EXHIBIT 12
The following table presents the calculations of ratio of earnings to fixed charges and ratio of earnings to combined fixed charges and preferred stock dividends for the periods shown.
IMPAC MORTGAGE HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (1)
(dollar amounts in thousands)
For the Nine Months Ended September 30, 2003 | ||||||||||||||||
For the Year Ended December 31, | ||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||
Net earnings (loss) | 97,053 | 74,917 | 33,178 | (54,233 | ) | 22,317 | (5,933 | ) | ||||||||
Add: Fixed charges (2) | 162,505 | 145,940 | 113,144 | 125,019 | 91,074 | 128,190 | ||||||||||
Net earnings (loss) plus fixed charges | 259,558 | 220,857 | 146,322 | 70,787 | 113,391 | 122,257 | ||||||||||
Fixed charges | 162,505 | 145,940 | 113,144 | 125,019 | 91,074 | 128,190 | ||||||||||
Preferred stock dividends | — | — | 1,575 | 3,150 | 3,290 | — | ||||||||||
Total fixed charges and preferred stock dividends | 162,505 | 145,940 | 114,719 | 128,169 | 94,364 | 128,190 | ||||||||||
Ratio of earnings to fixed charges | 1.60x | 1.51x | 1.29x | 0.57x | (4) | 1.25x | 0.95x | (5) | ||||||||
Ratio of earnings to combined fixed charges and preferred dividends | 1.60x | (3) | 1.51x | (3) | 1.28x | 0.55x | (4) | 1.20x | 0.95x | (5) |
(1) | Earnings used in computing the ratio of earnings to fixed charges consist of net earnings before income taxes plus fixed charges. |
(2) | Interest expense on debt and the portion of rental expense deemed to represent the interest factor. |
(3) | Impac Mortgage Holdings, Inc. did not have any preferred stock outstanding during the nine months ended September 30, 2003 and the year ended December 31, 2002. |
(4) | Earnings were insufficient to cover fixed charges. The amount of the coverage deficiency for the year ended December 31, 2000 was $54.2 million, which represented the Company’s net loss. |
(5) | Earnings were insufficient to cover fixed charges. The amount of the coverage deficiency for the year ended December 31, 1998 was $5.9 million, which represented the Company’s net loss. There were no preferred stock dividends due or paid during the year ended December 31, 1998. |