Exhibit 12.1 MERITAGE CORPORATION COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In Thousands, Except Ratio of Earnings to Fixed Charges)
Six Months Year ended December 31, ended June 30, ---------------------------------------------------------- --------------- 2002 2001 2000 1999 1998 2003 2002 ---------------------------------------------------------- ---- ---- COMPUTATION OF EARNINGS: Earnings before income taxes $ 113,544 $ 82,953 $ 56,762 $ 32,215 $ 30,500 $ 59,670 $38,849 Add: fixed charges 23,550 18,221 11,528 7,678 4,739 14,650 11,157 Add: amortization of capitalized interest 19,259 13,303 9,171 5,036 3,619 8,860 8,031 Less: interest capitalized (19,294) (16,623) (10,626) (7,025) (3,711) (12,119) (9,335) ---------------------------------------------------------- -------- ------ EARNINGS, AS ADJUSTED: $ 137,059 $ 97,854 $ 66,835 $ 37,904 $ 35,147 71,061 48,702 ========================================================== ======== ====== COMPUTATION OF FIXED CHARGES: Interest expense, including amortization of deferred debt costs $ 525 $ 348 $ 98 $ 96 $ 490 $ 524 $ 263 Interest portion of rent expense (1) 3,731 1,250 804 557 538 2,007 1,559 Capitalized interest 19,294 16,623 10,626 7,025 3,711 12,119 9,335 ---------------------------------------------------------- -------- ------ TOTAL FIXED CHARGES: $ 23, 550 $ 18,221 $ 11,528 $ 7,678 $ 4,739 14,650 11,157 ========================================================== ======== ====== RATIO OF EARNINGS TO FIXED CHARGES: 5.82x 5.37x 5.80x 4.94x 7.42x 4.85x 4.37x ========================================================== ======== ======
(1) Represents 50% of rental expense