EX-12 2 dex12.htm EXHIBIT 12 EXHIBIT 12

Exhibit 12

 

FRIEDMAN, BILLINGS, RAMSEY GROUP, INC.

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(dollars in thousands)

 

     Six Months
Ended
June 30,
2004
    Years Ended December 31,
  
        2003
    2002
    2001
     2000
    1999
  

Pre-tax income (loss) from continuing operations adjusted to exclude income or loss from equity investees

    $ 170,120    $ 225,165    $ 42,229    $ (18,457 )   $ 1,000    $ (16,515 )
    
  
  
  
 
  

Distributed income of equity investees

      1,125      553      14,089      10,747       12,036      2,590  
    
  
  
  
 
  

Fixed charges:

                                             

Interest expense and amortization of debt discount and premium on all indebtedness

      66,923      68,995      2,073      1,083       1,665      1,323  

Rentals: Equipment and office rent expense— 33.33%

      1,074      1,719      1,692      1,657       1,305      1,135  
    
  
  
  
 
  

Total fixed charges

    $ 67,997    $ 70,714    $ 3,765    $ 2,740     $ 2,970    $ 2,458  
    
  
  
  
 
  

Pre-tax income (loss) from continuing operations before adjustments for income or loss from equity investees plus fixed charges and distributed income of equity investees

    $ 239,242    $ 296,432    $ 60,083    $ (4,970 )   $ 16,006    $ (11,467 )
    
  
  
  
 
  

Ratio of earnings to fixed charges

      3.5      4.2      16.0      (A )     5.4      (A )
(A) Due to the company’s losses in 2001 and 1999, the ratio coverage in these years was less than 1:1. The company would have had to generate additional earnings of $7,710 and $13,925, respectively, to achieve coverage of 1:1 in these years.