8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): October 24, 2006

M.D.C. Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware	1-8951	84-0622967
(State or other jurisdiction of incorporation)	(Commission file number)	(I.R.S. employer identification no.)

4350 South Monaco Street, Suite 500, Denver, Colorado	80237
(Address of principal executive offices)	(Zip code)

Registrant’s telephone number, including area code: (303) 773-1100

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and
	ITEM 7.01. REGULATION FD DISCLOSURE
	ITEM 9.01. EXHIBITS
SIGNATURES
INDEX TO EXHIBITS
Press Release dated October 24, 2006

2

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On October 24, 2006, M.D.C. Holdings, Inc. issued a press release reporting its third quarter and first nine months results for 2006. A copy of this press release is attached hereto as Exhibit 99.1.

     Limitation on Incorporation by Reference. The information being furnished shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, (“Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

ITEM 9.01. EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated October 24, 2006.

3

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	M.D.C. HOLDINGS, INC.
Dated: October 24, 2006	By:	/s/ Joseph H. Fretz
		Joseph H. Fretz
		Secretary and Corporate Counsel

4

INDEX TO EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated October 24, 2006.

5

EX-99.1

Exhibit 99.1

NEWS BULLETIN

M.D.C. HOLDINGS, INC. RICHMOND AMERICAN HOMES
HOMEAMERICAN MORTGAGE

FOR IMMEDIATE RELEASE
TUESDAY, OCTOBER 24, 2006

Contacts:	Paris G. Reece III	Robert N. Martin	Alison Schuller
	Chief Financial Officer	Investor Relations	Corporate Communications
	(303) 804-7706	(720) 977-3431	(720) 977-3554
	greece@mdch.com	bob.martin@mdch.com	alison.schuller@mdch.com

M.D.C. HOLDINGS ANNOUNCES THIRD QUARTER EARNINGS;
REPORTS QUARTERLY HOME ORDERS AND QUARTER-END BACKLOG

• Diluted earnings per share of $1.06 vs. $2.62 in 2005

• Net income of $48.7 million, compared with $121.0 million in 2005

• Pre-tax inventory impairments and project cost write-offs of $29.4 million

• Total revenues of $1.08 billion; $1.17 billion in 2005

• Closed 2,955 homes at an average selling price of $358,200

• Financial services and other profits of $13.0 million vs. $9.6 million in 2005

• Net orders for 2,120 homes valued at $678.1 million

• Quarter-end backlog of 5,661 homes valued at $2.10 billion

• Unrestricted cash and available borrowing capacity of $1.36 billion

• Cash flow from operations of $70.9 million in 2006 third quarter

     DENVER, Tuesday, October 24, 2006 — M.D.C. Holdings, Inc. (NYSE/PCX: MDC) today announced net income for the quarter ended September 30, 2006 of $48.7 million, or $1.06 per diluted share, compared with net income of $121.0 million, or $2.62 per diluted share, for the same period in 2005. Total revenue for the third quarter reached $1.08 billion, compared with revenue of $1.17 billion for the same period in 2005. Operating results for the 2006 third quarter were impacted adversely by non-cash, pre-tax charges for inventory impairments and project cost write-offs of $19.9 million and $9.5 million, respectively.

     Net income for the nine months ended September 30, 2006 was $220.6 million, or $4.80 per diluted share, compared with net income of $308.2 million, or $6.70 per diluted share, for the same period in 2005. Total revenues for the nine months ended September 30, 2006 reached $3.46 billion, compared with $3.15 billion for the first nine months of 2005.

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M.D.C. HOLDINGS, INC.
Page 2

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “The challenges experienced by the homebuilding industry during the first half of 2006 remained prevalent during the third quarter, as the operating environment in most markets became increasingly competitive in the face of continued expansion of unsold new and existing home inventories. In meeting these challenges, we have remained committed to the operating and financial disciplines that contributed to the achievement of our ‘investment grade’ financial position, with a focus on strengthening our balance sheet, generating cash flow and preserving capital for future opportunities to grow when our markets begin to return to more normal conditions.”

     Mizel continued, “We have continued to reduce the number of our lots controlled to maintain a level more consistent with our two-year supply objective. For more than a year, we have pursued modifications to pricing and terms of proposed and existing land acquisition contracts to comply with our more stringent underwriting guidelines, and we have continued to terminate contracts that do not meet these heightened standards. These actions have enabled us to reduce our lots under control by more than 25% since the beginning of the year, with less than 3% of our stockholders’ equity at risk for our 11,000 optioned lots. In addition, our investment in land declined by almost $100 million in the third quarter alone, which contributed to our generating more than $70 million in cash flow from operations during this period. As a result, we ended the quarter with $1.36 billion in available cash and borrowing capacity, up 25% from last September.”

Homebuilding Results

     Homebuilding income before taxes for the quarter and nine months ended September 30, 2006 was $82.3 million and $385.8 million, respectively, compared with $211.3 million and $559.1 million for the same periods in 2005. The income decreases in the 2006 periods were driven by reduced home closings and significant declines in home gross margins from the all-time high levels achieved during the same periods in 2005, partially offset by the impact of increased average selling prices. In addition, homebuilding income before taxes for both the quarter and nine months ended September 30, 2006 was impacted adversely by non-cash, pre-tax inventory impairment charges of $19.9 million and $20.8 million, respectively, while no impairments were realized for the comparable periods in 2005. The Company closed 2,955 homes and produced home gross margins of 22.7% in the 2006 third quarter, compared with 3,686 home closings and home gross margins of 28.8% for the comparable period in 2005. For the nine months ended September 30, 2006, the Company closed 9,529 homes and produced home gross margins of 24.4%, compared with 10,356 home closings and home gross margins of 28.6% for the nine months ended September 30, 2005. Average selling prices reached $358,200 and $354,000, respectively, for the quarter and nine months ended September 30, 2006, up $46,800 and $55,200 from the same periods in 2005.

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M.D.C. HOLDINGS, INC.
Page 3

     Homebuilding commissions, marketing, general and administrative (“SG&A”) expenses were $137.0 million, or 12.9% of home sales revenue, for the 2006 third quarter, compared with $118.9 million, or 10.4% of home sales revenue, for the 2005 third quarter. For the nine months ended September 30, 2006, homebuilding SG&A expenses were $418.3 million, or 12.4% of home sales revenue, compared with $329.8 million, or 10.7% of home sales revenue, for the same period in 2005. The SG&A expenses for the three and nine months ended September 30, 2006 included project cost write-offs of $9.5 million and $23.0 million, respectively, compared with $2.5 million and $5.2 million of such costs for the same periods in 2005.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “We experienced reduced home gross margins in each of our markets except Utah and Delaware Valley, with the most significant decreases occurring in Nevada and California, as has been the case in the previous 2006 quarters, as well as in Virginia, due to increased competition and extreme inventory pressures in that market. The $19.9 million in inventory impairment charges we recognized during the third quarter, which are not included in our home gross margins, primarily relate to five projects in California where we experienced a much slower than anticipated home order pace and significantly increased sales incentive requirements.”

     Reece continued, “Similar to our 2006 second quarter, we deferred $18.5 million in profits related to certain homes closed in the third quarter for which the Company’s mortgage subsidiary originated high loan-to-value loans for our homebuyers and still held the loans in inventory at the end of the quarter. However, we more than offset this deferral by recognizing $30.7 million in profits that had been deferred in the second quarter, resulting in a net increase to homebuilding profits for the 2006 third quarter of $12.2 million. This net increase in profits raised third quarter home gross margins by 90 basis points and average selling prices by $4,100.”

     Reece concluded, “Our SG&A expenses increased year-over-year in the 2006 third quarter, primarily due to higher advertising expenses and commissions to outside brokers required in response to the more competitive home selling environment in most of our markets, as well as higher model home costs. Also, write-offs of project costs, which include option deposits and other costs related to lots that we have chosen not to acquire, increased by $7.0 million from the 2005 third quarter. Nevertheless, we experienced a sequential decline in our general and administrative expenses from the 2006 second quarter of almost $10.0 million, primarily reflecting reduced employee-related costs resulting from our efforts to right-size our homebuilding operations in view of current market conditions.”

Improved Financial Services and Other Results

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M.D.C. HOLDINGS, INC.
Page 4

     Income before taxes from the Company’s financial services and other segment for the quarter and nine months ended September 30, 2006 increased to $13.0 million and $35.2 million, respectively, compared with $9.6 million and $18.9 million, respectively, during the same periods in the previous year. The profit improvements primarily resulted from higher gains on sales of mortgage loans, compared with the same periods in 2005. Increased dollar volumes of mortgage loan originations and mortgage loans sold during the 2006 periods drove the higher gains. The Company achieved these increased volumes by improving its mortgage capture rate, largely as a result of expanding the mortgage loan products that it could originate directly for its customers, and increasing its average loan amounts in connection with the Company’s higher average selling prices.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 2,120 homes with an estimated sales value of $678.1 million during the 2006 third quarter, compared with net orders for 3,551 homes with an estimated sales value of $1.22 billion during the same period in 2005. For the nine months ended September 30, 2006, the Company received net orders for 8,658 homes with an estimated sales value of $2.95 billion, compared with 12,929 net orders with an estimated sales value of $4.40 billion for the nine months ended September 30, 2005. The Company ended the third quarter of 2006 with a backlog of 5,661 homes, compared with a backlog of 9,078 homes at September 30, 2005. The estimated sales value of backlog at the end of the 2006 third quarter was $2.10 billion, compared with $3.29 billion at September 30, 2005.

     MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2005 revenues. The Company also provides mortgage financing, primarily for MDC’s homebuyers, through its wholly owned subsidiary HomeAmerican Mortgage Corporation. MDC, a Fortune 500 Company, is a major regional homebuilder with a significant presence in Colorado, Jacksonville, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Southern California and Tucson. MDC also has established operating divisions in Chicago, Philadelphia/Delaware Valley and West Florida. For more information about our Company, please visit RichmondAmerican.com.

Forward-Looking Statements

     Certain statements in this release, including statements regarding future home closings, revenue and earnings, 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,

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M.D.C. HOLDINGS, INC.
Page 5

among other things, (1) general economic and business conditions, including changes in cancellation rates, net home orders, home gross margins, and land and home values; (2) interest rate changes; (3) the relative stability of debt and equity markets; (4) competition; (5) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (6) the availability and cost of performance bonds and insurance covering risks associated with our business; (7) shortages and the cost of labor; (8) weather related slowdowns; (9) slow growth initiatives; (10) building moratoria; (11) governmental regulation, including the interpretation of tax, labor and environmental laws; (12) changes in consumer confidence and preferences; (13) required accounting changes; (14) terrorist acts and other acts of war; and (15) 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 reports on Form 10-K/A for the year ended December 31, 2005, and Form 10-Q/A for the quarter ended June 30, 2006, which were filed with the Securities and Exchange Commission. 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 publicly update 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 presentations should be consulted.

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M.D.C. HOLDINGS, INC.
Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
REVENUE
Home sales revenue	$	1,058,408		$	1,147,757		$	3,372,799		$	3,094,141
Land sales revenue		3,336			1,269			18,812			2,565
Other revenue		21,149			18,786			66,912			51,362
Total Revenue		1,082,893			1,167,812			3,458,523			3,148,068
COSTS AND EXPENSES
Home cost of sales		818,015			817,330			2,550,018			2,208,882
Land cost of sales		3,210			706			18,124			1,496
Inventory impairments		19,915			—			20,775			—
Marketing expenses		31,296			26,106			91,899			73,432
Commission expenses		36,390			30,736			106,627			85,262
General and administrative expenses		97,558			99,557			318,053			285,550
Related party expenses		88			51			1,891			214
Total Costs and Expenses		1,006,472			974,486			3,107,387			2,654,836
Income before income taxes		76,421			193,326			351,136			493,232
Provisions for income taxes		(27,715	)		(72,336	)		(130,518	)		(184,988	)
NET INCOME	$	48,706		$	120,990		$	220,618		$	308,244
EARNINGS PER SHARE
Basic	$	1.08		$	2.73		$	4.91		$	7.03
Diluted	$	1.06		$	2.62		$	4.80		$	6.70
WEIGHTED-AVERAGE SHARES
Basic		44,972			44,379			44,911			43,849
Diluted		45,868			46,258			45,932			46,006

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M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

	September 30,			December 31,
	2006			2005
ASSETS
Cash and cash equivalents	$	132,844		$	214,531
Restricted cash		5,082			6,742
Home sales receivables		75,120			134,270
Mortgage loans held in inventory		203,375			237,376
Inventories, net
Housing completed or under construction		1,578,696			1,320,106
Land and land under development		1,662,034			1,677,948
Property and equipment, net		45,560			49,119
Deferred income taxes		77,259			54,319
Prepaid expenses and other assets, net		176,073			165,439
Total Assets	$	3,956,043		$	3,859,850
LIABILITIES
Accounts payable	$	200,703		$	201,747
Accrued liabilities		424,436			442,409
Income taxes payable		14,821			102,656
Related party liabilities		—			8,100
Homebuilding line of credit		—			—
Mortgage line of credit		152,369			156,532
Senior notes, net		996,583			996,297
Total Liabilities		1,788,912			1,907,741
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; 44,995,000 and 44,981,000 issued and outstanding, respectively, at September 30, 2006 and 44,642,000 and 44,630,000 issued and outstanding, respectively, at December 31, 2005		450			447
Additional paid-in capital		750,013			722,291
Retained earnings		1,419,886			1,232,971
Unearned restricted stock		(1,937	)		(2,478	)
Accumulated other comprehensive loss		(622	)		(622	)
Less treasury stock, at cost; 14,000 and 12,000 shares, respectively, at September 30, 2006 and December 31, 2005		(659	)		(500	)
Total Stockholders’ Equity		2,167,131			1,952,109
Total Liabilities and Stockholders’ Equity	$	3,956,043		$	3,859,850

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M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
REVENUE
West	$	653,932		$	631,171		$	2,061,708		$	1,734,412
Mountain		168,193			228,024			519,107			603,756
East		137,050			185,504			444,765			470,220
Other Homebuilding		105,553			105,558			374,299			293,266
Total Homebuilding		1,064,728			1,150,257			3,399,879			3,101,654
Financial Services and Other		18,105			17,318			57,969			44,955
Corporate		60			237			675			1,459
Consolidated	$	1,082,893		$	1,167,812		$	3,458,523		$	3,148,068
INCOME BEFORE TAXES
West	$	53,762		$	135,954		$	274,642		$	385,522
Mountain		9,320			19,161			25,183			49,496
East		23,911			54,467			85,691			123,009
Other Homebuilding		(4,660	)		1,732			237			1,099
Total Homebuilding		82,333			211,314			385,753			559,126
Financial Services and Other		12,989			9,600			35,161			18,897
Corporate		(18,901	)		(27,588	)		(69,778	)		(84,791	)
Consolidated	$	76,421		$	193,326		$	351,136		$	493,232

	September 30,		December 31,
	2006		2005
TOTAL ASSETS
West	$	2,185,038	$	2,113,384
Mountain		552,551		466,362
East		395,879		368,848
Other Homebuilding		323,079		359,151
Total Homebuilding		3,456,547		3,307,745
Financial Services and Other		261,610		253,365
Corporate		237,886		298,740
Consolidated	$	3,956,043	$	3,859,850

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M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
SELECTED OPERATING DATA
General and Administrative Expenses
Homebuilding Operations		69,317			62,017			219,820			171,133
Financial Services and Other Operations		9,295			9,765			29,598			28,381
Corporate		18,946			27,775			68,635			86,036
Total		97,558			99,557			318,053			285,550
SG&A as a Percent of Home Sales Revenues
Homebuilding Operations		12.9	%		10.4	%		12.4	%		10.7	%
Corporate		1.8	%		2.4	%		2.1	%		2.7	%
Total Homebuilding and Corporate		14.7	%		12.8	%		14.5	%		13.4	%
Depreciation and Amortization	$	13,028		$	12,932		$	41,537		$	34,518
Home Gross Margins1		22.7	%		28.8	%		24.4	%		28.6	%
Cash Provided by (Used in) Operating Activities	$	70,928		$	(228,992	)	$	(41,343	)	$	(557,036	)
Cash Used in Investing Activities	$	(2,893	)	$	(6,394	)	$	(7,224	)	$	(18,118	)
Cash Provided by (Used in) Financing Activities	$	(26,675	)	$	293,799		$	(33,120	)	$	293,965
Ending Unrestricted Cash and Available Borrowing Capacity	$	1,356,532		$	1,084,347			N/A			N/A
After-Tax Return on Average Capital2		13.1	%		18.7	%		N/A			N/A
After-Tax Return on Average Assets2		10.8	%		15.4	%		N/A			N/A
After-Tax Return on Average Equity2		20.8	%		29.8	%		N/A			N/A
Interest in Home Cost of Sales as a Percent of Home Sales Revenue		1.2	%		0.6	%		1.1	%		0.7	%
Corporate and Homebuilding Interest Capitalized
Interest Capitalized in Inventories at Beginning of Period	$	48,569		$	30,293		$	41,999		$	24,220
Interest Capitalized During the Period		14,150			14,615			43,993			36,540
Interest in Home and Land Cost of Sales for the Period		12,574			7,030			35,847			22,882
Interest Capitalized in Inventories at End of Period	$	50,145		$	37,878		$	50,145		$	37,878
Interest Capitalized as a Percent of Inventories		1.5	%		1.3	%		N/A			N/A

1	Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing and inventory impairments) as a percent of home sales revenue.
2	Based on last twelve months data.

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	September 30,		December 31,		September 30,
	2006		2005		2005
LOTS OWNED AND CONTROLLED
Lots Owned		20,613		23,445		21,660
Lots Under Option		10,952		18,819		22,327
Homes Completed or Under Construction		6,594		6,891		9,217
LOTS OWNED BY MARKET
(excluding homes completed or under construction)
Arizona		6,958		7,385		7,229
California		3,051		3,367		2,632
Colorado		3,325		3,639		3,560
Delaware Valley		283		471		367
Florida		1,220		1,201		970
Illinois		300		430		474
Maryland		505		679		734
Nevada		3,096		4,055		3,482
Texas		69		471		569
Utah		1,132		964		881
Virginia		674		783		762
Total Company		20,613		23,445		21,660
LOTS UNDER OPTION BY MARKET
Arizona		1,283		3,650		3,830
California		1,053		2,005		3,139
Colorado		1,304		2,198		3,187
Delaware Valley		874		1,283		1,111
Florida		1,999		3,202		3,411
Illinois		47		186		186
Maryland		1,034		1,173		1,156
Nevada		627		1,400		1,639
Texas		—		80		951
Utah		272		418		568
Virginia		2,459		3,224		3,149
Total Company		10,952		18,819		22,327
Non-refundable Option Deposits
Cash	$	34,034	$	48,157	$	50,050
Letters of Credit		16,069		23,142		25,728
Total Non-refundable Option Deposits	$	50,103	$	71,299	$	75,778

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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2006			2005			2006			2005
HOMES CLOSED (UNITS)
Arizona		716			895			2,337			2,550
California		383			475			1,252			1,238
Colorado		334			599			1,154			1,615
Delaware Valley		50			17			122			18
Florida		195			252			702			832
Illinois		46			19			119			40
Maryland		104			106			290			260
Nevada		696			616			2,109			1,851
Texas		75			214			366			616
Utah		206			239			580			640
Virginia		150			254			498			696
Total Company		2,955			3,686			9,529			10,356
AVERAGE SELLING PRICE PER HOME CLOSED
Arizona	$	311.8		$	221.2		$	303.6		$	215.0
California		520.7			510.5			542.8			509.2
Colorado		301.4			287.7			302.2			285.7
Delaware Valley		394.3			362.2			396.5			361.3
Florida		275.6			226.2			290.1			205.3
Illinois		365.6			411.7			367.7			426.5
Maryland		576.1			513.5			573.8			458.6
Nevada		317.8			307.6			320.6			298.1
Texas		164.0			162.7			167.1			159.1
Utah		321.5			226.9			293.0			219.0
Virginia		486.2			515.9			555.2			503.4
Company Average	$	358.2		$	311.4		$	354.0		$	298.8
ORDERS FOR HOMES, NET (UNITS)
Arizona		680			798			2,278			3,040
California		273			504			1,209			1,737
Colorado		196			469			938			1,727
Delaware Valley		36			56			110			156
Florida		81			238			530			917
Illinois		20			53			82			113
Maryland		70			89			320			365
Nevada		436			829			1,734			2,788
Texas		1			162			158			672
Utah		251			257			916			741
Virginia		76			96			383			673
Total Company		2,120			3,551			8,658			12,929
Estimated Value of Orders for Homes, net	$	678,110		$	1,223,834		$	2,952,362		$	4,402,203
Estimated Average Selling Price of Orders for Homes, net	$	319.9		$	344.6		$	341.0		$	340.5
Order Cancellation Rate3		48.5	%		25.7	%		40.1	%		21.5	%

³ Gross number of cancellations received divided by gross number of orders received.

-more-

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in Thousands)
(Unaudited)

	September 30,		December 31,		September 30,
	2006		2005		2005
BACKLOG (UNITS)
Arizona		2,040		2,099		2,633
California		722		765		1,306
Colorado		361		577		804
Delaware Valley		169		181		161
Florida		427		599		723
Illinois		43		80		91
Maryland		281		251		330
Nevada		648		1,023		1,683
Texas		30		238		312
Utah		674		338		390
Virginia		266		381		645
Total Company		5,661		6,532		9,078
Backlog Estimated Sales Value	$	2,100,000	$	2,440,000	$	3,290,000
Estimated Average Selling Price of Homes in Backlog	$	371.0	$	373.5	$	362.4
ACTIVE SUBDIVISIONS
Arizona		65		54		46
California		46		34		28
Colorado		45		57		56
Delaware Valley		7		7		6
Florida		29		19		19
Illinois		7		8		8
Maryland		17		11		10
Nevada		37		43		47
Texas		2		21		24
Utah		21		18		16
Virginia		19		20		20
Total Company		295		292		280
Average for Quarter Ended		296		287		281