EXHIBIT 12.1 MERITAGE CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (IN THOUSANDS, EXCEPT RATIO OF EARNINGS TO FIXED CHARGES)
Years ended December 31, 2001 2000 1999 1998 1997 -------------------------------------------------- Computation of Earnings: Earnings before income taxes and extraordinary items 83,336 56,762 32,215 30,500 15,199 Add: Interest expense, including amortization of deferred debt costs 348 98 96 490 165 Interest portion of rent expense(1) 1,250 804 557 538 593 -------------------------------------------------- Earnings, as adjusted 84,934 57,664 32,868 31,528 15,957 ================================================== Computation of Fixed Charges: Interest expense, including amortization of deferred debt costs 348 98 96 490 165 Interest portion of rent expense(1) 1,250 804 557 538 593 Capitalized interest 16,623 10,626 7,025 3,711 3,679 -------------------------------------------------- Total Fixed Charges 18,221 11,528 7,678 4,739 4,437 ================================================== Ratio of Earnings to Fixed Charges: Earnings 84,934 57,664 32,868 31,528 15,957 Fixed charges 18,221 11,528 7,678 4,739 4,437 Ratio 4.66 5.00 4.28 6.65 3.60 Ratio of Earnings to Combined Fixed Charges and and Preferred Stock Dividends: Earnings 84,934 57,664 32,868 31,528 15,957 Fixed charges 18,221 11,528 7,678 4,739 4,437 Preferred stock dividends -- -- -- -- -- Ratio 4.66 5.00 4.28 6.65 3.60
(1) represents 50% of rental expense