Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF (LOSS) EARNINGS TO FIXED CHARGES
Six Months Ended June 30, | Three Months Ended June 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in 000's) | 2008 | 2007 | 2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||||||||||
Earnings | ($ | 141,196 | ) | ($ | 282,165 | ) | ($ | 82,098 | ) | ($ | 155,775 | ) | ($ | 688,767 | ) | $ | 405,396 | $ | 858,443 | $ | 675,748 | $ | 389,940 | |||||||||||||
Fixed Charges | $ | 33,757 | $ | 35,877 | $ | 16,949 | $ | 17,430 | $ | 70,529 | $ | 80,915 | $ | 67,459 | $ | 43,011 | $ | 43,977 | ||||||||||||||||||
(Loss) Earnings to Fixed Charges | (4.18 | ) | (7.86 | ) | (4.84 | ) | (8.94 | ) | (9.77 | ) | 5.01 | 12.73 | 15.71 | 8.87 | ||||||||||||||||||||||
Ratio Before Reclassification of Costs Associated with the Early Extinguishment of Debt (1) | (4.18 | ) | (7.86 | ) | (4.84 | ) | (8.94 | ) | (9.77 | ) | 5.01 | 12.73 | 15.71 | 8.87 | ||||||||||||||||||||||
(Loss) Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax (Loss) Earnings from Continuing Operations | (178,766 | ) | (314,709 | ) | (101,540 | ) | (171,028 | ) | (756,464 | ) | 333,137 | 808,763 | 636,914 | 348,223 | ||||||||||||||||||||||
Add: Fixed Charges | 33,757 | 35,877 | 16,949 | 17,430 | 70,529 | 80,915 | 67,459 | 43,011 | 43,977 | |||||||||||||||||||||||||||
Less: Capitalized Interest | (28,917 | ) | (28,876 | ) | (14,464 | ) | (14,435 | ) | (57,791 | ) | (58,141 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | ||||||||||||||||||
Add: Amortization of Previously Capitalized Interest | 32,730 | 25,543 | 16,957 | 12,258 | 54,959 | 49,485 | 34,093 | 28,702 | 24,519 | |||||||||||||||||||||||||||
Total (Loss) Earnings | (141,196 | ) | (282,165 | ) | (82,098 | ) | (155,775 | ) | (688,767 | ) | 405,396 | 858,443 | 675,748 | 389,940 | ||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Mortgage lending interest expense | 210 | 1,010 | 80 | 359 | 1,581 | 8,816 | 3,850 | 1,946 | 1,967 | |||||||||||||||||||||||||||
Interest component of rent expense | 2,261 | 4,049 | 1,126 | 1,664 | 7,109 | 9,852 | 7,369 | 5,462 | 3,897 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 2,369 | 1,942 | 1,279 | 972 | 4,048 | 4,106 | 4,368 | 2,724 | 11,334 | |||||||||||||||||||||||||||
Capitalized interest | 28,917 | 28,876 | 14,464 | 14,435 | 57,791 | 58,141 | 51,872 | 32,879 | 26,779 | |||||||||||||||||||||||||||
Total Fixed Charges | 33,757 | 35,877 | 16,949 | 17,430 | 70,529 | 80,915 | 67,459 | 43,011 | 43,977 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |