EX-12.1 3 d578530dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

M.D.C. HOLDINGS, INC.

RATIO OF (LOSS) EARNINGS TO FIXED CHARGES

 

     Three Months  Ended
June 30,
2013		     Six Months  Ended
June 30,
2013		    

 

Year Ended December 31,

  
         2012     2011     2010     2009     2008  

Earnings (Loss)

    $ 52,154      $ 86,004      $ 95,914      $ (62,329 )    $ (5,268 )    $ (28,481 )    $ (299,317 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

    $ 15,898      $ 30,810      $ 45,200      $ 65,439      $ 75,440      $ 67,954      $ 68,570   

(Loss) Earnings to Fixed Charges

    $ 3.28      $ 2.79      $ 2.12      $ –        $ –        $ –        $ –     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (Loss):

               

Income (Loss) before income taxes

    $ 38,012      $ 60,598      $ 61,115      $ (107,472 )    $ (70,601 )    $ (107,335 )    $ (382,135 ) 

Add: Fixed Charges

      15,898        30,810        45,200        65,439        75,440        67,954        68,570   

Less: Capitalized Interest

      (14,436 )      (27,958 )      (41,507 )      (41,448 )      (33,919 )      (19,810 )      (39,852 ) 

Add: Amortization of Previously Capitalized Interest

      12,680        22,554        31,106        21,152        23,812        30,710        54,100   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total (Loss) Earnings

    $ 52,154      $ 86,004      $ 95,914      $ (62,329 )    $ (5,268 )    $ (28,481 )    $ (299,317 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges:

               

Homebuilding and corporate interest expense (1)

    $ 909      $ 1,726      $ 808      $ 20,842      $ 38,157      $ 44,436      $ 24,027   

Mortgage lending interest expense

      72        165        607        442        466        451        329   

Interest component of rent expense

      481        961        2,278        2,707        2,898        3,257        4,362   

Capitalized interest

      14,436        27,958        41,507        41,448        33,919        19,810        39,852   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Charges

    $ 15,898      $ 30,810      $ 45,200      $ 65,439      $ 75,440      $ 67,954      $ 68,570   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Includes the amortization and expensing of debt expenses that were not capitalized during period

 

In computing the ratio of earnings to fixed charges, fixed charges consist of homebuilding and corporate interest expense which includes the amortization and expensing of debt expenses that were not capitalized during period, mortgage lending interest expense, interest component of rent expense, and capitalized interest. Earnings are computed by adding fixed charges (except capitalized interest) and amortization of previously capitalized interest during the period to (loss) earnings before income taxes. For the years ended December 31, 2011, 2010, 2009 and 2008, the Company generated losses which exceeded fixed charges of $127.8 million, $80.7 million, $96.4 million and $367.9 million, respectively.