EX-12 2 ex12.htm EXHIBIT 12 ex12.htm

 Exhibit 12

 

RATIO OF EARNINGS TO FIXED CHARGES

 

For purposes of computing the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred stock dividends, earnings consist of earnings from continuing operations before income taxes and income or loss from equity investees, plus fixed charges and distributed income of equity investees, less interest capitalized. Combined fixed charges and preferred stock dividends consist of fixed charges and preferred stock dividends declared.

 

           

Fiscal Year Ended

 

(Dollars In thousands)

 

October 31,

2015

   

October 31,

2014

   

October 31,

2013

   

October 31,

2012

   

October 31,

2011

 

(Loss) income before income taxes

    $(21,765 )     $20,180       $21,935       $(101,248

)

    $(291,588 )

Add:

                                       

Interest expense, homebuilding (a)

    151,448       141,344       143,574       152,433       171,845  

Interest expense, financial services

    2,143       1,835       3,008       2,514       1,889  

Interest pertaining to rent expense (b)

    5,548       5,538       5,199       5,663       6,612  

Distribution of earnings from unconsolidated joint ventures, net of equity in income (loss)

    4,269       (1,853 )     (9,700 )     (3,611 )     10,541  

Amortization

    5,460       10,320       7,843       6,862       6,047  

Total earnings (loss)

    $147,103       $177,364       $171,859       $62,613       $(94,654 )

Fixed Charges:

                                       

Interest incurred, homebuilding

    $166,188       $145,409       $132,611       $147,048       $156,998  

Interest incurred, financial services

    2,143       1,835       3,008       2,434       1,959  

Interest pertaining to rent expense

    5,548       5,538       5,199       5,663       6,612  

Amortization

    5,460       10,320       7,843       6,862       6,047  

Total fixed charges

    $179,339       $163,102       $148,661       $162,007       $171,616  

Ratio of earnings to fixed charges

 

(c)

      1.1       1.2    

(c)

   

(c)

 

 

 

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

 

           

Fiscal Year Ended

 

(Dollars In thousands)

 

October 31,

2015

   

October 31,

2014

   

October 31,

2013

   

October 31,

2012

   

October 31,

2011

 

Total earnings (loss) – above

    $147,103       $177,364       $171,859       $62,613       $(94,654 )

Total fixed charges – above

    $179,339       $163,102       $148,661       $162,007       $171,616  

Preferred stock dividends (adjusted to pretax dollars)

    -       -       -       -       -  

Total combined fixed charges and preferred stock dividends

    $179,339       $163,102       $148,661       $162,007       $171,616  

Ratio of earnings to combined fixed charges and preferred stock dividends

 

(d)

      1.1       1.2    

(d)

   

(d)

 

 

(a)

Includes the amortization and expensing of debt expenses that were not capitalized during the period.

(b)

Management has determined the interest component of rent expense to be 33%.

(c)

Earnings for the years ended October 31, 2015, 2012 and 2011 were insufficient to cover fixed charges for such period by $32.2 million, $105.1 million and $272.9 million, respectively.  

(d)

Earnings for the years ended October 31, 2015, 2012 and 2011 were insufficient to cover fixed charges and preferred stock dividends for such period by $32.2 million, $105.1 million and $272.9 million, respectively. Due to restrictions in our debt instruments, we are currently prohibited from paying dividends on our preferred stock and did not make any dividend payments in fiscal 2015, 2014, 2013, 2012 and 2011.