Exhibit 12.1

Meritage Homes Corporation

Calculation of Ratio of Earnings to Total Fixed Charges

(Dollars in thousands)

 

    

Three

Months

Ended
March

        
     31,     Year Ended December 31,  
     2015     2014     2013     2012     2011     2010  

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

    $ 25,297        208,417        177,672        28,854        (20,376 )      2,484  

Loss/(Income) from equity method investees

      (2,421 )      (10,422 )      (12,805 )      (10,233 )      (5,849 )      (5,243 )
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
  22,876      197,995      164,867      18,621      (26,225 )    (2,759 )

Add/(deduct):

+ Fixed Charges

   15,791      60,541      53,285      47,968      45,441      45,936  

+ Amortization of Capitalized Interest

   9,345      32,143      24,668      15,101      9,863      12,228  

+ Distributed income of equity method investees

   3,035      11,613      13,013      9,648      6,497      7,263  

- Interest capitalized

   (12,128 )    (53,211 )    (36,060 )    (21,891 )    (12,994 )    (9,720 )
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

 $ 38,919      249,081      219,773      69,447      22,582      52,948   

Fixed Charges:

Interest and other financial charges expensed and capitalized

   15,282      58,374      51,152      46,135      43,393      43,442  

Interest factor attributed to rentals (a)

   509      2,167      2,133      1,833      2,048      2,494  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

 $ 15,791      60,541      53,285      47,968      45,441      45,936  

Ratio of earnings to fixed charges (b)

   2.5 x    4.1 x    4.1 x    1.4 x    0.5 x (c)    1.2 x 

 

(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 for the year ended December 31, 2011.