EXHIBIT 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, | Three Months Ended June 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2006 | 2005 | 2006 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||
Earnings | $ | 309,311 | $ | 322,345 | $ | 141,728 | $ | 176,230 | $ | 858,443 | $ | 675,748 | $ | 389,940 | $ | 301,072 | $ | 286,228 | ||||||||||||||||||
Fixed Charges | $ | 41,166 | $ | 28,512 | $ | 20,841 | $ | 14,805 | $ | 67,459 | $ | 43,011 | $ | 43,977 | $ | 27,453 | $ | 28,782 | ||||||||||||||||||
Earnings to Fixed Charges | 7.51 | 11.31 | 6.80 | 11.90 | 12.73 | 15.71 | 8.87 | 10.97 | 9.94 | |||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | 274,715 | 299,906 | 122,234 | 163,977 | 808,763 | 636,914 | 348,223 | 274,044 | 255,387 | |||||||||||||||||||||||||||
Add Fixed Charges | 41,166 | 28,512 | 20,841 | 14,805 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
Less capitalized interest | (29,843 | ) | (21,925 | ) | (15,002 | ) | (11,110 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | (22,498 | ) | ||||||||||||||||||
Add amortization of previously capitalized interest | 23,273 | 15,852 | 13,655 | 8,558 | 34,093 | 28,702 | 24,519 | 20,691 | 24,557 | |||||||||||||||||||||||||||
Total Earnings | 309,311 | 322,345 | 141,728 | 176,230 | 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 | 4,281 | 1,138 | 2,317 | 654 | 3,850 | 1,946 | 1,967 | 1,822 | 2,666 | |||||||||||||||||||||||||||
Interest component of rent expense | 4,843 | 3,351 | 2,442 | 1,835 | 7,369 | 5,462 | 3,897 | 2,812 | 2,253 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 2,199 | 2,098 | 1,080 | 1,206 | 4,368 | 2,724 | 11,334 | 1,703 | 1,365 | |||||||||||||||||||||||||||
Capitalized interest | 29,843 | 21,925 | 15,002 | 11,110 | 51,872 | 32,879 | 26,779 | 21,116 | 22,498 | |||||||||||||||||||||||||||
Total Fixed Charges | 41,166 | 28,512 | 20,841 | 14,805 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |