Exhibit 12.01
FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
Nine months Ended September 30, 2008 | Years Ended December 31, | |||||||||||||||||||||
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||||
Pre-tax (loss) income from continuing operations adjusted to exclude income or loss from equity investees | $ | (213,324 | ) | $ | (639,336 | ) | $ | (87,952 | ) | $ | (144,289 | ) | $ | 399,536 | $ | 225,165 | ||||||
Distributed income of equity investees | 6,800 | 2,701 | 5,097 | 32,334 | 2,141 | 553 | ||||||||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense and amortization of debt discount and premium on all indebtedness | 70,895 | 477,437 | 611,800 | 546,313 | 164,156 | 68,995 | ||||||||||||||||
Rentals: Equipment and office rent expense—33.33% | 4,053 | 7,178 | 7,301 | 6,057 | 2,798 | 1,719 | ||||||||||||||||
Total fixed charges | $ | 74,948 | $ | 484,615 | $ | 619,101 | $ | 552,370 | $ | 166,954 | $ | 70,714 | ||||||||||
Pre-tax (loss) income from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees | $ | (131,576 | ) | $ | (152,020 | ) | $ | 536,246 | $ | 440,415 | $ | 568,631 | $ | 296,432 | ||||||||
Ratio of earnings to fixed charges | (A) | (A) | (A) | (A) | 3.4 | 4.2 |
(A) | Due to the Company’s losses for the nine months ended September 30, 2008 and 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 $206,524, $606,635, $82,855 and $111,955, respectively, to achieve coverage of 1:1 in these periods. |