M.D.C. (MDC) 8-K M.D.C. Holdings Announces 2015 Full Year and Fourth Quarter Results

Exhibit 99.1

News Release

M.D.C. HOLDINGS ANNOUNCES 2015 FULL YEAR AND FOURTH QUARTER RESULTS

DENVER, COLORADO, Wednesday, February 3, 2016. M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the year and fourth quarter ended December 31, 2015.

2015 Fourth Quarter Highlights and Comparisons to 2014 FourthQuarter

● Net income of $22.6 million, or $0.46 per share vs. $14.6 million or $0.30 per share

o Pretax income of $32.6 million vs. $23.9 million

● Home sale revenues of $554.4 million, up 12% from $493.1 million

● Gross margin from home sales down 20 basis points to 16.1% vs. 16.3%

o Excluding inventory impairments*, gross margin from home sales increased 60 basis points year-over-year

● Ending backlog dollar value of $1.05 billion, up 59%

o Ending backlog units of 2,332, up 54%

● Dollar value of net new orders of $450.5 million, up 26%

o Net new orders of 1,020, up 15%

Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “Throughout the year, the homebuilding industry continued to be positively impacted by encouraging macroeconomic drivers such as increasing personal income levels, high employment levels and increasing consumer confidence. As a result of these factors, strong execution by our management team, and a renewed focus on “build to order homes”, we experienced positive results by many measures for the 2015 fourth quarter, including a year-over-year increase in our average selling price of homes delivered and a 60 basis point improvement in our pre-impairment gross margin percentage, which helped us to achieve $22.6 million of net income for the quarter. Furthermore, our 2015 fourth quarter net orders improved by 15% year-over-year, driven by our highest fourth quarter absorption pace in ten years.”

Mr. Mizel concluded, “With our active community count up 5% year-over-year and a backlog dollar value of $1.05 billion, which is a 59% increase from the prior year, we are well positioned for top-line growth in 2016. However, our optimism is tempered somewhat by key domestic and global events that have recently unfolded, such as the slowdown of economic growth in China, the significant drop in oil prices, the Federal Reserve’s action to increase the federal funds rate for the first time in almost a decade and significant volatility in securities markets around the globe. Thus far, these risks have not had a significant impact on our industry, but their presence does reinforce our long-standing objective of maintaining balance sheet-focused operating policies.”

1

Homebuilding

Home sale revenues for the 2015 fourth quarter increased 12% to $554.4 million, compared to $493.1 million for the prior year period. This improvement was driven by a 3% increase in deliveries coupled with a 10% increase in average selling price, primarily due to a mix shift to higher-priced submarkets and, to a lesser extent, price increases implemented earlier in the year.

Gross margin from home sales for the 2015 fourth quarter was down 20 basis points from the same period in 2014. The decline was primarily due to a $4.4 million increase in inventory impairments coupled with higher land and construction costs. These items were partially offset by a 90 basis point improvement in our interest in cost of sales as a percent of home sale revenues, price increases implemented in various communities and a higher percentage of our deliveries coming from “build to order” sales, which typically have higher gross margins. Excluding inventory impairments, our gross margin from home sales for the 2015 fourth quarter was 17.1%* (see below for a reconciliation of non-GAAP measures), up 60 basis points year-over-year.

Selling, general and administrative expenses (“SG&A”) expenses for the 2015 fourth quarter were $63.6 million, up $9.0 million from $54.6 million for the same period in 2014. Our SG&A expenses as a percentage of home sale revenues (“SG&A rate”) increased by 40 basis points to 11.5% for the 2015 fourth quarter from 11.1% in the 2014 fourth quarter. The 40 basis point increase in our SG&A rate was driven primarily by an increase in stock based compensation expense based on a stock option grant approved earlier in the year.

The dollar value of net new orders for the 2015 fourth quarter increased 26% to $450.5 million from $356.4 million for the same period in 2014. The improvement was the result of a 10% increase in our average selling price and a 15% increase in the net number of homes sold, driven primarily by an 18% improvement in our monthly sales absorption pace to 2.1, our highest fourth quarter absorption pace since 2005. The increase in average selling price was primarily the result of changes in the mix of net new orders to higher priced submarkets coupled with price increases implemented in most of our markets during the early part of 2015. Our cancellation rate for the 2015 fourth quarter was down slightly to 27% from 28% for the same period in the prior year.

Our backlog value at the end of the 2015 fourth quarter was up 59% year-over-year to $1.05 billion. The increase was due mostly to a 54% increase in units in backlog, driven primarily by year-over-year increases in net new orders for each of the past four quarters, a higher percentage of dirt sales, which are generally in backlog for a longer period of time, and longer than average construction times as a result of limited subcontractor availability.

During the 2014 fourth quarter, we completed the early redemption of $250 million in Senior Notes due July 2015. As a result of that transaction, we recognized an $8.7 million charge related to the extinguishment of debt in the 2014 fourth quarter. No such charges were incurred during 2015.

2

Financial Services

Income before taxes for our financial services operations for the 2015 fourth quarter was $9.1 million, a $2.1 million increase from $7.0 million in the 2014 fourth quarter. An increase in the dollar value of loans locked, originated and sold in our mortgage operations segment drove $1.3 million of the $2.1 million improvement in income before taxes. The remaining increase was primarily the result of a $1.0 million adjustment recorded during the 2015 fourth quarter in our other financial services segment to reduce insurance reserves as a result of a decline in insurance claim payment severity and frequency relative to prior period estimates.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 185,000 homebuyers. 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 the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Diego, Orange County, San Francisco Bay Area, Sacramento, Washington D.C., Baltimore, Orlando, Jacksonville, South Florida 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, visitwww.mdcholdings.com.

3

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 MDC 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 MDC, including cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of MDC’s investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican Mortgage Corporation’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 MDC 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 and natural disasters; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; (16) changes in energy prices; and (17) other factors over which MDC has little or no control.Additional information about the risks and uncertainties applicable to MDC's business is contained in MDC's Form 10-K for theyearendedDecember 31, 2015, 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. MDC 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.

Contact:	Robert N. Martin
	Senior Vice President and Chief Financial Officer
	1-866-424-3395 / (720) 977-3395
	IR@mdch.com

*Please see “Reconciliation of Non-GAAP Financial Measures” at the end of this release.

4

M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
	(Dollars in thousands, except per share amounts)
Homebuilding:	(Unaudited)							(Unaudited)
Home sale revenues	$	554,432		$	493,070		$	1,847,889		$	1,647,398
Land sale revenues		10,521			62			12,337			3,233
Total home and land sale revenues		564,953			493,132			1,860,226			1,650,631
Home cost of sales		(459,787	)		(411,931	)		(1,539,396	)		(1,365,621	)
Land cost of sales		(10,667	)		(52	)		(12,611	)		(2,559	)
Inventory impairments		(5,292	)		(910	)		(9,993	)		(1,760	)
Total cost of sales		(475,746	)		(412,893	)		(1,562,000	)		(1,369,940	)
Gross margin		89,207			80,239			298,226			280,691
Selling, general and administrative expenses		(63,560	)		(54,601	)		(226,317	)		(203,253	)
Interest and other income		1,297			2,222			6,709			26,310
Interest expense		-			-			-			(685	)
Other expense		(1,669	)		(2,279	)		(4,208	)		(4,813	)
Losses from early extinguishments of debt		-			(8,741	)		-			(18,153	)
Other-than-temporary impairment of marketable securities		(1,793	)		-			(3,969	)		(4,293	)
Homebuilding pretax income		23,482			16,840			70,441			75,804
Financial Services:
Revenues		13,958			12,540			48,810			43,953
Expenses		(5,742	)		(6,152	)		(21,572	)		(22,334	)
Interest and other income		860			657			3,745			3,052
Financial services pretax income		9,076			7,045			30,983			24,671
Income before income taxes		32,558			23,885			101,424			100,475
Provision for income taxes		(9,963	)		(9,246	)		(35,633	)		(37,332	)
Net income	$	22,595		$	14,639		$	65,791		$	63,143
Other comprehensive income (loss) related toavailable for sale securities, net of tax		4,538			3,082			5,260			(1,120	)
Comprehensive income	$	27,133		$	17,721		$	71,051		$	62,023
Earnings per share
Basic	$	0.47		$	0.30		$	1.35		$	1.29
Diluted	$	0.46		$	0.30		$	1.34		$	1.29
Weighted average common shares outstanding
Basic		48,788,524			48,635,629			48,764,396			48,615,541
Diluted		48,952,115			48,785,682			48,967,219			48,817,566
Dividends declared per share	$	0.25		$	0.25		$	1.00		$	1.00

5

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

	December 31,		December 31,
	2015		2014
	(Dollars in thousands, except
	per share amounts)
ASSETS		(Unaudited)
Homebuilding:
Cash and cash equivalents	$	144,342	$	122,642
Marketable securities		92,387		140,878
Restricted cash		3,750		2,816
Trade and other receivables		23,314		28,555
Inventories:
Housing completed or under construction		747,036		732,692
Land and land under development		1,016,926		935,268
Total inventories		1,763,962		1,667,960
Property and equipment, net		28,226		30,491
Deferred tax assets, net		99,107		140,486
Metropolitan district bond securities (related party)		25,911		18,203
Prepaid and other assets		65,394		61,014
Total homebuilding assets		2,246,393		2,213,045
Financial Services:
Cash and cash equivalents		36,646		31,183
Marketable securities		11,307		15,262
Mortgage loans held-for-sale, net		115,670		88,392
Other assets		5,883		3,574
Total financial services assets		169,506		138,411
Total Assets	$	2,415,899	$	2,351,456
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	40,472	$	35,445
Accrued liabilities		122,886		115,117
Revolving credit facility		15,000		15,000
Senior notes, net		840,524		839,468
Total homebuilding liabilities		1,018,882		1,005,030
Financial Services:
Accounts payable and accrued liabilities		52,114		57,268
Mortgage repurchase facility		88,611		60,822
Total financial services liabilities		140,725		118,090
Total Liabilities		1,159,607		1,123,120
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; 48,888,424 and 48,831,639issued and outstanding at December 31, 2015 and December 31, 2014, respectively		489		488
Additional paid-in-capital		915,746		909,974
Retained earnings		324,342		307,419
Accumulated other comprehensive income		15,715		10,455
Total Stockholders' Equity		1,256,292		1,228,336
Total Liabilities and Stockholders' Equity	$	2,415,899	$	2,351,456

6

M.D.C. HOLDINGS, INC.

Consolidated Statement of Cash Flows

	Three Months Ended						Year Ended
	December 31,						December 31,
	2015			2014			2015			2014
	(Dollars in thousands)
	(Unaudited)						(Unaudited)
Operating Activities:
Net income	$	22,595		$	14,639		$	65,791		$	63,143
Adjustments to reconcile net income to net cash provided by(used in) operating activities:
Losses on early extinguishments of debt		-			8,741			-			18,153
Stock-based compensation expense		3,477			1,224			10,066			5,978
Depreciation and amortization		985			1,000			4,069			3,928
Inventory impairments		5,292			910			9,993			1,760
Other-than-temporary impairment of marketable securities		1,793			-			3,969			4,293
Net loss (gain) on sale of marketable securities		785			312			911			(7,310	)
Amortization of discount / premiums on marketable debt securities		-			65			100			566
Deferred income tax expense		8,551			5,863			33,333			34,226
Excess tax benefits from stock-based compensation		-			(26	)		-			(26	)
Net changes in assets and liabilities:
Restricted cash		1,050			218			(934	)		(621	)
Trade and other receivables		5,822			(817	)		5,247			(6,638	)
Mortgage loans held-for-sale		(47,037	)		(30,260	)		(27,278	)		4,186
Housing completed or under construction		74,290			103,472			(15,551	)		(96,936	)
Land and land under development		(63,583	)		(80,998	)		(89,388	)		(160,463	)
Prepaid expenses and other assets		424			2,211			(7,648	)		(11,873	)
Accounts payable and accrued liabilities		12,257			(16,945	)		7,535			(16,013	)
Net cash provided by (used in) operating activities		26,701			9,609			215			(163,647	)
Investing Activities:
Purchases of marketable securities		(6,936	)		(18,863	)		(53,822	)		(428,709	)
Maturities of marketable securities		-			2,250			1,510			167,339
Sales of marketable securities		6,255			315,391			101,165			687,692
Purchases of property and equipment		(661	)		(1,323	)		(1,491	)		(3,242	)
Net cash provided by (used in) investing activities		(1,342	)		297,455			47,362			423,080
Financing Activities:
Advances (payments) on mortgage repurchase facility, net		44,856			29,040			27,789			(2,252	)
Proceeds from issuance of senior notes		-			-			-			248,375
Repayment of senior notes		-			(258,532	)		-			(517,650	)
Advances on revolving credit facility, net		-			5,000			-			15,000
Dividend payments		(12,222	)		(12,204	)		(48,868	)		(48,820	)
Excess tax benefits from stock-based compensation		-			26			-			26
Proceeds from exercise of stock options		-			312			665			375
Net cash provided by (used in) financing activities		32,634			(236,358	)		(20,414	)		(304,946	)
Net increase (decrease) in cash and cash equivalents		57,993			70,706			27,163			(45,513	)
Cash and cash equivalents:
Beginning of period		122,995			83,119			153,825			199,338
End of period	$	180,988		$	153,825		$	180,988		$	153,825

7

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

	Three Months Ended December 31,
	2015						2014						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		210	$	60,129	$	286.3		200	$	62,093	$	310.5		5	%		(3	)%		(8	)%
California		220		127,196		578.2		253		121,974		482.1		(13	)%		4	%		20	%
Nevada		171		67,691		395.9		169		53,355		315.7		1	%		27	%		25	%
Washington		80		35,983		449.8		59		21,918		371.5		36	%		64	%		21	%
West		681		290,999		427.3		681		259,340		380.8		0	%		12	%		12	%
Colorado		349		160,794		460.7		287		124,226		432.8		22	%		29	%		6	%
Utah		54		19,194		355.4		54		17,905		331.6		0	%		7	%		7	%
Mountain		403		179,988		446.6		341		142,131		416.8		18	%		27	%		7	%
Maryland		47		24,168		514.2		73		36,345		497.9		(36	)%		(34	)%		3	%
Virginia		46		22,838		496.5		54		26,029		482.0		(15	)%		(12	)%		3	%
Florida		98		36,439		371.8		93		29,225		314.2		5	%		25	%		18	%
East		191		83,445		436.9		220		91,599		416.4		(13	)%		(9	)%		5	%
Total		1,275	$	554,432	$	434.8		1,242	$	493,070	$	397.0		3	%		12	%		10	%

	Year Ended December 31,
	2015						2014						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		753	$	220,140	$	292.4		731	$	200,994	$	275.0		3	%		10	%		6	%
California		706		370,603		524.9		624		296,189		474.7		13	%		25	%		11	%
Nevada		575		215,479		374.7		564		176,371		312.7		2	%		22	%		20	%
Washington		270		109,038		403.8		267		96,496		361.4		1	%		13	%		12	%
West		2,304		915,260		397.2		2,186		770,050		352.3		5	%		19	%		13	%
Colorado		1,192		553,573		464.4		1,172		478,669		408.4		2	%		16	%		14	%
Utah		149		52,794		354.3		165		53,136		322.0		(10	)%		(1	)%		10	%
Mountain		1,341		606,367		452.2		1,337		531,805		397.8		0	%		14	%		14	%
Maryland		215		103,148		479.8		305		144,695		474.4		(30	)%		(29	)%		1	%
Virginia		216		105,593		488.9		234		115,001		491.5		(8	)%		(8	)%		(1	)%
Florida		314		117,521		374.3		304		85,847		282.4		3	%		37	%		33	%
East		745		326,262		437.9		843		345,543		409.9		(12	)%		(6	)%		7	%
Total		4,390	$	1,847,889	$	420.9		4,366	$	1,647,398	$	377.3		1	%		12	%		12	%

8

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

	Three Months Ended December 31,
	2015								2014								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate *
	(Dollars in thousands)
Arizona		154	$	43,448	$	282.1		1.64		141	$	39,533	$	280.4		1.31		9	%		10	%		1	%		25	%
California		160		101,300		633.1		2.81		138		68,509		496.4		2.19		16	%		48	%		28	%		28	%
Nevada		128		41,560		324.7		2.44		94		33,750		359.0		1.87		36	%		23	%		(10	)%		30	%
Washington		80		38,612		482.7		1.98		47		17,517		372.7		1.57		70	%		120	%		30	%		26	%
West		522		224,920		430.9		2.14		420		159,309		379.3		1.67		24	%		41	%		14	%		28	%
Colorado		262		122,119		466.1		2.28		266		116,740		438.9		2.18		(2	)%		5	%		6	%		5	%
Utah		40		14,343		358.6		1.72		46		14,512		315.5		2.45		(13	)%		(1	)%		14	%		(30	)%
Mountain		302		136,462		451.9		2.19		312		131,252		420.7		2.21		(3	)%		4	%		7	%		(1	)%
Maryland		56		26,253		468.8		1.74		44		21,992		499.8		1.30		27	%		19	%		(6	)%		34	%
Virginia		64		33,159		518.1		2.25		49		24,031		490.4		1.72		31	%		38	%		6	%		31	%
Florida		76		29,694		390.7		1.72		62		19,776		319.0		1.45		23	%		50	%		22	%		19	%
East		196		89,106		454.6		1.87		155		65,799		424.5		1.48		26	%		35	%		7	%		26	%
Total		1,020	$	450,488	$	441.7		2.10		887	$	356,360	$	401.8		1.78		15	%		26	%		10	%		18	%

	Year Ended December 31,
	2015								2014								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate *
	(Dollars in thousands)
Arizona		843	$	241,192	$	286.1		2.07		802	$	235,041	$	293.1		2.04		5	%		3	%		(2	)%		1	%
California		856		506,445		591.6		3.55		669		327,248		489.2		3.22		28	%		55	%		21	%		10	%
Nevada		615		227,560		370.0		3.62		579		192,708		332.8		2.93		6	%		18	%		11	%		24	%
Washington		394		173,071		439.3		2.50		276		102,795		372.4		2.30		43	%		68	%		18	%		9	%
West		2,708		1,148,268		424.0		2.77		2,326		857,792		368.8		2.54		16	%		34	%		15	%		9	%
Colorado		1,435		687,695		479.2		2.97		1,334		576,322		432.0		2.88		8	%		19	%		11	%		3	%
Utah		217		79,203		365.0		2.58		179		59,304		331.3		2.55		21	%		34	%		10	%		1	%
Mountain		1,652		766,898		464.2		2.91		1,513		635,626		420.1		2.84		9	%		21	%		10	%		2	%
Maryland		237		116,010		489.5		2.02		244		117,646		482.2		1.43		(3	)%		(1	)%		2	%		41	%
Virginia		227		114,713		505.3		2.12		221		111,068		502.6		1.96		3	%		3	%		1	%		8	%
Florida		379		143,594		378.9		2.18		319		109,141		342.1		1.85		19	%		32	%		11	%		18	%
East		843		374,317		444.0		2.12		784		337,855		430.9		1.72		8	%		11	%		3	%		23	%
Total		5,203	$	2,289,483	$	440.0		2.68		4,623	$	1,831,273	$	396.1		2.43		13	%		25	%		11	%		10	%

* Calculated as total net new orders in period ÷ average active communities during period ÷ number of months in period

9

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Active Subdivisions

	December 31,				%
	2015		2014		Change
Arizona		32		36		(11	)%
California		20		19		5	%
Nevada		20		16		25	%
Washington		14		10		40	%
West		86		81		6	%
Colorado		40		40		0	%
Utah		7		6		17	%
Mountain		47		46		2	%
Maryland		11		9		22	%
Virginia		9		10		(10	)%
Florida		14		13		8	%
East		34		32		6	%
Total		167		159		5	%
Average for Quarter Ended		162		166		(2	)%
Average for Year Ended		161		158		2	%

Backlog

	At December 31,
	2015						2014						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		321	$	89,464	$	278.7		231	$	75,419	$	326.5		39	%		19	%		(15	)%
California		342		220,755		645.5		192		98,057		510.7		78	%		125	%		26	%
Nevada		195		67,901		348.2		155		61,020		393.7		26	%		11	%		(12	)%
Washington		179		80,134		447.7		55		20,655		375.5		225	%		288	%		19	%
West		1,037		458,254		441.9		633		255,151		403.1		64	%		80	%		10	%
Colorado		822		390,635		475.2		579		266,280		459.9		42	%		47	%		3	%
Utah		108		38,549		356.9		40		13,580		339.5		170	%		184	%		5	%
Mountain		930		429,184		461.5		619		279,860		452.1		50	%		53	%		2	%
Maryland		90		43,317		481.3		68		34,293		504.3		32	%		26	%		(5	)%
Virginia		101		52,622		521.0		90		45,521		505.8		12	%		16	%		3	%
Florida		174		70,837		407.1		109		48,412		444.1		60	%		46	%		(8	)%
East		365		166,776		456.9		267		128,226		480.2		37	%		30	%		(5	)%
Total		2,332	$	1,054,214	$	452.1		1,519	$	663,237	$	436.6		54	%		59	%		4	%

10

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots)

	December 31,
	2015		2014		% Change
Unsold:
Completed		189		483		(61	)%
Under construction		334		583		(43	)%
Total unsold started homes		523		1,066		(51	)%
Sold homes under construction or completed		1,697		1,089		56	%
Model homes under construction or completed		281		272		3	%
Total homes completed or under construction		2,501		2,427		3	%

Lots Owned and Options (including homes completed or under construction)

	December 31, 2015						December 31, 2014
	Lots Owned		Lots Optioned		Total		Lots Owned		Lots Optioned		Total		Total % Change
Arizona		1,735		201		1,936		2,266		45		2,311		(16	)%
California		1,759		352		2,111		1,600		94		1,694		25	%
Nevada		2,240		100		2,340		1,589		286		1,875		25	%
Washington		832		107		939		886		-		886		6	%
West		6,566		760		7,326		6,341		425		6,766		8	%
Colorado		4,086		832		4,918		4,083		929		5,012		(2	)%
Utah		442		-		442		598		-		598		(26	)%
Mountain		4,528		832		5,360		4,681		929		5,610		(4	)%
Maryland		368		219		587		417		417		834		(30	)%
Virginia		562		158		720		525		469		994		(28	)%
Florida		1,078		230		1,308		891		184		1,075		22	%
East		2,008		607		2,615		1,833		1,070		2,903		(10	)%
Total		13,102		2,199		15,301		12,855		2,424		15,279		0	%

11

M.D.C. HOLDINGS, INC.

Reconciliations of Non-GAAP Financial Measures

Gross Margin from Home Sales Excluding Interest and Impairments (Unaudited)

Gross Margin from Home Sales Excluding Impairments and Gross Margin from Home Sales Excluding Interest and Impairments are non-GAAP financial measures. We believe this information is meaningful as it isolates the impact that interest and impairments have on our Gross Margin from Home Sales and permits investors to make better comparisons with our competitors, who also break out and adjust gross margins in a similar fashion.

	Three Months Ended
	December 31, 2015			Gross Margin %			December 31, 2014			Gross Margin %
	(Dollars in thousands)
Gross Margin	$	89,207			15.8	%	$	80,239			16.3	%
Less: Land Sale Revenues		(10,521	)					(62	)
Add: Land Cost of Sales		10,667						52
Gross Margin from Home Sales		89,353			16.1	%		80,229			16.3	%
Add: Inventory Impairments		5,292						910
Gross Margin from Home Sales Excluding Inventory Impairments		94,645			17.1	%		81,139			16.5	%
Add: Interest in Cost of Sales		14,943						17,296
Gross Margin from Home Sales Excluding Inventory Impairmentsand Interest in Cost of Sales	$	109,588			19.8	%	$	98,435			20.0	%

	Year Ended
	December 31, 2015			Gross Margin %			December 31, 2014			Gross Margin %
	(Dollars in thousands)
Gross Margin	$	298,226			16.0	%	$	280,691			17.0	%
Less: Land Sale Revenues		(12,337	)					(3,233	)
Add: Land Cost of Sales		12,611						2,559
Gross Margin from Home Sales		298,500			16.2	%		280,017			17.0	%
Add: Inventory Impairments		9,993						1,760
Gross Margin from Home Sales Excluding Inventory Impairments		308,493			16.7	%		281,777			17.1	%
Add: Interest in Cost of Sales		54,751						60,508
Gross Margin from Home Sales Excluding Inventory Impairmentsand Interest in Cost of Sales	$	363,244			19.7	%	$	342,285			20.8	%

12