Exhibit 12
MERITAGE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratio of Earnings to Fixed Charges)
Three Months
Year ended December 31, ended March 31,
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2003 2002 2001 2000 1999 2004 2003
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COMPUTATION OF EARNINGS:
Earnings before income taxes $151,460 $ 113,544 $ 82,954 $ 56,762 $ 32,214 $ 43,463 $ 25,606
Add: fixed charges 31,772 23,550 18,221 11,528 7,678 9,644 6,843
Add: amortization of capitalized interest 22,287 19,259 13,303 9,171 5,036 6,682 4,031
Less: interest capitalized (26,580) (19,294) (16,623) (10,626) (7,025) (8,191) (5,662)
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EARNINGS, AS ADJUSTED: $178,939 $ 137,059 $ 97,855 $ 66,835 $ 37,903 $ 51,598 $ 30,318
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COMPUTATION OF FIXED CHARGES:
Interest expense, including amortization of
deferred financing costs $ 1,155 $ 525 $ 348 $ 98 $ 96 $ 407 $ 236
Interest portion of rent expense (1) 4,037 3,731 1,250 804 557 1,046 945
Capitalized interest 26,580 19,294 16,623 10,626 7,025 8,191 5,662
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TOTAL FIXED CHARGES: $ 31,772 $ 23,550 $ 18,221 $ 11,528 $ 7,678 $ 9,644 $ 6,843
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RATIO OF EARNINGS TO FIXED CHARGES: 5.63x 5.82x 5.37x 5.80x 4.94x 5.35x 4.50x
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(1) Represents 50% of rental expense