EXHIBIT 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
| Qtr. Ended March 31, 2010 |
Year Ended December 31, | |||||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
| Income/(Loss) from continuing operations before income taxes and minority interest |
$ | 2,781 | $ | (154,799 | ) | $ | (275,966 | ) | $ | (456,482 | ) | $ | 364,009 | $ | 416,225 | |||||||||
| Income/(Loss) from equity method investees |
(803 | ) | (4,013 | ) | 17,038 | 40,229 | (20,364 | ) | (18,337 | ) | ||||||||||||||
| 1,978 | (158,812 | ) | (258,928 | ) | (416,253 | ) | 343,645 | 397,888 | ||||||||||||||||
| Add/(deduct): |
||||||||||||||||||||||||
| + Fixed Charges |
11,063 | 50,123 | 53,526 | 67,109 | 56,730 | 46,934 | ||||||||||||||||||
| + Amortization of capitalized interest |
3,256 | 25,951 | 37,233 | 47,051 | 42,986 | 38,796 | ||||||||||||||||||
| + Distributed income of equity method investees |
1,340 | 8,286 | 10,049 | 15,929 | 17,126 | 16,140 | ||||||||||||||||||
| - Interest capitalized |
(2,146 | ) | (10,359 | ) | (25,606 | ) | (55,431 | ) | (52,063 | ) | (43,034 | ) | ||||||||||||
| Earnings available for fixed charges |
$ | 15,491 | $ | (84,811 | ) | $ | (183,726 | ) | $ | (341,595 | ) | $ | 408,424 | $ | 456,724 | |||||||||
| Fixed Charges: |
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| Interest and other financial charges expensed and capitalized |
10,441 | 46,890 | 49,259 | 62,176 | 52,063 | 43,034 | ||||||||||||||||||
| Interest factor attributed to rentals (a) |
622 | 3,233 | 4,267 | 4,933 | 4,667 | 3,900 | ||||||||||||||||||
| Total Fixed Charges |
$ | 11,063 | $ | 50,123 | $ | 53,526 | $ | 67,109 | $ | 56,730 | $ | 46,934 | ||||||||||||
| Ratio of earnings to fixed charges |
1.4 | (b | ) | (b | ) | (b | ) | 7.2 | 9.7 | |||||||||||||||
| (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 $134.9 million, $237.3 million and $408.7 million for the years ended December 31, 2009, 2008 and 2007, respectively. |
Meritage Homes Corporation
Proforma Calculation of Earnings to Total Fixed Charges
| Qtr. Ended March 31, 2010 |
Year Ended December 31, 2009 |
|||||||
| Income/(Loss) from continuing operations before income taxes and minority interest |
$ | 2,781 | $ | (154,799 | ) | |||
| Income/(Loss) from equity method investees |
(803 | ) | (4,013 | ) | ||||
| 1,978 | (158,812 | ) | ||||||
| Add/(deduct): |
||||||||
| + Fixed Charges |
11,449 | 51,692 | ||||||
| + Amortization of capitalized interest |
3,256 | 25,951 | ||||||
| + Distributed income of equity method investees |
1,340 | 8,286 | ||||||
| - Interest capitalized |
(2,146 | ) | (10,359 | ) | ||||
| Earnings available for fixed charges |
$ | 15,877 | $ | (83,243 | ) | |||
| Fixed Charges: |
||||||||
| Interest and other financial charges expensed and capitalized |
10,827 | 48,459 | ||||||
| Interest factor attributed to rentals (c) |
622 | 3,233 | ||||||
| Total Fixed Charges |
$ | 11,449 | $ | 51,692 | ||||
| Ratio of earnings to fixed charges |
1.4 | (d | ) | |||||
| (c) | 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. |
| (d) | Earnings were not adequate to cover fixed charges by $134.9 million for the year ended December 31, 2009. |