Exhibit 12.01
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
Three months Ended March 31, 2007 | Years Ended December 31, | ||||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | (215,453 | ) | $ | (87,952 | ) | $ | (144,289 | ) | $ | 399,536 | $ | 225,165 | $ | 42,229 | ||||||
Distributed income of equity investees | 1,911 | 5,097 | 32,334 | 2,141 | 553 | 14,089 | |||||||||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 169,551 | 611,800 | 546,313 | 164,156 | 68,995 | 2,073 | |||||||||||||||
Rentals: Equipment and office rent expense—33.33% | 1,964 | 7,301 | 6,057 | 2,798 | 1,719 | 1,692 | |||||||||||||||
Total fixed charges | $ | 171,515 | $ | 619,101 | $ | 552,370 | $ | 166,954 | $ | 70,714 | $ | 3,765 | |||||||||
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 | $ | (42,027 | ) | $ | 536,246 | $ | 440,415 | $ | 568,631 | $ | 296,432 | $ | 60,083 | ||||||||
Ratio of earnings to fixed charges | (A | ) | (A | ) | (A | ) | 3.4 | 4.2 | 16.0 |
(A) | Due to the company’s losses for the three months ended 2007 and years-ended December 31, 2006 and 2005, the ratio coverage for these periods was less than 1:1. The company would have had to generate additional earnings of $213,542, $82,855, $111,955 to achieve coverage of 1:1 in these years. |