Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
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| Six Months |
| Years Ended December 31, |
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| June 30, 2008 |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
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| (in thousands) |
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(Loss)/Income from continuing operations before income taxes and minority interest |
| $ | (104,944 | ) | $ | (456,482 | ) | $ | 364,009 |
| $ | 416,225 |
| $ | 224,758 |
| $ | 151,460 |
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Loss/(Income) from equity method investees |
| 15,618 |
| 40,229 |
| (20,364 | ) | (18,337 | ) | (2,788 | ) | (1,743 | ) | ||||||
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| (89,326 | ) | (416,253 | ) | 343,645 |
| 397,888 |
| 221,970 |
| 149,717 |
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Add/(deduct): |
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+ Fixed charges |
| 26,832 |
| 66,909 |
| 56,730 |
| 46,934 |
| 41,755 |
| 29,280 |
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+ Amortization of capitalized interest |
| 17,827 |
| 47,051 |
| 42,986 |
| 38,796 |
| 32,228 |
| 22,287 |
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+ Distributed income of equity method investees |
| 5,361 |
| 15,929 |
| 17,126 |
| 16,140 |
| 3,698 |
| — |
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- Interest capitalized |
| (13,266 | ) | (55,431 | ) | (52,063 | ) | (43,034 | ) | (38,855 | ) | (26,580 | ) | ||||||
Earnings for fixed charges |
| $ | (52,572 | ) | $ | (341,795 | ) | $ | 408,424 |
| $ | 456,724 |
| $ | 260,796 |
| $ | 174,704 |
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Fixed Charges: |
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Interest and other financial charges expensed and capitalized |
| $ | 24,465 |
| $ | 62,176 |
| $ | 52,063 |
| $ | 43,034 |
| $ | 38,855 |
| $ | 26,580 |
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Interest factor attributed to rentals (a) |
| 2,367 |
| 4,733 |
| 4,667 |
| 3,900 |
| 2,900 |
| 2,700 |
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Total fixed charges |
| $ | 26,832 |
| $ | 66,909 |
| $ | 56,730 |
| $ | 46,934 |
| $ | 41,755 |
| $ | 29,280 |
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Ratio of earnings to fixed charges |
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| (b) |
| (b) | 7.2 |
| 9.7 |
| 6.2 |
| 6.0 |
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(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 $79.4 million and $408.7 million for the six months ended June 30, 2008 and the year ended December 31, 2007, respectively.
