Exhibit 12
MERITAGE HOMES CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO OF EARNINGS TO FIXED CHARGES)
Year ended December 31,
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2004 2003 2002 2001 2000
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COMPUTATION OF EARNINGS:
Earnings before income taxes $ 224,758 $ 151,460 $ 113,544 $ 82,954 $ 56,762
Income from equity investments (2,788) (1,743) (1,383) (299) (30)
Distributed income from equity investments 3,698 1,664 1,136 277
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Earnings before income taxes net of equity investments $ 225,668 $ 151,381 $ 113,297 $ 82,932 $ 56,732
Add: fixed charges 44,835 31,772 23,550 18,221 11,528
Add: amortization of capitalized interest 32,227 22,287 19,259 13,303 9,171
Less: interest capitalized (38,855) (26,580) (19,294) (16,623) (10,626)
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EARNINGS, AS ADJUSTED: $ 263,875 $ 178,860 $ 136,812 $ 97,833 $ 66,805
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COMPUTATION OF FIXED CHARGES:
Interest expense, including amortization of deferred
debt costs $ 1,649 $ 1,155 $ 525 $ 348 $ 98
Interest portion of rent expense (1) 4,331 4,037 3,731 1,250 804
Capitalized interest (2) 38,855 26,580 19,294 16,623 10,626
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TOTAL FIXED CHARGES: $ 44,835 $ 31,772 $ 23,550 $ 18,221 $ 11,528
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RATIO OF EARNINGS TO FIXED CHARGES: 5.9x 5.6x 5.8x 5.4x 5.8x
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(1) represents 50% of rental expense
(2) Previously Reported Interest Incurred &
Capitalized $ 37,310
Model Lease Interest 1,545
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Adjusted Interest Incurred & Capitalized $ 38,855
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