Attached files

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10-Q - 10-Q - NCO Group, Inc.a10-12930_110q.htm
EX-32.1 - EX-32.1 - NCO Group, Inc.a10-12930_1ex32d1.htm
EX-31.2 - EX-31.2 - NCO Group, Inc.a10-12930_1ex31d2.htm
EX-32.2 - EX-32.2 - NCO Group, Inc.a10-12930_1ex32d2.htm
EX-31.1 - EX-31.1 - NCO Group, Inc.a10-12930_1ex31d1.htm

Exhibit 12

 

NCO Group, Inc.

Ratio of Earnings to Fixed Charges

(in thousands, except for ratios)

 

 

 

For the Three Months Ended

 

For the Six Months Ended

 

 

 

June 30,

 

June 30,

 

 

 

2010(1)(2)

 

2009(1)(3)

 

2010(1)(2)

 

2009(1)(3)

 

Earnings:

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

Loss before income taxes and noncontrolling interest

 

$

(23,454

)

$

(8,115

)

$

(34,752

)

$

(11,940

)

Fixed charges

 

27,798

 

32,305

 

57,338

 

60,992

 

Amortization of capitalized interest

 

 

3

 

 

6

 

 

 

4,344

 

24,193

 

22,586

 

49,058

 

Subtract:

 

 

 

 

 

 

 

 

 

Distributions to noncontrolling interest holders

 

1,472

 

1,970

 

2,736

 

4,287

 

 

 

1,472

 

1,970

 

2,736

 

4,287

 

Earnings

 

$

2,872

 

$

22,223

 

$

19,850

 

$

44,771

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

Interest expense

 

$

22,156

 

$

26,674

 

$

45,757

 

$

49,784

 

Portion of rentals deemed to be interest

 

5,642

 

5,631

 

11,581

 

11,208

 

 

 

$

27,798

 

$

32,305

 

$

57,338

 

$

60,992

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

0.1

x

0.7

x

0.3

x

0.7

x

 


(1)

For the three and six months ended June 30, 2010 and 2009, the Company’s ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $24.9 million and $10.1 million less than fixed charges for the three months ended June 30, 2010 and 2009, respectively, and $37.5 million and $16.2 million less than fixed charges for the six months ended June 30, 2010 and 2009, respectively.

 

 

(2)

Loss before income taxes and noncontrolling interest includes restructuring charges of $4.9 million and $6.4 million for the three and six months ended June 30, 2010.

 

 

(3)

Loss before income taxes and noncontrolling interest includes restructuring charges of $1.3 million and $1.8 million for the three and six months ended June 30, 2009.