Exhibit 12.01
Friedman, Billings, Ramsey Group, Inc.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| 2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 225,165 | $ | 42,229 | $ | (18,457 | ) | $ | 1,000 | $ | (16,515 | ) | |||||
Distributed income of equity investees | 553 | 14,089 | 10,747 | 12,036 | 2,590 | ||||||||||||
Fixed charges: | |||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 68,995 | 2,073 | 1,083 | 1,665 | 1,323 | ||||||||||||
Rentals: Equipment and office rent expense – 33.33% | 1,719 | 1,692 | 1,657 | 1,305 | 1,135 | ||||||||||||
Total fixed charges | $ | 70,714 | $ | 3,765 | $ | 2,740 | $ | 2,970 | $ | 2,458 | |||||||
Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees | $ | 296,432 | $ | 60,083 | $ | (4,970 | ) | $ | 16,006 | $ | (11,467 | ) | |||||
Ratio of earnings to fixed charges | 4.2 | 16.0 | (A) | 5.4 | (A) | ||||||||||||
(A) Due to the company's losses in 2001 and 1999, the ratio coverage in these years was less than 1:1. The company would have had to generate additional earnings of $7,710 and $13,925, respectively, to achieve coverage of 1:1 in these years.
