EX-12 3 ex12.htm EXHIBIT 12 ex12.htm

Exhibit 12

 

  

 

 

M.D.C. HOLDINGS, INC.

  

RATIO OF EARNINGS (LOSS) TO FIXED CHARGES

  
                                         
                                         
   

Year Ended December 31,

  
   

2014

    

2013

    

2012

    

2011

    

2010

  
                                         
   

(Dollars in thousands)

  

Earnings

  $ 163,686     $ 187,953     $ 95,914     $ (62,329 )   $ (5,268 )

Fixed charges

   $ 68,287     $ 63,775     $ 45,200     $ 65,439     $ 75,440  
                                         

Earnings to fixed charges

   $ 2.40     $ 2.95     $ 2.12     $ (0.95 )   $ (0.07 )
                                         

Earnings (Loss):

                                        
                                         

Income before income taxes

   $ 100,475     $ 129,825     $ 61,115     $ (107,472 )   $ (70,601 )
                                         

Add: fixed charges

     68,287       63,775       45,200       65,439       75,440  

Less: capitalized interest

     (65,584 )     (59,908 )     (41,507 )     (41,448 )     (33,919 )

Add: amortization of previously capitalized interest

     60,508       54,261       31,106       21,152       23,812  
                                         

Total earnings

   $ 163,686     $ 187,953     $ 95,914     $ (62,329 )   $ (5,268 )
                                         

Fixed Charges:

                                        
                                         

Homebuilding and corporate interest expense (1)

   $ 685     $ 1,726     $ 808     $ 20,842     $ 38,157  

Mortgage lending interest expense

     200       282       607       442       466  

Interest component of rent expense

     1,818       1,859       2,278       2,707       2,898  

Capitalized interest

     65,584       59,908       41,507       41,448       33,919  
                                         

Total fixed charges

   $ 68,287     $ 63,775     $ 45,200     $ 65,439     $ 75,440  

 

_____________________________________________

(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 and 2010, the Company generated losses which exceeded fixed charges of $127.8 million and $80.7 million, respectively.