Exhibit 99.1

M.D.C. HOLDINGS, INC.

News Release

M.D.C. HOLDINGS ANNOUNCES 2013 THIRD QUARTER RESULTS

DENVER, COLORADO, Tuesday, October 29, 2013. M.D.C. Holdings, Inc. (NYSE: MDC) announced results for the quarter ended September 30, 2013.

2013 Third Quarter Highlights and Comparisons to 2012 Third Quarter

● Net income of $36.3 million, or $0.73 per diluted share vs. net income of $20.1 million, or $0.41 per diluted share

● Pretax income of $34.9 million, up 79% from $19.5 million

o Homebuilding pretax income of $26.7 million vs. $10.2 million

o Pretax operating margin of 7.8%, up 200 basis points from 5.8%

● Home sale revenues of $433.7 million, up 35%

o Homes delivered of 1,257, up 21%

o Average selling price of $345,000, up 12%

o Gross margin from home sales of 18.1% vs. 15.5%, up 260 basis points

● SG&A expenses as a percentage of home sale revenues of 13.3% vs. 14.0%, a 70 basis point improvement

● Monthly net home order absorption pace of 2.3 homes per active community, up 14%

o Net new orders of 924 homes, down 8%; dollar value up 2% to $325.5 million

● Backlog dollar value of $676.8 million, up 1%

o Backlog units of 1,762, down 12%

● Acquired 2,117 lots in 55 communities, including 31 new communities

o Total land acquisition spend of $162.0 million

● Cash and investments of $797.5 million at September 30, 2013

Larry A. Mizel, MDC’s Chairman and Chief Executive Officer, stated, “I am pleased to announce we earned a third quarter profit of $0.73 per diluted share, our seventh consecutive quarterly operating profit, with net income improving by $16.1 million over the prior year and our pretax operating margin increasing by 200 basis points year-over-year. These improvements were again driven by the performance of our homebuilding business, on the strength of both volume and gross margin gains.”

Mr. Mizel continued, “The recent increase in mortgage interest rates from historically low levels, combined with economic uncertainty created by the government shutdown, debt ceiling debates, and the potential for tapering of federal stimulus, has temporarily dampened housing demand. In spite of these factors, we increased the pace of our new home sales during the 2013 third quarter as our monthly absorption rate increased by 14% year-over-year to 2.3 net new home orders per active community. Our active community count decreased both year-over-year and sequentially due to the selling out of communities quicker than anticipated and delays encountered with various municipalities, all of which contributed to lower net new orders for the quarter. However, based on our land acquisition activity over the past year, we are confident that our active community count will start growing again before the spring selling season.”

1

M.D.C. HOLDINGS, INC.

Mr. Mizel concluded, “We continue to believe that a solid housing recovery is ongoing, supported by attractive affordability levels and a low inventory of available-for-sale housing. Our confidence in the market is evidenced by our continued land acquisition activity in the 2013 third quarter, as we purchased approximately 2,100 lots and ended the quarter with more than 15,800 lots owned and controlled, an increase of 52% year-over-year. We believe that this lot supply can provide us the opportunity to drive meaningful gains in both closings volume and profitability for 2014. At the same time, we have balanced our land acquisition efforts with continued discipline in our approach to managing our balance sheet, ending the quarter with nearly $800 million in cash and investments, maintaining an industry leading net leverage ratio, and adhering to a conservative land supply strategy. We believe this approach is valuable for our Company, not only in providing us the liquidity we need to drive growth and take advantage of market opportunities, but also in protecting us in the event that the housing market experiences more volatility.”

Homebuilding

Home sale revenues for the 2013 third quarter increased 35% to $433.7 million compared to $320.6 million for the prior year period. The increase in revenues resulted from a 21% increase in homes delivered to 1,257 homes as compared to 1,039 in the prior year and a 12% increase in our average selling price to $345,000. The increase in average selling price was largely due to price appreciation and lower incentives in many of our markets.

Gross margin from home sales for the 2013 third quarter increased to 18.1% from 15.5% for the year-earlier period. The increase was attributable to our continued focus on increasing pricing and decreasing incentives as its markets improved since the start of 2012. On a sequential basis, our 2013 third quarter gross margin from home sales was flat as compared to 18.1% for the 2013 second quarter. Excluding inventory impairments, warranty accrual adjustments and previously capitalized interest in cost of sales, adjusted gross margin from home sales was 21.8%* for the 2013 third quarter, compared to 18.2%* for the 2012 third quarter and 21.3%* for the 2013 second quarter.

SG&A expenses as a percentage of home sales revenues decreased by 70 basis points to 13.3% for the 2013 third quarter versus 14.0% for the same period in 2012. The improvement was the result of operating leverage created by a year-over-year increase in home sale revenues, which outpaced a year-over-year increase in our absolute level of SG&A expenses, and was slightly offset by a year-over-year increase in legal expenses driven by various significant legal recoveries in the 2012 third quarter which did not recur in the 2013 third quarter.

Net new orders for the 2013 third quarter decreased 8% to 924 homes, compared to 1,008 homes during the same period in 2012, largely due to a 19% decrease in our average active community count. However, our monthly sales absorption rate for the 2013 third quarter rose 14% to 2.3 per community, compared to 2.0 per community for the 2012 third quarter. Our cancellation rate for the 2013 third quarter was 26% versus 27% in the prior year third quarter.

2

M.D.C. HOLDINGS, INC.

We ended the 2013 third quarter with 1,762 homes in backlog, with an estimated sales value of $676.8 million, compared with a backlog of 1,997 homes with an estimated sales value of $667.0 million at September 30, 2012.

At September 30, 2013, we had 134 active subdivisions, down 19% from September 30, 2012. As a result of the significant increase in our land acquisition activity in the fourth quarter of 2012 and the first nine months of 2013, our lots owned and under option increased by 52% year-over-year to over 15,800 lots.

Financial Services

Income before taxes from our financial services operations for the 2013 third quarter was $8.2 million, compared to $9.3 million for the 2012 third quarter. The decrease in pretax income primarily reflected a $1.5 million decrease in pretax income for our mortgage operations to $5.9 million in the 2013 third quarter, compared to $7.4 million in the 2012 third quarter, despite higher loan volumes. The decrease in our mortgage profitability was mostly driven by lower per unit origination income and gains on loans locked and sold compared to a year ago resulting primarily from a more competitive mortgage market and higher interest rates. Additionally, our mortgage operations experienced increases in overhead and loan loss reserve expenses.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American dream for more than 175,000 homebuyers. MDC's commitment to customer satisfaction, quality and value is reflected in each home its subsidiaries build. MDC is one of the largest homebuilders in the United States. Its subsidiaries have homebuilding operations across the country, including the metropolitan areas of Denver, Colorado Springs, Salt Lake City, Las Vegas, Phoenix, Tucson, Riverside-San Bernardino, Los Angeles, San Francisco Bay Area, Washington D.C., Baltimore, Philadelphia, Jacksonville, Orlando, South Florida and Seattle. The Company's subsidiaries also provide mortgage financing, insurance and title services, primarily for Richmond American homebuyers, through HomeAmerican Mortgage Corporation, American Home Insurance Agency, Inc. and American Home Title and Escrow Company, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock Exchange under the symbol "MDC." For more information, visit www.mdcholdings.com.

3

M.D.C. HOLDINGS, INC.

Forward-Looking Statements

Certain statements in this release, including statements regarding our business, financial condition, results of operation, cash flows, strategies and prospects, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among other things, (1) general economic conditions, including changes in consumer confidence, inflation or deflation and employment levels; (2) changes in business conditions experienced by the Company, including cancellation rates, net home orders, home gross margins, land and home values and subdivision counts; (3) changes in interest rates, mortgage lending programs and the availability of credit; (4) changes in the market value of the Company’s investments in marketable securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements associated with HomeAmerican’s sale of mortgage loans (6) the relative stability of debt and equity markets; (7) competition; (8) the availability and cost of land and other raw materials used by the Company in its homebuilding operations; (9) the availability and cost of performance bonds and insurance covering risks associated with our business; (10) shortages and the cost of labor; (11) weather related slowdowns; (12) slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war; and (16) other factors over which the Company has little or no control. Additional information about the risks and uncertainties applicable to the Company's business is contained in the Company's Form 10-Q for the quarter ended September 30, 2013, 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 webcasts should be consulted.

* Please see "Reconciliation of Non-GAAP Financial Measures" on page 12.

Contact:           Robert N. Martin

Vice President of Finance and Corporate Controller

(720) 977-3431

bob.martin@mdch.com     

4

 M.D.C. HOLDINGS, INC.

Consolidated Statements of Operations and Comprehensive Income

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
	(Dollars in thousands, except per share amounts)
	(Unaudited)
Homebuilding:
Home sale revenues	$	433,693		$	320,647		$	1,165,768		$	761,857
Land sale revenues		25			15			1,832			3,420
Total home and land sale revenues		433,718			320,662			1,167,600			765,277
Home cost of sales		(354,889	)		(271,067	)		(956,892	)		(649,941	)
Land cost of sales		(35	)		(2	)		(1,470	)		(3,210	)
Inventory impairments		(350	)		-			(350	)		-
Total cost of sales		(355,274	)		(271,069	)		(958,712	)		(653,151	)
Gross margin		78,444			49,593			208,888			112,126
Selling, general and administrative expenses		(57,753	)		(44,788	)		(157,862	)		(118,135	)
Interest income		6,460			5,365			21,146			16,651
Interest expense		-			-			(1,726	)		(808	)
Other income (expense)		(488	)		16			853			592
Homebuilding pretax income		26,663			10,186			71,299			10,426
Financial Services:
Revenues		14,282			13,668			40,672			31,974
Expenses		(6,921	)		(5,155	)		(19,144	)		(13,459	)
Interest and other income		885			785			2,680			2,323
Financial services pretax income		8,246			9,298			24,208			20,838
Income before income taxes		34,909			19,484			95,507			31,264
Benefit from income taxes		1,342			642			188,169			1,765
Net income	$	36,251		$	20,126		$	283,676		$	33,029
Other comprehensive income related to available for sale securities, net of tax		1,960			5,095			2,500			10,945
Comprehensive income	$	38,211		$	25,221		$	286,176		$	43,974
Earnings per share:
Basic	$	0.73		$	0.41		$	5.76		$	0.69
Diluted	$	0.73		$	0.41		$	5.71		$	0.68
Weighted average common shares outstanding
Basic		48,492,588			47,761,307			48,438,154			47,499,429
Diluted		48,767,834			47,940,038			48,867,055			47,610,195
Dividends declared per share	$	-		$	0.25		$	-		$	0.75

5

M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets

	September 30,		December 31,
	2013		2012
	(Dollars in thousands, except
	per share amounts)
	(Unaudited)
ASSETS
Homebuilding:
Cash and cash equivalents	$	149,580	$	129,535
Marketable securities		578,441		519,465
Restricted cash		2,186		1,859
Trade and other receivables		29,488		28,163
Inventories:
Housing completed or under construction		634,159		512,949
Land and land under development		699,974		489,572
Total inventories		1,334,133		1,002,521
Property and equipment, net		31,608		33,125
Deferred tax asset, net of valuation allowance of $25,046 and $248,306 at September 30, 2013 and December 31, 2012, respectively		184,986		-
Metropolitan district bond securities (related party)		14,167		5,818
Other assets		50,937		38,959
Total homebuilding assets		2,375,526		1,759,445
Financial Services:
Cash and cash equivalents		47,706		30,560
Marketable securities		21,816		32,473
Mortgage loans held-for-sale, net		74,340		119,953
Other assets		8,693		3,010
Total financial services assets		152,555		185,996
Total Assets	$	2,528,081	$	1,945,441
LIABILITIES AND EQUITY
Homebuilding:
Accounts payable	$	20,030	$	73,055
Accrued liabilities		135,434		118,456
Senior notes, net		1,095,421		744,842
Total homebuilding liabilities		1,250,885		936,353
Financial Services:
Accounts payable and accrued liabilities		57,852		51,864
Mortgage repurchase facility		38,912		76,327
Total financial services liabilities		96,764		128,191
Total Liabilities		1,347,649		1,064,544
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; 48,874,476 and 48,698,757 issued and outstanding at September 30, 2013 and December 31, 2012, respectively		489		487
Additional paid-in-capital		910,218		896,861
Retained earnings (accumulated deficit)		262,387		(21,289	)
Accumulated other comprehensive income		7,338		4,838
Total Stockholders' Equity		1,180,432		880,897
Total Liabilities and Stockholders' Equity	$	2,528,081	$	1,945,441

6

M.D.C. HOLDINGS, INC.

Consolidated Statements of Cash Flows

	Three Months Ended						Nine Months Ended
	September 30, 2013						September 30, 2013
	2013			2012			2013			2012
	(Dollars in thousands)
	(Unaudited)
Operating Activities:
Net income	$	36,251		$	20,126		$	283,676		$	33,029
Adjustments to reconcile net income to net cash used in operating activities:
Stock-based compensation expense		3,026			4,907			8,240			12,628
Depreciation and amortization		888			1,052			2,960			3,708
Inventory impairments and write-offs of land option deposits		1,125			103			1,624			414
Amortization of discount (premiums) on marketable debt securities		(607	)		430			816			279
Deferred income tax benefit		(2,014)						(189,657	)		-
Net changes in assets and liabilities:
Restricted cash		493			176			(327	)		(1,417	)
Trade and other receivables		6,967			4,660			(1,599	)		(13,685	)
Mortgage loans held-for-sale		18,123			(20,961	)		45,613			(8,313	)
Housing completed or under construction		(65,078	)		(66,607	)		(121,165	)		(202,994	)
Land and land under development		(71,709	)		21,358			(210,218	)		112,406
Other assets		(6,924	)		(4,509	)		(15,307	)		(553	)
Accounts payable and accrued liabilities		(158	)		4,400			(30,516	)		14,043
Net cash used in operating activities		(79,617	)		(34,865	)		(225,860	)		(50,455	)
Investing Activities:
Purchases of marketable securities		(57,792	)		(104,379	)		(369,887	)		(397,167	)
Maturities of marketable securities		45,477			-			132,492			106,000
Sales of marketable securities		50,016			59,355			187,083			285,056
Purchases of property and equipment		(280	)		(290	)		(1,278	)		(958	)
Net cash used in investing activities		37,421			(45,314	)		(51,590	)		(7,069	)
Financing Activities:
Payments on mortgage repurchase facility		(60,201	)		(47,120	)		(195,760	)		(137,529	)
Advances on mortgage repurchase facility		50,265			61,348			158,345			135,715
Dividend payments		-			(12,056	)		-			(36,046	)
Proceeds from issuance of senior notes		-			-			346,938			-
Proceeds from exercise of stock options		-			15,680			5,118			15,820
Net cash provided by (used in) financing activities		(9,936	)		17,852			314,641			(22,040	)
Net increase (decrease) in cash and cash equivalents		(52,132	)		(62,327	)		37,191			(79,564	)
Cash and cash equivalents:
Beginning of period		249,418			326,124			160,095			343,361
End of period	$	197,286		$	263,797		$	197,286		$	263,797

7

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

New Home Deliveries

	Three Months Ended September 30,
	2013						2012						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		173	$	42,029	$	242.9		203	$	44,877	$	221.1		(15	%)		(6	%)		10	%
California		156		57,852		370.8		131		46,580		355.6		19	%		24	%		4	%
Nevada		187		53,017		283.5		178		37,679		211.7		5	%		41	%		34	%
Washington		110		35,558		323.3		63		18,894		299.9		75	%		88	%		8	%
West		626		188,456		301.0		575		148,030		257.4		9	%		27	%		17	%
Colorado		320		120,402		376.3		229		81,706		356.8		40	%		47	%		5	%
Utah		45		14,565		323.7		53		14,632		276.1		(15	%)		(0	%)		17	%
Mountain		365		134,967		369.8		282		96,338		341.6		29	%		40	%		8	%
Maryland		100		43,574		435.7		65		29,382		452.0		54	%		48	%		(4	%)
Virginia		90		46,866		520.7		67		34,069		508.5		34	%		38	%		2	%
Florida		76		19,830		260.9		50		12,828		256.6		52	%		55	%		2	%
East		266		110,270		414.5		182		76,279		419.1		46	%		45	%		(1	%)
Total		1,257	$	433,693	$	345.0		1,039	$	320,647	$	308.6		21	%		35	%		12	%

	Nine Months Ended September 30,
	2013						2012						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		443	$	105,662	$	238.5		418	$	89,920	$	215.1		6	%		18	%		11	%
California		469		168,640		359.6		319		107,768		337.8		47	%		56	%		6	%
Nevada		481		127,612		265.3		439		87,735		199.9		10	%		45	%		33	%
Washington		269		86,034		319.8		166		48,060		289.5		62	%		79	%		10	%
West		1,662		487,948		293.6		1,342		333,483		248.5		24	%		46	%		18	%
Colorado		933		347,210		372.1		539		192,923		357.9		73	%		80	%		4	%
Utah		171		53,097		310.5		151		41,874		277.3		13	%		27	%		12	%
Mountain		1,104		400,307		362.6		690		234,797		340.3		60	%		70	%		7	%
Maryland		237		100,685		424.8		156		67,953		435.6		52	%		48	%		(2	%)
Virginia		248		123,335		497.3		196		92,395		471.4		27	%		33	%		5	%
Florida		207		53,493		258.4		133		32,678		245.7		56	%		64	%		5	%
Illinois		-		-		-		2		551		275.5	N/M			N/M			N/M
East		692		277,513		401.0		487		193,577		397.5		42	%		43	%		1	%
Total		3,458	$	1,165,768	$	337.1		2,519	$	761,857	$	302.4		37	%		53	%		11	%

N/M = Not meaningful 

8

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Net New Orders

	Three Months Ended September 30,
	2013								2012								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate *
	(Dollars in thousands)
Arizona		185	$	49,009	$	264.9		3.11		136	$	30,441	$	223.8		2.96		36	%		61	%		18	%		5	%
California		91		37,654		413.8		2.81		173		56,507		326.6		3.15		(47	%)		(33	%)		27	%		(11	%)
Nevada		119		39,276		330.1		2.87		131		30,944		236.2		2.50		(9	%)		27	%		40	%		15	%
Washington		75		24,596		327.9		2.17		71		21,998		309.8		2.06		6	%		12	%		6	%		5	%
West		470		150,535		320.3		2.81		511		139,890		273.8		2.73		(8	%)		8	%		17	%		3	%
Colorado		251		101,385		403.9		2.23		251		84,575		337.0		1.81		0	%		20	%		20	%		23	%
Utah		28		8,481		302.9		2.17		66		20,220		306.4		1.33		(58	%)		(58	%)		(1	%)		63	%
Mountain		279		109,866		393.8		2.22		317		104,795		330.6		1.68		(12	%)		5	%		19	%		32	%
Maryland		50		23,459		469.2		0.94		39		18,031		462.3		0.72		28	%		30	%		1	%		31	%
Virginia		48		22,262		463.8		1.55		88		42,554		483.6		2.29		(45	%)		(48	%)		(4	%)		(32	%)
Florida		77		19,363		251.5		2.23		53		12,918		243.7		1.26		45	%		50	%		3	%		77	%
East		175		65,084		371.9		1.48		180		73,503		408.4		1.34		(3	%)		(11	%)		(9	%)		10	%
Total		924	$	325,485	$	352.3		2.25		1,008	$	318,188	$	315.7		1.98		(8	%)		2	%		12	%		14	%

	Nine Months Ended September 30,
	2013								2012								% Change
	Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes		Dollar Value		Average Price		Monthly Absorption Rate *		Homes			Dollar Value			Average Price			Monthly Absorption Rate
	(Dollars in thousands)
Arizona		508	$	129,469	$	254.9		3.28		569	$	124,723	$	219.2		3.24		(11	%)		4	%		16	%		1	%
California		451		178,424		395.6		4.18		511		175,533		343.5		3.10		(12	%)		2	%		15	%		35	%
Nevada		441		134,717		305.5		4.15		522		114,823		220.0		3.07		(16	%)		17	%		39	%		35	%
Washington		262		84,668		323.2		2.67		216		64,040		296.5		2.26		21	%		32	%		9	%		18	%
West		1,662		527,278		317.3		3.56		1,818		479,119		263.5		3.00		(9	%)		10	%		20	%		19	%
Colorado		1,050		392,728		374.0		3.02		797		276,767		347.3		1.89		32	%		42	%		8	%		60	%
Utah		137		43,644		318.6		1.98		203		60,491		298.0		1.28		(33	%)		(28	%)		7	%		55	%
Mountain		1,187		436,372		367.6		2.85		1,000		337,258		337.3		1.73		19	%		29	%		9	%		65	%
Maryland		252		115,425		458.0		1.51		235		103,079		438.6		1.45		7	%		12	%		4	%		4	%
Virginia		231		115,473		499.9		2.23		276		136,740		495.4		2.16		(16	%)		(16	%)		1	%		3	%
Florida		243		62,163		255.8		2.14		142		33,502		235.9		1.07		71	%		86	%		8	%		100	%
Illinois		-		-		-		-		2		550		275.0		-	N/M			N/M			N/M			N/M
East		726		293,061		403.7		1.89		655		273,871		418.1		1.55		11	%		7	%		(3	%)		22	%
Total		3,575	$	1,256,711	$	351.5		2.82		3,473	$	1,090,248	$	313.9		2.16		3	%		15	%		12	%		31	%

N/M = Not meaningful 

9

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Active Subdivisions

	September 30,				%
	2013		2012		Change
Arizona		19		14		36	%
California		11		18		(39%	)
Nevada		15		16		(6%	)
Washington		11		12		(8%	)
West		56		60		(7%	)
Colorado		37		45		(18%	)
Utah		5		16		(69%	)
Mountain		42		61		(31%	)
Maryland		16		17		(6%	)
Virginia		9		13		(31%	)
Florida		11		15		(27%	)
East		36		45		(20%	)
Total		134		166		(19%	)
Average for quarter ended		137		170		(19%	)
Average for the nine months ended		141		179		(21%	)

Backlog

	September 30,
	2013						2012						% Change
	Homes		Dollar Value		Average Price		Homes		Dollar Value		Average Price		Homes			Dollar Value			Average Price
	(Dollars in thousands)
Arizona		215	$	58,313	$	271.2		279	$	62,902	$	225.5		(23%	)		(7%	)		20	%
California		211		87,963		416.9		310		104,825		338.1		(32%	)		(16%	)		23	%
Nevada		164		57,521		350.7		239		56,902		238.1		(31%	)		1	%		47	%
Washington		72		25,119		348.9		104		33,885		325.8		(31%	)		(26%	)		7	%
West		662		228,916		345.8		932		258,514		277.4		(29%	)		(11%	)		25	%
Colorado		587		227,335		387.3		491		179,779		366.1		20	%		26	%		6	%
Utah		47		15,387		327.4		120		35,745		297.9		(61%	)		(57%	)		10	%
Mountain		634		242,722		382.8		611		215,524		352.7		4	%		13	%		9	%
Maryland		198		94,175		475.6		192		80,876		421.2		3	%		16	%		13	%
Virginia		168		84,867		505.2		183		91,993		502.7		(8%	)		(8%	)		0	%
Florida		100		26,081		260.8		79		20,052		253.8		27	%		30	%		3	%
East		466		205,123		440.2		454		192,921		424.9		3	%		6	%		4	%
Total		1,762	$	676,761	$	384.1		1,997	$	666,959	$	334.0		(12%	)		1	%		15	%

10

M.D.C. HOLDINGS, INC.

Homebuilding Operational Data

Homes Completed or Under Construction (WIP lots):

	September 30,				%
	2013		2012		Change
Unsold:
Completed		202		137		47	%
Under construction		940		624		51	%
Total unsold started homes		1,142		761		50	%
Sold homes under construction or completed		1,459		1,463		0	%
Model homes		229		229		0	%
Total homes completed or under construction		2,830		2,453		15	%

Lots Owned and Optioned (including homes completed or under construction):

	September 30, 2013						September 30, 2012
	Lots Owned		Lots Optioned		Total		Lots Owned		Lots Optioned		Total		Total % Change
Arizona		2,888		134		3,022		938		63		1,001		202	%
California		1,546		64		1,610		1,065		112		1,177		37	%
Nevada		1,514		265		1,779		994		61		1,055		69	%
Washington		518		154		672		524		212		736		(9	%)
West		6,466		617		7,083		3,521		448		3,969		78	%
Colorado		4,372		1,014		5,386		3,325		433		3,758		43	%
Utah		546		-		546		557		13		570		(4	%)
Mountain		4,918		1,014		5,932		3,882		446		4,328		37	%
Maryland		522		325		847		584		358		942		(10	%)
Virginia		415		294		709		547		103		650		9	%
Florida		716		521		1,237		321		95		416		197	%
Illinois		-		-		-		123		-		123	N/M
East		1,653		1,140		2,793		1,575		556		2,131		31	%
Total		13,037		2,771		15,808		8,978		1,450		10,428		52	%

N/M = Not meaningful 

11

M.D.C. HOLDINGS, INC.

Reconciliation of Non-GAAP Financial Measures

Adjusted Gross Margin from Home Sales

Adjusted gross margin from home sales is a non-GAAP financial measure. We believe this information is meaningful as it isolates the impact that inventory impairments, warranty adjustments and interest have on our Gross Margin from Home Sales and permits investors to make better comparisons with our competitors, who also break out and adjust gross margins in a similar fashion.

	Three Months Ended September 30,												Nine Months Ended September 30,												Three Months Ended June 30,
	2013			Gross Margin %			2012			Gross Margin %			2013			Gross Margin %			2012			Gross Margin %			2013			Gross Margin %
	(Dollars in thousands)
Gross Margin	$	78,444			18.1	%	$	49,593			15.5	%	$	208,888			17.9	%	$	112,126			14.7	%	$	72,772			18.1	%
Less: Land Sales Revenue		(25	)					(15	)					(1,832	)					(3,420	)					(1,807	)
Add: Land Cost of Sales		35						2						1,470						3,210						1,435
Gross Margin from Home Sales	$	78,454			18.1	%	$	49,580			15.5	%	$	208,526			17.9	%	$	111,916			14.7	%	$	72,400			18.1	%
Add: Inventory Impairments		350						-						350						-						-
Add: Interest in Cost of Sales		15,567						8,655						38,121						20,654						12,680
Add: Warranty Adjustments		-						-						300						-						-
Adjusted Gross Margin
from Home Sales	$	94,371			21.8	%	$	58,235			18.2	%	$	247,297			21.2	%	$	132,570			17.4	%	$	85,080			21.3	%

12