1
Exhibit 12
ADVANTA CORP. AND SUBSIDIARIES
Statement setting forth details of computation of ratio
of earnings to fixed charges
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
($ in thousands) For The Years Ended December 31,
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2000 1999 1998 1997 1996
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Income from continuing operations $ 11,192 $ 41,334 $ 408,604 $ 25,920 $ 136,117
Federal and state income tax expense (benefit) 0 (55,785) (25,748) 19,664 83,103
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Earnings (loss) before income tax expense (benefit) 11,192 (14,451) 382,856 (A) 45,584 219,220
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Fixed charges:
Interest 86,508 80,800 101,226 266,118 240,948
One-third of all rentals 1,853 1,759 1,366 2,721 1,741
Preferred stock dividend of
subsidiary trust 8,990 8,990 8,990 8,990 350
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Total fixed charges 97,351 91,549 111,582 277,829 243,039
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Earnings (loss) before income
tax expense (benefit) and fixed charges $ 108,543 $ 77,098 $ 494,438 $ 323,413 $ 462,259
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Ratio of earnings to fixed
charges (B) 1.11x N/M (C) 4.43x 1.16x 1.90x
(A) Earnings before income taxes in 1998 included a $541.3 million gain on the
transfer of the consumer credit card business and $125.1 million of unusual
charges including severance and outplacement costs associated with
workforce reduction, option exercise and other employee costs associated
with the Consumer Credit Card Transaction/Tender Offer; expense associated
with exited businesses/products; and asset impairment.
(B) For purposes of computing these ratios, "earnings" represent income from
continuing operations before income taxes plus fixed charges. "Fixed
charges" consist of interest expense, one-third (the portion deemed
representative of the interest factor) of rental expense on operating
leases, and preferred stock dividends of subsidiary trust.
(C) The ratio calculated in the year ended December 31, 1999 is less than 1.00
and therefore, not meaningful. In order to achieve a ratio of 1.00,
earnings before income taxes and fixed charges would need to increase by
$14,451 for the year ended December 31, 1999.