Exhibit 12
Continental Homes Holding Corp.
Computation of Ratio of Earnings to Fixed
Charges
(Dollars in thousands)
SIX MONTHS ENDED
YEAR ENDED
MAY 31, NOVEMBER 30,
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1991 1992 1993
1994 1995 1994 1995
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Fixed Charges:
Rent expense............................ $ 197 $ 178 $
165 $ 305 $ 363 $ 182 $ 182
Interest (expensed or capitalized) -
homebuilding........................... 8,889 8,662
11,896 13,378 19,528 8,665 10,762
Interest (expensed or capitalized) -
joint ventures(1)...................... 2,868 885
144 -- -- -- --
Interest - mortgage banking.............. 2,364 1,557
1,343 2,707 2,360 1,048 1,368
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Total fixed charges................... $14,318 $11,282
$13,548 $16,390 $22,251 $ 9,895 $12,312
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Earnings:
Income before taxes and extraordinary
credits............................... $ 477 $ 2,155
$12,083 $23,137 $25,465 $13,688 $18,692
Fixed charges........................... 14,318 11,282
13,548 16,390 22,251 9,895 12,312
Interest capitalized(1)(2).............. (3,486) 2,783
202 (920) (3,421) (1,405) (507)
Total earnings before fixed charg....... $11,309 $16,220
$25,833 $38,607 $44,295 $22,178 $30,497
Ratio of earnings to fixed charge......... (3) 1.44x
1.91x 2.36x 1.99x 2.24x 2.48x
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<FN>
(1) Reflects the Company's proportionate share of the joint
venture.
(2) Since interest capitalized is charged to interest expense when
the related
assets are sold, this amount represents the change in
capitalized interest
from the previous period end.
(3) Fiscal 1991 includes a pre-tax writedown of $5,000,000. After
giving effect
to such writedown, earnings for the fiscal year ended May 31,
1991 were
inadequate to cover fixed charges and resulted in a coverage
deficiency of
$3,009,000.