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): July 25, 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

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION; and

ITEM 7.01. REGULATION FD DISCLOSURE

     On July 25, 2007, M.D.C. Holdings, Inc. issued a press release reporting its second quarter and first six months results for 2007. 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 July 25, 2007

2 

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: July 25, 2007	By:	/s/ Joseph H. Fretz
		Joseph H. Fretz
		Secretary and Corporate Counsel

3 

INDEX TO EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated July 25, 2007.

4 

EX-99.1

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
WEDNESDAY, JULY 25, 2007

Contacts:	Paris G. Reece III	Robert N. Martin	Joëlle Lipski-Rockwood
	Chief Financial Officer	Investor Relations	Corporate Communications
	(303) 804-7706	(720) 977-3431	(720) 977-3204
	greece@mdch.com	bob.martin@mdch.com	joelle.lipski-rockwood@mdch.com

M.D.C. HOLDINGS ANNOUNCES SECOND QUARTER 2007 RESULTS

• Net loss of $106.1 million; diluted loss per share of $2.32

• Pre-tax loss of $171.0 million; includes asset impairments and project cost write-offs of $167.5 million

• Cash flow from operations of $50.0 million; $674.6 million over last 12 months

• Quarter-end cash of $668 million; no borrowings on homebuilding line of credit

• Ending cash and available borrowing capacity of $1.89 billion

• Only 423 finished speculative homes in inventory at quarter-end

• Total revenue of $716.7 million; $1.23 billion in 2006

• Closed 2,031 homes at an average selling price of $338,700

• Net orders for 1,970 homes with an estimated value of $653.0 million

     DENVER, Wednesday, July 25, 2007 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended June 30, 2007 of $106.1 million, or $2.32 per diluted share, which included pre-tax charges of $161.1 million for asset impairments and $6.4 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 second quarter of 2006 was $76.5 million, or $1.66 per diluted share, including pre-tax charges of $12.1 million for write-offs of deposits and pre-acquisition costs. Total revenue for the second quarter was $716.7 million, compared with revenue of $1.23 billion for the same period in 2006.

     Net loss for the six months ended June 30, 2007 was $200.5 million, or $4.40 per diluted share, which included pre-tax charges of $302.5 million for asset impairments and $10.5 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 six months of 2006 was $171.9 million, or $3.74 per diluted share, including pre-tax charges of $15.8 million for write-

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M.D.C.HOLDINGS, INC.

offs of deposits and pre-acquisition costs. Total revenue for the 2007 first six months was $1.46 billion, compared with revenue of $2.38 billion for the same period in 2006.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “While industry conditions deteriorated further in all of our markets throughout the 2007 second quarter, we made significant strides, both operationally and financially, in positioning our Company to take advantage of opportunities that may be presented when these markets begin to stabilize and recover.”

     Mizel concluded, “Our continuing focus on conforming our operating and administrative infrastructure to changes in demand levels in each of our markets resulted in a year-over-year reduction in our total second quarter general and administrative expense of more than $35 million. Adding to the strength of our investment grade balance sheet, we reduced our lot supply by 15% in the second quarter alone, which enabled us to generate almost $160 million in cash flow from a decrease in our land inventory. At the same time, we minimized our incremental investment in work-in-process inventory by closely monitoring our supply of unsold homes. The combination of these efforts enabled us to generate $50 million in operating cash flow this quarter, raising our cumulative total over the last twelve months to $675 million. As a result, we ended the quarter with $668 million in cash and no borrowings under our $1.25 billion homebuilding line of credit, contributing to a 44% year-over-year increase in our cash and available borrowing capacity.”

Homebuilding Results

     Homebuilding loss before taxes for the quarter and six months ended June 30, 2007 was $171.3 million and $310.3 million, respectively, compared with income before taxes of $132.5 million and $303.4 million for the same periods in 2006. The pre-tax differences were 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 second quarter and six month levels achieved during the same periods in 2006. These income decreases were offset partially by the impact of reduced homebuilding commissions, marketing, general and administrative expense (“SG&A”).

     The Company closed 2,031 homes and produced home gross margins of 14.1% in the 2007 second quarter, compared with 3,376 home closings and home gross margins of 23.3% for the comparable period in 2006. For the six months ended June 30, 2007, the Company closed 4,032 homes and produced home gross margins of 15.0%, compared with 6,574 home closings and 25.1% home gross margins for the six months ended June 30, 2006. Average selling prices were $338,700 and $347,100, respectively, for the quarter and six months ended June 30, 2007, down $13,400 and $3,600 from the same periods in 2006. Homebuilding SG&A decreased to $111.6 million and $224.9 million, respectively, for the three and six months ended June 30, 2007, compared with $147.8 million and $281.3 million for the same periods in the prior year.

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M.D.C.HOLDINGS, INC.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “In the 2007 second quarter, we recognized impairments to land inventory and work-in-process inventory of $123 million and $38 million, respectively, as the high level of competition for new home orders caused us to reduce prices, increase incentives and, as a result, decrease our performance expectations with respect to certain subdivisions. As in the prior three quarters, the largest impairments occurred in California, which accounted for almost 50% of the total charge. Outside of California, the impairments occurred primarily in Arizona, Nevada, Florida and Colorado. In total, more than 4,400 lots in 83 subdivisions were impaired. The quarter-end book value of the impaired subdivisions after the impairments was $448 million, including $190 million of land and $258 million of work-in-process. Over the last twelve months, we have impaired approximately 40% of the 21,000 lots we owned at the end of our 2007 second quarter.”

Financial Services and Other Results

     Income before taxes from the Company’s Financial Services and Other segment for the quarter and six months ended June 30, 2007 was $4.2 million and $11.8 million, respectively, compared with $11.0 million and $22.2 million for the same periods in the previous year. The decrease for both periods 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. Additionally, in an effort to reduce its exposure to the risks inherent in holding mortgage loans, the Company shifted to a less profitable loan sales strategy during the quarter.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 1,970 homes with an estimated sales value of $653 million during the 2007 second quarter, compared with net orders for 2,738 homes with an estimated sales value of $914 million during the same period in 2006. For the six months ended June 30, 2007, the Company received net orders for 4,528 homes with a sales value of $1.56 billion, compared with 6,538 homes with a sales value of $2.27 billion for the six months ended June 30, 2006. Net home orders in the 2007 second quarter declined year-over-year in all of the Company’s markets except Illinois, with the largest unit decreases occurring in the Mountain and West homebuilding segments. During the second quarter and first six months of 2007, the Company’s approximate order cancellation rates of 44% and 39%, respectively, were consistent with the 43% and 37% rates experienced during the same periods in 2006. The Company ended the second quarter of 2007 with a backlog of 4,134 homes with an estimated sales value of $1.48 billion, compared with a backlog of 6,496 homes with an estimated sales value of $2.44 billion at June 30, 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

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M.D.C.HOLDINGS, INC.

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.

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 and Form 10-Q for the quarter ended March 31, 2007, which were 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 Operations
(In thousands, except per share amounts)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
REVENUE
Home sales revenue	$	687,813		$	1,188,561		$	1,399,613		$	2,305,716
Land sales revenue		3,417			13,639			9,451			15,476
Other revenue		25,478			29,781			52,768			56,214
Total Revenue		716,708			1,231,981			1,461,832			2,377,406
COSTS AND EXPENSES
Home cost of sales		590,564			911,707			1,189,763			1,726,557
Land cost of sales		2,181			13,140			7,288			14,914
Asset impairments		161,050			260			302,472			860
Marketing expenses		29,371			31,568			58,450			60,603
Commission expenses		24,380			37,394			47,630			70,237
General and administrative expenses		80,090			115,551			170,747			226,816
Related party expenses		100			127			191			2,704
Total Costs and Expenses		887,736			1,109,747			1,776,541			2,102,691
(Loss) income before income taxes		(171,028	)		122,234			(314,709	)		274,715
Benefit from (provision for) income taxes		64,956			(45,743	)		114,239			(102,803	)
NET (LOSS) INCOME	$	(106,072	)	$	76,491		$	(200,470	)	$	171,912
(LOSS) EARNINGS PER SHARE
Basic	$	(2.32	)	$	1.70		$	(4.40	)	$	3.83
Diluted	$	(2.32	)	$	1.66		$	(4.40	)	$	3.74
WEIGHTED-AVERAGE SHARES
Basic		45,722			44,939			45,612			44,880
Diluted		45,722			45,972			45,612			45,967
DIVIDENDS DECLARED PER SHARE	$	0.25		$	0.25		$	0.50		$	0.50

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

	June 30,			December 31,
	2007			2006
ASSETS
Cash and cash equivalents	$	668,379		$	507,947
Restricted cash		2,176			2,641
Home sales and other receivables		87,823			143,936
Mortgage loans held in inventory, net		125,717			212,903
Inventories
Housing completed or under construction		1,273,042			1,178,671
Land and land under development		1,061,884			1,575,158
Property and equipment, net		38,983			44,606
Deferred income taxes		229,291			124,880
Prepaid expenses and other assets, net		98,406			119,133
Total Assets	$	3,585,701		$	3,909,875
LIABILITIES
Accounts payable	$	161,208		$	171,005
Accrued liabilities		361,154			418,953
Income taxes payable		—			28,485
Related party liabilities		701			2,401
Homebuilding line of credit		—			—
Mortgage line of credit		99,411			130,467
Senior notes, net		996,883			996,682
Total Liabilities		1,619,357			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; 45,866,000 and 45,841,000 issued and outstanding, respectively, at June 30, 2007 and 45,179,000 and 45,165,000 issued and outstanding, respectively, at December 31, 2006		458			452
Additional paid-in capital		788,316			760,831
Retained earnings		1,179,232			1,402,261
Accumulated other comprehensive loss		(1,003	)		(1,003	)
Less treasury stock, at cost; 25,000 and 14,000 shares, respectively, at June 30, 2007 and December 31, 2006		(659	)		(659	)
Total Stockholders’ Equity		1,966,344			2,161,882
Total Liabilities and Stockholders’ Equity	$	3,585,701		$	3,909,875

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2007			2006			2007			2006
REVENUE
Homebuilding
West	$	433,049		$	720,530		$	887,703		$	1,407,776
Mountain		134,670			187,724			279,861			350,914
East		71,800			160,534			133,155			307,715
Other Homebuilding		58,971			142,859			123,831			268,746
Total Homebuilding		698,490			1,211,647			1,424,550			2,335,151
Financial Services and Other		13,614			26,673			33,184			50,315
Corporate		9,029			183			14,462			615
Inter-company Adjustments		(4,425	)		(6,522	)		(10,364	)		(8,675	)
Consolidated	$	716,708		$	1,231,981		$	1,461,832		$	2,377,406
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	(139,239	)	$	98,817		$	(264,630	)	$	220,880
Mountain		(6,828	)		7,228			4,143			15,863
East		(6,784	)		26,462			(11,170	)		61,780
Other Homebuilding		(18,487	)		15			(38,618	)		4,897
Total Homebuilding		(171,338	)		132,522			(310,275	)		303,420
Financial Services and Other		4,241			10,988			11,758			22,172
Corporate		(3,931	)		(21,276	)		(16,192	)		(50,877	)
Consolidated	$	(171,028	)	$	122,234		$	(314,709	)	$	274,715
ASSET IMPAIRMENTS
West	$	132,730		$	—		$	254,634		$	—
Mountain		9,123			—			9,777			—
East		5,865			—			8,432			—
Other Homebuilding		13,332			260			29,629			860
Total Homebuilding	$	161,050		$	260		$	302,472		$	860
Realized Benefit of Prior-Period
Asset Impairments	$	18,793		$	—		$	28,006		$	—

	June 30,			December 31,
	2007			2006
TOTAL ASSETS
West	$	1,438,028		$	1,869,442
Mountain		545,487			535,554
East		313,380			333,902
Other Homebuilding		208,654			266,326
Total Homebuilding		2,505,549			3,005,224
Financial Services and Other		196,655			284,791
Corporate		924,354			657,917
Inter-company		(40,857	)		(38,057	)
Consolidated	$	3,585,701		$	3,909,875

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

	Three Months Ended												Six Months Ended
	June 30,						Change						June 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Operations	$	57,859		$	78,821		$	(20,962	)		-27	%	$	118,858		$	150,503		$	(31,645	)		-21	%
Financial Services and Other Operations	$	9,367		$	15,397		$	(6,030	)		-39	%	$	21,425		$	27,525		$	(6,100	)		-22	%
Corporate (1)	$	12,964		$	21,459		$	(8,495	)		-40	%	$	30,655		$	51,492		$	(20,837	)		-40	%
SG&A as a % of Home Sales Revenue
Homebuilding Operations		16.2	%		12.4	%		3.8	%					16.1	%		12.2	%		3.9	%
Corporate (1)		1.9	%		1.8	%		0.1	%					2.2	%		2.2	%		0.0	%
Depreciation and Amortization	$	10,397		$	14,881		$	(4,484	)		-30	%	$	22,217		$	28,509		$	(6,292	)		-22	%
Home Gross Margins (2)		14.1	%		23.3	%		-9.2	%					15.0	%		25.1	%		-10.1	%
Cash Provided by (Used in)
Operating Activities	$	49,999		$	(3,828	)	$	53,827					$	199,322		$	(112,271	)	$	311,593
Cash Used in Investing Activities	$	(1,345	)	$	(2,693	)	$	1,348					$	(2,055	)	$	(4,331	)	$	2,276
Cash Used in Financing Activities	$	(10,956	)	$	(67,734	)	$	56,778					$	(36,835	)	$	(6,445	)	$	(30,390	)
Ending Unrestricted Cash and Available Borrowing Capacity	$	1,888,793		$	1,311,515		$	577,278			44	%
Corporate and Homebuilding Interest
Interest Capitalized During the Period	$	14,435		$	15,006		$	(571	)		-4	%	$	28,876		$	29,843		$	(967	)		-3	%
Interest Included in Home Cost of Sales for the Period	$	12,258		$	13,659		$	(1,401	)		-10	%	$	25,543		$	23,273		$	2,270			10	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		1.8	%		1.2	%		0.6	%					1.8	%		1.0	%		0.8	%
Interest Capitalized in Inventories at End of Period	$	53,988		$	48,569		$	5,419			11	%

(1)	Includes related party expenses.
(2)	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.

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

	Three Months Ended												Six Months Ended
	June 30,						Change						June 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal Amount of Mortgage Loans Originated	$	293,544		$	604,419		$	(310,875	)		-51	%	$	644,577		$	1,130,650		$	(486,073	)		-43	%
Principal Amount of Mortgage Loans Brokered	$	127,892		$	171,847		$	(43,955	)		-26	%	$	246,233		$	329,090		$	(82,857	)		-25	%
Capture Rate		52	%		59	%		-7	%					55	%		57	%		-2	%
Including Brokered Loans		72	%		75	%		-3	%					74	%		73	%		1	%
Mortgage Products (% of Loans Originated)
Fixed Rate		83	%		49	%		34	%					76	%		49	%		27	%
Adjustable Rate — Interest Only		14	%		43	%		-29	%					20	%		44	%		-24	%
Adjustable Rate — Other		3	%		8	%		-5	%					4	%		7	%		-3	%
Prime Loans (3)		86	%		61	%		25	%					73	%		64	%		9	%
Alt-A Loans (4)		5	%		33	%		-28	%					20	%		30	%		-10	%
Government Loans (5)		9	%		4	%		5	%					7	%		4	%		3	%
Sub-Prime Loans (6)		0	%		2	%		-2	%					0	%		2	%		-2	%

(3)	Prime loans are defined as loans with Fair, Isaac and Company (“FICO”) scores greater than 620 and that comply in all ways with the documentation standards of the government sponsored enterprise guidelines.
(4)	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.
(5)	Government loans are loans either insured by the Federal Housing Administration or guaranteed by the Department of Veteran Affairs.
(6)	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)

	June 30,		December 31,		June 30,
	2007		2006		2006
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Homes Under Construction — Final		423		476		279
Unsold Homes Under Construction — Frame		690		573		781
Unsold Homes Under Construction — Foundation		382		400		395
Total Unsold Homes Under Construction		1,495		1,449		1,455
Sold Homes Under Construction		3,095		2,430		4,699
Model Homes		764		757		720
Homes Completed or Under Construction		5,354		4,636		6,874
LOTS OWNED (excluding homes completed or under construction)
Arizona		4,771		6,368		7,477
California		2,182		2,802		3,391
Nevada		2,038		2,747		3,619
West		8,991		11,917		14,487
Colorado		3,052		3,479		3,390
Utah		933		1,185		1,159
Mountain		3,985		4,664		4,549
Maryland		389		528		558
Virginia		542		643		822
East		931		1,171		1,380
Delaware Valley		212		265		372
Florida		907		1,093		1,307
Illinois		233		287		312
Texas		—		13		77
Other Homebuilding		1,352		1,658		2,068
Total		15,259		19,410		22,484
LOTS UNDER OPTION
Arizona		548		744		2,506
California		157		387		1,510
Nevada		4		250		568
West		709		1,381		4,584
Colorado		312		801		1,785
Utah		93		91		553
Mountain		405		892		2,338
Maryland		925		960		1,156
Virginia		1,894		2,381		2,642
East		2,819		3,341		3,798
Delaware Valley		741		683		966
Florida		1,073		1,800		2,367
Illinois		—		—		139
Texas		—		—		—
Other Homebuilding		1,814		2,483		3,472
Total		5,747		8,097		14,192
Non-refundable Option Deposits
Cash	$	11,009	$	20,228	$	37,993
Letters of Credit		11,850		14,224		17,640
Total Non-refundable Option Deposits	$	22,859	$	34,452	$	55,633

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

	Three Months Ended										Six Months Ended
	June 30,				Change						June 30,				Change
	2007		2006		Amount			%			2007		2006		Amount			%
HOMES CLOSED (UNITS)
Arizona		645		843		(198	)		-23	%		1,297		1,621		(324	)		-20	%
California		266		405		(139	)		-34	%		594		869		(275	)		-32	%
Nevada		405		738		(333	)		-45	%		718		1,413		(695	)		-49	%
West		1,316		1,986		(670	)		-34	%		2,609		3,903		(1,294	)		-33	%
Colorado		200		421		(221	)		-52	%		364		820		(456	)		-56	%
Utah		178		201		(23	)		-11	%		406		374		32			9	%
Mountain		378		622		(244	)		-39	%		770		1,194		(424	)		-36	%
Maryland		61		112		(51	)		-46	%		110		186		(76	)		-41	%
Virginia		76		171		(95	)		-56	%		144		348		(204	)		-59	%
East		137		283		(146	)		-52	%		254		534		(280	)		-52	%
Delaware Valley		35		41		(6	)		-15	%		81		72		9			13	%
Florida		138		255		(117	)		-46	%		266		507		(241	)		-48	%
Illinois		13		37		(24	)		-65	%		27		73		(46	)		-63	%
Texas		14		152		(138	)		-91	%		25		291		(266	)		-91	%
Other Homebuilding		200		485		(285	)		-59	%		399		943		(544	)		-58	%
Total		2,031		3,376		(1,345	)		-40	%		4,032		6,574		(2,542	)		-39	%
AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	253.1	$	313.6	$	(60.5	)		-19	%	$	257.8	$	300.0	$	(42.2	)		-14	%
California		534.6		574.5		(39.9	)		-7	%		537.6		552.5		(14.9	)		-3	%
Colorado		326.5		308.3		18.2			6	%		338.2		302.6		35.6			12	%
Delaware Valley		439.9		387.5		52.4			14	%		468.1		398.0		70.1			18	%
Florida		260.1		293.5		(33.4	)		-11	%		270.1		295.6		(25.5	)		-9	%
Illinois		412.0		374.5		37.5			10	%		359.8		369.0		(9.2	)		-2	%
Maryland		513.4		573.9		(60.5	)		-11	%		521.2		572.5		(51.3	)		-9	%
Nevada		304.2		320.9		(16.7	)		-5	%		304.7		321.9		(17.2	)		-5	%
Texas		126.3		166.8		(40.5	)		-24	%		130.4		167.9		(37.5	)		-22	%
Utah		369.2		291.5		77.7			27	%		358.4		277.3		81.1			29	%
Virginia		497.8		573.3		(75.5	)		-13	%		495.1		584.9		(89.8	)		-15	%
Company Average	$	338.7	$	352.1	$	(13.4	)		-4	%	$	347.1	$	350.7	$	(3.6	)		-1	%

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

	Three Months Ended												Six Months Ended
	June 30,						Change						June 30,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		611			679			(68	)		-10	%		1,365			1,598			(233	)		-15	%
California		282			392			(110	)		-28	%		697			936			(239	)		-26	%
Nevada		365			519			(154	)		-30	%		745			1,298			(553	)		-43	%
West		1,258			1,590			(332	)		-21	%		2,807			3,832			(1,025	)		-27	%
Colorado		224			291			(67	)		-23	%		524			742			(218	)		-29	%
Utah		139			326			(187	)		-57	%		349			665			(316	)		-48	%
Mountain		363			617			(254	)		-41	%		873			1,407			(534	)		-38	%
Maryland		92			98			(6	)		-6	%		191			250			(59	)		-24	%
Virginia		82			113			(31	)		-27	%		194			307			(113	)		-37	%
East		174			211			(37	)		-18	%		385			557			(172	)		-31	%
Delaware Valley		19			35			(16	)		-46	%		81			74			7			9	%
Florida		117			177			(60	)		-34	%		296			449			(153	)		-34	%
Illinois		31			18			13			72	%		72			62			10			16	%
Texas		8			90			(82	)		-91	%		14			157			(143	)		-91	%
Other Homebuilding		175			320			(145	)		-45	%		463			742			(279	)		-38	%
Total		1,970			2,738			(768	)		-28	%		4,528			6,538			(2,010	)		-31	%
Estimated Value of Orders for Homes, net	$	653,000		$	914,000		$	(261,000	)		-29	%	$	1,555,000		$	2,274,000		$	(719,000	)		-32	%
Estimated Average Selling Price of Orders for Homes, net	$	331.5		$	333.8		$	(2.3	)		-1	%	$	343.4		$	347.8		$	(4.4	)		-1	%
Approximate Order Cancellation Rate (7)		44	%		43	%		1	%					39	%		37	%		2	%

⁽⁷⁾ Gross number of cancellations divided by gross number of orders received.

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

	June 30,		December 31,		June 30,
	2007		2006		2006
BACKLOG (UNITS)
Arizona		1,572		1,504		2,076
California		530		427		832
Nevada		342		315		908
West		2,444		2,246		3,816
Colorado		413		253		499
Utah		408		465		629
Mountain		821		718		1,128
Maryland		268		187		315
Virginia		186		136		340
East		454		323		655
Delaware Valley		119		119		183
Florida		227		197		541
Illinois		68		23		69
Texas		1		12		104
Other Homebuilding		415		351		897
Total		4,134		3,638		6,496
Backlog Estimated Sales Value	$	1,480,000	$	1,300,000	$	2,440,000
Estimated Average Selling Price of Homes in Backlog	$	358.0	$	357.3	$	375.6
ACTIVE SUBDIVISIONS
Arizona		69		67		61
California		44		45		45
Nevada		43		41		35
West		156		153		141
Colorado		50		47		45
Utah		25		22		20
Mountain		75		69		65
Maryland		16		19		18
Virginia		23		19		23
East		39		38		41
Delaware Valley		5		8		7
Florida		27		30		28
Illinois		6		6		7
Texas		—		2		4
Other Homebuilding		38		46		46
Total		308		306		293
Average for Quarter Ended		311		299		300

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

	June 30,			December 31,			June 30,
	2007			2006			2006
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH
Total Debt	$	1,096,294		$	1,127,149		$	1,164,649
Less Mortgage Line of Credit		(99,411	)		(130,467	)		(168,163	)
Total Corporate and Homebuilding Debt		996,883			996,682			996,486
Less Cash (Including Restricted Cash)		(670,555	)		(510,588	)		(98,339	)
Total Corporate and Homebuilding Debt, Net of Cash		326,328			486,094			898,147
Stockholders’ Equity		1,966,344			2,161,882			2,126,233
Total Corporate and Homebuilding Capital, Net of Cash	$	2,292,672		$	2,647,976		$	3,024,380
Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash		0.14			0.18			0.30

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 a selected non-GAAP measure 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 of origination, thereby 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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