Exhibit 12.1

Meritage Homes Corporation

Calculation of Ratio of Earnings to Total Fixed Charges

(Dollars in thousands)

 

     Year Ended December 31,  
     2017     2016     2015     2014     2013  

Income from continuing operations before income taxes and minority interest

      247,519       218,060       189,464       208,417       177,672  

Income from equity method investees

      (15,959 )      (19,042 )      (12,759 )      (10,422 )      (12,805 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     231,560     199,018     176,705     197,995     164,867  

Add/(deduct):

           

+ Fixed Charges

      82,278       72,952       69,753       60,541       53,285  

+ Amortization of Capitalized Interest

      64,824       58,182       44,435       32,143       24,668  

+ Distributed income of equity method investees

      15,337       16,959       12,650       11,613       13,013  

- Interest capitalized

      (75,192 )      (65,176 )      (51,577 )      (53,211 )      (36,060 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings available for fixed charges

      318,807       281,935       251,966       249,081       219,773  

Fixed Charges:

           

Interest and other financial charges expensed and capitalized

      79,045       70,348       67,542       58,374       51,152  

Interest factor attributed to rentals (a)

      3,233       2,604       2,211       2,167       2,133  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

      82,278       72,952       69,753       60,541       53,285  

Ratio of earnings to fixed charges (b)

      3.9x       3.9x       3.6x       4.1x       4.1x  

 

(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.