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)

 

     Three months
Ended
March 31,
2006		    Years Ended December 31,  
      2005     2004    2003    2002    2001  

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

    $ 23,060    $ (144,289 )   $ 399,536    $ 225,165    $ 42,229    $ (18,457 )
                                            

Distributed income of equity investees

      2,428      32,334       2,141      553      14,089      10,747  
                                            

Fixed charges:

                 

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

      153,483      546,313       164,156      68,995      2,073      1,083  

Rentals: Equipment and office rent expense—33.33%

      1,677      6,057       2,798      1,719      1,692      1,657  
                                            

Total fixed charges

    $ 155,160    $ 552,370     $ 166,954    $ 70,714    $ 3,765    $ 2,740  
                                            

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

    $ 180,648    $ 440,415     $ 568,631    $ 296,432    $ 60,083    $ (4,970 )
                                            

Ratio of earnings to fixed charges

      1.2      (A )     3.4      4.2      16.0      (A )
(A) Due to the company’s losses in 2005 and 2001, the ratio coverage for these years was less than 1:1. The company would have had to generate additional earnings of $111,955 and $7,710, respectively, to achieve coverage of 1:1 in these years.