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STATEMENT RE COMPUTATION OF RATIOS
EXHIBIT 12.01
METROPOLITAN MORTGAGE & SECURITIES CO., INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
The ratio of adjusted earnings to fixed charges and preferred stock
dividends was computed using the following tabulations to compute adjusted
earnings and the defined fixed charges and preferred stock dividends.
<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30
----------------------------------------------------
2000 1999 1998 1997 1996
-------- -------- -------- -------- --------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
Net income.................................... $(7,601) $ 16,275 $10,327 $ 9,668 $ 8,038
Add:
Interest.................................... 29,134 22,388 19,663 19,375 18,788
Taxes (benefit) on income................... (4,093) (12,577) 5,475 5,073 4,235
------- -------- ------- ------- -------
Adjusted earnings............................. $17,440 $ 26,086 $35,465 $34,116 $31,061
======= ======== ======= ======= =======
Preferred stock dividend requirements......... $ 4,553 $ 3,642 $ 3,732 $ 4,113 $ 3,868
Ratio factor of income after provision for
income taxes to income before provision for
income taxes................................ 100% 100% 66% 66% 66%
Preferred stock dividend factor on pretax
basis....................................... 4,553 3,642 5,687 6,244 5,880
Fixed charges
Interest.................................... 29,134 22,388 19,663 19,375 18,788
Capitalized interest........................ 1,145 936 611 521 2,468
------- -------- ------- ------- -------
Fixed charges and preferred stock dividends... $34,832 $ 26,966 $25,961 $26,140 $27,136
======= ======== ======= ======= =======
Ratio of adjusted earnings to fixed charges
and preferred stock dividends............... * * 1.37 1.31 1.14
</TABLE>
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* Earnings were insufficient to meet fixed charges and preferred stock
dividends by approximately $17.4 million and $0.8 million for the years
ended September 30, 2000 and 1999, respectively.
