Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||
(Losses) Earnings | $ | (126,390 | ) | $ | 167,582 | $ | 405,396 | $ | 858,443 | $ | 675,748 | $ | 389,940 | $ | 301,072 | |||||||||||||
Fixed Charges | $ | 18,447 | $ | 20,324 | $ | 80,915 | $ | 67,459 | $ | 43,011 | $ | 43,977 | $ | 27,453 | ||||||||||||||
(Losses) Earnings to Fixed Charges | (6.85 | ) | 8.25 | 5.01 | 12.73 | 15.71 | 8.87 | 10.97 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax (Losses) Earnings from Continuing Operations | (143,681 | ) | 152,481 | 333,137 | 808,763 | 636,914 | 348,223 | 274,044 | ||||||||||||||||||||
Add Fixed Charges | 18,447 | 20,324 | 80,915 | 67,459 | 43,011 | 43,977 | 27,453 | |||||||||||||||||||||
Less capitalized interest | (14,441 | ) | (14,841 | ) | (58,141 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | ||||||||||||||
Add amortization of previously capitalized interest | 13,285 | 9,618 | 49,485 | 34,093 | 28,702 | 24,519 | 20,691 | |||||||||||||||||||||
Total (Losses) Earnings | (126,390 | ) | 167,582 | 405,396 | 858,443 | 675,748 | 389,940 | 301,072 | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Mortgage lending interest expense | 651 | 1,964 | 8,816 | 3,850 | 1,946 | 1,967 | 1,822 | |||||||||||||||||||||
Interest component of rent expense | 2,385 | 2,401 | 9,852 | 7,369 | 5,462 | 3,897 | 2,812 | |||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 970 | 1,118 | 4,106 | 4,368 | 2,724 | 11,334 | 1,703 | |||||||||||||||||||||
Capitalized interest | 14,441 | 14,841 | 58,141 | 51,872 | 32,879 | 26,779 | 21,116 | |||||||||||||||||||||
Total Fixed Charges | 18,447 | 20,324 | 80,915 | 67,459 | 43,011 | 43,977 | 27,453 | |||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |