EX-12 3 w49279ex12.txt RATIO OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THREE MONTHS ENDED ($ IN THOUSANDS) MARCH 31, ---------------- --------- 2001 2000 ---- ---- Income (loss) from continuing operations $(37,356) $ 5,290 Federal and state income tax expense (benefit) (16,880) 3,310 -------- -------- Earnings (loss) before income tax expense (benefit) (54,236)(A) 8,600 Fixed charges: Interest 24,276 20,179 One-third of all rentals 269 429 Preferred stock dividend of subsidiary trust 2,248 2,248 -------- -------- Total fixed charges 26,793 22,856 -------- -------- Earnings (loss) before income tax expense (benefit) and fixed charges $(27,443) $ 31,456 Ratio of earnings to fixed charges (B) N/M(C) 1.38x
(A) Earnings (loss) before income taxes in 2001 included $40.8 million of unusual charges associated with restructuring our corporate functions to a size commensurate with our ongoing businesses and other employee costs. (B) For purposes of computing these ratios, "earnings" represent income from continuing operations before income taxes plus fixed charges. "Fixed charges" consist of interest expense, one-third (the portion deemed representative of the interest factor) of rental expense on operating leases, and preferred stock dividends of subsidiary trust. (C) The ratio calculated in the three months ending March 31, 2001 is less than 1.00 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 $54,236 for the period.