Exhibit 12.1
Calculation of Ratio of Earnings to Total Fixed Charges
The following table sets forth information regarding our ratio of earnings to fixed charges for each of the periods shown.
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, | | Year Ended December 31, |
| | 2017 | | 2016 | | 2015 | | 2014 | | 2013(b) | | 2012(b) |
| (Dollars in thousands) | | | | | | | | | | | |
| Income (loss) before income taxes | $ | 10,839 |
| | $ | 33,950 |
| | $ | 33,911 |
| | $ | 5,003 |
| | $ | 6,996 |
| | $ | (1,281 | ) |
| Equity in (income)/loss of unconsolidated joint ventures | (606 | ) | | (7,691 | ) | | (13,767 | ) | | (8,443 | ) | | (4,735 | ) | | (349 | ) |
| | 10,233 |
| | 26,259 |
| | 20,144 |
| | (3,440 | ) | | 2,261 |
| | (1,630 | ) |
| Add/(deduct): | | | | | | | | | | | |
| + Fixed charges | 15,499 |
| | 7,849 |
| | 5,011 |
| | 2,091 |
| | 1,209 |
| | 720 |
|
| + Amortization of previously capitalized interest | 5,724 |
| | 5,331 |
| | 2,596 |
| | 532 |
| | 550 |
| | 328 |
|
| + Distributed income from unconsolidated joint ventures | 1,588 |
| | 3,742 |
| | 18,477 |
| | 6,040 |
| | 6,930 |
| | 452 |
|
| Less: capitalized interest | (15,217 | ) | | (7,484 | ) | | (4,722 | ) | | (1,857 | ) | | (1,060 | ) | | (639 | ) |
| Earnings available for fixed charges | $ | 17,827 |
| | $ | 35,697 |
| | $ | 41,506 |
| | $ | 3,366 |
| | $ | 9,890 |
| | $ | (769 | ) |
| | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | |
| Interest incurred | $ | 15,217 |
| | $ | 7,484 |
| | $ | 4,722 |
| | $ | 1,857 |
| | $ | 1,060 |
| | $ | 639 |
|
| Rental expense interest factor | $ | 282 |
| | $ | 365 |
| | $ | 289 |
| | $ | 234 |
| | $ | 149 |
| | $ | 81 |
|
| Total fixed charges | $ | 15,499 |
| | $ | 7,849 |
| | $ | 5,011 |
| | $ | 2,091 |
| | $ | 1,209 |
| | $ | 720 |
|
| | | | | | | | | | | | |
| Ratio of earnings to fixed charges (a) | 1.15x |
| | 4.55 | x | | 8.28 | x | | 1.61 | x | | 8.18 | x | | — |
|
| Excess of fixed charges to earnings | $ | — |
| | — |
| | — |
| | — |
| | — |
| | (1,489 | ) |
| | | | | | | | | | | | |
| (a) 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. | | | | |
(b) We completed our initial public offering on January 30, 2014. Data presented for the years prior to 2014 represent our results operating as The New Home Company LLC as a private company.
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