M.D.C. (MDC) 8-K M.D.C. Holdings Announces First Quarter 2011 Results

Exhibit 99.1

NEWS BULLETIN

M.D.C. HOLDINGS, INC.

FOR IMMEDIATE RELEASE

TUESDAY, MAY 10, 2011

Contact:	Robert N. Martin
	Investor Relations
	(720) 977-3431
	bob.martin@mdch.com

M.D.C. HOLDINGS ANNOUNCES FIRST QUARTER 2011 RESULTS

• Revenue increased 15% to $169.7 million

• Closings increased 6% to 554 homes

• Net loss of $19.9 million or $0.43 per share

• Net orders decreased 24% to 705 homes

• Active subdivisions increased 23% to 162

• Entered Seattle market in April via acquisition of assets from SDC Homes

DENVER, Tuesday, May 10, 2011 - M.D.C. Holdings, Inc. (NYSE: MDC) today reported a net loss for the 2011 first quarter of $19.9 million, or $0.43 per share, compared with net loss for the 2010 first quarter of $20.9 million, or $0.45 per share. Revenue increased 15% to $169.7 million, compared with $147.1 million a year ago.

Management Comments

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Difficult market conditions, coupled with the absence of the federal homebuyer tax credit, resulted in a reduction in net home orders during the three months ended March 31, 2011 compared with the same period during 2010. However, we have seen sequential improvement in home orders during each month in 2011 through April, consistent with seasonality.”

Mizel continued, “Top-line growth is a key component of the strategy we are executing in an effort to return to profitability. We pursued that growth strategy by entering the Seattle market in April 2011 through the purchase of substantially all of the homebuilding assets of SDC Homes, which ranked as Seattle’s third largest builder. We have also dedicated substantial resources towards increasing market share in our current footprint, as shown by a 23% year-over-year increase in our active subdivision count at the end of the 2011 first quarter.”

1

“Our home gross margins have come under pressure over the past few quarters for several reasons. First, our land costs have increased significantly, as the market for acquiring finished residential lots in prime locations has been very competitive, despite the continuing overall weakness in the market for new homes. However, we believe our current land costs are consistent with our historical costs. Furthermore, first quarter home gross margins in our newer projects, which accounted for more than 50% of closings, exceeded the home gross margins we achieved in older projects.”

Mizel concluded, “Second, we have accepted lower gross margins to reduce our excess supply of unsold units under construction. Given that our land costs have returned to a level consistent with our historical average and we have substantially reduced our unsold inventory, we believe we have an opportunity to stabilize our home gross margins near current levels, if demand does not deteriorate further.”

First Quarter Highlights

Home closings for the first quarter ended March 31, 2011 increased to 554 homes with an average selling price of $294,900, compared with home closings of 523 homes with an average selling price of $269,500 during the same period in 2010.

Total revenue for the first quarter of 2011 was $169.7 million, compared with revenue of $147.1 million for the same period in 2010. The increase in revenue was driven primarily by the 6% increase in home closings and the 9% year-over-year increase in average selling price.

Net orders for the first quarter ended March 31, 2011 decreased to 705 homes with an estimated sales value of $205 million, compared with net orders for 931 homes with an estimated sales value of $258 million during the same period in 2010. The decrease in net orders is attributable to an increase in our cancellation rate for the quarter, which rose to 32% from 22% during the first quarter of 2010, in addition to decreased absorptions per community, as the first quarter of 2010 was heavily influenced by the homebuyer tax credit.

We ended the 2011 first quarter with 993 homes under contract with an estimated sales value of $312 million, compared with a backlog of 1,234 homes with an estimated sales value of $381 million at March 31, 2010.

Home gross margin in the 2011 first quarter was 13.7% as compared with 22.4% in the 2010 first quarter. Excluding interest expense and warranty adjustments, home gross margin was 16.0% in the first quarter of 2011 as compared with 21.9% in the first quarter of 2010.

Looking at the trend in backlog, our estimated home gross margin at the end of the first quarter was roughly equal to the estimated home gross margin to start the quarter.

2

General and administrative expenses decreased to $36.8 million for the quarter ended March 31, 2011, compared with $40.2 million for the same period in the prior year. The decrease was driven primarily by lower legal costs and employee compensation expense.

Marketing costs were $9.8 million in the first quarter of 2011, compared with $7.1 million in the first quarter of 2010, primarily due to the year-over-year increase in our community count. Commission costs were $5.8 million as compared with $5.1 million in the same quarter last year, inline with the increase in revenue.

About MDC

Since 1972, MDC’s subsidiary companies have built and financed the American dream for more than 165,000 families. MDC’s commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding operations across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley, Jacksonville and Seattle. The Company’s subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol “MDC.” For more information, visit www.mdcholdings.com.

Forward-Looking Statements

Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, including changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by the Company, including cancellation rates, net home orders, home gross margins, and land and home values; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of the Company’s investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican’s sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the interpretation of tax, labor and environmental laws; (15) changes in consumer confidence and preferences; (16)

3

terrorist acts and other acts of war; and (17) other factors over which the Company has little or no control.Additional information about the risks and uncertainties applicable to the Company’s business is contained in the Company’s Form 10-Q for the quarter ended March 31, 2011, which is scheduled to be filed with the Securities and Exchange Commission today. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed in this press release will increase with the passage of time. The Company undertakes no duty to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or webcasts should be consulted.

4

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended March 31,
	2011			2010
Revenue
Home sales revenue	$	163,383		$	140,943
Land sales revenue		204			15
Other revenue		6,160			6,120
Total Revenue		169,747			147,078
Costs and Expenses
Home cost of sales		140,981			109,390
Land cost of sales		17			191
Asset impairments		279			—
Marketing expenses		9,833			7,060
Commission expenses		5,767			5,129
General and administrative expenses		36,752			40,203
Other operating expenses		(1,550	)		491
Related party expenses		4			9
Total Operating Costs and Expenses		192,083			162,473
Loss from Operations		(22,336	)		(15,395	)
Other income (expense)
Interest income		7,326			4,428
Interest expense		(8,730	)		(10,374	)
Gain (loss) on sale of other assets		36			99
Loss before Income Taxes		(23,704	)		(21,242	)
Benefit from income taxes, net		3,825			369
Net Loss	$	(19,879	)	$	(20,873	)
Loss Per Share
Basic	$	(0.43	)	$	(0.45	)
Diluted	$	(0.43	)	$	(0.45	)
Dividends Declared Per Share	$	0.25		$	0.25

5

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

(Dollars in thousands, except per share amounts)

(Unaudited)

	March 31, 2011			December 31, 2010
Assets
Cash and cash equivalents	$	589,043		$	572,225
Marketable securities		866,072			968,729
Restricted cash		419			420
Receivables
Home sales receivables		10,051			8,530
Income taxes receivable		13,442			2,048
Other receivables		8,388			9,432
Mortgage loans held-for-sale, net		37,697			65,114
Inventories, net
Housing completed or under construction		345,554			372,422
Land and land under development		488,887			415,237
Property and equipment, net		39,711			40,826
Deferred tax asset, net of valuation allowance of $239,012 and $231,379 at March 31, 2011 and December 31, 2010, respectively		—			—
Related party assets		7,393			7,393
Prepaid expenses and other assets, net		47,882			85,393
Total Assets	$	2,454,539		$	2,547,769
Liabilities
Accounts payable	$	23,173		$	35,018
Accrued liabilities		210,053			260,729
Related party liabilities		107			90
Mortgage repurchase facility		6,736			25,434
Senior notes, net		1,243,062			1,242,815
Total Liabilities		1,483,131			1,564,086
Commitments and Contingencies		—			—
Stockholders’ Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding		—			—
Common stock, $0.01 par value; 250,000,000 shares authorized; 47,351,000 and 47,295,000 issued and outstanding, respectively, at March 31, 2011 and 47,198,000 and 47,142,000 issued and outstanding, respectively, at December 31, 2010		474			472
Additional paid-in-capital		836,360			820,237
Retained earnings		127,046			158,749
Accumulated other comprehensive income		8,187			4,884
Treasury stock, at cost; 56,000 shares at March 31, 2011 and December 31, 2010		(659	)		(659	)
Total Stockholders’ Equity		971,408			983,683
Total Liabilities and Stockholders’ Equity	$	2,454,539		$	2,547,769

6

M.D.C. HOLDINGS, INC.

Information on Segments

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2011			2010
REVENUE
Homebuilding
West	$	42,483		$	57,137
Mountain		71,124			46,682
East		43,092			31,505
Other Homebuilding		9,859			9,036
Total Homebuilding		166,558			144,360
Financial Services and Other		5,703			5,621
Corporate		—			—
Intercompany adjustments		(2,514	)		(2,903	)
Consolidated	$	169,747		$	147,078
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	(4,560	)	$	2,354
Mountain		(1,232	)		1,170
East		(1,956	)		(1,519	)
Other Homebuilding		(776	)		(519	)
Total Homebuilding		(8,524	)		1,486
Financial Services and Other		1,780			1,846
Corporate		(16,960	)		(24,574	)
Consolidated	$	(23,704	)	$	(21,242	)
	March 31, 2011			December 31, 2010
TOTAL ASSETS
Homebuilding
West	$	328,225		$	300,652
Mountain		315,103			311,833
East		205,502			188,693
Other Homebuilding		39,138			40,554
Total Homebuilding		887,968			841,732
Financial Services and Other		110,206			135,286
Corporate		1,459,182			1,573,408
Intercompany adjustments		(2,817	)		(2,657	)
Consolidated	$	2,454,539		$	2,547,769

7

M.D.C. HOLDINGS, INC.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

	Three Months
	Ended March 31,						Change
	2011			2010			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding	$	14,959		$	17,726		$	(2,767	)		-16	%
Financial Services and Other		4,699			4,088			611			15	%
Corporate (1)		17,098			18,398			(1,300	)		-7	%
Total	$	36,756		$	40,212		$	(3,456	)		-9	%
SG&A as a % of Home Sales Revenue
Homebuilding Segments		18.7	%		21.2	%		-2.5	%
Corporate Segment (1)		10.5	%		13.1	%		-2.6	%
Depreciation and Amortization(2)	$	3,729		$	2,932		$	797			27	%
Home Gross Margins (3)		13.7	%		22.4	%		-8.7	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		2.6	%		2.3	%		0.3	%
Cash Provided by (Used in)
Operating Activities	$	(57,701	)	$	11,516		$	(69,217	)
Investing Activities	$	105,041		$	(501,767	)	$	606,808
Financing Activities	$	(30,522	)	$	206,138		$	(236,660	)
Corporate and Homebuilding Interest
Interest capitalized, beginning of period	$	38,446		$	28,339		$	10,107			36	%
Interest capitalized, net of interest expense		9,519			6,636			2,883			43	%
Previously capitalized interest included in home cost of sales		(4,203	)		(3,202	)		(1,001	)		31	%
Interest capitalized, end of period	$	43,762		$	31,773		$	11,989			38	%

⁽¹⁾ Includes related party expenses.

⁽²⁾ Includes depreciation and amortization of long-lived assets and amortization of deferred marketing costs.

⁽³⁾ Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue.

8

M.D.C. HOLDINGS, INC.

Selected Financial Data

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,						Change
	2011			2010			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans originated	$	115,380		$	108,090		$	7,290			7	%
Principal amount of mortgage loans brokered	$	719		$	2,856		$	(2,137	)		-75	%
Capture Rate		75	%		80	%		-5	%
Including brokered loans		76	%		82	%		-6	%
Mortgage products (% of mortgage loans originated)
Fixed rate		97	%		95	%		2	%
Adjustable rate - other		3	%		5	%		-2	%
Prime loans (4)		30	%		26	%		4	%
Government loans (5)		70	%		74	%		-4	%

⁽⁴⁾ Prime loans generally are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply with the documentation standards of the government sponsored enterprise guidelines.

⁽⁵⁾ Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.

9

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

	March 31, 2011		December 31, 2010		March 31, 2010
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction - Final		67		119		48
Unsold Home Under Construction - Frame		570		722		675
Unsold Home Under Construction - Foundation		37		103		376
Total Unsold Homes Under Construction		674		944		1,099
Sold Homes Under Construction		641		609		1,002
Model Homes		246		242		210
Homes Completed or Under Construction		1,561		1,795		2,311
LOTS OWNED (excluding homes completed or under construction)
Arizona		1,219		1,257		1,040
California		1,499		1,201		756
Nevada		1,087		991		894
West		3,805		3,449		2,690
Colorado		2,985		2,919		2,549
Utah		619		594		366
Mountain		3,604		3,513		2,915
Maryland		339		319		158
Virginia		599		414		318
East		938		733		476
Florida		232		210		127
Illinois		128		130		141
Other Homebuilding		360		340		268
Total		8,707		8,035		6,349

10

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

	March 31, 2011		December 31, 2010		March 31, 2010
LOTS CONTROLLED UNDER OPTION
Arizona		241		408		482
California		17		222		232
Nevada		724		838		429
West		982		1,468		1,143
Colorado		845		688		507
Utah		369		393		145
Mountain		1,214		1,081		652
Maryland		822		745		602
Virginia		128		132		271
East		950		877		873
Florida		606		733		713
Illinois		—		—		—
Other Homebuilding		606		733		713
Total		3,752		4,159		3,381
AT RISK OPTION DEPOSITS
Cash	$	10,283	$	9,019	$	9,467
Letters of Credit		5,264		4,467		2,084
Total At Risk Option Deposits	$	15,547	$	13,486	$	11,551

11

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

	Three Months
	Ended March 31,				Change
	2011		2010		Amount			%
HOMES CLOSED (UNITS)
Arizona		77		108		(31	)		-29	%
California		48		46		2			4	%
Nevada		66		98		(32	)		-33	%
West		191		252		(61	)		-24	%
Colorado		166		108		58			54	%
Utah		54		52		2			4	%
Mountain		220		160		60			38	%
Maryland		57		30		27			90	%
Virginia		43		40		3			8	%
East		100		70		30			43	%
Florida		43		41		2			5	%
Illinois		—		—		—			N/A
Other Homebuilding		43		41		2			5	%
Total		554		523		31			6	%
AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	180.0	$	203.7	$	(23.7	)		-12	%
California		317.3		351.9		(34.6	)		-10	%
Colorado		336.8		299.8		37.0			12	%
Florida		229.0		220.3		8.7			4	%
Illinois		N/A		N/A		N/A			N/A
Maryland		428.4		412.4		16.0			4	%
Nevada		201.5		189.3		12.2			6	%
Utah		274.9		273.5		1.4			1	%
Virginia		430.0		477.8		(47.8	)		-10	%
Company Average	$	294.9	$	269.5	$	25.4			9	%

12

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

	Three Months
	Ended March 31,						Change
	2011			2010			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		122			168			(46	)		-27	%
California		77			26			51			196	%
Nevada		88			170			(82	)		-48	%
West		287			364			(77	)		-21	%
Colorado		181			270			(89	)		-33	%
Utah		67			125			(58	)		-46	%
Mountain		248			395			(147	)		-37	%
Maryland		46			47			(1	)		-2	%
Virginia		68			66			2			3	%
East		114			113			1			1	%
Florida		51			59			(8	)		-14	%
Illinois		5			—			5			N/A
Other Homebuilding		56			59			(3	)		-5	%
Total		705			931			(226	)		-24	%
Estimated Value of Orders for Homes, net	$	205,000		$	258,000		$	(53,000	)		-21	%
Estimated Average Selling Price of Orders for Homes, net	$	290.8		$	277.1		$	13.7			5	%
Cancellation Rate(6)		32	%		22	%		10	%

⁽⁶⁾ We define “Cancellation Rate” as the approximate number of cancelled home order contracts during a reporting period as a percent of total home orders received during such reporting period.

13

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

(Dollars in thousands)

(Unaudited)

	March 31, 2011		December 31, 2010		March 31, 2010
BACKLOG (UNITS)
Arizona		129		84		163
California		108		79		56
Nevada		98		76		160
West		335		239		379
Colorado		288		273		369
Utah		82		69		167
Mountain		370		342		536
Maryland		115		126		143
Virginia		95		70		99
East		210		196		242
Florida		72		64		77
Illinois		6		1		—
Other Homebuilding		78		65		77
Total		993		842		1,234
Backlog Estimated Sales Value	$	312,000	$	269,000	$	381,000
Estimated Average Selling Price of Homes in Backlog	$	314.2	$	319.5	$	308.8
ACTIVE SUBDIVISIONS
Arizona		29		26		28
California		16		13		3
Nevada		19		18		17
West		64		57		48
Colorado		42		39		41
Utah		18		19		17
Mountain		60		58		58
Maryland		14		14		9
Virginia		10		8		7
East		24		22		16
Florida		13		11		10
Illinois		1		—		—
Other Homebuilding		14		11		10
Total		162		148		132
Average for quarter ended		155		145		133

14

M.D.C. HOLDINGS, INC.

Reconciliation of Non-GAAP Financial Measure

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2011			2010
Home Sales Revenue - As reported	$	163,383		$	140,943
Home Cost of Sales - As reported	$	140,981		$	109,390
Warranty Adjustments		(431	)		(3,929	)
Interest in Cost of Sales		4,203			3,202
Home Cost of Sales - Excluding Warranty Adjustments and Interest	$	137,209		$	110,117
Home Gross Margins - Excluding Warranty Adjustments and Interest (7)		16.0	%		21.9	%

⁽⁷⁾ “Home Gross Margins - Excluding Warranty Adjustments and Interest” is a non-GAAP financial measure. We believe this information is meaningful as it isolates the impact that warranty adjustments and interest have on our Home Gross Margins.

15