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,
2005
    Years Ended December 31,
      2004
    2003
    2002
    2001
     2000

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

    $ 96,227    $ 399,536    $ 225,165    $ 42,229    $ (18,457 )   $ 1,000
    
  
  
  
  
 

Distributed income of equity investees

      13,073      2,141      553      14,089      10,747       12,036
    
  
  
  
  
 

Fixed charges:

                                           

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

      178,547      164,156      68,995      2,073      1,083       1,665

Rentals: Equipment and office rent expense—33.33%

      2,691      2,798      1,719      1,692      1,657       1,305
    
  
  
  
  
 

Total fixed charges

    $ 181,238    $ 166,954    $ 70,714    $ 3,765    $ 2,740     $ 2,970
    
  
  
  
  
 

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

    $ 290,538    $ 568,631    $ 296,432    $ 60,083    $ (4,970 )   $ 16,006
    
  
  
  
  
 

Ratio of earnings to fixed charges

      1.6      3.4      4.2      16.0      (A )     5.4
(A) Due to the company’s losses in 2001, the ratio coverage for that year was less than 1:1. The company would have had to generate additional earnings of $7,710 to achieve coverage of 1:1 in 2001.