Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
| Year Ended December 31, | ||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
| Income/(Loss) from continuing operations before income taxes and minority interest |
28,854 | (20,376 | ) | 2,484 | (154,799 | ) | (275,966 | ) | ||||||||||||
| (Income)/Loss from equity method investees |
(10,233 | ) | (5,849 | ) | (5,243 | ) | (4,013 | ) | 17,038 | |||||||||||
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| 18,621 | (26,225 | ) | (2,759 | ) | (158,812 | ) | (258,928 | ) | ||||||||||||
| Add/(deduct): |
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| + Fixed Charges |
47,968 | 45,441 | 45,936 | 50,123 | 53,526 | |||||||||||||||
| + Amortization of Capitalized Interest |
15,101 | 9,863 | 12,228 | 25,951 | 37,233 | |||||||||||||||
| + Distributed income of equity method investees |
9,648 | 6,497 | 7,263 | 8,286 | 10,049 | |||||||||||||||
| - Interest capitalized |
(21,891 | ) | (12,994 | ) | (9,720 | ) | (10,359 | ) | (25,606 | ) | ||||||||||
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| Earnings available for fixed charges |
$ | 69,447 | $ | 22,582 | $ | 52,948 | $ | (84,811 | ) | $ | (183,726 | ) | ||||||||
| Fixed Charges: |
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| Interest and other financial charges expensed and capitalized |
46,135 | 43,393 | 43,442 | 46,890 | 49,259 | |||||||||||||||
| Interest factor attributed to rentals (a) |
1,833 | 2,048 | 2,494 | 3,233 | 4,267 | |||||||||||||||
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| Total Fixed Charges |
$ | 47,968 | $ | 45,441 | $ | 45,936 | $ | 50,123 | $ | 53,526 | ||||||||||
| Ratio of earnings to fixed charges |
1.4x | 0.5x | 1.2x | (b | ) | (b | ) | |||||||||||||
| (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 $134.9M and $237.3M million for the years ended December 31, 2009 and 2008, respectively. |
PRO FORMA
| Year Ended December 31, |
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| 2012 | ||||||||||||
| Income/(Loss) from continuing operations before income taxes and minority interest |
24,765 | |||||||||||
| (Income)/Loss from equity method investees |
(10,233 | ) | ||||||||||
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| 14,532 | ||||||||||||
| Add/(deduct): |
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| + Fixed Charges |
48,193 | |||||||||||
| + Amortization of Capitalized Interest |
15,101 | |||||||||||
| + Distributed income of equity method investees |
9,648 | |||||||||||
| - Interest capitalized |
(22,116 | ) | ||||||||||
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| Earnings available for fixed charges |
$ | 65,358 | ||||||||||
| Fixed Charges: |
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| Interest and other financial charges expensed and capitalized |
46,360 | |||||||||||
| Interest factor attributed to rentals (a) |
1,833 | |||||||||||
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| Total Fixed Charges |
$ | 48,193 | ||||||||||
| Ratio of earnings to fixed charges |
1.4x | |||||||||||