Exhibit 12.01
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
Three Months Ended March 31, 2004 | Years Ended December 31, | ||||||||||||||||||
2003 | 2002 | 2001 | 2000 | 1999 | |||||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 99,538 | $ | 225,165 | $ | 42,229 | $ | (18,457 | ) | $ | 1,000 | $ | (16,515) | ||||||
Distributed income of equity investees | 1,013 | 553 | 14,089 | 10,747 | 12,036 | 2,590 | |||||||||||||
Fixed charges: | |||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 32,066 | 68,995 | 2,073 | 1,083 | 1,665 | 1,323 | |||||||||||||
Rentals: Equipment and office rent expense— 33.33% | 490 | 1,719 | 1,692 | 1,657 | 1,305 | 1,135 | |||||||||||||
Total fixed charges | $ | 32,556 | $ | 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 | $ | 133,106 | $ | 296,432 | $ | 60,083 | $ | (4,970 | ) | $ | 16,006 | $ | (11,467) | ||||||
Ratio of earnings to fixed charges | 4.1 | 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. |