Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
| Year Ended December 31, | ||||||||||||||||||||||||
| Six months ended June 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
(Loss)/Income from continuing operations before income taxes and minority interest | $ | (1,732 | ) | $ | (20,376 | ) | $ | 2,484 | $ | (154,799 | ) | $ | (275,966 | ) | $ | (456,482 | ) | |||||||
Loss/(Income) from equity method investees | (3,651 | ) | (5,849 | ) | (5,243 | ) | (4,013 | ) | 17,038 | 40,229 | ||||||||||||||
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| $ | (5,383 | ) | $ | (26,225 | ) | $ | (2,759 | ) | $ | (158,812 | ) | $ | (258,928 | ) | $ | (416,253 | ) | |||||||
Add/(deduct): | ||||||||||||||||||||||||
+ Fixed Charges | $ | 23,102 | $ | 45,441 | $ | 45,936 | $ | 50,123 | $ | 53,526 | $ | 67,109 | ||||||||||||
+ Amortization of Capitalized Interest | 5,430 | 9,863 | 12,228 | 25,951 | 37,233 | 47,051 | ||||||||||||||||||
+ Distributed income of equity method investees | 2,995 | 6,497 | 7,263 | 8,286 | 10,049 | 15,929 | ||||||||||||||||||
- Interest capitalized | (8,456 | ) | (12,994 | ) | (9,720 | ) | (10,359 | ) | (25,606 | ) | (55,431 | ) | ||||||||||||
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Earnings available for fixed charges: | $ | 17,688 | $ | 22,582 | $ | 52,948 | $ | (84,811 | ) | $ | (183,726 | ) | $ | (341,595 | ) | |||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest and other financial charges expensed and capitalized | $ | 22,165 | $ | 43,393 | $ | 43,442 | $ | 46,890 | $ | 49,259 | $ | 62,176 | ||||||||||||
Interest factor attributed to rentals (a) | 937 | 2,048 | 2,494 | 3,233 | 4,267 | 4,933 | ||||||||||||||||||
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Total Fixed Charges: | $ | 23,102 | $ | 45,441 | $ | 45,936 | $ | 50,123 | $ | 53,526 | $ | 67,109 | ||||||||||||
Ratio of earnings to fixed charges: | 0.8 | x | 0.5 | x | 1.2 | x | (b | ) | (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 $134.9 million, $237.3 million and $408.7 million for the years ended December 31, 2009, 2008 and 2007, respectively.
