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 30, 2009

M.D.C. Holdings, Inc.

(Exact name of registrant as specified in its charter)

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

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	3
ITEM 7.01. REGULATION FD DISCLOSURE	3
ITEM 9.01. EXHIBITS	3
SIGNATURES	4
INDEX TO EXHIBITS	5
Press Release dated October 30, 2009
EX-99.1

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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On October 30, 2009, M.D.C. Holdings, Inc. issued a press release reporting its third quarter and first nine months results for 2009. 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 30, 2009

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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 30, 2009	By:	/s/ Joseph H. Fretz
		Joseph H. Fretz
		Secretary and Corporate Counsel

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INDEX TO EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated October 30, 2009

5

EX-99.1

Exhibit 99.1

NEWS BULLETIN

M.D.C. HOLDINGS, INC.	RICHMOND AMERICAN HOMES
	HOMEAMERICAN MORTGAGE
FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 30, 2009

Contact: Robert N. Martin
Investor Relations
(720) 977-3431
bob.martin@mdch.com

M.D.C. HOLDINGS ANNOUNCES THIRD QUARTER 2009 RESULTS

• Diluted loss per share narrowed to $0.69 vs. $2.55 in Q3 2008

• Total revenue of $203.2 million vs. $362.7 million in Q3 2008

• Quarter-end cash and investments of $1.60 billion

• Net orders for 1,016 homes vs. 667 in Q3 2008

• 1,298 units in backlog with an estimated sales value of $383.0 million

DENVER, Friday, October 30, 2009 — M.D.C. Holdings, Inc. (NYSE: MDC) today reported results for its third quarter ended September 30, 2009. The Company announced a net loss for the quarter of $32.0 million, or $0.69 per diluted share, which included a pre-tax charge of $1.2 million for asset impairments. The 2009 third quarter net loss also included an $11.8 million increase in our deferred tax valuation allowance. The net loss for the 2008 third quarter was $118.0 million, or $2.55 per diluted share, which included a pre-tax charge of $95.4 million for asset impairments and an increase in our deferred tax valuation allowance of $61.1 million. Total revenue for the third quarter of 2009 was $203.2 million, compared with revenue of $362.7 million for the same period in 2008.

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “During the third quarter, an increasing national unemployment rate overshadowed an improvement in overall homebuilding industry conditions. Our outlook remains cautious because of the employment

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situation and the overall uncertain state of the economy. However, we are encouraged by a year-over-year increase in our own net home orders for the second consecutive quarter.”

Mizel continued, “We achieved the improvement in home orders in part due to our efforts to adapt our homes to the changing needs of our customers. During the third quarter, we continued to expand our offering of the smaller, more affordable homes that we introduced earlier this year. In addition, in an effort to improve affordability for our homebuyers, we initiated a new sales program during the quarter, which focused on providing low mortgage interest rates, and we positioned inventory to allow buyers the opportunity to close on a home prior to the impending expiration of the federal homebuyer tax credit.”

“We strategically increased the number of unsold homes available for personalization in our inventory by more than 40% during the quarter, while we decreased our finished homes by more than 75%. This should help to improve our profitability, as the margins we realize on unsold homes available for personalization significantly exceed those on finished inventory. Generally, we stop construction on unsold units at the drywall stage. Once construction is restarted, these homes can close within 45 days, in direct competition with finished homes on the market. However, by holding the units at drywall, we offer our buyers the opportunity to personalize the home at one of our Home Galleries.”

Mizel concluded, “After several years of relatively limited land acquisition activity, during the third quarter, we secured control of almost 1,300 lots through direct acquisitions or option contracts. With more than $1.6 billion in cash and investments available at the end of the quarter, we are well-positioned to continue making opportunistic investments as we build our land pipeline to support future home closings.”

Homebuilding Highlights

Net orders for the third quarter ended September 30, 2009 totaled 1,016 homes with an estimated sales value of $271.9 million, compared with net orders for 667 homes with an estimated sales value of $182.1 million during the same period in 2008. The improvement was driven by significant increases across all of the homebuilding segments. During the third quarter of 2009, the Company’s cancellation rate dropped to 23% compared with 46% during the same period in 2008, primarily due to a decrease in mortgage-related issues and a decline in the number of prospective homebuyers with a contingency to sell an existing home.

Homebuilding revenue for the 2009 third quarter fell to $200.0 million, compared with $358.1 million in the third quarter of 2008. The decline in revenue was primarily the result of a year-over-year decline in home closings and average selling price of 41% and 6%, respectively. All of our markets experienced year-over-year decreases in closings with the exception of Colorado, which experienced a 3% increase. Nearly all of our markets experienced year- over-year decreases in average selling price. However, Virginia and Delaware Valley experienced a year-

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over-year increase in average selling price due to a change in the size and style of homes that closed during the third quarter of 2009 compared to the same period in 2008.

Home gross margins during the third quarter of 2009 increased to 18.9% from 15.3% in the third quarter of 2008, primarily due to a $10.8 million reduction in the warranty reserve, compared with only a $3.2 million reduction in the third quarter of 2008. The third quarter 2009 warranty reserve reduction resulted from a decrease in warranty payments actually incurred and reaching a settlement on certain construction defect claims in Nevada. In addition, margins improved as a result of a decrease in the lot cost per home closed, primarily a result of prior impairments.

Homebuilding SG&A decreased to $31.0 million for the quarter ended September 30, 2009, compared with $57.7 million for the same period in the prior year. The decrease in SG&A resulted from various cost saving initiatives associated with right-sizing our operations in response to the reduced level of home closings, including a 35% reduction in homebuilding headcount over the past year. Also contributing to this decrease was a reduction in marketing expenses, primarily due to a significant reduction in sales office and model home expenses, as well as a decline in commission expenses resulting from fewer home closings and lower average selling prices.

During the third quarter of 2009, we recognized $1.2 million of asset impairments, a decrease of 99% from the $95.4 million recognized in the 2008 third quarter. Overall, the year-over-year decrease in asset impairments can be attributed to the impact of recording significant impairments over the last twelve quarters, thereby reducing our exposure to further impairments.

Financial Services and Other Highlights

Loss before taxes from the Company’s Financial Services and Other segment for the quarter ended September 30, 2009 was $4.3 million compared with income of $3.4 million for the same period in 2008. The decrease primarily resulted from a $5.2 million increase in general and administrative expense for the segment, due to a $7.3 million increase in our reserves for mortgage loan losses, compared with an increase in the reserve of only $0.8 million in the third quarter of 2008. In addition, we experienced a $1.5 million decrease in gains on sales of mortgage loans and broker origination fees, as we originated and sold fewer mortgage loans in connection with closing fewer homes during the quarter.

Corporate Highlights

Loss before taxes from the Company’s Corporate segment for the quarter ended September 30, 2009 was $27.4 million, compared with a loss of $21.3 million for the same period in 2008. The higher loss primarily resulted from a $5.7 million decrease in interest income, as lower interest rates offset a higher average cash balance for the quarter. Additionally, Corporate general and

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administrative expense increased by $2.7 million, primarily due to a $2.6 million increase in finance costs associated with the reduction of the commitment amount under our homebuilding line of credit.

Nine Month Results

Net loss for the nine months ended September 30, 2009 was $102.5 million, or $2.20 per diluted share, which included pre-tax charges of $17.0 million for asset impairments. The net loss for the nine months ended September 30, 2009 also included a $44.8 million increase in our deferred tax valuation allowance, of which $9.7 million related to a 2006 alternative minimum tax liability associated with our 2008 net operating loss carry back. The net loss for the first nine months of 2008 was $291.5 million, or $6.32 per diluted share, which included a pre-tax charge of $238.5 million for asset impairments and an increase of $115.1 million to our deferred tax asset valuation allowance.

About MDC

Since 1972, MDC’s subsidiary companies have built and financed the American dream for more than 160,000 families. 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 divisions across the country, including Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. 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, visit www.mdcholdings.com.

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 the Company 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 the Company, including cancellation rates, net home orders, home gross margins, and land and home values; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) the relative stability of debt and equity markets; (5) competition; (6) the availability and cost of land and other raw materials

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used by the Company in its homebuilding operations; (7) the availability and cost of performance bonds and insurance covering risks associated with our business; (8) shortages and the cost of labor; (9) weather related slowdowns; (10) slow growth initiatives; (11) building moratoria; (12) governmental regulation, including the interpretation of tax, labor and environmental laws; (13) changes in consumer confidence and preferences; (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 Form 10-Q for the quarter September 30, 2009, 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. The Company 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 presentations should be consulted.

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

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2009			2008			2009			2008
Revenue
Home sales revenue	$	186,816		$	336,744		$	539,352		$	1,074,629
Land sales revenue		9,414			15,850			13,986			56,699
Other revenue		6,996			10,107			21,086			30,573
Total Revenue		203,226			362,701			574,424			1,161,901
Costs and Expenses
Home cost of sales		151,596			285,367			445,039			937,947
Land cost of sales		9,433			14,775			12,274			49,559
Asset impairments, net		1,197			95,388			17,009			238,498
Marketing expenses		9,631			18,797			26,393			58,350
Commission expenses		6,808			12,297			20,119			40,389
General and administrative expenses		45,800			50,010			121,981			145,120
Other operating expenses		3,594			1,586			4,151			5,156
Related party expenses		5			3			14			13
Total Operating Costs and Expenses		228,064			478,223			646,980			1,475,032
Loss from Operations		(24,838	)		(115,522	)		(72,556	)		(313,131	)
Other income (expense)
Interest income		2,724			9,315			9,763			28,338
Interest expense		(9,760	)		(10,775	)		(29,338	)		(10,985	)
Other income		56			8			177			38
Loss Before Taxes		(31,818	)		(116,974	)		(91,954	)		(295,740	)
(Provision for) benefit from income taxes, net		(230	)		(997	)		(10,529	)		4,223
NET LOSS	$	(32,048	)	$	(117,971	)	$	(102,483	)	$	(291,517	)
LOSS PER SHARE
Basic	$	(0.69	)	$	(2.55	)	$	(2.20	)	$	(6.32	)
Diluted	$	(0.69	)	$	(2.55	)	$	(2.20	)	$	(6.32	)
WEIGHTED-AVERAGE SHARES OUTSTANDING
Basic		46,597			46,219			46,515			46,094
Diluted		46,597			46,219			46,515			46,094
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25		$	0.75		$	0.75

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

	September 30,			December 31,
	2009			2008
Assets
Cash and cash equivalents	$	1,448,875		$	1,304,728
Marketable securities		151,260			54,864
Unsettled trades, net		2,133			57,687
Restricted cash		933			670
Receivables
Home sales receivables		14,283			17,104
Income taxes receivable		3,119			170,753
Other receivables		9,981			16,697
Mortgage loans held-for-sale, net		42,704			68,604
Inventories, net
Housing completed or under construction		325,257			415,500
Land and land under development		177,888			221,822
Property and equipment, net		37,721			38,343
Deferred tax asset, net of valuation allowance		—			—
Related party assets		28,839			28,627
Prepaid expenses and other assets, net		77,524			79,539
Total Assets	$	2,320,517		$	2,474,938
Liabilities
Accounts payable	$	45,910		$	28,793
Accrued liabilities		309,457			332,825
Mortgage repurchase facility		13,010			34,873
Senior notes, net		997,872			997,527
Total Liabilities		1,366,249			1,394,018
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; 47,025,000 and 46,972,000 issued and outstanding, respectively, at September 30, 2009 and 46,715,000 and 46,666,000 issued and outstanding, respectively, at December 31, 2008		470			467
Additional paid-in-capital		799,215			788,207
Retained earnings		155,242			292,905
Treasury stock, at cost; 53,000 and 49,000 shares at September 30, 2009 and December 31, 2008, respectively		(659	)		(659	)
Total Stockholders’ Equity		954,268			1,080,920
Total Liabilities and Stockholders’ Equity	$	2,320,517		$	2,474,938

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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,
	2009			2008			2009			2008
REVENUE
Homebuilding
West	$	94,079		$	194,750		$	250,519		$	639,066
Mountain		61,945			72,565			163,720			230,452
East		33,033			61,950			113,004			192,796
Other Homebuilding		10,909			28,829			37,709			84,918
Total Homebuilding		199,966			358,094			564,952			1,147,232
Financial Services and Other		6,578			8,497			19,147			25,341
Corporate		—			173			50			550
Inter-company adjustments		(3,318	)		(4,063	)		(9,725	)		(11,222	)
Consolidated	$	203,226		$	362,701		$	574,424		$	1,161,901
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	6,037		$	(47,741	)	$	5,809		$	(142,723	)
Mountain		(1,681	)		(30,085	)		(8,800	)		(80,720	)
East		(1,707	)		(17,444	)		(8,704	)		(32,523	)
Other Homebuilding		(2,724	)		(3,798	)		(4,232	)		(14,850	)
Total Homebuilding		(75	)		(99,068	)		(15,927	)		(270,816	)
Financial Services and Other		(4,344	)		3,414			(108	)		8,119
Corporate		(27,399	)		(21,320	)		(75,919	)		(33,043	)
Consolidated	$	(31,818	)	$	(116,974	)	$	(91,954	)	$	(295,740	)
INVENTORY IMPAIRMENTS
West	$	283		$	49,258		$	12,793		$	135,921
Mountain		191			25,195			445			59,249
East		—			13,126			2,475			23,667
Other Homebuilding		629			3,241			913			10,871
Consolidated	$	1,103		$	90,820		$	16,626		$	229,708
	September 30,			December 31,
	2009			2008
TOTAL ASSETS
Homebuilding
West	$	204,146		$	255,652
Mountain		245,639			288,221
East		115,466			151,367
Other Homebuilding		24,569			38,179
Total Homebuilding		589,820			733,419
Financial Services and Other		116,629			139,569
Corporate		1,660,025			1,647,907
Inter-company adjustments		(45,957	)		(45,957	)
Consolidated	$	2,320,517		$	2,474,938

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

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding	$	14,579		$	26,654		$	(12,075	)		-45	%	$	46,264		$	79,059		$	(32,795	)		-41	%
Financial Services and Other		11,303			6,131		$	5,172			84	%		20,646			20,199		$	447			2	%
Corporate (1)		19,923			17,228		$	2,695			16	%		55,085			45,875		$	9,210			20	%
Total	$	45,805		$	50,013		$	(4,208	)		-8	%	$	121,995		$	145,133		$	(23,138	)		-16	%
SG&A as a % of Home Sales Revenue
Homebuilding Segments		16.6	%		17.1	%		-0.5	%					17.2	%		16.5	%		0.7	%
Corporate Segment (1)		10.7	%		5.1	%		5.6	%					10.2	%		4.3	%		5.9	%
Depreciation and Amortization (2)	$	3,404		$	8,902		$	(5,498	)		-62	%	$	10,128		$	26,860		$	(16,732	)		-62	%
Home Gross Margins (3)		18.9	%		15.3	%		3.6	%					17.5	%		12.7	%		4.8	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		-3.8	%		-2.9	%		-0.9	%					-4.4	%		-3.9	%		-0.5	%
Cash Provided by (Used in)
Operating Activities	$	(7,312	)	$	106,046		$	(113,358	)		-107	%	$	244,506		$	428,349		$	(183,843	)		-43	%
Investing Activities	$	(80,881	)	$	(210,199	)	$	129,318			-62	%	$	(46,938	)	$	(210,315	)	$	163,377			-78	%
Financing Activities	$	(22,757	)	$	(31,796	)	$	9,039			-28	%	$	(53,421	)	$	(61,929	)	$	8,508			-14	%
Corporate and Homebuilding Interest
Interest capitalized, beginning of period	$	32,089		$	49,674		$	(17,585	)		-35	%	$	39,239		$	53,487		$	(14,248	)		-27	%
Interest capitalized, net of interest expense	$	4,810		$	3,749		$	1,061			28	%	$	14,354		$	32,666		$	(18,312	)		-56	%
Previously capitalized interest included in home cost of sales	$	(7,142	)	$	(9,689	)	$	2,547			-26	%	$	(23,836	)	$	(42,419	)	$	18,583			-44	%
Interest capitalized, end of period	$	29,757		$	43,734		$	(13,977	)		-32	%	$	29,757		$	43,734		$	(13,977	)		-32	%

(1)	Includes related party expenses.
(2)	Includes depreciation and amortization of long-lived assets and amortization of deferred marketing costs.
(3)	Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing, project cost write offs and asset impairments) as a percent of home sales revenue. During the three months ended September 30, 2009 and September 30, 2008, we closed homes on lots for which we had previously recorded $45.8 million and $68.5 million, respectively, of asset impairments. During the nine months ended September 30, 2009 and September 30, 2008, we closed homes on lots for which we had previously recorded $136.4 million and $182.1 million, respectively, of asset impairments.

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

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans originated	$	137,990		$	198,780		$	(60,790	)		-31	%	$	406,688		$	576,565		$	(169,877	)		-29	%
Principal amount of mortgage loans brokered	$	6,136		$	34,977		$	(28,841	)		-82	%	$	25,131		$	141,147		$	(116,016	)		-82	%
Capture Rate		84	%		71	%		13	%					84	%		65	%		19	%
Including brokered loans		87	%		82	%		5	%					89	%		78	%		11	%
Mortgage products (% of mortgage loans originated)
Fixed rate		100	%		97	%		3	%					100	%		97	%		3	%
Adjustable rate - - interest only		0	%		0	%		0	%					0	%		1	%		-1	%
Adjustable rate - - other		0	%		3	%		-3	%					0	%		2	%		-2	%
Prime loans (4)		28	%		46	%		-18	%					32	%		51	%		-19	%
Government loans (5)		72	%		54	%		18	%					68	%		49	%		19	%

(4)	Prime loans generally are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply with the documentation standards of the government sponsored enterprise guidelines.
(5)	Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.

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

	September 30,		December 31,		September 30,
	2009		2008		2008
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction — Final		19		451		364
Unsold Home Under Construction — Frame		298		329		495
Unsold Home Under Construction — Foundation		226		41		123
Total Unsold Homes Under Construction		543		821		982
Sold Homes Under Construction		1,073		409		852
Model Homes		215		387		428
Homes Completed or Under Construction		1,831		1,617		2,262
LOTS OWNED (excluding homes completed or under construction)
Arizona		1,303		1,458		1,612
California		721		839		873
Nevada		706		1,111		934
West		2,730		3,408		3,419
Colorado		2,345		2,597		2,638
Utah		469		642		731
Mountain		2,814		3,239		3,369
Delaware Valley		91		115		117
Maryland		131		176		192
Virginia		161		241		256
East		383		532		565
Florida		196		257		254
Illinois		141		141		155
Other Homebuilding		337		398		409
Total		6,264		7,577		7,762

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

	September 30,		December 31,		September 30,
	2009		2008		2008
LOTS CONTROLLED UNDER OPTION
Arizona		413		472		431
California		46		149		149
Nevada		87		95		101
West		546		716		681
Colorado		532		184		183
Utah		143		—		—
Mountain		675		184		183
Delaware Valley		—		40		82
Maryland		528		355		349
Virginia		278		592		1,050
East		806		987		1,481
Florida		299		471		407
Illinois		—		—		—
Other Homebuilding		299		471		407
Total		2,326		2,358		2,752
NON-REFUNDABLE OPTION DEPOSITS
Cash	$	5,430	$	5,145	$	5,004
Letters of Credit		2,702		4,358	$	4,913
Total Non-Refundable Option Deposits	$	8,132	$	9,503	$	9,917

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

	Three Months										Nine Months
	Ended September 30,				Change						Ended September 30,				Change
	2009		2008		Amount			%			2009		2008		Amount			%
HOMES CLOSED (UNITS)
Arizona		152		307		(155	)		-50	%		505		1,038		(533	)		-51	%
California		80		155		(75	)		-48	%		191		472		(281	)		-60	%
Nevada		106		210		(104	)		-50	%		294		639		(345	)		-54	%
West		338		672		(334	)		-50	%		990		2,149		(1,159	)		-54	%
Colorado		159		155		4			3	%		363		443		(80	)		-18	%
Utah		40		54		(14	)		-26	%		136		214		(78	)		-36	%
Mountain		199		209		(10	)		-5	%		499		657		(158	)		-24	%
Delaware Valley		12		24		(12	)		-50	%		42		75		(33	)		-44	%
Maryland		25		55		(30	)		-55	%		90		150		(60	)		-40	%
Virginia		34		60		(26	)		-43	%		120		199		(79	)		-40	%
East		71		139		(68	)		-49	%		252		424		(172	)		-41	%
Florida		48		70		(22	)		-31	%		141		254		(113	)		-44	%
Illinois		3		26		(23	)		-88	%		22		60		(38	)		-63	%
Other Homebuilding		51		96		(45	)		-47	%		163		314		(151	)		-48	%
Total		659		1,116		(457	)		-41	%		1,904		3,544		(1,640	)		-46	%
AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	193.6	$	206.2	$	(12.6	)		-6	%	$	194.8	$	220.2	$	(25.4	)		-12	%
California		417.0		435.5		(18.5	)		-4	%		410.3		422.4		(12.1	)		-3	%
Colorado		317.3		346.4		(29.1	)		-8	%		333.7		348.6		(14.9	)		-4	%
Delaware Valley		429.5		395.5		34.0			9	%		418.0		409.3		8.7			2	%
Florida		208.2		240.1		(31.9	)		-13	%		217.9		240.4		(22.5	)		-9	%
Illinois		294.0		351.7		(57.7	)		-16	%		313.0		347.8		(34.8	)		-10	%
Maryland		405.7		442.0		(36.3	)		-8	%		405.4		459.3		(53.9	)		-12	%
Nevada		204.6		243.3		(38.7	)		-16	%		206.4		246.2		(39.8	)		-16	%
Utah		283.1		331.4		(48.3	)		-15	%		295.2		336.4		(41.2	)		-12	%
Virginia		521.1		458.5		62.6			14	%		490.6		459.5		31.1			7	%
Company Average	$	283.5	$	301.7	$	(18.2	)		-6	%	$	283.3	$	303.2	$	(19.9	)		-7	%

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13

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

	Three Months												Nine Months
	Ended September 30,						Change						Ended September 30,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		227			216			11			5	%		599			792			(193	)		-24	%
California		75			87			(12	)		-14	%		262			394			(132	)		-34	%
Nevada		214			111			103			93	%		462			487			(25	)		-5	%
West		516			414			102			25	%		1,323			1,673			(350	)		-21	%
Colorado		197			105			92			88	%		537			385			152			39	%
Utah		102			17			85			500	%		229			105			124			118	%
Mountain		299			122			177			145	%		766			490			276			56	%
Delaware Valley		13			20			(7	)		-35	%		46			56			(10	)		-18	%
Maryland		53			25			28			112	%		144			112			32			29	%
Virginia		61			40			21			53	%		178			152			26			17	%
East		127			85			42			49	%		368			320			48			15	%
Florida		71			33			38			115	%		193			215			(22	)		-10	%
Illinois		3			13			(10	)		-77	%		19			26			(7	)		-27	%
Other Homebuilding		74			46			28			61	%		212			241			(29	)		-12	%
Total		1,016			667			349			52	%		2,669			2,724			(55	)		-2	%
Estimated Value of Orders for Homes, net	$	272,000		$	182,000		$	90,000			49	%	$	752,000		$	785,000		$	(33,000	)		-4	%
Estimated Average Selling Price of Orders for Homes, net	$	267.7		$	272.9		$	(5.2	)		-2	%	$	281.8		$	288.2		$	(6.4	)		-2	%
Cancellation Rate(6)		23	%		46	%		-23	%					22	%		43	%		-21	%

⁽⁶⁾ We define “Cancellation Rate” as the approximate number of cancelled home order contracts during a reporting period as a percent of total home orders received during such reporting period.

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14

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

	September 30,		December 31,		September 30,
	2009		2008		2008
BACKLOG (UNITS)
Arizona		252		158		346
California		120		49		125
Nevada		221		53		155
West		593		260		626
Colorado		246		72		155
Utah		135		42		69
Mountain		381		114		224
Delaware Valley		31		27		38
Maryland		112		58		88
Virginia		94		36		53
East		237		121		179
Florida		87		35		86
Illinois		—		3		12
Other Homebuilding		87		38		98
Total		1,298		533		1,127
Backlog Estimated Sales Value	$	383,000	$	173,000	$	364,000
Estimated Average Selling Price of Homes in Backlog	$	295.1	$	324.6	$	323.0
ACTIVE SUBDIVISIONS
Arizona		30		44		52
California		5		18		17
Nevada		20		24		25
West		55		86		94
Colorado		41		49		49
Utah		17		22		24
Mountain		58		71		73
Delaware Valley		1		3		2
Maryland		8		11		12
Virginia		7		12		16
East		16		26		30
Florida		8		7		12
Illinois		—		1		2
Other Homebuilding		8		8		14
Total		137		191		211
Average for quarter ended		140		202		219

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15