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 7, 2008

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

2

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On February 7, 2008, M.D.C. Holdings, Inc. issued a press release reporting its fourth quarter and full year 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 FINANCIAL STATEMENTS AND EXHIBITS

Exhibit Number	Description
Exhibit 99.1	Press Release dated February 7, 2008

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 7, 2008	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 7, 2008

5

EX-99.1

Exhibit 99.1

NEWS BULLETIN

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

FOR IMMEDIATE RELEASE
THURSDAY, FEBRUARY 7, 2008

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.rockwood@mdch.com

M.D.C. HOLDINGS ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2007 RESULTS

2007 FOURTH QUARTER

• Cash flow from operations of $257.0 million

• Quarter-end cash of $1.00 billion; no borrowings on homebuilding line of credit

• Ending cash and available borrowing capacity of $2.25 billion

• Net loss of $281.1 million and diluted loss per share of $6.14; includes deferred tax asset valuation allowance of $160.0 million

• Pre-tax loss of $190.4 million; includes asset impairments and project cost write-offs of $183.0 million and net land sale losses of $13.8 million

• Total revenue of $784.8 million; $1.34 billion in 2006

• Closed 2,200 homes at an average selling price of $325,100

• Net orders for 748 homes with an estimated value of $187.0 million

2007 FULL YEAR

• Cash flow from operations of $592.6 million

• Net loss of $636.9 million and diluted loss per share of $13.94

• Pre-tax loss of $756.5 million; includes asset impairments and project cost write-offs of $750.0 million and net land sale losses of $9.4 million

• Total revenue of $2.93 billion; $4.80 billion in 2006

• Closed 8,195 homes at an average selling price of $337,500

• Net orders for 6,504 homes with an estimated value of $2.11 billion

• 2007 Form 10-K scheduled to be filed today

     DENVER, Thursday, February 7, 2008 — M.D.C. Holdings, Inc. (NYSE: MDC) today announced a net loss for the quarter ended December 31, 2007 of $281.1 million, or $6.14 per

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M.D.C. HOLDINGS, INC.

diluted share, which included pre-tax charges of $175.2 million for asset impairments and $7.8 million for write-offs of deposits and pre-acquisition costs associated with land option contracts the Company does not intend to pursue. The loss also included net pre-tax losses on land sales of $13.8 million and an after-tax valuation allowance of $160.0 million related to MDC’s deferred tax assets. Net loss for the fourth quarter of 2006 was $6.4 million, or $0.14 per diluted share, including pre-tax charges of $91.3 million for asset impairments and $6.7 million for write-offs of option deposits and pre-acquisition costs. Total revenue for the fourth quarter of 2007 was $784.8 million, compared with revenue of $1.34 billion for the same period in 2006.

     The net loss for the year ended December 31, 2007 was $636.9 million, or $13.94 per diluted share, which included pre-tax charges of $726.6 million for asset impairments and $23.4 million for write-offs of deposits and pre-acquisition costs. The loss also included net pre-tax losses on land sales of $9.4 million and the after-tax valuation allowance of $160.0 million related to MDC’s deferred tax assets. Net income for the 2006 full year was $214.3 million, or $4.66 per diluted share, including pre-tax charges of $112.0 million for asset impairments and $29.7 million for write-offs of option deposits and pre-acquisition costs. Total revenue for the 2007 full year was $2.93 billion, compared with revenue of $4.80 billion for the same period in 2006.

     Larry A. Mizel, MDC’s chairman and chief executive officer, stated, “After generating over $590 million in operating cash flow during 2007, including almost $260 million in the fourth quarter, we ended the year with more than $1.0 billion in cash on hand. With no borrowings outstanding on our $1.25 billion line of credit, we expanded our year-end cash and available borrowing capacity year-over-year by 30% to nearly $2.25 billion. Earlier this week, we further increased our cash balances when we received a $90 million tax refund from the IRS for the carryback of our 2007 net operating loss.”

     Mizel continued, “Our strong financial position at the end of 2007 is a result of our high level of preparedness at the onset of this downturn, combined with our continuing efforts to improve our balance sheet. During the fourth quarter alone, we reduced our supply of lots owned by 20%, which contributed significantly to the 9,000 lot decrease we achieved during the year. Throughout 2007, we worked diligently to conserve our cash by tightening controls on land development expenditures, working with our suppliers and subcontractors to reduce the direct costs of home construction and shrinking our overhead to more closely match current levels of demand. These steps should help us to maximize cash flow going forward as we continue to look for opportunities to invest our substantial cash and make use of our available borrowing capacity.”

Homebuilding Results

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M.D.C. HOLDINGS, INC.

     Homebuilding loss before taxes for the quarter and year ended December 31, 2007 was $195.9 million and $764.2 million, respectively, compared with a loss before taxes of $14.3 million and income before taxes of $371.4 million for the same periods in 2006. The pre-tax differences were driven in large part by the asset impairment charges and net land sale losses discussed above, as well as significant declines in home closings, average selling prices and home gross margins from the 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 expenses (“SG&A”).

     The Company closed 2,200 homes and produced home gross margins of 11.7% in the 2007 fourth quarter, compared with 3,594 home closings and home gross margins of 16.6% for the same period in 2006. For the year ended December 31, 2007, the Company closed 8,195 homes and produced home gross margins of 13.9%, compared with 13,123 home closings and home gross margins of 22.2% for the year ended December 31, 2006. Average selling prices were $325,100 and $337,500, respectively, for the quarter and year ended December 31, 2007, down $35,000 and $16,900 from the same periods in 2006. Homebuilding SG&A decreased to $95.4 million and $425.5 million, respectively, for the three months and year ended December 31, 2007, compared with $141.7 million and $560.1 million for the same periods in the prior year.

     Paris G. Reece III, MDC’s executive vice president and chief financial officer, said, “During the 2007 fourth quarter, we recognized $175 million in inventory impairments, including $27 million on land held for sale, with respect to almost 4,900 lots in 153 subdivisions. Land inventory was impaired by $126 million and work-in-process inventory was impaired by $49 million. The year-end book value of the impaired subdivisions after the impairments was $397 million, consisting of $126 million of land and $271 million of work-in-process. As has been the case in each of the last four quarters, the impairments this quarter primarily occurred in our West homebuilding segment, with more than 75% applicable to subdivisions in our Arizona, Nevada and California markets. Over the last six quarters, we have impaired approximately 60% of the 15,000 lots we owned at the end of our 2007 fourth quarter.”

     Reece continued, “Of the $727 million impairment charge we took during 2007, $556 million related to our land inventory, which decreased by almost 65% year-over-year to $554 million at December 31, 2007. In our West segment, where 80% of the impairments in 2007 occurred, land inventory decreased by more than 75% during the year. California’s land balance alone dropped by more than 90% in 2007, and most of the remaining $35 million of land is being held for sale to third-party developers or investors.”

     Reece concluded, “We were successful in reducing our general and administrative expenses year-over-year in the 2007 fourth quarter and full year by 36% and 27%, respectively, reflecting our continued efforts to right-size our homebuilding operations in view of current market conditions. We have cut our operating divisions by approximately half from their peak

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M.D.C. HOLDINGS, INC.

levels two years ago, and we will continue to assess the need for further adjustments as we move through 2008.”

Financial Services and Other Results

     Income before taxes from the Company’s Financial Services and Other segment for the quarter and year ended December 31, 2007 was $6.3 million and $23.1 million, respectively, compared with $10.0 million and $45.2 million for the same periods in the previous year. The decreases in both 2007 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 conjunction with builder home closings. The lower gains were offset partially by year-over-year reductions in financial services general and administrative expenses for both periods.

Home Orders and Backlog

     MDC received orders, net of cancellations, for 748 homes with an estimated sales value of $187.0 million during the 2007 fourth quarter, compared with net orders for 1,571 homes with an estimated sales value of $515.0 million during the same period in 2006. For the year ended December 31, 2007, the Company received net orders for 6,504 homes with a sales value of $2.11 billion, compared with orders for 10,229 homes with a sales value of $3.47 billion for the year ended December 31, 2006. During the 2007 fourth quarter and full year, the Company’s order cancellation rates were 65% and 48%, respectively, compared with rates of 57% and 43% experienced during the same periods in 2006. The Company ended the fourth quarter of 2007 with a backlog of 1,947 homes with an estimated sales value of $650.0 million, compared with a backlog of 3,638 homes with an estimated sales value of $1.30 billion at December 31, 2006.

     Since 1972, MDC has built and financed the American dream for more than 150,000 families. MDC’s commitment to customer satisfaction, quality and value is reflected in each home it builds. As one of the largest homebuilders in the United States, the Company has homebuilding divisions across the country, including Colorado, Salt Lake City, Las Vegas, Phoenix, Tucson, California, Chicago, Northern Virginia, Maryland, Philadelphia/Delaware Valley and Jacksonville. The Company also provides mortgage financing, insurance and title services, primarily for MDC homebuyers, through its wholly owned subsidiaries, HomeAmerican Mortgage Corporation, American Home Insurance Agency and American Home Title and Escrow, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol “MDC.” For more information, visit http://www.richmondamerican.com.

Forward-Looking Statements

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     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, mortgage lending programs and the availability of credit; (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) terrorist acts and other acts of war; and (14) 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, 2007, 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 Ended						Year Ended
	December 31,						December 31,
	2007			2006			2007			2006
REVENUE
Home sales revenue	$	715,244		$	1,294,140		$	2,765,981		$	4,650,556
Land sales revenue		37,979			15,799			50,130			34,611
Other revenue		31,533			33,474			117,138			116,575
Total Revenue		784,756			1,343,413			2,933,249			4,801,742
COSTS AND EXPENSES
Home cost of sales		631,262			1,079,275			2,380,427			3,619,656
Land cost of sales		51,789			15,367			59,529			33,491
Asset impairments		175,199			91,252			726,621			112,027
Marketing expenses		29,944			36,957			117,088			128,856
Commission expenses		26,421			44,481			97,951			151,108
General and administrative expenses		59,486			92,284			306,715			418,879
Related party expenses		1,096			1,796			1,382			4,588
Total Costs and Expenses		975,197			1,361,412			3,689,713			4,468,605
(Loss) income before income taxes		(190,441	)		(17,999	)		(756,464	)		333,137
(Provision for) benefit from income taxes		(90,651	)		11,634			119,524			(118,884	)
NET (LOSS) INCOME	$	(281,092	)	$	(6,365	)	$	(636,940	)	$	214,253
(LOSS) EARNINGS PER SHARE
Basic	$	(6.14	)	$	(0.14	)	$	(13.94	)	$	4.77
Diluted	$	(6.14	)	$	(0.14	)	$	(13.94	)	$	4.66
WEIGHTED-AVERAGE SHARES
Basic		45,772			45,073			45,687			44,952
Diluted		45,772			45,073			45,687			45,971
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,			December 31,
	2007			2006
ASSETS
Cash and cash equivalents	$	1,004,763		$	507,947
Restricted cash		1,898			2,641
Receivables
Home sales receivables		33,647			128,614
Income taxes receivable, net		36,988			—
Other receivables		16,796			15,322
Mortgage loans held in inventory, net		100,144			212,903
Inventories
Housing completed or under construction		902,221			1,178,671
Land and land under development		554,336			1,575,158
Property and equipment, net		44,368			44,606
Deferred income taxes, net		160,565			124,880
Related party assets		28,627			—
Prepaid expenses and other assets, net		71,884			119,133
Total Assets	$	2,956,237		$	3,909,875
LIABILITIES
Accounts payable	$	71,932		$	171,005
Accrued liabilities		339,353			418,953
Income taxes payable		—			28,485
Related party liabilities		1,701			2,401
Homebuilding line of credit		—			—
Mortgage line of credit		70,147			130,467
Senior notes, net		997,091			996,682
Total Liabilities		1,480,224			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; 46,084,000 and 46,053,000 issued and outstanding, respectively, at December 31, 2007 and 45,179,000 and 45,165,000 issued and outstanding, respectively, at December 31, 2006		461			452
Additional paid-in capital		757,039			760,831
Retained earnings		719,841			1,402,261
Accumulated other comprehensive loss		(669	)		(1,003	)
Treasury stock, at cost; 31,000 and 14,000 shares, respectively, at December 31, 2007 and December 31, 2006		(659	)		(659	)
Total Stockholders’ Equity		1,476,013			2,161,882
Total Liabilities and Stockholders’ Equity	$	2,956,237		$	3,909,875

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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,
	2007			2006			2007			2006
REVENUE
Homebuilding
West	$	448,754		$	809,332		$	1,725,766		$	2,871,040
Mountain		131,471			211,382			549,771			730,489
East		113,200			183,743			318,723			628,508
Other Homebuilding		69,432			119,329			253,627			493,628
Total Homebuilding		762,857			1,323,786			2,847,887			4,723,665
Financial Services and Other		15,672			29,085			63,508			103,243
Corporate		11,329			1,113			41,839			1,788
Inter-company Adjustments		(5,102	)		(10,571	)		(19,985	)		(26,954	)
Consolidated	$	784,756		$	1,343,413		$	2,933,249		$	4,801,742
(LOSS) INCOME BEFORE INCOME TAXES
Homebuilding
West	$	(159,227	)	$	(38,688	)	$	(621,774	)	$	235,954
Mountain		(14,613	)		18,307			(11,395	)		43,490
East		(11,580	)		19,015			(38,748	)		104,706
Other Homebuilding		(10,475	)		(12,946	)		(92,251	)		(12,709	)
Total Homebuilding		(195,895	)		(14,312	)		(764,168	)		371,441
Financial Services and Other		6,286			10,025			23,062			45,186
Corporate		(832	)		(13,712	)		(15,358	)		(83,490	)
Consolidated	$	(190,441	)	$	(17,999	)	$	(756,464	)	$	333,137
ASSET IMPAIRMENTS
West	$	136,372		$	75,561		$	581,494		$	90,804
Mountain		13,397			1,265			30,106			1,892
East		17,386			6,879			42,055			8,236
Other Homebuilding		8,044			7,547			72,966			11,095
Total Homebuilding	$	175,199		$	91,252		$	726,621		$	112,027

	December 31,			December 31,
	2007			2006
TOTAL ASSETS
West	$	747,835		$	1,869,442
Mountain		474,203			535,554
East		250,658			333,902
Other Homebuilding		125,003			266,326
Total Homebuilding		1,597,699			3,005,224
Financial Services and Other		174,617			284,791
Corporate		1,229,178			657,917
Inter-company		(45,257	)		(38,057	)
Consolidated	$	2,956,237		$	3,909,875

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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
	2007			2006			Amount			%			2007			2006			Amount			%
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Operations	$	39,036		$	60,309		$	(21,273	)		-35	%	$	210,455		$	280,128		$	(69,673	)		-25	%
Financial Services and Other Operations	$	9,385		$	19,018		$	(9,633	)		-51	%	$	40,445		$	58,059		$	(17,614	)		-30	%
Corporate (1)	$	12,161		$	14,753		$	(2,592	)		-18	%	$	57,197		$	85,279		$	(28,082	)		-33	%
SG&A as a % of Home Sales Revenue
Homebuilding Operations		13.3	%		10.9	%		2.4	%					15.4	%		12.0	%		3.4	%
Corporate (1)		1.7	%		1.1	%		0.6	%					2.1	%		1.8	%		0.3	%
Depreciation and Amortization .	$	13,348		$	17,493		$	(4,145	)		-24	%	$	47,342		$	59,030		$	(11,688	)		-20	%
Home Gross Margins (2)		11.7	%		16.6	%		-4.9	%					13.9	%		22.2	%		-8.3	%
Cash Provided by Operating Activities .	$	257,015		$	404,391		$	(147,376	)				$	592,583		$	363,048		$	229,535
Cash Provided by (Used in) Investing Activities .	$	6,915		$	(2,997	)	$	9,912					$	(1,447	)	$	(10,221	)	$	8,774
Cash Provided by (Used in) Financing Activities .	$	11,354		$	(26,291	)	$	37,645					$	(94,320	)	$	(59,411	)	$	(34,909	)
Ending Unrestricted Cash and Available Borrowing Capacity	$	2,246,696		$	1,736,054		$	510,642			29	%
Corporate and Homebuilding Interest
Interest Capitalized During the Period	$	14,471		$	14,148		$	323			2	%	$	57,791		$	58,141		$	(350	)		-1	%
Interest Included in Home Cost of Sales for the Period	$	14,988		$	13,638		$	1,350			10	%	$	54,959		$	49,485		$	5,474			11	%
Interest in Home Cost of Sales as a % of Home Sales Revenue		2.1	%		1.1	%		1.0	%					2.0	%		1.1	%		0.9	%
Interest Capitalized in Inventories at End of Period	$	53,487		$	50,655		$	2,832			6	%

(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. During the three and twelve months ended December 31, 2007, we closed homes on lots for which we had previously recorded $65.0 million and $121.6 million, respectively, of asset impairments. During both the three and twelve months ended December 31, 2006, we closed homes on lots for which we had previously recorded $2.9 million of asset impairments.

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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
	2007			2006			Amount			%			2007			2006			Amount			%
HOMEAMERICAN OPERATING ACTIVITIES
Principal Amount of Mortgage Loans Originated	$	303,179		$	691,810		$	(388,631	)		-56	%	$	1,233,948		$	2,363,906		$	(1,129,958	)		-48	%
Principal Amount of Mortgage Loans Brokered	$	146,993		$	162,783		$	(15,790	)		-10	%	$	511,806		$	701,498		$	(189,692	)		-27	%
Capture Rate		54	%		62	%		-8	%					55	%		59	%		-4	%
Including Brokered Loans		75	%		80	%		-5	%					74	%		76	%		-2	%
Mortgage Products (% of Loans Originated)
Fixed Rate		94	%		63	%		31	%					82	%		53	%		29	%
Adjustable Rate — Interest Only		4	%		35	%		-31	%					16	%		40	%		-24	%
Adjustable Rate — Other		2	%		2	%		0	%					2	%		7	%		-5	%
Prime Loans (3)		79	%		49	%		30	%					78	%		57	%		21	%
Alt-A Loans (4)		0	%		46	%		-46	%					10	%		37	%		-27	%
Government Loans (5)		21	%		4	%		17	%					12	%		4	%		8	%
Sub-Prime Loans (6)		0	%		1	%		-1	%					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)

	December 31,		December 31,		December 31,
	2007		2006		2005
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Homes Under Construction — Final		515		476		258
Unsold Homes Under Construction — Frame		656		573		520
Unsold Homes Under Construction — Foundation		229		400		353
Total Unsold Homes Under Construction		1,400		1,449		1,131
Sold Homes Under Construction		1,350		2,430		5,093
Model Homes		730		757		667
Homes Completed or Under Construction		3,480		4,636		6,891
LOTS OWNED (excluding homes completed or under construction)
Arizona		2,969		6,368		7,385
California		1,491		2,802		3,367
Nevada		1,549		2,747		4,055
West		6,009		11,917		14,807
Colorado		2,992		3,479		3,639
Utah		863		1,185		964
Mountain		3,855		4,664		4,603
Maryland		302		528		679
Virginia		369		643		783
East		671		1,171		1,462
Delaware Valley		151		265		471
Florida		638		1,093		1,201
Illinois		191		287		430
Texas		—		13		471
Other Homebuilding		980		1,658		2,573
Total		11,515		19,410		23,445
LOTS UNDER OPTION
Arizona		512		744		3,650
California		157		387		2,005
Nevada		4		250		1,400
West		673		1,381		7,055
Colorado		262		801		2,198
Utah		—		91		418
Mountain		262		892		2,616
Maryland		558		960		1,173
Virginia		1,311		2,381		3,224
East		1,869		3,341		4,397
Delaware Valley		327		683		1,283
Florida		484		1,800		3,202
Illinois		—		—		186
Texas		—		—		80
Other Homebuilding		811		2,483		4,751
Total		3,615		8,097		18,819
Non-Refundable Option Deposits
Cash	$	6,292	$	20,228	$	48,157
Letters of Credit		6,547		14,224		23,142
Total Non-Refundable Option Deposits	$	12,839	$	34,452	$	71,299

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

	Three Months Ended										Year Ended
	December 31,				Change						December 31,				Change
	2007		2006		Amount			%			2007		2006		Amount			%
HOMES CLOSED (UNITS)
Arizona		804		1,016		(212	)		-21	%		2,801		3,353		(552	)		-16	%
California		305		536		(231	)		-43	%		1,136		1,788		(652	)		-36	%
Nevada		262		647		(385	)		-60	%		1,290		2,756		(1,466	)		-53	%
West		1,371		2,199		(828	)		-38	%		5,227		7,897		(2,670	)		-34	%
Colorado		235		309		(74	)		-24	%		818		1,463		(645	)		-44	%
Utah		145		342		(197	)		-58	%		713		922		(209	)		-23	%
Mountain		380		651		(271	)		-42	%		1,531		2,385		(854	)		-36	%
Maryland		107		154		(47	)		-31	%		288		444		(156	)		-35	%
Virginia		128		209		(81	)		-39	%		344		707		(363	)		-51	%
East		235		363		(128	)		-35	%		632		1,151		(519	)		-45	%
Delaware Valley		62		78		(16	)		-21	%		178		200		(22	)		-11	%
Florida		115		219		(104	)		-47	%		496		921		(425	)		-46	%
Illinois		37		55		(18	)		-33	%		105		174		(69	)		-40	%
Texas		—		29		(29	)		-100	%		26		395		(369	)		-93	%
Other Homebuilding		214		381		(167	)		-44	%		805		1,690		(885	)		-52	%
Total		2,200		3,594		(1,394	)		-39	%		8,195		13,123		(4,928	)		-38	%
AVERAGE SELLING PRICES PER HOME CLOSED
Arizona	$	230.1	$	273.9	$	(43.8	)		-16	%	$	247.4	$	294.6	$	(47.2	)		-16	%
California		494.1		596.0		(101.9	)		-17	%		516.5		558.7		(42.2	)		-8	%
Colorado		348.3		332.7		15.6			5	%		346.3		308.7		37.6			12	%
Delaware Valley		441.4		420.1		21.3			5	%		448.8		405.7		43.1			11	%
Florida		249.4		267.7		(18.3	)		-7	%		261.5		284.8		(23.3	)		-8	%
Illinois		355.2		367.3		(12.1	)		-3	%		372.4		367.5		4.9			1	%
Maryland		504.8		528.3		(23.5	)		-4	%		515.2		558.0		(42.8	)		-8	%
Nevada		275.5		307.6		(32.1	)		-10	%		296.2		317.5		(21.3	)		-7	%
Texas		N/A		151.0		N/A			N/A			129.6		165.9		(36.3	)		-22	%
Utah		338.6		320.8		17.8			6	%		355.5		303.3		52.2			17	%
Virginia		461.7		491.2		(29.5	)		-6	%		480.4		536.3		(55.9	)		-10	%
Company Average	$	325.1	$	360.1	$	(35.0	)		-10	%	$	337.5	$	354.4	$	(16.9	)		-5	%

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

	Three Months Ended												Year Ended
	December 31,						Change						December 31,						Change
	2007			2006			Amount			%			2007			2006			Amount			%
ORDERS FOR HOMES, NET (UNITS)
Arizona		139			480			(341	)		-71	%		1,889			2,758			(869	)		-32	%
California		63			241			(178	)		-74	%		912			1,450			(538	)		-37	%
Nevada		298			314			(16	)		-5	%		1,282			2,048			(766	)		-37	%
West		500			1,035			(535	)		-52	%		4,083			6,256			(2,173	)		-35	%
Colorado		101			201			(100	)		-50	%		778			1,139			(361	)		-32	%
Utah		36			133			(97	)		-73	%		426			1,049			(623	)		-59	%
Mountain		137			334			(197	)		-59	%		1,204			2,188			(984	)		-45	%
Maryland		—			60			(60	)		-100	%		227			380			(153	)		-40	%
Virginia		33			79			(46	)		-58	%		308			462			(154	)		-33	%
East		33			139			(106	)		-76	%		535			842			(307	)		-36	%
Delaware Valley		12			28			(16	)		-57	%		116			138			(22	)		-16	%
Florida		47			(11	)		58			N/A			424			519			(95	)		-18	%
Illinois		19			35			(16	)		-46	%		128			117			11			9	%
Texas		—			11			(11	)		-100	%		14			169			(155	)		-92	%
Other Homebuilding		78			63			15			24	%		682			943			(261	)		-28	%
Total		748			1,571			(823	)		-52	%		6,504			10,229			(3,725	)		-36	%
Estimated Value of Orders for Homes, net	$	187,000		$	515,000		$	(328,000	)		-64	%	$	2,107,000		$	3,467,000		$	(1,360,000	)		-39	%
Estimated Average Selling Price of Orders for Homes, net	$	250.0		$	327.8		$	(77.8	)		-24	%	$	324.0		$	338.9		$	(14.9	)		-4	%
Cancellation Rate (7)		65	%		57	%		8	%					48	%		43	%		5	%

⁽⁷⁾ 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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M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

	December 31,		December 31,		December 31,
	2007		2006		2005
BACKLOG (UNITS)
Arizona		592		1,504		2,099
California		203		427		765
Nevada		307		315		1,023
West		1,102		2,246		3,887
Colorado		213		253		577
Utah		178		465		338
Mountain		391		718		915
Maryland		126		187		251
Virginia		100		136		381
East		226		323		632
Delaware Valley		57		119		181
Florida		125		197		599
Illinois		46		23		80
Texas		—		12		238
Other Homebuilding		228		351		1,098
Total		1,947		3,638		6,532
Backlog Estimated Sales Value	$	650,000	$	1,300,000	$	2,440,000
Estimated Average Selling Price of Homes in Backlog	$	333.8	$	357.3	$	373.5
ACTIVE SUBDIVISIONS
Arizona		66		67		54
California		41		45		34
Nevada		39		41		43
West		146		153		131
Colorado		47		47		57
Utah		23		22		18
Mountain		70		69		75
Maryland		15		19		11
Virginia		18		19		20
East		33		38		31
Delaware Valley		4		8		7
Florida		20		30		19
Illinois		5		6		8
Texas		—		2		21
Other Homebuilding		29		46		55
Total		278		306		292
Average for Quarter Ended		287		299		287

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

	December 31,			December 31,			December 31,
	2007			2006			2005
CORPORATE AND HOMEBUILDING DEBT-TO-CAPITAL, NET OF CASH
Total Debt	$	1,067,238		$	1,127,149		$	1,152,829
Less Mortgage Line of Credit		(70,147	)		(130,467	)		(156,532	)
Total Corporate and Homebuilding Debt		997,091			996,682			996,297
Less Cash (Including Restricted Cash)		(1,006,661	)		(510,588	)		(221,273	)
Total Corporate and Homebuilding Debt, Net of Cash		(9,570	)		486,094			775,024
Stockholders’ Equity		1,476,013			2,161,882			1,952,109
Total Corporate and Homebuilding Capital, Net of Cash	$	1,466,443		$	2,647,976		$	2,727,133
Ratio of Corporate and Homebuilding Debt to Capital, Net of Cash		(0.01	)		0.18			0.28

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 typically liquidated within 60 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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