EX-12 2 w42469ex12.txt CONSOLIDATED COMPUTATION OF EARNINGS 1 EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (A) (DOLLARS IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, --------------------------------------------------------------------------------------------------- 2000 1999 2000 1999 --------------------------------------------------------------------------------------------------- Net earnings (loss) $ 15,744 $ 14,178 $(159,882) $ 33,263 Federal and state income tax expense 0 9,256 0 21,564 Earnings (loss) before income tax expense (benefit) 15,744 23,434 (159,882) 54,827 Fixed charges: Interest 52,005 41,935 151,490 128,529 One-third of all rentals 712 771 2,233 2,364 Preferred stock dividend of subsidiary trust 2,248 2,248 6,743 6,743 Total fixed charges 54,965 44,954 160,466 137,636 Earnings (loss) before income taxes (benefits) and fixed charges 70,709 68,388 584 192,463 Ratio of earnings to fixed charges 1.29x 1.52x N/M (B) 1.40x
(A) For purposes of computing these ratios, "earnings" represent income before income taxes plus fixed charges. "Fixed charges" consist of interest expense, one-third (the proportion deemed representative of the interest factor) of rental expense on operating leases, and preferred stock dividends of subsidiary trust. (B) The ratio calculated based on the loss in the nine months ended September 30, 2000 is zero and therefore not meaningful. In order to achieve a ratio of 1.00, earnings before income taxes and fixed charges would need to increase by $159,882 for the nine months ended September 30, 2000.