EX-12 6 dex12.txt STATEMENT RE COMPUTATION OF RATIO OF EARNINGS Imperial Credit Industries, Inc. and Subsidiaries Exhibit 12 Earnings to Fixed Charges (Dollars in Thousands)
Earnings to Fixed Charges (Before Interest Expense on Deposits) Six months ended Year ended December 31, June 30, 2001 2000 1999 1998 1997 1996 ---------------- --------- --------- --------- --------- --------- Earnings: Income (Loss) from continuing operations before income taxes, minority interest and extraordinary item .................. $ (26,722) $(158,161) $ (7,550) $(104,653) $ 200,043 $ 157,884 Less: Undistributed earnings (loss) of less than 50% owned affiliates ............... (912) (479) 53 (15,974) (22,819) -- Add: Fixed Charges (B) ...................... 15,592 34,249 36,911 37,992 48,639 75,588 --------- --------- --------- --------- --------- --------- Total earnings (A) .......................... $ (12,042) $(124,391) $ 29,414 $ (82,635) $ 225,863 $ 233,472 ========= ========= ========= ========= ========= ========= Fixed Charges: Total interest expense ...................... $ 66,083 $ 140,213 $ 121,607 $ 123,106 $ 118,213 $ 135,036 Less: Interest expense on deposits .......... (51,191) (107,779) (86,582) (87,030) (71,014) (60,999) Interest portion of occupancy expense ....... 700 1,815 1,886 1,916 1,440 1,551 --------- --------- --------- --------- --------- --------- Fixed Charges (B) ........................... $ 15,592 $ 34,249 $ 36,911 $ 37,992 $ 48,639 $ 75,588 ========= ========= ========= ========= ========= ========= --------- --------- --------- --------- --------- --------- Ratio of earnings to fixed charges (before interest expense on deposits) (A)/(B) ................................. (0.77) (3.63) 0.80 (2.18) 4.64 3.09 ========= ========= ========= ========= ========= ========= Earnings to Fixed Charges (After Interest Expense on Deposits) Six months ended Year ended December 31, June 30, 2001 2000 1999 1998 1997 1996 ---------------- --------- --------- --------- --------- --------- Earnings: Income (Loss) from continuing operations before income taxes, minority interest and extraordinary item ................. $ (26,722) $(158,161) $ (7,550) $(104,653) $ 200,043 $ 157,884 Less: Undistributed earnings (loss) of less than 50% owned affiliates .............. (912) (479) 53 (15,974) (22,819) -- Add: Fixed Charges (B) ..................... 66,783 142,028 123,493 125,022 119,653 136,587 --------- --------- --------- --------- --------- --------- Total earnings (A) ......................... $ 39,149 $ (16,612) $ 115,996 $ 4,395 $ 296,877 $ 294,471 ========= ========= ========= ========= ========= ========= Fixed Charges: Total interest expense ..................... $ 66,083 $ 140,213 $ 121,607 $ 123,106 $ 118,213 $ 135,036 Interest portion of occupancy expense ...... 700 1,815 1,886 1,916 1,440 1,551 --------- --------- --------- --------- --------- --------- Fixed Charges (B) .......................... $ 66,783 $ 142,028 $ 123,493 $ 125,022 $ 119,653 $ 136,587 ========= ========= ========= ========= ========= ========= --------- --------- --------- --------- --------- --------- Ratio of earnings to fixed charges (after interest expense on deposits) (A)/(B) ................................ 0.59 (0.12) 0.94 0.04 2.48 2.16 ========= ========= ========= ========= ========= =========
Notes: For the purpose of calculating the earnings to fixed charges ratio (after interest expense on deposits) ratio: (i) total earnings have been calculated by adding fixed charges to income (loss) from continuing operations before income taxes, minority interest and extraordinary item, and by deducting therefrom the Company's share of the undistributed earnings (loss) in less-than-fifty-percent- owned affiliates; and (ii) fixed charges comprise total interest and the portion of rentals representative of the interest factor estimated to be 1/3 of occupancy expense. For the six months ended June 30, 2001, and for each of the years ended December 31, 2000, 1999 and 1998, earnings were insufficient to cover fixed charges by $27,634,000, $158,640,000, $7,497,000 and $120,627,000, respectively.