EX-12.1 5 dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

 

LandAmerica Financial Group, Inc.

Computation of Ratio of Earnings to Fixed Charges

(Dollars in Thousands)

 

    

Nine Months
Ended
September 30,

2003

     Year Ended December 31
       2002
     2001
     2000
     1999
    1998

Earnings:

                                  

Pre-Tax Earnings

    258,771     229,772     94,165     (128,137 )   84,870    146,302

Equity in Unconsolided Subsidiaries

    (13,915 )   (10,131 )   (3,211 )   (609 )   —      —  

Minority Interest

    425     23     18     —       —      —  

Fixed Charges

    22,351     28,145     28,502     28,361     25,440    23,973

Amortization of Capitalized Interest

    —       —       —       —       —      —  

Distributed Income of Equity Investees

    7,575     6,979     3,536     1,521     —      —  

Interest Capitalized

    —       —       —       —       —      —  

Preferred Stock Dividends

    —       —       —       —       —      —  

Minority Interest

    (425 )   (23 )   (18 )   —       —      —  
    
 
 
 
 
  

Earnings

    274,782     254,765     122,992     (98,864 )   110,310    170,275
    
 
 
 
 
  

Fixed Charges:

                                  

Interest Cost

    9,131     12,379     12,766     13,614     12,068    10,659

Amortization of Bond Costs (1)

    —       —       —       —       —      —  

Interest in Rental Expense (2)

    13,220     15,766     15,736     14,747     13,372    13,314

Preferred Dividend Requirements

    —       —       —       —       —      —  
    
 
 
 
 
  

Total Fixed Charges

    22,351     28,145     28,502     28,361     25,440    23,973
    
 
 
 
 
  

Ratio of Earnings to Fixed Charges

    12.29     9.05     4.32     —   (3)   4.34    7.10
    
 
 
 
 
  

 

(1)— The preferred stock costs were associated with a merger and were capitalized and amortized.
(2)— Assumes a 25% interest rate on rental payments.
(3)— In 2000, our earnings were not sufficient to cover our fixed charges due to non-cash charges of $177.8 million associated with a change in our method of assessing the recoverability of goodwill. The amount of the earnings deficiency was $70.5 million.