Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2007 | 2006 | 2007 | 2006 | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||||||||||
Earnings | $ | (515,782 | ) | $ | 403,833 | $ | (233,616 | ) | $ | 94,307 | $ | 405,396 | $ | 858,443 | $ | 675,748 | $ | 389,940 | $ | 301,072 | ||||||||||||||||
Fixed Charges | $ | 53,590 | $ | 60,843 | $ | 17,714 | $ | 19,462 | $ | 80,915 | $ | 67,459 | $ | 43,011 | $ | 43,977 | $ | 27,453 | ||||||||||||||||||
Earnings to Fixed Charges | (9.62 | ) | 6.64 | (13.19 | ) | 4.85 | 5.01 | 12.73 | 15.71 | 8.87 | 10.97 | |||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax Earnings from Continuing Operations | (566,023 | ) | 351,136 | (251,314 | ) | 76,421 | 333,137 | 808,763 | 636,914 | 348,223 | 274,044 | |||||||||||||||||||||||||
Add Fixed Charges | 53,590 | 60,843 | 17,714 | 19,462 | 80,915 | 67,459 | 43,011 | 43,977 | 27,453 | |||||||||||||||||||||||||||
Less capitalized interest | (43,320 | ) | (43,993 | ) | (14,444 | ) | (14,150 | ) | (58,141 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | (21,116 | ) | ||||||||||||||||||
Add amortization of previously capitalized interest | 39,971 | 35,847 | 14,428 | 12,574 | 49,485 | 34,093 | 28,702 | 24,519 | 20,691 | |||||||||||||||||||||||||||
Total Earnings | (515,782 | ) | 403,833 | (233,616 | ) | 94,307 | 405,396 | 858,443 | 675,748 | 389,940 | 301,072 | |||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Mortgage lending interest expense | 1,353 | 6,572 | 343 | 2,291 | 8,816 | 3,850 | 1,946 | 1,967 | 1,822 | |||||||||||||||||||||||||||
Interest component of rent expense | 5,923 | 7,148 | 1,875 | 2,304 | 9,852 | 7,369 | 5,462 | 3,897 | 2,812 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 2,994 | 3,130 | 1,052 | 717 | 4,106 | 4,368 | 2,724 | 11,334 | 1,703 | |||||||||||||||||||||||||||
Capitalized interest | 43,320 | 43,993 | 14,444 | 14,150 | 58,141 | 51,872 | 32,879 | 26,779 | 21,116 | |||||||||||||||||||||||||||
Total Fixed Charges | 53,590 | 60,843 | 17,714 | 19,462 | 80,915 | 67,459 | 43,011 | 43,977 | 27,453 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |