Exhibit 12.1

Meritage Homes Corporation

Calculation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(Dollars in thousands)

 

     Year Ended December 31,  
     2011     2010     2009     2008     2007  

(Loss)/Income from continuing operations before income taxes and minority interest

      (20,376 )      2,484        (154,799 )      (275,966 )    $ (456,482 ) 

Loss/(Income) from equity method investees

      (5,849 )      (5,243 )      (4,013 )      17,038        40,229   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     (26,225 )      (2,759 )      (158,812 )      (258,928 )      (416,253 ) 

Add/(deduct):

           

+ Fixed Charges

      45,441        45,936        50,123        53,526        67,109   

+ Amortization of Capitalized Interest

      9,863        12,228        25,951        37,233        47,051   

+ Distributed income of equity method investees

      6,497        7,263        8,286        10,049        15,929   

- Interest capitalized

      (12,994 )      (9,720 )      (10,359 )      (25,606 )      (55,431 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

    $ 22,582      $ 52,948      $ (84,811 )    $ (183,726 )    $ (341,595 ) 

Fixed Charges:

           

Interest and other financial charges expensed and capitalized

      43,393        43,442        46,890        49,259      $ 62,176   

Interest factor attributed to rentals (a)

      2,048        2,494        3,233        4,267        4,933   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

    $ 45,441      $ 45,936      $ 50,123      $ 53,526      $ 67,109   

Ratio of earnings to fixed charges (b)

      0.5 x(c)      1.2 x        (c)        (c)        (c) 

 

(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) There was no outstanding preferred stock during the periods presented; therefore, the ratio of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends were the same.
(c) Earnings were not adequate to cover fixed charges by $22.9 million, $134.9 million, $237.3 million and $408.7 million for the years ended December 31, 2011, 2009, 2008 and 2007, respectively.