Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)
| Year Ended December 31, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
(Loss)/Income from continuing operations before income taxes and minority interest | (20,376 | ) | 2,484 | (154,799 | ) | (275,966 | ) | $ | (456,482 | ) | ||||||||||
Loss/(Income) from equity method investees | (5,849 | ) | (5,243 | ) | (4,013 | ) | 17,038 | 40,229 | ||||||||||||
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| (26,225 | ) | (2,759 | ) | (158,812 | ) | (258,928 | ) | (416,253 | ) | |||||||||||
Add/(deduct): | ||||||||||||||||||||
+ Fixed Charges | 45,441 | 45,936 | 50,123 | 53,526 | 67,109 | |||||||||||||||
+ Amortization of Capitalized Interest | 9,863 | 12,228 | 25,951 | 37,233 | 47,051 | |||||||||||||||
+ Distributed income of equity method investees | 6,497 | 7,263 | 8,286 | 10,049 | 15,929 | |||||||||||||||
- Interest capitalized | (12,994 | ) | (9,720 | ) | (10,359 | ) | (25,606 | ) | (55,431 | ) | ||||||||||
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Earnings available for fixed charges | $ | 22,582 | $ | 52,948 | $ | (84,811 | ) | $ | (183,726 | ) | $ | (341,595 | ) | |||||||
Fixed Charges: | ||||||||||||||||||||
Interest and other financial charges expensed and capitalized | 43,393 | 43,442 | 46,890 | 49,259 | $ | 62,176 | ||||||||||||||
Interest factor attributed to rentals(a) | 2,048 | 2,494 | 3,233 | 4,267 | 4,933 | |||||||||||||||
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Fixed Charges | $ | 45,441 | $ | 45,936 | $ | 50,123 | $ | 53,526 | $ | 67,109 | ||||||||||
Ratio of earnings to fixed charges (b) | 0.5 | x(c) | 1.2 | x | (c) | (c) | (c) | |||||||||||||
| (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) | There was no outstanding preferred stock during the periods presented; therefore, the ratio of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends were the same. |
| (c) | Earnings were not adequate to cover fixed charges by $22.9 million, $134.9 million, $237.3 million and $408.7 million for the years ended December 31, 2011, 2009, 2008 and 2007, respectively. |