EXHIBIT 12.1
THE RYLAND GROUP, INC.
STATEMENTS RE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND
THE YEARS ENDED DECEMBER 31, 2000, 1999, 1998, 1997, AND 1996
(AMOUNTS IN THOUSANDS, EXCEPT RATIO)
NINE MONTHS
ENDED
1996 1997 1998 1999 2000 9/30/2001
--------- --------- --------- --------- --------- ------------
Consolidated pretax income before
extraordinary item $ 26,397 $ 36,470 $ 75,158 $ 109,336 $ 134,840 $ 151,543
Share of distributed income of 50%
-or-less-owned affiliates net
of equity pickup 539 1,334 2,602 (263) (163) (5)
Amortization of capitalized interest 17,035 21,581 20,645 19,027 27,581 22,154
Interest 90,529 74,950 63,410 52,764 62,610 42,454
Less interest capitalized during
the period (16,975) (17,636) (18,601) (24,397) (34,105) (23,318)
Net amortization of debt discount
and premium and issuance expense 243 84 36 33 -- --
Interest portion of rental expense 3,394 3,541 4,709 4,522 6,065 5,336
--------- --------- --------- --------- --------- ---------
EARNINGS $ 121,162 $ 120,324 $ 147,959 $ 161,022 $ 196,828 $ 198,164
Interest $ 90,529 $ 74,950 $ 63,410 $ 52,764 $ 62,610 $ 42,454
Net amortization of debt discount
and premium and issuance expense 243 84 36 33 -- --
Interest portion of rental expense 3,394 3,541 4,709 4,522 6,065 5,336
--------- --------- --------- --------- --------- ---------
FIXED CHARGES $ 94,166 $ 78,575 $ 68,155 $ 57,319 $ 68,675 $ 47,790
Ratio of Earnings to Fixed Charges 1.29 1.53 2.17 2.81 2.87 4.15
25