M.D.C. (MDC) 8-K/A Consolidated Statements of Operations and Comprehensive Income

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended December 31,						Year Ended December 31,
	2012			2011			2012			2011
	(Dollars in thousands, except per share amounts)
	(Unaudited)
Homebuilding:
Home sale revenues	$	389,141		$	230,732		$	1,150,998		$	805,164
Land sale revenues		1,724			8,360			5,144			11,859
Total home sale and land revenues		390,865			239,092			1,156,142			817,023
Home cost of sales		(323,179	)		(196,140	)		(973,120	)		(686,661	)
Land cost of sales		(1,613	)		(8,314	)		(4,823	)		(10,796	)
Inventory impairments		(1,105	)		(283	)		(1,105	)		(12,965	)
Total cost of sales		(325,897	)		(204,737	)		(979,048	)		(710,422	)
Gross margin		64,968			34,355			177,094			106,601
Selling, general and administrative expenses		(49,160	)		(35,934	)		(167,295	)		(179,105	)
Interest income		6,747			6,631			23,398			26,068
Interest expense		—			(1,200	)		(808	)		(20,842	)
Other income (expense)		(364	)		(22,365	)		228			(43,350	)
Homebuilding pretax income (loss)		22,191			(18,513	)		32,617			(110,628	)
Financial Services:
Revenues		14,908			8,111			46,881			26,086
Expenses		(8,186	)		(10,244	)		(21,645	)		(26,306	)
Interest and other income		938			870			3,262			3,376
Financial services pretax income (loss)		7,660			(1,263	)		28,498			3,156
Income (loss) before income taxes		29,851			(19,776	)		61,115			(107,472	)
Benefit (provision) for income taxes		(181	)		955			1,584			9,082
Net income (loss)	$	29,670		$	(18,821	)	$	62,699		$	(98,390	)
Other comprehensive income (loss):
Unrealized gain related to available-for-sale securities		1,133			6,781			12,078			(12,124	)
Comprehensive income (loss)	$	30,803		$	(12,040	)	$	74,777		$	(110,514	)
Earnings (loss) per share:
Basic	$	0.60		$	(0.40	)	$	1.29		$	(2.12	)
Diluted	$	0.59		$	(0.40	)	$	1.28		$	(2.12	)
Weighted Average Common Shares Outstanding:
Basic		48,140,725			47,011,311			47,660,629			46,796,334
Diluted		48,865,996			47,011,311			48,064,839			46,796,334
Dividends declared per share	$	1.25		$	0.25		$	2.00		$	1.00

5