M.D.C. Holdings Announces 2013 Second Quarter Results

            M.D.C. Holdings Announces 2013 Second Quarter Results

PR Newswire

DENVER, July 30, 2013

DENVER, July 30, 2013 /PRNewswire/ -- M.D.C. Holdings, Inc. (NYSE: MDC)
announced results for the quarter ended June 30, 2013.

2013 Second Quarter Highlights and Comparisons to 2012 Second Quarter

  oNet income of $224.9 million, or $4.56 per diluted share vs. net income of
    $10.6 million, or $0.22 per diluted share

       oNet income included a $187.6 million, or $3.80 per diluted share, tax
         benefit related to the reversal of a substantial portion of the
         deferred tax asset valuation allowance
       oExcluding the impact of the reversal of the deferred tax asset
         valuation allowance, net income was $37.3 million*, or $0.76* per
         diluted share

  oPretax income of $38.0 million, up 292% from $9.7 million

       oHomebuilding pretax income of $29.8 million vs. $3.0 million

  oHome sale revenues of $400.3 million, up 56%

       oHomes delivered of 1,183, up 37%
       oAverage selling price of $338,400, up 14%

  oGross margin from home sales of 18.1% vs. 14.2%, a 390 basis point
    increase

       o70 basis point improvement vs. 17.4% in 2013 first quarter

  oSG&A expenses as a percentage of home sale revenues of 13.0% vs. 15.3%, a
    230 basis point improvement
  oMonthly net home order absorption pace of 3.2 homes per active community,
    up 23%

       oNet new orders of 1,351 homes, down 4%; dollar value up 12% to $485.5
         million

  oBacklog dollar value of $784.2 million, up 19%; units up 3% to 2,095 homes
  oAcquired 2,776 lots in 69 communities, including 32 new communities

       oTotal land acquisition spend of $185.1 million

Larry A. Mizel, MDC's Chairman and Chief Executive Officer, stated, "I am
pleased to announce a second quarter profit of $4.56 per diluted share, our
sixth consecutive quarterly operating profit, with net income improving by
$214.3 million over the prior year. Our favorable results were significantly
impacted by a $187.6 million tax benefit related to the reversal of a portion
of our deferred tax asset valuation allowance, stemming from our return to
consistent profitability and an improving housing market. Additionally, our
homebuilding results again improved significantly, as volume and gross margin
gains drove both year-over-year and sequential improvements in our
homebuilding pretax operating margin to 7.4%."

Mr. Mizel continued, "During the second quarter of 2013, the pace of our new
home sales remained strong. Our monthly absorption rate of 3.2 net new home
orders per active community was up 23% year-over-year and at our highest level
since 2006, even as we increased prices in most of our subdivisions to
regulate the pace of sales and maximize profitability. And although interest
rates rose significantly toward the end of the quarter, we believe that the
impact of increasing interest rates on new homes sales can be offset by the
positive influence of other factors impacting new home demand, including low
existing home inventories, attractive levels of overall affordability, and
continued improvements in employment levels and consumer confidence."

Mr. Mizel concluded, "Our active community count steadied in the second
quarter, increasing slightly after five consecutive sequential quarterly
declines. We continue to believe that we are poised to increase our active
community count by at least 10% from current levels by the end of the year.
Our confidence in achieving this goal is rooted in the success we have
experienced in acquiring new land over the past year. During the 2013 second
quarter alone, we purchased approximately 2,800 lots, our highest level of
land acquisition activity since 2006. We ended the quarter with more than
14,700 lots controlled, an increase of 16% from the end of the 2013 first
quarter and 44% year-over-year. We believe that we control enough lots to
drive meaningful gains in both net orders and closings volume for 2014,
provided that market conditions remain favorable for the industry."

Homebuilding

Home sale revenues for the 2013 second quarter increased 56% to $400.3 million
compared to $256.5 million for the prior year period. The increase in
revenues resulted from a 37% increase in homes delivered to 1,183 homes as
compared to 861 in the prior year and a 14% increase in the Company's average
selling price to $338,400. 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 second quarter increased to 18.1%
from 14.2% for the year-earlier period. On a sequential basis, our 2013 second
quarter gross margin from home sales was up 70 basis points as compared to
17.4% for the 2013 first quarter. The increase was attributable to the
Company's continued focus on increasing pricing and decreasing incentives as
its markets improved since the start of 2012.

SG&A expenses as a percentage of home sales revenues decreased by 230 basis
points to 13.0% for the 2013 second quarter versus 15.3% for the same period
in 2012. The improvement was the result of operating leverage created by the
Company's 56% year-over-year increase in home sale revenues, which far
outpaced a year-over-year increase in the Company's 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 second
quarter which did not recur in the 2013 second quarter.

Net new orders for the 2013 second quarter decreased 4% to 1,351 homes,
compared to 1,402 homes during the same period in 2012, largely due to a 21%
decrease in the Company's active average community count. However, the
Company's monthly sales absorption rate for the 2013 second quarter rose 23%
to 3.2 per community, compared to 2.6 per community for the 2012 second
quarter and 3.0 for the 2013 first quarter. The Company's cancellation rate
for the 2013 second quarter was 19% versus 20% in the prior year second
quarter and 18% in the 2013 first quarter.

The Company ended the 2013 second quarter with 2,095 homes in backlog, with an
estimated sales value of $784.2 million, compared with a backlog of 2,028
homes with an estimated sales value of $657.5 million at June 30, 2012, a 19%
increase in dollar value.

At June 30, 2013, the Company had 140 active subdivisions, which was up
slightly from 139 at March 31, 2013, and represented a reversal of its
previous trend of sequential quarterly decreases in community count. In
addition, as a result of the significant increase in our land acquisition
activity in the latter half of 2012 and the first half of 2013, the Company's
lots owned and under option increased by 44% year-over-year and 16% since
March 31, 2013 to more than 14,700 lots. The Company believes that these
significant increases in lots owned and under option will further increase its
active community count during the second half of 2013.

Financial Services

Income before taxes from our financial services operations for the 2013 second
quarter was $8.2 million, compared to $6.7 million for the 2012 second
quarter. The increase in pretax income primarily reflected a $1.1 million
increase in our mortgage operations pretax income to $6.9 million for the 2013
second quarter, compared to $5.8 million in the 2012 second quarter. The
improvement in our mortgage profitability was driven primarily by
year-over-year increases in the volume of loans locked and originated due to
increases in new home deliveries from our homebuilding operations.

Income Taxes

During the 2013 second quarter, we realized a $187.6 million income tax
benefit related to the reversal of a substantial portion of the Company's
deferred tax asset valuation allowance. Our remaining deferred tax asset
valuation allowance at June 30, 2013 was $39.7 million and related to (1) the
remaining interim periods of 2013 during which a portion of the remaining
valuation allowance will be reversedas pretax income is realized as required
by U.S. GAAP and (2) various state net operating loss carryforwards where
realization is more uncertain at this time due to the more limited
carryforward periods that exist in certain states.

About MDC

Since 1972, MDC's subsidiary companies have built and financed the American
dream for more than 170,000 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.

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 June 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" at the end of
this release.



M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations and Comprehensive Income
                               Three Months             Six Months
                               Ended June 30,           Ended June 30,
                               2013         2012        2013        2012
                               (Dollars in thousands, except per share
                               amounts)
Homebuilding:                  (Unaudited)
Home sale revenues        $           $          $          $ 
                               400,327     256,532    732,075    441,210
Land sale revenues        1,807        1,815       1,807       3,405
Total home sale and  402,134      258,347     733,882     444,615
land revenues
Home cost of sales        (327,927)    (220,220)   (602,003)   (378,874)
Land cost of sales        (1,435)      (1,718)     (1,435)     (3,208)
Total cost of sales  (329,362)    (221,938)   (603,438)   (382,082)
Gross margin    72,772       36,409      130,444     62,533
Selling, general and      (51,908)     (39,223)    (100,109)   (73,347)
administrative expenses
Interest income           8,504        5,373       14,686      11,286
Interest expense          (909)        -           (1,726)     (808)
Other income (expense)    1,330        418         1,341       576
Homebuilding    29,789       2,977       44,636      240
pretax income
Financial Services:
Revenues                  13,884       10,587      26,390      18,306
Expenses                  (6,581)      (4,640)     (12,223)    (8,305)
Interest and other        920          731         1,795       1,539
income
Financial       8,223        6,678       15,962      11,540
services pretax income
Income before income taxes     38,012       9,655       60,598      11,780
Benefit from income taxes      186,897      983         186,827     1,123
Net income                     $           $         $          $  
                               224,909     10,638     247,425    12,903
Other comprehensive income
(loss):
Unrealized gain (loss)
related                        (1,995)      (698)       540         5,850
 to available-for-sale
 securities, net of tax
Comprehensive income           $           $        $          $  
                               222,914     9,940      247,965    18,753
Earnings per share:
Basic                $        $       $       $    
                               4.60        0.22       5.07       0.27
Diluted              $        $       $       $    
                               4.56        0.22       5.02       0.27
Weighted average common shares
outstanding:
Basic                48,447,005   47,398,088  48,410,486  47,367,051
Diluted              48,914,984   47,516,258  48,916,988  47,462,544
Dividends declared per share   $       $       $       $    
                                 -       0.25          -    0.50



M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
                                       June 30,            December 31,
                                       2013                 2012
ASSETS                                 (Dollars in thousands, except per share
                                       amounts)
Homebuilding:                          (Unaudited)
 Cash and cash equivalents           $  208,883         $   129,535
 Marketable securities               610,404              519,465
 Restricted cash                     2,679                1,859
 Trade and other receivables         36,676               28,163
 Inventories:
  Housing completed or under        569,218              512,949
construction
 Land and land under development   628,282              489,572
 Total inventories              1,197,500            1,002,521
 Property and equipment, net         32,184               33,125
 Deferred tax asset, net of
valuation allowance of $39,697 and     184,221              -
$248,306 at June 30, 2013 and
December 31, 2012, respectively
 Other assets                         61,103               44,777
  Total homebuilding assets        2,333,650            1,759,445
Financial Services:
 Cash and cash equivalents           40,535               30,560
 Marketable securities               24,037               32,473
 Mortgage loans held-for-sale, net   92,463               119,953
 Other assets                        5,857                3,010
  Total financial services assets  162,892              185,996
  Total Assets              $ 2,496,542          $  1,945,441
LIABILITIES AND EQUITY
Homebuilding:
 Accounts payable                   $   22,267        $    73,055
 Accrued liabilities                 137,209              118,456
 Senior notes, net                   1,095,225            744,842
  Total homebuilding liabilities   1,254,701            936,353
Financial Services:
 Accounts payable and accrued        53,798               51,864
liabilities
 Mortgage repurchase facility        48,848               76,327
 Total financial services         102,646              128,191
liabilities
  Total Liabilities         1,357,347            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;
48,869,726 and 48,698,757 issued and   489                  487
outstanding at June 30, 2013 and
December 31, 2012, respectively
Additional paid-in-capital            907,192              896,861
Retained earnings (accumulated        226,136              (21,289)
deficit)
Accumulated other comprehensive       5,378                4,838
income
  Total Stockholders' Equity       1,139,195            880,897
 Total Liabilities and            $ 2,496,542          $  1,945,441
Stockholders' Equity



M.D.C. HOLDINGS, INC.
Consolidated Statements of Cash Flows
                                  Three Months          Six Months
                                  Ended June 30,        Ended June 30,
                                  2013       2012        2013       2012
                                  (Dollars in thousands)
                                  (Unaudited)
Operating Activities:
Net income                        $ 224,909  $  10,638  $ 247,425  $  12,903
Adjustments to reconcile net
income to net cash
provided by (used in) operating
activities:
 Stock-based compensation      1,838      5,110       5,214      7,721
expense
 Depreciation and              994        1,349       2,072      2,656
amortization
 Write-offs of land option     273        229         499        311
deposits
 Amortization of discount
(premiums) on marketable debt     804        1           1,423      (151)
securities
 Deferred income tax benefit   (187,643)  -           (187,643)  -
Net changes in assets and
liabilities:
 Restricted cash       (153)      (1,180)     (820)      (1,593)
  Trade and other       (4,596)    (7,283)     (8,566)    (18,345)
receivables
  Mortgage loans        (6,034)    (10,697)    27,490     12,648
held-for-sale
  Housing completed or  (47,469)   (90,512)    (56,087)   (136,387)
under construction
  Land and land under   (93,739)   74,048      (138,509)  91,048
development
  Other assets          (1,687)    562         (8,383)    3,956
  Accounts payable and  21,678     20,958      (30,358)   9,643
accrued liabilities
Net cash used in operating        (90,825)   3,223       (146,243)  (15,590)
activities
Investing Activities:
 Purchase of marketable        (161,284)  (107,178)   (312,095)  (292,788)
securities
 Maturity of marketable        87,015     106,000     87,015     106,000
securities
 Sale of marketable securities 92,399     43,680      137,067    225,701
 Purchase of property and      (72)       (304)       (998)      (668)
equipment
 Net cash used in investing    18,058     42,198      (89,011)   38,245
activities
Financing Activities:
 Payments on mortgage          (55,790)   (36,784)    (135,559)  (90,409)
repurchase facility
 Advances on mortgage          63,170     43,604      108,080    74,367
repurchase facility
 Dividend payments             -          (11,996)    -          (23,990)
 Proceeds from issuance of     99,125     -           346,938    -
senior notes
 Proceeds from exercise of     -          140         5,118      140
stock options
 Net cash provided by (used    106,505    (5,036)     324,577    (39,892)
in) financing activities
Net increase (decrease) in cash   33,738     40,385      89,323     (17,237)
and cash equivalents
Cash and cash equivalents:
 Beginning of period         215,680    285,739     160,095    343,361
 End of period               $ 249,418  $ 326,124   $ 249,418  $ 326,124



M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
New Home Deliveries:
            Three Months Ended June 30,
            2013                        2012                        % Change
            Homes  Dollar  Average  Homes  Dollar  Average  Homes  Dollar  Average
                     Value   Price             Value   Price             Value   Price
            (Dollars in thousands)
Arizona    130      $       $ 234.4   127      $       $ 213.3   2%       13%      10%
                     30,472                      27,086
California 167      61,199   366.5     133      43,195   324.8     26%      42%      13%
Nevada     161      41,850   259.9     155      28,460   183.6     4%       47%      42%
Washington  98       30,992   316.2     59       17,170   291.0     66%      81%      9%
West      556      164,513  295.9     474      115,911  244.5     17%      42%      21%
Colorado   309      113,320  366.7     185      66,254   358.1     67%      71%      2%
Utah       59       18,643   316.0     46       13,142   285.7     28%      42%      11%
Mountain  368      131,963  358.6     231      79,396   343.7     59%      66%      4%
Maryland   83       35,407   426.6     47       19,777   420.8     77%      79%      1%
Virginia   95       47,350   498.4     70       32,171   459.6     36%      47%      8%
Florida    81       21,094   260.4     37       8,726    235.8     119%     142%     10%
Illinois    -        -        -         2        551      275.5     N/M      N/M      N/M
East      259      103,851  401.0     156      61,225   392.5     66%      70%      2%
 Total   1,183    $        $ 338.4   861      $        $ 297.9   37%      56%      14%
                     400,327                     256,532



New Home Deliveries:
            Six Months Ended June 30,
            2013                        2012                        % Change
            Homes  Dollar  Average  Homes  Dollar  Average  Homes  Dollar  Average
                     Value   Price             Value   Price             Value   Price
            (Dollars in thousands)
Arizona    270      $       $ 235.7   215      $       $ 209.5   26%      41%      12%
                     63,633                      45,043
California 313      110,788  354.0     188      61,188   325.5     66%      81%      9%
Nevada     294      74,595   253.7     261      50,056   191.8     13%      49%      32%
Washington  159      50,476   317.5     103      29,166   283.2     54%      73%      12%
West      1,036    299,492  289.1     767      185,453  241.8     35%      61%      20%
Colorado   613      226,808  370.0     310      111,217  358.8     98%      104%     3%
Utah       126      38,532   305.8     98       27,242   278.0     29%      41%      10%
Mountain  739      265,340  359.1     408      138,459  339.4     81%      92%      6%
Maryland   137      57,111   416.9     91       38,571   423.9     51%      48%      -2%
Virginia   158      76,469   484.0     129      58,326   452.1     22%      31%      7%
Florida    131      33,663   257.0     83       19,850   239.2     58%      70%      7%
Illinois    -        -        -         2        551      275.5     N/M      N/M      N/M
East      426      167,243  392.6     305      117,298  384.6     40%      43%      2%
 Total   2,201    $        $ 332.6   1,480    $        $ 298.1   49%      66%      12%
                     732,075                     441,210
N/M - Not
meaningful



Net New Orders:
            Three Months Ended June 30,
            2013                                 2012                                 % Change
                   Dollar   Average  Monthly            Dollar   Average  Monthly            Dollar  Average  Monthly
            Homes  Value    Price    Absorption  Homes  Value    Price    Absorption  Homes  Value   Price    Absorption
                                     Rate *                               Rate *                              Rate
            (Dollars in thousands)
Arizona    196    $       $        3.84        246    $       $        4.10        -20%   -12%    10%      -6%
                   48,825   249.1                      55,544   225.8
California 196    79,196   404.1    5.23        217    74,876   345.1    3.71        -10%   6%      17%      41%
Nevada     152    49,085   322.9    4.94        225    48,926   217.4    3.90        -32%   0%      49%      27%
Washington  94     31,016   330.0    2.72        69     19,346   280.4    2.19        36%    60%     18%      24%
West      638    208,122  326.2    4.15        757    198,692  262.5    3.64        -16%   5%      24%      14%
Colorado   381    143,754  377.3    3.30        311    108,045  347.4    2.19        23%    33%     9%       51%
Utah       44     14,582   331.4    2.10        69     19,945   289.1    1.39        -36%   -27%    15%      51%
Mountain  425    158,336  372.6    3.11        380    127,990  336.8    1.99        12%    24%     11%      56%
Maryland   112    53,091   474.0    1.84        113    46,677   413.1    1.96        -1%    14%     15%      -6%
Virginia   90     43,830   487.0    2.50        98     48,168   491.5    2.29        -8%    -9%     -1%      9%
Florida    86     22,080   256.7    2.25        53     12,842   242.3    1.28        62%    72%     6%       76%
Illinois    -      -        -        -           1      315      315.0    N/M         N/M    N/M     N/M      N/M
East      288    119,001  413.2    2.13        265    108,002  407.6    1.87        9%     10%     1%       14%
 Total   1,351  $        $        3.18        1,402  $        $        2.59        -4%    12%     16%      23%
                   485,459  359.3                      434,684  310.0
            Six Months Ended June 30,
            2013                                 2012                                 % Change
                   Dollar   Average  Monthly            Dollar   Average  Monthly            Dollar  Average  Monthly
            Homes  Value    Price    Absorption  Homes  Value    Price    Absorption  Homes  Value   Price    Absorption
                                     Rate *                               Rate *                              Rate
            (Dollars in thousands)
Arizona    323    $       $        3.36        433    $       $        3.35        -25%   -18%    11%      0%
                   79,760   246.9                      96,737   223.4
California 360    140,358  389.9    4.77        338    117,611  348.0    3.06        7%     19%     12%      56%
Nevada     322    95,267   295.9    4.94        391    83,748   214.2    3.31        -18%   14%     38%      49%
Washington  187    59,942   320.5    2.91        145    42,042   289.9    2.38        29%    43%     11%      22%
West      1,192  375,327  314.9    3.96        1,307  340,138  260.2    3.12        -9%    10%     21%      27%
Colorado   799    291,343  364.6    3.40        546    192,192  352.0    1.93        46%    52%     4%       76%
Utah       109    35,179   322.7    1.99        137    38,938   284.2    1.26        -20%   -10%    14%      58%
Mountain  908    326,522  359.6    3.13        683    231,130  338.4    1.74        33%    41%     6%       80%
Maryland   202    91,526   453.1    1.76        196    81,825   417.5    1.80        3%     12%     9%       -2%
Virginia   183    92,714   506.6    2.51        188    92,227   490.6    2.13        -3%    1%      3%       18%
Florida    166    42,626   256.8    2.11        89     21,778   244.7    1.00        87%    96%     5%       111%
Illinois    -      -        -        -           2      550      275.0    N/M         N/M    N/M     N/M      N/M
East      551    226,866  411.7    2.07        475    196,380  413.4    1.66        16%    16%     0%       25%
 Total   2,651  $        $        3.09        2,465  $        $        2.25        8%     21%     12%      37%
                   928,715  350.3                      767,648  311.4
N/M - Not meaningful
* Calculated as total net new orders in period ÷ average active
communities during period ÷ number of months in period



Active Subdivisions:
                                June 30,
                                2013  2012  % Change
Arizona                        19    17    12%
California                     11    19    -42%
Nevada                         13    19    -32%
Washington                      12    11    9%
West                          55    66    -17%
Colorado                       38    47    -19%
Utah                           4     17    -76%
Mountain                      42    64    -34%
Maryland                       20    19    5%
Virginia                       11    12    -8%
Florida                        12    12    0%
East                           43    43    0%
 Total                       140   173   -19%
 Average for quarter ended    142   180   -21%
 Average for six months ended 143   183   -22%



Backlog:
            June 30,
            2013                        2012                        % Change
            Homes  Dollar  Average  Homes  Dollar  Average  Homes  Dollar  Average
                     Value   Price             Value   Price             Value   Price
            (Dollars in thousands)
Arizona    203      $       $ 250.4   346      $       $ 221.3   -41%     -34%     13%
                     50,836                      76,564
California 276      107,950  391.1     268      92,161   343.9     3%       17%      14%
Nevada     232      71,488   308.1     286      63,283   221.3     -19%     13%      39%
Washington  107      36,118   337.6     96       30,438   317.1     11%      19%      6%
West      818      266,392  325.7     996      262,446  263.5     -18%     2%       24%
Colorado   656      246,797  376.2     469      171,862  366.4     40%      44%      3%
Utah       64       21,576   337.1     107      30,116   281.5     -40%     -28%     20%
Mountain  720      268,373  372.7     576      201,978  350.7     25%      33%      6%
Maryland   248      113,824  459.0     218      90,570   415.5     14%      26%      10%
Virginia   210      109,180  519.9     162      82,723   510.6     30%      32%      2%
Florida    99       26,470   267.4     76       19,734   259.7     30%      34%      3%
East       557      249,474  447.9     456      193,027  423.3     22%      29%      6%
 Total   2,095    $        $ 374.3   2,028    $        $ 324.2   3%       19%      15%
                     784,239                     657,451



Homes Completed or Under Construction (WIP lots):
                                                  June 30,      % Change
                                                  2013   2012
Unsold:
Completed                                        185    138    34%
Under construction                               628    479    31%
 Total unsold started homes                    813    617    32%
Sold homes under construction or completed        1,652  1,392  19%
Model homes                                      207    221    -6%
 Total homes completed or under construction    2,672  2,230  20%



Lots Owned and Optioned (including homes completed or under construction):
             June 30, 2013                June 30, 2012            Total %
             Lots      Lots       Total   Lots   Lots      Total   Change
             Owned     Optioned           Owned  Optioned
Arizona     2,707     239        2,946   774    108       882     234%
California  971       -          971     1,196  -         1,196   -19%
Nevada      1,573     136        1,709   966    27        993     72%
Washington   477       141        618     397    161       558     11%
West        5,728     516        6,244   3,333  296       3,629   72%
Colorado    4,174     1,079      5,253   3,236  584       3,820   38%
Utah        468       -          468     492    13        505     -7%
Mountain    4,642     1,079      5,721   3,728  597       4,325   32%
Maryland    551       358        909     607    399       1,006   -10%
Virginia    491       284        775     596    121       717     8%
Florida     648       424        1,072   285    133       418     156%
Illinois    -         -          -       123    -         123     N/M
East        1,690     1,066      2,756   1,611  653       2,264   22%
 Total    12,060    2,661      14,721  8,672  1,546     10,218  44%
N/M - Not meaningful



M.D.C. HOLDINGS, INC.
Reconciliation of Non-GAAP Financial Measures
Net income excluding the impact of the reversal of the deferred tax asset per
diluted share is a non-GAAP financial measure. We believe this information is
meaningful as it more clearly reflects the Company's current operating results
and facilitates the investors ability to compare our financial results to
those of our peer group and to our prior financial performance by excluding
items which otherwise would distort the comparison. Net income excluding the
impact of the reversal of the deferred tax asset valuation allowance per basic
and diluted share for the three and six months ended June 30, 2013 is
calculated as follows:
                                 Three Months Ended        Six Months Ended
                                 June 30, 2013             June 30, 2013
                                 (Dollars in thousands, except per share
Numerator                        amounts)
Net income                       $      224,909        $     
                                                            247,425
 Less: deferred tax asset     (187,643)                  (187,643)
valuation allowance reversal
Adjusted net income              37,266                     59,782
 Less: distributed earnings
allocated to participating       -                          -
securities
 Less: undistributed earnings
allocated to participating       (309)                      (504)
securities
Net income attributable to
common stockholders (numerator   36,957                     59,278
for basic earnings per share)
 Add back: undistributed
earnings allocated to            309                        504
participating securities
 Less: undistributed earnings
reallocated to participating     (306)                      (499)
securities
Numerator for diluted earnings   $       36,960       $      
per share                                                   59,283
Denominator
Weighted-average common shares  48,447,005                 48,410,486
outstanding
 Add: dilutive effect of      467,979                    506,502
stock options
Denominator for diluted
earnings per share under two     48,914,984                 48,916,988
class method
Basic earnings per common share
excluding impact of reversal of  $         0.76     $        
deferred tax asset valuation                                1.22
allowance
Diluted earnings per common
share excluding impact of        $         0.76     $        
reversal of deferred tax asset                              1.21
valuation allowance

SOURCE M.D.C. Holdings, Inc.

Website: http://www.mdcholdings.com
Contact: Robert N. Martin, Vice President of Finance and Corporate Controller,
(720) 977-3431, bob.martin@mdch.com
 
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