1 EXHIBIT 12.1 MAXXAM GROUP HOLDINGS INC. CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES NINE MONTHS ENDED SEPTEMBER 30, YEARS ENDED DECEMBER 31, --------------- ------------------------------------------------ 1996 1995 1995 1994 1993 1992 1991 ----- ----- ----- ----- ------ ------ ------ (IN MILLIONS OF DOLLARS) Historical: Earnings are calculated as follows: Income (loss) before income taxes, minority interests, extraordinary item and cumulative effect of changes in accounting principles................ $ 3.4 $ 2.3 $ 5.9 $16.1 $(17.7) $(10.7) $ 42.1 Add (deduct): Fixed charges as calculated below........ 58.8 58.4 78.0 77.5 81.9 91.4 94.2 ----- ----- ----- ----- ------ ------ ------ $62.2 $60.7 $83.9 $93.6 $ 64.2 $ 80.7 $136.3 ===== ===== ===== ===== ====== ====== ====== Fixed charges are calculated as follows: Interest expense............. $56.1 $56.1 $74.9 $74.6 $ 78.5 $ 89.5 $ 94.2 Amortization of deferred financing costs........... 2.3 2.1 2.9 2.8 3.4 1.9 -- Interest component of rental expense................... .4 .2 .2 .1 -- -- -- ----- ----- ----- ----- ------ ------ ------ $58.8 $58.4 $78.0 $77.5 $ 81.9 $ 91.4 $ 94.2 ===== ===== ===== ===== ====== ====== ====== Ratio of earnings to fixed charges...................... 1.1x 1.0x 1.1x 1.2x 1.4x ===== ===== ===== ===== ====== Fixed charge coverage deficiency................... $(17.7) $(10.7) ====== ====== Pro Forma: Earnings are calculated as follows: Income (loss) before income taxes, minority interests, extraordinary item and cumulative effect of changes in accounting principles................ $ 1.3 $ 3.2 Add (deduct): Fixed charges as calculated below........ 71.1 94.4 ----- ----- $72.4 $97.6 ===== ===== Fixed charges are calculated as follows: Interest expense............. $67.8 $90.5 Amortization of deferred financing costs........... 2.9 3.7 Interest component of rental expense................... .4 .2 ----- ----- $71.1 $94.4 ===== ===== Ratio of earnings to fixed charges...................... 1.0x 1.0x ===== =====