Exhibit 12
Friedman, Billings, Ramsey Group, Inc.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| Three Months | ||||||||||||||||||||||||
| Ended March 31, 2003 | 2002 | 2001 | 2000 | 1999 | 1998 | |||||||||||||||||||
| Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 6,315 | $ | 42,229 | $ | (18,457 | ) | $ | 1,000 | $ | (16,515 | ) | $ | (14,051 | ) | |||||||||
| Distributed income of equity investees | $ | 44 | $ | 14,089 | $ | 10,747 | $ | 12,036 | $ | 2,590 | $ | 1,353 | ||||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Interest expense and amortization of debt discount and premium on all indebtedness | $ | 1,646 | $ | 2,073 | $ | 1,083 | $ | 1,665 | $ | 1,323 | $ | 4,927 | ||||||||||||
| Rentals: Equipment and office rent expense - 33.33% | 411 | 1,692 | 1,657 | 1,305 | 1,135 | 810 | ||||||||||||||||||
| Total fixed charges | $ | 2,057 | $ | 3,765 | $ | 2,740 | $ | 2,970 | $ | 2,458 | $ | 5,737 | ||||||||||||
| Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investments, plus distributed income of equity investees and fixed charges | $ | 8,416 | $ | 60,083 | $ | (4,970 | ) | $ | 16,006 | $ | (11,467 | ) | $ | (6,961 | ) | |||||||||
| Ratio of earnings to fixed charges | 4.1 | 16.0 | (A) | 5.4 | (A) | (A) | ||||||||||||||||||
(A) Due to the company’s losses in 2001, 1999 and 1998, the ratio coverage in these years was less than 1:1. The company must generate additional earnings of $7,710, $13,925 and $12,698, respectively, to achieve coverage of 1:1 in these years.
