EX-12 3 ex12.htm EXHIBIT 12 mdc20131231_10k.htm

 Exhibit 12

 

M.D.C. HOLDINGS, INC.

RATIO OF EARNINGS (LOSS) TO FIXED CHARGES

 

   

Year Ended December 31,

  
   

2013

    

2012

    

2011

    

2010

    

2009

  
                                         
   

(Dollars in thousands)

  

Earnings

  $ 187,953     $ 95,914     $ (62,329 )   $ (5,268 )   $ (28,481 )

Fixed charges

   $ 63,775     $ 45,200     $ 65,439     $ 75,440     $ 67,954  
                                         

Earnings to fixed charges

   $ 2.95     $ 2.12     $ (0.95 )   $ (0.07 )   $ (0.42 )
                                         

Earnings (Loss):

                                        
                                         

Income before income taxes

   $ 129,825     $ 61,115     $ (107,472 )   $ (70,601 )   $ (107,335 )
                                         

Add: fixed charges

     63,775       45,200       65,439       75,440       67,954  

Less: capitalized interest

     (59,908 )     (41,507 )     (41,448 )     (33,919 )     (19,810 )

Add: amortization of previously capitalized interest

     54,261       31,106       21,152       23,812       30,710  
                                         

Total earnings

   $ 187,953     $ 95,914     $ (62,329 )   $ (5,268 )   $ (28,481 )
                                         

Fixed Charges:

                                        
                                         

Homebuilding and corporate interest expense (1)

   $ 1,726     $ 808     $ 20,842     $ 38,157     $ 44,436  

Mortgage lending interest expense

     282       607       442       466       451  

Interest component of rent expense

     1,859       2,278       2,707       2,898       3,257  

Capitalized interest

     59,908       41,507       41,448       33,919       19,810  
                                         

Total fixed charges

   $ 63,775     $ 45,200     $ 65,439     $ 75,440     $ 67,954  

 

 

(1)

Includes the amortization and expensing of debt expenses that were not capitalized during period

 

In computing the ratio of earnings to fixed charges, fixed charges consist of homebuilding and corporate interest expense which includes the amortization and expensing of debt expenses that were not capitalized during period, mortgage lending interest expense, interest component of rent expense, and capitalized interest. Earnings are computed by adding fixed charges (except capitalized interest) and amortization of previously capitalized interest during the period to (loss) earnings before income taxes. For the years ended December 31, 2011, 2010 and 2009, the Company generated losses which exceeded fixed charges of $127.8 million, $80.7 million and $96.4 million, respectively.