EX-12.1 8 ratioofearnings.htm EXHIBIT 12.1 STATEMENT OF COMPUTION OF RATIO OF EARNINGS TO FIXED CHARGES ratioofearnings.htm
Exhibit 12.1
M/I Homes, Inc.
Computation of Ratio of Earnings to Fix Charges

RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in Thousands)
Six Months Ended June 30, 2008
  
       2007
  
       2006
  
       2005
  
       2004
  
       2003
  
                         
Earnings:
                        
(Loss) income from continuing operations before income taxes
$
 (80,187 )
$
 (150,876 )
$
 45,306  
$
 157,885  
$
 143,659  
$
 131,261  
                                     
Add:
                                    
   Loss (income) of unconsolidated
   joint ventures
   (276 )   892     60     (5 )   112     96  
   Fixed charges from below
   13,510     38,394     44,986     26,973     17,668     15,064  
   Interest amortized to cost of sales
   6,312     18,397     12,241     8,263     5,221     4,806  
                                     
Less:
                                    
   Interest capitalized
   (5,223 )   (18,118 )   (24,946 )   (9,851 )   (6,416 )   (7,425 )
                                     
Total (loss) earnings (a)
$
 (65,864 )
$
 (111,311 )
$
 77,647  
$
 183,265  
$
 160,244  
$
 143,802  
                                     
Fixed Charges:
                                    
   Interest incurred (a)
$
 9,925  
$
 31,391  
$
 39,071  
$
 22,296  
$
 14,758  
$
 12,256  
   Amortization of debt costs
   1,843     2,070     1,682     1,110     -     -  
   Rental expense interest factor
   1,742     4,933     4,233     3,567     2,910     2,808  
                                     
Total Fixed Charges
$
 13,510  
$
 38,394  
$
 44,986  
$
 26,973  
$
 17,668  
$
 15,064  
                                     
Ratio of earnings to fixed charges
   -     -     1.7     6.8     9.1     9.5  
                                     
Coverage deficiency
$
 79,374  
$
 149,705  
$
 -  
$
 -  
$
 -  
$
 -  


RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(Dollars in Thousands)
Six Months Ended June 30, 2008
  
       2007
  
    2006
  
       2005
  
       2004
  
       2003
  
                         
Total (loss) earnings – from above (a)
$
 (65,864 )
$
 (111,311 )
$
 77,647  
$
 183,265  
$
 160,244  
$
 143,802  
                                     
Total fixed charges – from above
   13,510     38,394     44,986     26,973     17,668     15,064  
Preferred stock dividends (adjusted to pretax dollars)
   7,738     11,795     -     -     -     -  
                                     
Combined fixed charges and preferred stock dividends
$
 21,248  
$
 50,189  
$
 44,986  
$
 26,973  
$
 17,668  
$
 15,064  
                                     
Ratio of earnings to combined fixed charges and preferred stock dividends
   -     -     1.7     6.8     9.1     9.5  
                                     
Coverage deficiency
$
 87,112  
$
 161,500  
$
 -  
$
 -  
$
 -  
$
 -  

(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 consist of 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 consist of interest incurred, amortization of debt costs and that portion of operating lease rental expense (33%) deemed to be representative of interest.  The ratio of earnings to combined fixed charges and preferred stock dividends is determined by dividing earnings by combined fixed charges and preferred stock dividends.  Preferred stock dividends represent dividends on our 9.75% Series A Preferred Shares multiplied by the ratio which pre-tax income from continuing operations bears to income from continuing operations.