EX-12 8 exhibit12.txt RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 M.D.C. HOLDINGS, INC. RATIO OF EARNINGS TO FIXED CHARGES
Six Months to June 30, Year Ended December 31, ---------------------- ----------------------------------------------------------- 2003 2002 2002 2001 2000 1999 1998 -------- --------- --------- --------- --------- -------- --------- Earnings $154,488 $120,077 $299,250 $283,562 $228,919 $181,602 $118,989 -------- -------- -------- -------- -------- -------- -------- Fixed Charges $26,524 $10,948 $25,631 $26,116 $27,729 $24,223 $48,378 Earnings to Fixed Charges 5.82 10.97 11.68 10.86 8.26 7.50 2.46 ==== ===== ===== ===== ==== ==== ==== Ratio Before Reclassification of Costs Associated with the Early Extinguishment of Debt 10.97 11.68 10.86 8.26 7.50 5.07 ===== ===== ===== ==== ==== ==== Earnings: Pretax Earnings from Continuing Operations 130,771 109,375 274,044 255,387 203,201 148,453 58,952 Add: Fixed Charges 26,524 10,948 25,631 26,116 27,729 24,223 48,378 Less capitalized interest (14,415) (8,956) (21,116) (22,498) (24,367) (21,261) (22,525) Add amortization of previously capitalized interest 11,608 8,710 20,691 24,557 22,356 30,187 34,184 ------- ------- ------- ------- ------- ------- ------ Total Earnings 154,488 120,077 299,250 283,562 228,919 181,602 118,989 ======= ======= ======= ======= ======= ======= ======= Fixed Charges: Homebuilidng and corporate interest expense 0 0 0 0 0 0 0 Interest component of rent expense 1,728 1,317 2,812 2,253 2,177 1,615 0 Amortization and expensing of debt expenses 10,381 675 1,703 1,365 1,185 1,347 25,853 Capitalized intreest 14,415 8,956 21,116 22,498 24,367 21,261 22,525 ------ ------ ------- ------- ------- ------- ------- Total Fixed Charges 26,524 10,948 25,631 26,116 27,729 24,223 48,378 ====== ====== ======= ======= ======= ======= ======= The Company adopted the provisions of SFAS No. 145, with respect to the rescission of SFAS No. 4, in the first quarter of 2003. As a result, $24.9 million of costs in 1998 associated with the early extinguishment of debt, previously classified as an extraordinary item are currently classified as expenses related to debt redemption and are deducted in calculating pre-tax income. In the second quarter of 2003, the Company incurred $9.3 million in expenses related to debt redemption. The effect of the new classification has been reflected in the computation of the 1998 and 2003 ratios.