Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
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Six Months |
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Years Ended December 31, |
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June 30, 2008 |
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2007 |
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2006 |
|
2005 |
|
2004 |
|
2003 |
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|
(in thousands) |
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|
(Loss)/Income from continuing operations before income taxes and minority interest |
|
$ |
(104,944 |
) |
$ |
(456,482 |
) |
$ |
364,009 |
|
$ |
416,225 |
|
$ |
224,758 |
|
$ |
151,460 |
|
|
|
|
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|
Loss/(Income) from equity method investees |
|
15,618 |
|
40,229 |
|
(20,364 |
) |
(18,337 |
) |
(2,788 |
) |
(1,743 |
) |
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|
|
|
(89,326 |
) |
(416,253 |
) |
343,645 |
|
397,888 |
|
221,970 |
|
149,717 |
|
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|
Add/(deduct): |
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|
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|
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+ Fixed charges |
|
26,832 |
|
66,909 |
|
56,730 |
|
46,934 |
|
41,755 |
|
29,280 |
|
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|
+ Amortization of capitalized interest |
|
17,827 |
|
47,051 |
|
42,986 |
|
38,796 |
|
32,228 |
|
22,287 |
|
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|
+ Distributed income of equity method investees |
|
5,361 |
|
15,929 |
|
17,126 |
|
16,140 |
|
3,698 |
|
— |
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|
- Interest capitalized |
|
(13,266 |
) |
(55,431 |
) |
(52,063 |
) |
(43,034 |
) |
(38,855 |
) |
(26,580 |
) |
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|
Earnings for fixed charges |
|
$ |
(52,572 |
) |
$ |
(341,795 |
) |
$ |
408,424 |
|
$ |
456,724 |
|
$ |
260,796 |
|
$ |
174,704 |
|
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Fixed Charges: |
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Interest and other financial charges expensed and capitalized |
|
$ |
24,465 |
|
$ |
62,176 |
|
$ |
52,063 |
|
$ |
43,034 |
|
$ |
38,855 |
|
$ |
26,580 |
|
|
Interest factor attributed to rentals (a) |
|
2,367 |
|
4,733 |
|
4,667 |
|
3,900 |
|
2,900 |
|
2,700 |
|
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|
Total fixed charges |
|
$ |
26,832 |
|
$ |
66,909 |
|
$ |
56,730 |
|
$ |
46,934 |
|
$ |
41,755 |
|
$ |
29,280 |
|
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Ratio of earnings to fixed charges |
|
|
(b) |
|
(b) |
7.2 |
|
9.7 |
|
6.2 |
|
6.0 |
|
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(a) The interest factor attributable to rentals consists of one-third of rental charges, which is deemed by the Company to be representative of the interest factor inherent in rent.
(b) Earnings were not adequate to cover fixed charges by $79.4 million and $408.7 million for the six months ended June 30, 2008 and the year ended December 31, 2007, respectively.