Exhibit 12.1
TRI Pointe Group, Inc.
Ratio of Earnings to Fixed Charges
(In Thousands, Except Ratios)
| Three Months Ended March 31, | Years Ended December 31, | |||||||||||||||||||||||
| 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before taxes, net of non-controlling interests | $ | 44,200 | $ | 319,260 | $ | 127,964 | $ | (237,454 | ) | $ | 99,629 | $ | 54,272 | |||||||||||
Adjustments to income (loss) before income taxes: | ||||||||||||||||||||||||
(Income) loss of unconsolidated entities | (701 | ) | (2,691 | ) | 288 | (2 | ) | (2,490 | ) | (1,584 | ) | |||||||||||||
Returns on investments in unconsolidated entities, net | 2,486 | — | 80 | 1,111 | 2,680 | 2,634 | ||||||||||||||||||
Fixed charges | 15,565 | 62,701 | 42,200 | 23,189 | 27,582 | 24,306 | ||||||||||||||||||
Amortization of capitalized interest | 8,830 | 45,114 | 52,747 | 36,671 | 30,292 | 23,290 | ||||||||||||||||||
Capitalized interest | (15,149 | ) | (60,964 | ) | (38,975 | ) | (19,081 | ) | (22,059 | ) | (21,520 | ) | ||||||||||||
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Income as adjusted | $ | 55,231 | $ | 363,420 | $ | 184,304 | $ | (195,566 | ) | $ | 135,634 | $ | 81,398 | |||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest expensed and capitalized | 15,149 | 60,964 | 41,706 | 22,674 | 27,038 | 23,736 | ||||||||||||||||||
Portion of rents representative of interest factor on operating leases | 416 | 1,737 | 494 | 515 | 544 | 570 | ||||||||||||||||||
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Fixed charges | $ | 15,565 | $ | 62,701 | $ | 42,200 | $ | 23,189 | $ | 27,582 | $ | 24,306 | ||||||||||||
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Ratio of earnings to fixed charges | 3.5 | 5.8 | 4.4 | — | (a) | 4.9 | 3.3 | |||||||||||||||||
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| (a) | For the year ended December 31, 2013, earnings were insufficient to cover fixed charges for such year by approximately $218.8 million. This was primarily due to $343.3 million of impairment and related charges for Coyote Springs, a large master planned community north of Las Vegas, Nevada. Under the terms of the Transaction Agreement dated as of November 3, 2013 by and among Weyerhaeuser Company, TRI Pointe, Weyerhaeuser Real Estate Company (“WRECO”), and a wholly-owned subsidiary of TRI Pointe, certain assets and liabilities of WRECO and its subsidiaries, were excluded from the transaction and retained by Weyerhaeuser, including assets and liabilities relating to Coyote Springs. |
Currently, we have no preferred stock outstanding and we have not paid any dividends on preferred stock in the periods presented. Therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.