Exhibit 12.01
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
Three months Ended March 31, 2008 | Years Ended December 31, | ||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||
Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees | $ | 41,597 | $ | (639,336 | ) | $ | (87,952 | ) | $ | (144,289 | ) | $ | 399,536 | $ | 225,165 | ||||||
Distributed income of equity investees | 156 | 2,701 | 5,097 | 32,334 | 2,141 | 553 | |||||||||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 23,650 | 477,437 | 611,800 | 546,313 | 164,156 | 68,995 | |||||||||||||||
Rentals: Equipment and office rent expense—33.33% | 1,199 | 7,178 | 7,301 | 6,057 | 2,798 | 1,719 | |||||||||||||||
Total fixed charges | $ | 24,849 | $ | 484,615 | $ | 619,101 | $ | 552,370 | $ | 166,954 | $ | 70,714 | |||||||||
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 | $ | 66,602 | $ | (152,020 | ) | $ | 536,246 | $ | 440,415 | $ | 568,631 | $ | 296,432 | ||||||||
Ratio of earnings to fixed charges | 2.7 | (A) | (A) | (A) | 3.4 | 4.2 |
(A) | Due to the Company’s losses for the years ended December 31, 2007, 2006 and 2005, the ratio coverage for these periods was less than 1:1. The Company would have had to generate additional earnings $636,635, $82,855 and $111,955, respectively, to achieve coverage of 1:1 in these periods. |