EX-12 2 ex12.txt CONSOL. COMPUT. OF RATIO OF EARNGS.TO FIXED CHARGS 1 EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (A) (DOLLARS IN THOUSANDS)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ---------------------------------------------------------------------------------------------------------------------------------- 2000 1999 2000 1999 ---------------------------------------------------------------------------------------------------------------------------------- Net earnings (loss) $(192,695) $ 12,312 $(175,626) $ 19,085 Federal and state income tax expense (benefit) (10,685) 8,115 0 12,308 Earnings (loss) before income tax expense (benefit) (203,380) 20,427 (175,626) 31,393 Fixed charges: Interest 51,730 43,317 99,485 86,594 One-third of all rentals 766 814 1,521 1,593 Preferred stock dividend of subsidiary trust 2,248 2,248 4,495 4,495 Total fixed charges 54,744 46,379 105,501 92,682 Earnings (loss) before income taxes (benefits) and fixed charges (148,636) 66,806 (70,125) 124,075 Ratio of earnings to fixed charges N/M (B) 1.44 x N/M (B) 1.34 x
(A) For purposes of computing these ratios, "earnings" represent income before income taxes plus fixed charges. "Fixed charges" consist of interest expense, one-third (the proportion deemed representative of the interest factor) of rental expense on operating leases, and preferred stock dividends of subsidiary trust. (B) The ratio calculated based on the current period's loss is negative and therefore not meaningful. In order to achieve a ratio of 1.00, earnings before income taxes and fixed charges would need to increase by $203,380 for the three month period ended June 30, 2000, and $175,626 for the six month period ended June 30, 2000. 46