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): April 26, 2007

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

Press Release dated April 26, 2007

 Press Release

2

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On April 26, 2007, M.D.C. Holdings, Inc. issued a press release reporting its first quarter 2007 results. 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 April 26, 2007

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: April 26, 2007	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 April 26, 2007.

5

EX-99.1

Exhibit 99.1

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
THURSDAY, APRIL 26, 2007

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 FIRST QUARTER 2007 RESULTS

• Net loss of $94.4 million; diluted loss per share of $2.07

• Pre-tax loss of $143.7 million; includes asset impairments and project cost write-offs of $145.4 million

• Cash flow from operations of $149.3 million; $633.2 million over the last three quarters

• Quarter-end cash of $631 million; no borrowings on homebuilding line of credit

• Ending cash and available borrowing capacity of $1.87 billion

• Only 422 finished speculative homes in inventory at quarter-end

• Total revenue of $745 million; $1.15 billion in 2006

• Closed 2,001 homes at an average selling price of $355,700

• Net orders for 2,558 homes valued at $902.0 million

• Quarter-end backlog of 4,195 homes valued at $1.50 billion

     DENVER, Thursday, April 26, 2007 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended March 31, 2007 of $94.4 million, or $2.07 per diluted share, which included pre-tax charges of $141.4 million for asset impairments and $4.0 million for write-offs of deposits and pre-acquisition costs associated with land option contracts the Company does not intend to pursue. Net income for the first quarter of 2006 was $95.4 million, or $2.08 per diluted share. Total revenue for the first quarter was $745 million, compared with revenue of $1.15 billion for the same period in 2006.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “The weakened demand for new homes experienced in 2006 continued throughout the first quarter of 2007, with most of our markets reporting lower orders for new homes compared to a year earlier. Many prospective homebuyers hesitated in making purchase decisions because of uncertainties in the stability of home prices. Competition for new home orders continued at a high level, caused in

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M.D.C. HOLDINGS, INC.

part by expanding new and existing home inventories. In addition, new issues emerged in the mortgage industry that caused a tightening of sub-prime and Alt-A lending standards, which negatively impacted net home orders in March. The existence of these factors in most of our markets required us and our peers to increase the use of incentives to sell homes, which contributed significantly to our first quarter net loss.”

     Mizel continued, “While awaiting signs of stabilization for our industry, we have continued to take actions that strengthen our balance sheet, improve our financial position and further prepare us to respond to opportunities that may emerge in this difficult homebuilding environment. In addition to reducing our supply of controlled lots by more than 10% since the beginning of the year, we generated almost $150 million in operating cash flow during the first quarter, contributing to a 47% year-over-year increase in our cash and available borrowing capacity to almost $1.9 billion. We ended the quarter with over $630 million in cash on hand and no borrowings under our homebuilding line of credit, and our debt-to-capital ratio declined year-over-year and continued to rank among the industry’s lowest.”

Homebuilding Results

     Homebuilding loss before taxes for the quarter ended March 31, 2007 was $138.9 million, compared with income before taxes of $170.9 million for the same period in 2006. This pre-tax difference was driven in large part by the asset impairment charges discussed above, as well as significant declines in home closings and home gross margins from the first quarter levels achieved during the same period in 2006. These income decreases were offset partially by the impact of reduced homebuilding commissions, marketing, general and administrative expense (“SG&A”) in the 2007 first quarter. The Company closed 2,001 homes and produced home gross margins of 15.8% in the 2007 first quarter, compared with 3,198 home closings and home gross margins of 27.1% for the comparable period in 2006. Average selling prices reached $355,700 for the quarter, up $6,400 from the same period in 2006, while SG&A decreased to $113.3 million from $133.6 million for the prior year first quarter.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “Because the spring selling season did not materialize as anticipated, we continued to provide incentives and lower prices in many of our markets to encourage homebuyer demand, in many cases in response to actions taken by our competitors. As a result, we have reduced our performance expectations with respect to certain subdivisions, leading to $115 million of impairments to land inventory and $26 million of impairments to work in process inventory in the first quarter. Nearly all of the impairments occurred in California, Nevada and Florida, with California alone accounting for over 60% of the total charge. In total, more than 3,200 lots in 52 subdivisions were impaired. The quarter-end book value of these subdivisions after the impairments was $381 million, including $203 million of land and $178 million of work in process.”

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M.D.C. HOLDINGS, INC.

     Reece concluded, “Our general and administrative expenses declined year-over-year in the 2007 first quarter by 19%, reflecting reduced employee-related costs resulting from our continued efforts to right-size our homebuilding operations in view of current market conditions. While commissions declined approximately in line with the decreases in home sales revenue, advertising expenses were almost the same as the 2006 first quarter, as we maintained an intense marketing program designed to improve homebuyer traffic in response to the continuing competitive home selling environment in most of our markets.”

Financial Services and Other Results

     Income before taxes from the Company’s Financial Services and Other segment for the quarter ended March 31, 2007 was $7.5 million, compared with $11.2 million for the same period in the previous year. The decrease primarily resulted from lower gains on sales of mortgage loans, as the dollar volumes of mortgage loan originations and mortgage loans sold declined in line with builder home closings.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 2,558 homes with an estimated sales value of $902 million during the 2007 first quarter, compared with net orders for 3,800 homes with an estimated sales value of $1.36 billion during the same period in 2006. Net home orders declined year-over-year in all of the Company’s markets except the Delaware Valley, with the largest unit decreases occurring in the West and Mountain homebuilding segments. During the 2007 first quarter, the Company’s order cancellation rate rose to approximately 35%, compared with the 31% rate experienced during the same period in 2006. The Company ended the first quarter of 2007 with a backlog of 4,195 homes, compared with a backlog of 7,134 homes at March 31, 2006. The estimated sales value of backlog at the end of the 2007 first quarter was $1.50 billion, compared with $2.70 billion at March 31, 2006.

     MDC, whose subsidiaries build homes under the name “Richmond American Homes,” is one of the top ten homebuilders in the United States, based on 2006 revenue. 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.

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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 and business conditions, including changes in cancellation rates, net home orders, home gross margins, and land and home values; (2) changes in interest rates and mortgage lending programs; (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 Annual Report on Form 10-K for the year ended December 31, 2006, which was 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 Ended
	March 31,
	2007			2006
REVENUE
Home sales revenue	$	711,800		$	1,117,155
Land sales revenue		6,034			1,837
Other revenue		27,290			26,433
Total Revenue		745,124			1,145,425
COSTS AND EXPENSES
Home cost of sales		599,199			814,849
Land cost of sales		5,107			1,774
Asset impairments		141,422			600
Marketing expenses		29,079			29,035
Commission expenses		23,250			32,843
General and administrative expenses		90,657			111,266
Related party expenses		91			2,577
Total Costs and Expenses		888,805			992,944
(Loss) income before income taxes		(143,681	)		152,481
Benefit (provision) for income taxes		49,283			(57,060	)
NET (LOSS) INCOME	$	(94,398	)	$	95,421
(LOSS) EARNINGS PER SHARE
Basic	$	(2.07	)	$	2.13
Diluted	$	(2.07	)	$	2.08
WEIGHTED-AVERAGE SHARES
Basic		45,501			44,820
Diluted		45,501			45,970
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25

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

	March 31,			December 31,
	2007			2006
ASSETS
Cash and cash equivalents	$	630,681		$	507,947
Restricted cash		2,546			2,641
Home sales receivables		69,255			143,936
Mortgage loans held in inventory, net		150,356			212,903
Inventories
Housing completed or under construction		1,171,137			1,178,671
Land and land under development		1,341,804			1,575,158
Property and equipment, net		41,503			44,606
Deferred income taxes		174,590			124,880
Prepaid expenses and other assets, net		107,593			119,133
Total Assets	$	3,689,465		$	3,909,875
LIABILITIES
Accounts payable	$	132,905		$	171,005
Accrued liabilities		367,362			418,953
Income taxes payable		11,602			28,485
Related party liabilities		701			2,401
Homebuilding line of credit		—			—
Mortgage line of credit		100,703			130,467
Senior notes, net		996,782			996,682
Total Liabilities		1,610,055			1,747,993
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; 45,708,000 and 45,694,000 issued and outstanding, respectively, at March 31, 2007 and 45,179,000 and 45,165,000 issued and outstanding, respectively, at December 31, 2006		457			452
Additional paid-in capital		783,873			760,831
Retained earnings		1,296,742			1,402,261
Accumulated other comprehensive loss		(1,003	)		(1,003	)
Less treasury stock, at cost; 14,000 shares at March 31, 2007 and December 31, 2006		(659	)		(659	)
Total Stockholders’ Equity		2,079,410			2,161,882
Total Liabilities and Stockholders’ Equity	$	3,689,465		$	3,909,875

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

	Three Months Ended
	March 31,
	2007			2006
REVENUE
West	$	454,654		$	687,246
Mountain		145,191			163,190
East		61,355			147,181
Other Homebuilding		64,860			125,887
Total Homebuilding		726,060			1,123,504
Financial Services and Other		19,570			23,642
Corporate		5,433			432
Intercompany Adjustments		(5,939	)		(2,153	)
Consolidated	$	745,124		$	1,145,425
(LOSS) INCOME BEFORE INCOME TAXES
West	$	(125,391	)	$	122,063
Mountain		10,971			8,635
East		(4,386	)		35,318
Other Homebuilding		(20,131	)		4,882
Total Homebuilding		(138,937	)		170,898
Financial Services and Other		7,517			11,184
Corporate		(12,261	)		(29,601	)
Consolidated	$	(143,681	)	$	152,481
ASSET IMPAIRMENTS
West	$	121,902		$	—
Mountain		654			—
East		2,567			—
Other Homebuilding		16,297			600
Total Homebuilding	$	141,420		$	600
Realized Benefit of Prior-Period Asset Impairment	$	9,213		$	—

	March 31,		December 31,
	2007		2006
TOTAL ASSETS
West	$	1,604,053	$	1,869,442
Mountain		525,298		535,554
East		320,779		333,902
Other Homebuilding		232,328		266,326
Total Homebuilding		2,682,458		3,005,224
Financial Services and Other		177,810		246,734
Corporate		829,197		657,917
Consolidated	$	3,689,465	$	3,909,875

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

	Three Months Ended
	March 31,						Change
	2007			2006			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Operations	$	60,999		$	71,681		$	(10,682	)		-15	%
Financial Services and Other Operations	$	12,058		$	12,129		$	(71	)		-1	%
Corporate	$	17,600		$	27,456		$	(9,856	)		-36	%
SG&A as a Percent of Home Sales Revenue
Homebuilding Operations		15.9	%		12.0	%		3.9	%
Corporate		2.5	%		2.6	%		-0.1	%
Depreciation and Amortization	$	11,820		$	13,628		$	(1,808	)		-13	%
Home Gross Margins (1)		15.8	%		27.1	%		-11.3	%
Cash Provided by (Used in) Operating Activities	$	149,323		$	(108,443	)	$	257,766
Cash Used in Investing Activities	$	(710	)	$	(1,638	)	$	928
Cash (Used in) Provided by Financing Activities	$	(25,879	)	$	61,289		$	(87,168	)
Ending Unrestricted Cash and Available Borrowing Capacity	$	1,868,783		$	1,267,845		$	600,938			47	%
Corporate and Homebuilding Interest
Interest Capitalized During the Period	$	14,441		$	14,841		$	(400	)		-3	%
Interest in Home and Land Cost of Sales for the Period	$	13,285		$	9,618		$	3,667			38	%
Interest in Home Cost of Sales as a Percent of Home Sales Revenue		1.9	%		0.9	%		1.0	%
Interest Capitalized in Inventories at End of Period	$	51,811		$	47,222		$	4,589			10	%
HOMEAMERICAN OPERATING ACTIVITIES
Principal Amount of Mortgage Loans Originated	$	351,033		$	526,231		$	(175,198	)		-33	%
Principal Amount of Mortgage Loans Brokered	$	118,342		$	157,243		$	(38,901	)		-25	%
Capture Rate		58	%		56	%		2	%
Including Brokered Loans		77	%		72	%		5	%
Mortgage Products (% of Loans Originated)
Fixed Rate		69	%		49	%		20	%
Adjustable Rate — Interest Only		27	%		44	%		-17	%
Adjustable Rate — Other		4	%		7	%		-3	%
Prime Loans (2)		59	%		59	%		0	%
Alt-A Loans (3)		35	%		34	%		1	%
Government Loans		5	%		5	%		0	%
Sub-Prime Loans (4)		1	%		2	%		-1	%

(1)	Home sales revenue less home cost of sales (excluding commissions, amortization of deferred marketing and asset impairments) as a percent of home sales revenue.
(2)	Prime loans are defined as loans with FICO scores greater than 620 and that comply in all ways with the documentation standards of the government sponsored enterprise guidelines.
(3)	Alt-A loans are defined as loans that would otherwise qualify as prime loans except that they do not comply in all ways with the government sponsored enterprise guidelines.
(4)	Sub-prime loans are loans that have FICO scores of less than or equal to 620.

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

	March 31,		December 31,		March 31,
	2007		2006		2006
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Homes Under Construction — Final		422		476		261
Unsold Homes Under Construction — Frame		480		573		531
Unsold Homes Under Construction — Foundation		310		400		346
Total Unsold Homes Under Construction		1,212		1,449		1,138
Sold Homes Under Construction		2,677		2,430		4,934
Model Homes		792		757		709
Homes Completed or Under Construction		4,681		4,636		6,781
LOTS OWNED (excluding homes completed or under construction)
Arizona		5,701		6,368		7,686
California		2,508		2,802		3,622
Nevada		2,416		2,747		4,139
West		10,625		11,917		15,447
Colorado		3,274		3,479		3,508
Utah		987		1,185		1,295
Mountain		4,261		4,664		4,803
Maryland		492		528		624
Virginia		600		643		784
East		1,092		1,171		1,408
Delaware Valley		261		265		402
Florida		1,033		1,093		1,458
Illinois		268		287		380
Texas		—		13		365
Other Homebuilding		1,562		1,658		2,605
Total		17,540		19,410		24,263
LOTS UNDER OPTION
Arizona		575		744		3,592
California		157		387		1,921
Nevada		117		250		665
West		849		1,381		6,178
Colorado		931		801		2,064
Utah		91		91		454
Mountain		1,022		892		2,518
Maryland		992		960		1,148
Virginia		2,148		2,381		3,231
East		3,140		3,341		4,379
Delaware Valley		644		683		1,277
Florida		1,436		1,800		2,686
Illinois		—		—		186
Texas		—		—		80
Other Homebuilding		2,080		2,483		4,229
Total		7,091		8,097		17,304
Non-refundable Option Deposits
Cash	$	15,649	$	20,228	$	44,108
Letters of Credit		14,422		14,224		19,240
Total Non-refundable Option Deposits	$	30,071	$	34,452	$	63,348

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

	Three Months Ended
	March 31,				Change
	2007		2006		Amount			%
HOMES CLOSED (UNITS)
Arizona		652		778		(126	)		-16	%
California		328		464		(136	)		-29	%
Nevada		313		675		(362	)		-54	%
West		1,293		1,917		(624	)		-33	%
Colorado		164		399		(235	)		-59	%
Utah		228		173		55			32	%
Mountain		392		572		(180	)		-31	%
Maryland		49		74		(25	)		-34	%
Virginia		68		177		(109	)		-62	%
East		117		251		(134	)		-53	%
Delaware Valley		46		31		15			48	%
Florida		128		252		(124	)		-49	%
Illinois		14		36		(22	)		-61	%
Texas		11		139		(128	)		-92	%
Other Homebuilding		199		458		(259	)		-57	%
Total		2,001		3,198		(1,197	)		-37	%
AVERAGE SELLING PRICE PER HOME CLOSED
Arizona	$	262.5	$	285.2	$	(22.7	)		-8	%
California		540.0		533.3		6.7			1	%
Colorado		352.5		296.5		56.0			19	%
Delaware Valley		489.6		412.0		77.6			19	%
Florida		280.9		297.7		(16.8	)		-6	%
Illinois		311.3		363.3		(52.0	)		-14	%
Maryland		530.8		570.3		(39.5	)		-7	%
Nevada		305.3		323.1		(17.8	)		-6	%
Texas		135.5		169.0		(33.5	)		-20	%
Utah		350.0		260.7		89.3			34	%
Virginia		492.0		596.2		(104.2	)		-17	%
Company Average	$	355.7	$	349.3	$	6.4			2	%

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

	Three Months Ended
	March 31,						Change
	2007			2006			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		754			919			(165	)		-18	%
California		415			544			(129	)		-24	%
Nevada		380			779			(399	)		-51	%
West		1,549			2,242			(693	)		-31	%
Colorado		300			451			(151	)		-33	%
Utah		210			339			(129	)		-38	%
Mountain		510			790			(280	)		-35	%
Maryland		99			152			(53	)		-35	%
Virginia		112			194			(82	)		-42	%
East		211			346			(135	)		-39	%
Delaware Valley		62			39			23			59	%
Florida		179			272			(93	)		-34	%
Illinois		41			44			(3	)		-7	%
Texas		6			67			(61	)		-91	%
Other Homebuilding		288			422			(134	)		-32	%
Total		2,558			3,800			(1,242	)		-33	%
Estimated Value of Orders for Homes, net	$	902,000		$	1,360,000		$	(458,000	)		-34	%
Estimated Average Selling Price of Orders for Homes, net	$	352.6		$	357.9		$	(5.3	)		-1	%
Approximate Order Cancellation Rate (5)		35	%		31	%		4	%

⁽⁵⁾ Gross number of cancellations received divided by gross number of orders received.

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

	March 31,		December 31,		March 31,
	2007		2006		2006
BACKLOG (UNITS)
Arizona		1,606		1,504		2,240
California		514		427		845
Nevada		382		315		1,127
West		2,502		2,246		4,212
Colorado		389		253		629
Utah		447		465		504
Mountain		836		718		1,133
Maryland		237		187		329
Virginia		180		136		398
East		417		323		727
Delaware Valley		135		119		189
Florida		248		197		619
Illinois		50		23		88
Texas		7		12		166
Other Homebuilding		440		351		1,062
Total		4,195		3,638		7,134
Backlog Estimated Sales Value	$	1,500,000	$	1,300,000	$	2,700,000
Estimated Average Selling Price of Homes in Backlog	$	357.6	$	357.3	$	378.5
ACTIVE SUBDIVISIONS
Arizona		70		67		58
California		47		45		42
Nevada		45		41		41
West		162		153		141
Colorado		49		47		50
Utah		26		22		21
Mountain		75		69		71
Maryland		18		19		15
Virginia		22		19		25
East		40		38		40
Delaware Valley		4		8		8
Florida		28		30		26
Illinois		6		6		7
Texas		—		2		18
Other Homebuilding		38		46		59
Total		315		306		311
Average for Quarter Ended		311		299		299

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M.D.C. HOLDINGS, INC.
Reconciliation of Non-GAAP Financial Measures
(Dollars in thousands)
(Unaudited)

	March 31,			December 31,			March 31,
	2007			2006			2006
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH
Total Debt	$	1,097,485		$	1,127,149		$	1,221,931
Less Mortgage Line of Credit		(100,703	)		(130,467	)		(125,540	)
Total Corporate and Homebuilding Debt		996,782			996,682			1,096,391
Less Cash (Including Restricted Cash)		(633,227	)		(510,588	)		(173,388	)
Total Corporate and Homebuilding Debt, Net of Cash		363,555			486,094			923,003
Stockholders’ Equity		2,079,410			2,161,882			2,055,208
Total Corporate and Homebuilding Capital, Net of Cash	$	2,442,965		$	2,647,976		$	2,978,211
Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash		0.15			0.18			0.31

NOTE: From time to time, MDC discloses selected non-GAAP financial measures. While non-GAAP financial measures are not a substitute for the comparable GAAP measures, we believe that certain non-GAAP information is useful to investors and management in comparing current results to historical periods and to competitor results, and that it provides additional information on the performance of MDC’s businesses. The above is a presentation of and reconciliation of selected non-GAAP measures with the most directly comparable GAAP financial measure.

“Ratio of corporate and homebuilding debt to capital, net of cash” is a non-GAAP financial measure. MDC’s management and investors use this ratio to help assess the risk associated with debt in the Company’s capital structure. It excludes debt incurred under MDC’s mortgage line of credit from both the numerator and denominator, as this debt is directly collateralized by mortgage loans held in inventory, which are typical liquidated within 45 days from origination, thereby substantially reducing the risk associated with this type of debt. The ratio’s numerator and denominator are also reduced by MDC’s cash position, as this balance could be used to reduce MDC’s exposure to debt outstanding.

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