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)
Three Months | Years Ended December 31, | |||||||||||||||||||||||
Ended March 31, 2010 |
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2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
Earnings Available for Fixed Charges: |
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Income (loss) before income taxes (a) |
$ | 12,553 | $ | (567,770 | ) | $ | 41,809 | $ | 91,956 | $ | 101,361 | $ | 97,013 | |||||||||||
Add: |
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Interest Expense (a) |
$ | 4,169 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | $ | 4,110 | ||||||||||||
Amortization of debt-related expenses |
410 | 2,380 | 1,932 | 1,723 | 559 | 920 | ||||||||||||||||||
Appropriate portion of rents (b) |
2,143 | 9,297 | 7,306 | 5,400 | 4,280 | 3,640 | ||||||||||||||||||
6,722 | 29,864 | 29,070 | 23,710 | 11,130 | 8,670 | |||||||||||||||||||
Earnings available for fixed charges |
$ | 19,275 | $ | (537,906 | ) | $ | 70,879 | $ | 115,666 | $ | 112,491 | $ | 105,683 | |||||||||||
Fixed Charges: |
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Interest Expense (a) |
$ | 4,169 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | $ | 4,110 | ||||||||||||
Amortization of debt-related expenses |
410 | 2,380 | 1,932 | 1,723 | 559 | 920 | ||||||||||||||||||
Appropriate portion of rents (b) |
2,143 | 9,297 | 7,306 | 5,400 | 4,280 | 3,640 | ||||||||||||||||||
Total Fixed Charges |
$ | 6,722 | $ | 29,864 | $ | 29,070 | $ | 23,710 | $ | 11,130 | $ | 8,670 | ||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (c) |
2.87 | x | NM | 2.44 | x | 4.88 | x | 10.11 | x | 12.19 | x |
NM indicates amount is not meaningful
(a) | 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 March 31, 2010, the Company had accrued interest related to unrecognized tax benefits of $0.4 million. |
(b) | Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense. |
(c) | Earnings for the year ended December 31, 2009 are inadequate to cover fixed charges and earnings available for fixed charges must be approximately $29.9 million in order to attain a ratio of earnings to fixed charges and preferred dividends of one-to-one. |