1 EXHIBIT 12 TYLER CORPORATION RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS(1) (in thousands) Three Months Nine Months Ended Ended September 30, September 30, 1996 1996 ------------- ------------- Loss as adjusted: Loss from operations before income tax benefit $(3,536) $(6,201) Interest expense 75 178 Rental expense interest factor 256 766 ------- ------- Loss as adjusted $(3,205) $(5,257) ======= ======= Fixed charges: Interest expense $ 75 $ 178 Rental expense interest factor 256 766 ------- ------- $ 331 $ 944 ======= ======= Ratio of earnings to fixed charges --(2) --(2) (1) For purposes of computing the ratio of earnings to fixed charges and preferred stock dividends, the loss, as adjusted, consists of the loss from operations before income tax benefit, plus fixed charges. Fixed charges consist of interest on all indebtedness and the portion of rental expense that the Company believes to be representative of interest. For the periods indicated, no preferred stock of the Company was outstanding. (2) The loss from operations before income tax benefit was inadequate to cover fixed charges for the three and nine months ended September 30, 1996, by $3,536,000 and $6,201,000, respectively.