EXHIBIT 12 ENCOMPASS SERVICES CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (in thousands, except ratios) (Unaudited) Nine months ended Years ended December 31, September 30, ------------------------------------- ----------------- 1996 1997 1998 1999 2000 2000 2001 ---- ------ ------- -------- -------- -------- -------- Earnings available for fixed charges: Income from continuing operations before income tax provision............. $428 $1,537 $83,583 $ 95,089 $117,340 $ 77,114 $ 36,702 Fixed Charges.......... 395 321 3,587 39,651 102,126 74,606 75,322 ---- ------ ------- -------- -------- -------- -------- Total................ $823 $1,858 $87,170 $134,740 $219,466 $151,720 $112,024 ==== ====== ======= ======== ======== ======== ======== Fixed Charges: Interest expense (a)... $224 $ 208 $ 1,054 $ 35,618 $ 88,101 $ 63,717 $ 63,157 Interest portion of rent expense (b)...... 171 113 2,533 4,033 14,025 10,889 12,165 ---- ------ ------- -------- -------- -------- -------- Total................ $395 $ 321 $ 3,587 $ 39,651 $102,126 $ 74,606 $ 75,322 ==== ====== ======= ======== ======== ======== ======== Ratio of earnings to fixed charges.......... 2.08 5.79 24.30 3.40 2.15 2.03 1.49 - -------- (a) Includes amortization of deferred debt issuance costs and original issue discount. (b) Interest portion of rent expense is estimated at one-third of rent expense.