Exhibit 12.1
MERITAGE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio of Earnings to Fixed Charges)
Three Months
Years ended December 31, ended March 31,
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2002 2001 2000 1999 1998 2003 2002
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COMPUTATION OF EARNINGS:
Earnings before income taxes and extraordinary items $113,544 $ 83,336 $ 56,762 $32,215 $30,500 $25,606 $14,043
Add: fixed charges 23,550 18,221 11,528 7,678 4,739 6,843 5,393
Add: amortization of capitalized interest 19,259 13,303 9,171 5,036 3,619 4,031 3,374
Less: interest capitalized (19,294) (16,623) (10,626) (7,025) (3,711) (5,662) (4,553)
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EARNINGS, AS ADJUSTED: $137,059 $ 98,237 $ 66,835 $37,904 $35,147 $30,818 $18,257
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COMPUTATION OF FIXED CHARGES:
Interest expense, including amortization of deferred
debt costs $ 525 $ 348 $ 98 $ 96 $ 490 $ 236 $ 131
Interest portion of rent expense (1) 3,731 1,250 804 557 538 945 709
Capitalized interest 19,294 16,623 10,626 7,025 3,711 5,662 4,553
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TOTAL FIXED CHARGES: $ 23,550 $ 18,221 $ 11,528 $ 7,678 $ 4,739 $ 6,843 $ 5,393
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RATIO OF EARNINGS TO FIXED CHARGES: 5.82x 5.39x 5.80x 4.94x 7.42x 4.50x 3.39x
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(1) Represents 50% of rental expense