EX-12 4 w89158exv12.txt RATIO OF EARNINGS TO FIXED CHARGES . . . Exhibit 12 ADVANTA CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THREE MONTHS ENDED SIX MONTHS ENDED ($ IN THOUSANDS) JUNE 30, JUNE 30, --------------------------------------------------------------------------------------------------------------------- 2003 2002 2003 2002 --------------------------------------------------------------------------------------------------------------------- Income from continuing operations $ 6,281 $ 7,124 $12,186 $11,358 Income tax expense 3,932 4,459 7,628 7,110 --------------------------------------------------------------------------------------------------------------------- Earnings before income taxes 10,213 11,583 19,814 18,468 Fixed charges: Interest 13,111 12,369 24,382 25,479 One-third of all rentals 664 437 1,304 923 Preferred stock dividend of subsidiary trust 2,248 2,248 4,495 4,495 --------------------------------------------------------------------------------------------------------------------- Total fixed charges 16,023 15,054 30,181 30,897 --------------------------------------------------------------------------------------------------------------------- Earnings before income taxes and fixed charges $26,236 $26,637 $49,995 $49,365 Ratio of earnings to fixed charges(1) 1.64 x 1.77 x 1.66 x 1.60 x
(1) For purposes of computing these ratios, "earnings" represent income before income taxes plus fixed charges. "Fixed charges" consist of interest expense, one-third (the portion deemed representative of the interest factor) of rental expense on operating leases, and preferred stock dividends of subsidiary trust.