Exhibit 12.1
STATEMENT REGARDING THE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the historical ratios of earnings to fixed charges for The New Home Company Inc. and its consolidated subsidiaries for the periods indicated.
| Predecessor | The New Home Company LLC | The New Home Company Inc. | ||||||||||||||||||||||||||
| Period from January 1, 2010 through August 17, 2010 | Period from August 18, 2010 (inception) through December 31, 2010 |
Year Ended December 31, | Three months ended March 31, 2015 | |||||||||||||||||||||||||
| 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expensed and capitalized | $ | 43,367 | $ | 220,081 | $ | 388,282 | $ | 639,103 | $ | 1,059,875 | $ | 1,856,781 | $ | 878,637 | ||||||||||||||
Rent expense considered to be interest | 1,810 | 1,924 | 5,245 | 7,327 | 15,000 | 21,000 | 5,864 | |||||||||||||||||||||
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Fixed charges | $ | 45,177 | $ | 222,005 | $ | 393,527 | $ | 646,430 | $ | 1,074,875 | $ | 1,877,781 | $ | 884,501 | ||||||||||||||
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Earnings: | ||||||||||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | (153,129 | ) | $ | (253,276 | ) | $ | (2,318,319 | ) | $ | (1,280,620 | ) | $ | 6,995,891 | $ | 5,003,493 | $ | 7,430,411 | ||||||||||
Cash distributions of income from unconsolidated joint ventures | — | — | — | 451,504 | 6,930,433 | 6,039,606 | 2,702,202 | |||||||||||||||||||||
Less (income) loss from unconsolidated joint ventures | — | — | 38,916 | (349,445 | ) | (4,735,224 | ) | (8,443,136 | ) | (1,867,899 | ) | |||||||||||||||||
Interest amortized to cost of sales | — | 43,398 | 425,704 | 328,245 | 549,971 | 532,286 | 359,050 | |||||||||||||||||||||
Rent expense considered to be interest | 1,810 | 1,924 | 5,245 | 7,327 | 15,000 | 21,000 | 5,864 | |||||||||||||||||||||
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Total of earnings | $ | (151,319 | ) | $ | (207,954 | ) | $ | (1,848,454 | ) | $ | (842,989 | ) | $ | 9,756,071 | $ | 3,153,249 | $ | 8,629,628 | ||||||||||
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Ratio of earnings from continuing operations to fixed charges | — | — | — | — | 9.08x | 1.68x | 9.76x | |||||||||||||||||||||
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Excess of fixed charges to earnings | $ | (196,496 | ) | $ | (429,959 | ) | $ | (2,241,981 | ) | $ | (1,489,419 | ) | N/A | N/A | N/A | |||||||||||||
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For the periods indicated above, there were no outstanding shares of preferred stock with required dividend payments. Therefore, the ratios of earnings to combined fixed charges and preferred stock dividends are identical to the ratios presented in the tables above.
