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WCI Communities, Inc.
Statement of the Computation of the Ratio of Earnings To Fixed Charges
Three Years Ended December 31, 2013
($ in thousands)
(Unaudited)
| | Year Ended December 31, 2013 (Pro Forma)(A) | Years Ended December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2013 | 2012 | 2011 | ||||||||||
Earnings | |||||||||||||
Income (loss) from continuing operations before income taxes | $ | 21,128 | $ | 20,776 | $ | (4,305 | ) | $ | (54,453 | ) | |||
Fixed charges | 12,730 | 15,143 | 17,016 | 19,246 | |||||||||
Amortization of capitalized interest | 4,257 | 4,257 | 2,304 | 988 | |||||||||
Capitalized interest | (9,680 | ) | (11,741 | ) | (9,249 | ) | (1,261 | ) | |||||
Distributions in excess of (less than) earnings for equity method investees | 123 | 123 | (9 | ) | 43 | ||||||||
| | | | | | | | | | | | | | |
Total earnings (loss), as adjusted | $ | 28,558 | $ | 28,558 | $ | 5,757 | $ | (35,437 | ) | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Fixed Charges | |||||||||||||
Interest incurred, both expensed and capitalized | $ | 11,865 | $ | 14,278 | $ | 16,227 | $ | 18,215 | |||||
Interest portion of rental expense | 865 | 865 | 789 | 1,031 | |||||||||
| | | | | | | | | | | | | | |
Total fixed charges | $ | 12,730 | $ | 15,143 | $ | 17,016 | $ | 19,246 | |||||
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| | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | 2.2 | 1.9 | (B) | (B) | |||||||||
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- (A)
- The pro forma ratio of earnings to fixed charges for the year ended December 31, 2013 assumes that, effective January 1, 2013, our variable-rate Senior Secured Term Notes due 2017 in the principal amount of $125.0 million were replaced with a like amount of our 6.875% Senior Notes due 2021.
- (B)
- Total earnings (loss), as adjusted, was inadequate to cover fixed charges for the years ended December 31, 2012 and 2011. Additional earnings of approximately $11.3 million and $54.7 million, respectively, would have been necessary to eliminate the respective deficits and bring the ratio of earnings to fixed charges to 1.0.
WCI Communities, Inc. Statement of the Computation of the Ratio of Earnings To Fixed Charges Three Years Ended December 31, 2013 ($ in thousands) (Unaudited)