Exhibit 12.1
M/I Homes, Inc.
Computation of Ratio of Earnings to Fixed Charges
| Fiscal Year Ended December 31, | ||||||||||||||||||||
(Dollars in Thousands) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Earnings: | ||||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | (27,404 | ) | $ | (92,989 | ) | $ | (215,124 | ) | $ | (150,876 | ) | $ | 45,306 | ||||||
Add: | ||||||||||||||||||||
Loss (income) of unconsolidated joint ventures | (276 | ) | 1 | (158 | ) | 892 | 60 | |||||||||||||
Fixed charges from below | 21,026 | 20,186 | 24,023 | 38,394 | 44,986 | |||||||||||||||
Interest amortized to cost of sales | 13,339 | 11,720 | 12,969 | 18,397 | 12,241 | |||||||||||||||
Less: | ||||||||||||||||||||
Interest capitalized | (9,744 | ) | (9,552 | ) | (9,593 | ) | (18,118 | ) | (24,946 | ) | ||||||||||
Total (loss) earnings (a) | $ | (3,059 | ) | $ | (70,634 | ) | $ | (187,883 | ) | $ | (111,311 | ) | $ | 77,647 | ||||||
Fixed charges: | ||||||||||||||||||||
Interest incurred (a) | $ | 16,286 | $ | 14,838 | $ | 18,174 | $ | 31,391 | $ | 39,071 | ||||||||||
Amortization of debt costs | 2,873 | 3,181 | 2,616 | 2,070 | 1,682 | |||||||||||||||
Rental expense interest factor | 1,867 | 2,167 | 3,233 | 4,933 | 4,233 | |||||||||||||||
Total fixed charges | $ | 21,026 | $ | 20,186 | $ | 24,023 | $ | 38,394 | $ | 44,986 | ||||||||||
Ratio of earnings to fixed charges | — | — | — | — | 1.7 | |||||||||||||||
Coverage deficiency | $ | 24,085 | $ | 90,820 | $ | 211,906 | $ | 149,705 | — | |||||||||||
| (a) | The Company records interest accrued on certain tax positions in income tax (benefit) provision. Interest included in “fixed charges” is only interest on third party indebtedness, and interest expense accrued on uncertain tax positions is excluded from the calculation of “earnings.” |
The ratio of earnings to fixed charges is determined by dividing earnings by fixed charges. Earnings consists of (loss) income from continuing operations before income taxes, loss (income) of unconsolidated joint ventures, fixed charges and interest amortized to cost of sales, excluding capitalized interest. Fixed charges consists of interest incurred, amortization of debt costs and that portion of operating lease rental expense (33%) deemed to be representative of interest.