EX-12.1 3 dex121.htm STATEMENT OF COMPUTATION OF EARNINGS TO FIXED CHARGES Statement of Computation of Earnings to Fixed Charges

Exhibit 12.1

M/I Homes, Inc.

Computation of Ratio of Earnings to Fixed Charges

 

 

     Fiscal Year Ended December 31,  

(Dollars in Thousands)

    2010     2009     2008     2007     2006  

Earnings:

           

(Loss) income from continuing operations before income taxes

    $ (27,404 )    $ (92,989 )    $ (215,124 )    $ (150,876 )    $ 45,306   

Add:

           

Loss (income) of unconsolidated joint ventures

      (276 )      1        (158 )      892        60   

Fixed charges from below

      21,026        20,186        24,023        38,394        44,986   

Interest amortized to cost of sales

      13,339        11,720        12,969        18,397        12,241   

Less:

           

Interest capitalized

      (9,744 )      (9,552 )      (9,593 )      (18,118 )      (24,946 ) 
                                        

Total (loss) earnings (a)

    $ (3,059 )    $ (70,634 )    $ (187,883 )    $ (111,311 )    $ 77,647   
                                        

Fixed charges:

           

Interest incurred (a)

    $ 16,286      $ 14,838      $ 18,174      $ 31,391      $ 39,071   

Amortization of debt costs

      2,873        3,181        2,616        2,070        1,682   

Rental expense interest factor

      1,867        2,167        3,233        4,933        4,233   
                                        

Total fixed charges

    $ 21,026      $ 20,186      $ 24,023      $ 38,394      $ 44,986   
                                        

Ratio of earnings to fixed charges

      —          —          —          —          1.7   
                                        

Coverage deficiency

    $ 24,085      $ 90,820      $ 211,906      $ 149,705        —     
                                        

 

(a) The Company records interest accrued on certain tax positions in income tax (benefit) provision. Interest included in “fixed charges” is only interest on third party indebtedness, and interest expense accrued on uncertain tax positions is excluded from the calculation of “earnings.”

The ratio of earnings to fixed charges is determined by dividing earnings by fixed charges. Earnings consists of (loss) income from continuing operations before income taxes, loss (income) of unconsolidated joint ventures, fixed charges and interest amortized to cost of sales, excluding capitalized interest. Fixed charges consists of interest incurred, amortization of debt costs and that portion of operating lease rental expense (33%) deemed to be representative of interest.