Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, | Three Months Ended June 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2007 | 2006 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||||||
Earnings | $ | (284,435 | ) | $ | 301,890 | $ | (154,378 | ) | $ | 136,631 | $ | 858,443 | $ | 675,748 | $ | 389,940 | $ | 301,072 | $ | 286,228 | ||||||||||||||||
Fixed Charges | $ | 35,877 | $ | 41,166 | $ | 17,430 | $ | 20,845 | $ | 67,459 | $ | 43,011 | $ | 43,977 | $ | 27,453 | $ | 28,782 | ||||||||||||||||||
Earnings to Fixed Charges | (7.93 | ) | 7.33 | (8.86 | ) | 6.55 | 12.73 | 15.71 | 8.87 | 10.97 | 9.94 | |||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | (314,709 | ) | 274,715 | (171,028 | ) | 122,234 | 808,763 | 636,914 | 348,223 | 274,044 | 255,387 | |||||||||||||||||||||||||
Add Fixed Charges | 35,877 | 41,166 | 17,430 | 20,845 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
Less capitalized interest | (28,876 | ) | (29,843 | ) | (14,435 | ) | (15,006 | ) | (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 | (284,435 | ) | 301,890 | (154,378 | ) | 136,631 | 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 | 1,010 | 4,281 | 359 | 2,317 | 3,850 | 1,946 | 1,967 | 1,822 | 2,666 | |||||||||||||||||||||||||||
Interest component of rent expense | 4,049 | 4,843 | 1,664 | 2,442 | 7,369 | 5,462 | 3,897 | 2,812 | 2,253 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 1,942 | 2,199 | 972 | 1,080 | 4,368 | 2,724 | 11,334 | 1,703 | 1,365 | |||||||||||||||||||||||||||
Capitalized interest | 28,876 | 29,843 | 14,435 | 15,006 | 51,872 | 32,879 | 26,779 | 21,116 | 22,498 | |||||||||||||||||||||||||||
Total Fixed Charges | 35,877 | 41,166 | 17,430 | 20,845 | 67,459 | 43,011 | 43,977 | 27,453 | 28,782 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |