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M.D.C. HOLDINGS REPORTS RESULTS FOR THE FIRST QUARTER OF 1992

 M.D.C. HOLDINGS REPORTS RESULTS FOR THE FIRST QUARTER OF 1992
 DENVER, May 11 /PRNewswire/ -- M.D.C. Holdings Inc. (NYSE: MDC; PSE), national home builder and mortgage banking company, today reported operating income totalling $2.0 million during the three months ended March 31, 1992, as compared to an operating loss of $6.4 million during the like period in 1991.
 Orders for new homes during the first quarter of 1992 totalled 905 units, a 66 percent increase over the 545 new home orders during the like period in 1991. The company closed 420 homes during the first quarter, a 24 percent increase over the 339 homes closed in the first quarter of 1991. In addition, homes under contract (backlog) at March 31, 1992, increased from the March 31, 1991, backlog by 73 percent to 1,022 units having an approximate sales value of $179.3 million. These positive events largely were fueled by the decline in mortgage interest rates during the latter part of 1991 and into 1992.
 Spencer I. Browne, president and chief operating officer of MDC, said, "The improvement in the company's operations principally was the result of (i) a $5.4 million pre-tax gain on the sale of $38.7 million principal amount of mortgage certificates which collateralized certain mortgage-backed bonds; (ii) an $.8 million pre-tax gain on a bulk sale of $116.2 million of mortgage loan servicing; (iii) the increase in home closings; and (iv) a decline in selling, general and administrative expenses, principally legal expenses.
 "Income from operations for the first quarter were impacted adversely by sharply lower management fee income from Asset Investors Corp., a New York Stock Exchange-listed real estate investment trust managed by a subsidiary of the company, and reduced earnings from collateralized mortgage obligation (CMO) issuances. These declines resulted from the significant increase in the level of mortgage collateral prepayments caused by the decline in mortgage interest rates," Browne said. If mortgage prepayments continue at the levels experienced in the first quarter of 1992, income from this segment of MDC's business will be significantly lower during the balance of 1992 than in the comparable periods of 1991.
 MDC's operations during 1991 and 1992 also were affected adversely by, among other things, a weak national economy, low consumer confidence and the nationwide credit crunch. Operations also continued to be affected adversely by carrying costs associated with inactive inventories in its Denver and Phoenix home building markets as well as softness in the California market.
 Net income for the first quarter of 1992 was $1.3 million, or 6 cents per share, as compared to $.9 million, or 4 cents per share, for the first quarter of 1991. Net income for the first quarter of 1992 was (i) adversely affected by a $2.4 million extraordinary after- tax loss resulting primarily from the extinguishment of the company's obligations with respect to certain mortgage-backed bonds; and (ii) positively affected by a one-time $1.7 million increase to net income for the cumulative effect, to Jan. 1, 1992, of the company's adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." Net income for the first quarter of 1991 included a $7.2 million extraordinary after-tax gain from the company's repurchase of $15.5 million principal amount of its senior subordinated and subordinated notes.
 The company's earnings per share amounts for the first quarter of 1992 were based on 21.8 million weighted average shares outstanding as compared to 19.9 million weighted average shares outstanding for the comparable period in 1991.
 M.D.C. HOLDINGS INC.
 Summary of Financial Results
 (Unaudited)
 Three Months Ended
 March 31,
 1992 1991
 Revenues $102,541,000 $ 88,576,000
 Income (Loss)
 Before extraordinary
 gain (loss) and cumulative
 effect of accounting
 change $ 2,046,000 $ (6,358,000)
 Extraordinary gain (loss) (2,444,000) 7,250,000
 Cumulative effect of
 accounting change 1,700,000 --
 Net Income $ 1,302,000 $ 892,000
 Earnings (Loss) per Share
 Before extraordinary gain
 (loss) and cumulative effect
 of accounting change $ .09 $ (.32)
 Extraordinary gain (loss) (.11) .36
 Cumulative effect of
 accounting change .08 --
 Net Income $ .06 $ .04
 Weighted Average
 Shares Outstanding 21,787,000 19,910,000
 The results of operations for the three months ended March 31, 1992, and 1991 reflect extraordinary gains (losses) from the early extinguishment of debt, including extraordinary gains during the first quarter of 1991 from MDC's repurchase of its senior subordinated and subordinated notes.
 -0- 5/11/92
 /CONTACT: William Kostka of William Kostka Associates, 303-623-8421, for M.D.C. Holdings/
 (MDC) CO: M.D.C. Holdings Inc. ST: Colorado IN: SU: ERN


MC -- DV004 -- 8692 05/11/92 13:44 EDT
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Date:May 11, 1992
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