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

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

PR Newswire

DENVER, Oct. 29, 2013

DENVER, Oct. 29, 2013 /PRNewswire/ --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

  oNet income of $36.3 million, or $0.73 per diluted share vs. net income of
    $20.1 million, or $0.41 per diluted share
  oPretax income of $34.9 million, up 79% from $19.5 million

       oHomebuilding pretax income of $26.7 million vs. $10.2 million
       oPretax operating margin of 7.8%, up 200 basis points from 5.8%

  oHome sale revenues of $433.7 million, up 35%

       oHomes delivered of 1,257, up 21%
       oAverage selling price of $345,000, up 12%
       oGross margin from home sales of 18.1% vs. 15.5%, up 260 basis points

  oSG&A expenses as a percentage of home sale revenues of 13.3% vs. 14.0%, a
    70 basis point improvement
  oMonthly net home order absorption pace of 2.3 homes per active community,
    up 14%

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

  oBacklog dollar value of $676.8 million, up 1%

       oBacklog units of 1,762, down 12%

  oAcquired 2,117 lots in 55 communities, including 31 new communities

       oTotal land acquisition spend of $162.0 million

  oCash 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."

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.

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.

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" at the end of
this release.



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       433,718       320,662       1,167,600     765,277
sale revenues
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      (57,753)      (44,788)      (157,862)     (118,135)
administrative expenses
Interest income           6,460         5,365         21,146        16,651
Interest expense          -             -             (1,726)       (808)
Other income (expense)    (488)         16            853           592
Homebuilding pretax       26,663        10,186        71,299        10,426
income
Financial Services:
Revenues                  14,282        13,668        40,672        31,974
Expenses                  (6,921)       (5,155)       (19,144)      (13,459)
Interest and other        885           785           2,680         2,323
income
Financial services        8,246         9,298         24,208        20,838
pretax income
Income before income      34,909        19,484        95,507        31,264
taxes
Benefit from income       1,342         642           188,169       1,765
taxes
Net income              $ 36,251      $ 20,126      $ 283,676     $ 33,029
Other comprehensive
income related to         1,960         5,095         2,500         10,945
available for sale
securities, net of tax
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  $ -           $ 0.25        $ -           $ 0.75
share



M.D.C. HOLDINGS, INC.

Consolidated Balance Sheets
                                                 September 30,    December 31,
                                                 2013             2012
ASSETS                                           (Dollars in thousands, except
                                                 per share amounts)
Homebuilding:                                    (Unaudited)
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,         184,986         -
respectively
Metropolitan district bond securities (related       14,167          5,818
party)
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



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       3,026       4,907        8,240        12,628
expense
Depreciation and               888         1,052        2,960        3,708
amortization
Inventory impairments and
write-offs of land option      1,125       103          1,624        414
deposits
Amortization of discount
(premiums) on marketable       (607)       430          816          279
debt securities
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     (65,078)    (66,607)     (121,165)    (202,994)
construction
Land and land under            (71,709)    21,358       (210,218)    112,406
development
Other assets                   (6,924)     (4,509)      (15,307)     (553)
Accounts payable and accrued   (158)       4,400        (30,516)     14,043
liabilities
Net cash used in operating     (79,617)    (34,865)     (225,860)    (50,455)
activities
Investing Activities:
Purchases of marketable        (57,792)    (104,379)    (369,887)    (397,167)
securities
Maturities of marketable       45,477      -            132,492      106,000
securities
Sales of marketable            50,016      59,355       187,083      285,056
securities
Purchases of property and      (280)       (290)        (1,278)      (958)
equipment
Net cash used in investing     37,421      (45,314)     (51,590)     (7,069)
activities
Financing Activities:
Payments on mortgage           (60,201)    (47,120)     (195,760)    (137,529)
repurchase facility
Advances on mortgage           50,265      61,348       158,345      135,715
repurchase facility
Dividend payments              -           (12,056)     -            (36,046)
Proceeds from issuance of      -           -            346,938      -
senior notes
Proceeds from exercise of      -           15,680       5,118        15,820
stock options
Net cash provided by (used     (9,936)     17,852       314,641      (22,040)
in) financing activities
Net increase (decrease) in     (52,132)    (62,327)     37,191       (79,564)
cash and cash equivalents
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



M.D.C. HOLDINGS, INC.

Homebuilding Operational Data
New Home Deliveries
                Three Months Ended September 30,
                2013                       2012                       % Change
                Homes  Dollar     Average  Homes  Dollar     Average  Homes  Dollar  Average
                       Value      Price           Value      Price           Value   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       Average  Homes  Dollar     Average  Homes  Dollar  Average
                       Value        Price           Value      Price           Value   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



M.D.C. HOLDINGS, INC.

Homebuilding Operational Data
Net New Orders
                Three Months Ended September 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         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
                       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         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



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
                       Dollar     Average         Dollar     Average          Dollar  Average
                Homes             Price    Homes             Price     Homes          Price
                       Value                      Value                       Value
                (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%



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     Lots               Lots    Lots               Total
                Owned    Optioned   Total   Owned   Optioned   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



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

SOURCE M.D.C. Holdings, Inc.

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