Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Income/(Loss) from continuing operations before income taxes and minority interest | $ | 111,793 | $ | 28,854 | $ | (20,376 | ) | $ | 2,484 | $ | (154,799 | ) | $ | (275,966 | ) | |||||||||
(Income)/Loss from equity method investees | (9,555 | ) | (10,233 | ) | (5,849 | ) | (5,243 | ) | (4,013 | ) | 17,038 | |||||||||||||
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| 102,238 | 18,621 | (26,225 | ) | (2,759 | ) | (158,812 | ) | (258,928 | ) | |||||||||||||||
Add/(deduct): | ||||||||||||||||||||||||
+ Fixed Charges | 39,403 | 47,968 | 45,441 | 45,936 | 50,123 | 53,526 | ||||||||||||||||||
+ Amortization of Capitalized Interest | 17,365 | 15,101 | 9,863 | 12,228 | 25,951 | 37,233 | ||||||||||||||||||
+ Distributed income of equity method investees | 10,796 | 9,648 | 6,497 | 7,263 | 8,286 | 10,049 | ||||||||||||||||||
- Interest capitalized | (24,763 | ) | (21,891 | ) | (12,994 | ) | (9,720 | ) | (10,359 | ) | (25,606 | ) | ||||||||||||
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Earnings available for fixed charges | $ | 145,039 | $ | 69,447 | $ | 22,582 | $ | 52,948 | $ | (84,811 | ) | $ | (183,726 | ) | ||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest and other financial charges expensed and capitalized | 37,876 | 46,135 | 43,393 | 43,442 | 46,890 | 49,259 | ||||||||||||||||||
Interest factor attributed to rentals(a) | 1,527 | 1,833 | 2,048 | 2,494 | 3,233 | 4,267 | ||||||||||||||||||
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Total Fixed Charges | $ | 39,403 | $ | 47,968 | $ | 45,441 | $ | 45,936 | $ | 50,123 | $ | 53,526 | ||||||||||||
Ratio of earnings to fixed charges | 3.7x | 1.4x | 0.5x | 1.2x | (b | ) | (b | ) | ||||||||||||||||
| (a) | The interest factor attributable to rentals consists of one-third of rental charges, which is deemed by the Company to be representative of the interest factor inherent in rent. |
| (b) | Earnings were not adequate to cover fixed charges by $134.9M and $237.3M million for the years ended December 31, 2009 and 2008, respectively. |