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,
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2002 2001 2000 1999 1998 2003 2002
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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)
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EARNINGS, AS ADJUSTED: $ 137,059 $ 97,854 $ 66,835 $ 37,904 $ 35,147 71,061 48,702
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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
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TOTAL FIXED CHARGES: $ 23, 550 $ 18,221 $ 11,528 $ 7,678 $ 4,739 14,650 11,157
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RATIO OF EARNINGS TO FIXED CHARGES: 5.82x 5.37x 5.80x 4.94x 7.42x 4.85x 4.37x
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(1) Represents 50% of rental expense