Exhibit 12.1
IMPAC MORTGAGE HOLDINGS, INC.
RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollar amounts in thousands)
The following table displays our ratios of earnings to combined fixed charges and preferred stock dividends for the periods shown (1) (2):
For the Nine Months Ended September 30, 2004 | For the Year Ended December 31, | |||||||||||||||
2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||
(as restated, all periods) | ||||||||||||||||
Net earnings (loss) | 141,314 | 153,089 | 41,918 | (12,788 | ) | (78,920 | ) | 6,591 | ||||||||
Add: Fixed charges | 252,595 | 209,470 | 127,851 | 108,224 | 124,108 | 89,429 | ||||||||||
Net earnings (loss) plus fixed charges | 393,909 | 362,559 | 169,769 | 95,436 | 45,188 | 96,020 | ||||||||||
Fixed charges | 252,595 | 209,470 | 127,851 | 108,224 | 124,108 | 89,429 | ||||||||||
Preferred stock dividends (3) | 1,615 | — | — | 1,575 | 3,150 | 3,290 | ||||||||||
Total fixed charges and preferred stock dividends | 254,210 | 209,470 | 127,851 | 109,799 | 127,258 | 92,719 | ||||||||||
Ratio of earnings to combined fixed charges and preferred dividends (4) | 1.55x | 1.73x | (3) | 1.33x | (3) | — | (4) | — | (4) | 1.04x |
(1) | Earnings used in computing the ratio of earnings to combined fixed charges and preferred stock dividends consist of net earnings before income taxes plus fixed charges. Fixed charges include interest expense on debt and the portion of rental expense deemed to represent the interest factor. |
(2) | Ratio of earnings to fixed charges and preferred stock dividends has been restated to reflect accounting restatements and reclassifications for prior periods. In addition, prior to the consolidation of IFC on July 1, 2003, the method used to calculate the ratio of earnings to fixed charges and preferred stock dividends reflects the consolidated net earnings of IMH less net earnings of IFC plus dividend distributions from IFC to IMH. |
(3) | No preferred stock dividends were paid during this period. |
(4) | Earnings were insufficient to cover fixed charges during this period. The amount of the deficiency for the year ended December 31, 2001 and 2000 was $12.8 million and $78.9 million, respectively. |