EXHIBIT 12
Continential Homes Holding Corp.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
Six Months ended
Years ended May 31, November 30,
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1992 1993 1994 1995 1996 1995 1996
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Fixed Charges
Rent expense..................... $ 178 $ 165 $ 305 $ 363 $ 480 $ 240 $ 240
Interest (expensed or capital-
ized)--homebuilding............ 8,662 11,896 13,378 19,528 22,422 10,762 12,208
Interest (expensed or capital-
ized)--joint ventures(1)....... 885 144 0 0 0 0 --
Interest--mortgage banking....... 1,557 1,343 2,707 2,360 1,785 1,368 260
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Total fixed charges.......... $11,282 $13,548 $16,390 $22,251 $24,687 $12,370 $12,708
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Earnings:
Income before taxes and extraor-
dinary credits.................. $ 2,155 $12,083 $23,137 $25,465 $45,382 $18,692 $28,548
Fixed charges..................... 11,282 13,548 16,390 22,251 24,687 12,370 12,708
Interest capitalized(1)(2)........ 2,783 202 (920) (3,421) (207) (507) (508)
Total earnings before fixed ----------------------------------------------------------------------------
charges....................... $16,220 $25,833 $38,607 $44,295 $69,862 $30,555 $40,748
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Ratio of earnings to fixed charges.. 1.44x 1.91x 2.36x 1.99x 2.83x 2.47x 3.21x
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(1) Reflects the Company's proportionate share of the joint venture.
(2) Since interest capitalized is charged to interese expense when the related
assets are sold, this amount represents the change in capitalized interest
from the previous period end.