Headwaters 10-Q 2009 Q3 Quarterly report

Exhibit 12

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

												Nine Months Ended June 30, 2009
	Year Ended September 30,
(in thousands)	2004		2005		2006		2007		2008
Fixed Charges Computation
Interest expensed and capitalized (1)	$	13,857	$	49,043	$	35,119	$	29,671	$	23,205		$	24,083
Amortized premiums, discounts, and capitalized expenses related to indebtedness		6,031		10,634		2,843		5,318		2,773			4,436
Reasonable approximation of interest within rental expense		1,462		2,433		3,092		3,440		3,499			2,744
Total Fixed Charges and Preferred Equity Dividends	$	21,350	$	62,110	$	41,054	$	38,429	$	29,477		$	31,263
Earnings Computation
Pre-tax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees	$	105,107	$	163,808	$	137,816	$	59,236	$	(161,874	)	$	(479,618	)
Plus
Fixed charges		21,350		62,110		41,054		38,429		29,477			31,263
Minus
Interest capitalized		435		464		1,027		784		894			875
Total Earnings	$	126,022	$	225,454	$	177,843	$	96,881	$	(133,291	)	$	(449,230	)
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends		5.90		3.63		4.33		2.52		N/A	*		N/A	*

* Total earnings for these periods were less than zero dollars. The deficiency of earnings to fixed charges for the year ended September 30, 2008 was $162.8 million and the deficiency of earnings to fixed charges for the nine months ended June 30, 2009 was $480.5 million.

(1) Interest expense associated with unrecognized tax benefits is included in income tax expense, not with interest expense.