EX-12 4 w52415ex12.txt CONSOLIDATED COMPUTATION OF RATIO OF EARNINGS 1 EXHIBIT 12 ADVANTA CORP. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
THREE MONTHS ENDED SIX MONTHS ENDED ($ IN THOUSANDS) JUNE 30, JUNE 30, ---------------- -------- -------- 2001 2000 2001 2000 ---- ---- ---- ---- Income (loss) from continuing operations $ (3,173) $17,749 $(40,529) $23,039 Income tax benefit 0 3,310 16,880 0 -------- ------- -------- ------- Earnings (loss) before income tax benefit (A) (3,173) 14,439 (57,409) 23,039 Fixed charges: Interest 26,119 21,559 50,395 41,738 One-third of all rentals 536 467 805 896 Preferred stock dividend of subsidiary trust 2,248 2,248 4,495 4,495 -------- ------- -------- ------- Total fixed charges 28,903 24,274 55,695 47,129 -------- ------- -------- ------- Earnings (loss) before income tax benefit and fixed charges $ 25,730 $38,713 $ (1,714) $70,168 Ratio of earnings to fixed charges (B) N/M(C) 1.59x N/M(C) 1.49x
(A) Earnings before income taxes in the six months ended June 30, 2001 include $41.8 million of unusual charges. Unusual charges include severance, outplacement and other compensation costs associated with restructuring our corporate functions commensurate with the ongoing businesses as well as expenses associated with exited businesses and asset impairments. (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 and six months ending June 30, 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 $3,173 for the three months ended June 30, 2001 and $57,409 for the six months ended June 30, 2001. 41