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) | 2009 | 2008 | 2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||||||||||
(Loss) Earnings | $ | (40,808 | ) | $ | (235,620 | ) | $ | (10,679 | ) | $ | (94,004 | ) | $ | (299,317 | ) | $ | (688,767 | ) | $ | 405,396 | $ | 858,443 | $ | 675,748 | ||||||||||||
Fixed Charges | $ | 52,193 | $ | 50,367 | $ | 19,037 | $ | 17,030 | $ | 68,570 | $ | 70,529 | $ | 80,915 | $ | 67,459 | $ | 43,011 | ||||||||||||||||||
(Loss) Earnings to Fixed Charges | $ | (0.78 | ) | $ | (4.68 | ) | $ | (0.56 | ) | $ | (5.52 | ) | $ | (4.37 | ) | $ | (9.77 | ) | $ | 5.01 | $ | 12.73 | $ | 15.71 | ||||||||||||
(Loss) Earnings: | ||||||||||||||||||||||||||||||||||||
(Loss) Income before income taxes | $ | (102,483 | ) | $ | (295,740 | ) | $ | (32,048 | ) | $ | (116,974 | ) | $ | (382,135 | ) | $ | (756,464 | ) | $ | 333,137 | $ | 808,763 | $ | 636,914 | ||||||||||||
Add: Fixed Charges | 52,193 | 50,367 | 19,037 | 17,030 | 68,570 | 70,529 | 80,915 | 67,459 | 43,011 | |||||||||||||||||||||||||||
Less: Capitalized Interest | (14,354 | ) | (32,666 | ) | (4,810 | ) | (3,749 | ) | (39,852 | ) | (57,791 | ) | (58,141 | ) | (51,872 | ) | (32,879 | ) | ||||||||||||||||||
Add: Amortization of Previously Capitalized Interest | 23,836 | 42,419 | 7,142 | 9,689 | 54,100 | 54,959 | 49,485 | 34,093 | 28,702 | |||||||||||||||||||||||||||
Total (Loss) Earnings | $ | (40,808 | ) | $ | (235,620 | ) | $ | (10,679 | ) | $ | (94,004 | ) | $ | (299,317 | ) | $ | (688,767 | ) | $ | 405,396 | $ | 858,443 | $ | 675,748 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Homebuilding and corporate interest expense | $ | 29,076 | $ | 10,726 | $ | 9,672 | $ | 10,726 | $ | 17,989 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||
Mortgage lending interest expense | 262 | 49 | 88 | 259 | 329 | 1,581 | 8,816 | 3,850 | 1,946 | |||||||||||||||||||||||||||
Interest component of rent expense | 2,467 | 3,375 | 772 | 1,114 | 4,362 | 7,109 | 9,852 | 7,369 | 5,462 | |||||||||||||||||||||||||||
Amortization and expensing of debt expenses | 6,034 | 3,551 | 3,695 | 1,182 | 6,038 | 4,048 | 4,106 | 4,368 | 2,724 | |||||||||||||||||||||||||||
Capitalized interest | 14,354 | 32,666 | 4,810 | 3,749 | 39,852 | 57,791 | 58,141 | 51,872 | 32,879 | |||||||||||||||||||||||||||
Total Fixed Charges | $ | 52,193 | $ | 50,367 | $ | 19,037 | $ | 17,030 | $ | 68,570 | $ | 70,529 | $ | 80,915 | $ | 67,459 | $ | 43,011 | ||||||||||||||||||