Exhibit 12
M.D.C. HOLDINGS, INC.
RATIO OF (LOSS) EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, | Three Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
(dollars in 000’s) | 2008 | 2007 | 2008 | 2007 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||||||||||
Earnings | ($ | 235,620 | ) | ($ | 515,782 | ) | ($ | 94,004 | ) | ($ | 233,616 | ) | ($ | 688,767 | ) | $ | 405,396 | $ | 858,443 | $ | 675,748 | $ | 389,940 | |||||||||||||
Fixed Charges | $ | 50,367 | $ | 53,590 | $ | 17,030 | $ | 17,714 | $ | 70,529 | $ | 80,915 | $ | 67,459 | $ | 43,011 | $ | 43,977 | ||||||||||||||||||
(Loss) Earnings to Fixed Charges | (4.68 | ) | (9.62 | ) | (5.52 | ) | (13.19 | ) | (9.77 | ) | 5.01 | 12.73 | 15.71 | 8.87 | ||||||||||||||||||||||
(Loss) Earnings: | ||||||||||||||||||||||||||||||||||||
Pretax (Loss) Earnings from Continuing Operations | (295,740 | ) | (566,023 | ) | (116,974 | ) | (251,314 | ) | (756,464 | ) | 333,137 | 808,763 | 636,914 | 348,223 | ||||||||||||||||||||||
Add: Fixed Charges | 50,367 | 53,590 | 17,030 | 17,714 | 70,529 | 80,915 | 67,459 | 43,011 | 43,977 | |||||||||||||||||||||||||||
Less: Capitalized Interest | (32,666 | ) | (43,320 | ) | (3,749 | ) | (14,444 | ) | (57,791 | ) | (58,141 | ) | (51,872 | ) | (32,879 | ) | (26,779 | ) | ||||||||||||||||||
Add: Amortization of Previously Capitalized Interest | 42,419 | 39,971 | 9,689 | 14,428 | 54,959 | 49,485 | 34,093 | 28,702 | 24,519 | |||||||||||||||||||||||||||
Total (Loss) Earnings | (235,620 | ) | (515,782 | ) | (94,004 | ) | (233,616 | ) | (688,767 | ) | 405,396 | 858,443 | 675,748 | 389,940 | ||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | 10,726 | - | 10,726 | - | - | - | - | - | - | |||||||||||||||||||||||||||
Mortgage lending interest expense | 49 | 1,353 | 259 | 343 | 1,581 | 8,816 | 3,850 | 1,946 | 1,967 | |||||||||||||||||||||||||||
Interest component of rent expense | 3,375 | 5,923 | 1,114 | 1,875 | 7,109 | 9,852 | 7,369 | 5,462 | 3,897 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses (1) | 3,551 | 2,994 | 1,182 | 1,052 | 4,048 | 4,106 | 4,368 | 2,724 | 11,334 | |||||||||||||||||||||||||||
Capitalized interest | 32,666 | 43,320 | 3,749 | 14,444 | 57,791 | 58,141 | 51,872 | 32,879 | 26,779 | |||||||||||||||||||||||||||
Total Fixed Charges | 50,367 | 53,590 | 17,030 | 17,714 | 70,529 | 80,915 | 67,459 | 43,011 | 43,977 | |||||||||||||||||||||||||||
(1) | 2003 includes $9,315 of expenses related to debt redemption. |