M.D.C. Holdings Announces Second Quarter 2008 Results

- Cash flow from operations of $91.6 million

DENVER, July 31 /PRNewswire-FirstCall/ -- M.D.C. Holdings, Inc.
(NYSE: MDC) today announced a net loss for the quarter ended June 30, 2008 of
$100.7 million, or $2.18 per diluted share, which included pre-tax charges of
$88.3 million for asset impairments. This 2008 second quarter net loss also
was impacted adversely by a $43.4 million increase in our deferred tax asset
valuation allowance, which reduced our benefit from income taxes. The net loss
for the second quarter of 2007 was $106.1 million, or $2.32 per diluted share,
including pre-tax charges of $161.1 million for asset impairments. Total
revenue for the second quarter of 2008 was $411.9 million, compared with
revenue of $716.7 million for the same period in 2007.
Net loss for the six months ended June 30, 2008 was $173.5 million, or
$3.77 per diluted share, which included pre-tax charges of $143.1 million for
asset impairments. This net loss for the first six months of 2008 also was
impacted adversely by a $54.0 million increase in our deferred tax asset
valuation allowance, which reduced our benefit from income taxes. The net loss
for the first six months of 2007 was $200.5 million, or $4.40 per diluted
share, including pre-tax charges of $302.5 million for asset impairments.
Total revenue for the first six months of 2008 was $818.0 million, compared
with revenue of $1.46 billion for the same period in 2007.
Larry A. Mizel, MDC's chairman and chief executive officer, stated,
"During the 2008 second quarter, our national economy continued to face a
significant headwind, as evidenced by weakness in many homebuilding and
general economic measures and a significant year-over-year decline in our own
home order results. Therefore, even though we recently saw the approval of
housing reform legislation, we remain cautious and defensive in our actions,
with our balance sheet remaining a top priority. As a result, we generated
$90 million in operating cash flow during the second quarter and reached
nearly $1.3 billion in cash on hand as of June 30, 2008, with no borrowings
outstanding on our homebuilding line of credit. In addition, as we continued
to focus on reducing our exposure to performance bonds and letters of credit
related to various land development activities during the second quarter, our
estimated cost to complete these activities remained below $50 million."
Mizel continued, "We believe that our financial position is relatively
strong for our industry and that, as a result, we are uniquely positioned to
work on initiatives that can create long-term value for our Company.
Therefore, during the second quarter, we continued to place emphasis on our
multi-year, Company-wide initiative focused on streamlining our business
practices for increased efficiency and standardization across all of our
markets. In addition, we continued to develop relationships with investors,
banks and other homebuilders to identify opportunities to invest the
substantial capital available to us."
Homebuilding Results
Homebuilding loss before taxes for the quarter and six months ended June
30, 2008 improved to $94.5 million and $171.7 million, respectively, compared
with $171.3 million and $310.3 million for the same periods in 2007. The
improvement in 2008 was driven in large part by declines in asset impairment
charges of 45% and 53%, respectively, for the second quarter and first six
months of 2008, and declines in homebuilding commissions, marketing and
general and administrative expenses ("SG&A") of 48% and 45%, respectively,
from the comparative 2007 periods. These decreases in expenses and charges
were offset partially by the impact of reductions in home closings, average
selling prices and home gross margins from the levels achieved during the same
periods in 2007.
The Company closed 1,292 homes and produced home gross margins of 11.7% in
the 2008 second quarter, compared with 2,031 home closings and home gross
margins of 14.1% for the same period in 2007. For the six months ended June
30, 2008, the Company closed 2,428 homes and produced home gross margins of
11.6%, compared with 4,032 home closings and 15.0% home gross margins for the
six months ended June 30, 2007. Average selling prices were $295,700 and
$303,900, respectively, for the quarter and six months ended June 30, 2008,
down $42,900 and $43,200, respectively, from the same periods in 2007.
Homebuilding SG&A decreased to $58.6 million and $123.6 million, respectively,
for the three and six months ended June 30, 2008, compared with $111.6 million
and $224.9 million for the same periods in the prior year.
Paris G. Reece III, MDC's executive vice president and chief financial
officer, said, "While our $88 million in asset impairments this quarter was
higher than our asset impairment charges in the 2008 first quarter, they were
significantly lower than the charges recognized during the same period in
2007. We impaired our land inventory by $63 million and our work-in-process
inventory and other assets by $25 million, impacting approximately 3,500 lots
in 110 subdivisions. The quarter-end book value of the impaired subdivisions
after the impairments was $240 million, consisting of $87 million of land and
$153 million of work-in-process. Impairments in the West and Mountain
segments accounted for more than 80% of all inventory impairments recorded in
the 2008 second quarter, primarily due to the fact that these segments
comprised 75% of our total inventories at quarter-end. Over the last eight
quarters, we have impaired approximately 70% of the 11,600 lots we owned at
June 30, 2008."
Reece continued, "Given the continued weakness in our industry, cash
generation and conservation have remained a key management focus thus far in
2008. By selling 1,100 lots during the first half of the year, primarily in
our West segment, we not only generated more than $40 million in proceeds, but
we triggered related taxable losses of more than $90 million. These tax
losses furthered our efforts to maximize the tax refund we expect to receive
early next year, which could be as much as $164 million. In addition, our
continuing focus on conserving cash by right-sizing our operating platform has
proven successful, as evidenced by the significant year-over-year reduction of
our homebuilding general and administrative expenses."
Financial Services and Other and Corporate Results
Income before taxes from the Company's Financial Services and Other
segment for the quarter and six months ended June 30, 2008 was $0.6 million
and $4.7 million, respectively, compared with $4.2 million and $11.8 million
for the same periods in the previous year. The decreases in the 2008 periods
primarily resulted from lower insurance revenue due to lower insurance
premiums collected from our homebuilding subcontractors as a result of the
decline in home construction levels. The Company also realized lower gains on
sales of mortgage loans, as the dollar volumes of mortgage loan originations
and mortgage loans sold declined in conjunction with builder home closings,
which were offset by reductions in general and administrative expenses for our
mortgage operations.
Loss before taxes from the Company's Corporate segment for the quarter and
six months ended June 30, 2008 was $7.6 million and $11.7 million,
respectively, compared with $3.9 million and $16.2 million for the same
periods in 2007. The increased loss for the 2008 second quarter primarily
resulted from reduced supervisory fees charged to other segments, which were
partially offset by year-over-year reductions in compensation-related, travel
and depreciation expenses. In addition, the Company experienced decreases in
interest income due to a significant reduction in interest rates applicable to
our cash investments, which more than offset the impact of significantly
higher levels of cash investments. The improvement for the first six months
primarily resulted from an increase in interest income generated from the
significantly higher cash balances in 2008, notwithstanding the lower
applicable interest rates later in the period, as well as a year-over-year
reduction in compensation-related, travel and depreciation expenses, partially
offset by reduced supervisory fees received from other segments.
Home Orders and Backlog
MDC received orders, net of cancellations, for 959 homes with an estimated
sales value of $279.0 million during the 2008 second quarter, compared with
net orders for 1,970 homes with an estimated sales value of $653.0 million
during the same period in 2007. For the six months ended June 30, 2008, the
Company received net orders for 2,057 homes with a sales value of $604
million, compared with 4,528 homes with a sales value of $1.56 billion for the
six months ended June 30, 2007. During both the second quarter and first six
months of 2008, the Company's approximate order cancellation rate was 43%,
consistent with the 44% and 39% rates experienced during the same periods in
2007. The Company ended the second quarter of 2008 with a backlog of 1,576
homes with an estimated sales value of $522.0 million, compared with a backlog
of 4,134 homes with an estimated sales value of $1.48 billion at June 30,
2007.
Since 1972, MDC has built and financed the American dream for more than
150,000 families. MDC's commitment to customer satisfaction, quality and value
is reflected in each home its subsidiaries build. As one of the largest
homebuilders in the United States, the Company has homebuilding divisions
across the country, including Denver, Colorado Springs, Salt Lake City, Las
Vegas, Phoenix, Tucson, California, Chicago, Northern Virginia, Maryland,
Philadelphia/Delaware Valley and Jacksonville. The Company also provides
mortgage financing, insurance and title services, primarily for MDC
homebuyers, through its wholly owned subsidiaries, HomeAmerican Mortgage
Corporation, American Home Insurance Agency and American Home Title and
Escrow, respectively. M.D.C. Holdings, Inc. is traded on the New York Stock
Exchange under the symbol "MDC." For more information, visit
http://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 and employment levels; (2)
changes in business conditions experienced by the Company, including
cancellation rates, net home orders, home gross margins, and land and home
values; (3) changes in interest rates, mortgage lending programs and the
availability of credit; (4) the relative stability of debt and equity markets;
(5) competition; (6) the availability and cost of land and other raw materials
used by the Company in its homebuilding operations; (7) the availability and
cost of performance bonds and insurance covering risks associated with our
business; (8) shortages and the cost of labor; (9) weather related slowdowns;
(10) slow growth initiatives; (11) building moratoria; (12) governmental
regulation, including the interpretation of tax, labor and environmental laws;
(13) changes in consumer confidence and preferences; (14) terrorist acts and
other acts of war; and (15) 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 Annual
Report on Form 10-K for the year ended December 31, 2007, which has been filed
with the Securities and Exchange Commission ("SEC"), and the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008, which is
scheduled to be filed with the SEC 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 presentations
should be consulted.

M.D.C. HOLDINGS, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
REVENUE
Home sales revenue $382,093 $687,813 $737,885 $1,399,613
Land sales revenue 12,281 3,417 40,849 9,451
Other revenue 17,524 25,478 39,309 52,768
Total Revenue 411,898 716,708 818,043 1,461,832

COSTS AND EXPENSES
Home cost of sales 337,543 590,564 652,580 1,189,763
Land cost of sales 6,835 2,181 34,784 7,288
Asset impairments 88,278 161,050 143,110 302,472
Marketing expenses 20,350 29,371 39,553 58,450
Commission expenses 14,659 24,380 28,092 47,630
General and administrative
expenses 45,768 80,090 98,680 170,747
Related party expenses 5 100 10 191
Total Costs and Expenses 513,438 887,736 996,809 1,776,541

Loss before income taxes (101,540) (171,028) (178,766) (314,709)
Benefit from income taxes 814 64,956 5,220 114,239

NET LOSS $(100,726) $(106,072) $(173,546) $(200,470)

LOSS PER SHARE
Basic $(2.18) $(2.32) $(3.77) $(4.40)
Diluted $(2.18) $(2.32) $(3.77) $(4.40)

WEIGHTED-AVERAGE SHARES
OUTSTANDING
Basic 46,110 45,722 46,033 45,612
Diluted 46,110 45,722 46,033 45,612

DIVIDENDS DECLARED PER SHARE $0.25 $0.25 $0.50 $0.50

M.D.C. HOLDINGS, INC.
Consolidated Balance Sheets
(Dollars in thousands, except per share amounts)
(Unaudited)

June 30, December 31,
2008 2007
ASSETS
Cash and cash equivalents $1,296,817 $1,004,763
Restricted cash 1,586 1,898
Receivables
Home sales receivables 28,655 33,647
Income taxes receivable, net 36,770 36,988
Other receivables 17,968 16,796
Mortgage loans held-for-sale, net 79,137 100,144
Inventories, net
Housing completed or under construction 647,350 902,221
Land and land under development 367,113 554,336
Property and equipment, net 39,717 44,368
Deferred income taxes, net 76,262 160,565
Related party assets 28,627 28,627
Prepaid expenses and other assets, net 56,812 71,884

Total Assets $2,676,814 $2,956,237

LIABILITIES
Accounts payable $44,844 $71,932
Accrued liabilities 285,787 339,353
Related party liabilities - 1,701
Homebuilding line of credit - -
Mortgage line of credit 55,430 70,147
Senior notes, net 997,305 997,091
Total Liabilities 1,383,366 1,480,224

COMMITMENTS AND CONTINGENCIES - -

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;
46,396,000 and 46,346,000 issued and
outstanding, respectively, at June 30,
2008, and 46,084,000 and 46,053,000
issued and outstanding, respectively,
at December 31, 2007 464 461
Additional paid-in-capital 771,121 757,039
Retained earnings 523,191 719,841
Accumulated other comprehensive loss (669) (669)
Treasury stock, at cost; 50,000 and
31,000 shares at June 30, 2008 and
December 31, 2007, respectively (659) (659)
Total Stockholders' Equity 1,293,448 1,476,013
Total Liabilities and Stockholders'
Equity $2,676,814 $2,956,237

M.D.C. HOLDINGS, INC.
Information on Segments
(Dollars in thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2008 2007 2008 2007
REVENUE
Homebuilding
West $221,044 $433,049 $444,550 $887,703
Mountain 87,436 134,670 157,931 279,861
East 55,428 71,800 109,519 133,155
Other Homebuilding 37,151 58,971 77,505 123,831
Total Homebuilding 401,059 698,490 789,505 1,424,550

Financial Services and Other 7,601 13,614 18,773 33,184
Corporate 7,556 9,029 16,924 14,462
Inter-company adjustments (4,318) (4,425) (7,159) (10,364)
Consolidated $411,898 $716,708 $818,043 $1,461,832

(LOSS) INCOME BEFORE INCOME
TAXES
Homebuilding
West $(33,591) $(139,239) $(94,982) $(264,630)
Mountain (39,027) (6,828) (50,635) 4,143
East (10,313) (6,784) (12,648) (11,170)
Other Homebuilding (11,543) (18,487) (13,483) (38,618)
Total Homebuilding (94,474) (171,338) (171,748) (310,275)

Financial Services and Other 557 4,241 4,705 11,758
Corporate (7,623) (3,931) (11,723) (16,192)
Consolidated $(101,540) $(171,028) $(178,766) $(314,709)

ASSET IMPAIRMENTS
West $40,015 $132,731 $88,325 $254,634
Mountain 32,192 9,123 36,146 9,777
East 8,214 5,865 9,747 8,432
Other Homebuilding 7,857 13,331 8,892 29,629
Consolidated $88,278 $161,050 $143,110 $302,472

June 30, December 31, June 30, December 31,
2008 2007 2007 2006
TOTAL ASSETS
Homebuilding
West $462,559 $747,835 $1,438,028 $1,869,442
Mountain 392,903 474,203 545,487 535,554
East 188,487 250,658 313,380 333,902
Other Homebuilding 93,433 125,003 208,654 266,326
Total Homebuilding 1,137,382 1,597,699 2,505,549 3,005,224

Financial Services and Other 154,545 174,617 196,655 284,791
Corporate 1,429,844 1,229,178 924,354 657,917
Inter-company adjustments (44,957) (45,257) (40,857) (38,057)
Consolidated $2,676,814 $2,956,237 $3,585,701 $3,909,875

M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

Three Months Ended
June 30, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Segments $23,549 $57,859 $(34,310) -59%
Financial Services and Other
Segment 7,045 9,367 (2,322) -25%
Corporate Segment (1) 15,179 12,964 2,215 17%
Total $45,773 $80,190 $(34,417) -43%

SG&A as a % of Home Sales Revenue
Homebuilding Segments 15.3% 16.2% -0.9%
Corporate Segment (1) 4.0% 1.9% 2.1%

Depreciation and Amortization (2) $9,346 $10,397 $(1,051) -10%

Home Gross Margins (3) 11.7% 14.1% -2.4%
Interest in Home Cost of Sales as
a % of Home Sales Revenue 4.4% 1.8% 2.6%

Cash Provided by Operating
Activities $91,570 $49,999 $41,571 83%
Cash Used in Investing
Activities $(73) $(1,345) $1,272 -95%
Cash Provided by (Used in)
Financing Activities $11,471 $(10,956) $22,427 -205%

Ending Unrestricted Cash and
Available Borrowing Capacity $2,031,962 $1,888,793 $143,169 8%

Corporate and Homebuilding
Interest
Interest capitalized during the
period $14,464 $14,435 $29 0%
Previously capitalized interest
included in home cost of sales
during the period $16,957 $12,258 $4,699 38%
Interest Capitalized in
Inventories at End of Period $49,674 $53,988 $(4,314) -8%

Six Months Ended
June 30, Change
2008 2007 Amount %
SELECTED FINANCIAL DATA
General and Administrative Expenses
Homebuilding Segments $55,975 $118,858 $(62,883) -53%
Financial Services and Other
Segment 14,068 21,425 (7,357) -34%
Corporate Segment (1) 28,647 30,655 (2,008) -7%
Total $98,690 $170,938 $(72,248) -42%

SG&A as a % of Home Sales Revenue
Homebuilding Segments 16.8% 16.1% 0.7%
Corporate Segment (1) 3.9% 2.2% 1.7%

Depreciation and Amortization (2) $17,958 $22,217 $(4,259) -19%

Home Gross Margins (3) 11.6% 15.0% -3.4%
Interest in Home Cost of Sales as
a % of Home Sales Revenue 4.4% 1.8% 2.6%

Cash Provided by Operating
Activities $322,303 $199,322 $122,981 62%
Cash Used in Investing
Activities $(116) $(2,055) $1,939 -94%
Cash Provided by (Used in)
Financing Activities $(30,133) $(36,835) $6,702 -18%

Ending Unrestricted Cash and
Available Borrowing Capacity

Corporate and Homebuilding
Interest
Interest capitalized during the
period $28,917 $28,876 $41 0%
Previously capitalized interest
included in home cost of sales
during the period $32,730 $25,543 $7,187 28%
Interest Capitalized in
Inventories at End of Period $49,674 $53,988 $(4,314) -8%

(1) Includes related party expenses.

(2) Includes depreciation and amortization of long-lived assets and
amortization of deferred marketing costs.

(3) Home sales revenue less home cost of sales (excluding commissions,
amortization of deferred marketing, project cost write offs and asset
impairments) as a percent of home sales revenue. During the three and
six months ended June 30, 2008, we closed homes on lots for which we
had previously recorded $63.6 million and $113.6 million,
respectively, of asset impairments. During the three and six months
ended June 30, 2007, we closed homes on lots for which we had
previously recorded $18.8 million and $28.0 million, respectively, of
asset impairments.

M.D.C. HOLDINGS, INC.
Selected Financial Data
(Dollars in thousands)
(Unaudited)

Three Months Ended
June 30, Change
2008 2007 Amount %
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans
originated $213,042 $293,544 $(80,502) -27%
Principal amount of mortgage loans
brokered $46,599 $127,891 $(81,292) -64%
Capture Rate 66% 52% 14%
Including brokered loans 79% 72% 7%
Mortgage products (% of mortgage
loans originated)
Fixed rate 98% 83% 15%
Adjustable rate - interest only 1% 14% -13%
Adjustable rate - other 1% 3% -2%
Prime loans (4) 45% 86% -41%
Alt A loans (5) 0% 5% -5%
Government loans (6) 55% 9% 46%
Sub-prime loans (7) 0% 0% 0%

Six Months Ended
June 30, Change
2008 2007 Amount %
HOMEAMERICAN OPERATING ACTIVITIES
Principal amount of mortgage loans
originated $377,785 $644,577 $(266,792) -41%
Principal amount of mortgage loans
brokered $106,170 $246,233 $(140,063) -57%
Capture Rate 62% 55% 7%
Including brokered loans 77% 74% 3%
Mortgage products (% of mortgage
loans originated)
Fixed rate 97% 76% 21%
Adjustable rate - interest only 1% 20% -19%
Adjustable rate - other 2% 4% -2%
Prime loans (4) 53% 73% -20%
Alt A loans (5) 0% 20% -20%
Government loans (6) 47% 7% 40%
Sub-prime loans (7) 0% 0% 0%

(4) Prime loans are defined as loans with Fair, Isaac and Company ("FICO")
scores greater than 620 and that comply with the documentation
standards of the government sponsored enterprise guidelines.

(5) Alt-A loans are defined as loans that would otherwise qualify as prime
loans except that they do not comply with the documentation standards
of the government sponsored enterprise guidelines.

(6) Government loans are loans either insured by the Federal Housing
Administration or guaranteed by the Department of Veteran Affairs.

(7) Sub-prime loans are loans that have FICO scores of less than or equal
to 620.

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)

June 30, December 31, June 30,
2008 2007 2007
HOMES COMPLETED OR UNDER CONSTRUCTION
Unsold Home Under Construction - Final 298 515 423
Unsold Home Under Construction - Frame 490 656 690
Unsold Home Under Construction - Foundation 167 229 382
Total Unsold Homes Under Construction 955 1,400 1,495
Sold Homes Under Construction 1,230 1,350 3,095
Model Homes 533 730 764
Homes Completed or Under Construction 2,718 3,480 5,354

LOTS OWNED (excluding homes completed
or under construction)
Arizona 2,089 2,969 4,771
California 911 1,491 2,182
Nevada 1,045 1,549 2,038
West 4,045 6,009 8,991

Colorado 2,749 2,992 3,052
Utah 771 863 933
Mountain 3,520 3,855 3,985

Maryland 236 302 389
Virginia 297 369 542
East 533 671 931

Delaware Valley 133 151 212
Florida 507 638 907
Illinois 156 191 233
Other Homebuilding 796 980 1,352

Total 8,894 11,515 15,259

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(unaudited)

June 30, December 31, June 30,
2008 2007 2007
LOTS CONTROLLED UNDER OPTION
Arizona 417 512 548
California 153 157 157
Nevada - 4 4
West 570 673 709

Colorado 241 262 312
Utah - - 93
Mountain 241 262 405

Maryland 321 558 925
Virginia 1,054 1,311 1,894
East 1,375 1,869 2,819

Delaware Valley 135 327 741
Florida 461 484 1,073
Illinois - - -
Other Homebuilding 596 811 1,814

Total 2,782 3,615 5,747

NON-REFUNDABLE OPTION DEPOSITS
Cash $5,429 $6,292 $11,009
Letters of Credit 4,459 6,547 11,850
Total Non-Refundable Option Deposits $9,888 $12,839 $22,859

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

Three Months Ended
June 30, Change
2008 2007 Amount %
HOMES CLOSED
(UNITS)
Arizona 380 645 (265) -41%
California 163 266 (103) -39%
Nevada 249 405 (156) -39%
West 792 1,316 (524) -40%

Colorado 171 200 (29) -15%
Utah 78 178 (100) -56%
Mountain 249 378 (129) -34%

Maryland 46 61 (15) -25%
Virginia 74 76 (2) -3%
East 120 137 (17) -12%

Delaware Valley 20 35 (15) -43%
Florida 89 138 (49) -36%
Illinois 22 13 9 69%
Texas - 14 (14) N/A
Other Homebuilding 131 200 (69) -35%

Total 1,292 2,031 (739) -36%

AVERAGE SELLING PRICES PER HOME CLOSED

West
Arizona $220.5 $253.1 $(32.6) -13%
California 389.1 534.6 (145.5) -27%
Nevada 248.0 304.2 (56.2) -18%

Mountain
Colorado 346.5 326.5 20.0 6%
Utah 336.1 369.2 (33.1) -9%

East
Maryland 439.8 513.4 (73.6) -14%
Virginia 465.6 497.8 (32.2) -6%

Other Homebuilding
Delaware Valley 400.3 439.9 (39.6) -9%
Florida 248.1 260.1 (12.0) -5%
Illinois 314.5 412.0 (97.5) -24%
Texas - 126.3 N/A N/A

Company Average $295.7 $338.7 $(43.0) -13%

Six Months Ended
June 30, Change
2008 2007 Amount %
HOMES CLOSED (UNITS)
Arizona 731 1,297 (566) -44%
California 317 594 (277) -47%
Nevada 429 718 (289) -40%
West 1,477 2,609 (1,132) -43%

Colorado 288 364 (76) -21%
Utah 160 406 (246) -61%
Mountain 448 770 (322) -42%

Maryland 95 110 (15) -14%
Virginia 139 144 (5) -3%
East 234 254 (20) -8%

Delaware Valley 51 81 (30) -37%
Florida 184 266 (82) -31%
Illinois 34 27 7 26%
Texas - 25 (25) N/A
Other Homebuilding 269 399 (130) -33%

Total 2,428 4,032 (1,604) -40%

AVERAGE SELLING PRICES PER HOME CLOSED

West
Arizona $226.1 $257.8 $(31.7) -12%
California 416.1 537.6 (121.5) -23%
Nevada 247.7 304.7 (57.0) -19%

Mountain
Colorado 349.7 338.2 11.5 3%
Utah 338.1 358.4 (20.3) -6%

East
Maryland 469.3 521.2 (51.9) -10%
Virginia 459.9 495.1 (35.2) -7%

Other Homebuilding
Delaware Valley 415.8 468.1 (52.3) -11%
Florida 240.5 270.1 (29.6) -11%
Illinois 344.9 359.8 (14.9) -4%
Texas - 130.4 N/A N/A

Company Average $303.9 $347.1 $(43.2) -12%

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

Three Months Ended
June 30, Change
2008 2007 Amount %

ORDERS FOR HOMES, NET (UNITS)
Arizona 294 611 (317) -52%
California 148 282 (134) -48%
Nevada 195 365 (170) -47%
West 637 1,258 (621) -49%

Colorado 117 224 (107) -48%
Utah 44 139 (95) -68%
Mountain 161 363 (202) -56%

Maryland 40 92 (52) -57%
Virginia 42 82 (40) -49%
East 82 174 (92) -53%

Delaware Valley 14 19 (5) -26%
Florida 67 117 (50) -43%
Illinois (2) 31 (33) -106%
Texas - 8 (8) N/A
Other Homebuilding 79 175 (96) -55%

Total 959 1,970 (1,011) -51%

Estimated Value of Orders for
Homes, net $279,000 $653,000 $(374,000) -57%
Estimated Average Selling Price of
Orders for Homes, net $290.9 $331.5 $(40.6) -12%
Cancellation Rate(8) 43% 44% -1%

Six Months Ended
June 30, Change
2008 2007 Amount %
ORDERS FOR HOMES, NET (UNITS)
Arizona 576 1,365 (789) -58%
California 307 697 (390) -56%
Nevada 376 745 (369) -50%
West 1,259 2,807 (1,548) -55%

Colorado 280 524 (244) -47%
Utah 88 349 (261) -75%
Mountain 368 873 (505) -58%

Maryland 87 191 (104) -54%
Virginia 112 194 (82) -42%
East 199 385 (186) -48%

Delaware Valley 36 81 (45) -56%
Florida 182 296 (114) -39%
Illinois 13 72 (59) -82%
Texas - 14 (14) N/A
Other Homebuilding 231 463 (232) -50%

Total 2,057 4,528 (2,471) -55%

Estimated Value of Orders for
Homes, net $604,000 $1,555,000 $(951,000) -61%
Estimated Average Selling Price of
Orders for Homes, net $293.6 $343.4 $(49.8) -15%
Cancellation Rate(8) 43% 39% 4%

(8) We define "Cancellation Rate" as the approximate number of cancelled
home order contracts during a reporting period as a percent of total
home orders received during such reporting period.

M.D.C. HOLDINGS, INC.
Homebuilding Operational Data
(Dollars in thousands)
(Unaudited)

June 30, December 31, June 30,
2008 2007 2007
BACKLOG (UNITS)
Arizona 437 592 1,572
California 193 203 530
Nevada 254 307 342
West 884 1,102 2,444

Colorado 205 213 413
Utah 106 178 408
Mountain 311 391 821

Maryland 118 126 268
Virginia 73 100 186
East 191 226 454

Delaware Valley 42 57 119
Florida 123 125 227
Illinois 25 46 68
Texas - - 1
Other Homebuilding 190 228 415

Total 1,576 1,947 4,134

Backlog Estimated Sales Value $522,000 $650,000 $1,480,000
Estimated Average Selling Price
of Homes in Backlog $331.2 $333.8 $358.0

ACTIVE SUBDIVISIONS
Arizona 57 66 69
California 21 41 44
Nevada 29 39 43
West 107 146 156

Colorado 48 47 50
Utah 23 23 25
Mountain 71 70 75

Maryland 14 15 16
Virginia 17 18 23
East 31 33 39

Delaware Valley 2 4 5
Florida 12 20 27
Illinois 4 5 6
Other Homebuilding 18 29 38

Total 227 278 308
Average for quarter ended 244 287 311

SOURCE M.D.C. Holdings, Inc.

Investor Relations, Robert N. Martin of M.D.C. Holdings, Inc.,
+1-720-977-3431, bob.martin@mdch.com