Attached files
Exhibit
12.1
NATIONAL
FINANCIAL PARTNERS CORP.
COMPUTATION
OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND
PREFERRED DIVIDENDS
(Amounts
in thousands of dollars, except ratios)
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Nine
Months Ended
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Years
Ended December 31,
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September
30, 2009
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2008
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2007
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2006
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2005
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2004
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Earnings Available
for Fixed Charges:
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(Loss) income before
income taxes (a)
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$ | (567,467 | ) | $ | 41,809 | $ | 91,956 | $ | 101,361 | $ | 97,013 | $ | 72,107 | |||||||||||
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Add:
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Interest Expense
(a)
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$ | 13,960 | $ | 19,832 | $ | 16,587 | $ | 6,291 | $ | 4,110 | $ | 1,113 | ||||||||||||
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Amortization of
debt-related expenses
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1,757 | 1,932 | 1,723 | 559 | 920 | 487 | ||||||||||||||||||
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Appropriate portion
of rents (b)
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5,588 | 7,306 | 5,400 | 4,280 | 3,640 | 2,920 | ||||||||||||||||||
| 21,305 | 29,070 | 23,710 | 11,130 | 8,670 | 4,520 | |||||||||||||||||||
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Earnings available
for fixed charges
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$ | (546,162 | ) | $ | 70,879 | $ | 115,666 | $ | 112,491 | $ | 105,683 | $ | 76,627 | |||||||||||
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Fixed
Charges:
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Interest Expense
(a)
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$ | 13,960 | $ | 19,832 | $ | 16,587 | $ | 6,291 | $ | 4,110 | $ | 1,113 | ||||||||||||
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Amortization of
debt-related expenses
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1,757 | 1,932 | 1,723 | 559 | 920 | 487 | ||||||||||||||||||
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Appropriate portion
of rents (b)
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5,588 | 7,306 | 5,400 | 4,280 | 3,640 | 2,920 | ||||||||||||||||||
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Total Fixed
Charges
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$ | 21,305 | $ | 29,070 | $ | 23,710 | $ | 11,130 | $ | 8,670 | $ | 4,520 | ||||||||||||
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Ratio of Earnings to
Combined Fixed Charges and Preferred Dividends (c)(d)
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NM
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2.44 | x | 4.88 | x | 10.11 | x | 12.19 | x | 16.95 | x | |||||||||||||
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NM indicates amount
is not meaningful
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(a)
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Interest expense and
Income before income taxes exclude interest expense accrued on uncertain
tax positions. The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as a component of income tax expense.
As of September 30, 2009, the Company had accrued interest related to
unrecognized tax benefits of $0.9
million.
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(b)
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Portion of rental
expenses which is deemed representative of an interest factor, which is
approximately twenty percent of total rental
expense.
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(c)
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Dividends paid on
preference securities issued would be included as fixed charges and
therefore impact the ratio of earnings to fixed charges. As of the date of
this report, the Company has not issued any shares of the Company’s
preferred stock.
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(d)
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Earnings for the
nine months ended September 30, 2009 are inadequate to cover fixed charges
and earnings available for fixed charges must be approximately $21.3
million in order to attain a ratio of earnings to combined fixed charges
and preferred dividends of
one-to-one.
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