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): February 5, 2010

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 February 5, 2010

2

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On February 5, 2010, M.D.C. Holdings, Inc. issued a press release reporting its fourth quarter 2009 results. A copy of this press release is attached hereto as Exhibit 99.1

     Also attached hereto as Exhibit 99.2 is the slide presentation that will be used at the 2009 fourth quarter earnings release conference call scheduled for today at 12:30 pm ET. The live teleconference will be available by calling 866-816-5116 and entering Conference ID #53831339.

     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 February 5, 2010
Exhibit 99.2	Slide Presentation

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: February 5, 2010	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 February 5, 2010
Exhibit 99.2	Slide Presentation

5

EX-99.1

Exhibit 99.1

M.D.C. HOLDINGS, INC.

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
FRIDAY, FEBRUARY 5, 2010

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

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

• Income per share of $2.68 vs. loss of $1.92 in Q4 2008

• Net orders increased 82% to 637 homes vs. 350 in Q4 2008

• Secured control of 2,745 lots in 52 communities

• Home gross margin increased 590 basis points to 18.8% vs. 12.9% in Q4 2008

• Closings increased 17% to 1,109 homes vs. 944 in Q4 2008

• Backlog increased 55% to 826 homes at 12/31/09 vs. 533 at 12/31/08

DENVER, Friday, February 5, 2010 — M.D.C. Holdings, Inc. (NYSE: MDC) today reported net income for the 2009 fourth quarter of $127.2 million, or $2.68 per diluted share, compared with a net loss for the 2008 fourth quarter of $89.0 million, or $1.92 per diluted share. Full year net income for 2009 was $24.7 million, or $0.52 per diluted share, compared with a net loss for 2008 of $380.5 million, or $8.25 per diluted share.

Both fourth quarter and full year 2009 net income reflected the impact of a $142.6 million benefit from income taxes that was recognized due to recently enacted tax legislation that allowed the Company to extend the carryback period of its 2009 net operating losses from two to five years.

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M.D.C. HOLDINGS, INC.

Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “Although the homebuilding industry continued to face significant obstacles to recovery in the fourth quarter of 2009, we increased our home orders year-over-year for the third consecutive quarter. As a result, we ended 2009 with 826 homes in backlog, a 55% increase from a year ago.”

Mizel continued, “Throughout 2009, we put considerable effort into activities designed to help us achieve profitability in the future. In the fourth quarter, our offering of more affordable homes that we introduced earlier in the year accounted for more than 30% of our new home orders. Furthermore, we enhanced the mix of the product we have available for sale by decreasing our exposure to finished speculative homes by more than 90% in 2009 and by strategically increasing our supply of homes available for personalization by 35% during the same period.”

“Generally, we now stop construction on unsold units at the drywall stage. Once construction is restarted, these homes typically can close within 45 days, in direct competition with finished homes on the market. By holding the units at drywall, we offer our buyers the opportunity to personalize their homes at one of our Home Galleries. We believe that this policy will continue to benefit us going forward as we attempt to increase our market share in a highly competitive homebuilding environment in 2010.”

Mizel concluded, “During the fourth quarter, we increased our lot supply for the first time in 17 quarters as we secured control of more than 2,700 lots in 52 new communities. After investing a total of $100 million in land acquisitions across our markets during the quarter, we ended the year with $1.56 billion in cash and investments, up 10% from the end of 2008. Shortly after the end of the year, we issued $250 million of 10-year senior notes at a low interest rate, and we expect to receive a $143 million tax refund before the end of the 2010 first quarter. Given these enhancements to our liquidity, we are well-positioned to continue making investments in 2010 as we build our land pipeline to support future home closings.”

Net income for the 2009 fourth quarter included a pre-tax charge of $14.0 million for asset impairments, while the net loss for the 2008 fourth quarter included a pre-tax charge of $59.7 million for asset impairments and an increase in our deferred tax valuation allowance of $19.2 million. For the year ended December 31, 2009, net income included a pre-tax charge of $31.0 million for asset impairments, while net income for the year ended December 31, 2008 included a pre-tax charge of $298.2 million for asset impairments and an increase in our deferred tax valuation allowance of $134.3 million.

Total revenue for the fourth quarter of 2009 was $323.9 million, compared with revenue of $296.2 million for the same period in 2008. For 2009, total revenue was $898.3 million, compared with revenue of $1.46 billion in 2008.

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M.D.C. HOLDINGS, INC.

Homebuilding Highlights

Net orders for the fourth quarter ended December 31, 2009 totaled 637 homes with an estimated sales value of $183.0 million, compared with net orders for 350 homes with an estimated sales value of $100.0 million during the same period in 2008. The improvement was driven by significant increases across all of our homebuilding segments. During the fourth quarter of 2009, the Company’s cancellation rate dropped to 30% compared with 52% during the same period in 2008, primarily due to a decrease in homebuyer mortgage-related issues and a decline in the number of prospective homebuyers with a contingency to sell an existing home. Net orders for the year ended December 31, 2009 totaled 3,306 homes with an estimated sales value of $935.0 million, compared with net orders for 3,074 homes with an estimated sales value of $885.0 million during 2008. We ended 2009 with 826 homes under contract with an estimated sales value of $265.0 million, compared with a backlog of 533 homes with an estimated sales value of $173.0 million at December 31, 2008.

Homebuilding revenue for the 2009 fourth quarter increased to $320.0 million, compared with $291.3 million in the fourth quarter of 2008. The increase in revenue was partly the result of a $14.2 million year-over-year increase in home sales revenue, driven by a 17% increase in home closings and partially offset by an 11% year-over-year decrease in average selling price. In addition, land sales revenue for the 2009 fourth quarter increased by $13.4 million year-over-year due to a significant increase in the number of lots sold as well as an increase in the average price of the lots sold. Homebuilding revenue for the year ended December 31, 2009 was $885.0 million, compared with $1.44 billion for the same period in 2008.

Home gross margin during the fourth quarter of 2009 increased to 18.8% from 12.9% in the fourth quarter of 2008, despite the reduction in average selling price, primarily due to a reduction in construction costs and interest in cost of sales, relative to the average selling price of homes closed. For the full year, home gross margin rose from 12.8% in 2008 to 17.9% in 2009.

Homebuilding SG&A decreased to $40.9 million for the quarter ended December 31, 2009, compared with $43.3 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, including a 23% 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. For the full year, homebuilding SG&A declined to $133.7 million in 2009, compared with $221.1 million in 2008.

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M.D.C. HOLDINGS, INC.

Financial Services and Other Highlights

Income before taxes from the Company’s Financial Services and Other segment for the quarter ended December 31, 2009 was $6.1 million compared with income of $3.6 million for the same period in 2008. The increase was largely the result of a decrease in general and administrative expense for the segment, primarily due to a $3.3 million decrease in the amount booked for insurance reserves. For the full year, income before taxes for the Financial Services and Other segment fell to $6.0 million in 2009 from $11.7 million in 2008.

Corporate Highlights

Loss before taxes from the Company’s corporate segment for the quarter ended December 31, 2009 was $26.3 million, compared with a loss of $22.1 million for the same period in 2008. The higher loss primarily resulted from a $4.8 million decrease in interest income, as lower interest rates offset a higher average cash and investments balance for the quarter. Additionally, corporate interest expense increased by $1.8 million. The changes in interest income and interest expense were partially offset by a $1.7 million decrease in finance costs associated with the reduction of the commitment amount under our homebuilding line of credit. The Corporate segment loss before taxes for the year ended December 31, 2009 was $102.3 million, compared with a loss of $55.1 million for the year ended December 31, 2008.

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.

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M.D.C. HOLDINGS, INC.

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 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-K for the fiscal year ending December 31, 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						Year Ended
	December 31,						December 31,
	2009			2008			2009			2008
REVENUE
Home sales revenue	$	297,702		$	283,519		$	837,054		$	1,358,148
Land sales revenue		16,744			3,351			30,730			60,050
Other revenue		9,433			9,338			30,519			39,910
Total Revenue		323,879			296,208			898,303			1,458,108
COSTS AND EXPENSES
Home cost of sales		241,815			246,918			686,854			1,184,865
Land cost of sales		12,764			4,288			25,038			53,847
Asset impairments		13,977			59,657			30,986			298,155
Marketing expenses		9,978			13,532			36,371			71,882
Commission expenses		10,883			9,906			31,002			50,295
General and administrative expenses		40,504			46,454			162,485			191,574
Other operating expenses		1,492			1,960			5,643			7,115
Related party expenses		1,004			5			1,018			18
Total Operating Costs and Expenses		332,417			382,720			979,397			1,857,751
LOSS FROM OPERATIONS		(8,538	)		(86,512	)		(81,094	)		(399,643	)
Other income (expense)
Interest income		2,394			7,450			12,157			35,788
Interest expense		(9,244	)		(7,333	)		(38,582	)		(18,318	)
Gain on sale of other assets		7			—			184			38
LOSS BEFORE TAXES		(15,381	)		(86,395	)		(107,335	)		(382,135	)
Benefit from (provision for) income taxes, net		142,543			(2,633	)		132,014			1,590
NET INCOME (LOSS)	$	127,162		$	(89,028	)	$	24,679		$	(380,545	)
EARNINGS (LOSS) PER SHARE
Basic	$	2.71		$	(1.92	)	$	0.52		$	(8.25	)
Diluted	$	2.68		$	(1.92	)	$	0.52		$	(8.25	)
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25		$	1.00		$	1.00

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

	December 31,
	2009			2008
ASSETS
Cash and cash equivalents	$	1,234,252		$	1,304,728
Marketable Securities		327,944			54,864
Unsettled trades		1,645			57,687
Restricted cash		476			670
Receivables
Home sales receivables		10,056			17,104
Income taxes receivable		145,144			170,753
Other receivables		5,844			16,697
Mortgage loans held-for-sale, net		62,315			68,604
Inventories, net
Housing completed or under construction		260,324			415,500
Land and land under development		262,860			241,571
Property and equipment, net		38,421			38,343
Deferred tax asset, net of valuation allowance		—			—
Related party assets		7,856			8,878
Prepaid expenses and other assets, net		72,171			79,539
Total Assets	$	2,429,308		$	2,474,938
LIABILITIES
Accounts payable	$	36,087		$	28,793
Accrued liabilities		291,969			332,825
Related party liabilities		1,000			—
Mortgage repurchase facility		29,115			34,873
Senior notes, net		997,991			997,527
Total Liabilities	$	1,356,162		$	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; 47,070,000 and 47,017,000 issued and outstanding, respectively, at December 31, 2009 and 46,715,000 and 46,666,000 issued and outstanding, respectively, at December 31, 2008		471			467
Additional paid-in-capital		802,675			788,207
Retained earnings		270,659			292,905
Accumulated other comprehensive loss		—			—
Treasury stock, at cost; 53,000 and 49,000 shares at December 31, 2009 and December 31, 2008, respectively		(659	)		(659	)
Total Stockholders’ Equity		1,073,146			1,080,920
Total Liabilities and Stockholders’ Equity	$	2,429,308		$	2,474,938

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

	Three Months Ended						Year Ended
	December 31,						December 31,
	2009			2008			2009			2008
REVENUE
Homebuilding
West	$	156,638		$	146,385		$	407,157		$	785,451
Mountain		83,617			67,989			247,337			298,441
East		63,382			52,449			176,386			245,245
Other Homebuilding		16,377			24,513			54,086			109,431
Total Homebuilding		320,014			291,336			884,966			1,438,568
Financial Services and Other		9,171			8,340			28,318			33,681
Corporate		(40	)		93			10			643
Inter-company adjustments		(5,266	)		(3,562	)		(14,991	)		(14,784	)
Consolidated	$	323,879		$	296,207		$	898,303		$	1,458,108
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	13,335		$	(14,380	)	$	19,144		$	(157,103	)
Mountain		(6,886	)		(31,531	)		(15,686	)		(112,251	)
East		(1,085	)		(18,073	)		(9,789	)		(50,596	)
Other Homebuilding		(459	)		(3,875	)		(4,691	)		(18,725	)
Total Homebuilding		4,905			(67,859	)		(11,022	)		(338,675	)
Financial Services and Other		6,061			3,559			5,953			11,678
Corporate		(26,347	)		(22,095	)		(102,266	)		(55,138	)
Consolidated	$	(15,381	)	$	(86,395	)	$	(107,335	)	$	(382,135	)
INVENTORY IMPAIRMENTS
West	$	2,162		$	16,048		$	14,955		$	151,969
Mountain		10,114			24,021			10,559			83,270
East		—			13,176			2,475			36,843
Other Homebuilding		234			3,783			1,147			14,654
Consolidated	$	12,510		$	57,028		$	29,136		$	286,736

	December 31,
	2009			2008
TOTAL ASSETS
Homebuilding
West	$	190,204		$	255,652
Mountain		237,702			279,343
East		112,964			151,367
Other Homebuilding		26,778			38,179
Total Homebuilding		567,648			724,541
Financial Services and Other		133,957			139,569
Corporate		1,773,660			1,656,785
Inter-company adjustments		(45,957	)		(45,957	)
Consolidated	$	2,429,308		$	2,474,938

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

	Three Months Ended												Year Ended
	December 31,						Change						December 31,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding	$	20,020		$	19,852		$	168			1	%	$	66,284		$	98,911		$	(32,627	)		-33	%
Financial Services and Other		3,561			5,591			(2,030	)		-36	%		24,207			25,790			(1,583	)		-6	%
Corporate (1)		17,927			21,016			(3,089	)		-15	%		73,012			66,891			6,121			9	%
Total	$	41,508		$	46,459		$	(4,951	)		-11	%	$	163,503		$	191,592		$	(28,089	)		-15	%
SG&A as a % of Home Sales Revenue
Homebuilding Segments		13.7	%		15.3	%		-1.6	%					16.0	%		16.3	%		-0.3	%
Corporate Segment (1)		6.0	%		7.4	%		-1.4	%					8.7	%		4.9	%		3.8	%
Depreciation and Amortization (2)	$	4,329		$	5,850		$	(1,521	)		-26	%	$	14,457		$	32,710		$	(18,253	)		-56	%
Home Gross Margins (3)		18.8	%		12.9	%		5.9	%					17.9	%		12.8	%		5.1	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		2.3	%		4.1	%		-1.8	%					3.7	%		4.0	%		-0.3	%
Cash Provided by (Used in)
Operating Activities	$	(42,052	)	$	51,162		$	(93,214	)		-182	%	$	202,454		$	479,511		$	(277,057	)		-58	%
Investing Activities	$	(178,054	)	$	96,876		$	(274,930	)		-284	%	$	(224,992	)	$	(113,439	)	$	(111,553	)		-98	%
Financing Activities	$	5,483		$	(4,178	)	$	9,661			231	%	$	(47,938	)	$	(66,107	)	$	18,169			27	%
Corporate and Homebuilding Interest
Interest capitalized, net of interest expense	$	5,456		$	7,186		$	(1,730	)		-24	%	$	19,810		$	39,852		$	(20,042	)		-50	%
Previously capitalized interest included in home cost of sales	$	(6,874	)	$	(11,681	)	$	4,807			-41	%	$	(30,710	)	$	(54,100	)	$	23,390			-43	%
Interest capitalized in homebuilding inventory, end of year	$	28,339		$	39,239		$	(10,900	)		-28	%	$	28,339		$	39,239		$	(10,900	)		-28	%

(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 December 31, 2009 and December 31, 2008, we closed homes on lots for which we had previously recorded $74.9 million and $67.4 million, respectively, of asset impairments. During the twelve months ended December 31, 2009 and December 31, 2008, we closed homes on lots for which we had previously recorded $211.3 million and $249.5 million, respectively, of asset impairments.

9

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

(Unaudited)

	Three Months Ended												Year Ended
	December 31,						Change						December 31,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans originated	$	226,483		$	172,745		$	53,738			31	%	$	633,171		$	749,310		$	(116,139	)		-15	%
Principal amount of mortgage loans brokered	$	8,021		$	29,751		$	(21,730	)		-73	%	$	33,152		$	170,898		$	(137,746	)		-81	%
Capture Rate		86	%		71	%		15	%					85	%		66	%		19	%
Including brokered loans		88	%		81	%		7	%					89	%		79	%		10	%
Mortgage products (% of mortgage loans originated)
Fixed rate		99	%		100	%		-1	%					99	%		97	%		2	%
Adjustable rate — interest only		0	%		0	%		0	%					0	%		1	%		-1	%
Adjustable rate — other		1	%		0	%		1	%					1	%		2	%		-1	%
Prime loans (4)		24	%		40	%		-16	%					29	%		48	%		-19	%
Government loans (5)		76	%		60	%		16	%					71	%		52	%		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)

	December 31,		December 31,
	2009		2008
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction — Final		41		451
Unsold Home Under Construction — Frame		389		329
Unsold Home Under Construction — Foundation		109		41
Total Unsold Homes Under Construction		539		821
Sold Homes Under Construction		570		409
Model Homes		212		387
Homes Completed or Under Construction		1,321		1,617
LOTS OWNED (excluding homes completed or under construction)
Arizona		1,075		1,458
California		581		839
Nevada		966		1,111
West		2,622		3,408
Colorado		2,514		2,597
Utah		545		642
Mountain		3,059		3,239
Delaware Valley		82		115
Maryland		100		176
Virginia		241		241
East		423		532
Florida		138		257
Illinois		141		141
Other Homebuilding		279		398
Total		6,383		7,577

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11

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

(Unaudited)

	December 31,		December 31,
	2009		2008
LOTS CONTROLLED UNDER OPTION
Arizona		328		472
California		113		149
Nevada		222		95
West		663		716
Colorado		537		184
Utah		117		—
Mountain		654		184
Delaware Valley		—		40
Maryland		575		355
Virginia		192		592
East		767		987
Florida		500		471
Illinois		—		—
Other Homebuilding		500		471
Total		2,584		2,358
Total Lots Owned and Controlled		8,967		9,935
NON-REFUNDABLE OPTION DEPOSITS
Cash	$	7,654	$	5,145
Letters of Credit		2,134		4,358
Total Non-Refundable Option Deposits	$	9,788	$	9,503

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12

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

	Three Months Ended										Year Ended
	December 31,				Change						December 31,				Change
	2009		2008		Amount			%			2009		2008		Amount			%
HOMES CLOSED (UNITS)
Arizona		273		275		(2	)		-1	%		778		1,313		(535	)		-41	%
California		102		118		(16	)		-14	%		293		590		(297	)		-50	%
Nevada		227		152		75			49	%		521		791		(270	)		-34	%
West		602		545		57			10	%		1,592		2,694		(1,102	)		-41	%
Colorado		202		133		69			52	%		565		576		(11	)		-2	%
Utah		94		54		40			74	%		230		268		(38	)		-14	%
Mountain		296		187		109			58	%		795		844		(49	)		-6	%
Delaware Valley		18		16		2			13	%		60		91		(31	)		-34	%
Maryland		50		42		8			19	%		140		192		(52	)		-27	%
Virginia		70		58		12			21	%		190		257		(67	)		-26	%
East		138		116		22			19	%		390		540		(150	)		-28	%
Florida		73		82		(9	)		-11	%		214		336		(122	)		-36	%
Illinois		—		14		(14	)		-100	%		22		74		(52	)		-70	%
Other Homebuilding		73		96		(23	)		-24	%		236		410		(174	)		-42	%
Total		1,109		944		165			17	%		3,013		4,488		(1,475	)		-33	%
AVERAGE SELLING PRICES PER CLOSED HOME
West
Arizona	$	193.5	$	201.1	$	(7.6	)		-4	%	$	194.3	$	216.2	$	(21.9	)		-10	%
California		430.9		455.3		(24.4	)		-5	%		417.5		429.0		(11.5	)		-3	%
Nevada		194.5		237.5		(43.0	)		-18	%		201.2		244.6		(43.4	)		-18	%
Mountain
Colorado		285.7		363.7		(78.0	)		-21	%		316.5		352.1		(35.6	)		-10	%
Utah		275.4		319.4		(44.0	)		-14	%		287.1		333.0		(45.9	)		-14	%
East
Delaware Valley		411.6		392.9		18.7			5	%		416.1		406.4		9.7			2	%
Maryland		460.5		489.9		(29.4	)		-6	%		425.0		466.0		(41.0	)		-9	%
Virginia		469.3		436.3		33.0			8	%		482.8		454.3		28.5			6	%
Other Homebuilding
Florida		207.8		232.7		(24.9	)		-11	%		214.5		238.5		(24.0	)		-10	%
Illinois		N/A		348.0		N/A			N/A			313.0		347.9		(34.9	)		-10	%
Company Average	$	268.4	$	300.3	$	(32.0	)		-11	%	$	277.8	$	302.6	$	(24.8	)		-8	%

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13

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

	Three Months												Year Ended
	Ended December 31,						Change						December 31,						Change
	2009			2008			Amount			%			2009			2008			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		124			87			37			43	%		723			879			(156	)		-18	%
California		58			42			16			38	%		320			436			(116	)		-27	%
Nevada		94			50			44			88	%		556			537			19			4	%
West		276			179			97			54	%		1,599			1,852			(253	)		-14	%
Colorado		163			50			113			226	%		700			435			265			61	%
Utah		53			27			26			96	%		282			132			150			114	%
Mountain		216			77			139			181	%		982			567			415			73	%
Delaware Valley		10			5			5			100	%		56			61			(5	)		-8	%
Maryland		41			12			29			242	%		185			124			61			49	%
Virginia		49			41			8			20	%		227			193			34			18	%
East		100			58			42			72	%		468			378			90			24	%
Florida		45			31			14			45	%		238			246			(8	)		-3	%
Illinois		—			5			(5	)		-100	%		19			31			(12	)		-39	%
Other Homebuilding		45			36			9			25	%		257			277			(20	)		-7	%
Total		637			350			287			82	%		3,306			3,074			232			8	%
Estimated Value of Orders for Homes, net	$	183,000		$	100,000			83,000			83	%	$	935,000		$	885,000			50,000			6	%
Estimated Average Selling Price of Orders for Homes, net	$	287.3		$	285.7			1.6			1	%	$	282.8		$	287.9			(5.1	)		-2	%
Cancellation Rate(6)		30	%		52	%		-22	%					24	%		45	%		-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)

	December 31,		December 31,
	2009		2008
BACKLOG (UNITS)
Arizona		103		158
California		76		49
Nevada		88		53
West		267		260
Colorado		207		72
Utah		94		42
Mountain		301		114
Delaware Valley		23		27
Maryland		103		58
Virginia		73		36
East		199		121
Florida		59		35
Illinois		—		3
Other Homebuilding		59		38
Total		826		533
Backlog Estimated Sales Value	$	265,000	$	173,000
Estimated Average Selling Price of Homes in Backlog	$	320.8	$	324.6
ACTIVE SUBDIVISIONS
Arizona		28		44
California		3		18
Nevada		18		24
West		49		86
Colorado		42		49
Utah		16		22
Mountain		58		71
Delaware Valley		1		3
Maryland		8		11
Virginia		7		12
East		16		26
Florida		10		7
Illinois		—		1
Other Homebuilding		10		8
Total		133		191

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15

EX-99.2

Exhibit 99.2

M.D.C. Holdings, Inc. 4th Quarter Webcast February 5, 2010

Forward Looking Statements Certain statements in this Conference Call and Webcast, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects and responses to questions, may contain "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 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 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 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-K for the year ended December 31, 2009, which was filed with the SEC today. All forward-looking statements made in this Conference Call and Webcast 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. It should also be noted that SEC Regulation G requires that certain information accompany the use of non-GAAP financial measures. Any information required by Regulation G will be posted on our web site, www.mdcholdings.com. M.D.C. HOLDINGS, INC.

Fourth Quarter Overview M.D.C. HOLDINGS, INC. Home orders increased 82% over prior year Q4 Third consecutive quarter increased home orders year-over-year Year-end backlog increased 55% Continued focus on product and processes More than 30% of home orders from new product 90% year-over-year reduction in finished speculative inventory 35% year-over-year increase in homes available for personalization

Fourth Quarter Overview M.D.C. HOLDINGS, INC. Made strategic land transactions to refill pipeline Secured control of 2,745 lots (in 52 communities) $100 million total land acquisition spend Cash and investments balance of $1.56 billion at 12/31/2009 Increased 10% year-over-year Opportunistic issuance of $250 million of 10-yr senior notes in Jan. 2010 $143 million tax refund expected in Q1 2010 Well-positioned to invest in new projects during 2010

Net Home Orders M.D.C. HOLDINGS, INC. Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 1098 959 667 350 676 977 1016 637 FOURTH QUARTER Year-over-year increase of 82% Cancellation rate of 30%; down from 52% in Q4 2008 Over 30% of gross orders from new plans Average price increased 1% year-over-year to $287K FY 2008 3,074 FY 2009 3,306

Backlog M.D.C. HOLDINGS, INC. 1576 1127 533 629 941 1298 826 Increase of 55% year-over-year Average price decreased 1% year-over-year to $320K 12/31/08 6/30/09 3/31/09 9/30/09 12/31/09

Income Statement Review M.D.C. HOLDINGS, INC. $78 million improvement in Q4 loss from operations due to increased revenue and gross margin percentage combined with reduced SG&A and asset impairments $319 million improvement in FY loss from operations due to increased gross margin percentage combined with reduced SG&A and asset impairments - partially offset by revenue decline "Other loss" for Q4 & FY 2009 due to net interest expense - preserving the option value of our balance sheet $142.6 million benefit to income taxes for both Q4 & FY 2009 due recently enacted tax legislation

Home Closings M.D.C. HOLDINGS, INC. Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 1136 1292 1116 944 580 665 659 1109 FOURTH QUARTER Year-over-year increase of 17% First year-over-year increase since Q1 2006 Average price decreased 11% year-over-year to $268K FY 2008 4,488 FY 2009 3,013

Home Gross Margin M.D.C. HOLDINGS, INC. Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 26.4 13.4 14.7 12.3 9.9 80.2 76.6 0.117 0.115 0.117 0.153 0.129 0.154 0.18 0.189 0.188 0.021 0.044 0.044 0.028 0.033 0.026 0.059 0.058 0.002 0.033 0.036 0.012 0.02 0.015 Year-over-year and sequential margin improvement mainly due to: Reduced hard costs Reduced interest expense Average lot cost of ~$50K in Q4 2008, Q3 2009 and Q4 2009 Homes sold as finished speculative inventory: 37% of Q4 08 closings 31% of Q3 09 closings Only 11% of Q4 09 closings As reported Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 26.4 13.4 14.7 12.3 9.9 80.2 76.6 0.117 0.115 0.117 0.153 0.162 0.18 0.168 0.169 0.203 0.021 0.044 0.044 0.028 0.033 0.026 0.059 0.058 0.002 0.033 0.036 0.012 0.02 0.015 Excluding warranty adjustment and interest in cost of sales

Selling Expenses M.D.C. HOLDINGS, INC. Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 26.4 13.4 14.7 12.3 9.9 80.2 76.6 26.4 13.4 14.7 12.3 9.9 6.4 7 6.8 10.9 29.9 19.2 20.3 18.8 13.5 8.8 7.9 9.6 10 (in millions) 26% decline in marketing 45% decrease in model homes year-over-year 30% decline in active subdivisions year-over-year 10% increase in commissions Roughly inline with increase in home sales revenue 16.4 20.9 23.4 15.2 Commissions Marketing 14.9

General and Administrative Expenses M.D.C. HOLDINGS, INC. (in millions) 15% decrease in headcount Reduced fees related to reduction of homebuilding line of credit Reduced restructuring expenses NOTE: Graph includes related party expenses Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 26.4 13.4 14.7 12.3 9.9 80.2 76.6 60.6 51.2 43.9 50 46.5 38.4 37.8 45.8 41.5 29.9 19.2 20.3 18.8 13.5

Inventory Impairments by Segment M.D.C. HOLDINGS, INC. Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 West 15.2 75.6 121.9 132.7 190.5 136.4 48.3 40 49.7 16.9 13.1 0 0.3 2.2 Mountain 0.6 1.3 0.7 9.1 6.9 13.4 4 32.2 27.1 25.6 0.3 0 0.2 10.1 East 3.3 7.4 2.6 5.9 22 17.7 1.5 9 13.7 13.3 1 1.8 0 0 Other 0.7 7 16.3 13.3 29.5 7.7 1 7.1 4.9 3.8 0 0 0.6 0.2 (in millions) West Mountain East Other 141.4 161.1 249.0 53.7 174.7 91.3 19.9 Q4 09 inventory impairment down 78% year-over-year 85.2 90.8 57.0 14.3 1.2 1.1 12.5 FY 2008 286.7 FY 2009 29.1 NOTE: Includes only inventory impairments, not impairments on other assets.

Unsold Home Inventory M.D.C. HOLDINGS, INC. 41 finished speculative homes Down 90% year-over-year 498 homes available for personalization (foundation/frame) Up 35% year-over-year Strategy to maintain supply of unsold homes under construction Improves inventory turnover Maintains margin by halting construction until customer personalizes home Key to maximizing opportunity related to tax credit expiring in Q2 2010 12/30/08 3/31/09 9/30/09 Frame Foundation 6/30/09 12/31/09 Finished 821 648 452 543 539

Land Acquisitions M.D.C. HOLDINGS, INC. 2,002 lots acquired 1,769 under new purchase contracts 233 under existing option contracts $100 million in total land acquisition 976 lots added to supply via new option contracts Acquisition efforts partially offset by sale of 1,190 lots First sequential increase in lots supply in 17 quarters - up 4% Q4 08 Q2 09 Lots Purchased Under New Contracts Q1 09 Q3 09 403 54 524 1,270 Lots Controlled Under New Option Contracts 2,745 Q4 09

Richmond American Homes Home Gallery by Richmond American HomeAmerican Mortgage American Home Title and Escrow Company American Home Insurance Agency Questions? M.D.C. HOLDINGS, INC.

Reconciliation of Non-GAAP Financial Measure M.D.C. HOLDINGS, INC.