Exhibit 12.1
Meritage Homes Corporation
Calculation of Ratio of Earnings to Total Fixed Charges
(Dollars in thousands)
| Six Months Ended June 30, 2017 | Year Ended December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||||
Income from continuing operations before income taxes and minority interest | $ | 99,974 | 218,060 | 189,464 | 208,417 | 177,672 | 28,854 | |||||||||||||||||
Loss/(Income) from equity method investees | (7,127 | ) | (19,042 | ) | (12,759 | ) | (10,422 | ) | (12,805 | ) | (10,233 | ) | ||||||||||||
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| $ | 92,847 | 199,018 | 176,705 | 197,995 | 164,867 | 18,621 | ||||||||||||||||||
Add/(deduct): | ||||||||||||||||||||||||
+ Fixed Charges | $ | 38,695 | 72,952 | 69,753 | 60,541 | 53,285 | 47,968 | |||||||||||||||||
+ Amortization of Capitalized Interest | 30,599 | 58,182 | 44,435 | 32,143 | 24,668 | 15,101 | ||||||||||||||||||
+ Distributed income of equity method investees | 7,962 | 16,959 | 12,650 | 11,613 | 13,013 | 9,648 | ||||||||||||||||||
- Interest capitalized | (34,730 | ) | (65,178 | ) | (51,577 | ) | (53,211 | ) | (36,060 | ) | (21,891 | ) | ||||||||||||
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Earnings available for fixed charges | $ | 135,373 | 281,933 | 251,966 | 249,081 | 219,773 | 69,447 | |||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest and other financial charges expensed and capitalized | $ | 37,175 | 70,348 | 67,542 | 58,374 | 51,152 | 46,135 | |||||||||||||||||
Interest factor attributed to rentals (a) | 1,520 | 2,604 | 2,211 | 2,167 | 2,133 | 1,833 | ||||||||||||||||||
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Fixed Charges | $ | 38,695 | 72,952 | 69,753 | 60,541 | 53,285 | 47,968 | |||||||||||||||||
Ratio of earnings to fixed charges (b) | 3.5x | 3.9x | 3.6x | 4.1x | 4.1x | 1.4x | ||||||||||||||||||
| (a) | The interest factor attributable to rentals consists ofone-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. |
Pro Forma Calculation of Ratio of Earnings to Total Fixed Charges
(Dollars in thousands)
| Six Months Ended June 30, 2017 | Year Ended December 31, 2016 | |||||||
Income from continuing operations before income taxes and minority interest | $ | 94,590 | 204,089 | |||||
Loss/(Income) from equity method investees | (7,127 | ) | (19,042 | ) | ||||
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| $ | 87,463 | 185,047 | ||||||
Add/(deduct): | ||||||||
+ Fixed Charges | $ | 43,515 | 86,870 | |||||
+ Amortization of Capitalized Interest | 30,599 | 58,182 | ||||||
+ Distributed income of equity method investees | 7,962 | 16,959 | ||||||
- Interest capitalized | (39,550 | ) | (79,094 | ) | ||||
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Earnings available for fixed charges | $ | 130,189 | $ | 267,964 | ||||
Fixed Charges: | ||||||||
Interest and other financial charges expensed and capitalized | $ | 41,995 | 84,266 | |||||
Interest factor attributed to rentals (a) | 1,520 | 2,604 | ||||||
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Fixed Charges | $ | 43,515 | 86,870 | |||||
Ratio of earnings to fixed charges (b) | 3.0x | 3.1x | ||||||
| (a) | The interest factor attributable to rentals consists ofone-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. |