7,366 | 32,879 | 26,779 | 21,116 | 22,498 | 24,367 | |||||||||||||||||||||
Total Fixed Charges | 13,706 | 9,558 | 43,011 | 43,977 | 27,453 | 28,782 | 30,844 | |||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |